REPUBLIC OF THE PHILIPPINES

REGIONAL TRIAL COURT

FOURTH JUDICIAL REGION
BRANCH 12
LIPA CITY, BATANGAS

GOLDCREST CREDIT
CORPORATION, Civil Case No. 10-2016-1222
Plaintiff,

-versus- -for-

ELSA ALVAREZ, Recovery of Sum of Money

Defendant.
x-----------------x

ANSWER WITH AFFIRMATIVE DEFENSE

AND COMPULSORY COUNTERCLAIMS

COMES NOW, defendant through the undersigned counsel, and

unto this Honorable Court by way of Answer to Plaintiff's complaint most
respectfully states:

1. Paragraph 1 of the complaint is denied because herein

answering defendant has no sufficient knowledge to form a belief as to
the truth or falsity of the same. Moreover, the Secretary Certificate
which plaintiff attached as Annex “A” is fatally defective because it failed
to contain the date and time when the alleged Board of Directors of the
plaintiff had convene to give authority to Mr. Lucero to initiate the
instant complaint. The truth of the matter are those alleged in the
Affirmative Defenses hereunder;
2. Paragraph 2 is admitted;
3. Paragraph 3 is partially admitted because the aforesaid
Promissory Note is only an added security imposed by the plaintiff,
hence, a simulated contract. The real contract that transpired between
the herein parties is a Chattel Mortgage Contract. The truth of the
matter are those alleged in the Affirmative Defenses hereunder;
 4. Paragraphs 4 to 7 are denied. The allegations were based
on the Promissory Note, which as above discussed, a void contract
which produces no legal effect;
5. Paragraph 8 is not only denied for lack of factual
knowledge sufficient to establish belief as to the truth or falsity of the
same but more importantly by reason that the statement is a mere
conclusion of law and not of ultimate facts to constitute sufficient
averments in a complaint;

AFFIRMATIVE DEFENSES

1. The Secretary Certificate which plaintiff attached as Annex “A” is

fatally defective because it failed to contain the date and time when the
alleged Board of Directors of the plaintiff had convene to give authority
to Mr. Lucero to initiate the instant complaint.

- By virtue of the Doctrine of Centralized Management, a

corporation can only act through the Board of Directors.
In the case at bar, the Secretary Certificate failed to
transpire the date and time when the alleged Board of
Directors of the plaintiff had convene to execute such
resolution giving authority to Mr. Lucero to initiate the
instant complaint, hence, it only means that no meeting
was held. Anent therein, Mr. Lucero has no authority to
file instant complaint in behalf of the plaintiff. As such,
the instant complaint must be out rightly dismissed.

2. The real contract that transpired between the herein parties is a

Chattel Mortgage Contract and not a Promissory Note, hence, a
simulated contract which can legally be categorized as a void contract
which produces no legal effect.
 - Article 1409 of the New Civil Code expressly states that
absolutely simulated or fictitious contracts are inexistent and
void from the beginning. In the case at bar, the true
intention of the parties is to execute a Chattel Mortgage
Contract. Galvanizing such is the letter dated January 5,
2016 executed by Mr. Roberto De Leon in behalf of
Goldcrest Credit Corporation addressed to the defendant,
(Copy of the Letter is hereto attached as Annex “A”). Anent
therein, it can be legally concluded that the Promissory Note
subject matter of this case is a simulated one.

The Supreme Court in the case of Heirs of Policronio Ureta

Sr. vs. Heirs of Liberato Ureta Sr., GR No. 165748,
September 14, 2011, enunciated that, Viz:

 
For guidance, the following are the most fundamental
characteristics of void or inexistent contracts:
 
1) As a general rule, they produce no legal effects
whatsoever in accordance with the principle "quod nullum
est nullum producit effectum";
2)  
2) They are not susceptible of ratification;
 
3) The right to set up the defense of inexistence or absolute
nullity cannot be waived or renounced;
 
4) The action or defense for the declaration of their
inexistence or absolute nullity is imprescriptible;
 
5) The inexistence or absolute nullity of a contract cannot be
invoked by a person whose interests are not directly
affected;
 
COMPULSORY COUNTER-CLAIM
Defendant incorporates all the material allegations as part of this
compulsory counter-claim:

Due to the filing of the baseless, precipitate and unwarranted

complaint against her, the later was constrained to hire the service of
the undersigned counsel for protection of his rights and interest and
binds himself to pay the later the sum of P30,000.00 or as Attorney
fees, plus P4,000.00 for every appearance of undersigned counsel in
the court during the hearing;
 As a consequence of plaintiff’s unjustified act, defendant suffered
besmirched reputation, wounded feelings, serious anxiety and similar
injuries to which moral damages of at least P20,000.00 should be meted
against the plaintiff;
PRAYER
WHEREFORE, it is most respectfully prayed of this Honorable
Court that after due hearing, judgment be rendered against the plaintiff
and in favor of answering defendant, as follows:
a) To DISMISS the Complaint right away;
b) To pay moral damages of P20,000.00;
c) To pay the attorney’s fee paid to the lawyer in the amount
of P30,000.00 plus P4,000.00 per appearance.

Other reliefs and remedies which are just and equitable in the
premises are likewise prayed for.

Batangas City for Lipa City, Batangas, February 10, 2017.

DE LA CRUZ LAW OFFICE

Counsel for the Defendant
250-A, P. Burgos Street, Batangas City
CP No. 0917-846-9005/Tel No. (043) 722-1454

By:

ATTY. JOHN RAFAEL T. DE LA CRUZ, JD

PTR No. 2801023/01-03-17/Batangas City
MCLE Compliance No. V-0016376/ 03-18-16
IBP Lifetime No. 1011284
Attorneys Roll No. 64456
Copy Furnished:

Atty. Dante SL. Resurreccion By: 2GO

16 Pres. L. Katigbak ST., Lipa City as per Transaction No.
Counsel for the Plaintiff
_________________
 EXPLANATION OF MODE OF SERVICE
(Pursuant to Section 11, Rule 13
Of the 1997 Rules of Civil Procedure)

The foregoing Answer with Affirmative Defense and Compulsory

Counterclaims was served on the Honorable Court and Plaintiff by way
of 2GO in lieu of personal service due to distance and practicality.

ATTY. JOHN RAFAEL T. DE LA CRUZ, JD