Teofilo Lee Chiong vs. Philippine-Chinese Charitable Association

[SEC-AC NO. 062. May 26, 1982.] TEOFILO LEE CHIONG, plaintiff, vs . PHILIPPINE-CHINESE CHARITABLE ASSOCIATION, INC. , defendant . D E C I S I O N This is an Appeal from the decision of Hearing Officer Alfredo B. Oca ordering the immediate reinstatement of complainant Teofilo Lee Chiong as a bona-fide member of the respondent Philippine-Chinese Charitable Association, Inc. LLphil Complainant alleged in his complaint that he is a member of the respondent association, but was expelled as a member from said association for alleged failure to pay his monthly dues from November, 1958 to December, 1977 in the amount of four hundred sixty pesos (P460.00). On November 13, 1978, complainant wrote a letter to the respondent association requesting copies of the minutes of the annual meeting of the members for 1978, minutes of the meeting of the board of directors for said year, and a copy of the By-Laws as filed with this Commission (Exh. "B"). On December 8, 1978, he received the answer of respondent association thru its counsel, Arturo M. Tolentino Law Office, informing him that it cannot accede to his request because he has been expelled from the association by reason of non-payment of dues. On December 27, 1978, complainant, thru counsel, wrote a letter to respondent's counsel, taking exception to this alleged expulsion for the reasons that: (1) in 1969, he paid the sum of P240.00 as life membership fee for which no subsequent monthly dues are required; (2) that on January 25, 1969, the association issued to him a certificate of membership; (3) that no notice of expulsion was even sent to him; (4) that to expel a member, a two-thirds (2/3) vote of the Board of Directors is required under Section 6(c), Article III of the 'By-Laws' and (5) that under said Article, if expulsion is for reason of failure to pay monthly dues for three (3) consecutive months, due notice to pay shall be given the defaulting member at least ten (10) days before the Board acts on his expulsion (Exh. "C"). Neither did respondent association inform him of his expulsion nor has it made a demand for him to pay his dues in arrears. Respondent association alleged, among others in its answer, that complainant failed to pay his monthly dues from November, 1958 to December, 1977 to the association. The By-Laws of the association authorizes its Board of Directors to terminate the membership of any member who has defaulted in the payment of his dues for three (3) consecutive months. The treasurer of the association addressed a letter-notice to the complainant on February 20, 1978, for the latter to pay his unpaid dues to the association, but that in spite of said notice, complainant still defaulted in the payment of his unpaid dues for fees. On December 12, 1978, the Board of Directors of the association decided to expel complainant for failure to pay his monthly dues since November, 1958, and thus, he ceased to be a member in good standing of the association. During the preliminary conference hearing, the parties agreed that the issues to be resolved is: 'whether or not petitioner has been expelled from the association in accordance with the By-Laws of the Association. (p. 3, Order of Hearing Officer, May 28, 1980.) After the hearing, the Hearing Officer rendered his decision on March 26, 1981, the dispositive part of which reads: "WHEREFORE, judgment is hereby rendered declaring the alleged expulsion of petitioner from respondent association as illegal and ordering said association to immediately reinstate complainant Teofilo Lee Chiong as a bona fide member of the Philippine-Chinese Charitable Association, Inc. "No pronouncement as to costs." Both parties submitted their motions for reconsideration which were denied by the Hearing Officer for lack of merit. From the above decision, the two parties now bring this Appeal to the Commission en banc, the complainant only insofar as the decision does not award any damages, attorney's fees and costs. prcd Respondent's appeal is based on the grounds that: 1. The decision at bar is completely contrary to the evidence, stipulations of the parties and records of the case; and 2. The plaintiff is with "unclean hands". Complainant testified and offered evidence that he became a regular member since 1958; that on January 15, 1969, he was given by respondent association his "certificate of membership", attesting that he "is a regular member" (Exh. "A"); that such certificate was issued upon his payment of P240.00 in 1968 when the association re-enlisted all the members, entitling one for life membership upon payment of P240.00; that the association had no certificate for life membership but his life membership is so stated in the Chinese characters written thereon; that he had not received any notice that he would be expelled for non-payment of monthly dues, that he was not given a copy of the By-Laws of the association or the minutes of its board meeting on December 12, 1978; that outside of the P240.00 dues he paid for life membership, he did not know that he was supposed