REPUBLIC OF THE PHILIPPINES

REGIONAL TRIAL COURT

7th Judicial Region
Branch 24
Cebu City

PENSHONE INCORPORATED,
Plaintiff,

-versus- CIVIL CASE NO.____________

FOR: Specific Performance
with Damages
YUNGCHOW CORPORATION,
CHOI SOO HWANG
and YOON SERI,
Respondent.
x----------------------------------------------------/

COMPLAINT

COMES NOW, Plaintiff to this Honorable Court most

respectfully allege, as follows:

1. Plaintiff PENSHONE INCORPORATED is a corporation

duly organized and existing for and by virtue of the laws of the
Republic of the Philippines with office address at JDY Building, A.S.
Fortuna Street, Mandaue City Cebu City where they may be served
with summons and other processes of this Honorable Court
hereinafter represented by its Vismin Manager VERA WANG per
Secretary’s Certificate hereto attached as Annex “A” and made an
integral part hereof;

2. Respondent YUNGCHOW CORPORATION is a

corporation duly organized and existing for and by virtue of the laws
of the Republic of the Philippines with principal office at TGU Tower,
IT Park Cebu City Cebu City where it may be served with summons
and other processes of this Honorable Court;
 3. Respondent CHOI SOO HWANG is impleaded in his
capacity as President of YUNGCHOW Corporation and the primary
person who dealt Plaintiff PENSHONE Incorporated;

4. Respondent YOON SERI is impleaded in her capacity as

the purchasing officer of Respondent YUNGCHOW Corporation and
one of the personnel handling the transactions with Plaintiff
PENSHONE Incorporated;

CAUSE OF ACTION

5. Plaintiff Penshone Incorporated is corporation engaged in

the business of providing computer services, systems and network
administration and assistance. One of the services Plaintiff provides
its clients are the sale of computer routers to meet the specific needs
of its clienteles as well as installation of said routers and maintenance
of the same within the warranty period;

6. Respondent Yungchow Corporation on the other hand is

a technical support service provider which engaged the services of
Plaintiff Penshone Incorporated for the purchase of AS5350 CISCO
Router with the following specifications, to wit:
 High Density Voice with 2E1, AS5x-PVDM2-64, IP + IOS,
AS5350 Dual E1/PRI DRF card
 AS5350 Ser IOS IP PLUS
 AS5350-DFC-2CE1, AS5350 Dual E1/PRI DFC card
 AS535XM-AC-PWR, AS5350XM AC Single Power Supply
 CAB-AC, Power Cord, 110V
 MEM-512M-AS5XM, AS5350XM and AS5400XM 512MB
Main
 SDRAM
 MEM-128CF-AS5XM and AS4300XM 128M Compact
Flashes
  AS5X-FC, AS5000 Feature Card with Six PVDM DSP
Module Slots
 3 Units AS5x-PVDM2-64, AS5000 64- channel Packet
voice/Fax
 DSP Module
 CON-SNT-AS5352E1V, 8x5xNBD Svc, AC AS5350 Voice;
2e1, 60 ports, IP + IOS
 Cable Wire

7. On February 2, 2018, Plaintiff Penshone Incorporated

submitted to Respondent Yungchow Corporation a price quotation of
the aforesaid AS5350 CISCO Router in the amount of SIX
HUNDRED NINETY FOUR THOUSAND FIVE HUNDRED FIFTY
ONE PESOS AND 40/100 (P 694,551.40) for the abovementioned
specification along with the terms of Plaintiff. The said price
quotation and letter was addressed to Respondent Choi Soo Hwang
which was conformed to and accepted by Respondent Yoon Seri on
February 9, 2018. A copy of the letter conformed to by Respondent
is hereto attached as Annex “B”;

8. On February 18, 2018 Respondent Yungchow

Corporation sent a letter to Jess C. Saragoza, Corporate Account
Executive of Plaintiff Penshone Incorporated regarding the purchase
order of the AS5350 CISCO Router with the specifications agreed
upon and the amount of P694,551.40 as the total consideration. The
said purchase order was signed by Respondent Yoon Seri as Head
of the Purchasing and Accounting Department and noted by
Respondent Choi Soo Hwang as President of Respondent Yungchow
Corporation. A copy of the purchase order is hereto attached as
Annex “C”;
 9. Thus, upon receiving the two notices namely the
conforme letter dated February 9, 2018 and the Purchase Order
dated February 18, 2018 the contract became binding upon herein
Plaintiff and Respondents;

