Republic of the Philippines

REGIONAL TRIAL COURT

11th Judicial Region
Branch ___
Panabo City, Davao del Norte

PROVINCIAL GOVERNMENT OF
DAVAO DEL NORTE represented
by its Governor, HON. GELACIO P. CIVIL CASE NO. _______
GEMENTIZA, For:
Plaintiff, Annulment of Contract of
- versus - Lease, Damages,
Temporary Restraining Order
LORETO N. AJOS, RAMON L. and Preliminary Injunction
PERJES, JAIME P. UY, DEPT. OF
AGRARIAN REFORM (DAR) &
OFFICE OF THE REGISTRY OF DEEDS
Defendants.
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COMPLAINT

COMES NOW, Plaintiff Province of Davao del Norte through the undersigned

counsel and unto this Honorable Court most respectfully avers:

THE PARTIES --

1.) Plaintiff is a local government unit otherwise known as the Provincial

Government of Davao del Norte duly created and existing under the laws of the Republic

of the Philippines with official address at Capitol Bldg., Mankilam, Tagum City, Davao

del Norte, Philippines, where it may be served with summons and other Court processes,

duly represented by its Provincial Governor, Hon. Gelacio P. Gementiza, per

Sangguniang Panlalawigan Resolution No. 074, series of 2007, hereto attached as Annex

“A”.

2.) Defendant Loreto N. Ajos is of legal age, Filipino, married to Esmeralda H. Ajos

with residence and postal address at Kinawitnon, Babak District, Island Garden City,
Davao del Norte, Philippines, where he may also be served with summons and other

Court processes;

3.) Defendant Ramon L. Perjes is of legal age, Filipino, married to Mauricia A. Perjes

with residence and postal address at Kinawitnon, Babak District, Island Garden City,

Davao del Norte, Philippines, where he may also be served with summons and other

Court processes;

4.) Defendant Jaime P. Uy, is also of legal age, Filipino, married and a resident of

Walnut St., Ecoland Subdivision, Davao City, where he may also be served with

summons and other Court processes. He is also an officer of Mae West Shipping

Company, which business is to operate Ferry boats in the transport of cargoes and

passenger in going to and from Kinawitnon Wharf, Kinawitnon, Babak District, Island

Garden City of Samal, Davao del Norte;

5.) Department of Agrarian Reform (DAR), Provincial Office, is impleaded as party

Defendant, with office address at Mankilam, Tagum City, Davao del Norte, where it may

be served with summons and other court processes;

6.) Registry of Deeds of Tagum City is also impleaded as party Defendant with office

address at Government Center, Mankilam, Tagum City, Davao del Norte, where it may

also be served with summons and other court processes;

PREFATORY STATEMENT

7.) This is a complaint for Annulment of Contract of Lease with Damages, Temporary

Restraining Order and Preliminary Injunction and/or Injunction filed against the herein

defendants for having acted in deliberate violation to the covenant as stipulated in the

Deed of Donation earlier executed in favor of the Provincial Government of Davao del

Norte;
8.) The subject property is located at Kinawitnon, Samal District, Island Garden City

of Samal, Davao del Norte, presently embraced under Transfer Certificate of Title (TCT)

Nos. C-20515 & C-20514, Registry of Deeds for the Province of Davao del Norte. Such

properties are respectively covered under Tax Declaration No. 02-01007-00393 with an

assessed value of (P 90,000.00) and Tax Declaration No. 02-01007-00380 with an

assessed value of (P 11,270.00). Attached are the copies of the aforecited Tax

Declarations as Annex “B” and “C”, respectively. These properties since 1987 until the

present is being used and utilized by the Provincial Government of Davao del Norte as

its Provincial Engineering’s Office (PEO) Sub-Station, depot, road network and docking

area;

THE FACTS --

9.) Plaintiff is a local government unit created for the purpose of maintaining the good

governance of the constituents of the Province of Davao del Norte. Under the Local

Government Code of 1991, as amended, Provincial Government of Davao del Norte is

granted local autonomy and given more power, authority, responsibilities and resources in

order to be self-reliant, be able to provide the basic services to its constituents including

the construction and establishment of infrastructure facilities intended to service the

needs of the residence of the province…but not limited to, provincial roads and bridges,

inter-municipal waterworks, drainage and sewerage, flood control, and irrigation systems,

reclamation projects, and similar facilities, and serve as an active partner of the national

government for the development and welfare of the community in general;

10.) During the early administration of Governor Prospero Amatong sometime in

1987, the Province of Davao del Norte made an agreement with the Ang Bros. & Co.,

