REPUBLIC OF THE PHILIPPINES

REGIONAL TRIAL COURT

7th Judicial Region
Branch 7
Cebu City

PENSHONE INC.,
Plaintiff

-versus- CIVIL CASE NO.112233

FOR: Specific Performance with
Damages
YUNGCHOW CORP.,
Defendant.
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COMPLAINT
COMES NOW, Plaintiff represented by Basha Alonzo, and to this
Honorable Court most respectfully allege, as follows:

1. Plaintiff PENSHONE INC. is a corporation duly organized and

existing for and by virtue of the laws of the Republic of the Philippines with
office address at JDY Building, A.S. Fortuna Street, Mandaue City where they
may be served with summons and other processes of this Honorable Court
hereinafter represented by its VisMin Manager Basha Alonzo per Secretary’s
Certificate hereto attached as Annex “A” and made an integral part hereof;

2. Defendant YUNGCHOW CORP. is a corporation duly organized

and existing for and by virtue of the laws of the Republic of the Philippines
with principal office at TGU Tower, IT Park Cebu City where it may be served
with summons and other processes of this Honorable Court;
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3. Defendant Popoy Cruz is impleaded in his capacity as President

of YUNGCHOW CORP. and the primary person who dealt with PENSHONE
INC.;

4. Defendant Camila Salazar is impleaded in her capacity as the

purchasing officer of Defendant YUNGCHOW CORP. and one of the
personnel handling the transactions with Plaintiff PENSHONE INC.;

CAUSE OF ACTION
5. Plaintiff PENSHONE INC. is corporation engaged in the business
of providing computer services, systems and network administration and
assistance. One of the services Plaintiff provides its clients are the sale of
computer routers to meet the specific needs of its clienteles as well as
installation of said routers and maintenance of the same within the warranty
period;

6. Defendant YUNGCHOW CORP. on the other hand is a technical

support service provider which engaged the services of Plaintiff PENSHONE
INC. for the purchase of AS5350 CISCO Router with the following
specifications, to wit:
- High Density Voice with 2E1, AS5x-PVDM2-64, IP + IOS, AS5350
Dual E1/PRI DRF card
- AS5350 Ser IOS IP PLUS
- AS5350-DFC-2CE1, AS5350 Dual E1/PRI DFC card
- AS535XM-AC-PWR, AS5350XM AC Single Power Supply
- CAB-AC, Power Cord, 110V
- MEM-512M-AS5XM, AS5350XM and AS5400XM 512MB Main
SDRAM
- MEM-128CF-AS5XM and AS4300XM 128M Compact Flashes
- AS5X-FC, AS5000 Feature Card with Six PVDM DSP Module Slots
- 3 Units AS5x-PVDM2-64, AS5000 64- channel Packet voice/Fax
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DSP Module
- CON-SNT-AS5352E1V, 8x5xNBD Svc, AC AS5350 Voice; 2e1, 60
ports, IP + IOS
- Cable Wire

7. On February 2, 2018, Plaintiff PENSHONE INC. submitted to

Defendant YUNGCHOW CORP. a price quotation of the aforesaid AS5350
CISCO Router in the amount of SIX HUNDRED NINETY FOUR THOUSAND FIVE
HUNDRED FIFTY ONE PESOS AND 40/100 (P 694,551.40) for the
abovementioned specification along with the terms of Plaintiff. The said
price quotation and letter was addressed to Defendant YUNGCHOW CORP.
which was conformed to and accepted by Defendant YUNGCHOW CORP. on
February 9, 2018. A copy of the letter conformed to by Defendant is hereto
attached as Annex “B”;

8. On February 18, 2018 Defendant YUNGCHOW CORP. sent a

letter to Brillante Mendoza, Corporate Account Executive of Plaintiff
PENSHONE INC. regarding the purchase order of the AS5350 CISCO Router
with the specifications agreed upon and the amount of P694, 551.40 as the
total consideration. The said purchase order was signed by Defendant
Camila Salazar as Head of the Purchasing and Accounting Department and
noted by Defendant Popoy Cruz as President of Defendant YUNGCHOW
CORP. A copy of the purchase order is hereto attached as Annex “C”;

