Villadores v. Gonzales

[SEC-SICD * CASE NO. 03-94-4701. February 24, 1995.] VIOLETA VILLADORES, ET AL. , petitioners , vs . DOMINADOR GONZALES, ET AL. , respondents . D E C I S I O N This is a petition for the nullification of election with prayer for the issuance of a restraining order. prcd Petitioners alleged, among others, that they and respondents are all members of the Luzon Avenue Residents Association in Diliman, Inc. (LARAD, for brevity); that in January, 1993, MERALCO discontinued the supply of electricity to the members of LARAD because of the failure of its officers to pay the electric bills inspite of the fact that the amount of P80,000.00 was collected from the individual members thereof; disgusted on what had happened, the general membership convened in February of 1993, and despite the fact that the then incumbent members of the board of trustees and officers of LARAD headed by Loreto Modrigo were "overstaying" in office, they decided to hold an election where they elected new sets of the members of the board of trustees and officers headed by Esteban Ganitano; that in all bad faith, the group of Loreto Modrigo also held an election in March of 1993 and elected their own trustees and officers; that in September of 1993, the group of Loreto Modrigo filed a complaint before the Prosecution and Enforcement Department, this Commission, docketed as P.E.D. No. 93-1535 ; that in a conference held on November 12, 1993 presided by Hearing Officer Silvino T. Pampilo, Jr. the parties appeared and agreed that an Election/Accreditation Committee be created composed of two (2) Representatives each from both parties to be chaired by the Barangay Captain who is tasked to supervise the election of officers/directors of LARAD on November 23, 1993, and the parties further agreed that they will abide by the result of the election (Annex "B"); that the date of election was changed from November 23, 1993 to January 16, 1994 (Annex "C"); that the election was held on January 16, 1994 as scheduled, and the following were elected: Board of Trustees 1. Violeta Villadores 9. Rufino Narvaja 2. Avelina Jose 10. Rodolfo Cruzado 3. Esteban Ganitano 11. Adriano San Jose 4. Brigido Lalangan 12. Daniel Diocares 5. Alberto Velasco 13. Zenaida Araujo 6. Manolo Tenarife 14. Florencio Salisi 7. Felipe Abungan 15. Domingo Cobico 8. Rufino Espino OFFICERS President Esteban Ganitano Vice-President Brigido Lalangan Secretary Felipe Abungan Zenaida Araujo Treasurer Violeta Villadores Avelina Jose Auditor Manolo Tenarife Alberto Velasco P.R.O. Rufino Narvaja Rufino Espino that the group of Loreto Modrigo did not honor the election held on January 16, 1994, and they held their own election on January 18, 1994; that respondents are in custody of the corporate books, documents, records and funds, more particularly the P80,000.00 collected from members intended for the electric bills and the other membership fees and dues; and that respondents are unlawfully discharging their respective functions as trustees and officers of the association causing confusion and injustice to LARAD. dctai In their answer, aside from making admission and denials, respondents interposed as special defenses the allegations that petitioners have no personality to file this action, neither do they have a cause of action against them; that petitioners Brigido Lalangan, Alberto Velasco, Manolo Tenarife, Rufino Narvaja, Daniel Diocares, Zenaida Araujo and Domingo Cobico are no longer members of LARAD their membership having been terminated on April 12, 1993 for their failure to pay their dues; that petitioners Violeta Villadores, Avelina Jose, Esteban Ganitano, Felipe Abungan, Rodolfo Cruzado, and Florencio Salisi may be residents of Luzon Avenue, Old Balara, Diliman, Quezon City, but are not members of LARAD; that petitioners Rufino Espino and Adriano San Jose claimants to the position of P.R.O. and member of the Board of Trustees, respectively, were not elected to said positions. Adriano San Jose disclaimed any participation in his being elected as a member of the Board of Trustees; that the election held by the petitioners has no basis in fact and in law; that, on the other hand, the election conducted on January 18, 1992, wherein they (respondents) were duly elected and qualified as a legitimate exercise done by the bona-fide members of LARAD; that as of January 27, 1992, they (respondents) were listed as the officers/trustees of LARAD by the SEC, Record Division; that on January 15, 1994, Teresita Pamon and Miguel Modrigo who were appointed members of the committee on elections and accreditation of LARAD, notified the Barangay Captain Manuel Mira