Republic of the Philippines

SUPREME COURT
Ninth Judicial Region
REGIONAL TRIAL COURT
Branch ____
Pagadian City
SPOUSES EMSA B. LADLAD
JOSE J. LADLAD
Plaintiffs,

CIVIL CASE NO.__________

-versus-

-for-

PHILIPPINE NATIONAL BANK

PAGADIAN CITY BRANCH,
Represented by its Branch
___________________
Defendants,
x------------------------------------/

RECONVEYANCE WITH NULLITY

OF TRANSFER CERTIFICATES OF
TITLES WITH NOS. T-20703 AND
T-20-704, WITH APPLICATION OF
PRELIMINARY INJUNCTION PLUS
DAMAGES

COMPLAINT
COME NOW, plaintiffs thru the undersigned counsel and unto this
Honorable Court, respectfully submits their complaint and avers that;
1.

Plaintiffs spouses EMSA B. LADLAD and JOSE J. LADLAD, Filipinos,

both of legal age, husband and wife and are residents of and with postal address at
Airport Road, Tiguma District, Pagadian City, (herein after referred to as SPOUSES
LADLAD, for brevit) where they may be served with Orders, Notices, Resolutions
and other court processes of this Honorable Court;
2.

Defendant PHILIPPINE NATIONAL BANK, is a commercial banking

corporation organized and registered under the existing laws, rules and regulations
of the Philippines with principal place of business at PNB Financial Center, President
Diosdado Macapagal Boulevard, Pasay City, Metro Manila (hereinafter referred to as
PNB for brevity), where it may be served with Summons, Notices, Orders,
Resolutions and other court processes of this Honorable Court;
3.

Plaintiffs are owners of two parcels of land, both located at Airport Road,

Tiguma District, Pagadian City, Zamboanga del Sur, Island of Mindanao and more
particularly described as follows, to wit

TCT NO. T-12,085

A parcel of land (LOT 2-1-6-E) of the subd.,
plan, Psd-09-017162, being a portion of lot 2-1-6,
Psd-09-001859, LRC Cad. Rec. No., situated in
the Barangay of Tiguma, City of Pagadian, Island

of Mindanao. Bounded on the SE,m line 3-4 by

lot 84, Narciso Consolacion; on the SW,m line 41 by lot 2-1-6-D; on the NW., line 1-2 by lot 2-1-6I; on the NE., line 2-3 by lot 2-1-6-F, all of the
subd., plan. containing an area of SEVEN
THOUSAND SEVEN HUNDRED TWENTY NINE
(7,729) SQUARE METERS, more or less. This
includes all the existing improvements thereon
like buildings and other structure. Copy of the
certificate of title hereto attached and marked as
ANNEX A;
TCT NO. T-12,086
A parcel of land (LOT 2-1-6-F) of the subd.,
plan, Psd-09-017162, being a portion of lot 2-1-6,
Psd-09-001859, LRC Cad. Rec. No., situated in
the Barangay of Tiguma, City of Pagadian, Island
of Mindanao. Bounded on the se., LINES 2-3-4
BY 84. Narciso Consolacion; on the SW., line 4-5
by lot 2-1-6-E; on the NW., line 5-1 by road lot 2
2-1-6; on the NE., line 1-2 by lot 2-1-6-H, both of
the subd., plan, containing an area of SEVEN
THOUSAND SEVEN HUNDRED TWENTY NINE
(7,729) SQUARE METERS, more or less. This
includes all the existing improvements thereon
like buildings and other structure. Copy of the
certificate of title hereto attached and marked as
ANNEX B;
4.

The ASSESSED VALUE of the above-described real property, covered by

TRANSFER CERTIFICATE OF TITLE NO. T-12,085, is THREE MILLION

NINE HUNDRED FIFTY TWO THOUSAND FOUR HUNDRED THIRTY
PESOS (Php3,953,430.00), while the MARKET VALUE is THIRTY NINE

MILLION,

FIVE

HUNDRED

TWENTY

FOUR

THOUSAND

(P39,534,270.00 based on the Real Property Tax Declaration, as of October 7,

2015, copy hereto attached and marked as ANNEX C, while the Assessed Value
and Market Value are marked as ANNEXES C-1 and C-2 respectively;
5.

The ASSESSED VALUE of the other real property, covered by TRANSFER

CERTIFICATE OF TITLE NO. T-12,086, is FIVE HUNDRED SIXTY NINE

THOUSAND NINE HUNDRED SEVENTY PESOS (Php569,972.00), while
the MARKET VALUE is FIVE MILLION SIX HUNDRED NINETY

NINE

THOUSAND

SIX

HUNDRED

FIFTY

PESOS

(P39,534,270.00) based on the Real Property Tax Declaration, as of October 7,

2015, copy hereto attached and marked as ANNEX D, while the Assessed Value
and Market Value are marked as ANNEXES D-1 and D-2 respectively;

6.