further to pay a monthly due until he received the letter, dated November 29, 1978 (Exh. "C"), of the law firm of Arturo M. Tolentino, counsel of respondent, advising him that because of his failure to pay his monthly dues since November of 1958, he "has ceased to be a member in good standing of said corporation." The record on file with this Commission show that the name of complainant Teofilo Lee Chiong appears in the list of members of the association which is attached to the General Information Sheet (GIS) as of December 30, 1970. Likewise, the minutes of the Annual Meeting of the Association on December 16, 1971, Minutes of the Annual Meeting on December 21, 1972 and the List of Members of the association dated September 26, 1977, all submitted to this Commission indicate the name of the complainant as among the members. During the hearing respondent presented only one witness, its messenger, to prove that on February 20, 1978, said messenger delivered to complainant's office the letter of its treasurer (Exh. "1"), advising complainant to pay the sum of P460.00, representing dues in arrears from November, 1958 to December, 1977, non-payment of which would cause his expulsion, pursuant to Article III, Sec. 6-c of the Association's By-Laws; that mail letter was delivered by its messenger by slipping it under the door of complainant's office; that in spite of such notice, complainant failed to pay his dues; that in a meeting of the Board of Directors of the Association on December 12, 1978, the Board resolved to expel him from the association for failure to pay his dues (Exh. "2" par. III-3). Counsel of respondent insists that with the notice given, and the resolution of the Board, the expulsion of petitioner was made legally and regularly and in accordance with Article III, Section 6-c of its By-Laws. Complainant denied having received the letter of February 20, 1978. Because it is only a xerox copy, and respondent not being able to present its treasurer to identify said letter or even to present the duplicate original of the said letter from which the xerox copy was supposed to have been copied, upon objection of complainant's counsel, the Hearing Officer correctly excluded the said document as evidence for respondent. This leaves the minutes of the board of December 12, 1978 (Exh. "2") as respondent's only evidence. In paragraph "3" of his complaint, it is specifically alleged by complainant that "in 1969, he paid the sum of P240.00 as life membership fee for which no monthly dues are required." He repeated this when testifying during the hearing (pp. 6, 27, TSN June 16, 1980). This positive allegation is not denied by respondent in its Answer, neither during the hearing, nor in its Memorandum submitted after the hearing, nor in its Motion for Reconsideration, or in its Memorandum on Appeal. Such material allegation not having been denied should be deemed admitted by respondent. LibLex Respondent insists that the minutes of its Board Meeting of December 12, 1978 contains a resolution with the unanimous approval of the board members, expelling complainant from the association. It reads: "III. Extemporaneous Motions: "1. . . . "2. . . . "3. Mr. Teofilo Lee Chiong, ex-member of the association, requested for a copy of the minutes of the annual meeting of the Association for the year 1978. Atty. Arturo M. Tolentino denied in behalf of the association the above-mentioned request, since Mr. Teofilo Lee Chiong failed to pay his monthly dues since November of 1958, and hence ceased to be a member in good standing of the association ." (p. 2 of Exh. "2", emphasis supplied) We find the above as not a resolution authorizing the expulsion of complainant. The Board of respondent appears only to have taken note and approved of the action of the law firm of Arturo M. Tolentino in its said letter of November 29, 1978 (Exh. "C"), advising complainant that he has "ceased to be a member in good standing of said corporation." It has to be noted that even before the Board met on December 12, 1978, it had already called complainant as "ex-member", meaning he had earlier been expelled. No evidence of any kind was offered to show that before the said letter of respondent's counsel, the respondent had taken steps to expel complainant in accordance with Article III, Section 6-c of its By-laws. The advice given by the Tolentino law firm may not be considered as the resolution of the board of respondent expelling complainant. During the hearing below, counsel of respondent had this admission: "Actually, your Honor, please there was no expulsion of the plaintiff. "Actually, I would not know when the plaintiff here was considered by the defendant corporation as no longer a member of good standing." (pp. 27, 28, TSN May 21, 1980). prLL The Hearing Officer did not commit the errors assigned. WHEREFORE, the decision appealed from is hereby affirmed, with costs against the defendant. SO ORDERED. (SGD.) MANUEL G. ABELLO (SGD.) JULIO A. SULIT, JR. Chairman Associate Commissioner (SGD.) ROSARIO N. LOPEZ (SGD.) JESUS J. VALDES Associate Commissioner Associate Commissioner