REPUBLIC OF THE PHILIPPINES

Office of the President

HOUSING AND LAND USE REGULATORY BOARD
HLURB Office. NHA Compound, Kalayaan Avenue
corner Mayaman Street, Diliman, Quezon City

C E L I A      E.      L E U T E R I O,                                 

                                                                  Complainant,

                    -versus- HLURB Case No. _________

AIC MANAGEMENT & MARKETING

CORPORATION

                Respondent.
x-------------------------------------------x

COMPLAINT
COMPLAINANT CELIA E. LEUTERIO, by and through the undersigned Law

Offices, unto this Honorable Board, most respectfully alleges: That---

PARTIES

1. Complainant Celia E. Leuterio is of legal age, Filipino and resides at No. 1289

Pablo Ocampo Sr. corner Lemery Streets, Manila. She may be served with summons, orders and

other legal processes of this Honorable Board at the address of the undersigned Law Offices

indicated herein-below.

2. Respondent AIC Management & Marketing Corporation is a private domestic corporation duly

organized and existing under and by virtue of the laws of the Republic of the Philippines and it may be served with

summons, orders and other legal processes of this Honorable Board at its principal office address located at AIC

Realty Corporation Building, Garnet Road, Ortigas Center, Pasig City, Metro Manila.

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 FACTUAL BACKDROP

3. Sometime in early 1995, complainant purchased on a “pre-selling” scheme, an

office condominium unit and two (2) parking slots in one of respondent’s condominium project

denominated as AIC Empire Tower (hereinafter referred to as the “condominium unit”) to be

erected at ADB Avenue corner Sapphire and Garnet Streets, Ortigas Center, Pasig City, Metro

Manila.

4. A Reservation Agreement dated 28 June 1995 was signed by and between

complainant and respondent’s Vice-President for Finance, Val John E. Perez, wherein the

complainant paid a downpayment and reservation deposit of PhP744,305.10 and PhP200,000.00,

respectively. The Reservation Agreement stipulated that the remaining balance of

PhP6,654,440.66 shall be paid by complainant via a monthly amortization of PhP120,615.01 for

forty-two (42) months and the remaining amount of PhP2,684,908.60 shall be paid upon turnover

of the condominium unit. A copy of the said Reservation Agreement is attached hereto as Annex

“A” to form an integral part hereof.

5. Around the same time, complainant purchased two (2) other units from AIC

Realty Corporation, also on a pre-selling basis, to wit: Unit 611 at AIC Gold Tower located at

Garnet Road, Ortigas Center, Pasig City, for turnover in 1998, and one (1) unit at Waldorf

Towers supposed to have been built along Roxas Boulevard near the U.S. Embassy and for

turnover in 1998.

6. AIC Gold Tower suffered delays but was finally turned-over in May 1999. AIC

Waldorf Tower did not get off the ground inspite of the fact that complainant had already paid

PhP4,111,946.00.

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 7. Sometime in 1995 or 1996, complainant received unofficial information that

construction works on AIC Waldorf Tower had been stopped indefinitely which respondent

initially denied but later on confirmed.

8. At around this time, the AIC Empire Tower project had also slowed down and no

firm commitment on the turnover date of the condominium unit was ever given to complainant.

9. Complainant therefore requested respondent to return all her payments on AIC

Waldorf. Respondent, on its part, suggested that these payments be applied in full to the

scheduled amortization on the condominium project at AIC Empire Tower and the final balance

on AIC Gold Tower. Respondent further reassured complainant that work on AIC Empire Tower

was already speeding up.

10. On 28 April 1999, complainant therefore agreed that the payments she already

made for the condominium unit she had purchased at AIC Waldorf Towers in the amount of

PhP4,111,946.00 be apportioned and applied as payment for the other condominium units she

purchased, to wit: (a) PhP433,963.25 as first payment for Unit 611 of AIC Gold Tower

Condominium; (b)    PhP1,362,072.64 for the condominium unit to update its monthly

amortization. As to the remaining amount of PhP2,315,911.06, respondent requested that the

same be refunded to her. A copy of the letter dated 28 April 1999 containing the aforesaid request

is attached hereto as Annex “B” to form an integral part hereof.

11. Respondent, on its part, proposed that all payments made for the condominium

unit at AIC Waldorf Towers would be apportioned and applied to all unpaid amortization for the

condominium unit and Unit 611 of Gold Tower Condominium.

12. Thereafter, series of negotiations were held between complainant and respondent

as to how the payments made for the condominium unit at AIC Waldorf Towers would be applied

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to the aforementioned condominium units.

13. Finally, complainant agreed to the proposal of respondent that all payments be

applied to the outstanding account of the former in the condominium unit as stated in the latter’s

letter dated 16 August 2000 to complainant. A copy of the said letter is attached hereto as Annex

“C” to form an integral part hereof.

14. For more than eight (8) agonizing years, complainant waited for respondent to

deliver the condominium unit to her. In fact, complainant made several requests for an update of

the status of the condominium project because she noticed that no major development had been

introduced therein since she signed the Reservation Agreement. Copies of complainant’s letters

to respondent dated 27 February 2002 and 30 May 2002 are attached hereto as Annexes    “D”

and “E”, respectively, to form an integral part hereof.