Inc., wherein the latter donated some portions of its land identified as Lot No. 3-B-1-A-2

with an area of Four Hundred Thousand (400,000) square meters embraced under TCT

No. T-58280 (Attached as Annex “D”) located at Kinawitnon, Babac, Island Garden City
of Samal, Davao del Norte. By virtue of such agreement, some infrastructures were

immediately constructed from 1987 and are still utilized until the present, namely:

a. PEO Sub-station with an approximate area of 5,000 square meters; and

b. A road network with an approximate area of 3,642 square meters;

Government funds were used to develop and erect improvements in these

properties. Since 1987 until the present, the Plaintiff established in these properties its

PEO Sub-Office as well as its road network is also utilized as landing port, depot and

stocking area of equipment, materials and supplies for the use of the construction and

improvement of the PEO projects in the Island Garden City of Samal area. Attached are

pictures as Annex “E”, “E-1”, “E-2”, “E-3”, “E-4”, “E-5” and “E-6”;

11.) On June 10, 1988, the Comprehensive Agrarian Reform Law (CARL) was

enacted. As a consequence thereof, the land title of Ang Bros. & Co., Inc., was cancelled

by virtue of the Department of Agrarian Reform (DAR) Order. A new Transfer Certificate

of Title (TCT) No. T-73858 of the afore-cited property under Lot No. 3-B-1-A-2 was

issued covering the whole Four Hundred Thousand (400,000) square meters area in the

name of the Republic of the Philippines, attached as Annex “F”;

12.) Thereafter, by virtue of the implementation of the CARL, the said Transfer

Certificate of Title No. T-73858, was cancelled and a new Transfer Certificate of Title No.

C-1868 (DAR CLOA No. 00094597) for Lot No. 3-B-1-A-2 has been issued in name of

Loreto N. Ajos, et. al. who were all DAR beneficiaries. Certified machine copy of TCT

No. C-1868 is hereto attached as Annex “G”;

13.) Unfortunately, this Plaintiff’s afore-cited occupied properties utilized as PEO

Sub-Station Office, depot, road network and docking area were included as within the

area covered in the new Certificate of Title No. C-1868 (DAR CLOA No. 00094597);
14.) On April 12, 2005, a Deed of Partition for Lot No. 3-B-1-A-2 under TCT No. C-

1868 was executed by the above-named Farmer Beneficiaries duly notarized by Notary

Public Atty. Danilo S. Balucanag under Doc. No. 365; Page 73; Book No. 17; Series of

2005. In that Deed of Partition, designated lots with corresponding lot numbers and lot

owners were segregated and identified, among others:

a.) Lot No. 3-B-1-A-2-M containing an area of 8, 216 square meters to

Defendant Ramon L. Perjes married to Mauricia Abastillas. As above-mentioned,

a portion of this segregated lot was utilized as this LGU’s road network with an

approximate area of 3,642 square meters; and

b.) Lot No. 3-B-1-A-2-V containing an area of 5,000 square meters to

Defendant Loreto N. Ajos married to Esmeralda Hermosilla. As above-mentioned,

this area which is presently utilized as the PEO Sub-Office including its depot

and docking area. Attached is the Deed of Partition as Annex “H”;

15.) By virtue of the afore-cited Deed of Partition (dated April 12,2005) and

recognizing the occupation and possession of the Province of Davao del Norte, on July

11, 2005, Defendant Loreto N. Ajos voluntarily executed a Deed of Donation over the

afore-described segregated property (Lot No. 3-B-1-A-2-V) in favor of the Province of

Davao del Norte represented by Governor Gelacio P. Gementiza duly notarized by Notary

Public Atty. Danilo S. Balucanag, Sr. under Doc. No. 423; Page No. 84; Book No. 17;

Series of 2005. This donated property was a portion of Lot 3-B-1-A-2 under TCT C-

1868. Certified machine copy of the Deed of Donation is hereto attached as Annex “I”;

16.) The afore-cited Deed of Donation was accepted by the Province of Davao del

Norte represented by the Governor Gelacio P. Gementiza per its Sangguniang

Panlalawigan (SP) Resolution No. 353 dated July 11, 2005. Certified machine copy of the

SP Resolution No. 353 dated July 11, 2005 is hereto attached as Annex “J”;
17.) After the Deed of Donation was perfected, the undersigned counsel coordinated

with the Provincial General Services Office (PGSO), Davao del Norte to transfer the

corresponding certificate of title in the name of the Province of Davao del Norte. As such,

