Singson v. CALTEX (Phil) Inc.
LUCIA R. SINGSON, Petitioner vs. CALTEX (PHILIPPINES), INC., Respondent FACTS: • Singson and Caltex entered into a contract of lease on July 16, 1968, over a parcel of land in Quezon City to be used by respondent as a gasoline service station. • The contract of lease provides that the lease shall run for a period of 20 years, and that the monthly rental was fixed at P3,500.00 for the first 10 years, and at P4,200.00 for the succeeding 10 years of the lease. • On June 23, 1983, five years before the expiration of the lease contract, Singson asked Caltex to adjust or increase the amount of rentals citing that the country was experiencing extraordinary inflation. • Respondent refused on the basis of the clear provisions of rental fees. • Petitioner instituted a complaint before the RTC on September 21, 1983, to adjust rentals, invoking Article 1250 of the Civil Code, since the contract of lease was executed during extraordinary inflation. To substantiate its allegation of extraordina...