DRAFTING EXERCISE

CASE:

Mr. Nagoya’s version:

Sometime in March 2015, Mr. Nagoya attended an inspirational talk on “making your
money grow” with other individuals in a hotel conference room in Baguio City. He was invited
to the gathering by some investors who shared glowing stories of the profits they earned in a
few short months after they invested their money. Mr. Estafador gave the inspirational talk
and introduced his company he called Mysterio Investment Firm. He also introduced one of his
staff, Mr. Nalinlang. During the gathering, Mr. Estafador proposed to the attendees a very
lucrative business opportunity and he promised a thirty percent profit per month on their
investment. There was a lot of good vibes and positive testimony from other investors during
the meeting so all the attendees, including Mr. Nagoya, decided to invest their money with
Mr. Estafador.
Initially, Mr. Nagoya invested P 500,000. After he received the promised pay outs, he
added to his previous capital another P 500,000 so that his total investment reached P
1,000,000. After a few months, demanded the return of his total investment because he had
to fund his ukay-ukay business. He received amounts in the form of checks issued by Mr.
Estafador. For reasons unknown, Mr. Estafador instructed Mr. Nagoya to return the checks.
The checks with Mr. Estafador’s signatures were replaced by checks signed by his staff Mr.
Nalinlang. The checks are BPI checks with the following dates and amounts:
BPI check no. 08093 July 15, 2016 P 250,000
BPI Check no. 08094 August 15, 2016 P 250,000
BPI Check no. 08095 September 15, 2016 P 250,000
BPI Check no. 08096 October 15, 2016 P 250,000
Mr. Nagoya deposited the checks with his bank BDO SM branch ten days after the date
indicated in each check but the checks were all successively dishonored when sent to BPI and
returned to BDO with the following stamp “CLOSED ACCOUNT” He made several verbal
demands upon Mr. Estafador and Mr. Nalinlang but they both kept promising that their
Chinese counterparts will most assuredly remit the profits from Hongkong but its taking
sometime due to our strict bank regulations here in the Philippines.
Fed up with the promises, Mr. Nagoya through a notice of dishonour with demand
dated April 10, 2016 informed Mr. Estafador and Mr. Nalinlang of the dishonor of the checks
and demanded from them to make good the said checks within FIVE banking days from receipt
of the notice. The notice was sent to the Mysterio Offices by registered mail with registry
receipt signed by a staff in the office. Mr. Estafador already left for China and could not be
found.
 Mr. Nalinlang’s version:

When he learned of the impending complaint to be filed against him, Mr. Nalinlang got
angry and said he was merely a pawn of Mr. Estafador. He was employed as just a staff of Mr.
Estafador doing clerical jobs and fixing his schedules for the day. He was not privy to Mr.
Estafador’s business and did not know what Mr. Estafador did with all that money. In fact, he
also invested some of his money into the corporation before he became employed by it. All he
knew was that Mr. Estafador had a lot of Chinese associates he met frequently here and in
Hongkong and Mr. Estafador was investing the money in stocks in Hongkong. He was only
working with Mr. Estafador for a few months when he was pressured to open a BPI account
and issue checks to various persons. Mr. Estafador assured him that there was money to fund
the checks and that money would be regularly placed in his account to fund the checks.
Because he needed the job, he trusted Mr. Estafador and issued the checks. He swore that he
did not receive any of the amounts given to Mr. Estafador. He believed that Mr. Estafador
absconded with all the money of the investors.

INSTRUCTIONS:

1. Mr. Nagoya seeks your help in the drafting of a Judicial-affidavit for B.P. 22. Decide who you
will file the complaint against and the pertinent information you will allege in the affidavit.
Indicate in the Judicial Affidavit what your annexes as evidence will be.

2. Draft a sample Notice of dishonour with demand.

3. In another universe, Mr. Nalinlang seeks your help in the drafting of his counter-affidavit.
Decide what defense you will raise and the pertinent information you will allege in the
counter-affidavit. Indicate also what your annexes as evidence will be (if there are).

Note: you need not attach the actual documents as annexes just cite: e.g. the checks issued as
Annex A etc.

All work to be submitted to my email bcorpuzuminga@yahoo.com on or before

our final examinations.