FIRST DIVISION
G.R. No. 228135 (Formerly UDK-15706), June 16, 2021
STO. NIÑO VILLAGE HOMEOWNERS' ASSOCIATION, INC.,• MEMBERS OF THE BOARD OF DIRECTORS NAMELY, JACINTO L. JAMERO, FERNANDO B. YU, ANNABELLE T. AMOR, VINCE JEROME C. YAP, OFELIA C. FRUELDA, BRENDA U. ROLIDA, LIGAYA L. BATACLAN, VICTOR V. GARCIA, CARMENCITA G. LEYCO, REYNALDO A. LIM, ANTONIO D. OCAMPO, ERNESTO C. RIÑA,•• PERRI P. SIA, ROBERTO S. SIGUAN,••• AND MARIA LOURDES "MALOU" P. CASTRO, Petitioners, v. AMADO Y. LINTAG,•••• Respondent.
D E C I S I O N
CAGUIOA, J.:
This is a Petition for Review on Certiorari1 (Petition) filed under Rule 45 of the 1997 Rules of Court (1997 Rules) against the Decision2 dated July 29, 2016 (assailed Decision) and Resolution3 dated October 5, 2016 (assailed Resolution) rendered by the Court of Appeals Eighteenth (18th ) Division (CA) in CA-G.R. CEB-SP No. 08807.
The assailed Decision and Resolution vacated the Decision4 dated August 15, 2014 issued by the Board of Commissioners (BOC) of the Housing and Land Use Regulatory Board (HLURB) in HLURB Case No. HOA-CVR-120211-0688 (HLURB-BOC Decision) concerning the following resolutions issued by the members of the Board of Directors (collectively, petitioner-directors) of Sto. Niño Village Homeowners' Association, Inc. (SNVHAI) challenged by respondent Amado Lintag (Lintag): (i) Resolution No. 3 dated August 23, 2010 imposing new parking regulations; (ii) Resolution No. 5 dated September 4, 2010 imposing increased water rates; and (iii) Resolution No. 6 dated September 20, 2010 imposing a special assessment for the constitution of a drainage fund (collectively, disputed board resolutions).
x x x The crux of the controversy started when, on [August 23, 2010] , [petitioner-directors, as Board of Directors of SNVHAI] passed Resolution No. 3 declaring all streets inside the Sto. Niño Village as a no parking zone, subject to exceptions, and imposed fines for the violation thereof. [Lintag] was affected by said Resolution because his son owned a fleet of taxicabs which [he parks] along Eagle and Maya streets within Sto. Niño Village. [Lintag] refused to pay the parking fine imposed by [SNVHAI] as he found it unreasonable. Moreover, he asserted that he was authorized by Anastacio Antonio O. Arias, Jr. to park the vehicles on the roads adjoining their property. Anastacio is an heir of the registered owner of the property traversed by the subdivision roads where [the taxicabs] were parked. [Lintag] stressed that [these] roads are not owned by [SNVHAI] as the title to [these roads] still belonged to the Arias, Ouano and Cusi [families].
Likewise, [Lintag] assailed the validity of Resolution No. 5, moving for the increase of water rates, and Resolution No. 6 imposing a special assessment for a drainage fund. [Lintag] claimed that [these resolutions] were issued without consultation [and approval of] the majority of the association members in violation of Section 12(b) of Republic Act [No. (RA)] 9904 or the Magna Carta for Homeowners and Homeowner[s'] Associations.
In view of [Lintag's] obstinate refusal to pay the parking fines and special assessment, his payment for association monthly dues, water and electricity for the month of April 2011 was not accepted by [SNVHAI]. This prompted [Lintag] to consign his payment with the Clerk of Court of the Regional Trial Court of Cebu City [(RTC)]. On [April 12, 2011], the water supply of [Lintag] was [cut off] notwithstanding his payment of the corresponding water fees. Thus, [Lintag] filed a Complaint dated [November 25, 2011] for annulment of resolutions, illegal assessments with application for cease and desist order [(HLURB Complaint)] against x x x [SNVHAI] and [petitioner-directors], which was docketed as HLURB Case No. HOA-CVR-120211-0688.
In their defense, [petitioner-directors] admitted passing the [disputed board resolutions] but claimed that these were duly ratified by [SNVHAI's members] during the General Membership Meeting held on [December 12, 2011], [They] contended that under [SNVHAI's by-laws], every member must pay membership fees, dues and special assessments. Further, every member must abide with the circulars and issuances promulgated by the governing [B]oard of [Directors. When [Lintag] failed to pay the parking lines and special assessment and continued to violate the association rules, [petitioner-directors] were forced to declare him as a delinquent member. Consequently, as a sanction for [Lintag's] continuous defiance to the association's rules and regulations, [SNVHAI] sent him a Notice of Water Disconnection. When [Lintag] failed to settle his account [consisting of parking fines and the special assessment for the drainage fund], [SNVHAI cut off] his water connection.5 (Emphasis supplied)
THEREFORE, PREMISES COSIDERED, this Board finds in favor of [Lintag] and against [SNVHAI and petitioner-directors].
x x x Resolution No. 3 on No Parking regulations dated August 23, 2010 x x x and Resolutions Nos. 5 on Increase of Water rates, and 6 on Drainage Fund x x x are declared null and void rendering [them] ineffective from then on (sic) for x x x not having [been] properly ratified by the general membership of [SNVHAI].
