Republic of the Philippines

7th Judicial Region

REGIONAL TRIAL COURT
Branch ___
Cebu City

LUKE DEIDER,
Plaintiff,

-versus-

Civil Case No. ______

SURIGAO ISLAND SALES For: Collection of Sum of
CORPORATION and ARIANNE Money with Damages and
SANTOS, with Application for Writ of
Defendants. Preliminary Attachment
x-------------------------------------------x

COMPLAINT

PLAINTIFF, through the undersigned counsels, and unto this

Honorable Court, most respectfully states that:

PARTIES

1. Plaintiff LUKE DEIDER, herein after referred to as “DEIDER”, is an

American citizen, of legal age, single, and currently residing at 1016
Condominium, Luzon Avenue, Cebu Business Park, Cebu City.
Plaintiff may be served with orders and processes of this Honorable
Court through his counsel of record, Babiano & Associates Law
Office with address at 605, Cebu Holdings Center Bldg., Cardinal
Rosales Ave, Cebu City.

2. Defendant SURIGAO ISLAND SALES CORPORATION, herein

after referred to as “SISC”, is a domestic corporation duly organized

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 and existing by and under the laws of the Philippines, with its
principal place of business at Hinatuan, Surigao del Sur, per last
General Information Sheet (GIS) filed with the Securities and
Exchange Commission (SEC), and may be served with orders and
processes of this Honorable Court through its counsel at Suite 1508
Keppel Center Samar Rosales Ave, Ayala-Cebu Business Park.

3. Defendant ARIANNE SANTOS, herein after referred to as

“ARIANNE”, is a Filipino citizen, of legal age, single, and is the
president of SISC. The defendant’s address as listed in the General
Information Sheet (GIS) is Unit 12, 123 Building, Magallanes St.,
Lacasa, Hinatuan, Surigao del Sur. However, defendant may no
longer be found at said address.

MATERIAL ALLEGATIONS

4. DEIDER has been a supplier of SISC of raw materials such as cotton

and other fabrics needed by the corporation in the production of its
furniture business.

5. Sometime in December 2009, SISC, through its President, herein

defendant ARIANNE, sent a letter seeking for financial assistance
from DEIDER in the amount of Twenty Five Million Four Hundred
Thousand Pesos (P25,400,000.00) for the lot and warehouse needed
for the planned company expansion in Cebu City. A copy of the
aforementioned letter is attached in this complaint as Annex “A”.

6. With the promise of continued business transactions during the

expansion, DEIDER agreed to loan the said amount of Twenty Five
Million Four Hundred Thousand Pesos (P25,400,000.00) in his
response letter addressed to the company through its President, with
the condition that an official document be issued by SISC indicating
that DEIDER is its creditor. A copy of the response letter is attached
herein as Annex “B”.

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7. Pursuant to DEIDER’s condition, ARIANNE, through her sister and
vice-president of SISC, Rona Santos, issued a letter dated February
23, 2010, which affirmed and confirmed that DEIDER is a creditor of
SISC in the amount of Twenty Five Million Four Hundred Thousand
Pesos (P25,400,000.00). A copy of the letter is attached herein as
Annex “C”. Moreover, a copy of the Board Resolution authorizing
Rona Santos and defendant ARIANNE to enter into a loan agreement
in behalf of SISC is attached in this complaint as Annex “D”.

8. Furthermore, the same February 23, 2010 letter also indicated that the
debtor corporation, SISC, undertakes that after the loaned amount is
deposited to the bank account of the corporation, a Promissory Note in
favor of DEIDER shall be executed to secure DEIDER’s creditor
position in SISC and that the said promissory note is to be the joint
obligation of defendants SISC and ARIANNE.

