Republic of the Philippines

MUNICIPAL TRIAL COURT IN CITIES

FIRST JUDICIAL REGION
Branch 4
Baguio City

Spouses DALE V. ESCOLANO and

RUBY G. ESCOLANO,
Complainants, CIVIL CASE NO. 13388

-Versus- FOR: UNLAWFUL

DETAINER with DAMAGES
Spouses BRANDON C. TULIO and
MARJORIE C. TULIO,
Respondents.
x--------------------------x

COMPLAINT

Plaintiff, thru the undersigned counsel, respectfully states:

1. That Plaintiff-spouses are both of legal age, Filipino citizens and residents of #18
Loakan Proper, Baguio City where they may be served with summons and other
processes and hereinafter referred to as the ESCOLANOS;

2. That Respondent-spouses are both of legal age, Filipino citizens and are presently
occupying the property subject of this suit located at #36 Camp 7, Kennon Road,
Baguio City where they may be served with summons and other processes and
hereinafter referred to as the TULIOS;

3. That sometime in June 22, 2007 the ESCOLANOS agreed to SELL a THREE (3) storey
residential house located at Camp 7, Kennon Road, Baguio City containing FOUR (4)
bedrooms “AS IS” having a total area of ONE HUNDRED (100) SQUARE METERS and
the TULIOS agreed to purchase the same for TWO MILLION TWO HUNDRED
THOUSAND PESOS (P2,200,000.00);

4. That the parties executed a Memorandum of Agreement regarding the subject

property which is hereto attached and marked as Annex “A”

5. That the ESCOLANOS received the amount of ONE MILLION ONE HUNDRED
THOUSAND PESOS (P1,100,000.00) from the TULIOS on a staggered basis. Some
payments received and evidenced by Acknowledgment receipts are hereto attached
and marked as Annex “B”. The aforestated amount is recorded and acknowledged to
have been received and recorded in the Deed of Conditional Sale which was later on
executed by the parties ;

6. That one of the covenants in the said Memorandum of Agreement, particularly

paragraph 2.c, states that “the SECOND PARTY ( the ESCOLANOS) agree to vacate the
 house upon payment of half of the price of the house and lot so that the FIRST
PARTY ( the TULIOS) can occupy the said property;

7. That the ESCOLANOS complied with the said stipulation and vacated the said
property;

8. That on May 8, 2009, the ESCOLANOS executed a DEED OF CONDITIONAL SALE

covering the same property in favor of the TULIOS, particularly described as follows,
to wit:

“ a parcel of land ( Lot 3-C-3 of the subdivision plan (LRC) Psd- 880089,
being a portion of Lot 3-C described on plan (LRC) Psd-99887, LRC Rec.
No. Civ. Res. 211), situated in Res. Sec. “J”, Baguio City, Island of Luzon.
Bounded on the NE., points 2 to 4 by Lot 3-B (LRC) Psd-79993; on the
SE., points 4 to 5 by Lot 8 (LRCP) Psd – 87668; on the SW., points 5 to 6
by Lot 3-C-2 of the subdivision plan; points 6 to 7 by Lot 9 (LRC) Psd-
87544; and on the W., points 1 to 2 Lot 3-A (LRC) Psd-43348. Beginning
at a point marked “1” on plan, being N. 65 deg. 67’E, 567.88m. from
triangulation Station Camp 7, Baguio townsite x x x; containing an area
of Three Thousand (3,000) square meters, more or less xxx”

9. That culled from the DEED OF CONDITIONAL SALE are the following covenants and
stipulations, to wit:
xxx

“WHEREAS , the VENDOR desires to sell and the VENDEE, FULLY

ARMED WITH THE KNOWLEDGE THAT THE SAME PARCEL OF
LAND AND THE IMPROVEMENT STANDING THEREON IS NOT YET
IN THE NAME OF THE VENDOR, AGREES TO BUY the
aforementioned parcel of land, including the improvements thereon,
subject to the herein terms and conditions MUTUALLY ACCEPTABLE
to the parties” (emphasis supplied)
“NOW THEREFORE, for and in consideration of the foregoing and the
mutual covenants and stipulations hereinafter set forth, the parties
have agreed, stipulated and covenanted and hereby agree, stipulate
and covenant as follows:
xxx
c. The balance of ONE MILLION ONE HUNDRED THOUSAND PESOS
(P1,100,000.00) shall be paid in the following installments:

