Republic of the Philippines

REGIONAL TRIAL COURT

National Capital Judicial Region
Branch 101, Quezon City

OFELIA E. GAMILLA, as
represented by her heirs
MARY ELIZABETH GAMILLA,
JAIME GAMILLA, REYNALDO
GAMILLA, as further
represented by his heirs
Genevieve O. Gamilla & CIVIL CASE No:
Regene Josephine O. Gamilla, R-QZN-15-02503-SC
ATTY. KRISTIA GAMILLA,
KRISPEL JANE GAMILLA & FOR:
KAREN CHRISTIE GAMILLA,,
ANNULMENT OF AUCTION
Defendant/s. SALE AND DAMAGES

-versus-

SPOUSES ELMOR J. CASTILO

AND FLORA N. CASTILLO,

Intervenors,
X---------------------------------X

COMPLAINT-IN-INTERVENTION

COMES NOW the Intervenors, by the undersigned

counsel, and unto this Honorable Court, most respectfully
requests for leave to intervene in the above-captioned
case, for the following reasons:

Intervenors, Spouses Castillo, are of legal age, Filipinos

and with residence at Mapayapa Village 2, Q.C.;

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 Intervenors have a pending case against the private
defendants in this case, specifically against OFELIA E.
GAMILLA, as represented by her heirs MARY ELIZABETH
GAMILLA, JAIME GAMILLA, REYNALDO GAMILLA, as further
represented by his heirs Genevieve O. Gamilla & Regene
Josephine O. Gamilla, ATTY. KRISTIA GAMILLA, KRISPEL
JANE GAMILLA & KAREN CHRISTIE GAMILLA, pending before
Branch 217 of the Regional Trial Court of Quezon City with
Civil Case No. Q-10-66258;

A copy of the Motion for Leave of Court to Admit Attached

Amended Answer with Special and Affirmative Defenses and
Counterclaim for Damages filed with the above-mentioned
Court is attached here as ANNEX “A”.

One of the issues of the said case involves the Auction

Sale participated into by herein Spouses Castillo and Ofelia E.
Gamilla which is the subject of this Annulment of Auction Sale
and Damages with Case No. R-QZN-15-02503-SC pending
before this Honorable Court.

Ofelia E. Gamilla entered into a joint-venture agreement

with the herein intervenors, Spouses Elmor J. Castillo and
Flora N. Castillo, where Mrs. Gamilla financed the Spouses
Castillo in participating in auction sales of delinquent
properties foreclosed by the City Treasurer of Quezon City.

The services of Spouses Castillo were secured as they

have been licensed brokers for several years and have
knowledge and expertise with regards to Auction of delinquent
properties, transfer and sales of real property. Attached as

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ANNEX “B” is a copy of their license as issued by the
Professional Regulatory Commission (PRC).

Their relationship started when Mrs. Ofelia Gamilla

received a Notice of Delinquency from the Treasurer’s Office of
Quezon City regarding a property owned by her parents. It is
only then when it became apparent that the title to the said
property was lost. Mrs. Gamilla then secured the services of
Spouses Castillo in having the said title reconstituted.

The said title was reconstituted by virtue of a decision

dated April 2, 2001, a copy is attached herein as ANNEX “C”,
and a Reconstituted Transfer Certificate of Title No. 7717
under RT-1224488 (7717) was issued to Mrs. Gamilla, a copy
is attached herein as ANNEX “D”.

To transfer the title in the name of Mrs. Gamilla, she

again engaged the services of Spouses Castillo who were able
to do so as a New Transfer Certificate of Title was issued in
Mrs. Gamilla’s name. Attached as ANNEX “E” is a copy of the
Transfer Certificate of Title No. N- 259620.

These transactions were completed on February 10, 2004

and thus Mrs. Ofelia Gamilla issued two checks, a United
Coconut Planters Bank check in the amount of four hundred
fifty thousand pesos (Php 450,000.00) and another Philippine
National Bank check in the amount of three hundred fifty
thousand pesos (Php 350,000.00) which was only a part of the
agreed 20% share in the Market or Zonal Value of the lot
covered by the title transferred in the name of Mrs. Gamilla.