9. Thus, upon receiving the two notices namely the Conforme

letter dated February 9, 2018 and the Purchase Order dated February 18,
2018 the contract became binding upon herein Plaintiff and Defendants;

10. It bears to stress that in the contract, the delivery of the AS5350
CISCO routers will take about 30-45 workings days from date of receipt of
the Purchase Order which is February 18, 2018 considering the fact that the
said items and equipment are to be shipped by Plaintiff X Incorporated from
abroad;

11. In all good faith, Plaintiff PENSHONE INC. immediately

proceeded to process the shipment of the items purchased by Defendant
YUNGCHOW CORP. and even advanced its own funds to have the items
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shipped and just so it can comply with its commitment and agreement to
deliver the same within 30-45 days. As a sign of goodwill, Plaintiff
PENSHONE INC. even provided Defendant YUNGCHOW CORP. a service unit
of AS5300 for its temporary use pending the delivery of goods despite the
fact that such arrangement was not part of the terms and conditions in the
contract;

12. On March 7, 2018 while the AS5350 items were already en route
to Cebu, Defendant YUNGCHOW CORP. sent a letter to Brillante mendoza,
Corporate Account Executive of Plaintiff PENSHONE INC. telling the latter
that it is canceling the contract without any valid reason and due notification.
A copy of the letter is hereto attached as Annex “D”;

13. On March 13, 2018 Plaintiff PENSHONE INC. informed

Defendant YUNGCHOW CORP. that the items are already enroute and may
no longer be canceled and thus they must comply with their part of the
contract. A copy of the letter is hereto attached as Annex “E”;

14. Upon the arrival of the AS5350, Plaintiff PENSHONE INC.

immediately informed Defendant YUNGCHOW CORP. regarding the items
and that the same were now ready to be delivered and installed as per
agreement in the contract. And that per agreement, Defendant YUNGCHOW
CORP. must tender payment. Defendant YUNGCHOW CORP. refused and
continues to refuse to receive the AS5350 CISCO Routers it has ordered from
Plaintiff PENSHONE INC.;

15. For several occasions, Plaintiff PENSHONE INC. has exerted

earnest efforts to seek performance and compliance from Defendant
YUNGCHOW CORP. on their part of the obligation however, the latter would
even refuse to communicate with Plaintiff PENSHONE INC.;

16. Plaintiff has sent several demand for performance to Defendant

but all have been ignored. Plaintiff PENSHONE INC. through its counsel has
sent demand letters to Defendant but all have been ignored and neither have
they communicated with Plaintiff PENSHONE INC. In short, they have utterly
disregarded with bad faith their obligation and breached the contract they
have entered into with Plaintiff PENSHONE INC. for the purchase of the
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AS5350 CISCO Routers. A copy of the demand letters is hereto attached as

Annexes “F” and “G”;

17. The continued refusal on the part of Defendants YUNGCHOW

CORP., Popoy Cruz and Camila Salazar to perform its obligation which is to
receive the AS5350 CISCO Routers it has ordered and to pay Plaintiff
PENSHONE INC. the agreed purchase price of SIX HUNDRED NINETY FOUR
THOUSAND FIVE HUNDRED FIFTY ONE PESOS AND 40/100 (P 694,551.40)
has caused severe losses to Plaintiff PENSHONE INC. Considering that the
contract is valid between the two parties, and that Plaintiff PENSHONE INC.
has complied with its part of the contract, it is incumbent and imperative on
the part of Defendant YUNGCHOW CORP. to do likewise. Hence, Defendants
YUNGCHOW CORP., Popoy Cruz and Camila Salazar must be compelled to
jointly and severally perform its obligation which is to receive the items
ordered and pay Plaintiff PENSHONE INC. the amount of SIX HUNDRED
NINETY FOUR THOUSAND FIVE HUNDRED FIFTY ONE PESOS AND 40/100 (P
694,551.40) with legal interest of 6% per month from the time of demand
and non-payment, among others;