May 30, 2009 - ONE HUNDRED THOUSAND PESOS

June 30, 2009 - ONE HUNDRED THOUSAND PESOS
July 30, 2009 - ONE HUNDRED THOUSAND PESOS
August 30, 2009 - ONE HUNDRED THOUSAND PESOS
September 30, 2009 - FIFTY THOUSAND PESOS
October 30, 2009 - FIFTY THOUSAND PESOS
November 30, 2009 - FIFTY THOUSAND PESOS
December 30, 2009 - FIFTY THOUSAND PESOS
January 30, 2010 - FIFTY THOUSAND PESOS
February 30, 2010 - FIFTY THOUSAND PESOS
March 30, 2010 - FIFTY THOUSAND PESOS
April 30, 2010 - FIFTY THOUSAND PESOS
 May 30, 2010 - FIFTY THOUSAND PESOS
June 30, 2010 - TWO HUNDRED FIFTY THOUSAND PESOS

xxx

2. Inspection and Warranty- The VENDOR has agreed to sell the subject
property to the VENDEE on an “AS IS, WHERE IS” basis. The VENDEE
hereby declares that he has inspected the subject property prior to the
execution of this Deed, and acknowledges that he is fully satisfied with
the conditions thereof. The VENDOR makes no warranty as to the
condition, operational or structural capability, or as to hidden defects of
the subject property, which the VENDEE warrants to know by virtue of
the VENDEE’s duty to inspect” (emphasis supplied)

xxx

10. That at the onset, the TULIOS complied with the schedule of payment as indicated in
their DEED OF CONDITONAL SALE, the ESCOLANOS received their payments
starting from May 30, 2009 until July 30, 2009;

11. That on October 13, 2009, the ESCOLANOS through Atty. Donna K. Ngoslab sent a
letter addressed to the TULIOS informing the latter that they have breached the
agreements stated in the Deed of Conditional Sale, particularly in the schedule of
payments and formally informed the latter that the ESCOLANOS are voiding the
contract. The notarized letter is hereto attached and marked as Annex “C”;

12. That according to the Deed of Conditional Sale, specifically stipulation clause
number 3 on delivery, states:

“ 3. Delivery- x x x PROVIDED THAT, in the event that the VENDEE

fails to comply with the schedule of payments as provided for in
paragraph 1-C for AT LEAST TWO (2) CONSECUTIVE MONTHS, this
Deed of Conditional Sale shall be AUTOMATICALLY BE VOIDED
WITHOUT THE NEED OF PRIOR JUDICIAL RESORT and TWENTY
PERCENT (20%) of the total monies paid by the VENDEE plus
reasonable rent in the amount of TEN THOUSAND PESOS
(P10,000.00) per month of the actual possession of the vendee,
shall be forfeited in favor of the vendor as liquidated damages. It
is expressly stipulated herein that ownership shall not transfer
unto the VENDEE UNTIL THE FULL PAYMENT OF THE TOTAL
PURCHASE PRICE of the property and WITHIN THE PERIOD
HEREIN CONTEMPLATED. Within FIFTEEN (15) days on receipt of
the service of the notarial rescission, in the event of default, the
VENDEE UNDERTAKES TO PEACEFULLY VACATE THE PREMISES
WITHOUT FURTHER DEMAND.” (emphasis supplied)
xxx
13. That the TULIOS replied through Atty. Ermar B. Guerzon, the contents are hereby
quoted, to wit:

“ x x x However, sometime on August 2009, our clients got hold of a copy of a

Demand Letter from Atty. Dona K. Ngoslab addressed to Ms. Alex Escolano
 demanding that the latter pay her balance over a property, the same property
which our clients bought from Ms. Mat-an. x x x”

The reply is hereto attached and marked as Annex “D”.

