Buhain v. Santos

[SEC-SICD * CASE NO. 3998. February 19, 1996.] LINO BUHAIN AND ERLINDA SIOSON , petitioners , vs . LUISITO SANTOS, ET AL. , respondents . D E C I S I O N This is a petition filed by Lino Buhain and Erlinda Sioson against Luisito Santos, Corazon Valle and Victoria Guillermo for disqualification and annulment of their election as members of the Board of Directors of Malabon Fish Brokers Association, Inc. on the ground that they are not members of the Association with a prayer for the issuance of a restraining order and/or preliminary injunction to enjoin the respondents from performing or discharging the duties and functions as officers of the association. In support of their petition, petitioners alleged, inter alia, that they are members of the Board of Directors of Malabon Fish Brokers Association, Inc.; that petitioners Lino Buhain and Erlinda Sioson have been the President and Treasurer of the Association respectively, since 1988 up to November 1990; that petitioners were the respondents in SEC Case No. 2521 entitled Marcos Valle, et al., petitioners versus Lino Buhain, et al., respondents which, among other, involve the issue of who were the legitimate members and officers of the Association; that on May 8, 1987, this Honorable Commission through Hearing Officer Rolando Malabonga rendered its decision declaring thirty five (35) persons as members of the Malabon Fish Brokers Association, Inc. as follows: 1. Angelina C. Alcantara 19. Rosalinda Reyes 2. Ernesto Aquino 20. Valentin F. Ronquillo 3. Araceli Banaag 21. Ernesto S. Santos 4. Bidang Bautista 22. Virgilio Sarmiento 5. Gener Bautista 23. Edgardo Serna 6. Lino R. Buhain 24. Primitivo Serrano 7. Remedios Cacnio 25. Felix Siochi 8. Dominador G. Cruz, Jr. 26. Erlinda G. Sioson 9. Jose V. Cruz 27. Florescinda Loyangco 10. Maria Cruz 28. Billy Symaco 11. Renato Cruz 29. Norma Symaco 12. Eduardo R. Del Rosario 30. Rody Symaco 13. Ernesto F. Del Rosario 31. Danilo Tiangco 14. Constantino Lopez 32. Marcos C. Valle, Jr. 15. Ramon L. Luna 33. Marcos A. Valle III 16. Rosa Mendoza 34. Rogelio A. Vicente 17. Danilo Olivares 35. Rufino C. Vicente 18. Juanito Olovida that the said decision was affirmed on appeal by this Honorable Commission en banc with its decision dated November 2, 1988 and by the Court of Appeals in its decision dated May 31, 1990; that according to the said decision and the By-Laws of the Association, the membership must first decide to accept new members, the Board of Directors must formulate rules and regulations and provide additional qualifications for membership, an individual applicant must qualify and have his membership approved by a majority of the original thirty five (35) members of the Association; that from the time the said decisions were promulgated up to the present, the general membership of the Association has not resolved to admit new members; the Board has not formulated rules and regulations and additional qualifications for new members; that no new members has been accepted into the Association in accordance with the provisions of its By-Laws as interpreted by this Honorable Commission and the Court of Appeals; that on November 27, 1990 respondents were elected as members of the Board of Directors of the Association and respondent Luisito Santos was in turn elected as President by the Board of Directors despite the fact that they are not members of the Association and disqualified to be such directors and officers. prcd Acting on the verified petition, this Commission on May 17, 1991, issued a Restraining Order enjoining the respondents from acting as and discharging the functions of members of the Board of Directors and for the respondent Luisito Santos, also as president of Malabon Fish Brokers Association, Inc. On May 23, 1991, a hearing on the injunction was conducted wherein petitioners presented testimonial and documentary; evidence. Respondents, however, manifested in open court that they are not presenting evidence instead they would file a written opposition to petitioners application for the issuance of the writ of preliminary injunction. On May 24, 1991, respondents filed their Motion To Dismiss and Opposition To Petitioners Application For Writ Of Preliminary Injunction. After petitioners filed their Opposition to the Motion To Dismiss on August 13, 1991, this Commission on September 2, 1991 issued an Order denying the respondents' Motion To Dismiss. Likewise on 13 September 1991, an Order was issued granting the petitioners prayer for the issuance of the writ of preliminary injunction. On March 9, 1992, upon formal motion of the petitioners, this Commission issued an Order declaring respondents in default for failure to file their answer within the reglementary period. Ex-parte hearing was conducted on March 17, 1992 wherein petitioners adopted all the evidence (Exh. "A", "B" and "C"), presented by the petitioners at the injunction incident to support their allegations in the petition. After consideration of the evidence on hand, it appears to the satisfaction of the Commission that petitioners were able to prove the material allegations of the petition. WHEREFORE, judgment is hereby rendered: 1. declaring respondents not a member of the Malabon Fish Brokers Association, Inc. and therefore not qualified to be elected as directors and officers of the association; 2. declaring the writ of preliminary injunction issued on September 20, 1991 against the respondents permanent. No pronouncement as to cost and attorney's fees. LLjur SO ORDERED. (SGD) JUANITO B. ALMOSA, JR. Hearing Officer