Form 25 - Pre-Trial Brief

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REPUBLIC OF THE PHILIPPINES

REGIONAL TRIAL COURT


THIRD JUDICIAL REGION
BRANCH 58
ANGELES CITY

SPS. BRAD PITT and ANGELINA


JOLIE,
Plaintiffs,
CIVIL CASE NO. 15272
For: Cancellation of
-versus-
Transfer Certificate of Title
Nos. 945-2012006471,
AWESOMENESS, INC.,
Conveyance of Transfer
represented by its Board of
Certificate of Title No.
Directors, and any and all persons
180202 and Declaration of
acting for and in their behalf,
Subrogation of Rights with
REGISTRY OF DEEDS, Angeles
Damages
City
Defendants
X---------------------------------------------X

PRE-TRIAL BRIEF

Defendant AWESOMENESS, INC. (hereinafter referred to as


“AWESOMENESS”), through undersigned counsel, unto this to this
Honorable Court, presents its Pre-Trial Brief as follows:

A. STATEMENT OF WILLINGNESS TO ENTER INTO


AMICABLE SETTLEMENT OR OF SUBMISSION TO
ALTERNATIVE MODES OF DISPUTE RESOLUTION

Defendant AWESOMENESS is willing to enter into an amicable


settlement or submit to alternative modes of dispute resolution, or
any agreement/s with Plaintiffs SPS. BRAD PITT AND
ANGELINA JOLIE (hereinafter referred to as “SPS. PITT”) as may be
allowed by law and under such terms as may be just and equitable.

B. BRIEF STATEMENT OF CLAIMS AND DEFENSES

1. In 2017, AWFUL DEVELOPMENT CORPORATION


(hereinafter referred to as “AWFUL”) purchased several subdivided
lots from NICE, INC..

2. On or about June, 2019, AWFUL, through its President,


VITO FERNANDEZ, approached defendant AWESOMENESS to

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secure a loan in the amount of P8,575,000.00 for the purpose of
paying in full its obligations to NICE, INC. arising from its purchase
of several parcels of land, including Lot 8, Block 3 subject of this case.

3. By reason of the foregoing, AWFUL executed a


Promissory Note dated 26 June 2019 for the amount of P 8,575,000.00.
The net proceeds of the loan in the amount of P 7,932,417.50 were
then correspondingly released to AWFUL through VITO
FERNANDEZ on the same date as evidenced by Check Voucher No.
12405.

4. Consequently, VITO FERNANDEZ, for himself and as


the representative of AWFUL, executed on 30 June 2019 and prior to
its sale to the plaintiffs SPS. PITT, the Real Estate Mortgage over six
parcels of land, including Lot 8, Block 3 subject of the instant case.

5. After full payment was made to NICE, INC. and the


corresponding titles were transferred to the name of AWFUL on 7
July 2019, possession of said titles, including Transfer Certificate of
Title No. 180202 (now Transfer Certificate of Title No. 045-2012006471),
was immediately given to defendant AWESOMENESS in line with
the Real Estate Mortgage.

6. By reason of the failure of AWFUL and VITO


FERNANDEZ to comply with the terms and conditions of the
Promissory Note and Real Estate Mortgage despite demand,
defendant AWESOMENESS was constrained to pursue extrajudicial
foreclosure proceedings over the properties subject thereof, including
Transfer Certificate of Title No. 180202, during which it was
adjudged the highest bidder during the public auction sale.

7. The plaintiffs SPS. PITT instituted HLURB Case No.


REM-03-11-479 before the Housing and Land Use Regulatory Board
(HLURB) for Cancellation of Mortgages, Specific Performance, with
Damages and Prayer for the issuance of a Writ of Preliminary
Injunction.

8. Not content, plaintiffs SPS. PITT instituted the instant


complaint before the Honorable Court.

9. In both cases, plaintiff SPS. PITT asserted the same rights


against substantially the same parties before the HLURB and the
Honorable Court. In both cases filed, plaintiffs SPS. PITT alleged that
the Real Estate Mortgage dated June 30, 2019 entered into by

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defendant AWESOMENESS and AWFUL was a violation of Section
18, or P.D. 957, hence they prayed for the cancellation of the
mortgage between defendant AWESOMENESS and AWFUL and the
cancellation of the Transfer Certificate of Title No. 045-2012006471
(previously Transfer Certificate of Title No. 180202).

C. SUMMARY OF ADMITTED FACTS WITH


PROPOSED STIPULATION OF FACTS

Defendant AWESOMENESS admits only those allegations


contained in its Answer with Compulsory Counterclaim and
respectfully present the following stipulation of facts with the
proposal for the admission thereof by the plaintiffs SPS. PITT:

1. In 2017, AWFUL purchased several subdivided lots from


NICE, INC..