9. In his response, DEIDER agreed to deposit to the corporation’s bank

account the amount requested to be loaned to SISC in three different
transactions. The first transaction was done on March 1, 2010 in the
amount of Eight Million Pesos (P8,000,000.00). Then on April 1,
2010, the second installment of the loan amounting to Nine Million
Pesos (P9,000,000.00) was deposited to the same SISC bank account.
Finally, the remaining Eight Million Four Hundred Thousand Pesos
(P8,400,000.00) was sent on May 1, 2010. A copy of the deposit
receipt for the deposit dated March 1, 2010 is attached herein as
Annex “E-1”, the deposit receipt for the deposit dated April 1, 2010
as Annex “E-2”, and the deposit receipt for the deposit dated May 1,
2010 as Annex “E-3”.

10. On May 3, 2010, two days after the full amount of the loan has been
deposited to the bank account of SISC, SISC, through Rona Santos,
executed a Promissory Note in favor of DEIDER and indicated that
the obligation was to become due and demandable three (3) years
from its execution. Moreover, the same promissory note provided that
the obligation is to be interest-bearing at a rate of twenty-five percent
(25%) per annum, to wit:

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 I, RONA SANTOS, executed this document in behalf of Surigao Island
Sales Corporation (SISC) and Ms. Arianne Santos (MS. ARIANNE),
for the VALUE RECEIVED, promise to pay to the order of LUKE
DIEDER, at his residence in 1016 Condominium, Luzon Avenue,
Cebu Business Park, Cebu City, the principal amount of TWENTY-
FIVE MILLION FOUR HUNDRED THOUSAND PESOS
(P25,400,000.00) on or before 3 May 2013. In addition to the
foregoing, SISC and MS. ARIANNE promise to pay interest at the rate
of Three (25%) percent per annum, starting the 3rd day of May, 2010
until this note is fully paid.

3 May 2010, Cebu City, Philippines.

(Sgd.) RONA SANTOS

Vice-President of SISC

A Copy of the promissory note is attached herein as Annex “F”.

11. When the loan fell due on May 3, 2013, DEIDER demanded for
payment. Three demand letters were sent on different occasions to
SISC and ARIANNE. The demand letters were dated and sent on the
following dates: (1) May 5, 2013; (2) June 5, 2013; and (3) July 5,
2013. Copies of the demand letters are attached herein as Annex “G-
1”, Annex “G-2” and Annex “G-3”.

12. However, despite repeated demands for the payment of the loan,
these were all unheeded by SISC and ARIANNE.

13. In view of the defendants’ refusal to pay, plaintiff DEIDER was

constrained to sue in court, and as a result incurred litigation expenses
in the amount of P100,000 and attorney’s fees in the amount of
P50,000.

APPLICATION FOR PRELIMINARY ATTACHMENT

Plaintiff further alleges that:

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 15. Plaintiff has a valid and sufficient cause of action against the
defendants regarding the collection of sum of money which is already
due and demandable.

16. The defendant ARIANNE is a party on whom summons may be

served by publication as her whereabouts are unknown and cannot be
ascertained by diligent inquiry.

17. The defendant SISC has removed or disposed of its properties with
intent to defraud its creditors by placing the properties purchased by
the corporation in the names of KERVEN FLORES, RAISAH
TUMULAK, NIGEL GONZAGA and ARIANNE SANTOS thereby
rendering nugatory and ineffective whatever money judgment this
honorable court may render in this case.

18. There is no sufficient security for the claim sought to be enforced by

the action, and that the amount due the applicant is as much as the
sum for which the order is granted above all legal counterclaims.

19. Plaintiff is willing to put up a bond for the issuance of a writ of

preliminary attachment in an amount to be fixed by the court, not
exceeding the sum of P25,400,000.00 which is the plaintiff’s claim
herein.

PRAYER

WHEREFORE, premises considered, it is most respectfully prayed

unto this Honorable Court that:

1. A writ of preliminary attachment be immediately issued over the

properties of SISC and ARIANNE as security for the satisfaction of
any judgment that may be recovered.

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2. The defendants be ordered to pay to plaintiff the amount of
TWENTY-FIVE MILLION FOUR HUNDRED THOUSAND (P25,
400,000) with interest rate of 25% per annum from the time of default
of the obligation.

