Republic of the
REGIONAL TRIAL COURT
FIRST JUDICIAL REGION
SPS. ERNESTO AND JOSEFA TRINIDAD,
MARTIN FELIPE V. TRINIDAD, PHILIPPINE SAVINGS BANK, AND REGISTER OF DEEDS OF BAGUIO CITY,
CIVIL CASE NO. 8319-R
For: Annulment of a Promissory Note dated May 29, 2009 and Cancellation of Entry No. 8606-41-226 on TCT No. T-96516 with Damages
SUMMONS BY PUBLICATION
WHEREAS, the plaintiffs, through counsel filed a complaint dated September 2, 2015, quoted verbatim, as follows:
“With all due respects to the Honorable Court.
PLAINTIFFS, by and through counsel, state:
Plaintiffs-spouses are husband and wife, of legal age, Filipino citizens and residents of No. 65 Lower Brookside, Baguio City; whereas the three (3) defendants, namely: 1) Martin Felipe V. Trinidad (MARTIN, for short) is of legal age, single, Filipino and a resident of No. 65 Lower Brookside, Baguio City: 2) Philippine Savings Bank (PSBank, for brevity) is a domestic corporation doing banking business in the Philippines with principal office and address in PSBANK Center, 777 Paseo de Roxas corner Sedeno Street, Makati City 1226 and with Baguio City Branch address at Malcolm Square, Baguio City; 3) Registry of Deeds of Baguio City is a government entity and one amongst its functions is to record and register transactions and dealings with real properties in the City of Baguio with its office address at the first floor (or, basement) of the Baguio City Hall and it is being included a party-defendant as a nominal party… where they may all be served with Summonses, processes, and Orders of the Honorable Court.
In March 2008 plaintiffs decided to purchase a parcel of land from Alfredo Pascual with the intention, as the latter agreed, to have part of the acquisition costs financed by a bank by entering into a loan agreement. The aforementioned parcel of land is more particularly described as follows:
“A parcel of land (lot 4, Block 3, Psd-1-013600, being a portion of Lot 1-A-1 (LRC) (sd-43372) situated at the Res. Sec “L” City of Baguio, Island of Luzon. Bounded on the NW., along line 1-2 by Lot 5, Blk. 3, Psd-1-013600; on the NE. along line 2-3-4 by Road Lot 3, Along line 4-5 by Lot 3, Block 3, Psd-1-013600; on the SE., along line 5-1 Lot 1-B, Psd-24492. Xxx containing an area of ONE THOUSAND TWO HUNDRED (1,200) SQUARE METERS, more or less.”
As the plaintiffs at that time were bound to go back to the United States of America, they gave defendant MARTIN limited authority to enter into a loan agreement with a bank in order to facilitate sale transaction by and between the parties; hence, they executed on March 19, 2008 a Memorandum of Agreement with defendant MARTIN to obtain loan and to correspondingly enter into said loan agreement. Attached as ANNEX “A” and made part hereof is a copy of the said Memorandum Agreement. The specific provisions of the memorandum of agreement showing defendant’s limited authority are hereby reproduced as follows:
“That the FIRST PARTY (Spouses Enesto A. Trinidad and Josefa B. Trinidad) hereby agrees that the title to the property be placed in the name of the FIRST PARTY and SECOND PARTY (Martin Felipe V. Trinidad) for the purposes of obtaining a loan, with PSB or any banking institution, understood that the SECOND PARTY, has no personal right or interest in the property except that he will be also a signatory to loan application for the amount of ONE MILLION FIVE HUNDRED THOUSAND PESOS (PHP1,500,000.00) to pay for the parcel of land, later to be subject of Deed of Absolute Sale, to be executed between Alfredo Pascual as the vendor.
That the FIRST PARTY and SECOND PARTY collectively will be application of the loan for the purchase of the lot of Alfredo Pascual.”