PGSO coordinated with concerned government agencies such as the Department of

Agrarian Reform (DAR) city, provincial and regional offices, Registry of Deeds and the

Land Bank of the Philippines (LBP);

18.) Then on October 28, 2005, also by virtue of the afore-cited Deed of Partition

(dated April 12, 2005), another Deed of Donation was also executed by Ramon L. Perjes

over a portion of the afore-cited Lot No. 3-B-1-A-2-V covering an area of 3,642 square

meters duly notarized by a Notary Public Atty. Edwin M. Salvilla under Doc. No. 1901;

Page No. 382; Book No. V; Series of 2005. Certified machine copy of Deed of Donation

is hereto attached as Annex “M”. This donated property is identified as Lot No. 3-B-1-A-

2-V, Psd-11-091716 which was already utilized as a public road network used by the

people in IGACOS since last 1987;

21.) The afore-cited Deed of Donation was accepted by the Province of Davao del

Norte represented by the Governor Gelacio P. Gementiza per Sangguniang Panlalawigan

Resolution No. 523 dated October 10, 2005. Certified machine copy of SP Resolution is

hereto attached as Annex “N”.

22.) After the Deed of Donation was perfected, again, the undersigned counsel

coordinated with the Provincial General Services Office (PGSO), Davao del Norte to

transfer the corresponding certificate of title in the name of the Province of Davao del

Norte. As such, PGSO coordinated with concerned government agencies such as the

DAR city, provincial and regional offices, Registry of Deeds and LBP.
19.) By virtue of the above-described Deed of Partition dated April 12, 2005, Transfer

Certificate of Title No. C-1868 was partitioned by and among the named CARL

Beneficiaries. The said Certificate of Title was cancelled and the subject Lot No. 3-B-1-

A-2 was partitioned into among others:

a. Transfer Certificate of Title No. C-20515 in the name of

Defendant Loreto Ajos under Lot No. 3-B-1-A-2-V, Psd-11-091716.

This is the same lot which is the object of the afore-cited Deed of

Donation earlier executed by Loreto Ajos in favor of the Plaintiff

Province of Davao del Norte; and

b. Transfer Certificate of Title No. C-20514 in the name of

Defendant Ramon Perjes under Lot No. 3-B-1-A-2-M, Psd-11-091716.

This is also the same lot which is the object of the afore-cited Deed of

Donation earlier executed by Ramon L. Perjes in favor of the Plaintiff

Province of Davao del Norte

The Transfer Certificate of Title No. C-20515 was issued in name of Loreto N.

Ajos over the parcel of land described as (Lot 3-B-1-A-2-V, Psd-11-091716) containing

an area of Five Thousand (5,000) square meters. Attached is the copy of the said land title

as Annex “L”;

23.) While the PGSO is facilitating the documents, and by virtue of the above-described

Deed of Partition, on October 19, 2006, the Transfer Certificate of Title No. C-20514 in

name of Ramon L. Perjes over the parcel of land described as (Lot 3-B-1-A-2-M, Psd-11-
091716) containing the whole area of Eight Thousand Two Hundred Sixteen (8,216)

square meters. Attached is the copy of the said land title as Annex “O”.

FIRST CAUSE OF ACTION

23.) On November 28, 2006, Defendant Loreto N. Ajos executed an AFFIDAVIT

revoking the above Deed of Donation executed by the parties and the said Affidavit was

notarized by Notary Public Atty. Gilbert G. Abellera under Doc. No. 244; Page No. 49;

Book No. 39; series of 2006. Certified machine copy of Affidavit of Revocation is hereto

attached as Annex “P”.

24.) Such Affidavit was executed by Defendant Loreto N. Ajos by his own sole will,

and intent without the knowledge and consent of the herein Plaintiff;

25.) Thereafter, Defendant Loreto N. Ajos entered into a Contract of Lease with

Defendant Jaime P. Uy, pertaining to above parcel of land known as Lot No. 3-B-1-A-2-

V, Psd-11-091716 which is now covered under TCT No. C-20515, and was notarized by

the Notary Public Atty. Jocam Joseph Jocson under Doc. No. 476; Page No. 96; Book No.

23; Series of 2006. Certified machine copy of the Contract of Lease is hereto attached as

Annex “Q”.

26.) Also on November 28, 2006, Defendant Ramon L. Perjes also voluntarily

executed an AFFIDAVIT revoking the Deed of Donation by the parties and the said

Affidavit notarized by Notary Public Atty. Gilbert G. Abellera under Doc. No. 243; Page

No. 49; Book No. 39; series of 2006. Certified machine copy of Affidavit of Revocation

is hereto attached as Annex “R”.

