Professional Documents
Culture Documents
Plaintiff,
Defendant.
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COMPLAINT
b. Two Hundred Fifty Square Meters (250 sq.m.), more or less, of the
second floor of the Building at a rental rate of One Hundred Eighty
Thousand Pesos (P180,000) per month;
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15 October 2016 007086766 70,000.00
007086783 180,000.00
15 November 2016 007086767 70,000.00
007086784 180,000.00
Total P 1,000,000.00
12. Thus, all the post-dated checks issued and delivered by defendant
were to stand as payment only for monthly rent and as security deposit.
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13. On 30 July 2015, defendant again requested for the amendment of
the Contracts. This time, to shorten the term of the Contracts and delay its
commencement to 01 August 2015, instead of 15 July 2015.
14. Plaintiff accommodated defendant for the third time, despite the fact
that the Contracts have already been signed and executed for almost two (2)
months already.
15. It must be noted that the post-dated checks issued by the defendant
upon the signing of the Contracts coincide with his subsequent requests to
remove the advance rental and shorten the period to fifteen (15) days. It is as if
he planned to avoid payment of the advance rentals and the fifteen (15) day
period even before the execution of the Contracts.
16. Starting August 2016, defendant, with malice and ill-will, ordered the
Stop Payment on the Subject Checks.
18. On the 30 July 2015 letter, plaintiff reminded him that he should
remove the staircase he introduced and return the Leased Premises in its original
condition upon termination of the Contracts. On said letter, defendant agreed
that should plaintiff be forced to do such works, the cost of which shall be
deducted to his security deposit.
19. As such, knowing that defendant will not get the full amount of his
security deposit, he opted, with bad faith, to deprive plaintiff of what is due to it.
20. In view of this, plaintiff caused the sending of Notices to Vacate and
Pay to defendant on three (3) different occasions.
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23. On 23 May 2017, plaintiff caused a final demand for payment within
five (5) banking days against defendant. Defendant after personally receiving this
final demand immediately read the same.
24. Thereafter, plaintiff’s lawyers also caused the sending of the final
demand by registered mail and private courier.
A copy of the final demand with attached registry and official receipts is
attached as Annex F.
26. Defendant, with malice, has no intention of paying for his rental
arrears. He even denied his identity just to escape liability.
30. Even after defendant refused to pay his rent starting August 2016,
plaintiff did not disturb defendant’s possession until ______________. It is now
incumbent upon defendant to pay his rental obligations without any delay.
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Nakpil vs. Manila Towers Development Corporation, G.R. No. 160867 & 160886, September 20, 2006.
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Article 1170. Those who in the performance of their obligations are guilty of fraud, negligence, or delay
and those who in any manner contravene the tenor thereof, are liable for damages.
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32. Defendant breached its contract when it failed to observe its
obligation under Clause 3 of the Contracts. While it is true that he already
delivered post-dated checks upon the signing of the Contracts, as required under
said Clause, he ordered the “STOP PAYMENT” of these post-dated checks and
blatantly refused to replace the dishonored checks or to even make arrangements
for its payment despite several notices and demands.
34. Defendant enjoyed the use of the Leased Premises from August 2016
to ___________. He also earned conducting his business on the Leased Premises
but refused to pay rent to plaintiff.
38. Under Article 1956 of the Civil Code, no interest shall be due unless it
has been expressly stipulated in writing. Clause 19, par 1 of the Contracts provide:
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premises and recover all amounts due as rentals and
interest thereon at the rate of two (2%) percent per
month from the date of default until full payment.
(emphasis supplied)
39. Parties are free to stipulate any terms and conditions in its contracts
as long as they are not contrary to law, moral or good customs.4 Consequently,
Clause 19 of the Contracts is valid and binding.
44. Article 2226 of the Civil Code expressly allows the inclusion of the
payment of liquidated damages in a contract in case of breach thereof. The
Supreme Court in Atlantic Erectors, Inc. vs. Court of Appeals and Herbal Cove
Realty Corporation,5 further explained that stipulation for liquidated damages is
made to ensure performance.
4
Article 1306 of the Civil Code.
5
G.R. No. 170732, October 11, 2012.
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46. The foregoing allegations are repleaded by reference.
49. To reiterate, Article 1306 of the Civil Code expressly allows parties to
agree on stipulations and terms as they may deem convenient, provided they are
not contrary to law, morals, good customs, public order, or public policy.
Consequently, Clause 19 of the Contracts is valid and binding.
53. Defendant is guilty of fraud and was in bad faith when he made the
plaintiff believed that he is willing to pay for rent when he delivered the post-
dated checks when he at the onset planned to stop its payment for the last four
(4) months and never bothered paying for it.
54. The fact of fraud is evident on the foregoing facts: (a) the post-dated
checks delivered simultaneously with the signing of the Contracts were
incomplete; (b) he eventually negotiated to remove the advance rental
requirement; (c) again asked for the amendment of the term and shorten it to
fifteen (15) days to match the amount he issued on the checks; (d) defendant
purposely ordered the STOP PAYMENT of his last four (4) checks to ensure that his
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whole security deposit will be returned despite the fact that major works are
needed to be done at the Leased Premises after the termination of the Contracts;
and (e) he ignored all the demands of the plaintiff including the subpoenas of ACP
Bacolor.
58. Defendant’s evident bad faith and intention to defraud the plaintiff
can further be deduced in their continued failure to settle his outstanding
6
Uy vs. People of the Philippines, G.R. No. 174899, September 11, 2008, citing Sim, Jr. vs. Court of Appeals, G.R.
No. 159280, May 18, 2004.
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obligations. It should be noted that plaintiff afforded the defendant several
occasions to settle their obligation, as seen by several demand letters sent by
plaintiff to defendant, but defendant just ignored it.
59. This action for sum of money is based upon genuine documents,
therefore, a sufficient cause of action exists owing to defendant’s failure to settle
its contractual obligation.
RELIEFS
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e. Costs of suit.
___________________
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VERIFICATION AND CERTIFICATION
3. I have read and understood all the allegations therein which are true
and correct of my own personal knowledge and based on available authentic
records;
______________
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