14. That it is noteworthy to state that the demand letter was addressed to Ms. Alex
Escolano. However, the TULIOS in UTMOST BAD FAITH AND FOR UNKNOWN
REASONS, WITHOUT ANY AUTHORITY AND WITHOUT ANY FEAR OF THE
LEGAL IMPLICATIONS OF THEIR ACT, OPENED THE LETTER;

15. That the TULIOS reasoned out the it was because of the contents of the said letter
that stopped them from stopping their payment as indicated in the Deed of
Conditional Sale;

16. That in fact, the TULIOS even refused to give the letter to complainants, when in fact
the letter was addressed to Ms. Alex Escolano;

17. That this is in TOTAL CONTRADICTION with the earlier Deed of Conditional Sale
since they were sufficiently informed of the status of the property. Hence, they are
stopped from denying the current condition of the property that they have
purchased;

18. That on November 18, 2009, The ESCOLANOS against consulted the legal advice of
Atty. Ricardo M. Rivero regarding the letter. In the letter, the TULIOS through Atty.
Paulfred A. Tombali replied:

“xxx after weeks of consideration, maintains and she has a legal basis,
that the reasons you advanced for your non-compliance of your
obligation to her are not justified in law and in fact. They are matters
and concerns between her and the other parties which do not affect
your agreement with her. xxx”
The letter is hereto attached and marked as Annex “E”.

19. That TULIOS remained unfazed by the consequences of their breach of the Deed of
Conditional Sale remained and occupied the subject property;

20. That on June 25, 2010, the ESCOLANOS engaged the legal services of the
undersigned and again, in good faith and with the hope that the issue will not reach
the annals of the Court having jurisdiction of the subject matter, wrote anew the
TULIOS. The letter and the corresponding registry Receipt is hereto attached and
marked as Annex “F”.;
21. That the TULIOS chose to ignore the same prompting the ESCOLANOS to finally
send the former A Notice of Rescission regarding the Deed of Conditional Sale The
same is hereto attached and marked as Annex “G”;

22. That still, in total defiance of the legal consequences of the breach of the Contract of
Conditional Sale, and the earlier covenant that they have dully consented to, the
TULIOS still refused to vacate the premises;
23. That on August 4, 2010, the undersigned received a letter from the TULIOS through
Atty. Ermar B. Guerzon bearing the same answer…”this is however with the
assurance of Ms. Escolano that she is ready to transfer the ownership of the same to
our clients upon full payment of the purchase price xxx”. The letter is hereto
attached and marked as Annex “H’;

24. That the TULIOS, refused to recognize the stipulations and covenants that they have
earlier consented to;

25. That this statement which was again stated in the October 20, 2009 letter, are bereft
of any legal basis, since it is in total contravention to the stipulations and covenants
in the deed of Conditional Sale;

26. That the same was referred to the Lupong Pambaranggay for mediation
proceedings, the same having failed, it was again referred to the Pangkat
Tagapagkasundo for conciliation proceedings, the same however failed. The
Certificate to File Action is hereto attached and marked as Annex “I”.;

27. That the TULIOS despite giving their consent to the covenants and stipulations in the
Deed of Conditional Sale refused to follow the schedule of payments;

28. That the supposed reason of the TULIOS was based upon a letter that was
addressed to Ms. Alex Escolano however, the TULIOS bereft of any authority opened
the same;

29. That the TULIOS after accepting the terms and conditions of the Deed of Conditional
Sale and specifically armed with the knowledge that the title to the property is not
yet registered in favor of the ESCOLANOS conceded and consented to buy the
property;

30. That after this knowledge, the TULIOS are now using this circumstance as a reason
not to pay;

31. That the ESCOLANOS sent the first demand letter through Atty. Donna K. Ngoslab
and the subsequent demand letter, however, they REFUSE TO HONOR THE
STIPULATIONS contained in the Deed of Conditional Sale;

32. That the TULIOS, after THIRTEEN (13) months of unlawfully occupying the
property still refused to vacate the same, hence, another demand letter was sent to
them through the undersigned;

33. That stubborn as they are and not willing to settle, the ESCOLANOS finally sent a
Notice of Notarial Rescission in due regard with the Deed of Conditional Sale, still
refused to honor the agreement and refused to vacate;

34. That as a further consequence of the TULIOSS’ malicious, intentional and deliberate
actuations, the ESCOLANOS suffered and continuously suffer moral shock, wounded
feelings, besmirched reputation, serious anxiety and sleepless nights which must
perforce entitle the TULIOS to MORAL DAMAGES in the amount of at least
P200,000.00;
 35. That the reckless, abusive and oppressive manner by which the TULIOS violated and
disregarded the ESCOLANOS’ rights likewise warrants the payment of EXEMPLARY
DAMAGES in the amount of at least P200,000.00;

36. That by reason of the TULIOS’ repeated malicious and deceitful conducts
deliberately designed to malign, embarrass and insult the ESCOLANOS, the latter
was compelled to engage the services of the undersigned counsel and to go to Court
for redress of their grievances by committing to pay an acceptance fee of P35,000.00
exclusive of appearance fees of P1,500.00 for every appearance, and costs of this
litigation.

