Republic of the Philippines

MUNICIPAL TRIAL COURT

FIRST JUDICIAL REGION
Branch 8
Baguio City

DURALEX Corporation,
Plaintiff,

Civil Case No. 3928-1

-Versus- For: UNLAWFUL DETAINER and
DAMAGES with Prayer for
PEDRO SAWAC, PRELIMINARY ATTACHMENT
Defendant.
x--------------------------------x

COMPLAINT

WITH UTMOST DEFERENCE TO THE HONORABLE COURT:

PLAINTIFF, by and through undersigned counsels, respectfully state:

1. Plaintiff is a Domestic Corporation, duly formed and existing by virtue of the

laws of the Republic of the Philippines, with office address at Loakan Road,
Baguio City, Benguet, Philippines, herein represented in this action by its Vice
President, Mr. FRANCIS ALLEN T. PALIGAN, JR., of legal age, Filipino, married
and with office address at Loakan Road, Baguio City, Benguet;

2. Defendant is of legal age. Filipino, married, and an occupant of Upper Staff

Building, No. 132, Loakan Road, Baguio City, Benguet, Philippines, where he may
be served with summons and other court processes;

3. Plaintiff DURALEX Corporation is the absolute and legal owner of several

cottages and bunkhouses, the use of which has been given to employees of
Plaintiff DURALEXCORP Corporation as part of their benefits and privileges in
relation to their employment;

4. Defendant was a former employee of Plaintiff DURALEX Corporation and as an

employee thereof, enjoys privileges and benefits granted by Plaintiff DURALEX
Corporation to its employees, among which are the housing privileges;

5. Sometime on June 2009, Plaintiff DURALEX Corporation instituted a redundancy

and retrenchment program as part of its cost saving measures resulting from the
suspension of operation of its two (2) mines, DURALEX Gold Operation (DGO)
and DURALEX Mines (DCM). These resulted to excess of employees and
superfluity of services and positions than what is reasonably demanded and
necessary for the operations and by the actual requirements by the company. For
these reasons, several employees were lawfully terminated from service;
6. As a consequence, Defendant PEDRO SAWAC, was one of the employees who was
terminated from service;

7. As a lawful consequence of his termination, Defendant’s rights and privileges,

among which is his housing benefit consisting his right to continually occupy the
subject premises likewise ceased. Hence, on June 29, 2009, Defendant executed
an Undertaking acknowledging that he is no longer entitled to the company’s
housing benefits and thereby promising to vacate the unit he is occupying on or
before July 28, 2010. Copy of the Undertaking is hereto attached as Annex “A” to
form an integral part hereof;

8. However, on July 28, 2010, Defendant failed to vacate the subject premises in
accordance with his Undertaking. On August 7, 2010, Plaintiff DURALEX
Corporation then sent him a memorandum giving him an option to continually
stay in the said premises provided that he will lease the same at a reasonable
rate. Copy of the Memorandum is hereto attached as Annex “B” to form an
integral part hereof;

9. As such, Defendant adhered and thereby entered and executed a Contract of

Lease with the Plaintiff DURALEX Corporation for the use of the housing unit.
Copy of the Contract of Lease is hereto attached as Annex “C” to form an integral
part hereof;

10. The agreed duration of the Contract of Lease will be one (1) year commencing on
August 1, 2010 and ending on July 31, 2011, renewable at the option of lessor,
Plaintiff DURALEX Corporation.

Likewise, Defendant agreed to a monthly rental of THREE THOUSAND FIVE

HUNDRED PESOS (Php 3,500.00) for the lease of the housing unit;

11. For the first four (4) months of the lease, Defendant had been religiously paying
his rentals. However, commencing on December 31, 2010 up to the present,
Defendant failed and continuously fail to make payments of his rental and
services;

12. Plaintiff DURALEX Corporation then sent several demand letters for non-
payment of rent to Defendant on January 10, 2011 and again, on February 2,
2011. However, notwithstanding the receipt of the said demand letters sent by
Plaintiff DURALEX Corporation, Defendant stubbornly refused to make and
arrange any payment of its accumulated rents for the premises he is occupying in
accordance with the Contract of Lease. In addition, he continues to unlawfully
withheld possession of the subject premises from the Plaintiff DURALEX
Corporation. Copy of the Demand Letters is hereto attached as Annex “D” and
Annex “D-1” respectively;
13. Because of these acts of the Defendant in unlawfully withholding possession of
the subject property and in continuously refusing to pay the rent, Plaintiff
DURALEX Corporation was constrained to seek the assistance of counsels to
protect its interest over the property. Thus, On 28 February 2011, undersigned
counsels sent a last and final written demand to Defendant to pay the rentals due
and to vacate the premises within five (5) days from receipt thereof by the
Defendant. Copy of the final demand is hereto attached as Annex “E” and the
proof of receipt thereof is marked as Annex “E-1” to form an integral part hereof;

