Petitioners are the entitled for reimbursement, interest and attorney’s fees

FIL-ESTATE PROPERTIES V SPOUSES GO  Should be noted that the respondents sent a demand letter Aug 8, 1999 asking
GR NO 165164 the return of the amount they paid.
 Where petitioner did not comply favorably.
FACTS:
 Petitioner Fil-Estate entered in a contract to sell a condominium unit with the Petitioners are entitled to:
respondent Spouses Go for 3M  P3,439,000.07 at 6% interest starting August 4, 1999 until full payment, and
 Hence, the petitioner failed to develop the condominium project on time, to pay respondents P100,000.00 attorneys fees.
which should have been in 1997 as stipulated in the contract.
 The spouses then demanded for a refund plus interest, but the respondent did
not refund the spouses.
 The spouses then filed a complaint before the Housing and Land Use
Regulatory Board (HLURB) for reimbursement of the lump sum amount they
paid plus attorney’s fees.

The petitioner’s defense:

 Respondents have no cause of action against them since the delay in
construction was due to a fortuitous event- the Asian financial crisis, over
which they have no control.

HLRUB rendered decision: in favor of the respondent spouses:

 Ruled that the Asian Financial Crisis that resulted in depreciation of peso is
not a fortuitous event.
- As any change in the value of peso is a daily occurrence which are
foreseeable and can be avoided.
 They failed to fulfill their contractual obligations with the spouses. The
spouses may either ask for the fulfillment of the obligation or recission of the
same with damages.

Office of the President and the Court of Appeals, affirmed the decision of HLURB:
 CA added that the rights of the respondents is provided for in PD 957

ISSUE: WON the Asian Financial crisis can be considered a fortuitous event.

HELD:

 The court cannot agree that the Asian Financial crisis that happened in 1997
was unforeseeable and beyond the control of the corporation.
 Being a real estate enterprise engaged in selling condominiums they are to be
considered as masters in the projections on commodities, currency
movements and business risks.
 The fluctuations of the Philippine peso is an everyday happening therefore it
cannot constitute a caso fortuito or fortuitous event.