Twin Towers Condominium Corporation vs.
CA, ALS, and Litonjua
Twin Towers Condominium Corporation
a non-stock corporation organized for the sole
purpose of holding title to and managing the
common areas of Twin Towers Condominium;
collects from all its members quarterly
assessments and dues authorized by its Master
Deed and its By-Laws
SEC Hearing officer ordered Twin Towers to
pay Litonjua moral and exemplary damages for
including Litonjua’s name in the list of
delinquent owners SEC Hearing officer ordered
ALS to pay the unpaid assessments and dues
BOTH parties filed their respective appeals to
the SEC en banc
SEC nullified the award of damages to Litonjua on
the ground that SEC had no jurisdiction over
Litonjua
SEC then remanded the case to the Hearing Officer
to determine the value of services Twin Towers
failed to render to ALS for their non-use of the
facilities and ruled that this value may be deducted
from the amount ALS will pay
Twin Towers appealed to the Court of Appeals.
 CA dismissed the petition, but sustained Twin
Towers’ claim against ALS for the payment of
the assessments and dues
 CA ordered for the value of services withheld by
Twin Towers to be deducted from the amount
to be paid by ALS, essentially rendering the
Condominium’s House Rule 26.3 as ultra vires
 CA ruled that Twin Towers is not expressly
authorized by its Master Deed and By-Laws to
prohibit delinquent members from using the
facilities of the Condominiu
Hence, present petition
Arguments:
Twin tower:
Condominium Act provides that the Master Deed may
authorize the condominium corporation to collect
“reasonable assessments to meet authorized
expenditures”
Twin Towers is expressly authorized by its Master Deed
to impose reasonable assessments on its members to
maintain common areas and facilities of the
Condominium ALS is legally bound to pay Twin Towers
assessment and dues
ALS Management
Denial by Twin Towers to ALS and Litonjua of the use of
Condominium facilities deprived Twin Towers of any
right to demand from ALS payment of any
condominium assessments and dues
Contracting party who is guilty of first breaching his
obligation is excused from such breach, if the other
party retaliates by refusing to comply with his own
obligation
Issue/Ruling:
1. Whether Twin Towers can collect assessments and
dues
Yes. Twin Towers is expressly authorized to collect
assessments and dues. RA 4726, or the Condominium
Act provides that the Master Deed may authorize the
condominium corporation to collect assessments to
meet authorized expenditures.
Sec. 4 of Twin Towers’ Master Deed provides that the
owner of each unit shall be liable for the common
expenses of the condominium project, and it shall be
paid to the Condominium Corporation
Under the exclusive membership clause of the Master
Deed, a registered unit owner becomes a member of
Twin Towers – as a member, ALS assumes the
obligation to share in the common expenses of the
Condominium Twin Towers’ Master Deed provides
that a member of the Condominium Corporation shall
share in the common expenses. This obligation does
not depend on the use or nonuse by the member of
the common areas and facilities of the Condominium
2. Whether or not House Rule 26.3 is valid
Yes, House Ruled 26.3 is valid.
House Rule 26.3 provides that the names of unit
owners who fail to pay two consecutive quarters
will be posted on the bulletin board, and they shall
not be allowed to use all of the facilities of the
condominium.
The Condominium Act, Twin Towers’ Master Deed,
and their By-Laws expressly empowers Twin Towers
to promulgate House Rule 26.3 Section 9 of the
Condominium Act provides that “the owner of the
project shall… register a declaration of restrictions
relating to such project” Such declaration of
restrictions may include “the power to enforce the
provisions of the declaration of restrictions” (Sec. 9
(a) (1))

3. Whether or not ALS can validly offset against its

unpaid assessments and dues the services withheld
by Twin Towers
No. ALS has no right to a reduction of its
assessments and dues to the extent of its non-use of
the Condominium facilities.
ALS cannot offset damages against the assessments
and dues because ALS is not entitled to damages
for alleged injury arising from its own violation of
its contract.
To recognize the validity ALS’ claim would be to
legalize its breach of the contract

Decision:
Twin Towers is expressly authorized to collect
assessments and dues from ALS House Rule 26.3 is
valid ALS cannot offset
ALS is ordered to pay all its overdue assessments
and dues (which will be determined by the RTC)
Petition GRANT ED CA decision SET ASIDE

Why is ALS obliged to share in the common expenses of

the condominium?
As a unit owner, ALS became a member of Twin Towers
and is thus obligated to share in the common expenses.
Sec. 8, (C) (I) of the Master Deed provides that “each
member of the Condominium corporation SHALL SHARE
IN THE COMMON EXPENSES of the condominium
project