Republic of the Philippines REGIONAL TRIAL COURT BRANCH 72 7" Judicial Region REGIONAL TRIAL cou! RT Lapulapu City RANCH 72 LAPU-LAPU cy BY:, pat 2 Time: 5 DESMOND GO DAJAO, MG Plaintiff, CIVIL CASE NO. R-LLP-19-07620-CV -versus- FOR: COLLECTION OF NET INCOME FROM PROJECT UNDERTAKEN FOR CST ENGINEERS AND BUILDERS ENGR. CAMILO S. TABANAO, In his capacity as Owner, General And Project Engineer of CST Engineers And Builders, Defendant, “I RIAL BRIEF OF THE PLAINTIFF Plaintiff, Desmond Go Dajao, through undersigned counsel, to this Honorable Court , most respectfully submit his Trial Brief, to wit: STATEMENT OF THE CASE This is a case for Collection of Net Income from a Project undertaken by the Plaintiff for CST Engineers and Builders, a company duly organized and existing with principal office at Sun-ok, Tayud, Consolacion, Cebu, Philippines. This is a project from Mactan Cebu International Airport Authority for the construction of Elevated Water Tank & Re-Piping of Main Water Supply at General Aviation MCIAA Terminal Building, Airport Road, Lapu-Lapu City amounting to Six Million Thirteen Thousand Six Hundred Ninety Five & 62/100 PESOS (P6,013,695.62). The respondent, Engr. Camilo S. Tabanao, is the Owner, General and Project Engineer of CST Engineers and Builders, while the plaintiff was the one designated to handle the project for them with the following agreements:Page 2 1. A.6% royalty based on the total cost of the project is to be given to CST Engineers & Builders; 2. Assume payment of whatever taxes are payable by CST Engineers & Builders to the Bureau of Internal Revenue; 3. Materials, construction supplies, other expenses and cash advance taken by the Plaintiff from CST Engineers & Builders will be charged 10% interest; 4, Rental of heavy equipment used in the project is to be paid to the defendant, CST Engineers and Builders; The project was started on August 8, 2018 and partial releases or payment by the MCIAA is made in the form of checks made payable to CST Engineers & Builders, then the latter will prepare an Income Statement to the Plaintiff, showing the net amount he will collect from the Defendant; When the project was completed in March, 2019, the complainant made a demand for payment of his Net Income from the project. The defendant has presented two Income Statements to the Plaintiff as follows: 1. One dated June 6, 2019, where the plaintiff has a collectible amount of TWO HUNDRED SEVENTY-FIVE THOUSAND EIGHT HUNDRED THIRTY FIVE & 87/100 (P275,835.87) from the defendant, CST Engineers & Builders; 2. Another one dated July 3, 2019, where the plaintiff has an overdraft in ‘the amount of EIGHTY FIVE THOUSAND THREE HUNDRED NINETY THREE & 50/100 (P85,393.50) PESOS; The Plaintiff has presented his own Billing Statement using the amounts provided by the Defendant and in that Statement he has an amount collectible in the total of ONE MILLION TWO HUNDRED NINETY FOUR THOUSAND THIRTY & 93/100 PESOS (P 1,294,030.93) PESOS. The Defendant has refused to pay this amount as in their statement of July 3, 2019, the Plaintiff has an overdraft of EIGHTY FIVE THOUSAND THREE HUNDRED & 50/100) PESOS (P85,393.50); There is a tax refundable in the amount of FOUR HUNDRED SEVEN THOUSAND EIGHT HUNDRED EIGHTY FOUR & 75/100 (P407,884.75) PESOS, which is credited to CST Engineers & Builders, to which the latter is not entitled because it was paid by the Plaintiff, Desmond Go Dajao.Page 3 POSSIBILITY OF AMICABLE SETTLEMENT The Plaintiff is willing to enter into an amicable settlement with the Defendant if the amount stated in the Billing Statement prepared by the Plaintiff will be paid. N w ~N PROPOSED STIPULATION OF FACTS . That the Defendant, Engineer Camilo S. Tabanao is the Owner, General and Project Engineer of CST Engineers & Builders; That the Plaintiff, Desmond Go Dajao, was designated to undertake the MCIAA Project, with the knowledge and approval of the Defendant, Engineer Camilo S. Tabanao; . That the Plaintiff, Desmond Go Dajao, was never present in any of the meetings/conferences between former Vice-mayor Boyet Tago and Mr. Jeccorey Rey and therefore, had no knowledge about any agreement that the Defendant had with them; |. That it was the Plaintiff who prepared all the papers and documents necessary for the bidding of the project as well as its submission and that the Defendant had no participation whatsoever, except for the use of the license of his company, CST Engineers & Builders; . That when the Defendant knew that the Plaintiff was not a contractor or an engineer he assigned a project consultant to oversee the project to assure himself that everything will be in order ,whose professional fees were paid by the Plaintiff; . That the Plaintiff, Desmond Go Dajao, has completed the project within the time frame given by MCIAA; . That