REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF HUMAN SETTLEMENTS AND URBAN DEVELOPMENT

HUMAN SETTLEMENT ADJUDICATION COMMISSION

REGIONAL ADJUDICATION BRANCH IV B

Kalayaan Avenue, Diliman Quezon City

FELOMINO A. FRANCISCO

ROLANDO G. AVENDAÑO

CARMINA I. SARABIA

FRANCISCO G. GALVEZ

SUSAN T. JUARE

CYNTHIA ELAINE A. ACABADO

ROSALIE D. VALENCIA HSAC CASE NO. 060623-0316

Complainants,

versus

MARICRIS ENRIQUEZ

DOLORITA VELASCO

-Election Committee

SANTIAGO C. CALLUENG

LUZ P. CORRALES

LORETA C. KOJIMA

LEONILO HEBRES

IRENEO VICENTE

JAREM BARRANTES

GLORI ANNE A. LABITAN

FE L. GOMINTONG

DJHOANNA V. MORADAS

MONALINA C. MANALO

JULIUS EDMON E. CABRERA

FLORENCE L. RAMOS

LORENZO BONTO

IAN VINCENT B. SORIANO

RONNIE P. BABARAN

BOBBY G. SALAZAR

Respondents.

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

POSITION PAPER

(for the Complainants)

Complainants, assisted by counsel, to this Honorable Office, most respectfully states, that:

PREFATORY STATEMENT
Time and again, the Court is reminding party litigants to be mindful of their obligation of

observing honesty and good faith in exercising one’s rights and refrain from orchestrating

malevolent plot just to gain advantage and/or tilting the scales of justice in his/her favor.

Every person must, in the exercise of his rights and in the performance of his duties, act with
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justice, give everyone his due, and observe honesty and good faith .

I had rather take my chance that some traitors will escape detection than spread abroad a spirit

of general suspicion and distrust, which accepts rumor and gossip in place of undismayed and
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unintimidated inquiry.

TIMELINESS

In consonance with the Material Date Rule and to show forth the timeliness of the filing of this Position

Paper and Draft Decision, herein complainant most respectfully state the following material dates:
1. On 06 June 2023, complainant filed the instant complaint for nullification of Amended Bylaws

dated April 23, 2018 and August 17, 2021 and nullification of January 22, 2023 Election conducted in

Palmera Northwinds Phase IV-A, Brgy. Kaypian, City of San Jose Del Monte Bulacan for being contrary

to the association bylaws, Department Order No. 2021-007, Series of 2021 and damages with prayer

for the issuance of Writ of Preliminary Injunction against the respondents to cease and desist from

performing their function with this Honorable Office;

on Jully 13. 2023 ;

3. An Answer with Position Paper was filed by the Respondents dated June 27, 2023;

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4. An Order was issued granting the issuance of preliminary injunction;

5. On July 21, 2023 complainants paid the required bond thru Milestone Surety and the

Manifestation was likewise received by the Commission on the same date;

hearing date, this Honorable Office terminated the mediation proceeding and consequently

issued an Order, received by complainant’s counsel 31 July 2023, requiring the parties to file

their respective Position Paper and Draft Decision.

PARTIES

1. Complainants are all homeowners namely CARMINA I. SARABIA, resident of Block 8, Lot 48,

Palmera Northwinds Phase 4A, Brgy. Kaypian, City of San Jose Del Monte, Bulacan, FRANCISCO G.

GALVEZ of Block 9, Lot 18, Palmera Northwinds Phase 4A, Brgy. Kaypian, City of San Jose Del

Monte, Bulacan, SUSAN T. JUARE of Block 8, Lot 2, Palmera Northwinds Phase 4A, Brgy. Kaypian,

City of San Jose Del Monte, Bulacan, CYNTHIA ELAINE A. ACABADO of Block 9, Lot 10, Palmera

1 Article 19 of the New Civil Code of the Philippines

2 Learned Hand, Speech to the Board of Regents, University of the State of New York, 24 October 1952

3 Copy of Summons

4 Copy of Order
 Northwinds Phase 4A, Brgy. Kaypian, City of San Jose Del Monte, Bulacan and ROSALIE D. VA-

LENCIA of Block 8, Lot 42, Palmera Northwinds Phase 4A, Brgy. Kaypian, City of San Jose Del

Monte, Bulacan. They are represented by Mr. Felomino A. Franciso III and Mr. Rolando Avedaño,

both of legal age and residents of Palmera Northwinds Phase 4A, Brgy. Kaypian, City of San Jose

Del Monte, Bulacan where they may be served with notices, orders and other processes of this Hon-

orable Commission;

2. Respondents, Maricris Enriquez, Dolorita Velasco, Santiago Callueng,Luz Corrales, Loreta Kojima,
Leonilo Hebres, Ireneo Vicente,Jarem Barrangtes, Glori Anne Labitan, Fe Gimintong, Djhoanna

Moradas, Monalina Manalo,Julius Edmon Cabrera, Florence Ramos, Lorenzo Bonto, Ian Vincent

Soriano, Ronnie Babaran nad Bobby Salazar. They may be served with summons, notices and other

processes of this Honorable Office to their respective addresses.