and interposed their objection to the supposed scheduled election on January 16, 1992, due to the unresolved issue of membership and for lack of time and preparation; and that, nevertheless, the petitioners proceeded with the election having residents of Luzon Avenue, who are not members of LARAD, as their voters. Hearings were conducted and both parties presented documentary and testimonial evidence. From the evidence submitted by the parties both testimonial and documentary, the following undisputed facts were duly established. The residents of areas 1, 2 and 6 of Luzon Avenue, Old Balara, Diliman, Quezon City, formed an association called the Luzon Avenue, Homeowners Association in Diliman (LARAD). In 1991, they incorporated themselves into the Luzon Avenue Residents Association in Diliman (LARAD, Inc.). The association embarked in electrification project, where they regularly collected from the residents the payments for MERALCO bills. In January, 1993, the electric facilities in the subject areas were disconnected resulting to the total brown out for about a week. The residents got angry when they found out that the disconnection was due to arrears in the payment of electric bills totalling P72,000.00 inspite of the fact that they already paid their respective obligations. In February, 1993, they (petitioners) decided to hold an election and elected a new set of officers Petitioner Esteban Ganitano being elected president. In March, 1993, the group headed by Loreto Modrigo also held an election and elected their own set of officers. In view of the assertion of authority by two sets of officers, Loreto Modrigo filed a case with the Prosecution and Enforcement Department, SEC, docketed as PED Case No. 93-1535 . During the hearing therein held on November 15, 1993, the group headed by Esteban Ganitano and the group headed by Loreto Modrigo entered into a compromise formula wherein they agreed to abide and honor whatever may be the result of an election that may be called by the Commission. Hearing Officer Silvino T. Pampilo, Jr. issued an Order dated November 15, 1993 (Exh. "A") setting the election of directors/officers of LARAD Inc. on November 23, 1993, and creating an election committee composed of two representatives from each of the two groups and Barangay Chairman Manuel Mira, of that barangay, as chairman thereof. The election scheduled on November 23, 1993 was not held because the said two groups submitted two different lists of members and the election committee encountered problems as to who should be allowed to vote. Chairman Manuel Mira referred the matter to Atty. Pampilo per letter dated January 4, 1994 (Exh. "B"). Atty. Pampilo issued an Order dated January 11, 1994 (Exh. "C") directing the said Election Committee to hold the election on January 16, 1994 and reminding the two groups to abide by the result of the election. Said election was actually held on January 16, 1994, despite the opposition of the Modrigo group (Exh. "G"), supervised by Chairman Manuel Mira who made a written report of the results to Atty. Pampilo (Exh. "H") indicating that petitioners are the duly elected members of the Board of Directors of LARAD. Inc. In that, election, Chairman Mira allowed those whose names appear in the lists submitted by both groups, to vote. On January 18, 1994, the Respondents held their own election and elected themselves into office, in total disregard of their compromise agreement (Exhs. "0" and "0-1") and in contravention of the Orders dated November 15, 1993 (Exh. "A") and January 11, 1994 (Exh. "C"). The issue to be resolved is, which election is valid, the one held on January 16, 1994 or the one held on January 18, 1994. As correctly pointed out by the petitioners, it is the election held on January 16, 1994 that is valid, because it is the one called or ordered by the Commission after the petitioners and respondents agreed to hold an election and abide by its results. When respondents held an election on January 18, 1994 to elect their own officers they took the law into their own hands. This cannot be allowed. What they should have done, if they were not satisfied and/or would want to question the election held on January 16, 1994, was to have filed a case and/or election protest before the Commission. prLL WHEREFORE, judgment is hereby rendered declaring the election on January 16, 1994 as valid; and petitioners are the duly elected directors/officers of LARAD, Inc. However, petitioners are directed to call an election of the members of the board of directors/officers within forty five (45) days from receipt hereof. SO ORDERED. (SGD.) MACARIO P. MALLARI Hearing Officer