5 January 2021

THE DIRECTOR
FAIR TRADE ENFORCEMENT BUREAU
DTI Fair Trade and Enforcement Bureau (FTEB)
UPRC Building 315 Sen. Gil J. Puyat Ave.,
1200 Makati City, Philippines

RE: LETTER OF COMPLAINT AGAINST PALOMO’S CATERING SERVICES

Dear Director,

We write for and on behalf of our client, ASA (hereinafter “ASA”).

Facts forwarded to our office shows that, on March 3 2020 ASA entered into a Contract
for Catering Service with PALOMO’S CATERING SERVICES, a sole proprietor with
office address at Purok 4, National Highway, Rizal, Santiago City (hereinafter “Caterer”).
Under the said contract, the Caterer will provide the venue and catering services for
ASA’s event to be held on March 21, 22, 28, and 29, 2020. Accordingly, ASA made a
down payment in the amount of Fifty Thousand Pesos (P50,000.00) in favor of the
Caterer.

However, on March 15, 2020, the government has imposed a mandatory community
quarantine to prevent the transmission of Covid-19 virus. This has resulted to the
cancellation of the planned event, for the causes beyond the control of ASA.

On June 19, 2020, ASA, through this law firm, sent a Notice of Rescission with Demand
for Refund1 to Palomo’s Catering Services. In which, the Caterer, in its answer 2 dated 29
June 2020, denied our request for the refund of the down payment made by our client.

In its answer, the Caterer stated that: “Under the Terms and Conditions of the Contract,
among others, the 20% down payment or reservation fee shall be non-refundable”. This is
because they have exclusively reserved the abovementioned dates for our clients.

The Department of Trade and Industry (DTI), in its Memorandum Circular No. 2020-30
dated June 2 2020, explicitly provided guidelines on refunds of payments made for events
affected by the State of Public Health Emergency, which covers the issue at hand.
1
The Notice of Rescission with Demand for Refund is hereto attached as Annex “A”
2
The Caterer’s Answer is hereto attached as Annex “B”
According to the said Memorandum Circular:

Section 5. Procedure for Refund Concession – Where an event or function

referred to herein is cancelled or scaled down as a consequence of the implementation of
restrictions, particularly on social distancing during the community quarantine, the refund
concession shall be carried out in accordance with the following:

a. For cancelled events or functions, the schedule of which falls during the period
covered herein, the owner of the venue or its representative shall give the other party the
following options:

i. Consume the amount paid at a later date, which shall be no longer than one (1)
year from the lifting of restriction imposed by the government; or
ii. Get the net of the amount paid after deducting the relevant actual expenses
incurred before the imposition of restrictions, with proof thereof;
iii. Get back the full amount paid regardless of expenses incurred after the
imposition of restrictions;

In view of the foregoing, ASA is clearly entitled to the refund of the Fifty Thousand
Pesos (P50,000.00) down payment it made, absent proof that the Caterer incurred
ACTUAL damages for the reservation of the venue.

In the Caterer’s answer, it offered to accommodate our client in the future using the
remainder of the reservation fee as compromise. Though we appreciate the offer, our
current circumstances precludes us from accepting the offer since until now there are still
restrictions regarding mass gatherings and organization of events involving more than 10
persons. Thus, it is now impossible for ASA to continue with the planned event anytime
soon.

Further, though we understand the current situation of the catering businesses in the
country, our client likewise suffered so much damage brought about the effects of the
pandemic. Ergo, they are also in need of the down payment they made to Palomo’s
Catering Services.

Wherefore, premises considered, it is respectfully prayed for before this Honorable

Office that Palomo’s Catering Services be directed to refund the amount of Fifty
Thousand Pesos (P50,000.00) to our client, ASA Philippines Foundation Inc., within
five (5) days from the receipt of the order.

Should you have further queries or clarifications, ASA can be reached through it
authorized representative, Mr. RS, at 0942-462-8563 or through the undersigned lawyers
through (02) 719-4010.

2
Thank you. Hoping for your positive and immediate response.

Very Truly Yours,

ATTY. JOROLENLOU MARIE T. EVANGELISTA