3. The defendants be ordered to pay attorney’s fees in the amount of

P50, 000, and litigation expenses in the sum of P100,000.

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

Cebu City, Philippines, this 16th day of August 2018.

BABIANO & ASSOCIATES LAW OFFICE

Counsel for Plaintiff
605, Cebu Holdings Center Bldg.,
Cardinal Rosales Ave, Cebu City.
Tel No. (032) 987-6543
Email: babiano_andassociateslaw@gmail.com

For the firm:

ATTY. KIM MARIE BABIANO

Roll of Attorneys No. 70638
PTR NO. 12345, 02/06/18, Cebu City
IBP NO. 67890, 01/04/18, Cebu City
MCLE Comp. No. VI-000748322, 01/02/18

ATTY. ALVIN HERAMIZ

Roll of Attorneys No. 72364
PTR NO. 14325, 05/16/18, Cebu City
IBP NO. 10304, 10/04/18, Cebu City
MCLE Comp. No. VI-000748322, 01/02/18

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 ATTY. KENNETH OPINA
Roll of Attorneys No. 71248
PTR NO. 05105, 05/17/18, Cebu City
IBP NO. 69690, 11/24/18, Cebu City
MCLE Comp. No. VI-000748322, 01/02/18

ATTY. FAYE MICHELLE REGIS

Roll of Attorneys No. 75630
PTR NO. 89745, 02/14/18, Cebu City
IBP NO. 54687, 06/11/18, Cebu City
MCLE Comp. No. VI-000748322, 01/02/18

ATTY. MA. CHRISYL YBAÑEZ

Roll of Attorneys No. 74238
PTR NO. 55365, 08/13/18, Cebu City
IBP NO. 26879, 04/12/18, Cebu City
MCLE Comp. No. VI-000748322, 01/02/18

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REPUBLIC OF THE PHILIPPINES)
CITY OF CEBU ) SS.
x----------------------------x

VERIFICATION AND CERTIFICATION OF NON FORUM-

SHOPPING

I, LUKE DEIDER, single, of legal age, American citizen, and

currently residing at 1016 Condominium, Luzon Avenue, Cebu Business
Park, Cebu City, after being sworn in accordance with law, hereby depose
and say:

I am the plaintiff in this case above-entitled case; that I have caused

the preparation of the above Complaint and I have read the same and
understood the contents thereof; that the allegations contained therein are
true and correct of my own personal knowledge and based on authentic
records.

That I further certify that: I have not theretofore commenced any other
action or proceeding or filed any claim involving the same issues or matter in
any court, tribunal, or quasi-judicial agency and, to the best of my knowledge,
no such action or proceeding is pending therein; if I should thereafter learn that
the same or similar action or proceeding has been filed or is pending before the
Supreme Court, the Court of Appeals, or any other tribunal or quasi-judicial
agency, I undertake to report such fact within five (5) days therefrom to the
court or agency wherein the original pleading and sworn certification
contemplated herein have been filed.

IN WITNESS WHEREOF, I have hereunto set my hand this 16th of

August 2018 at Cebu, City, Philippines.

LUKE DEIDER
Affiant

SUBSCRIBED AND SWORN TO before me, this 16th day of August,

2018, in the City of Cebu by LUKE DEIDER, with Passport No. 31195855,

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issued on January 17, 2016 at Cebu City, known to me as the same person
who personally signed the foregoing instrument before me and avowed
under penalty of law to the whole truth of the contents of said instrument.

WITNESS MY HAND AND SEAL this 16th day of August, Cebu City,
Philippines.

FAYE MICHELLE REYES

Doc. No.___ Notary Public
Regional Trial Court of Cebu City, San
Page No.___ Fernando and Carcar, Philippines
Book No.___ Commission No. 09-56 UNTIL 12/31/18
Series of 2018. RM. 501, SM Seaside, Cebu City
Roll of Attorney’s No. 87753
IBP No. 46637, Cebu City, 01/06/18
PTR No. 0097621, Cebu City, 01/06/18

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