Sometime in the last quarter of 1996, Plaintiffs and PNB Pagadian City

Branch Manager Reynaldo Maquiling, verbally comes into an initial agreement that
PNB is willing to extend its credit to the plaintiffs provided the latter will first submit
the proposal of the proposed project together with all the necessary documents,
among which, is a final printed copy of the Project Feasibility Study, the total amount
of the pre-operational expenses and the total amount of the intended loan, copy of
the Project Feasibility Study hereto attached and marked as ANNEX E and the
total amount of pre-operational expenses in the amount of EIGHTY NINE
MILLION ONE HUNDRED TWENTY THOUSAND AND FOUR HUNDRED
SEVENTY ONE PESOS (Php89,120,471.00), which is also the amount of the
intended loan is marked as ANNEX E-1, while the details of the feasibility study
will be submitted to the Honorable Court during the marking and trial of the instant
case due to the volumous contents thereof;

7.

Plaintiffs then submitted to the PNB Pagadian City Branch the required

Project Feasibility Study for further scrutiny and study; thereafter, the PNB branch
manager Reynaldo Maquiling then informed the plaintiffs that they are amiable to
the proposed project and before they will approved the intended loan, the PNB team
will first conduct an actual ocular or site inspection where the proposed project is to
be constructed;

8.

After the ocular or site inspection, the PNB branch manager Reynaldo

Maquiling then inquired the plaintiffs, that considering the amount involved of the
intended loan, a collateral then is needed by way of security to guaranty and insure
payments in accordance with the terms and conditions to be agreed upon by both
parties;

9.

Plaintiffs then presented and submitted three (3) certificates of land titles to

PNB Pagadian City branch manager Reynaldo Maquiling; aside from the abovedescribed real properties (Transfer Certificate of Titles with Numbers T-12-085 and
T-12,086), plaintiffs also submitted another land title, that is, TRANSFER
CERTIFICATE OF TITLE NO. T-14,251, known as Lot 2-1-6-G, containing an
area of ONE THOUSAND SEVEN HUNDRED NINETY ONE (1,791)
SQUARE METERS, more or less, the location of which is just an adjacent to the
earlier described real properties, copy hereto attached and marked as ANNEX F;
10.

After the plaintiffs have complied all the necessary documents and

requirements and after the PNB Pagadian City branch had examined all the
submitted necessary documents, finally then, the PNB approved the loan application

of the plaintiffs and granted the intended amount of loan; as per understanding and
agreement, PNB Pagadian City branch then advice the plaintiffs that the intended
amount of the loan will be released to plaintiffs on staggered basis, this is due to the
fact that the proposed project, as reflected in the Project Feasibility Study, involves a
phases/stages of undertaking in accordance with the pre-operational expenses;
plaintiff then interposed no objection as to the staggered basis of the release of the
amount loan;

11.

Plaintiffs and PNB Pagadian City branch then finally prepared the necessary

documents; as understood and agreed, PNB will make the first two initial release in
the total amount of FIVE MILLION PESOS (Php5,000,000.00) upon the
initial execution of the contracts considering that the necessary documents,
requirements and other pertinent papers will be forwarded and submitted by the
PNB Pagadian City branch to its Main/Central Office in Metro Manila, for further
examinations of the required documents and final approval thereof;

12.

Plaintiff then executed a Promissory Note in the amount of Five Million Pesos

(Php5,000,000,00), in favor of PNB Pagadian City branch, copy thereof had been
marked as Annex A of the Petition for Ex-Parte Issuance of Writ of Possession filed
by the PNB against the plaintiffs herein, which copy is hereby incorporated by the
plaintiffs in the instant case and further marked as ANNEX G;

13.

Plaintiffs and PNB then executed a Credit Agreement, copy thereof had been

marked as Annex B of the Petition for Ex-Parte Issuance of Writ of Possession filed
by the PNB against the plaintiffs herein, which copy is hereby incorporated by the
plaintiffs in the instant case and further marked as ANNEX H;
14.

Plaintiffs then executed a Real Estate Mortgage, in favor of PNB, covered by

three parcels of land, with Transfer Certificate of Titles with Numbers T-12-085, T12,086 and T-14,251, copy thereof had been marked as Annex C of the Petition for
Ex-Parte Issuance of Writ of Possession filed by the PNB against the plaintiffs herein,
which copy is hereby incorporated by the plaintiffs in the instant case and further
marked as ANNEX I;

15.

After the PNB Pagadian City branch released the first two initials in the total

amount of Five Million Pesos (Php5,000,000.00), the branch manager then

Reynaldo Maquiling, informed the plaintiffs that the necessary documents and other
pertinent papers were already to PNB Main/Central for final approval of their loan;

16.

Plaintiffs then started the construction of the proposed project; while the

work is being undertaken, plaintiffs then made follow-up as to the status of the loan,
PNB branch manager Reynaldo Maquiling informed the former that the PNB
main/central office had not yet acted the final approval of the loan;

17.

