REPUBLIC OF THE PHILIPPINES

REGIONAL TRIAL COURT

7th Judicial Region
Branch ____
Cebu City

PENSHONE INC,
Plaintiff

-versus- CIVIL CASE NO.____________

FOR: Specific Performance with
Damages
Yungchow Corporation,
Respondent.
x----------------------------------------------------/

COMPLAINT
COMES NOW, Plaintiff represented by Yvonne Abuda , and to this

Honorable Court most respectfully allege, as follows:

1. Plaintiff PENSHONE INC. 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 where they

may be served with summons and other processes of this Honorable Court

hereinafter represented by its Vismin Manager Yvonne Abuda;

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 where it may

be served with summons and other processes of this Honorable Court;

3. Respondent Stephen Chow is impleaded in his capacity as

President of Yungchow Corporation and the primary person who dealt

PENSHONE INC.;

4. Respondent Huang Shengyi is impleaded in her capacity as the

purchasing officer of Respondent Yungchow Corporation and one of the

personnel handling the transactions with Plaintiff PENSHONE INC.;

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CAUSE OF ACTION

5. Plaintiff PENSHONE INC. 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

Yungchow Corporation 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 INC. 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 Stephen Chow which was

conformed to and accepted by Respondent Huang Shengyi on February 9, 2018.

A copy of the letter conformed to by Respondent is hereto attached as Annex

“B”;
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8. On February 18, 2018 Respondent Yungchow Corporation sent a

letter to Yvonne Abuda, Corporate Account Executive of Plaintiff PENSHONE

INC. 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 Huang

Shengyi as Head of the Purchasing and Accounting Department and noted by

Respondent Stephen Chow as President of Respondent Y Corporation. A copy of

the purchase order is hereto attached as Annex “C”;

9. Thus, upon receiving the two notices namely the conformed letter

dated February 2, 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 18, 2018 considering the fact that the said

items and equipment are to be shipped by Plaintiff PENSHONE INC. from

abroad;

11. In all good faith, Plaintiff PENSHONE INC. 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 INC.

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 Stephen Chow sent a letter to Yvonne Abuda, Corporate

Account Executive of Plaintiff PENSHONE INC. telling the latter that it is

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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 INC. 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 INC.

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 per agreement, Respondent Yungchow Corporation

must tender payment. Respondent refused and continues to refuse to receive the

AS5350 CISCO Routers it has ordered from Plaintiff PENSHONE INC.;

15. For several occasions, Plaintiff PENSHONE INC. 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 INC.;

16. Plaintiff has sent several demand for performance to Respondent

but all have been ignored. Plaintiff PENSHONE INC. through its counsel has

sent demand letters to Respondent but all have been ignored and neither have

they communicated with Plaintiff PENSHONE INC.. In short, they have utterly

disregarded with bad faith their obligation and breached the contract they have

entered into with Plaintiff PENSHONE INC. 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, Stephen Chow and Huang Shengyi to perform its obligation which

is to receive the AS5350 CISCO Routers it has ordered and to pay Plaintiff
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PENSHONE INC. 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 INC.. Considering that the

contract is valid between the two parties, and that Plaintiff PENSHONE INC. 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, Stephen Chow and Huang Shengyi must be compelled

to jointly and severally perform its obligation which is to receive the items

ordered and pay Plaintiff PENSHONE INC. 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 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 INC.,

the latter has suffered losses in the amount of P 200,000.00 which Respondents

Yungchow Corporation, Stephen Chow and Huang Shengyi 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, Yungchow Corporation, Stephen Chow and Huang Shengyi

must pay P 500,000.00 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 INC. 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.
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Thus, Plaintiff PENSHONE INC. was made to pay attorney’s fees to counsel in

the amount of P150,000.00 with appearance fee of P5,000.00 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 INC. and order Yungchow Corporation, Stephen Chow

and Huang Shengyi to comply with the agreement dated February 2, 2018 and

the purchase order issued dated February 18, 2018; to receive the AS5350 CISCO

Routers from Plaintiff PENSHONE INC.; 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 INC. the following:

a. Nominal Damages amounting to P 200,000.00;

b. Exemplary Damages amounting to P 500,000.00;

c. Attorney’s Fees amounting to P 150,000.00 and appearance fee of P

5,000.00 for every hearing.

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

prayed for.

Cebu City, Philippines. February 17, 2020.

PENSHONE INC.,
By:

Yvonne Abuda

Assisted by:
DELA PENA
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& ASSOCIATES LAW FIRM

Cebu City Tel. No 231-0849
Email Address: delapena.jeff@gmail.com
By:

JEFFERSON A. DELA PENA

Roll of Attorey No. 11100-831-2211
IBP Lifetime Member No. 121594 Cebu City
PTR NO. 7485555 01/11/08 Cebu City
MCLE Compliance No. VI

REPUBLIC OF THE PHILIPPINES}

CITY OF CEBU | S.S.

VERIFICATION AND CERTIFICATION

Plaintiff PENSHONE INC.,, a corporation duly existing for and by virtue

of the laws of the Republic of the Philippines, hereinafter represented
by___________________, its VisMin 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 INC. represented by _________________is the Plaintiff

in the abovecaptioned case;

2. He was authorized by the board of directors of PENSHONE INC.

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;
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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 ________ day

of February 4, 2008 at the City of Cebu, Philippines.

________________________________
Affiant

SUBSCRIBED AND SWORN to before be this _______ day of February,

2008 at the City of Cebu affiant exhibiting to me his SSS ID NO.
________________ issued on _____________ at ________________.

NOTARY PUBLIC

Doc No_______;
Page No. _____;
Book No. _____;
Series of 2008.