2024 Remedial Law, Q7

Myrna leased her real property to Geybin for a period of one year. However, Geybin refused to vacate the premises after the expiration of the lease. Myrna then filed against Geybin an unlawful detainer case. The Metropolitan Trial Court (MeTC) ruled in favor of Myrna and ordered Geybin to surrender the real property. The judgment of the MeTC lapsed into finality but was not enforced. For humanitarian reasons, Myrna allowed Geybin to stay on the real property provided he will surrender its possession when needed. Thereafter, Myrna demanded from Geybin to vacate the premises but was refused. Myrna filed against Geybin another unlawful detainer case. In his answer, Geybin argued that the second ejectment case is barred by the prior final judgment in the first ejectment case. Does res judicata bar the institution of the second unlawful detainer case? Explain.

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Does res judicata bar Myrna's second unlawful detainer case against Geybin?

What is an essential element for res judicata in the concept of bar by prior judgment under Rule 39?

When does possession by tolerance become unlawful in an ejectment case?

How does a cause of action based on lease expiration differ from one based on tolerance?

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What is the legal effect when a landlord allows a tenant to stay on property after an ejectment judgment lapses?

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1. Res Judicata Requirements
Under Rule 39 of the Rules of Court, res judicata in the concept of bar by prior judgment requires identity of parties, subject matter, and causes of action. When a second lawsuit is filed between the same parties regarding the same property, res judicata will not apply if the underlying cause of action has changed. A cause of action consists of the delict or wrongful act by which the defendant violates the primary right of the plaintiff. Without an identity of causes of action, the prior final judgment cannot bar the subsequent action.

2. Possession by Tolerance
Possession by tolerance arises when an owner permits another person to occupy property without any formal contract, subject to the implied promise that the occupant will vacate upon demand. Such possession is lawful at its inception but becomes illegal from the moment the owner demands that the occupant vacate the premises. The occupant's subsequent refusal to comply creates a new, distinct cause of action for unlawful detainer. This new cause of action is independent of any prior lease agreement or previous judicial eviction decree that was unexecuted.

3. Unlawful Detainer Causes
In unlawful detainer actions, the cause of action is defined by the specific breach or wrongful withholding of possession. An initial ejectment suit based on the expiration of a written lease contract is legally distinct from a subsequent ejectment suit based on tolerance. Even if a prior judgment for unlawful detainer became final, a new act of tolerance by the landowner creates a new landlord-tenant or possessory relationship. Consequently, the landlord's subsequent demand to vacate after revoking tolerance gives rise to an entirely new suit.

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