Then after the completion of some phases of the project and during the mid-

part of the undertaking, surprisingly, PNB Pagadian City branch manager Reynldo
Maquiling, informed the plaintiffs that the intended loan amount was denied by the
PNB main/central office and refuses then to release additional credit. Thus, causing
the plaintiffs to panic, shock and hysterical;

18.

In order not to hamper the undertaking, plaintiffs left no choice but to borrow

some funds from their close friends just to finish the roofing and the foundation and
some of the improvements introduced inside the Casa Emsa building;

19.

When the construction is partially finished, it was only then the PNB

Pagadian City branch manager returned all the necessary application documents and
other pertinent papers except the three (3) certificates of land titles covering Transfer
Certificate of Titles with Numbers T-12-085, T-12,086 and T-14,251, which stands as
collateral of the partial amount of Five Million Pesos (Php5,000,000.00), which has
been released by PNB Pagadian City Branch;

20.

Despite the frustration, plaintiffs were able to introduce some improvements

inside the Casa Emsa building. At the same time then, plaintiffs made several visit to
the PNB Pagadian City branch, however, the branch manager is evasive and made
excuses just to avoid meeting with the plaintiffs; the branch manager did not even
bother to explain and give the reason of the denial or disapproval of the loan to the
plaintiffs;

21.

Despite that plaintiffs were already suffering from financial reverses because

of the disapproval of the land, they still managed to continue to refurbish the
improvements of the Casa Emsa;

22.

After the Casa Emsa had been partially completed and after the

improvements inside the building was refurbished; PNB then took advantage of the
partial completion of the building by sending a demand letter to the Plaintiffs,
demanding the payment of Five Million Pesos (Php5,000,000.00), representing the
first two initial release made when the plaintiffs and the PNB Pagadian City branch

through its branch manager Reynaldo Maquiling executed the contract of loan, in
inspite of the fact that it is subject to the final approval of the intended loan amount
from PNB main/central office; copy thereof had been marked as Annex D of the
Petition for Ex-Parte Issuance of Writ of Possession filed by the PNB against the
plaintiffs herein, which copy is hereby incorporated by the plaintiffs in the instant
case and further marked as ANNEX J;
23.

Plaintiffs then tried to renegotiate the PNB as to the loan application, the

latter ignored the proposal, it instead demanded the payment of the principal
obligation in the amount Five Million Pesos (Php5,000,000.00) together with the
interest; PNB then informed the plaintiffs that they can redeem the collaterals on
piecemeal basis;

24.

Plaintiff then tried to redeem one of the parcel of land, covered by Transfer

Certificate of Title Number T-12-085. However, PNB refuses the redemption made
by the plaintiffs of said land; they then insisted to offer the land which is covered by
Transfer Certificate of Title No. T-14,251;

25.

Because at the time, plaintiffs were suffering from financial reverses and

because PNB, due to the nature of their business, being a commercial banking
corporation, could readily determined the price market value or the appraise value of
the remaining parcel of lands covered by Transfer Certificate of Titles with Numbers
T-12,085 and T-12,086, in which the Casa Emsa Building and all other
improvements is standing or found therein, immediately instituted an Extra-judicial
Foreclosure proceeding pursuant to ACT NO. 3135, covering the two remaining
parcel of lands (TCT NOS. T-12,085 and T-12,086);

26.

PNB then was successful in foreclosing the two parcels of land (TCT NOS. T-

12,085 and T-12,086), and because plaintiffs were suffering from financial reverses,
it failed to redeem the two parcels of land in question; as a consequence, the
certificate of titles of the lands in question were consolidated; thereafter, a new
certificates of title were issued in favor of the PNB. Thus, the Transfer Certificate of
Title No. T-12,085 was consolidated and now covered by a new land title, Transfer
Certificate of Title No. T-23,703, while Transfer Certificate of Title No. T-12,086 was
consolidated and now covered by a new land title, Transfer Certificate of Title No. T23,704, copies hereto attached and marked as ANNEXES J and K,
respectively;

27.

After the certificate of titles were consolidated and registered in the name of

the PNB, plaintiffs then offered and tried to redeem and/or repurchase back the
lands in question, but the PNB refused to resell the lands in question; thereafter,
until this date,

the PNB then is evasive every time the Plaintiffs offered to

repurchase or purchase the lands in question;

28.

Despite of the fact that the certificate of titles of the lands in question were

already consolidated and registered in the name of the PNB; on the onset, prior to
the construction of the Case Emsa and during the undertaking thereof, the plaintiffs
were already in the actual possession of the land in question and continuously
possessed the lands in question up to the present;

29.

As per information received by the plaintiffs, the PNB clandestinely

attempted to sell the lands in question, including the improvements to third person
in violation of the right of first refusal of the plaintiffs. However, it remains unsold
because some of the prospective buyers, some of which are close family friends of the
plaintiffs, recognized the plaintiffs as the duly registered owners of the lands in
question

30.

Th