Republic of the Philippines

REGIONAL TRIAL COURT OF NEGROS ORIENTAL

7th Judicial Region
BRANCH 38
Dumaguete City

JOHN LEHMKUHL, CIVIL CASE NO.

2012-14706
Plaintiff,
FOR:
- versus -
ANNULMENT OF
MORTGAGES AND
DAMAGES
RURAL BANK OF AMLAN
(NEGROS ORIENTAL), INC.
and the REGISTER OF DEEDS
for the PROVINCE OF NEGROS ORIENTAL
Defendant,

x-----------------------x

ANSWER

The DEFENDANT, RURAL BANK OF AMLAN (NEGROS ORIENTAL),

INC., by counsel, by way of Answer to the Complaint dated February 28,
2017; unto this Honorable Court most respectfully aver the following:

1. That all the allegations contained in paragraphs 1 and 2 of the

complaint are ADMITTED;

2. That the allegations contained in paragraphs 3 and 4 of the

complaint are hereby DENIED for lack of knowledge sufficient
to form a belief as to the truth of these allegations;

3. That the allegations contained in paragraph 5 of the complaint

is hereby SPECIFICALLY DENIED the truth being that RURAL
BANK OF AMLAN (NEGROS ORIENTAL), INC., is of the belief
that Zenaida Los Banes is the sole and absolute owner of the
subject parcel of land. The bank is well aware of the
constitutional prohibition of foreign ownership to public and
private lands in the Philippines. The prohibition is very well
applicable to herein plaintiff, JOHN LEHMKUHL, a foreigner
married to Zenaida Los Banes, a Filipino. Attached herewith is
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 the Transfer Certificate of Title No. FT-9663 marked as “Annex
1”;

4. That the allegations contained in paragraphs 6 and 7 of the

complaint are hereby SPECIFICALLY DENIED the truth being
that consent of the plaintiff in this transaction is not necessary
to reiterate the above reasoning of constitutional prohibition;

5. That the allegations contained in paragraph 8 of the complaint

is SPECIFICALLY DENIED the truth being that the parties to
the contract of loan secured by a real estate mortgage, RURAL
BANK OF AMLAN (NEGROS ORIENTAL), INC., and Zenaida Los
Banes, had no intention to include the house. RURAL BANK OF
AMLAN (NEGROS ORIENTAL), INC., is fully aware of the
existence of the contract of lease between Zenaida Los Banes
and John Lehmkuhl, herein plaintiff, of the subject parcel of
land previously marked as “Annex 1.” The defendant bank is
cognizant of this encumbrance and it did not affect its decision
to grant the loan application. Attached herewith is the contract
of lease mentioned above furnished by Zenaida Los Banes to the
bank, marked as “Annex 2;”

6. That the allegations contained in paragraph 9 of the complaint

is hereby SPECIFICALLY DENIED the truth being that the bank
is of no obligation to secure the signature of the plaintiff. The
Supreme Court ruled in a number of cases that the
constitutional prohibition against the alien acquisition of land
in the Philippines is primordial over the provisions of the New
Civil Code or Family Code on the property regime between
spouses. The defendant bank can do no less than to adopt
policies consistent with prevailing law;

7. That the allegations contained in paragraphs 10, 11, and 12 of

the complaint are hereby DENIED for lack of knowledge
sufficient to form a belief as to the truth of these allegations;

8. That the allegations contained in paragraph 13 of the complaint

is hereby SPECIFICALLY DENIED the truth being that the bank
exercised the highest degree of diligence required of them when
it dealt with the property of Zenaida Los Banes. The standards
of processing Loans secured by Real Estate Mortgage has been
fully complied with. Attached herewith is the RURAL BANK OF
AMLAN (NEGROS ORIENTAL), INC., Loans and Documentary
Requirements Regulations, marked as “Annex 3.”

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 PRAYER

WHEREFORE, premises considered, it is respectfully prayed to

this Honorable Court that judgement be rendered denying the claim of
the plaintiff for the annulment of mortgages and damages, and a
declaration that the loan acquired by Zenaida Los Banes Lehmkuhl, from
herein defendant, with the accessory contract of mortgage constituted on
the property covered by TCT No. FT – 9663 is valid and effective.

Other relief and remedies as may be deemed just and equitable is

likewise prayed for.

RESPECTFULLY SUBMITTED

Dumaguete City, Philippines, March 6, 2017

Douglas J. Baldado Jr.

Counsel for Defendant
Unit #3A Casa Segunda
Larenda Drive, Motong, Dumaguete City
PTR No. 999999-A 1/13/2015 Dumaguete City
IBP No. 12121
Roll No. 66991
MCLE Compliance No. V-2222222 4/26/2014

Page 3 of 5
 VERIFICATION AND CERTIFICATION OF NON-FORUM SHOPPING

I, BENJAMIN CALDERON, of legal age, Filipino citizen, married with

residence and postal address at Purok. Mahigalaon, Batinguel,
Dumaguete City, after having been duly sworn to in accordance with law
do hereby depose and say:

1. That I am the representative of the defendant bank, RURAL BANK

OF AMLAN (NEGROS ORIENTAL), INC., duly authorized by a
Board Resolution attached herewith as “Annex 4” that I have
caused the foregoing Answer to be prepared; that I have read and
understood the contents which are true and correct of my own
personal knowledge and/or based on authentic records;
2. That I hereby certify:

That I did not file a similar case for the same cause of action;
That to the best of my knowledge, no action or proceeding
involving the same issue is pending in the Supreme Court, Court
of Appeals or any Division thereof or any agency of the
government;
That I should learn of the pendency of said similar action, I
shall undertake to report said fact within five (5) days therefrom to
this Honorable Court.

IN WITNESS WHEREOF, I have hereunto affixed my

signature this 6th day of March, 2017, at Dumaguete City,
Philippines.

BENJAMIN CALDERON
Affiant/Defendant

SUBSCRIBED AND SWORN to before me this 6TH day of March

2017 at the City of Dumaguete, Philippines.

Douglas J. Baldado Jr.

Counsel for Defendant
Unit #3A Casa Segunda
Larenda Drive, Motong, Dumaguete City
PTR No. 999999-A 1/13/2015 Dumaguete City
IBP No. 12121
Roll No. 66991
MCLE Compliance No. V-2222222 4/26/2014

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Copy furnished:
ATTY. JOHN WICK
E.J. Blanco Extension
Daro, Dumaguete City

Proof of Service: (by personal service)

Received: ________________ Date: _________

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