10. It bears to stress that in the contract, the delivery of the

AS5350 CISCO routers will take about 30-45 workings days from
date of receipt of the Purchase Order which is February 9, 2018
considering the fact that the said items and equipment are to be
shipped by Plaintiff Penshone Incorporated from abroad;

11. In all good faith, Plaintiff Penshone Incorporated

immediately proceeded to process the shipment of the items
purchased by Respondent Yungchow Corporation and even
advanced its own funds to have the items shipped and just so it can
comply with its commitment and agreement to deliver the same within
30-45 days. As a sign of goodwill, Plaintiff Penshone Incorporated
even provided Respondent Yungchow Corporation a service unit of
AS5300 for its temporary use pending the delivery of goods despite
the fact that such arrangement was not part of the terms and
conditions in the contract;

12. On March 7, 2018 while the AS5350 items were already

en route to Cebu, Respondent Yungchow sent a letter to Jess C.
Saragoza, Corporate Account Executive of Plaintiff Penshone
Incorporated telling the latter that it is canceling the contract without
any valid reason and due notification. A copy of the letter is hereto
attached as Annex “D”;

13. On March 13, 2018 Plaintiff Penshone Incorporated

informed Respondent Yungchow Corporation that the items are
already en route and may no longer be cancelled and thus they must
comply with their part of the contract. A copy of the letter is hereto
attached as Annex “E”;

14. Upon the arrival of the AS5350, Plaintiff Penshone

Incorporated immediately informed Respondent Yungchow
Corporation regarding the items and that the same were now ready to
be delivered and installed as per agreement in the contract. And that
as per agreement, Respondent Yungchow Corporation must tender
payment. Respondent Yungchow Corporation refused and continues
to refuse to receive the AS5350 CISCO Routers it has ordered from
Plaintiff Penshone Incorporated;

15. For several occasions, Plaintiff Penshone Incorporated

has exerted earnest efforts to seek performance and compliance from
Respondent Yungchow Corporation on their part of the obligation
however, the latter would even refuse to communicate with Plaintiff
PENSHONE Incorporated;

16. Plaintiff has sent several demand for performance to

Respondent but all have been ignored. Plaintiff Penshone
Incorporated through its counsel has sent demand letters to
Respondent but all have been ignored and neither have they
communicated with Plaintiff Penshone Incorporated. In short, they
have utterly disregarded with bad faith their obligation and breached
the contract they have entered into with Plaintiff Penshone
Incorporated for the purchase of the AS5350 CISCO Routers. A copy
of the demand letters is hereto attached as Annexes “F” and “G”;

17. The continued refusal on the part of Respondents

Yungchow Corporation, Choi Soo Hwang and Yoon Seri to perform
its obligation which is to receive the AS5350 CISCO Routers it has
ordered and to pay Plaintiff Penshone Incorporated the agreed
purchase price of SIX HUNDRED NINETY FOUR THOUSAND FIVE
HUNDRED FIFTY ONE PESOS AND 40/100 (P 694,551.40) has
caused severe losses to Plaintiff Penshone Incorporated.
Considering that the contract is valid between the two parties, and
that Plaintiff Penshone Incorporated has complied with its part of the
contract, it is incumbent and imperative on the part of Respondent
Yungchow Corporation to likewise. Hence, Respondents Yungchow
Corporation, Choi Soo Hwang and Yoon Seri must be compelled to
jointly and severally perform its obligation which is to receive the
items ordered and pay Plaintiff PENSHONE Incorporated the amount
of SIX HUNDRED NINETY FOUR THOUSAND FIVE HUNDRED
FIFTY ONE PESOS AND 40/100 (P 694,551.40) with legal interest of
6% per month from the time of demand and nonpayment, among
others;

18. Because of Respondent Yungchow Corporation’s refusal

to perform its obligation and its utter disregard of the contract as well
as their intentional silence despite demands and correspondence
from Plaintiff Penshone Incorporated, the latter has suffered losses in
the amount of P 200,000.00 which Respondents Yungchow
Corporation, Choi Soo Hwang and Yoon Seri must compensate
Plaintiff by way of Nominal Damages;