14. Notwithstanding having received said final notice to pay and to vacate said
premises and the lapse of time to vacate the same, Defendant continues to
unlawfully withhold possession of the subject premises from Plaintiff DURALEX
Corporation, to its great damage and prejudice;

15. From the time of unlawfully withholding possession from Plaintiff DURALEX
Corporation up to June 30, 2010, Defendant has accumulated an unpaid rent and
services in the amount of TWO HUNDRED FIFTY FIVE THOUSAND FIVE
HUNDRED FIFTY PESOS (Php255,550.00);

16. Due to the continuous unlawful possession by the Defendant of the subject
premises, Plaintiff Corporation is effectively deprived of the use and enjoyment
of its property;

BY

WAY OF APPLICATION FOR THE

ISSUANCE OF A WRIT OF PRELIMINARY ATTACHMENT

Petitioner re-pleads and adopts the foregoing or so much thereof as may be

relevant thereto.

17. Defendant as of June 30, 2010, has an accumulated unpaid rentals and services
due to the Plaintiff DURALEX Corporation in the amount of TWO HUNDRED
FIFTY FIVE THOUSAND FIVE HUNDRED FIFTY PESOS (Php255,550.00);

18. The Defendant is among those who filed a labor case in the National Labor
Relations Commission (NLRC) against the Company for separation pay
differential. The filing of the labor case do not question the legal bases of the
retrenchment program but rests on the premise that the employees are entitled
to additional separation benefits under existing company practice;

19. A decision in the aforesaid labor case was rendered by the Honorable Labor
Arbiter Richard Dale V. Escolano dated 23 August 2007 awarding the total of
TWO MILLION FIVE HUNDRED TWENTY SIX THOUSAND NINE HUNDRED
TWO AND 67/100 PESOS (Php2,526,902.67) to all the complaining employees
which includes the Defendant herein. A copy of the decision is hereto attached as
Annex “F” to form an integral part hereof;
20. This decision was upheld by the Supreme Court on December 13, 2004 and has
now become final and executory. However, there exists several discrepancies in
the computation of the award i.e. how many were their declared legitimate
dependents and as such the same is scheduled for pre-execution conference to
determine the actual and definite amount due to each employees. A copy of the
Supreme Court decision is hereto attached as Annex “F” to form an integral part
hereof;

21. Defendant has no sufficient property to satisfy his obligations to the Plaintiff
DURALEX Corporation for the satisfaction of any judgment that may be rendered
and recovered in the above-entitled case other than his existing award and lien
over the aforesaid labor case;

22. Respondent in the aforesaid labor case had deposited the judgment award for
the satisfaction of the claims of all the complaining employees;

23. Upon receiving the award due him, there is clear and evident danger and
possibility that the Defendant will remove and dispose of his award and lien over
the aforesaid labor case including the big probability and ability of flight by the
Defendant to immediately move out within the premises of Plaintiff DURALEX
Corporation in order to escape liability with the intent to defraud his creditors;

24. Plaintiff DURALEX Corporation is willing and able to post a bond for the issuance
of a Writ of Preliminary Attachment in an amount to be fixed by the court, not
exceeding TWO HUNDRED FIFTY FIVE THOUSAND FIVE HUNDRED FIFTY
PESOS (Php255,550.00);which is the Plaintiff’s claim herein;

25. As a result of Defendant’s bad faith and malevolent schemes, Defendant is

therefore liable for moral and exemplary damages as well as attorney’s fees and
cost of litigation. The exercise of bad faith on the part of Defendant entitles the
Plaintiff to claim for moral damages. Although such injuries could not be
quantified, Defendant should definitely indemnify the Plaintiff. However, the
Plaintiff only postulates to be indemnified by way of moral damages, modestly
assessed in the amount of TEN THOUSAND PESOS (Php10,000.00). This is just
to prove that Plaintiff’s quest in this instant Petition is not to enrich itself but to
protect and upright and for legitimate cause;

