Big bank refuses to pay up despite court order?

If you know Charlie Leobrera personally, you know he’s not the type to cry wolf.

Charlie is the owner-operator of a phenomenally successful resort in Anilao, Batangas called Vistamar. A favorite of many large companies, Vistamar does not want for clients and is perpetually fully booked because of its reasonable pricing schemes and pristine clear waters.

Charlie narrated an interesting tale of woe which I am sure would make for interesting reading among our readers. According to Charlie, way back in 1979, when he was still active in the export business (he was a pioneer in shell exporting), a very large bank, one of the largest still in the country today, unintentionally failed to deliver to him three Letters of Credit, for which he naturally complained for damages in the amount of P500,000. Charlie narrates that Big Bank acknowledged its own inefficiencies and agreed to send letters of apology to Mr. Leobrera’s foreign clients, to shoulder his legal expenses in the amount of P10,000, and to grant him a loan for as many years (a little over nine years) to serve as working capital in order to recover the P500,000 loss at the lowest possible interest rates. This part clearly shows Charlie’s goodwill in the matter.

Thus, from 1980 to 1985, Charlie was granted several loans which were renewed as the need arose. However, in July 1986, all the goodwill from Big Bank stopped altogether, according to Charlie and, without explanations, they demanded immediate payment of the loans. This is, of course, in total disregard of their commitment. Charlie balked and insisted that they honor their previous commitment. Want to know what Big Bank did? This is Charlie’s story:

1. They conveniently misplaced the export documents of two of Mr. Leobrera’s foreign clients;

2. They conveniently failed to advise Charlie of a remittance from another local client from Davao City.

It is hard to imagine that a respected institution can resort to harassment tactics such as this. Thus, in 1987, Charlie was forced to file a suit for damages with injunction to prevent the foreclosure of the mortgage he executed in favor of the bank. However, in the same year, while the case was pending in the courts, Big Bank allegedly foreclosed the two properties of Charlie, consolidated the titles, and even actually sold the property to a third buyer, per Charlie’s accounts.

According to Charlie, the harassment went even further. Big Bank reportedly refused to accept a remittance from one of Charlie’s clients which, Charlie claims, would have been enough to cover his quarterly amortization in another loan. In fact, Charlie says Big Bank refused to honor subsequent deposits as payment to the quarterly amortization in order to justify the bank’s acceleration of the loan and refused to negotiate a Letter of Credit despite the fact that it had already accepted the handling fee.

After a prolonged trial, the Court a Quo rendered judgment in favor of Charlie. To cut a long story short, the lower courts awarded Charlie P11.6 million, P10 million of which was for damages for one suit, and for the other suit, a total of P4.5 million plus the conveyance of the foreclosed properties back to Charlie. This was in 1989, a full decade after the initial filing of the suit. Still, it was sweet victory for dear old Charlie.

Of course, Big Bank had to appeal, but said appeal was, per Charlie’s account, dismissed by the Court of Appeals, allegedly for lack of merit. This court also apparently modified the moral damages, reducing it to P00,000 and the attoryney’s fees to P100,000.

You think that is the end of the story? Big Bank reportedly elevated the two cases to the Supreme Court by way of Petition for Review on Certiorari. In 2001, Charlie reports that the Supreme Court vindicated him, upholding the two courts’ decisions in his favor, effectively denying the petition of Big Bank. The Supreme Court reportedly cited a preponderance of evidence to support an award of damages. However, the award of actual damages was also reportedly modified and reduced.

You think that is the end of the story? Big Bank reportedly filed for reconsideration which the high court again resolved to deny with finality. In answer to Big Bank’s second motion for clarification was taken up by the high court and, accordingly, the Supreme Court, according to Charlie, the real estate mortgage he contracted from Big Bank to secure his obligation was ordered reinstated. This was in 2004.

Two decades have passed since this series of suits, countersuits and appeals have been initiated. To date, Charlie has not received a single cent, according to him. He asks this question of me: what does it take to have justice served in this country? When all three levels of the court have effectively ruled in his favor, what is his next course of action? Charlie is no spring chicken anymore, although admittedly he still has a lot of spring in him. In all this time, much has been lost in terms of unrealized rentals from these properties foreclosed and eventually sold to third parties by Big Bank. I’d like to think that an ordinary citizen can take on a Goliath of an institution if he is in the right, and with the highest court in the land on his side, nothing should stand in the way of justice. After all, justice delayed is justice denied.

Let’s wait and see what the developments would be in this case. Very interesting, don’t you agree?

The latest and best autos and bikes at the Fort

If you are in the market for a new car, SUV, AUV, van, pick-up or even a bike then the place to be today and tomorrow would be the Central Gateway 1, Fort Bonifacio where you’ll find the biggest and most complete display of the latest model vehicles from the country’s major automobile and motorcycle manufacturers and distributors.

The Petron 2006 Auto Focus Automobile/Motorcycle of the Year People’s Choice Awards are formally launched today by way of the opening of this largest annual motor vehicle exhibition in the country. Aside from just seeing these latest models real up close, test drives and rides are offered by the auto firms for the public to better scrutinized the different models for the purpose of possibly buying or to determine their models of choice to be given their vote of confidence and eventually proclaimed the Petron Auto Focus 2006 Automobile/Motorcycle of the Year – People’s Choice.

All roads lead to the Fort today and tomorrow for the biggest annual motoring event of the year. Be there or miss out on all the fun and the prizes too – raffles are done every 10 to 15 minutes and surprise gifts from the exhibitors go to lucky spectators.

Mabuhay!!! Be proud to be a Filipino.

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