On March 24, 2008, to effective the aforementioned memorandum of agreement by and between the parties, plaintiffs executed a Special Power of Attorney authorizing defendant MARTIN to borrow or to obtain a loan/credit accommodations from defendant PSBank the specific amount of ONE MILLION FIVE HUNDRED THOUSAND PESOS (Php1,500,000.00). Attached as ANNEX “B” and made part hereof is a copy of the said Special Power of Attorney and its pertinent and relevant provisions are reproduced, thus —
“To borrow money or obtain a loan/credit accommodations from PHILIPPINES SAVINGS BANK, in the amount of ONE MILLION FIVE HUNDRED THOUSAND PESOS (Php 1,500,000.00) and under such terms and conditions as our attorney-in-fact may agree upon with said bank or financing institution, as well as any increase, extension, renewal, restructuring, re-availment conversion thereof, and to bind us as principal on said loan/credit accommodations jointly and severally or solidarily, with our attorney-in-fact or with any other person or entity. (emphasis supplied ours) and, should there be a need for an or any increase of loan, it will only be for the purpose of equity-reimbursement of acquisition cost of the subject real property from Alfredo Pascual ONLY.
Acting under such authority, Alfredo Pascual executed a Deed of Sale in favor of the plaintiffs and defendant MARTIN subject to the promissory note entered into by the latter with defendant PSBank for the amount of Php1,500,000.00
On July 23, 2008, defendant PSBank notified, through a letter (ANNEX “C” hereof) of even date, defendant MARTIN of the approval of the mortgage loan of Php1,500,000.00 for ten (10) years for the purpose of equity-reimbursement of acquisition cost. Thereupon, defendant MARTIN executed a Promissory Note (ANNEX “D” hereof) on August 7, 2008 in favor of PSBank via its ‘fill-in the-blank form’ for the said specific purpose and particular amount only.
In the processing the loan, defendant PSBank was of full knowledge and very much aware of the extent of the authority of defendant MARTIN as it was shown and handed a copy each of the Memorandum of Agreement, and the Special Power of Attorney; thus, thereafter, a loan for the amount of Php1,500,000.00 was extended to the plaintiffs and defendant MARTIN through the latter by defendant PSBank.
With the release of the loan of Php1,500,000.00 from defendant PSBank, the acquisition cost of the real property from Alfredo Pascual was fully satisfied, the latter executed the corresponding deed of sale in favor of the plaintiffs and defendant MARTIN which document was ‘Entered on’ August 5, 2008 with the defendant Registry of Deeds of Baguio City; hence, transfer of ownership/title of the subject parcel of land was effected and that said Registry of Deeds issued the corresponding Transfer Certificate of Title No. T-96516 (ANNEX “E” hereof) in the names of SPOUSES JOSEFA B. TRINIDAD and ERNESTO A. TRINIDAD and MARTIN FELIPE V. TRINIDAD. And, with the submission of the necessary copies of the documents adverted to in the preceding paragraphs such as of the promissory note, memorandum of agreement, special power of attorney, the promissory note for Php1,500,000.00 and other papers and instruments to defendant Registry of Deeds, an entry on the Memorandum of Encumbrances was annotated on the title (TCT No. 96516) which is mark thereon as ANNEX “E-1” and reproduced as follows, to wit:
“Entry No. 4349-40-113-PROMISORY NOTE dated Aug. 7, 2008 in favor of the PHILIPPINE SAVINGS BANK for ONE MILLION FIVE HUNDRED THOUSAND PESOS (P1,500,000.00), subject to the conditions in Doc. No. 348, Page No. 70, Book No. CCCXLIII, Series of 2008 of Notary Public of Makati City, Atty. Jose Hernandez Dy. Entered Aug. 8, 2008, 8:30A.M. File No. T-96516.”
To the total surprise of the plaintiffs, more than one (1) year after plaintiffs and defendant MARTIN executed the foregoing Memorandum of Agreement and Special Power of Attorney, and after the purpose of the execution of the said document was attained and satisfied, that is, to obtain a loan for the purpose of equity-reimbursement of acquisition cost in order for the vendee Alfredo Pascual of the subject real property to execute a deed of sale of his property, defendant MARTIN, acting in concert and in collaboration with defendant PSBank, executed a PROMISSORY NOTE date May 29, 2009 in favor of defendant PSBank for ONE MILLION PESOS (Php1,000,000.00) Attached as ANNEX “F” and made part hereof, is a copy of the said Promissory Note.
