Florencio Alonzo vs. Carlaville Subd., Inc.

[SEC-SICD * CASE NO. 2481. July 15, 1986.] FLORENCIO ALONZO , complainant , vs . CARLAVILLE SUBD., INC., MODESTA ORTIZ, in her capacity as President, et al. , respondents . D E C I S I O N This refers to a complaint filed by Florencio B. Alonzo against Carlaville Subdivision, Inc., Modesta Ortiz and Erica Brandes, alleging among other things, that in December, 1976 upon payment of P2,000.00 in cash by petitioner unto respondent Corporation, they entered into a joint venture contract and in consideration thereof, the respondent corporation issued in favor of petitioner a joint venture bond certificate with due date of maturity on December 16, 1981 and with Bond No. 0071; that in January, 1977, upon payment by petitioner of the sum of P2,411.00 petitioner entered into a joint venture contract with said corporation in consideration of which respondent corporation issued a joint venture bond certificate with due date of maturity on February 1, 1982 bearing Bond No. 0101; and, that in May, 1977, again petitioner entered into another joint venture contract with respondent corporation upon payment of P2,000.00, in consideration of which respondent corporation issued in favor of petitioner a joint venture bond certificate bearing Bond No. 0218 with due date of maturity on February 1, 1982. Petitioner moreover claimed that immediately after the maturity of those joint venture bonds, he offered to surrender said bonds and demanded payment from respondent corporation of the total amount paid plus earnings of 14% per annum, but the said corporation refused to effect said payments and despite several demands made by him, respondent corporation failed and refused to make payment. Petitioner thus prayed that after the hearing, an Order be issued directing respondents to pay and deliver to petitioner the sum of his investments totalling to P6,411.00 plus 14% interest per annum computed from the date of issuance of each bond until the date of maturity in each particular case, plus legal interest or the total amount due and demandable computed from the date of maturity of each bond until totally paid. On July 26, 1983, respondents Carlaville Subdivision, Inc. and Modesta Ortiz filed their Motion to Dismiss on the grounds of lack of jurisdiction and lack of cause of action. On July 28, 1983, petitioner filed his Motion with Leave of Court to Admit Amended Complaint, which motion was granted by the Commission in the Order dated August 1, 1983. On September 15, 1983, petitioner filed his formal opposition to respondents' motion to dismiss. On October 19, 1983, respondents submitted their written Reply to petitioners' formal Opposition. prLL In the Order, dated November 24, 1983, the Commission denied respondents' motion to dismiss and thereafter set the case for preliminary (pre-trial) conference hearing, with the filing by respondents of their written answer. After the preliminary conference hearing, the Commission scheduled the case for trial on the merits. On November 14, 1984, complainant submitted his formal Offer of Evidence, to which offer respondents filed their objection and/or comments, after which the Commission resolved to admit complainants' offer of evidence. On October 28, 1985 respondents filed their written offer of exhibits. Thereupon, petitioner filed their comments/objection to said offer of exhibits dated October 29, 1985. In the Order dated November 14, 1985, the Commission had ruled to admit respondents' exhibits. Thereafter, the Commission set the case for presentation of complainant's rebuttal evidence as well as, respondents' sur-rebuttal evidence, after which the case was deemed submitted for decision. Upon careful perusal of the evidence adduced as well as, the records of the case at hand, the Commission finds that complainant first entered into an investment agreement with the respondent corporation on December 10, 1976, whereby the former invested the sum of P2,000.00, with the maturity date on December 16, 1981, the principal sum to earn fourteen (14%) per centum interest from the date of maturity and a guaranteed interest of 14% per annum on Cash Paid-in; that again on March 7, 1977 and May 11, 1977 complainant invested the sum of P2,411.00 and P2,000.00 respectively, with respondent corporation under the same terms and conditions as above-stated; that herein complainant was issued the corresponding Joint Venture Contract (Bond), certificates of Investment and also official receipts; that after the lapse of five (5) years as agreed upon, complainant proceeded to the office of respondent corporation and manifested his desire to withdraw his money; and, that notwithstanding compliance with the requirements and despite repeated demands made by complainant for the return of his investment and the interest thereon respondent corporation failed to fulfill his commitments/obligations. Respondent's primary obligation under the facts is clear and unequivocable. Having been authorized by the Commission to sell and offer its securities to the public in the form of "Joint Venture Bond," respondent corporation is obliged to honor its commitments to the investing public, that is to pay or refund the total amount of principal paid-in plus 14% earned interest, upon demand of the participant/planholder at the date of maturity, within the period of five (5) years computed from the date of the issuance of the bond. For its failure to comply therewith without justifiable ground, respondent corporation as well as the individual respondents herein are therefore liable to the complainant herein. cdll WHEREFORE, judgment is hereby rendered in favor of complainant and against respondents, ordering the latter to return to Florencio Alonzo the total sum of P6,411.00 with 14% interest from the date of the issuance of the bonds with legal interest from the date of the filing of the instant case. SO ORDERED. (SGD.) ANTERO F. L. VILLAFLOR, JR. Hearing Officer