Republic of the Philippines

Regional Trial Court

National Capital Judicial Region
Branch 81, Quezon City

MILLER ENG-AN CHUA,

Plaintif Civil Case No. 1

ANNULMENT AND/OR
DECLARATION OF NULLITY
OF: (A)
PETITION/APPLICATION FOR
EXTRA-JUDICIAL
FORECLOUSE UPON
TRANSFER CERTIFICATE OF
TITLE NO. T-12345 OF THE
REGISTRY OF DEEDS FOR
QUEZON CITY; (B) REAL
ESTATE MORTGAGE; (C)
NOTICE OF SHERIFF SALE;
(D) AFFIDAVIT OF
PUBLICATION; (E)
CERTIFICATE OF POSTING;
(F) CERTIFICATE OF RAFFLE;
(G) MINUTES OF AUCTION
SALE; (H) BID; (I)
CERTIFICATE OF SALE; (J)
AFFIDAVIT OF
CONSOLIDATION OF TITLE;
and (J) TRANSFER
CERTIFICATE OF TITLE NO.
T-45678

-versus-

BANK OF TAYUMAN and BAMBANG

BANK and REGISTER OF DEEDS OF
QUEZON CITY
Defendant

x-----------------------------------------x

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 COMPLAINT

COMES NOW, the Plaintiff, Miller Eng-an Chua, through

undersigned counsel, to this most Honorable Court, MOST
RESPECTFULLY STATES THAT;

1. The Plaintiff is of legal age, single and the owner of a

two-storey house located at 21 Mayon St.,Dapitanville
Subdivision, Sta. Mesa Heights, Quezon City, with TCT No. T-
12345 and with an assessed value of Five Million Pesos
(P5,000,000);

2. Defendant, Bambang Bank is a corporation duly

organized, registered and existing under and by virtue of the
laws of the Philippines, engaged in the business of banking,
with principal place of business at Nayumi Towers, 1357
Bambang St., Sta. Cruz, Manila;

Defendant, Bank of Tayuman is a corporation duly organized,

registered and existing under and by virtue of the laws of the
Philippines, engaged in the business of banking, with
principal place of business at RJT Bldg. 1234 Tayuman Street,
Sta. Cruz Manila;

3. On November 18, 2014, the Plaintiff left for Hong Kong

to pursue post-graduate studies under a two year
scholarship grant and resided there until December 25,
2016;

4. On December 25, 2016, the Plaintiff went back home and

was welcomed with a ransacked house and a missing iron
safe containing some cash, jewelries and pertinent personal
documents which includes the Certificate of Title of the
property subject of the complaint;

5. The Plaintiff immediately reported the incident to the

police, to which the latter responded by photographing the
said ransacked house where the steel safe was allegedly
placed and thereby filing a police report;

6. On December 27, 2016, the Plaintiff, as a person not

well-versed in the law, went to the Register of Deeds of
Quezon City to report the incident, and to request for the
replacement of duplicate Certificate of Title due to loss. The
Register of Deeds exhibited the Original Title to the Plaintiff,

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however, it informed him that his remedy to secure a
replacement for a loss title is to file a petition with the Court;

7. To the surprise of the Plaintiff, an advice was given by

the Register of Deeds of Quezon City that the subject
property has been mortgaged on account of loan granted in
the amount of Php 50 Million, in favor of Bank of Tayuman
and Bambang Bank on January 19, 2015, during the time the
Plaintiff was in Hong Kong and was already foreclosed on
October 9, 2016;

8. That the Real Estate Mortgage was foreclosed due to non-

payment of the mortgagor pursuant to the acceleration
clause stipulated by the former and the Defendants in the
contract of loan which provides that failure to pay six (6)
consecutive amortizations on the due date will give the
Defendants the right to foreclose the property extra
judicially;

9. As the Plaintiff was out of the country at the time the

supposed loan with the defendant banks took place and at
the time the property was mortgaged, no contract of loan,
and moreso of mortgage of a real property secondary to any
loan should be validated and should be rendered as effective
for lack of consent;

10. Upon inquiring from the Defendant Banks regarding the

loan transaction, Plaintiff discovered that the loan was
entered into by a person pretending to be Miller Chua. Upon
inspection of the documents submitted, Plaintiff learned that
the impostor used as one of his identification cards, fake
drivers license containing Plaintiffs name and address but
with the photograph of his neighbor, Erickson Luz;

11. The Plaintiff thereafter, proceeded to the house of the

impostor, Erickson Luz. It was here that Camille Vermug, the
sister of Erickson Luz admitted, after a threat of lawsuit
against them, that she was the one who stole the safe on
November 8, 2014 and the contents within and thereafter
connived with her brother, to obtain a loan with the
defendant banks with the title as collateral;

