Samahang Magkakapit-Bahay ng 86 Kaingin Road Quezon City v. Baltazar

[SEC-SICD * CASE NO. 06-94-4798. May 11, 1995.] SAMAHANG MAGKAKAPIT-BAHAY NG 86 KAINGIN ROAD, QUEZON CITY, ET AL. , complainants , vs . RENATO BALTAZAR, ET AL. , respondents . O R D E R In their Motion to Dismiss dated July 14, 1994, respondents claimed that complainant has no capacity to sue and is not a party-in-interest and this Commission has no jurisdiction over the case for it involved neither inter-corporate nor intra-corporate disputes considering that Spouses Claudio Arquiza and Nievas Arquiza are not anymore members of the Samahang Magkakapit-Bahay ng 86 Kaingin Road, Quezon City, Inc. In their opposition dated August 19, 1994, complainants averred that the instant case is a derivative suit instituted by a member on behalf of the corporation. As such, the suing member of the corporation is regarded as a nominal party with the corporation as a real party in interest. This Hearing Officer finds for the respondents. A perusal of the complaint disclosed that complainants have failed to allege with particularity in the complaint the efforts, if any, made by them to obtain the action they desire, or the reason for not making the effort before filing this derivative suit. This is fatal to the complaint. ( Rule III, Section 5, Revised Rules of Procedure in the Securities and Exchange Commission, as Amended). WHEREFORE, the respondents' Motion to Dismiss is hereby granted, and the herein case is hereby DISMISSED. SO ORDERED. (SGD.) ELPIDIO S. SALGADO Hearing Officer