THE Court of Appeals (CA) has ordered a couple to pay over P7 million in outstanding rent and penalties to BPI Century Tokyo Lease & Finance Corporation (formerly known as BPI Leasing Corporation) after defaulting on a lease agreement for several trucks.
The appellate court found the couple liable for breach of contract, as they had stopped making rent payments in September 2017 despite having signed a Capital Lease Agreement, several lease schedules detailing payment terms, and a Continuing Suretyship holding them jointly and severally liable for the debt.
It ordered the pair to jointly and severally pay BPI Century P7.03 million representing their total outstanding monthly rentals, plus interest at the rate of 6% per annum, to be computed from the date of each overdue rental’s date of delinquency until full payment.
Another 6% annual legal interest due on the total outstanding monthly rentals accruing as of judicial demand, or May 8, 2018, until full payment, with P25,000 attorney’s fees, litigation expenses, filing fees, and payment of the replevin bond worth over P500,000 will be imposed.
“Worse, despite BPI Century’s demand for payment, [the couple] refused to settle their outstanding rent and the accrued penalty charges, causing their obligation to balloon to an astronomical amount,†the 16-page ruling, penned by Justice Ramon A. Cruz, read.
The case stemmed from the pair failing to pay their lease starting September 2017. The lessor filed a complaint in 2018, prompting the seizure of the trucks.
Despite challenging the complaint and attempting to appeal, the CA upheld BPI’s claim, deeming the spouses in default and liable under the lease’s agreed terms. — Chloe Mari A. Hufana
