Ortigas and Co. v.

CA GR 126102, 12/4/00
FACTS:
Ortigas & Co. sold to Emilia Hermoso a parcel of land located in
Greenhills Subdivision, San Juan with several restrictions in the contract
of sale that said lot be used exclusively for residential purposes, among
others, until December 31, 2025. Later, a zoning ordinance was issued
by MMC (now MMDA) reclassifying the area as commercial. Private
respondent (Ismael Mathay III) leased the subject lot from Hermoso and
built a single storey building for Greenhills Autohaus, Inc., a car sales
company. Ortigas & Co. filed a petition a complaint which sought the
demolition of the constructed car sales company to against Hermoso as
it violated the terms and conditions of the Deed of Sale. Trial court ruled
in favor of Ortigas & Co. Mathay raised the issue to the Court of
Appeals from which he sought favorable ruling. Hence, the instant
petition.
ISSUE:
Whether or not the zoning ordinance may impair contracts entered prior
to its effectivity.
HELD:
Yes. The zoning ordinance, as a valid exercise of police power may be
given effect over any standing contract. Hence, petition is denied.