2. On or about June, 2019, AWFUL, through its President,


VITO FERNANDEZ, approached defendant AWESOMENESS to
secure a loan in the amount of P8,575,000.00 for the purpose of
paying in full its obligations to NICE, INC. arising from its purchase
of several parcels of land, including Lot 8, Block 3 subject of this case.

3. By reason of the foregoing, AWFUL executed a


Promissory Note dated 26 June 2019 for the amount of P8,575,000.00.
The net proceeds of the loan in the amount of P7,932,417.50 were then
correspondingly released to AWFUL through VITO FERNANDEZ on
the same date as evidenced by Check Voucher No. 12405.

4. The genuineness and due execution of Promissory Note


dated 26 June 2019 and Check Voucher No. 12405.

5. Consequently, VITO FERNANDEZ, for himself and as


the representative of AWFUL, executed on 30 June 2019 and prior to
its sale to the complainants, the Real Estate Mortgage over six parcels
of land, including Lot 8, Block 3 subject of the instant case.

6. The genuineness and due execution of the Real Estate


Mortgage executed on 30 June 2019 be admitted.

7. After full payment was made to NICE, INC. and the


corresponding titles were transferred to the name of AWFUL on 7
July 2019, possession of said titles, including Transfer Certificate of
Title No. 180202 (now Transfer Certificate of Title No. 045-2012006471),

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was immediately given to defendant AWESOMENESS in line with
the Real Estate Mortgage.

8. By reason of the failure of AWFUL and VITO


FERNANDEZ to comply with the terms and conditions of the
Promissory Note1 and Real Estate Mortgage despite demand,
defendant AWESOMENESS was constrained to pursue extrajudicial
foreclosure proceedings over the properties subject thereof, including
Transfer Certificate of Title No. 180202, during which it was
adjudged the highest bidder during the public auction sale.

9. For failure of AWFUL to redeem the properties,


defendant AWESOMENESS caused the registration of the properties
subject thereof, including Transfer Certificate of Title No. 180202, in
its name.

10. Plaintiff SPS. PITT derives their title from AWFUL after
they made a reservation for a subdivision lot at the Montenegro
Estates particularly Transfer Certificate of Title No. 180202 (now
Transfer Certificate of Title No. 045-2012006471).

11. The plaintiffs SPS. PITT entered into a Contract to Sell


with AWFUL.

12. The plaintiffs SPS. PITT did not fully pay the purchase
price of the subdivision lot at the Montenegro Estates particularly
Transfer Certificate of Title No. 180202 (now Transfer Certificate of Title
No. 045-2012006471).

13. Based on the Contract to Sell entered into between


AWFUL and plaintiffs SPS. PITT, and to make their account current,
plaintiffs SPS. PITT are liable to pay the amount of P2,008,540.86 as
follows:

Particulars Amount (Php)


Principal due from December 18, 2019 until 587,355.62
July 18, 2023
Accrued interest from December 18, 2019 267,342.62
until July 18, 2023 at the rate of 12% per
annum.
Surcharges from December 18, 2019 until
July 18, 2023 at the rate of 6% for each month 1,153,842.62
in arrears.
1
Annex “2” hereof.

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Total Amount Dues 2,008,540.86

Thereafter, plaintiffs SPS. PITT should continue paying their


monthly amortizations as follows:

Date Due: Payment on Interest(Php) Total Balance on


principal Payment for Principal
(Php) the month (Php)
(Php)
8/18/2023 16,566.02 2,858.94 19,424.96 269,328.37
9/18/2023 16,731.68 2,693.28 19,424.96 252,596.69
10/18/2023 16,898.99 2,525.97 19,424.96 235,697.70
11/18/2023 17,067.98 2,356.98 19,424.96 218,629.72
12/18/2023 17,238.66 2,186.30 19,424.96 201,391.05
1/18/2024 17,411.05 2,013.91 19,424.96 183,980.00
2/18/2024 17,585.16 1,839.80 19,424.96 166,394.84
3/18/2024 17,761.01 1,663.95 19,424.96 148,633.83
4/18/2024 17,938.62 1,486.34 19,424.96 130,695.21
5/18/2024 18,118.01 1,306.95 19,424.96 112,577.20
6/18/2024 18,299.19 1,125.77 19,424.96 94,278.01
7/18/2024 18,482.18 942.78 19,424.96 75,795.83
8/18/2024 18,667.00 757.96 19,424.96 57,128.83
9/18/2024 18,853.67 571.29 19,424.96 38,275.16
10/18/2024 19,042.21 382.75 19,424.96 19,232.95
11/18/2024 19,232.95 192.33 19,425.28 0.00

14. The plaintiffs SPS. PITT instituted HLURB Case No.


REM-03-11-479 before the Housing and Land Use Regulatory Board
(HLURB) for Cancellation of Mortgages, Specific Performance, with
Damages and Prayer for the issuance of a Writ of Preliminary
Injunction.

