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PRLNCE Tower Condominlum Corp. vs. Manuel B. Salvano

SEC-SICD Case No. 10-97-5783 • Securities and Exchange Commission Departments • Securities Investigation and Clearing Department (SICD) • Jun 8, 1999

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[SEC-SICD * CASE NO. 10-97-5783. June 8, 1999.] PRlNCE TOWER CONDOMINlUM CORP. , complainant , vs . MANUEL B. SALVANO , respondent . D E C I S I O N This is a complaint for the collection of association dues and other assessments filed, by Prince Tower Condominium, Inc. against Manuel B. Salvano. Complainant is a non-stock, non-profit corporation with principal office at ASB Center, 114 Benavidez St., Legaspi Village, Makati City. The records show that summons was validly served upon respondent herein on October 10, 1997. Respondent then asked that he be given until November 11, 1997 within which to file his answer as he has yet to acquire the services of a lawyer; which request was granted by this Hearing Officer in an Order dated October 30.1997. On March 3, 1998, complainant filed a Motion to Declare Respondent in Default as respondent has not yet filed its answer; which Motion, was granted in an Order dated March 11, 1998. Complainant was thus allowed to present its evidence ex-parte on April 14, 1998. On April 14, 1998, this Office received a Motion to Lift (Order of) Default with Motion to Dismiss filed by respondent. Both Motions were denied in an Order dated May 20, 1998. The said resolution became final when respondent did not file any motion for reconsideration; and. thus, petitioner was allowed to present evidence ex-parte. The facts of the case as culled from evidence presented are as follows: Respondent Manuel B. Salvano purchased a condominium unit (unit 206) located at Prince Tower Condominium ("Condominium") from ASB Realty Corporation on March 20, 1987 (Exhs. "A" to "A-8") and has fully paid the price therefor on April 11, 1997 (Exh. ' B"). Respondent likewise accepted the turn over of Unit 206 of the Condominium. Assessment were thus made upon respondent herein in accordance with the articles of incorporation, by-laws and Master Deed of the Condominium (Exhs. "C" to "C-4", "C-2"-A, "D" to "D-1", "D-8-a", "E" to "E-20" and "E-11-a"). All of these assessments and the resultant penalties for non-payment or late payment were for the purpose of "establishing and maintaining a special fund for capital expenditures on the common areas of the project including the cost of extraordinary repair, reconstruction or restoration necessitated by damage, depreciation, obsolescence, expropriation or condemnation as well as the costs of improvements or addition thereto authorized in accordance with Article V . . ." of the by-laws (Exh. "D-8-a"). That being the case, the total obligation of respondent herein according to his Statement of Account amounted already to NINETY-NINE THOUSAND EIGHT HUNDRED FIVE PESOS and FIFTY-THREE CENTAVOS (P99,805.53) covering the period December 5, 1999 to June 5, 1998 (Exhs. "F" to "F-8"). This obligation by way of association dues and water bills was testified to and documents presented therefor (Exhs. "F" to "F-8") were identified by Ms. Delia Hernandez, junior supervisor of ASB Realty Corporation; whose duty includes that of monitoring and collecting such dues from unit owners of the Condominium. She likewise testified that despite demand, respondent has failed to pay these outstanding obligations. The lone issue; therefore, to be resolved is whether or not respondent is liable for this obligation and/or the obligation to pay assessments to the Condominium corporation. This Office rules in the affirmative. As purchaser, and while he is a unit owner, respondent became subject to the terms and conditions of the complainant's articles of incorporation, by-laws and master deed in the exercise of his rights and interests in the unit so purchased. Respondent's property rights are laden with obligations spelled out in the Contract to Sell (Exhs. A" to "A-8") as well as the fact that the Condominium Act (R.A. 4726) is read into valid contracts of this kind. r Thus, by freely signing the Contract to Sell, without force, intimidation or sleight of hand being exercised upon him, respondent freely consented to assume the obligation and risks that goes with the privilege of being a condominium unit owner particularly of being one in Prince Tower Condominium, Inc. This Office has no other function than to remind him of such fact and to enforce the same should he fail in his obligations and duties. WHEREFORE, for the foregoing considerations, JUDGMENT is hereby rendered against the respondent DIRECTING him: 1. To pay the complaint the sum of NINETY-NINE THOUSAND EIGHT HUNDRED FIVE PESOS and FIFTY-THREE CENTAVOS (P99,805.53) covering the period December 5, 1995 to June 5, 1998 with the corresponding penalty of FOUR PERCENT (4%) per month should non-payment thereof still exist, plus whatever monthly association dues and relative sum which may receive until full payment thereof, in accordance with the Master Deed, Articles of Incorporation and By-laws of complainant corporation; and 2. To pay the sum of TWENTY-FIVE THOUSAND PESOS (P25,000.00) to complainant as and by way of Attorney's Fees. No pronouncement as to costs. CSTDEH SO ORDERED. (SGD.) S. ROBERTO. SENCIO, JR. Hearing Officer

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