27.) Such Affidavit was executed by Defendant Ramon Perjes by his own sole will,

and intent without the knowledge and consent of the herein Plaintiff;
28.) Also Defendant Ramon L. Perjes, entered a Contract of Lease with Defendant

Jaime P. Uy pertaining to above parcel of land known as Lot No. 3-B-1-A-2-M, Psd-11-

091716 which is now covered under TCT No. C-20514, and notarized by the Notary

Public Atty. Jocam Joseph Jocson under Doc. No. 479; Page No. 96; Book No. 23; Series

of 2006. Certified machine copy of Contract of Lease is hereto attached as Annex “S”.

29.) Surprisingly, on February 12, 2007 at around 10:00 o’clock in the morning, a Ten

(10) wheeler hauler truck color blue with Plate No. GBN-331 driven by a certain Mr.

Jelson Bendijo loaded with One Hundred (100) pieces of coco trunks went inside and

intruded the perimeter of the PEO Sub-station, Kinawitnon, Babak, IGACOS without

proper permission from the Plaintiff or his authorized representative and then dropped in

the wharf area. As a consequence, the wharf area and its structures were destroyed and

damaged. Attached is the copy of the Report dated February 14, 2007 of Lyni C. Bones,

Sr. Administrative Asst. II, PEO-Davao del Norte as Annex “T”.

DISCUSSION

Be that as it may, the property donated passed to the ownership of the donee/s

from the acceptance of the donations, and these could not be revoked except upon the

non-fulfillment of the condition imposed, or for other causes prescribed by the law, but

not by the mere will of the donor. (Zapanta, et.al. vs. Posadas, Jr., et.al., G.R. No. 29204.

December 29, 1928).

The perfected Deed of Donation, being a mutual agreement of the parties, could

not have been unilaterally revoked and disregarded by one party pursuant to Article 1308

of the Civil Code of the Philippines.

 Being a patent nullity, Defendants could not give any rights nor leased the same to

Defendant Jaime P. Uy under the principle: “NEMO DAT QUOD NON HABET” —

meaning ONE CANNOT GIVE WHAT HE DOES NOT HAVE, considering that this

subject property in litigation belongs to the Plaintiff and not to Defendants any more.

Therefore, the contract of lease should have been nullified being invalid and void ab-

initio.

SECOND CAUSE OF ACTION

By executing an Affidavit of Revocation and Contract of Lease with Jaime P. Uy

having full knowledge to the prior donation, they broke the covenant with the Plaintiff in

the Deed of Donation. Thus, the Plaintiff is entitled to damages for the blatant insult to

the institution and its constituents.

Defendant’s unilateral act of terminating the contract (Deed of Donation) without

legal justification makes it liable for damages suffered by Plaintiff pursuant to Article

1170 of the New Civil Code. (Pacmac, Inc. vs. IAC and Vulcan Industrial & Mineral

Exploration Corp., G.R. No. 72405. May 29, 1987).

Defendant Jaime P. Uy, the Lessee, cannot deny the prior transaction made by the

Lessors because he has knowledge on the Affidavit of Revocation as a support document

to the Contract of Lease and at the same time, his long time familiarity with the area

being the manager of the ferrying business, whose ferries usually anchored and docked in

the docking area of the PEO Sub-Station.

Hence, the Plaintiff is entitled to recover the cost of litigation for the filing and

preparation of this litigation as well as Exemplary damages, which may be awarded in

contracts for the Defendants acted in a wanton, fraudulent, reckless, oppressive or

malevolent manner (Art. 2232, New Civil Code).

 TEMPORARY RESTRAINING ORDER & PRELIMINARY INJUNCTION

The 1997 Rules of Civil Procedure provided for a remedy in favor of any party

who might have been prevented from exercising of his right of his day in court similar to

the predicament suffered by the Province of Davao del Norte.

That to avail of such foregoing remedy, Plaintiff has no other option but to file

this instant action and ask for this remedy to prohibit and restrain the Defendants and its

agent and personnel not to harass the guards of the Province, intruding and destroying the

existing structures of the PEO Sub-station, buildings and other improvements. Copies of

the photos taken in the area, where clear intrusion and destruction of the subject

properties had been undertaken by the Defendants, which hereto attached as Annexes

“____”, “____”, “____”.

Otherwise, if not prohibited or restrained, the latter will suffer actual, grave,

material and irreparable damages or injury, by being unlawfully intruding and destroying

the property/ies of the Plaintiff.

