La Vista Association, Inc. v. LFS Enterprises, Inc.

[SEC-SICD * CASE NO. 06-94-4817. March 1, 1995.] LA VISTA ASSOCIATION, INC. , complainant , vs . LFS ENTERPRISES INC. AND LORETO F. STEWART , respondents . D E C I S I O N This is a complaint filed by La Vista Association, Inc., a homeowner's association duly organized and registered with this Commission, against two (2) members of the homeowner's association for collection of membership dues, garbage service fee and interest. After the initial hearing, which was scheduled to exhaust all avenues for settlement and inspite of service of summons on the respondents, Respondents LFS Enterprises, Inc. and Loreto F. Stewart failed to appear on the scheduled date and time, and to file an Answer within the reglementary period. Upon motion by the complainant therefore, the Commission declared the Respondents "In default" and allowed complainant to present evidence ex-parte. Complainant presented Sylvia Reyes, Treasurer of the Association, Julian Aggravante, the Accountant of the Association and Conrado Benitez II, the President of the Association. The testimonies of Complainant's witness centered on the authority and powers vested in the Board of Governors of the Complainant in imposing and collecting membership dues, garbage service fees and interest. Furthermore, Complainant presented in evidence the Articles of Incorporation (Exhibits "A" to "A-4", Exhibits "C" and "D") and By-Laws (Exhibits "B" to "B-9"), of the Association and Minutes that were adopted by the Board of governors (Exhibits "E" to "E-3") imposing and charging reasonable interests on delinquent members of the Association. On the other hand, to prove that the Respondents are members of the Association, Complainant presented a letter from Respondent Loreto F. Stewart (Exhibit "G") requesting the Association to charge the membership dues of the said properties separately, since the subject property had been subdivided and titled in the name of Respondent LFS Enterprises, Inc. Furthermore, Complainant showed that the Respondents had previously acknowledged their obligation to the Association by previously paying the latter the dues on the said properties (Exhibit "L" Official Receipt No. 15816 dated February 24, 1994). LLjur The records also show that for some reason only known to the Respondents, payments of membership dues and garbage service fees were interrupted and not paid. The President of the Association however, testified that payments were subsequently made by the respondents after the case at bar had been filed and was being tried. Such payments were accordingly applied by the Complainant's own admission as shown in their latest Statement of Account, attached to its Memorandum, the obligation of the Respondent as of the first quarter of 1995 was down to PESOS SEVENTEEN THOUSAND EIGHT HUNDRED SEVENTY-FOUR AND 93/100 (P17,874.93). From all indications, therefore, there is no doubt that the Complainant Association is clothed with authority to impose on its members membership dues, garbage fees and interest in case of failure by its members to pay when the same fall due; while its members have the corresponding obligation to pay the membership dues, and garbage fees when due. Moreover, Respondent are in estoppel to claim that there is no obligation to pay the Association considering that previous payments were made and continued to be made even during the trial of the case at bar. PREMISES CONSIDERED, this Commission is inclined to grant the reliefs prayed for by the Complainant in its Complaint, and accordingly, orders Respondents, jointly and severally to pay Complainants membership dues, garbage service fees and interest accumulated and due for the first quarter of 1995 in the amount of PESOS SEVENTEEN THOUSAND EIGHT HUNDRED SEVENTY-FOUR AND 93/100 (P17,874.93); to pay subsequent membership due and garbage fees promptly when they fall due and to pay the Association, the amount of PESOS TWENTY THOUSAND (P20,000.00), as and by way of attorney's fee and costs of suit. prLL SO ORDERED. (SGD.) EDUARDO P. BAROT Hearing Officer