12. That the Defendant banks should be held liable for

failure to observe and exercise the extraordinary diligence
required from them as a banking institution, they, being
negligent in handling its affairs;

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13. The Defendant banks did not notice that the
identification cards presented to them by the impostor were
all falsities, all apparent on the face, and that the said
impostor is not the true owner of the Duplicate Certificate of
Title used as a collateral for the Real Estate Mortgage;

14. The Defendant banks committed the gravest act of

negligence when they merely relied on the title in granting
the loan. It did not even take any steps to ascertain the
genuineness of the documents submitted to them, nor did
they conduct any ocular inspection of the property to
ascertain its true owner;

15. The failure of the banks to conduct an ocular inspection

of the property manifests that the bank was negligent in
conducting its business. Otherwise, they would have
immediately discovered that the valuation of the property
was in excess of its true and actual value which is Php 5
Million in contrast with its Php 50 Million valuation to which
each of the Defendants granted a loan with the value of Php
25 Million each;

16. That a mortgagee-bank is expected to exercise greater

care and prudence before entering into a mortgage contract
even those involving registered lands in its dealings than
private individuals as their business is imbued with public
interest;

17. That the mortgagor, Erickson Luz, not being the true
owner of the subject property, cannot exercise any right of
ownership over the property; he cannot alienate nor can he
encumber it by constituting a Real Estate Mortgage, offering
it as a collateral; and

18. There being no valid mortgage entered into between the

impostor and the Defendants, the subsequent foreclosure of
the Real Estate Mortgage cannot be deemed to have been in
accordance with law and cannot be given effect to the
prejudice of the Plaintiff.

PRAYER

WHEREFORE, premises considered, it is most respectfully

prayed of this Honorable Court that judgment be rendered in
favor of the Plaintiff and that after judgment:

a. The foreclosure of mortgage, and mortgage be

cancelled and rendered as null and void together with the

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corresponding notice of sheriff sale, affidavit of publication,
certificate of posting, certificate of raffle, minutes of auction
sale, bid, certificate of sale, and affidavit of consolidation of
title;

b. The Register of Deeds of Quezon City be ordered to

cancel TCT No. T-45678 and restore TCT No. T-12345;

b. The defendant banks be ordered to pay One Million

Pesos (P1,000,000) for moral and exemplary damages and P
200,000 for the attorneys fees, costs and other expenses.

Such other reliefs and remedies under the premises are

likewise prayed for.

Quezon City, Metro Manila, Philippines, this 30 th day of

January 2017.

PEARSON SPECTER & ASSOCIATES

Counsel for Plaintif
7 Floor, ABC Bldg., 1000 Mayon St. corner
th

Dapitan, Quezon City

Tel. Nos. 5238268 to 70
Fax No. 521-3827

By:

ATTY. JUNALD C. MEJICA

PTR No. 888; 01-05-15; Manila
IBP No. LRN-888; 01-13-00; Q.C.
Roll of Attorneys No. 888
MCLE Compliance No. IV-0016591; 04-11-18

Atty. Jacqueline Rachel G. Liu

PTR No. 888; 01-05-15; Manila

IBP No. 888; 01-06-15; Quezon City
Roll of Attorneys No. 888
MCLE Compliance No. IV-0013546; 03-07-18

Page 5 of 8
Page 6 of 8
 VERIFICATION/ CERTIFICATION

I, MILLER ENG-AN CHUA, of legal age, residing at 21

Mayon St.,Dapitanville Subdivision, Sta. Mesa Heights,
Quezon City, after having been duly sworn to in accordance
with law, do hereby depose and state:
1. I am the plaintiff in the above-stated Complaint;

2. I caused the preparation of the foregoing Complaint;

3. I have read the contents thereof and the facts stated

therein are true and correct of my own knowledge and based
on authentic records;

4. I have not commenced any other action or proceeding

involving the same issues in any court, tribunal or quasi-
judicial agency;

5. To the best of my knowledge and belief, no such action

or proceeding is pending in the Supreme Court, the Court of
Appeals, or any other tribunal or agency;

6. If I should thereafter learn that a similar action or claim

has been filed or is pending before the Supreme Court, the
Court of Appeals, or any other tribunal or agency, I
undertake to report that fact within five (5) days therefrom
to this Honorable Court.

MILLER ENG-AN CHUA

Affiant

SUBSCRIBED AND SWORN to before me this 30th day of

January 2017 in Quezon City, Philippines.

ATTY. JUAN DELA CRUZ

Page 7 of 8
Roll Number 99999
IBP No. 78000001 dated 03.30.12
MCLE NO. IV-333333 dated 03.30.12

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