MANILA, Philippines - The Makati Regional Trial Court (RTC) said it is Pag-IBIG not Globe Asiatique which is liable for specific performance and damages to Globe Asiatique.
In a resolution dated Jan. 30, 2012, a copy of which was obtained only last Friday, the Makati court holds that Pag-IBIG breached its memorandum of agreement (MOA) and funding commitment agreements (FCAs) which it signed with Globe Asiatique when it refused to accept the replacement buyers being offered by the latter pursuant to the provisions of their contracts. According to the court, the MOA and FCAs allow Globe Asiatique to replace defaulting buyers.
The right to replace defaulting buyers is included in the five-year buy back guarantee of Globe Asiatique inserted by Pag-IBIG in the contracts which it solely prepared, alternative to the right of Globe Asiatique to directly pay off the loan of the buyer/borrower or for Pag-IBIG to cause the automatic off-setting of the unpaid buyer’s loan with the retention, escrow and other receivables of Globe Asiatique which are still in the possession of Pag-IBIG, the court explained.
The Makati Court also rejected the defense of Pag-IBIG that Globe Asiatique is guilty of breach of warranties under the FCAs when the latter allegedly approved the Pag-IBIG loan applications of a substantial number of fictitious or ghost buyers.
Explained the court: “Defendants should not be allowed to escape liability with impunity by simply alleging that the defaulting buyers-borrowers are fictitious and spurious because in the first place, defendant HDMF was the one, based on admitted and undisputed evidence, its Charter and provisions of the said contracts, that approved all the Pag-IBIG Fund membership and loan applications of the buyer-borrowers which defendant HDMF now claims to be substantially composed of fictitious and spurious buyers-borrowers.”