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 JOSE J. LADLAD and EMSA B. 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 and in actual possessor 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, through its 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 of
evidence 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 that may 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 the 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 releases 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 the 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 also 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 further executed a Real Estate Mortgage, in favor of PNB, covering

three parcels of land as collaterals, with Transfer Certificate of Titles with Numbers
T-12-085, T-12,086 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 on 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 the 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 of
the building and some of the improvements introduced inside the Casa Emsa;

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 partially and initially 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 fully 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; 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 parcels of land 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 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 certificates of title 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.

Defendant PNB then, after consolidating the certificate of titles of the lands in

question, instituted an action for Ex-Parte Petition for Issuance of Writ of Possession
on April 20, 2015, which was then docketed as MISC. CASE NO. 010-2K15, now
pending before Regional Trial Court, Branch 19, Pagadian City; the indication then is
that, because PNB, by the very nature of their business, is more knowledgeable in the
field of valuation of real property, intentionally waited for thirteen (13) years to file
the ex-parte petition after the market value of the lands in question had reached
almost Forty Five Million Pesos (Php45,000,000.00), almost eight (8) times than
the amount of Five Million Pesos (Php5,000,000.00) which had been initially
released by the PNB when they initially executed the contract of loan; as to the Casa
Emsa Building and all other improvements found therein, it is still subject to
appraisal. Thus, PNB had already anticipated the valuation or the total appraise
value of the entire real properties and is therefore, acted in evident bad faith;
31.

Because of the acts of defendant PNB in dealing with the plaintiffs by not

observing honesty and good faith and who, both in the exercised of their rights did
not acts with justice, plaintiff have suffered serious anxiety and fear that the real
properties might lost through the fraudulent acts and practices of PNB, plaintiffs are
entitled

to

recover

MORAL

DAMAGES

in

an

amount

_________________ PESOS (Php______________);

not

exceeding

32.

To deter others from committing similar acts and by way of example,

defendant

PNB

should

be

assessed

________________PESOS

(Php___________) representing EXEMPLARY DAMAGES;

33.

Because of the acts of defendant PNB in dealing with the plaintiffs by not

observing honesty and good faith and who, in the exercised of their rights did not
acts with justice, plaintiffs were forced to litigate and were constrained to hire the
services of the counsel to fully protect their rights and have incurred attorneys fees
amounting to ______________ PESOS (Php___________) and will
further incur litigation expenses in the amount _______________ PESOS
(P___________), plus ___________ PESOS (Php______________)
per court appearance
PRAYER

WHEREFORE PREMISES CONSIDERED, after due notice and

hearing, herein Plaintiffs respectfully prayed that an order be issued
and a judgment be rendered in its favor that the TRANSFER
CERTIFICATE OF TITLE NO. T-23,703 AND TRANSFER CERTIFICATE
OF TITLE NO. T-23,704, be declared NULL AND VOID and directing the
defendant PNB to reconey the ownership to the plaintiffs EMSA B.
LADLAD and JOSE J. LADLAD; further, an order be issued against the
Defendants, directing the latter as follows to wit;
1.

Ordering the Defendant PNB the following, to wit:

a. ________________PESOS (Php____________), as MORAL
DAMAGES.
b. _______________PESOS

(Php___________),

as

EXEMPLARY DAMAGES.
c. _________________ PESOS (Php_______________), as
ATTORNEYS FEES.
d. ______________ PESOS (Php_____________), as COST OF
LITIGATIONS,

plus

THREE

THOUSAND

PESOS

(Pho_______________) as per court appearances

2.
3.

The cost of suit.

Plaintiffs pray for such other reliefs as may be just and equitable in

premises.

Respectfully submitted this ___ day of January, 2016 at Pagadian

City, Zamboanga del Sur, Philippines.

ATTY. FELIX M. ESCALANTE, JR.

Counsel for the Plaintiffs
Provincial Legal Office
Pagadian Capitol Complex
Pagadian City
Attorneys Roll No. 57655
IBP No. 963535, 01/08/16
Issued at Pagadian City
PTR No. 9479424, 01/12/16
Issued at Pagadian City
MCLE Compliance No. IV-0014312
Issued on March 21, 2013
MCLE Compliance V (on process)
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