the overdraft already given due consideration and deducted in the Project Billing prepared by the Defendant was also included in the expenses which resulted in the Net Loss of the Project, from the Down Payment until the Final Billing;Page 4 8. That all the figures in the Billing Statement prepared by the Plaintiff were figures based on the records of the Defendant; e . That the Defendant could not have suffered any loss in the project because all the expenses were shouldered by the Plaintiff including the payment of royalty, taxes, rental and interest on the cash advances made by the Plaintiff; 10.That the Defendant has not received any complaints from the MCIAA about the quality and standard of work accomplished by the Plaintiff; 11.That the Plaintiff is entitled to the re-imbursement of taxes paid and/or withheld by the MCIAA because the Plaintiff was the one who paid the taxes as per agreement between the parties; 12. That the Plaintiff had sent a demand letter twice, through E-Mail and through LBC, asking the Defendant to pay the Net Income of the Plaintiff from the Project; ISSUES TO BE RESOLVED 1. WHETHER OR NOT THE DEFENDANT IS LIABLE TO PAY THE AMOUNT OF ONE MILLION TWO HUNDRED NINETY FOUR THOUSAND THIRTY & 93/100 PESOS (P1,294,030.93), AS APPEARING IN THE BILLING STATEMENT PREPARED BY THE PLAINTIFF; 2. WHETHER OR NOT THE PLAINTIFF IS ENTITLED TO THE RE- IMBURSEMENT OF VAT AND OTHER TAXES PAID/WITHHELD BY MCIAA FROM THE DEFENDANT CONSIDERING THAT IT WAS THE PLAINTIFF WHO PAID SUCH TAXES; w . WHETHER OR NOT THE PLAINTIFF IS ENTITLED TO DAMAGES PRAYED FOR IN THE COMPLAINT;Page 5 1. Exhibit A - 2. Exhibit B - 3. ExhibitC - 4. Exhibit D - 5. Exhibit E - 6. Exhibit F - 7. ExhibitG - 8. ExhibitH - 9. Exhibit | 10.Exhibit J - 11. Exhibit K - 12. Exhibit L - DOCUMENTS TO BE MARKED AS EXHIBITS Income Statement prepared by CST Engineers & Builders on the Down payment made by MCIAA, showing total expenses in the amount of P868,824.77 and an overdraft of P25,370.03; Income Statement on Project Billing No. 1 prepared by CST Engineers & Builders, showing total expenses in the amount of P1,555,505.71, and an overdraft amounting to P4l4,360.72; Income Statement on Project Billing No. 2 prepared by CST Engineers & Builders showing total expenses in the amount of P1,479,854.28 and an overdraft in the amount of P445,744.30; Income Statement on Final Billing prepared by CST Engineers & Builders showing total expenses amounting to P2,532,789.11 and a Total Loss of P127,065.12. Income Statement dated June 6, 2019 wherein the Plaintiff has an amount collectible of P275,835.87; Income Statement dated July 3, 2019 wherein the Plaintiff has an overdraft amounting to P85, 393.50; Billing Statement prepared by the Plaintiff showing a total amount collectible from the Defendant of P1,294,030.93, using the amounts and figures taken from the statements prepared by CST Engineers and Builders; Statement dated July 3, 2019, showing the Value-Added Tax due of P464,960.22; Statement of Account dated Sept. 8, 2018 to November 6, 2018 prepared by CST Engineers & Builders; Statement of Account dated November 6, 2018 to December 8, 2018 prepared by CST Engineers & Builders; Statement of Account dated December 13, 2018 to May 21, 2019 prepared by CST Engineers & Builders; Demand Letter sent thru E-Mail dated July 28, 2019;Page 6 13, Exhibit M_- Demand letter sent thru LBC dated July 29, 2019; 14. Exhibit N - Summary of VAT Expense dated June 27, 2019, showing VAT refundable of P407,884.75. WITNESSES TO BE PRESENTED 1. Desmond Go Dajao - the Plaintiff, who will testify on the material allegations and other pertinent and relevant matters to support his complaint. 2. Engr. Jessie Manolat - the Project Engineer, who supervised the construction works, and will testify on the materials and supplies and delivered, the workers’ payroll, the equipments used and other relevant matters on the construction of the project. 3. Renator Mecaydor - the driver of the Plaintiff, who was with him at all times in going to and from the construction site. DATES OF TRIAL The Plaintiff will submit to whatever dates available that can be accommodated in the calendar of the Honorable Court. RESPECTFULLY SUBMITTED. March 9, 2010, Lapu-Lapu City. ATTY. evaline S.GICALE, CPA ‘ounsel Valle Compound, S. Osmena St., Lapulapu City Across Outlets at Pueblo Verde, Mepz II Beside Wheeltek, Basak Lapulapu City Roll of Attorneys No. 25927 IBP No. AR30111085. 1/14/2020. Cebu Province PTR No. 8103153. 1/13/2020.Lapulapu City MCLE Compliance No. VI-0003614 Valid until April 14,2022 PLOT Landline No. 032-3411022; Mobile No. 09173244311 Copy Furnished: tH IFSZ SOYF 2023 Uke ‘. Ja {0 Atty. Joel S. Alcazaren Room 302, 3” Floor, M. Diaz Bldg. Don Jose Avila St., Corner Osmefia Blvd. Capitol Site, Cebu City