STATEMENT OF THE FACTS

AND OF THE CASE

3. On March 27, 2022, respondent Mr. Santiago Callueng, called and notified all the Homeown-

ers/ members of Palmera Northwinds Phase 4A, Brgy. Kaypian, San Jose Del Monte Bulacan for a gen-

eral assembly to be conducted on November 06, 2022. The letter stated that in the said general assem -

bly, the Election Committee (EleCom) will be created and the election guidelines will be crafted; how-

ever, it failed to reach a quorum. Thus, another schedule of general assembly was called on December

04, 2022, still no quorum was reached;

4. On January 15, 2023 a general assembly was held in Palmera Northwinds Phase 4A, Brgy.

Kaypian, San Jose Del Monte Bulacan. This time, the EleCom was elected and chaired by Ms. Carmina

I. Sarabia contrary to the allegations stated by the Respondents in their answer.

5. On the same date, the agenda among others was to implement the Amended Bylaws dated

April 23, 2018 and August 17, 2021. The said amended bylaws were not submitted nor approved by

the Housing and Land Use Regulatory Board (HLURB) and Department of Human Settlements and Ur-

ban Development (DHSUD);

Attached herein as ANNEX A and series of the Complaint the copy of the 2018 and 2021 Amended

Bylaws.

The Amended Bylaws in question were the 2018 and 2021 and not the 2014 Amended bylaws issued

by the HLURB contrary to the allegations of the Respondents. What they attached is the Certificate of

Amended Bylaws for the year 2014.

True enough that they implemented the 2018 and 2021 Amended Bylaws without applying it to the

DHSUD.

Thus, Respondents gravely abused their authority to implement a bylaws not approved by the DHSUD.

6. .
The Election Committee (EleCom) Guidelines which was disseminated to Palmera Northwinds

Phase 4A was not sign by the Elected Elecom member who were voted during the general assembly.

Attached herewith as Annex B of the Complaint.

Assuming for the sake of argument that indeed Ms. Enriquez was the EleCom Chair, her signature was

not apparently indicated in the aforesaid guidelines.

signed by certain Maricris Enriquez and Dolorita Velasco. Attached herewith is the affidavit of Ms.

Carmina Sarabia as Annex C.

7. That certain Maricris Enriquez is not a resident of Palmera Northwinds Phase 4A which was

not refuted by the Respondents in their Answer.

8. That the said election guidelines were vague and void. It was stated that the filing of candidacy

is on February 16-19, 2023 (Annex B) but the election was conducted on January 22, 2023. Respon-

dents maliciously perform their duties to still hold their positions as Board of Directors and Officers of

PNP4A

9. That on January 22, 2023 complainants filed an election protest address to Maricris Enriquez

and Dolorita Velasco, but the same were not heeded after confirming that the EleCom will give the an-

swer to their election protest on that date. Contrary to the allegation of the Respondents that there was

no election protest filed. This allegation has no merit at all since their Answer are generally denied all

the allegations in the Complaint without citing their legal bases and evidences.

The letter was attached as Annex D and series.

10. An Affidavit as to non-resolution of the EleCom is hereby attached as Annex E;

11. That an Invitation from the Brgy. Kaypian was called on January 25, 2023 after the com-

plainants asked the Brgy. Chairman for his intervention with regard to the January 22, 2023 PNP4A

Homeowners Association election;

The Pabatid ng Pandinig was attached as Annex E of the Compliant.

The said Barangay hearing was a venue for the all the parties to amicably settle their differences but

no avail. This is contrary to the allegations of the Respondents that there is no election controversy

filed.

12. Contrary to the allegation of the Respondents in their Answer that the election protest was

already prescribed, this is not meritorious since the main case involves specific performance and not

election protest.

13. As to their allegations that some of Complainants are delinquent or members not in

good standing is of no merit. There are no Board Resolution as to their delinquency that was

issued by the Board of Directors in order to declare them delinquent. Respondents make such

allegations without conforming the veracity of thereof.

