PSE Circular for Brokers No. 2800-98

December 21, 1998 PSE CIRCULAR FOR BROKERS NO. 2800-98 PHILIPPINE STOCK EXCHANGE, INC . Phil. Stock Exchange Center, Exchange Road Ortigas Center, Pasig City, Metro Manila Attention: Ms . Luisa Buenaventura Supervisor, Disclosure Dept . Gentlemen : Mondragon Leisure and Resorts Corporation today (December 21) asked the Court of Appeals to immediately suspend the implementation of its resolution restraining the regional trial court of Angeles City, Branch 58 from enforcing its order against the Clark Development Corporation. Mondragon claimed that the petition of CDC with the Court of Appeals was a clear case of forum shopping because it was filed even as CDC was asking for the same reliefs from the lower court. In fact, not once during the marathon hearings conducted by the RTC of Angeles on December 18, 1998 to determine whether to lift its TRO did CDC reveal to the judge that it had in fact filed a petition in the Court of Appeals for the same purpose. If Mondragon's contention is found correct CDC's petition with the Court of Appeals might just be summarily dismissed and the persons responsible for the forum shopping cited for contempt of court. Mondragon further argued that the lower court was in fact well on its way to restoring peace and order in the Mimosa Leisure Estate by compelling everyone to obey its orders when the Court of Appeals issued a restraining order on December 18, 1998, throwing back the area into the lawlessness caused by CDC's forcible entry into the Mimosa Leisure Estate. It showed how the continued implementation of the Court of Appeals TRO would not only cause grave and irreparable injury to Mimosa but also destroy the people's faith in the capacity of the judiciary to act as a shield against the exercise of brute and arbitrary power. CDC last December 14, 1998, in violation of a status quo agreement of counsels made in open court before the RTC of Angeles City, Branch 58 stormed into Mimosa with its own security guards assisted by a contingent of the PNP Special Action Force. It deliberately ignored the 90-day termination notice required by its contract with Mondragon and publicly refused to go into the arbitration required by the contract. prcd CDC's demands, according to Mondragon, are all pecuniary in nature and capable of being cured at a later date. Hence, CDC did not stand to suffer grave of irreparable damage by following the orders of the RTC of Angeles. Very truly yours, (SGD.) PIERRE PAUL S. BUHAY Comptroller