G.R. No.

174154              October 17, 2008 Kindly send your inspector to

determine by actual ocular
JESUS CUENCO, petitioner,  inspection if the restoration work is
vs. to your satisfaction.
TALISAY TOURIST SPORTS COMPLEX,
INCORPORATED AND MATIAS B. AZNAR The first letter was not answered, then he sent
III, respondents. another letter but still no answer, then third and
forth….So this prompted him to file a Complaint for
DECISION sum of money, damages and attorney’s fees. He
maintained that TTSCI acted in bad faith in
NACHURA, J.: withholding the amount of the deposit without any
justifiable reason.

On May 25, 1992, Cuenco leased from TTSCI for a

period of two (2) years, from May 8, 1992 to May 8,
1994, the Talisay Tourist Sports Complex, to be
operated as a cockpit. The lease was extended for
another four (4) years, or until May 8, 1998.
Under the Contract of Lease, it was stipulated that the
lessee shall, like a good father of the family, maintain
in good condition the furniture, chattels and all other
equipment and shall, at all times, keep the leased
premises clean and sanitary.
For this purpose, the lessee would allow the lessor’s
building supervisor or his authorized representative to
make a regular spot inspection of the leased
premises to see to it that these stipulations are strictly
implemented. Any damage caused to the furniture,
chattels, equipment and parts of the leased premises
shall be the responsibility of the lessee to repair and
compensate. 
Furthermore, the lessee would give a deposit
equivalent to six (6) months rental to answer for
whatever damages may be caused to the premises
during the period of the lease.
Upon expiration of the contract, TTSCI conducted a
public bidding for the lease of the property. CUENCO
participated in the bidding. The lease was eventually
awarded to another bidder, Mr. Rex Cuaqui
Salud.Thereafter, Cuenco wrote four (4) demand
letters to TTSCI.
the inventories presented by respondents were not
countersigned by petitioner or were they presented to
the latter
Thus, we are more inclined to agree with the trial
court that the "inventory was made as an
afterthought,"37 in a vain attempt of the respondents to
establish their case.
the summary of repairs made on the property
showing that respondents spent the amount of
₱573,710.17 immediately prior to the expiration of the
lease contract and shortly thereafter;
However, Cuenco extended the operation of the
sports complex for a period of two months after the
expiration of the lease without TTSCI’s authority and
without the payment of rentals.
(1) Talisay Sports Complex, Inc. is solely liable to
return the amount of the deposit after deducting the
amount of the two-months arrears in rentals; and
(2) The rate of legal interest to be paid is SIX
PERCENT (6%) on the amount due computed from
October 21, 1998, and TWELVE PERCENT (12%)
interest, thereon upon finality of this decision until full
payment thereof.

Though I believe I deserve a renewal,

I had to accept your decision with a
heavy heart.

Based on our contract, par. 5

thereof, it is my understanding that
I am answerable to all damages
caused to furnitures (sic), chattels
and other equipments and minor
parts of the leased premises. Once
cleared, I want the return of my
deposit of ₱500,000.00.