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Copy of the receipts is attached as ANNEX “F” and the checks
as ANNEX “G” and “H” respectively.

In informing Mrs. Ofelia Gamilla of the accomplishments

of Spouses Castillo, the latter prepared an inventory of
documents which was received by Mrs. Gamilla. Attached here
is a copy of the “Inventory of Documents” as ANNEX “I”.

Services of the Spouses Castillo were also secured when

Mrs. Ofelia Gamilla acquired two parcels of land in Alfonso,
Cavite for her two sons, Reynaldo and Jaime all surnamed
Gamilla. The task involved the transfer of the titles bought in
the name of her sons. In completing the said task, the Spouses
Castillo again made an “Inventory of Documents”, attached
here as ANNEX “J”, a “Summary of Expenses” as ANNEX
“K”, Titles in the names of Reynaldo and Jaime as ANNEX “L”
and “M” respectively.

It is because of these transactions that lead Mrs. Gamilla

in inquiring about how properties in Metro Manila may be
bought and therefore sought the advice of Spouses Castillo
with regards to participating in Public Auction of Delinquent
Realty Tax Owners.

Mrs. Ofelia Gamilla got interested and agreed with

Spouses Castillo that once the properties were acquired, Mrs.
Gamilla will sell the same for profit under the following terms:

1) Mrs. Gamilla will provide the pot money for the

Auction Sales;

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 2) Spouses Castillo will provide their expertise in
doing research of the documents pertaining to
prospected properties put up for auction;

3) Spouses Castillo will participate in the bidding

process by offering bid prices for properties
recommended by the Spouses Castillo;

4) If sale is successful parties will deduct all the

incurred expenses and the net will be divided
among the Plaintiff and Defendant into Two (2), Fifty
(50%) percent of the net will go to Mrs. Gamilla and
the other Fifty (50%) percent will go to the Spouses
Castillo as their share.

That out of the venture, Mrs. Gamilla and Spouses were

able to acquire Twenty Seven (27) lots, all in Metro Manila, of
the Twenty Seven (27) lots, eleven (11) were redeemed by the
registered owners, fourteen (14) lots under Petition for
Consolidation, and two (2) lots for refund. Copy of the
“Summary/Inventory of the Properties Acquired” (27 lots)
is hereto attached as ANNEX “N”.

These were all acknowledged by Mrs. Ofelia E. Gamilla in

a LETTER DATED 17 JULY 2017 addressed to the Spouses
Castillo. A copy is attached as ANNEX “O”.

Also there were several checks and cash vouchers issued

to Spouses Castillo by Mrs. Gamilla as payment of their share
in the joint venture, personal expenses, transportation
expenses, meeting expenses, payment of taxes, for personal

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use, personal expenses, cash and expenses regarding the
auctioned properties. Attached here are copies of checks and
cash vouchers paid by Mrs. Gamilla to Spouses Castillo as
ANNEX “P” to “__” respectively.

Moreover, in order to protect their interest in the said

joint venture and as evidence of their right to possess the
same, it was agreed upon that the original documents from the
City Treasurer’s Office of Quezon City be kept by the Spouses
Castillo, to be released only when their share in the said
property is given.

As can be gleamed from the above, it can be said that

Mrs. Ofelia E. Gamilla and the Spouses Castillo entered into a
contract with each other. Their actuations show that there was
an agreement between them that necessitated constant
payment of money and receipt of documents. The Supreme
Court has established the concept of an implied-in-fact
contract, to wit:

“We agree with the petitioner that, based on

the records, an implied-in-fact contract of sale
was entered into between the respondent and FEMF.
A contract implied in fact is one implied from
facts and circumstances showing a mutual
intention to contract. It arises where the
intention of the parties is not expressed, but an
agreement in fact creating an obligation. It is a
contract, the existence and terms of which are
manifested by conduct and not by direct or
explicit words between parties but is to be
deduced from conduct of the parties, language
used, or things done by them, or other pertinent
circumstances attending the transaction. To
create contracts implied in fact, circumstances
must warrant inference that one expected
compensation and the other to pay. An implied-in-
fact contract requires the parties’ intent to
enter into a contract; it is a true contract. The
conduct of the parties is to be viewed as a
reasonable man would view it, to determine the
existence or not of an implied-in-fact contract.