That the said promissory note (ANNEX “F”) was entered on June 2, 2009 with the defendant Registry of Deeds, and was annotated in the Memorandum of Encumbrances on the title (TCT No. T-96516) which is marked thereon as ANNEX “E-3” and reproduced as follow, to wit:
“Entry No. 8606-41-226 – PROMISSORY NOTE dated May 29, 2009 in favor of PHILIPPINE SAVINGS BANK for ONE MILLION PESOS (P1,000,000.00) subject to the conditions in Doc. No. 66, Page No. 14, Book No. CCCLXXVIII, Series of 2009 of Notary Public of Makati City, Atty. Jose Hernandez Dy. Entered June 2, 2009, 8:00 A.M. File No. T-96516.”
Knowing fully well the limited authority granted to defendant MARTIN that he can only borrow, secure and obtain a loan of Php1,500,000.00 for the purpose of fully satisfying the acquisition cost of the real property from Alfredo Pascual, defendant PSBank conspired with defendant MARTIN to borrow and obtain a mortgage loan from it in the amount of Php1,000,000.00 thereby executing another Promissory Note (Exhibit “F”) dated May 29, 2009 and other documents using plaintiffs’ Transfer Certificate of Title No. T-96516 (ANNEX “E”) as the security, to the damage and prejudice of the plaintiffs.
Plaintiffs were completely flabbergasted by Entry No. 8606-21-226 (ANNEX “E-3”) in the Memorandum of Encumbrances pertaining to the Promissory Note dated May 29, 2009 in favor of Philippine Savings Bank for ONE MILLION PESOS (P1,000,000.00). That defendant PSBank cannot feign ignorance over the limitations imposed on defendant MARTIN by the PLAINTIFFS on the Memorandum of Agreement and Special Power of Attorney as the same conditions had been annotated in the Transfer Certificate of Title T-96516 (ANNEX “E”) as that in Entry No. 4348-40-113 (ANNEX “E-2”) dated March 24, 2008 because the annotation pertaining to the Special Power Attorney had been dated well before the first Promissory Note as Entry No. 4349-40-113 (ANNEX “E-1”) dated August 7, 2008, and the second unauthorized Promissory Note as Entry No. 8606-41-226 (ANNEX “E-3”) DATED May 29, 2009.
Consequently, PLAINTIFFS, having been distressed by the untoward, unauthorized and unlawful actions of defendant MARTIN, find the urgent necessity to seek judicial redress for the annulment, revocation and voiding of that PROMISSORY NOTE (ANNEX “F”) dated May 29, 2009 and for the cancellation of Entry No. 8606-41-226 (ANNEX “E-3”) appearing on the Memorandum of Encumbrances of plaintiffs’ Transfer Certificate of Title No. T-96516 (ANNEX “E”) due to want of consent of the plaintiffs.
Due to the unauthorized and unlawful acts of defendants MARTIN and PSBANK, plaintiffs suffered sleepless nights, mental anguish agony, loss of appetite and hurt feelings due to the adverse effect of having to face and pay another indebtedness for P1,000,000.00 for not being even a party to a/any/all documents executed in relation to the said loan, for which reason the said defendants must be assessed to jointly pay the amount of no less than Php100,000.00 as moral damages.
In order for the defendants MARTIN and PSBANK not to trifle with and not to trample upon the rights of others particularly plaintiffs, they must be assessed to pay jointly the amount of Php100,000.00 as exemplary damages.
Due to the unauthorized and unlawful acts of defendants MARTIN and PSBANK, the plaintiffs in order to protect their rights and interests were constrained to engage the legal services of counsel which they have agreed and have already paid the amount Php50,000.00 as attorneys’ acceptance fees plus an agreement to pay an appearance fees of counsel/s in the amount of Php5,000.00 per recorded appearance, for which reason defendants must be ordered to pay and refund to the plaintiffs.
Due to the filing of this suit, by reasons of the unauthorized and unlawful acts of the defendants MARTIN and PSBANK, the plaintiffs have to come back to the Philippines and from that time on they have already incurred expenses and spent the amount of Php120,000.00 as actual damages, for which the said defendants must be assessed to pay.