18. Because of Defendant YUNGCHOW CORP.’s refusal to perform

its obligation and its utter disregard of the contract as well as their
intentional silence despite demands and correspondence from Plaintiff
PENSHONE INC., the latter has suffered losses in the amount of P 200,000.00
which Defendants YUNGCHOW CORP., Popoy Cruz and Camila Salazar must
compensate Plaintiff by way of Nominal Damages;

19. In order to deter other persons from committing such acts of

breach of contract, non-performance of obligation and noncompliance of
agreement validly entered into which is clearly violative of the rights of
individuals and inimical to society, Defendants YUNGCHOW CORP., Popoy
Cruz and Camila Salazar must pay P 200,000.00 by way of Exemplary
Damages;

20. Due to Defendants refusal to comply and perform its obligation

as well as its failure to communicate with Plaintiff despite demand, Plaintiff
PENSHONE INC. was compelled to engage the services of a legal counsel in
order to enforce its rights, claims and file this case before this Honorable
Court. Thus, Plaintiff PENSHONE INC. was made to pay attorney’s fees to
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counsel in the amount of P50,000.00 with appearance fee of P2,000.00 for

every hearing. Therefore Defendants must indemnify Plaintiff for such
Attorney’s fees;

PRAYER
WHEREFORE, premises considered it is most respectfully prayed of
this Honorable Court after due hearing and trial, to render judgment in favor
of Plaintiff PENSHONE INC. and order Defendants YUNGCHOW CORP.,
Popoy Cruz and Camila Salazar to comply with the agreement dated February
9, 2018 and the purchase order issued dated February 18, 2018; to receive
the AS5350 CISCO Routers from Plaintiff X Incorporated; to pay the purchase
price of SIX HUNDRED NINETY FOUR THOUSAND FIVE HUNDRED FIFTY ONE
PESOS AND 40/100 (P 694,551.40) with interest per month from date of
demand and to indemnify Plaintiff X Incorporated the following:

a. Nominal Damages amounting to P 200,000.00;

b. Exemplary Damages amounting to P 200,000.00;
c. Attorney’s Fees amounting to P 50,000.00 and appearance fee
of P 2,000.00 for every hearing.

Such other relief as may be just and equitable in the premises are
likewise prayed for.

Cebu City, Philippines. February 4, 2008.

PENSHONE INC.,
By:
BASHA ALONZO
Assisted by:
ACCE LEGAL CONSULTANCY
Cebu City Tel. No. (032) 236 2812
Email Address acce.legal@gmail.com
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By:

AVE CHAEZA C. EYAS

Roll of Attorney No. 91995
IBP Lifetime Member No. 151901 | Cebu City
PTR NO. 09175800994 | 06/08/18 | Cebu City
MCLE Compliance No. VI
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REPUBLIC OF THE PHILIPPINES}

CITY OF CEBU | S.S.

VERIFICATION AND CERTIFICATION

Plaintiff PENSHONE INC. a corporation duly existing for and by virtue
of the laws of the Republic of the Philippines, hereinafter represented by
Basha Alonzo, its VisMin Manager, pursuant to a Secretary’s Certificate
attached to this Complaint, after having been duly sworn to in accordance
with law, depose and say, that:

1. PENSHONE INC., represented by Basha Alonzo, is the Plaintiff in

the above captioned case;

2. He was authorized by the board of directors of PENSHONE INC.

to cause the preparation and filing of the foregoing complaint
for and in behalf of the corporation;

3. He read all the allegations therein and that the same are true
and correct of his own personal knowledge and of authentic
documents and records;

4. Neither he nor the corporation initiated any other action or

proceeding involving the same issues and/or parties in the
Supreme Court, Court of Appeals, or any other tribunal and if he
should know of any similar action or proceeding, affiant
undertakes to report the fact to this Honorable court within five
(5) days.

IN WITNESS WHEREOF, I have hereunto set my hand this 17th day of

March, 2020 at the City of Cebu, Philippines.

BASHA ALONZO
Affiant
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SUBSCRIBED AND SWORN to me before be this 17th day of March,

2020 at the City of Cebu affiant exhibiting to me his Passport ID NO.
P8595323A issued on June 20, 2019 at Cebu City.

NOTARY PUBLIC

Doc No______14;
Page No. _____3;
Book No. _____1;
Series of 2020.