Republic of the Philippines

NATIONAL CAPITAL JUDICIAL REGION

REGIONAL TRIAL COURT
Branch 139
MAKATI CITY

PEOPLE’S CREDIT AND FINANCE

CORPORATION,
Plaintiff,

-versus- CIVIL CASE NO. 07-480

For: Collection of Sum of Money
and Damages
ASIAN LENDING INVESTORS, INC.
ET AL.,
Defendants,
x-------------------------------------------------x

PRE-TRIAL BRIEF
(for individual defendants)

DEFENDANTS, SPOUSES GUILLERMO R. SOCO and ADELINA O.

SOCO, INOCENTES C. PEPITO JR., PERFECTO C. QUIJANO, JR., AND
VICENTE GO, through undersigned counsel unto the Honorable Court
respectfully submits this Pre-Trial Brief and states:

PARTIES

1. Plaintiff People’s Credit and Finance Corporation (People’s Credit) is a

government-owned or controlled corporation organized and existing
under Philippine laws with principal office and place of business at 2 nd
floor, Accelerando Building, No. 395 Sen. Gil J. Puyat Avenue, Makati
City;

2. Defendant Asian Lending Investors, Inc. (ALII) is a domestic corporation

duly organized and existing under and by virtue of the laws of the
Philippines, with principal office and place of business at Ground floor,
Witco Building, A.S. Fortuna Street, Mandaue City;
3. Defendants Guillermo R. Soco and Adelina O. Soco are married to each
other, both Filipino, of legal age, and with postal address at Ground floor,
Witco Building, A.S. Fortuna Street, Mandaue City;

4. Defendants Inocentes C. Pepito, Jr., Perfecto C. Quijano, Jr. and Vicente Go

are all Filipinos, married, of legal age, and also with postal address at
Ground floor, Witco Building, A.S. Fortuna Street, Mandaue City;

STATEMENT OF FACTS

1. ALII is an accredited partner and conduit of People’s Credit in its

microfinance program operations in the Visayas area for which ALII was
initially granted P5M credit line, which was later on increased to P20M;

2. ALII contracted several loans from People’s credit to be re-lent to poor

individuals.

3. On the 8th disbursement, People’s Credit released only P2 million instead

of the P4 million.

4. Due to this, ALII suffered financial setbacks because the sub-borrowers

have lost their trust in ALII.

5. ALII defaulted in its payments and, in a letter dated February 12, 2006,
invoked the provision in the Promissory Note and Assignment of
Assets/Credits which states that “the proceeds and/or funds of the
Assigned Credits in the event of default shall automatically ceded,
transferred and delivered unto the Lender by virtue of this Assignment
without the necessity of any new writing or execution of any document,
therefore.” ALII endorsed all its credits to People’s Credit.

WILLINGNESS TO ENTER INTO AMICABLE SETTLEMENT OR

ALTERNATIVE MODES OF DISPUTE RESOLUTION
 Defendants are willing to enter into an amicable settlement or alternative
modes of dispute resolution with People’s Credit upon terms which are just and
equitable under the premises.

SUMMARY OF ADMITTED FACTS AND PROPOSED STIPULATION OF

FACTS

Individual defendants incorporate the admissions in its answer. As to

Plaintiff People’s Credit, they propose the following facts to be admitted:

1. ALII, as implementor of the microfinance program of People’s

Credit in the Visayas, undertook a high risk operation because
the sub-borrowers of the loan are poor individuals undertaking
livelihood projects.

2. The credit line was increased from P5 million to P20 million

owing to ALII’s good performance.

3. ALII HAS A JURIDICAL PERSONALITY SEPARATE AND

DISTINCT FROM THAT OF GUILLERMO R. SOCO,
INOCENTES C. PEPITO, JR., AND PERFECTO S. QUIJANO.

4. Guillermo R. Soco, Inocentes C. Pepito, Jr. and/or Perfecto S.

Quijano signed the pro-forma loan agreement and pro-forma
surety agreement AS OFFICERS OF THE CORPORATION.

5. The document referred as “PROMISSORY NOTE AND

ASSIGNMENT OF ASSETS/CREDITS” exists and was duly
executed. It contains a provision which states: “ the proceeds
and/or funds of the Assigned Credits in the event of default
shall automatically ceded, transferred and delivered unto the
Lender by virtue of this Assignment without the necessity of
any new writing or execution of any document, therefore.”
6. ALII religiously paid its obligations at the start of the
implementation of the microfinance program.
7. People’s Credit released only P2 million instead of P4
million,which caused the failure of ALII to pay.