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 The totality of the acts/conducts of the parties
must be considered to determine their intention.
An implied-in-fact contract will not arise unless
the meeting of minds is indicated by some
intelligent conduct, act or sign.”1 (BOLD OURS)

Therefore, Intervenors has a legal interest in the matter

in litigation, or in the success of the complainant, or is so
situated as to be adversely affected by a distribution or other
disposition of the parcel of land, subject matter of the above-
captioned case.

Any agreement reached by the parties in this case could

be prejudicial to herein Spouses Castillo. Their right to any
proceeds derived from the property subject of this Annulment
proceeding should be respected and addressed by the
Honorable Court.

Also, pursuant to the Civil Code, at the very least,

Spouses Castillo are entitled to damages on the ground that
any person in the exercise of his rights duties and obligation
should give everyone his due.

“Art. 19. Every Person must, in the exercise

of his rights and in the performance of his
duties, act with justice, give everyone his due,
and observe honesty and good faith.

X x x

Art. 21. Any person who willfully causes

loss or injury to another in a manner that is
contrary to morals, good customs or public policy
shall compensate the latter for the damage.”

1
University of the Philippines vs. PHILAB Industries Inc., G.R. No. 152411, September 29, 2004

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 That this intervention will not, in the least, unduly delay
or prejudice the adjudication of the rights of the original
parties in the case.

That the Intervenors’ rights can be fully protected in this

proceeding rather than by filing a separate proceeding.

PRAYER

WHEREFORE, it is most respectfully prayed of this

Honorable Court that after due notice and hearing judgement
be rendered in favor of Complainant Intervenors, Spouses
Castillo, and against Mrs. Ofelia E. Gamilla, to wit:

To order Private Defendant, Ofelia E. Gamilla, as

represented by her heirs, to pay Spouses Castillo of their fifty
(50%) percent share in the net income of the proceeds derived
by them in this case;

To order Private Defendant to pay Spouses Castillo the

amount of three million pesos (Php 3,000,000.00) as moral
damages;

To order Private Defendant to pay Spouses Castillo the

amount of one million pesos (Php 1,000,000.00) as exemplary
damages;

To order Private Defendant to pay Spouses Castillo the

amount of fifty thousand pesos (Php 50,000.00) as Attorney’s
fees;

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 To order Private Defendant to pay Spouses Castillo the
amount of three thousand pesos (Php 3,000.00) per hearing as
appearance fees;

To order the Private Defendants to pay the Cost of suit.

Petitioner prays for such other just and equitable reliefs.

Quezon City, Philippines, 27 October 2017.

JAMES MARECK M. DESOACIDO

Counsel for the Intervenors
Ground Floor, Manere Building I, V-
Luna Av., Corner Matahimik St.,
Diliman, Q.C.
PTR No.4238935C/02-21-17/QC
IBP No. 1080816/02-20-17/QC
ROLL No. 66692
MCLE Exempt per MCLE Governing
Board Order No. 1, s. 2008

NOTICE OF HEARING

THE BRANCH CLERK OF COURT

Regional Trial Court
Branch 101 – Quezon City

ATTY. VICTOR ARIEL G. SOLIVEN

Counsel for the Plaintiff
G/F/ F. Soliven Bldg., 860 Santo Tomas St.,
Sampaloc, Manila

Greetings:

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 Please submit the foregoing Complaint for Intervention,
immediately upon receipt hereof, to this Honorable Court for
its kind consideration and approval.

JAMES MARECK M. DESOACIDO

EXPLANATION
(Pursuant to Sec. 11, Rule 13 of the 1997 Rules of Civil
Procedure)

This Motion for Leave to File Complaint-in-Intervention is

being served by Registered Mail/LBC, personal service being
impractical on account of the distance, heavy vehicular traffic
and lack of available messengerial staff at this time.

JAMES MARECK M. DESOACIDO

COPY FURNISHED:

ATTY. VICTOR ARIEL G. SOLIVEN

Counsel for the Plaintiff
G/F/ F. Soliven Bldg., 860 Santo Tomas St.,
Sampaloc, Manila

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