15. In HLURB Case No. REM-03-11-479, plaintiffs SPS. PITT


asserted the same rights against substantially the same parties before
the HLURB and the Honorable Court. In HLURB Case No. REM-03-
11-479, plaintiffs alleged that the Real Estate Mortgage dated June 30,
2019 entered into by defendant AWESOMENESS and AWFUL was a
violation of Section 18, or P.D. 957, hence they prayed for the
cancellation of the mortgage between defendant and AWFUL and the
cancellation of the Transfer Certificate of Title No. 045-2012006471
(previously Transfer Certificate of Title No. 180202).

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D. ISSUES TO BE RESOLVED

Defendant AWESOMENESS proposes the following issues to


be resolved by this Honorable Court after due trial:

1. Whether or not the Real Estate Mortgage executed on 30


June 2019 between AWFUL and defendant
AWESOMENESS is valid and binding.

2. Whether or not defendant AWESOMENESS could


foreclose on the mortgage offered by AWFUL after
AWFUL failed to pay the loan of P8,575,000.00 when it
became due.

3. Whether or not the transactions between defendant


AWESOMENESS and AWFUL is binding upon plaintiffs
SPS. PITT.

4. Whether or not the sale between AWFUL and plaintiffs


SPS. PITT was in breach of the Real Estate Mortgage
executed on 30 June 2019.

5. Whether or not the sale between AWFUL and plaintiffs


SPS. PITT was rendered of no force and effect for the
failure of plaintiffs SPS. MENDOZO to pay the purchase
price.

6. Whether or not subrogation will take place between


defendant AWESOMENESS and AWFUL.

7. In the event that subrogation will take place, whether or


not plaintiffs SPS. PITT are liable to pay to defendant
AWESOMENESS, the amount of Philippine Currency:
Two Million Five Hundred Forty and 86/100 Pesos
(P2,000,540.86) representing the unpaid purchase price
under the Contract to Sell between AWFUL and plaintiff
SPS. PITT.

8. Whether or not the plaintiff SPS. PITT engaged in forum-


shopping.

E. EVIDENCE TO BE PRESENTED

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Defendant AWESOMENESS shall be presenting the following
documentary evidence:

EXHIBIT
DOCUMENT PURPOSE
NO.
“1” Secretary’s Certificate To prove that defendant
dated 29 July 2023 AWESOMENESS was
executed by Yesha authorized to file its Answer
Musngi. with Counter Claim in Civil
Case No. 15272 entitled
“Spouses Jesus Theodore I.
Mendoza and ANGELINA
JOLIE, plaintiffs, vs.
AWESOMENESS, INC.,
represented by its Board of
Directors, and any and ll
persons acting for and in their
behalf, Registry of Deeds,
Angeles City”.

To prove further that Joaquin


Fernandez is authorized to
act for and in behalf of
AWESOMENESS.

“2” Check Voucher No. 12405 To prove that defendant


for the net amount of AWESOMENESS released
P7,932,417.50. and VITO FERNANDEZ for
himself and as representative
“2-A” Signature of VITO of AWFUL Development
FERNANDEZ. Corporation received the net
proceeds of the loan in the
amount of P7,932,417.50.

“3” Promissory Note dated 26 To prove that defendant


June 2019. AWESOMENESS and VITO
FERNANDEZ, for himself
“3-A” Disclosure Statement of and as representative of
the Promissory Note AWFUL Development
dated 26 June 2019. Corporation entered in a loan
amounting to P8,575,000.00
“3-B“ Signature of VITO
FERNANDEZ appearing
on Promissory Note.

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“3-C” Signature of VITO
FERNANDEZ appearing
on Disclosure Statement.

“4” Deed of Real Estate To prove that defendant


Mortgage dated 30 June AWESOMENESS and VITO
2019 docketed as Doc. No. FERNANDEZ and AWFUL
1203; Page No. 93 Book Development Corporation
No. XL Series of 2019 entered into a Real Estate
Mortgage and executed a
“4-A” Second page thereof. Deed of Real Estate Mortgage
in the amount of
“4-B” Third page thereof P8,575,000.00.