19. In order to deter other persons from committing such acts

of breach of contract, nonperformance of obligation and
noncompliance of agreement validly entered into which is clearly
violative of the rights of individuals and inimical to society,
Respondents Yungchow Corporation, Choi Soo Hwang and Yoon
Seri must pay P 200,000.00 by way of Exemplary Damages;

20. Due to Respondents refusal to comply and perform its

obligation as well as its failure to communicate with Plaintiff despite
demand, Plaintiff Penshone Incorporated was compelled to engage
the services of a legal counsel in order to enforce its rights, claims
and file this case before this Honorable Court. Thus, Plaintiff
Penshone Incorporated was made to pay attorney’s fees to counsel
in the amount of P50,000.00 with appearance fee of P2,000.00 for
every hearing. Therefore Respondents must indemnify Plaintiff for
such Attorney’s fees;

PRAYER

WHEREFORE, premises considered it is most respectfully

prayed of this Honorable Court after due hearing and trial, to render
judgment in favor of Plaintiff Penshone Incorporated and order
Respondents Yungchow Corporation, Choi Soo Hwang and Yoon
Seri to comply with the agreement dated February 9, 2018 and the
purchase order issued dated February 8, 2018; to receive the
AS5350 CISCO Routers from Plaintiff Penshone Incorporated; to pay
the purchase price of SIX HUNDRED NINETY FOUR THOUSAND
FIVE HUNDRED FIFTY ONE PESOS AND 40/100 (P 694,551.40)
with interest per month from date of demand and to indemnify Plaintiff
Penshone Incorporated the following:

a. Nominal Damages amounting to P 200,000.00;

b. Exemplary Damages amounting to P 200,000.00;
c. Attorney’s Fees amounting to P 50,000.00 and
appearance fee of P 2,000.00 for every hearing.

Such other relief as may be just and equitable in the premises

are likewise prayed for.

Cebu City, Philippines. March 17, 2020.

PENSHONE INCORPORATED,
By:
VERA WANG

Assisted by:
NESTLE & ASSOCIATES LAW FIRM
Cebu City Tel. No (032) 489-4407
Email Address nmalaw@gmail.com
By:

ATTY. ABBOT NESTLE

Roll of Attorney 870512
IBP Lifetime Member No. 2012001234
Cebu City
PTR NO. 7485555 01/11/08 Cebu City
MCLE Compliance No. VI
Cebu City, Cebu
REPUBLIC OF THE PHILIPPINES}
CITY OF CEBU | S.S.

VERIFICATION AND CERTIFICATION

Plaintiff PENSHONE INCORPORATED,, a corporation duly

existing for and by virtue of the laws of the Republic of the
Philippines, hereinafter represented by Vera Wang, its Vis-Min
Manage, pursuant to a Secretary’s Certificate attached to this
Complaint, after having been duly sworn to in accordance with law,
depose and say, that:

1. PENSHONE INCORPORATED represented by Vera

Wang is the Plaintiff in the above captioned case;

2. He was authorized by the Board of Directors of Penshone

Incorporated to cause the preparation and filing of the
foregoing complaint for and in behalf of the corporation;

3. He read all the allegations therein and that the same are
true and correct of his own personal knowledge and of
authentic documents and records;

4. Neither he nor the corporation initiated any other action or

proceeding involving the same issues and/or parties in
the Supreme Court, Court of Appeals, or any other
tribunal and if he should know of any similar action or
proceeding, affiant undertakes to report the fact to this
Honorable court within five (5) days.
IN WITNESS WHEREOF, I have hereunto set my hand this 17 th day
of March 2020 at the City of Cebu, Philippines.

VERA WANG
Affiant

SUBSCRIBED AND SWORN to before be this 17th day of March,

2020 at the City of Cebu affiant exhibiting to me his Social Security
System ID NO. 147-280-000-2 issued on August 27, 1991 at Cebu
City, Cebu.

STEPHANIE V. ABANGAN
NOTARY PUBLIC
Roll of Attorney 970624
IBP Lifetime Member No.
2013006371/Cebu City
PTR NO. 7485555 01/11/08
Cebu City
MCLE Compliance No. VI
Sambag 1, Cebu City, Cebu

Doc No: 13;

Page No. 3;
Book No. 1;
Series of 2020.