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  • Ayala Vs RBDC

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    Jann Cedric S. Montorio
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    Ayala Corporation owns an estate in Makati City which was subdivided and sold with deed restrictions limiting building height to 42 meters and floor area to 5 times the lot area. Ray Burton Development Corporation (RBDC) bought one of the lots but later submitted building plans to the city exceeding the 42 meter height limit. When Ayala discovered this, they asked RBDC to stop construction but RBDC refused. Ayala sued RBDC who argued the height restriction was unreasonable. The court ruled the restriction was not unreasonable as RBDC was aware and acknowledged the restriction when it initially submitted plans complying with it to Ayala.

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    Original Title

    12. Ayala vs RBDC

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    Ayala Corporation owns an estate in Makati City which was subdivided and sold with deed restrictions limiting building height to 42 meters and floor area to 5 times the lot area. Ray Burton Development Corporation (RBDC) bought one of the lots but later submitted building plans to the city exceeding the 42 meter height limit. When Ayala discovered this, they asked RBDC to stop construction but RBDC refused. Ayala sued RBDC who argued the height restriction was unreasonable. The court ruled the restriction was not unreasonable as RBDC was aware and acknowledged the restriction when it initially submitted plans complying with it to Ayala.

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    © All Rights Reserved
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    8 views1 page

    Ayala Vs RBDC

    Uploaded by

    Jann Cedric S. Montorio
    Ayala Corporation owns an estate in Makati City which was subdivided and sold with deed restrictions limiting building height to 42 meters and floor area to 5 times the lot area. Ray Burton Development Corporation (RBDC) bought one of the lots but later submitted building plans to the city exceeding the 42 meter height limit. When Ayala discovered this, they asked RBDC to stop construction but RBDC refused. Ayala sued RBDC who argued the height restriction was unreasonable. The court ruled the restriction was not unreasonable as RBDC was aware and acknowledged the restriction when it initially submitted plans complying with it to Ayala.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 1

    G.R. No.

    126699 August 7, 1998

    AYALA CORPORATION, Petitioner, vs. RAY BURTON DEVELOPMENT CORPORATION,


    Respondent.

    FACTS:
    Ayala Corporation is the owner of the Ayala estate located in Makati City. The said estate was
    originally a raw land which was subdivided for sale into different lots devoted for residential,
    commercial and industrial purposes with a deed restriction of ‘The total height of the building to
    be constructed on the lot shall not be more than forty-two (42) meters, nor shall it have a total gross
    floor area of more than five (5) times the lot area and The vendee must obtain final approval from
    AYALA of the building plans. It first sold this lot to KARAMFIL Import-Export Company who sold
    the deed of sale to PALMCREST which in turn, sold it to Ray Burton Development Corporation or
    RBDC.

    RBDC then submitted two architectural plans which are different from each other yet are the
    same which is named “Trafalgar”, the one submitted to Ayala conforms to the restriction imposed
    which is aptly named “Trafalgar Plaza”, but the one which was later submitted to Building Office
    of the Makati City Engineer’s Office is vastly different and is named “Trafalgar Towers.”

    Ayala found out and asked RBDC to cease construction of the building, which RBDC failed to heed,
    leading to Ayala to sue RBDC.

    ISSUE:
    Whether or not the restriction Imposed by Ayala is unreasonable

    RULING:
    No.

    RBDC has both known and acknowledged the imposition imposed by Ayala when it submitted
    their architectural plan to Ayala for the construction of Trafalgar Plaza. RBDC was fully aware
    that it was bound by the 42-meter height limit. This is shown by the fact that, pursuant to the
    special conditions/restrictions of the sale, it submitted to AYALA, for approval, building plans for
    a 5-storey structure with a height of 25.85 meters.

    The fact that RBDC was later issued a building permit from the Makati City Engineer's Office for
    the construction of the "Trafalgar Plaza" is not a valid justification to disregard the stipulated
    contractual restriction of 42 meters.

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