WHEREFORE, premises considered, it is respectfully prayed unto the Honorable Court that, after due notice and hearing, judgement be rendered, in these manner, thus—
a) declaring the annulment, revocation, and voiding of the PROMISSORY NOTE (ANNEX “F”) dated May 29, 2009, and,
b) ordering defendant Registry of Deeds of Baguio City to effect the cancellation of Entry No. 8606-41-226 (ANNEX “E-3”) appearing on the Memorandum of Encumbrances of plaintiffs’ Transfer Certificate of Title No. T-96516 (ANNEX “E”)
c) ordering defendants MARTIN FELIPE V. TRINIDAD and Philippine Savings Bank to jointly and severally pay the plaintiffs the following amounts, to wit:
1) Php100,000.00 as and by way of moral damages.
2) Php100,000.00 as and by way of exemplary damages.
3) Php50,000.00 as attorney’s fees plus Php5,000.00 for each and every recorded appearance of counsel/s.
4) Php120,000.00 as actual damages, and,
5) Cost of suit.
All other reliefs just and equitable under the premises are likewise prayed for.
Baguio City, Philippines, September 2, 2015.
THE LAW FIRM OF DOMOGAN, CHAN, & MABALOT
Counsel for the Plaintiffs
Unit 5 and 6 Ground Floor, Megatower Residences
Sandico St. corner Tecson St., Salud Mitra Barangay Baguio City
Telephone Number: (+6374)300-3668; 09175069197
For the Firm:
ROBERT B. MABALOT JR.
PTR No. 2010846; 01.05.2015; Baguio City
IBP Lifetime Membership No. 899450; 01.02.2013; Baguio City
Roll of Attorney No. 61584; 03.28.12; Manila
N.A. No. 110-NC-12-N
MCLE Compliance No. V-0000154- June 20, 2013; Pasig City
Atty. Clifford C. Chan
Roll of Attorney No. 61841; 06.18.2015; Manila
IBP Annual Membership No. 0980712; 01.09.15; Baguio City
MCLE Compliance No. V-0000129; 06.20.13; Pasig City
ATTY. CARLO BENEDICT L. NAGPALA
Roll of Attorney No: 64674; April 29, 2015; Manila
IBP Lifetime Membership No. 013719; April 13, 2015; Baguio City
PTR No: 2193167; May 7, 2015; Baguio City
MCLE Compliance No. Passed the bar examination this 2015 so he will attend the MCLE to be provided for by the Baguio-Benguet Chapter this 26-29 May 2015 at Hotel Supreme, Baguio City.”
WHEREAS, on January 10, 2017, plaintiffs through counsel, filed a Motion for the Issuance of Summons by Publication alleging therein among others that on the 3rd day of November 2015, Atty. Robert B. Mabalot, Jr., plaintiff’s counsel, tried to cause the service of summons together with the copy of the complaint upon defendant Martin Felipe V. Trinidad, at No. 65 Lower Brookside, Baguio City; that upon information from defendant’s father Mr. Willy Trinidad, they do not know his whereabouts or had he contacted them as of that date.
WHEREAS, on January 10, 2017, the Court ordered that summons be served upon Martin Felipe V. Trinidad through publication at the expense of plaintiffs Spouses Ernesto A. Trinidad and Josefa B. Trinidad, once a week for three (3) consecutive weeks in a newspaper of general circulation in Baguio City and the Benguet province.
NOW THEREFORE, YOU, MARTIN FELIPE V. TRINIDAD, whose present whereabouts are unknown, is hereby summoned through this medium of publication and is therefore required to file through the Office of the Clerk of Court, your responsive pleading and/or answer to the above quoted Answer with Counterclaim, Cross-Claim within sixty (60) days from notice, serving at the same time a copy of your responsive pleading and/or answer upon plaintiffs’ counsel. Atty. Roberto Mabalot, Jr. at Units 5 and 6 Ground Floor, Megatower Residences Sandico St. corner Tecson St,. Salud Mitra Barangay, Baguio City. Your failure to do so within the period herein prescribed will enable the plaintiffs to take judgement against you and demand from the Honorable Court the relief and remedies prayed for in their complaint. You are reminded of the provision in the IBP-OCA Memorandum on Policy Guidelines dated March 12, 2002 to observe restraint in filing a motion to dismiss and instead allege the grounds therefore as defenses in the answer.
WITNESS THE HONORABLE MONA LISA V. TIONGSON-TABORA, Presiding Judge of this Court, this 13th day of February, 2017 in Baguio City, Philippines.
(SGD) KARLDON M. EUSTAQUIO
Clerk of Court V
Publication Dates: February 25, March 4 and 11 2017