Park Inn, Inc., et al. vs. John Green

[SEC-SICD * CASE NO. 12-97-5839. November 22, 1999.] PARK INN, INC., ET AL. , complainants , vs . JOHN GREEN , respondent . D E C I S I O N This is an action to direct respondent to surrender the possession, management and control of Park Inn, Inc. to complainants with a prayer for the issuance of a temporary restraining order and writ of preliminary injunction, and to render, an accounting with damages. Despite service of summons and voluntary appearance of respondent's counsel during the hearing on the application for the issuance of a temporary restraining order/preliminary injunction, respondent failed to answer the complaint within the reglementary period. Accordingly, on January 30, 1998, complainants filed a Motion to Declare Respondents in Default. On February 4, 1998, respondent was restrained from exercising further possession, management and control of Park Inn, Inc. and the hotel establishment. On February 17, 1998, respondent filed an Opposition to the Motion to Declare Respondent in Default with Motion To Dismiss. On March 23, 1998, the Motion To Dismiss was denied; respondent was, in the same order, declared in default, and complainants were directed to present evidence ex-parte. Having denied respondent's Motion To Dismiss and his opposition to the declaration of default, respondent's counsel filed a Motion For Intervention on behalf of Ellen Baston, Perlita Quitoriano and Ronald Cortez. Movant-intervenors alleged that they are the previous stockholders of subject corporation. They pointed out in their motion that they filed a criminal case individually against herein complainants Ernesto de los Santos, et al. for qualified theft and estafa thru falsification of public document before the prosecutor's office of Angeles City. Complainants in the case at bar, in their comment and opposition to the motion for intervention, submitted a copy of the resolution of the City Prosecutor of Angeles City dismissing the criminal complaint filed by the movant-intervenors against herein complainants Ernesto de los Santos, et al. For lack of merit, this Hearing Officer on October 12, 1998 likewise dismissed the Motion For Intervention of Gaston, et al, as well as their Motion for reconsideration on May 4, 1999. Thus, complainants' evidence presented ex-parte in the main case may now be considered. prcd During the presentation of evidence ex-parte, complainants' counsel adopted as evidence-in-chief those presented during the hearing on the provisional relief prayed for. Complainant de los Santos testified that he and the other complainants are the majority stockholders of Park Inn, Inc. with the following number of shares: Stockholder No. of Shares Ernesto de los Santos 1,000 (Exhibit "B") Francis Beltran 500 (Exhibit SC") Arsenio R. Alagos 250 (Exhibit "D") Shalee Sacabin 250 (Exhibit "E") Respondent John Green is also a stockholder holding 500 shares of stock. De los Santos further testified that they were duly elected as Board of Directors and Officers of Park Inn, Inc. in a special stockholders meeting called for the purpose on May 22, 1997; that respondent John Green refused to turn over control, possession and management of the business establishment despite demand by the complainants; that respondent similarly refused to turn over corporate documents that are in his possession and to render an accounting therefore, for which reason, complainants suffered damages. Considering that the complainants by substantial evidence have established the allegations in the complaint, this office rules in favor of the complainants and against respondent John Green. WHEREFORE, judgment is hereby rendered: 1. Ordering respondent and all persons acting in his behalf to surrender and/or turn over the management and control of Park Inn, Inc. in favor of complainants Ernesto delos Santos, Arsenio Alagos, Francis Beltran and Shalee Sacabin. 2. Ordering respondent to surrender and/or turn over the possession of the premises, documents and other papers of Park Inn, Inc. to complainants. 3. Ordering respondent to render an accounting on the corporate income of Park Inn, Inc. 4. Ordering respondent to pay complainants exemplary damages in the amount of Ten Thousand (P10,000.00) Pesos. No pronouncement as to costs. SO ORDERED. (SGD.) NATIVIDAD P. QUERIJERO Hearing Officer