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GR 155604 CAP Vs Belfranlt Respondent did not appeal from the CA decision but

November 22, 2007 Petitioners filed the new petition, questioning the CA
decision on the following grounds:
College Assurance Plan Phil., Inc. (CAP) and
Comprehensive Annuity Plans and Pension Corporation I: CA erred in not holding that the fire was a fortuitous
(CAPP) leased several units on the second and third floors event.
of Belfranlt Building in Angeles City, Pampanga owned by
Belfranlt Development, Inc. II: CA erred in holding that petitioner failed to observe the
due diligence of a good father of a family.
On October 8, 1994, fire destroyed portions of the
building, field investigation report stated that Cause of Fire III: CA erred in holding petitioners liable for certain actual
is the Accidental overheating coffee percolator in the 3rd damages despite of the failure to prove the damage as
floor Store room occupied by CAP, alleged.

Belfranlt sent CAP a notice to vacate the leased premises IV: CA erred in holding petitioners liable for temperate
to make way for repairs, and to pay reparation estimated damages.
at P1.5 million. CAP vacated the leased premises but they SC rules that the petition lacks merit.
did not act on the demand for reparation.
Article 1667 of the Civil Code, which provides: The lessee
Another demand was sent by Belfranlt reiterating its claim is responsible for the deterioration or loss of the thing
for reparation, this time estimated by professionals to be leased, unless he proves that it took place without his
no less than P2 million. It also clarified that, as the leased fault. This burden of proof on the lessee does not apply
units on the second floor were not affected by the fire, when the destruction is due to earthquake, flood, storm or
petitioners had no reason to vacate the same; hence, their other natural calamity.
lease on said units is deemed still subsisting, along with
their obligation to pay for the rent. Article 1174 of the Civil Code defines a fortuitous event as
that which could not be foreseen, or which, though
CAP replied that they could no longer re-occupy the units foreseen, was inevitable.
on the second floor of the building for they had already
moved to a new location and entered into a binding Presumption is the lessee is liable for the deterioration or
contract with a new lessor. Petitioners also disclaimed loss of a thing leased. The lessee must prove that the
liability for reparation, pointing out that the fire was a deterioration or loss was due to a fortuitous event which
fortuitous event for which they could not be held took place without his fault or negligence to be exempt
responsible. from liability.

After its third demand went unheeded, Belfranlt filed with If the negligence or fault of the obligor coincided with the
the RTC for damages and awarded. occurrence of the fortuitous event, and caused the loss or
damage or the aggravation thereof, the fortuitous event
Actual and Compensatory damages cannot shield the obligor from liability for his negligence.
Cost of rehabilitation The presumption therefore is that CAP were responsible
Unpaid rentals on the third floor for the damage. Since CAP wasn’t able to prove that the
Unpaid rentals on the second floor
Costs of suit fire was not due to their fault or negligence. Belfranlt on
Attorney's fees the other hand was able to presented credible and
Moral damages preponderant evidence to prove otherwise.
Exemplary damages
WHEREFORE, the petition is DENIED for lack of merit.
It was raise to CA and modified the RTC Decision:
Unpaid rentals on the third floor
Unpaid rentals on the second floor
Costs of suit
Plus temperate damages.

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