15. Respondent, on the other hand, gave the complainant the same response that

construction works in the condominium project is on-going but it cannot give a specific date as

to when the same will be completed.

16. On 23 May 2002, respondent issued a Certification stating therein that since 30

August 2000, complainant had already paid, in full, the purchase price of the condominium unit.

A copy of the said Certification is attached hereto as Annex “F” to form an integral part hereof.

17. Fed up with the lame excuses of respondent, complainant finally decided to

demand the return of all the payments she had made, including interest.

18. This constrained complainant to refer the matter to the undersigned Law Offices

and a letter dated 16 June 2003 was sent to the respondent, personally and via registered mail,

demanding for the return of all payments made by the former in the aggregate amount of

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PESOS: NINE MILLION FIVE HUNDRED SEVENTY-FOUR THOUSAND ONE

HUNDRED THIRTY-TWO & 66/100 (PhP9,574,132.66) within ten (10) calendar days from

receipt of the said letter. Copies of the registry receipt and aforesaid letter are attached hereto as

Annexes "G" and "H", respectively, to form as integral parts hereof.

19. Respondent’s Senior Vice-President, Ramon S. Untalan, met with complainant’s

counsel and assured the latter that he would send a written proposal for the settlement of the

claims of complainant.

20. Several weeks later, the undersigned Law Offices received a letter dated 10 July

2003 from Mr. Untalan stating therein respondent’s proposal. A copy of the said letter is

appended herewith as Annex “I” to form an integral part hereof.

21. After conducting an ocular inspection of the condominium units that are being

offered by respondent as settlement for her demands and deliberating on the latter’s proposal,

complainant decided to reject the same and demanded for the complete refund of all payments

she had made.

22. On 15 August 2003, a letter dated 08 August 2003 was sent by the undersigned

Law Offices to respondent, via DHL courier, stating therein complainant’s decision and gave the

former five (5) calendar from receipt of the said letter to refund all payments made by

complainant. Copies of the said letter and receipt issued by DHL courier are appended herewith

as Annexes “J” and “K”, respectively, to form as integral parts hereof.   

23. The grace period stated in the aforesaid letter had lapsed but respondent failed to abide with the

lawful demand of complainant.

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 CLAIMS

24. In view of the failure on the part of the respondent to comply with its obligation,

coupled with its adamant refusal to return back all payments made by the complainant, the latter

suffered actual damages in the aggregate amount of PESOS: NINE MILLION FIVE

HUNDRED SEVENTY-FOUR THOUSAND ONE HUNDRED THIRTY-TWO & 66/100

(PhP9,574,132.66).

25. The unwarranted acts of respondent in employing deceits and misrepresentations

to the complainant subjected the latter to unnecessary apprehensions and anxieties. The

complainant parted away with over nine (9) million pesos in favor of the respondent without

knowing that the latter had no intention, whatsoever, in fulfilling its undertaking. Therefore, it is

only but just and proper that complainant be vindicated and correspondingly compensated by

ordering respondent to pay her moral damages in the amount of PESOS: TWO HUNDRED

THOUSAND AND 0/100 (PhP200,000.00).

26. To serve as an example for public good and to deter corporations similarly

inclined as respondent from employing deceits to entice individuals like complainant into

purchasing a condominium unit in a "pre-selling" scheme, the latter prays that the former be

condemned to pay exemplary damages in the amount of PESOS: TWO HUNDRED

THOUSAND AND 0/100 (PhP200,000.00).

27. In order to vindicate and protects her rights, complainant was forced to engage the

services of the undersigned Law Offices by paying an acceptance fee of PESOS: FIFTY

THOUSAND AND 0/100 (PhP50,000.00) plus PESOS: THREE THOUSAND AND 0/100

(PhP3,000.00) for every appearance in court.

28. In addition to the foregoing, the complainant will continue to incur litigation

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expenses, the total amount of which will be made known later to this Honorable Board.

PR AY E R

WHEREFORE, above premises considered, it is most respectfully prayed of this

Honorable Board that a Decision be handed down ORDERING the respondent to PAY the

complainant:

1. PhP9,574,132.66, plus interest, as actual damages;

2. PhP200,000.00 as moral damages;

3. PhP200,000.00 as exemplary damages;

4. PhP50,000.00 as attorney's fees plus the total amount of appearance fees

incurred; and

5. cost of the suit.

OTHER RELIEFS, just and equitable under the foregoing premises, are likewise most

respectfully prayed for.

RESPECTFULLY SUBMITTED.    Quezon City, 25 August 2003.

SOLIVEN CASTILLO & ESCOBEDO LAW OFFICES

Unit 404 Tower A, The Regalia Park Towers

150 P. Tuazon Blvd., Araneta Center
Cubao, Quezon City

ANTONIO C. SOLIVEN, JR.

Roll of Attorney No. 429177
PTR No.: 40718632: 30.01.03: Q.C.
IBP No.: 572808: 07.01.03:Pampanga

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ALEXIS M. ESCOBEDO
Roll of Attorney No. 46807
PTR No.: 40718643: 30.01.03: Q.C.
IBP No.: 576148: 01.16.03: Sorsogon