29.) There is no other plain, adequate and complete remedy at law to stop or prevent

such action to the detriment of the Plaintiff.

30.) There is a need to immediately issue a restraining order before notice, the matter

being of extreme urgency without which the Plaintiff will suffer grave injustice and

irreparable injury and/or to issue a writ of preliminary injunction after hearing in order to

maintain the status quo and to preserve the rights of the party.
31.) That Plaintiff is willing to put up a bond in the amount this Honorable Court may

duly and reasonably fix to answer for whatever damages that may arise by reason of the

issuance of the restraining order and/or writ of preliminary injunction.

PRAYER

WHEREFORE, for and in consideration of the foregoing premises, it is most

respectfully prayed of this Honorable Court to issue an order:

1. Declaring the afore-cited Contract of Lease executed by the Defendants

Loreto N. Ajos, Ramon L. Perjes and Jaime P. Uy null and void;

2. Without notice, restraining the Defendants (restraining order) intruding,

introducing and destroying any properties or portion thereof;

3. That pending these proceedings and upon petitioner’s filing of a bond in such

amount as this Honorable Court may fix, a preliminary injunction be issued,

restraining the plaintiff and his agents and attorneys from doing, introducing

and intruding the subject premises particularly the PEO Sub-Station

Compound and road network connecting the docking area of the same;

4. Ordering the Defendants jointly and severally to pay the Plaintiff in the

amount of Three Hundred Thousand Pesos (P 300,000.00) as damages

pursuant to Article 1170 of Civil Code of the Philippines for the fraudulent

transaction they entered into in the Contract of Lease;

5. Ordering the Defendants jointly and severally to pay the Plaintiff in the

amount of One Hundred Thousand Pesos (P100,000.00) as exemplary

damages to hinder the Defendants and other persons in doing the same;

6. Ordering the Defendants jointly and severally to pay Plaintiff in the amount of

One Hundred Thousand Pesos (P100,000.00) for the cost of litigation;

7. Ordering Defendants Registry of Deeds of Tagum City and Department of

Agrarian (DAR) to facilitate the corresponding new Certificate of Titles to

 cover the afore-cited donations executed by Defendants Loreto N. Ajos and

Ramon L. Perjes in favor of the Plaintiff Provincial Government of Davao del

Norte.

Plaintiff prays for such other relief deemed just and equitable under the given

premises.

Tagum City (for Panabo City), Davao del Norte, Philippines, March 8, 2007.

PROVINCIAL GOVERNMENT OF
DAVAO DEL NORTE
PLAINTIFF

Represented by:

GELACIO P. GEMENTIZA
Governor

Assisted by:

ATTY. EDWIN M. SALVILLA

Counsel for the Plaintiff
Provincial Legal Officer
Capitol Bldg., Mankilam, Tagum City
Roll No. 43456

Republic of the Philippines . . . )

Province of Davao del Norte....) Sc.
City of Tagum………………… .)
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CERTIFICATION / VERIFICATION
 I, GELACIO P. GEMENTIZA, of legal age, married, Filipino and a resident of
Apokon, Tagum City, Davao del Norte, after having been duly sworn to in accordance
with law, do hereby depose and say:

That I am the incumbent Governor of the Provincial Government of Davao del

Norte and the authorized representative of the above-entitled case;

That I have caused the preparation of the foregoing Complaint and have read and
understood the allegations contained therein;

That I certify under oath that-

a) the plaintiff has not commenced any other action or proceeding which is
pending in the Supreme Court, the Court of Appeals, or any other tribunal or
agency;

b) to the best of my knowledge, no such action or proceeding is pending in the

Supreme Court, the Court of Appeals, or any other tribunal or agency;

That I likewise undertake that-

a) if there is any such action or proceeding which is either pending or may have
been terminated, I will state the status thereof;

b) if I should thereafter learn that a similar action or proceeding has been filed or
it pending before the Supreme Court, the Court of Appeals, or any other
tribunal or agency, I will undertake to report that fact within five (5) days
therefrom to the Court or agency wherein the original pleading and sworn
certification contemplated in Section 5, Rule 7 of the 1997 Civil Procedure of
the Philippines, as amended.

That the allegations in this certification and verification are true and correct to my
own knowledge and belief.

IN WITNESS WHEREOF, I hereunto affix my signature this __th day of March

2007, Tagum City, Davao del Norte, Philippines.

GELACIO P. GEMENTIZA
Affiant

SUBSCRIBED AND SWORN to before me this __ th day of March 2007 at

Tagum City, Davao del Norte, Philippines.