PRAYER

WHEREFORE, it is respectfully prayed of the Honorable Court after due hearing, to

adjudge and order respondents, Brandon Tulio and Marjorie Tulio, jointly and severally to:

1. Permanently vacate the premises subject to the payment of FOUR HUNDRED and
THIRTY THOUSAND (430,000.00)in the Philippine currency AS STIPULATED IN
THE DEED OF CONDITIONAL SALE;
Total amount received by COMPLAINANTS: 1,400.000.00
1,400,000.00 X 20% = 280,000.00
15 months of rent (May 18, 2009 to August 19, 2010)
At 10,000.00 per month = 150,000.00

2. To pay COMPLAINANTS the amount of TWO HUNDRED THOUSAND PESOS

(Php200,000.00) in Philippine currency for MORAL DAMAGES;

3. To pay complainants the amount of TWO HUNDRED THOUSAND (Php200,000.00)

in Philippine currency for EXEMPLARY DAMAGES;

4. Attorney’s fees of THIRTY FIVE THOUSAND PESOS (PhP35,000.00) in Philippine

currency exclusive of ONE THOUSAND and FIVE HUNDRED PESOS (Php1,500.00) in
Philippine currency for every court appearance;

5. Ordering respondents to pay the costs of this suit.

Complainant likewise pray for other remedies and remedies and reliefs which the
Honorable court may deem just and equitable under the circumstances.

Respectfully submitted, on this 3RD day of May 2011 at Baguio City, Philippines.

ATTY. MERCEDES ARTICONA

Counsel for the Complainants
Unit 13 Ina Mansion Condominium,
Kisad Road, Baguio City
PTR NO. 438788; 01-06-11; Baguio City
IBP NO. 437888 01-06-11; Baguio City
 ROLL NO. 987488

REPUBLIC OF THE PHILIPPINES }

DONE: IN THE CITY OF BAGUIO } S.S.
X ========================= X

VERIFICATION AND CERTIFICATION

That WE, DALE V. ESCOLANO and RUBY G. ESCOLANO, after having been sworn in
accordance with law, depose and say:

That we are the complainants in the foregoing complaint, that we have caused the
preparation of the foregoing COMPLAINT; that we have read allegations therein and that
they are all true and correct in accordance with our personal knowledge and belief.

That we have not heretofore commenced any other action or proceeding involving
the same issues in the Supreme Court, the Court of Appeals, or any other tribunal agency;
 That to the best of our knowledge, there no such action or proceeding is pending in
the Supreme Court, the Court if Appeal, or different Divisions thereof, or any tribunal or
agency;

That if there is such other action or proceeding pending, we must state the status of
the same, and

That should we thereafter learn that a similar action or proceeding has been filed or
pending before the Supreme Court, Court of Appeals, or different Divisions thereof, or any
other tribunal or agency, Petitioner shall undertake to promptly inform the aforesaid courts
and such other tribunal or agency of that fact within five(5) days there from.

IN WITNESS WHEREOF, we have hereunto set my hands this 4 th day of May 2011 at
Baguio City, Philippines.

DALE V. ESCOLANO RUBY G. ESCOLANO

Philippine Passport EB 0662278 Philippine Passport EB 0662279
Valid until May 28, 2015 Valid until February 26, 2012

SUBSCRIBED AND SWORN to before me this 4th day of May 2011, Complainants who
has satisfactorily proven their identities to me through their Passport indicated below their names,
that they are the same persons who personally signed the foregoing affidavit before me and
acknowledged that they executed the same.

LIYA ORTEGA-RODRIGUEZ
Notary Public
Until December 31, 2012
Doc. No. 79____; PTR No. 050183/Baguio City/01-11-11
Page No. 16___; Roll of Atty. No. 8121983
Book No. I ; IBP Lifetime Membership No. 9031984
Series of 2011. Baguio-Benguet