DRAFTING EXERCISE

CASE:
Sometime in March 2015, Mr. Nagoyo attended an inspirational talk on making your
money grow with other individuals in a hotel conference room in Baguio City. He was invited to
the gathering by some investors who shared glowing stories of the profits they earned in a few
short months after they invested their money. Mr. Estafador gave the inspirational talk and
introduced his company he called Mysterio Investment Firm. He also introduced one of his staff,
Mr. Naistir. During the gathering, Mr. Estafador proposed to the attendees a very lucrative
business opportunity and he promised a thirty percent profit on their investment. There was a lot
of good vibes and positive testimony from other investors during the meeting so all the
attendees, including Mr. Nagoyo, decided to invest their money with Mr. Estafador.
Initially, Mr. Nagoyo invested P 500,000. After he received the promised pay outs, he
added to his previous capital another P 500,000 so that his total investment reached P
1,000,000. After a few weeks, demanded the return of his total investment because he had to
fund his ukay-ukay business. He received investment in the form of checks issued by Mr.
Estafador. For reasons unknown, Mr. Estafador instructed Mr. Nagoyo to return the checks. The
checks with Mr. Estafadors signatures were replaced by checks signed by his staff Mr.
Naistir. The checks are BPI checks with the following dates and amounts:
BPI check no. 08093 July 15, 2016 P 250,000
BPI Check no. 08094 August 15, 2016 P 250,000
BPI Check no. 08095 September 15, 2016 P 250,000
BPI Check no. 08096 October 15, 2016 P 250,000
Mr. Nagoyo deposited the checks with his bank BDO SM branch ten days after the date
indicated in each check but the checks were all successively dishonored when sent to BPI and
returned to BDO with the following stamp CLOSED ACCOUNT
As such, Mr. Nagoyo through a notice of dishonour with demand dated December 10,
2016 informed Mr. Estafador and Mr. Naistir of the dishonor of the checks and demanded from
them to make good the said checks within FIVE banking days from receipt of the notice. The
notice was personally received by Mr. Naistir. Mr. Estafador already left for China and could not
be found.

When he received the notice, Mr. Naistir got angry and said he was merely a pawn of Mr.
Estafador. He was employed as just a staff of Mr. Estafador doing clerical jobs and fixing his
schedules for the day. He was not privy to Mr. Estafadors business and did not know what Mr.
Estafador did with all that money. All he knew was that Mr. Estafador had a lot of Chinese
associates he met frequently here and in Hongkong and Mr. Estafador was investing the money
in stocks in Hongkong. He was only working with Mr. Estafador for a few months when he was
pressured to open a BPI account and issue checks to various persons. Mr. Estafador assured him
that there was money to fund the checks and that money would be regularly placed in his
account to fund the checks. Because he needed the job, he trusted Mr. Estafador and issued the
checks. He swore that he did not receive any of the amounts given to Mr. Estafador. He believed
that Mr. Estafador absconded with all the money of the investors.

INSTRUCTIONS:
1. Mr. Nagoyo seeks your help in the drafting of a Judicial-affidavit for B.P. 22. Decide who you
will file the complaint against and the pertinent information you will allege in the complaint-
affidavit. Indicate in the Judicial Affidavit what your annexes as evidence will be.

2. In another universe, Mr. Naistir seeks your help in the drafting of his counter-affidavit. Decide
what defense you will raise and the pertinent information you will allege in the counter-
affidavit. Indicate also what your annexes as evidence will be (if there are).