26. With the undeniable facts that Defendant acted in wanton and in disregard of
Petitioner’s right, thereby causing grave and irreparable injury to Plaintiff,
Defendant should likewise be assessed, as explained above, exemplary damages
in the amount of TEN THOUSAND PESOS (Php10,000.00);

27. This action is not covered by the Katarungang Pambarangay Law as the Plaintiff
DURALEX Corporation is a juridical entity.
 PRAYER

WHEREFORE, premises duly considered, it is most respectfully prayed that:

A. Pending the hearing of this case, a Writ of Preliminary Attachment be issued

against the judgment award of the Defendant in the above-stated labor case to
serve as security for the satisfaction of any judgment that maybe recovered
herein;

B. After trial on the merits, judgment be issued:

1. Ordering the Defendants to vacate the premises in question with a correlative

order for them to permanently desist from disturbing the Plaintiffs`
possession over the premises in question;

2. Ordering Defendant to pay the Plaintiff the following:

a. To pay the Plaintiff DURALEX Corporation the sum of TWO HUNDRED

FIFTY FIVE THOUSAND FIVE HUNDRED FIFTY PESOS
(Php255,550.00) with interest to be imposed by the Honorable Court for
the reasonable use and occupation of the subject property from July 29,
2001 until he vacates the subject premises;

b. To pay moral damages in the amount of TEN THOUSAND PESOS

(Php10,000.00);

c. To pay exemplary damages in the amount of TEN THOUSAND PESOS

(Php10,000.00);

d. To pay Plaintiff DURALEX Corporation the sum of TEN THOUSAND PESOS

(Php 10,000.00) as and by way of Attorney’s Fees and ONE THOUSAND
PESOS (Php 1,000.00) as Appearance fees; and

e. To pay the costs of this suit.

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

Respectfully submitted this 8th day of May 2011, done in the City of Baguio,
Philippines.

DURALEX CORPORATION
Benguet District Operation

Represented by:

MR. FRANCIS ALLEN T. PALIGAN JR.

 Vice-President-Benguet District

ATTY. ROXANNE V. PAGLINGAYEN

Attorney for the Plaintiff
3/F Porta Vaga Bldg.,
Session Rd., Baguio City
Roll No. 12345678
PTR No. 976031 01/05/11
IPB No. 8500657 01/06/11

REPUBLIC OF THE PHILIPPINES }

DONE: IN THE CITY OF BAGUIO } S.S.
X ========================= X

VERIFICATION AND CERTIFICATION

I, FRANCIS ALLEN T. PALIGAN JR., of legal age, Filipino citizen, married, of legal age,
Filipino citizen and with office address at URDHI Compound, Baguio City, herein
representing DURALEX Corporation, after having been duly sworn to in accordance with
law, hereby depose and state:

1. That I represent the Plaintiff Corporation in the above-entitled Complaint;

2. That I have caused the preparation and filing of the foregoing Complaint;
 3. That I have read the contents thereof and that the allegations therein are true
and correct of my own personal knowledge and or based on true and authentic
records and documents;

4. That I hereby certify that I have not filed the same or similar action or
proceeding against the herein Defendants before any court or tribunal in the
Philippines or abroad. If I should learn that a similar action or proceeding
against the herein Defendants has been filed or is pending before any other court
or tribunal, I shall notify the court within five (5) days from such notice.

IN WITNESS WHEREOF, I have hereunto signed this verification this 8 th day of May
2011.

FRANCIS ALLEN T. PALIGAN JR.

Affiant
CTC No. 15364394032

SUBSCRIBED AND SWORN to before me in the City of Baguio this 8th day of May 2011
by Francis Allen T. Paligan, Jr., who has satisfactorily proven his identity to me through his
Non-Professional Driver’s License No. 08301984 valid until August 30, 2012, that he is the
same person who personally signed the foregoing affidavit before me and acknowledged
that he executed the same.

LIYA ORTEGA-RODRIGUEZ
Notary Public
Until December 31, 2012
Doc. No. __80__; PTR No. 050183/Baguio City/01-11-11
Page No. __16_; Roll of Atty. No. 8121983
Book No. I ; IBP Lifetime Membership No. 9031984
Series of 2011. Baguio-Benguet