Republic of the Philippines

FOURTH JUDICIAL REGION

REGIONAL TRIAL COURT
Branch 86
Taal, Batangas

MARTA SO AND ELVIE SO

Plaintiffs,
Civil Case No._____
For: Declaration of Nullity of
Mortgage and Sale,
Recovery of
Possession and Ownership with
Damages
-versus-

XYZ LENDING CORP., OLIVIA, RICHARD

AND GINA ALL SURNAMED SO
Defendants.

x---------------------x

PRE-TRIAL BRIEF

COMES NOW, the DEFENDANT XYZ Lending Corporation by

counsel and to this Honorable Court, respectfully submits this Pre-
Trial Brief containing the following:

I. Brief Statement of Facts

Plaintiffs filed a complaint against Defendants Olivia So,

Richard So, Gina So and XYZ Lending Corporation alleging
that on October 4, 2017, the defendants So siblings mortgaged
a parcel of lot owned by Sps Rosendo and Marta So to XYZ
Lending Corp for Two Million Pesos (Php 2,000,000.00) without
the knowledge and consent of the plaintiffs. The plaintiffs
alleged that they are co-owners in the property, hence, it cannot
be mortgaged without their consent. They further claimed that
one of the defendants, Richard So signed the document in
behalf of the his father Rosendo So, who died on March 3,
2014 prior the execution of the contract. The lot was extra-
judicially foreclosure upon failure of the Defendants So siblings
 to pay the loan and the title was then consolidated in favour of
XYZ Lending Corporation after the lapse of the redemption
period.
Defendant, in its Answer with Counterclaims and
Crossclaims, dated March 4, 2021, prays for the dismissal of
the complaint on the ground that the plaintiff has no cause of
action since Defendant XYZ Lending Corporation is a
mortgagee in good faith and a subsequent innocent purchaser
for value, as such, its rights as the new owner of the subject
property must be respected and protected by the courts. It also
prays for damages and attorney’s fees against plaintiff if it was
found that the suit was unfounded and cross claim against co-
defendant amounting to P2,300,000.00 if the property will be
reconveyed to the plaintiff.

II. Defendant is willing to enter into an amicable settlement of the

case, under the terms and conditions agreeable to both parties
and submit to alternative modes of dispute resolution;

III. Summary of Admitted Facts

Defendant admits the following facts:

III.1 Defendant admits only those facts stated in the Answer, i.e.,
their personal circumstances.
III.2 Defendant admits the existence of a Real Estate Mortgage
contract on the subject parcel of lot under TCT No. 053-
2018003235 owned by Sps. Rosendo and Marta So for the
loan amounting to TWO MILLION Pesos (Php 2,000,000.00)
and that the mortgaged property was extra–judicially
foreclosed due to the failure of the of the mortgagors,
Rosendo and Marta So, to settle the loan on the set due
date.
III.3 Defendant admits that there was a notice sent by the
counsels’ plaintiff regarding the alleged falsification.

IV. Proposed Stipulation of Facts

Defendant requests Plaintiffs to admit the following facts:
 IV.1 That Sps Rosendo and Marta So caused the preparation of
the Real Estate Mortgage Contract on the subject parcel of
lot under TCT No. 053-2018003235 owned by Sps. Rosendo
and Marta So for the loan amounting to TWO MILLION
Pesos (Php 2,000,000.00).
IV.2 That Defendant examined the title offered by the herein co-
defendants, Olivia, Richard and Gina So as security for the
loan and found neither infirmity nor defect.
IV.3 That a valid extra-judicial foreclosure sale was conducted
and the mortgagors failed to redeem the property, hence, the
consolidation of title in favor of the herein Defendant who
was the highest bidder in the auction sale.
IV.4 That Defendant is a mortgagee in good faith and a
subsequent innocent purchaser for value, as such, its rights
as the new owner of the subject property must be respected
and protected by the courts.

V. Issues
Defendant respectfully submits that the issues in this case are:

V.1 Whether or not the plaintiff has the cause of action.

