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Milestone Reality V CA

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MILESTONE REALTY and CO., INC. and WILLIAM L.

PEREZ, petitioners,
vs.
HON. COURT OF APPEALS, DELIA RAZON PEÑA and RAYMUNDO EUGENIO, respondents.

FACTS OF THE CASE: From an original co-owned lot where she was a part, Carolina Zacarias
bought a 23,703 square meters land located in Valenzuela City. This land was in continuous
possession of Anacleto Pena who re-married Delia Razon Pena. Later when he died, Emilio Pena,
his son in his first marriage, returned the landholding to Zacarias in a consideration of a hefty sum of
money, and which the latter sold to Milestone Realty. Private respondent Delia and her brother-in-law
Raymundo Eugenio filed a complaint alleging that the land sold is tenanted and she, being the
surviving spouse of Anacleto, has the right to redeem the land. Zacarias insisted that she, being the
lessor, chose Emilio as the successor, however, petitioners said that the action to chose the next
successor has already prescribed.
ISSUE: Whether or not Delia is the rightful and legal successor to Anacleto's tenancy rights..
PARAD: PARAD ruled that the order of preference cited in Section 9 of Republic Act 3844 is not
absolute and may be disregarded for valid cause, hence, Emilio is the successor.
DARAB noted that Carolina's affidavit did not show any categorical admission that she made her
choice within the one (1) month period except to state that "when Anacleto died, the right of the
deceased was inherited by Emilio Peña" which could only mean that she recognized Emilio Peña by
force of circumstance under a nebulous time frame.
Court of Appeals affirmed the DARAB's decision. The Petitioners Carolina Olympia and Francisco
Olympia failed to choose, within the statutory period therefor, any tenant in substitution of Anacleto
Peña, the erstwhile deceased tenant on the landholding, and that, without prior or simultaneous
notice to Private Respondent Delia Peña, the Petitioners made their choice of Petitioner Emilio Peña
as substitute tenant only in January, 1992, after they had agreed to sell the property to the Petitioner
Milestone Realty & Co., Inc.
SC: Yes. Section 9 of Republic Act No. 3844 is clear and unequivocal in providing for the rules on
succession to tenancy rights. The leasehold shall bind the legal heirs of the agricultural lessor in case
of death or permanent incapacity of the latter to achieve the continuity of relationship. The agricultural
lessor is mandated by law to choose a successor-tenant within one month from the death or
incapacity of the agricultural lessee from among the following: (1) surviving spouse; (2) eldest direct
descendant by consanguinity; or (3) the next eldest direct descendant or descendants in the order of
their age. Should the lessor fail to exercise his choice within one month from the death of the tenant,
the priority shall be in accordance with the aforementioned order. The Court found in the case at bar
that the affidavit of Zacarias in choosing Emilio as the successor was constituted two years after the
death of Anacleto, hence, it has already been prescribed. Delia Razon Pena shall be the new tenant
of the land.

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