The Supreme Court ordered Dakak Beach Resort, owned by former Rep. Romeo Jalosjos, to vacate its Dapitan City property after affirming a regional trial court (RTC) ruling.
The court ordered the famed tourist destination to cede control of the 1,602-square meter site, owned by Jose and Pilar Mendezona, over unpaid rent.
Lot 8771-A was leased by Violeta de Luzuriaga to Dakak in 1987, which would run for 10 years subject to a five-year renewal.
Luzuriaga, however, did not receive the copy of the lease agreement from the company which made her reject its rental payments.
She later demanded that the resort and Jalosjos vacate the lot, believing that the lease had already been expired in 1993.
The court affirmed the RTC ruling in favor of the Mendezona couple, to which Luzuriaga sold her rights with, as Dakak was not entitled for reimbursement.
As such, all the structures being built by its developers will be turned over to its lawful owners without any share awarded to Jalosjos.
The resort and its developers were also found guilty of fraud and bad faith, citing their non-compliance to the lease contract.
The court also ordered Dakak to pay its cumulative lease payments from 1992 to 1997, as well as rental fees from 1998 until they vacate the property.