[SNVHAI and petitioner-directors], therefore are jointly and severally ordered to:1. Pay the actual damages suffered by [Lintag] in rehabilitating [his] old water pump to the tune of [P]27,000.00;
2. Pay the litigation expenses in the total amount of FORTY THOUSAND ([P]40,000.00) PESOS;
3. Pay to [the HLURB] the amount of FIVE THOUSAND ([P]5,000.00) PESOS for blatantly violating [RA] 9904 and its [Implementing Rules and Regulations (IRR)].
SO ORDERED.6chanRoblesvirtualLawlibrary
WHEREFORE, premises considered, the appeal is GRANTED IN PART and the Decision of the Regional Office is MODIFIED accordingly, as follows:
- Declaring SNVHAI Resolution No. 3 valid;
- Dismissing the [HLURB Complaint] with regard to SNVHAI Resolution No. 5 and Resolution No. 6 for being moot and academic;
- Ordering [SNVHAI and petitioner-directors], jointly and severally to pay [the HLURB] an administrative fine of {P]5,000.00 for violation of Section 22(b) of [RA] 9904;
- Ordering [SNVHAI] to immediately reconnect [Lintag's] water supply without charging him any reconnection fee, but subject to the updating of payment of his water bills without interest; and
- Ordering [Lintag] to withdraw the amounts he had consigned with the [RTC] and to remit the same to the association; and the latter, to accept payments without charging any interest or late payment charges insofar as the payments consigned are concerned[.]
SO ORDERED.7
WHEREFORE, in view of all the foregoing considerations, the [Petition for Review] is PARTIALLY GRANTED. The [HLURB-BOC Decision] is VACATED and SET ASIDE. A new one is entered as follows:1.) [The disputed board resolutions] are declared void in accordance with the [August 3, 2012] Decision of the HLURB Regional Office, which was not appealed by [SNVHAI];
2.) [SNVHAI] is ordered to pay [Lintag] actual damages in the amount of [P]27,000.00 and litigation expenses in the total amount of [P]40,000.00;
3.) [SNVHAI] and [petitioner-directors] namely[,] Jacinto L. Jamero, Fernando B. Uy, Annabelle T. Amor, Vince Jerome C. Yap, Ofelia C. Fruelda, Brenda U. Rolida, Ligaya L. Bataclan, Victor V. Garcia, Carmencita G. Leyco, Reynaldo A. Lim, Antonio D. Ocampo, Ernesto C. Riña, Perri P. Sia, Robert S. Siguan, and Maria Lourdes "Malou" P. Castro, are jointly and severally ordered to pay to the [HLURB] an administrative fine of [P]5,000.00 for violating Section 22(b) of [RA] 9904. Further, the aforementioned [petitioner-directors] are permanently disqualified from being elected or appointed as member[s] of the board, officers], or employee[s] of [SNVHAI] pursuant to Section 23 of [RA] 9904;
4.) [SNVHAI] is ordered to immediately reconnect [Lintag's] water supply without charging him any rcconnection fee, but subject to the updating of payment of his water bills without interest; and
5.) [Lintag] is ordered to withdraw the amounts he had consigned with the [RTC] and to remit the same to [SNVHAI]; and the latter, to accept payments without charging any interest or late payment charges insofar as the payments consigned are concerned.
SO ORDERED.15
It was just last week that one of the children of [Lintag], Victor B. Lintag, informed the undersigned counsel about the death of their father who is the respondent in this case, which was on September 12, 2015. A copy of the death certificate of the late Amado G. Lintag is integrated hereto as [Annex] "A".
