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BERCERO VS

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BERCERO VS
THIRD DIVISION
[G.R. No. 154765. March 29, 2007.]
PEDRO T. BERCERO, petitioner, vs. CAPITOL DEVELOPMENT CORPORATION, 1 respondent.
D E C I S I O N
AUSTRIA-MARTINEZ, J p:
Before the Court is a Petition for Review on Certiorari under Rule 45 of the Revised Rules of Court assailing the Decision 2 dated February 11, 2002 of the Court of Appeals (CA) in CA-G.R. CV No. 56484 which set aside the Decision 3 dated May 27, 1996 of the Regional Trial Court, Branch 88, Quezon City (RTC-Branch 88) in Civil Case No. Q-92-11732, and the CA Resolution 4 dated August 29, 2002 which denied petitioner's Motion for Reconsideration.
The factual background of the case is as follows:
On January 31, 1983, Capitol Development Corporation (respondent) leased its commercial building and lot located at 1194 EDSA, Quezon City to R.C. Nicolas Merchandising, Inc., (R.C. Nicolas) for a 10-year period or until January 31, 1993 with the option for the latter to make additional improvements in the property to suit its business and to sublease portions thereof to third parties. 5 DAcaIE
R.C. Nicolas converted the space into a bowling and billiards center and subleased separate portions thereof to Midland Commercial Corporation, Jerry Yu, Romeo Tolentino, Julio Acuin, Nicanor Bas, and Pedro T. Bercero (petitioner). Petitioner's sublease contract with R.C. Nicolas was for a three-year period or until August 16, 1988. 6
Meanwhile, for failure to pay rent, respondent filed an ejectment case against R.C. Nicolas before the Metropolitan Trial Court, Branch 41, Quezon City (MeTC-Branch 41), docketed as Civil Case No. 52933. Respondent also impleaded the sub-lessees of R.C. Nicolas as parties-defendants.
During the pendency of Civil Case No. 52933, several sub-lessees including petitioner, entered into a compromise settlement with respondent. 7 In the compromise settlement, the sub-lessees recognized respondent as the lawful and absolute owner of the property and that the contract between respondent and

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