Maralit v. Llamado

[SEC-SICD * CASE NO. 03-94-4726. February 17, 1995.] ARSENIO P. MARALIT , petitioner , vs .CRISPIN LLAMADO, ET AL. , respondents . O R D E R For resolution is respondent Crispin Llamado's Motion To Dismiss, the opposition, the reply to the opposition as well as the rejoinder thereto. dctai Movant's motion to dismiss is anchored principally on the ground that the Commission does not have jurisdiction over the subject matter or the nature of the suit or action. Movant alleged, inter alia, that the Securities and Exchange Commission (SEC) has no jurisdiction over the subject of the action as the proper forum is the Home Insurance Guaranty Corporation (HIGC). By virtue of Executive Order No. 535 and settlement of Intra-corporate dispute, SEC's jurisdiction on the same had been transferred to HIGC. In opposing the motion to dismiss, petitioner claimed that Executive Order No. 535 (E.O. 535, for brevity) did not confer to the HIGC exclusive jurisdiction over the subject matter of the complaint; that the SEC and HIGC have concurrent jurisdiction and, upon the filing of this complaint, the SEC acquired jurisdiction over the subject matter of complaint, to the exclusion of the HIGC; that E.O. No. 535, as amended by E.O. No. 90, did not deprive SEC of its jurisdiction over the subject matter of the complaint, the repeal being, at merit, an implied repeal. In his reply to the opposition, respondent Crispin Llamado averred, that there is nothing in that law that needs interpretation. Rep. Act No. 580, as amended by E.O. No. 535 is clear and transparent in its legal intention. The HIGC, formerly known as the Home Financing Corporation, shall "exercise all the powers, authorities and responsibilities that re vested on the SEC with respect to homeowners associations, the provision of Act 1459, as amended by P.D. 902-A, as amended, to the contrary notwithstanding . . .", negates any notion that SEC could continue to exercise jurisdiction over homeowners associations. In his reply, petitioner maintained that E.O. No. 535 having worked a grant of powers without commanding a transfer of powers, cannot be said to have taken jurisdiction over homeowners' association from the SEC; E.O. 535 did not state that the SEC shall cease to exercise the powers and authorities that have been granted to the HIGC, and that the use of the clause "the provision of Act 1459, as amended by P.D. No. 902-A, to the contrary notwithstanding (1) "In E.O. No. 535 simply means that the jurisdiction over homeowners" associations which P.D. No. 902-A conferred upon the SEC is no longer exclusive, but is now shared with the HIGC. After considering the allegations and arguments of the parties, this Hearing Officer finds and so holds that the ground relied upon by the respondent is meritorious. Bel-Air Village Association, Inc. is a homeowners association within the contemplation of Executive Order No. 535, series of 1979, Section, which states: "a. To require submission of and register articles of incorporation of homeowners association and issue certificates of incorporation/registration, upon compliance by the registering associations with the duly promulgated rules and regulations thereon; maintain a registry thereof; and exercise all the powers, authorities and responsibilities that are vested on the Securities and Exchange Commission with respect to homeowners association, the provision Act 1459, as Amended by Presidential Decree No. 902-A, to the contrary notwithstanding; b. To regulate and supervise the activities and operations of all homeowners association registered in accordance therewith." and under the Home Insurance and Guaranty Corporation Revised Rules on Regulation of Homeowners Associations which took effect on February 1, 1990, which states: "SECTION 1. Meaning . Unless otherwise clearly indicated the following shall mean: a. ... b. Homeowners Association (HOA) is any housing or community association composed primarily of present and/or future homeowners/awardees/ occupants of private or government housing project, subdivision and urban estates organized for the purpose of facilitating the delivery of adequate housing, social and other related services to improve the quality of life of its members; c. Homeowners/Awardees refers to: 1. the legal owners or present or future awardees and/or actual occupants of housing units in a private or government housing project, subdivision or urban estate, or ii) beneficiaries of the Community Mortgage Program (CMP),or iii) members of any association organized for the primary purpose of homeownership who have met all the qualifications and none of the disqualifications set forth by the Articles of Incorporation, By-laws or rules and regulations of such housing projects, subdivisions housing estates or association." and, therefore, and as correctly pointed out by respondent Crispin Llamado, is under the exclusive jurisdiction of the Home Insurance and Guaranty Corporation. WHEREFORE, let this case be, as it is hereby, DISMISSED for lack of jurisdiction. SO ORDERED. (SGD.) MACARIO P. MALLARI Hearing Officer