Victor, who is not a lawyer[,] was of the belief that the death of their father will have no effect whatsoever in this case; that there would be no consequences. That was why he opted not to inform the undersigned counsel as soon as possible. x x x
For this belated notification, the undersigned counsel sincerely apologizes. There was no intention on his part to avoid compliance with his duty under Section 16, Rule 3 of the [1997 Rules].28 (Emphasis omitted)
SECTION 10. Rights and Powers of the Association. – An association shall have the following rights and shall exercise the following powers:
(a) Subject to consultation and with the approval of a simple majority of the members, adopt and amend the articles of incorporation and by[-]laws, rules and regulations, pursuant to existing laws and regulations; (b) In behalf of its members, institute, defend, or intervene in litigation and/or administrative proceedings affecting the welfare of the association and the subdivision/village as a whole, excluding, however, disputes that are not the responsibility of the association; (c) Regulate the use, maintenance, repair, replacement and modification of common areas and cause additional improvements to be made part of the common areas: Provided, That the aforementioned do not contradict the provisions of the approved subdivision plan; (d) Regulate access to, or passage through the subdivision/village roads for purposes of preserving privacy, tranquility, internal security, safety and traffic order: Provided, That: (1) public consultations are held: (2) existing laws and regulations are met; (3) the authority of the concerned government agencies or units are obtained; and (4) the appropriate and necessary memoranda of agreement are executed among the concerned parties; (e) Hire, discharge or contract managing agents and other employees, agents and independent contractors to ensure the full functioning and operation of the association; (f) Subject to consultation with and the approval of a simple majority of the association members, acquire, hold, encumber and convey in its own name any right, title to or interest in real or personal property: Provided, That such approval of a simple majority of the association members shall not be required for the acquisition, holding, encumbrance and conveyance of personal properties in amounts not exceeding ten percent (10%) of the association's cash holdings for its use in the course of its normal operations; (g) Ensure the availability of quality water services at a reasonable price and, at its option, administer and manage the waterworks system of the subdivision; (h) Upon consultation, grant easements, leases, concessions and authority to use common areas and petition for or consent to the vacation of streets and alleys: Provided, That the said grant of easements, leases, concessions and authority shall not be applicable to access roads, main interconnecting roads, alleys and sidewalks within the subdivision; (i) Impose or collect reasonable fees for the use of open spaces, facilities, and services of the association to defray necessary operational expenses, subject to the limitations and conditions imposed under the law, the regulations of the board and the association's by[-]laws; (j) Cause compliance with regard to height regulations, easements, use of homes, buildings, edifices, or structures that may be built within the subdivision, in accordance with the National Building Code, zoning laws, HLURB rules and regulations, existing local ordinances, and existing deeds of restriction; (k) Subject to consultation and with the approval of a simple majority of the association members, allow the establishment of certain institutions such as, but not limited to, schools, hospitals, markets, grocery stores and other similar establishments that will necessarily affect the character of the subdivision/village in terms of traffic generation, and/or opening the area to outsiders which may result in the loss of privacy, security, safety, and tranquility to its residents, in accordance with the National Building Code, zoning laws, existing local ordinances, HLURB rules and regulations, and existing jurisprudence: Provided, That such prior approval shall not be necessary for the establishment of sari-sari stores, home industries and similar small-scale business enterprises within the subdivision/village classified as socialized housing; (l) Suspend privileges of and services to and/or impose sanctions upon its members for violations and/or noncompliance with the association's by[-]laws, and rules and regulations; (m) Petition for the creation of a separate barangay, independently or together with neighboring subdivisions: Provided, That all the requirements of the Local Government Code of 1991 are met; and (n) Exercise any other powers conferred by the by[-]laws and the HLURB necessary for the governance and operation of the association. (Emphasis supplied)
Daytime and nighttime parking | - P200.00 per violation |
Overnight parking from 12:00 AM to 6:00 AM | - P200.00 per violation |
SECTION 22. Prohibited Acts. – It shall be prohibited for any person:
x x x
(b) To deprive any homeowner of his/her right to avail of or enjoy basic community services and facilities where he/she has paid the dues, charges, and other fees for such services[.] (Emphasis supplied)
SECTION 9. Delinquent Member. – The by[-]laws shall provide for guidelines and procedures in determining who is a delinquent member, or a member not in good standing, and to prescribe the administrative sanctions to be imposed on such member. The right to due process shall be observed in cases where administrative sanctions are imposed on a delinquent member.
a) Pay his membership dues, association dues, special assessments and such other fees which may be assessed or levied against him.
x x x
e) Comply with the [b]y-[l]aws[,] [r]ules and [regulations, resolutions, orders, circulars, and other regulatory measures that the SNVHAI may promulgate from time to time. x x x43
"Section 2. Termination and suspension of membership as provided under x x x the SNVHAI By[-]Laws shall mean the refusal or denial of the member concerned from enjoying the privileges and services normally accorded to a member of good standing[,], including the disconnection of water services. x x x"46 (Emphasis supplied; underscoring omitted)
Endnotes:
• Also appears as Sto. Nino Village Homeowners' Association, Inc. in some parts of the rollo.
•• Also appears as Ernesto C. Rina in some parts of the rollo.
••• Also appears as Robert S. Siguan in some parts of the rollo.
•••• Also appears as Amado G. Lintag in some parts of the rollo. Represented herein by his heirs namely, Leonida B. Lintag, Juanita B. Lintag, Victor B. Lintag, Amado B. Lintag, Perpetuo B. Lintag, and Leonora L. Upham. See rollo, pp. 525-526.