ISSUES TO BE TRIED

1. Whether or not plaintiff has a cause of action and whether or

not the obligation to pay has already been extinguished by
dacion en pago.

2. In case of non-extinguishment of the loan, whether or not the

sum of money allegedly claimed by plaintiff is the correct
unpaid balance owed by the defendant corporation.

3. WHETHER OR NOT THE INDIVIDUAL DEFENDANTS

CAN BE HELD SOLIDARILY LIABLE WITH THE
DEFENDANT CORPORATION FOR THE SUM OF MONEY
SOUGHT TO BE COLLECTED.

4. Whether or not individual defendants are liable for attorney’s

fees.

5. Whether or not individual defendants are liable for the costs of

suit.

DOCUMENTS AND EXHIBITS TO BE PRESENTED

The individual defendants will present the following

documents and reserve the right to present additional documentary
evidences, if necessary, in the course of the trial:

1. Articles of Incorporation of Asian Lending Investors, Inc.

The purpose is to prove the separate and distinct juridical
personality of the defendant Corporation.
2. Loan/Line Agreement executed on December 9, 1999
This will prove the contract of loan executed between the
parties.

3. Loan Agreement executed on October 11, 2000

This will prove the increase in the amount of the credit line
of ALII owing to its good performance during the first part of
the implementation of the program.

4. Promissory Note and Assignment of Assets/Credits attached in

the Answer (for the defendant ALII) as annex “4”.
This will prove the automatic transfer of credits in favor of
People’s Credit by virtue thereof the obligation to pay has been
extinguished.

5. Letter by Guillermo R. Soco dated on Dec 3, 2001

This will prove the importance of full disbursement of P4
million and the failure to make good such full disbursement by
People’s credit.

6. Memorandum dated December 18, 2001 from J. Rico C.

Coligado
This will prove that the continuous delay in the release of
loans to the borrowers might adversely affect the paying
performance of ALII’s clients.

7. Letter by defendant corporation’s counsel dated on February 12,

2006.
This will prove the endorsement of all credits of ALII to
People’s Credit.

WITNESSES TO BE PRESENTED
 Defendants will present the following witnesses:
1. Guillermo R. Soco
2. Adelina O. Soco
3. Inocentes C. Pepito, Jr.
4. Perfecto C. Quijano, Jr.
5. Vicente Go
They will testify as to the nature of the business of ALII, the
contract of loan, surety agreement, and other matters relating to the
claims and defenses of all defendants. Each of their testimonies is
approximated to last for 30 minutes.
A reservation is made to the effect that the defendants will
present additional witnesses as circumstances warrant.

DISCOVERY PROCEDURE AND REFERRAL TO A

COMMISSIONER

Defendants are willing to avail himself of any discovery procedure, or to

referral of any issues to commissioners as soon as, in his wise discretion, the need
for the same become apparent.

APPLICABLE LAWS AND JURISPRUDENCE

1. Pertinent provisions on the New Civil Code and Corporation Code.

2. Applicable jurisprudence in relation to the instant case.

AVAILABLE TRIAL DATES OF COUNSEL FOR COMPLETE

PRESENTATION OF EVIDENCE
 The defendants desire that the trial dates be agreed in open court in
conformity with the available trial dates of the counsel for the plaintiff and
the court calendar.

Respectfully submitted.

March 31, 2008, Cebu City for Makati City, Philippines.

LANDICHO AND ASSOCIATES LAW FIRM

Counsel for the Individual Defendants
Unit 204 Keppel Bldg.,
Samar Loop, Cor. Cardinal Rosales Area
Cebu Business Park,
6000 Cebu City, Philippines

BY:

FELIPE M. LANDICHO
IBP no. 722945, Cebu City, Jan. 3, 2008
PTR no. 3611841, Cebu City, Jan. 3, 2008
Roll no. 41885
Copy Furnished:
ATTY. LITO A. ALCERA
POSO, SUSUSCO & ALCERA
Collaborating Counsel for the Plaintiff
2nd Accelerando Building,
Sen. Gil J. Puyat Avenue,
Makati City
EXPLANATION
Pursuant to the provisions of Section 11 of Rule 13 of the 1997 Rules of
Civil Procedure, the undersigned counsel of defendants manifests that the filing
and service of the foregoing Pre-trial Brief is being made through registered mail
due to distance, which makes personal filing and service impracticable.

FELIPE M. LANDICHO