ISSUES

Whether or not the amendment of the HOA Bylaws was validly enacted and were nullified since it does

not conform to the procedure in amending HOA bylaws implemented by the Department of Human

Settlements and Urban Development (DHSUD) through its R. A. 9904 and its Implementing Revised

Rules and Regulations

PROCEDURALLY AND SUBSTANTIVELY DEFECTIVE.

14. Respondents headed by Mr. Santiago Callueng failed to comply with the procedure for the

amendment of By-laws; No valid meeting of the general membership for the approval of the same and it

was not submitted and approved by the then HLURB and now DHSUD. The bylaws in questioned were

the 2017 and 2021 which were currently implemented by the Respondents.

15. Based on the foregoing, it is clear that the amended bylaws implemented by the respondents

Board of Directors were null and void for having been issued without compliance with the procedural

and substantive law.

16. Procedurally, the amendment of By-laws shall conform with Section 23 and 25, of Article IV of

Department Order 2021-007, Series 2021 or the Implementing Revised Rules of Procedure of R. A 9904

(IRR) which provides that the Articles of Incorporation and/or Bylaws of the association may be

amended by the majority vote of all members of the Board, and majority of all members of the associa-

tion regardless of standing, at a regular or special meeting called for the purpose, or as a result of a

referendum after the proposed amendments are discussed in a regular or special meeting of the associ-

ation members. The association shall file with the DHSUD Regional Office a written application to

amend its Articles of Incorporation and/or its Bylaws accompanied by the other documents.

17. Further, if the amendments to the Articles of Incorporation and/or Bylaws are found not con-

trary to law or public policy and do not adversely affect any interest, the DHSUD Regional Office shall

issue the appropriate Certificate of Amended Articles of Incorporation or Certificate of Amended By-

laws.

18. Thus, the amendments shall take effect upon its approval by the DHSUD with the issuance

of a Certificate of Amended Articles of Incorporation or Certificate of Amended Bylaws which was not

rebutted since the attached Certificate of Amended Bylaws in Respondents Answer was that of year

2014 which is not the subject of the case.

19. Respondents through Mr. Callueng have adamantly failed to submit the said amendments to

the DHSUD despite his knowledge that the same are needed to be approved by the DHSUD. Hence, the

aforesaid amendments dated 2018 and 2021 are considered null and void and should not be imple-

mented in PNWP4A HOA Inc.;

20. As to Respondents allegations that the issuance of the certificate of amended bylaws cannot be

assailed of since it should be brought to the higher authorities. With this, for the information of the Re-

spondents and for their better understanding of law, this Commission has the jurisdiction to decide

and hear the issue if it legal to implement the bylaws which are not applied before the DHSUD and

thus no certificate of amended was therefore issued in its favor.

Whether or not the January 22, 2023 HOA election was declared null and void since the election

guidelines was not crafted by the elected EleCom and its contents were vague and illegal since it is not

in accordance with R. A. 9904 and its Implementing Revised Rules and Regulations.
THE ELECTION ON JANUARY 22,

2023 IS NULL AND VOID.

9904 and its IRR; The election guidelines was crafted and executed by a non EleCom member who is

not validly voted upon as Chairperson during the general assembly. This was not refuted nor denied by

the Respondnets.

22. The Election Guidelines is vague since the filing of candidacy was scheduled on February 16-

19, 2023 but the election was conducted on January 22, 2023. A rational being can notice these in-

fractions of law. The election was already conducted before filing a candidacy.

23. Thus, the election is null and void.

24. As a consequence, the Acknowledge Receipt and Certification if any were issued by DHSUD, it

shall be amended and revoked.

Whether Complainants are entitled to injunctive relief pending the resolution of the instant case, en-

joining all the respondents named above to perform their functions as Board of Directors and Officers

of Palmera Northwinds Phase 4A HOA, Inc. as well as enjoining them to implement and execute the

Amended bylaws dated 2018 and 2021;

COMPLAINANTS ARE ENTITLED

TO INJUNCTIVE RELIEF PENDING

THE RESOLUTION OF THE INSTANT CASE.

25. All Respondents are enjoined to perform their functions as Board of Directors and Officers of

Palmera Northwinds Phase 4A HOA, Inc. as well as enjoining them to implement and execute the

Amended bylaws dated 2018 and 2021 since it is illegal.

26. All the respondents are enjoined to act and perform their function as Board of Directors and

Officers since there is an indication of fraud and deceit in the conduct of election.