1Rollo, pp. 2-31, excluding Annexes.
2 Id. at 32-41. Penned by Associate Justice Germano Francisco D. Legaspi, with the concurrence of Associate Justices Gabriel T. Ingles and Marilyn B. Lagura-Yap.
3 Id. at 42-44.
4 Penned by Commissioners Emmanuel F. Esguerra, Linda L. Malenab-Hornilla and Antonio M. Bernardo. See id. at 33, 40.
5 Id. at 33-34.
6 Id. at 34-35.
7 Id. at 35.
8 MAGNA CARTA FOR HOMEOWNERS AND HOMEOWNERS' ASSOCIATIONS, January 7, 2010.
9Rollo, pp. 35-36.
10 See id. at 36.
11 Id.
12 Id.
13 Id. at 33.
14 Id. at 37.
15 Id. at 40-41.
16 Id. at 37-38.
17 Id. at 38.
18 Id. at 38-39.
19 The provision states in part:chanroblesvirtualawlibrarySECTION 22. Prohibited Acts. – It shall be prohibited for any person.
x x xx x x x (Emphasis supplied)
(b) To deprive any homeowner of his/her right to avail of or enjoy basic community services and facilities where he/she has paid the dues, charges, and other fees for such services;
20 The provision states:
SECTION 23. Penalties and Sanctions. – Any person who, intentionally or by gross negligence, violates any provision of this Act, fails to perform his/her functions under this Act and/or violates the rights of the members, shall be punished with a fine of not less than Five thousand pesos (Php5,000.00) but not more than Fifty thousand pesos (Php50,000.00) and permanent disqualification from being elected or appointed as member of the board, officer or employee of the association, without prejudice to being charged before a regular court for violations of the provisions of the Revised Penal Code. Civil Code and other pertinent laws.
If the violation is committed by the association, the members, officers, directors or trustees of the association who have actually participated in. authorized, or ratified the prohibited act shall be held liable.
If the violation is committed by the employees and agents who acted in gross violation of the provisions of this Act, the officers, directors or trustees, or incorporators of the association shall be jointly and severally liable with the offending employees, agents, and the association.
21Rollo, pp. 39-40.
22 Id. at 42-44.
23 Id. at 5.
24 Id.
25 Id. at 1, 2.
26 Id. at 515-523. Denominated as "Comment to the Petition for Review dated November 11, 2016."
27 Id. at 525-527. Denominated as "Notice of Death of Amado G. Lintag."
28 Id. at 525.
29 Id. at 525-526.
30 Id. at 586-589. Denominated as "Reply to Comment to the Petition for Review on Certiorari with Humble Motion to Admit."
31 See id. at 16-19.
32 See id. at 20-21.
33 Id. at 22-24.
34RNB Garments Philippines, Inc. v. Ramrol Multi-Purpose Cooperative, G.R. Nos. 236331 & 236332, September 14, 2020, p. 9, accessed at < https://sc.iudiciary.gov.ph/16355/ >.
35 Id.
36 See rollo, pp. 17-18.
37RNB Garments Philippines, Inc. v. Ramrol Multi-Purpose Cooperative, supra note 34, at 9-10, citing Maricalum Mining Corp. v. Remington Industrial Sales Corp., 568 Phil. 219, 229 (2008).
38Rollo, p. 124.
39 Id. at 142-144.
40 Id. at 142.
41 RA 9904, Sec. 3(f). Emphasis supplied.
42 See rollo, p. 34.
43 Id. at 20.
44 Id. at 448.
45 Id. at 448-449.
46 Id. at 449.
47 Id.
48 CIVIL CODE, Art. 2199.
49 The provision states:chanroblesvirtualawlibraryART 2208. In the absence of stipulation, attorney's fees and expenses of litigation, other than judicial costs, cannot be recovered, except:cralawredlibrary
(1) When exemplary damages are awarded;
(2) When the defendant's act or omission has compelled the plaintiff to litigate with third persons or to incur expenses to protect his interest;
(3) In criminal cases of malicious prosecution against the plaintiff;
(4) In case of a clearly unfounded civil action or proceeding against the plaintiff;
(5) Where the defendant acted in gross and evident bad faith in refusing to satisfy the plaintiffs plainly valid, just and demandable claim:
(6) In actions for legal support;
(7) In actions for the recovery of wages of household helpers, laborers and skilled workers;
(8) In actions for indemnity under workmen's compensation and employer's liability laws;
(9) In a separate civil action to recover civil liability arising from a crime;
(10) When at least double judicial costs are awarded;
(11) In any other case where the court deems it just and equitable that attorney's fees and expenses of litigation should be recovered.
In all cases, the attorney's fees and expenses of litigation must be reasonable.