“4-C” Fourth page thereof

“4-D” Signature of Joaquin


Fernandez

“4-E” Signature of VITO


FERNANDEZ

“5” Secretary’s Certificate To prove that AWFUL


dated 30 June 2019 Development Corporation
executed by Aloura Geluz. authorized itself and VITO
FERNANDEZ to enter into a
loan in the amount of
P8,575,000.00, and to sign
application forms, real estate
mortgage, promissory notes,
disclosure statements and
other pertinent papers that
may be required.

F. NUMBER OF WITNESSES TO BE PRESENTED

Defendant AWESOMENESS shall be presenting at least one (1)


witness, namely JOAQUIN FERNANDEZ, who shall testify, by way
of a judicial affidavit with regard to the following:

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1. In 2017, AWFUL DEVELOPMENT CORPORATION
(hereinafter referred to as “AWFUL”) purchased several
subdivided lots from NICE, INC..

2. On or about June, 2019, AWFUL, through its President, VITO


FERNANDEZ, approached defendant AWESOMENESS to
secure a loan in the amount of P8,575,000.00 for the purpose of
paying in full its obligations to NICE, INC. arising from its
purchase of several parcels of land, including Lot 8, Block 3
subject of this case.

3. By reason of the foregoing, AWFUL executed a Promissory


Note dated 26 June 2019 for the amount of P8,575,000.00. The
net proceeds of the loan in the amount of P7,932,417.50 were
then correspondingly released to AWFUL through VITO
FERNANDEZ on the same date as evidenced by Check
Voucher No. 12405.

4. Consequently, VITO FERNANDEZ, for himself and as


the representative of AWFUL, executed on 30 June 2019 and prior to
its sale to the plaintiffs SPS. PITT, the Real Estate Mortgage over six
parcels of land, including Lot 8, Block 3 subject of the instant case.

5. After full payment was made to NICE, INC. and the


corresponding titles were transferred to the name of AWFUL on 7
July 2019, possession of said titles, including Transfer Certificate of
Title No. 180202 (now Transfer Certificate of Title No. 045-2012006471),
was immediately given to defendant AWESOMENESS in line with
the Real Estate Mortgage.

6. By reason of the failure of AWFUL and VITO


FERNANDEZ to comply with the terms and conditions of the
Promissory Note and Real Estate Mortgage despite demand,
defendant AWESOMENESS was constrained to pursue extrajudicial
foreclosure proceedings over the properties subject thereof, including
Transfer Certificate of Title No. 180202, during which it was
adjudged the highest bidder during the public auction sale.

7. For failure of AWFUL to redeem the properties,


defendant AWESOMENESS caused the registration of the properties
subject thereof, including Transfer Certificate of Title No. 180202, in
its name.

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8. AVAILMENT OF DISCOVERY PROCEDURES

Defendant AWESOMENESS hereby manifests that it has not


availed, nor does it have the intention of availing discovery
procedures or referring the instant case to a commissioner.

9. AVAILABLE TRIAL DATES

Defendant AWESOMENESS proposes that the available trial


dates of the parties be determined during the pre-trial conference of
the instant case.

PRAYER

WHEREFORE, in view of the foregoing, defendant


AWESOMENESS respectfully prays that the foregoing Pre-Trial
Brief be made part of the records of the instant case, pursuant to
Administrative Matter No. 03-1-09 SC, and that the same be
considered in the rendition of the Pre-Trial Order.

Defendant AWESOMENESS further prays for such other relief


as may be deemed just or equitable under the premises.

Angeles City, 1st day of May, 2020.

AK FERNANDEZ
Law Offices
Counsel for the Respondent
123 P. Nuqui St.
CLM, Angeles City
(045) 458-1234 to 35

By:

ANTHONY KARL FERNANDEZ


Attorney's Roll No. _____/Vol. No. _____/Page _____
PTR No. _____/_____/Angeles City
IBP No. _____/_____/Pampanga
MCLE Compliance No.: _____/_____
Email Address: ak.fernandez85@gmail.com
Mobile: 0995-197-2715

Copy Furnished:

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ATTY. RALPH MORALES
Counsel for the Plaintiffs,
1097 Apt 9 Sugay Bldg.
McArthur Highway, Balibago,
Angeles City

THE REGISTRY OF DEEDS OF


ANGELES CITY
City Hall Compound,
Angeles City

EXPLANATION

In compliance with Section 11, Rule 13 of the 1997 Rules of Civil


Procedure, the undersigned counsel has caused the service of this
Compliance unto the above addressee via registered mail due to lack
of personnel to deliver the same personally.

ANTHONY KARL FERNANDEZ

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