27. The Cease-and-desist order was forthwith issued by this Commission;

28. On July 21, 2023 the manifestation and motion to pay surety bond was filed by the Com -

plainants;

29. Based on the above narration, it is clear that Complainants are entitled to the issuance of Final

Injunction under Section 72 of the 2021 HSAC Rules of Procedure, considering that the elements have

been clearly established.

Whether or not Respondents be held perpetually disqualify to run in any appointive or elective position

as Board of Directors and Officers since they violated the R. A. 9904 and its Implementing Revised

Rules and Regulations in the implementation of Amended Bylaws without approval from the HLURB or

DHSUD

RESPONDENTS ARE HELD

PERPETUALLY DISQUALIFY TO

RUN AS BOARD OF DIRECTORS

AND OFFICERS IN ANY ELECTIONS.

ratified and approved by the DHSUD is a ground for them to perpetually disqualify to run as

BOD since it is a prohibited act stated in Rule XIV of the IRR;

31. Moreover, Respondents’ act is a ground for their disqualification since there is gross negligence

in managing the affairs of the association in allowing its EleCom to implement the vague election

guidelines;

32. Also, Ms. Maricris Enriquez and Dolorita Velasco who acted as EleCom without the approval of

general assembly shall be held disqualify to run in any position in the HOA BODs or Officers since

their acts are detrimental to the purpose of the association.

33. Accordingly, for lack of merit of their allegations in their Answer, all the infractions of the 2021

Revised IRR of Republic Act 9904, its laws and regulations was maliciously done by the Respondents.

COMPLAINANTS ARE ENTITLED

TO DAMAGES.

34. Article 2217 of the Civil Code provides that moral damages include physical suffering, mental

anguish, and other similar injury. Though incapable of pecuniary estimation, moral damages may be

recovered if they are the proximate result of the respondents’ wrongful acts or omission;

35. Complainants had been under an extraordinary stressful ordeal in their repeated attempts to

communicate with Respondents. As shown in the various attachments in the complaint, complainants

had repeatedly reached out to respondents in hope of amicably settling the matter and exploring av-

enues to thresh out tier differences without need of resorting to litigation. In response however, Re-

spondents have brushed aside Complainants concerns and simply dared them to fled a case;

36. Because of this, Complainants are experiencing anxiety and moral anguish. Hence, it is sub-

mitted that the award of moral damages in the amount of Fifty Thousand (Php 50, 000.00) each is

reasonable and proper;

37. The Complainants were also forced to seek the assistance of a counsel to be able to make a

claim of what they believe is legally due to them in the amount of Php 100, 000 as Attorney’s Fees;

WHEREFORE, Complainants respectfully pray that after due notice and hearing, the Honorable

Commission render a Decision-

1. DECLARING the Amended Bylaws year 2017 and 2021 of Palmera Northwinds Phase 4A HOA,

Inc. as null and void for being contrary to law;

2. DECLARING the Palmera Northwinds Phase 4A HOA, Inc. January 22, 2023 Election as null

and void since the election guidelines was vague and was not crafted by the elected EleCom;

3. REVOKING the Acknowledgement Receipt or Certification issued by DHSUD if any;

4. DISQUALIFYING Ms. Maricris Enriquez and Dolorita Velasco to run in any appointive or

elected in HOA since their actions are in violation of R. A. 9904 and its IRR;
5. DISQUALIFYING the Respondents to hold, run as Board of Directors or Officers of HOA be-

cause of their continuous violation of R. A. 9904 and its IRR;

6. ORDERING the Respondents to pay the Complainants Moral Damages in the amount of Fifty

Thousand Pesos (Php50, 000.00) each; Attorney’s fees in the amount of One Hundred Thousand Pesos

(Php100,000.00).

Complainants further pray that pending the Resolution of the instant case, a Final Injunction be

issued:

7. PERMANENTLY ENJOINING Respondents from implementing the 2017 and 2017 Amended

By-laws;

8. ORDERING the Respondents who were elected last January 22, 2023 to permanently Cease

and Desist from performing their function as Board or Directors and Officers of Palmera Northwinds

Phase 4A HOA, Inc. and

9. A final Injunction be granted upon termination of proceedings with Complainants having es-

tablished their right to relief.

Other reliefs, just and equitable under the premises, are likewise prayed for.

City of San Fernando, Pampanga. 01 August 2023.

Atty. Carlota DC Manalo

Counsel for Complainants

City of San Fernando, Pampanga