V.2 Whether or not the Real Estate Mortgage contract executed
by Sps Rosendo and Marta So is valid?
V.3 Whether or not the foreclosure sale and issuance of new
transfer certificate of title in favor of herein defendant is
valid?
V.4 Whether or not herein defendant is mortgagee in good faith
and a subsequent innocent purchaser for value

VI. List of Exhibits to be Presented

Defendant will present the following exhibits:

6.1 A certified, true and faithful reproduction of the indebtedness

Real Estate Mortgage Contract executed by Sps Rosendo and
Marta So to be marked as “Exhibit 1” to prove the existence of
the contract.
 6.2 A certified, true and faithful reproduction of the Identification
card of Rosendo So to be marked as “Exhibit 2” to prove that
the signature of Rosendo So is the same with that of the Real
Estate Mortgage Contract.
6.3 A certified, true and faithful reproduction of the Identification
card of Marta So to be marked as “Exhibit 3” to prove that the
signature of Marta So is the same with that of the Real Estate
Mortgage Contract.
6.4 A certified, true and faithful reproduction of the Tax
Declaration of Real Property to be marked as “Exhibit 4” to
prove that there was no infirmity nor defect to the property
subject of the mortgage contract.
6.5 A certified, true and faithful reproduction of the TCT No. 053-
2018003235 to be marked as “Exhibit 5” to prove that there
was no infirmity nor defect to the property subject of the
mortgage contract.
6.6 A certified, true and faithful reproduction of the Inspection and
Appraisal Report to be marked as “Exhibit 6” to prove that the
mortgagee ascertained the credibility of the mortgagor and the
herein co-defendants.
6.7 A certified, true and faithful reproduction of Cash Transaction
Slip or Deposit Slip to be marked as “Exhibit 7” to prove that
the proceeds of the loan were deposited in the joint account of
Marta So and Richard So.
6.8 A certified, true and faithful reproduction Sheriff’s Notice of
Extra-Judicial Sale to be marked as “Exhibit 8” to prove that
there was a valid foreclosure sale.
6.9 A certified, true and faithful reproduction Sheriff’s Certificate of
Sale to be marked as “Exhibit 9” to prove that the herein
defendant is the highest bidder and there was a valid
consolidation of title upon failure to redeem the property.

VII. DISCOVERY PROCEDURES

Defendant hereby informs this Honorable Court of their
intention to avail themselves of discovery procedures when
circumstances require.

VIII. Witnesses to be presented

Defendant will present the following witnesses:
 8.1 Defendant XYZ Lending Corporation as represented by its
President Emilio Aguinaldo - to testify on the materials
allegations special and affirmative defenses and the denials
in their Answer, Counterclaims and Crossclaims and to
testify on the damages caused to them by the filing of this
action;

Reservation
Defendant expressly reserves the right to present such
additional witnesses and other exhibits and evidence as the
exigencies of the trial may require.

Specific Trial Dates

It is respectfully requested that the trial dates be set during the
pre-trial conference to dates most convenient to this Honorable Court
and to all the parties.

MOST RESPECTFULLY SUBMITTED.

Taal, Batangas, Philippines, 12th day of April 2021.

MARIA GINALYN CALDERON

Counsel for the Defendant
Roll No. 77790
IBP No. 093459 01-18-21
PTR No. 0556040 01-13-21
MCLE Compliance No.IV-443584
Issued on December 12, 2020
Calicanto, Batangas City
Tel No. 288-2014

Filing and service of copies via Registered Mail

REGIONAL TRIAL COURT

Branch 86
Taal Batangas
ATTY ARMAN D ALIPIT JR.
Counsel for the Plaintiffs
Notary Public for and in the Municipalities of Bauan,
Mabini, and Taal, Batangas
Commission No. 2018-99
Until December 31, 2022
Roll of Attorneys No. 003780
IBP Lifetime No. 0987680/Batangas City
MCLE Compliance No. V-09090878,07-11-17

EXPLANATION

Copies of the foregoing pleadings were served to the Counsel

of the Plaintiffs and to the Honorable Court via registered mail, with
return card, on account of the very far distance between the offices of
the parties and their respective counsels, time constraints, and
unavailability of messengerial personnel to effect personal service
thereof.

ATTY. MARIA GINALYN CALDERON