republic of the philippines financial center, roxas ... · republic of the philippines government...

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... REPUBLIC OF THE PHILIPPINES GOVERNMENT SERVICE INSURANCE SYSTEM

FINANCIAL CENTER, ROXAS BOULEVARD, PASAY CITY

BOARD OF TRUSTEES

AMADO S. CAGUIOA,

- versus-

Petitioner;

GSIS BOARD CASE NO. 007-09 For Cancellation of Real Estate Loan from GSIS Records

GOVERNMENT SERVICE INSURANCE SYSTEM (GSIS).

DECISION

This is a Petition for cancellation from the records of the GSIS

the alleged false and fictitious real estate loan of the petitioner filed

on june 2, 2009.

FACTS OF THE CASE

The petitioner is a retired Judge of the Regional Trial Court of

Baguio City. He retired from the service on October 31, 2004 after

serving the government from 1992 to 2004. His request for

clearances and claim for benefits were ~enied by the GSIS on the

ground that he has an existing and delinquent real estate loan in the

amount of PhP35,500.00 which accumulated to PhP1,892,530.75 as of

December 31, 2006 because of interests and other charges. Believing

that the loan was fictitious, he requested the GSIS to furnish him

copies of documents evidencing the said loan but he was only given a

computer print-out of the same.

ofl O ASCaguioa vs. GSIS

GSI S Board Case No. 007-09

The GSIS stood pat in its decision to deny the petitioner's

request for clearances and claim for benefits unless the alleged real

estate loan is settled. Hence, this Petition.

ISSUE

Whether the real estate loan of petitioner is false and

fictitious.

DISCUSSION

The petitioner argued that his alleged real estate loan is false

and fictitious for the following reasons:

1. He never obtained a housing loan from the GSIS;

2. He was not yet a member of the GSIS when said loan was allegedly obtained by him in 197 5 because he entered the government service only in 1992; and

3. There are no documents showing that he ever applied for or signed any loan documents concerning or evidencing the said loan.

The GSIS countered that a housing loan account in the name of

petitioner exists in the database of the GSIS with policy number

HPAL111823; the said housing loan was granted on 30 October 1975

in the amount of PhP35,500.00; there is a Contract to Sell between

petitioner and the developer (Laigo Realty Corporation) showing that

the fonner purchased from the latter, on installment basis, a

residential lot (Lot No. 14, Block No. 24, Palos Verdes Estate

Subdivision, Caloocan City); and the said Contract to Sell established

the fact that petitioner had applied for the housing loan in order to

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ASCaguioa vs. GSIS GSIS Board Case No. 007-09

finance the acquisition of said residential lot from Laigo Realty

Corporation.

The GSIS further argued that petitioner entered into a joint

Agreement with the GSIS wherein petitioner acknowledged that GSIS

is the owner of the subject residential lot, and that he is the buyer-

occupant of the same. The GSIS also bound itself to credit all

payments made by petitioner to Laigo Realty Corporation to the

purchase price of the property in the amount of PhP35,500.00 while

petitioner bound itself to pay the GSIS the monthly installments for

the property in the amount of PhP231.98 starting November 1972.

We find for the petitioner.

The only documents in the possession of the GSIS pertaining to

the alleged housing loan account of the petitioner are as follows:

1. Contract to Sell between Laigo Realty Corporation

and petitioner covering the sale of the subject

property to petitioner on installment basis

(PhP231.98 per month) in the amount of

2. Certification issued by the petitioner that he had no

personal knowledge of any other claimant to the

subject property; and

3. The joint Agreement between the GSIS and

petitioner.

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ofJO ASCaguioa vs. GSIS

GSIS Board Case No. 007-09

In response to the Subpoena Duces Tecum and Ad

Testificandum dated 12 january 2010, the Officer IV, Records

Management Department_ GSIS, informed the Hearing Officer that

"the housing records of AMADO S. CAGUIOA is not in the custody of

Records Management Department." This confirmed the fact that the

only records regarding the housing loan account of petitioner are

those enumerated above and nothing more.

The documents were scrutinized to determine if any of them is

sufficient to prove that petitioner obtained a loan from the GSIS. With

regard to the Contract to Sell between petitioner and Laigo Realty

Corporation dated june 29, 1970, it is only a contract for the sale on

installment basis of a house and lot. It is, therefore, not sufficient to

prove that petitioner obtained a loan from the GSIS. The GSIS is not

also a party to the said Contract to Sell.

As to the certification issued by the petitioner in 1972, it is only

an acknowledgement that he had no personal knowledge of any other

claimant to the subject property and, therefore, not sufficient to prove

that petitioner obtained a loan from the GSIS.

Finally, as regards the joint Agreement between the GSIS and

petitioner dated December 1972, the same provides:

WHEREAS, prior to the acquisition of the abovementioned property by PAR1Y OF THE FIRST PART (respondent GSIS), the PAR1Y OF THE SECOND PART (petitioner) as buyer of the said lot claims to have paid certain amounts to the Laigo Realty Corporation, as per his/her "Contract to Sell" executed by and between them;

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PageS ofl O ASCaguioa vs. GSJS


WHEREAS, pending completion of the development of the subdivision and determination of the final price of said lot, as hereunder defined, the PARTY OF THE FIRST PART deems it necessary to collect monthly amounts from the PARTY OF THE SECOND PART equivalent to the monthly installment which he/she had been paying to Laigo Realty Corporation;

NOW, THEREFORE, for and in consideration of the foregoing premises, the PARTY OF THE FIRST PART agrees to the continuance of the occupancy and use of the above-mentioned lot by the PARTY OF THE SECOND PART under the following terms and conditions:

1. The PARTY OF THE SECOND PART binds himself/herself:

a . To pay monthly for the said lot in the amount of TWO HUNDRED THIRTY ONE PESOS and 98/100 (PhP231.98) to the PARTY OF THE FIRST PART at its principal office in the City of Manila beginning November 1972 and not later than the 5th day of each month thereafter;

2. The PARTY OF THE FIRST PART likewise binds itself:

XXX XXX XXX

b. To credit payments made by the PARTY OF THE SECOND PART to the PARTY OF THE FIRST PART under condition No. 1-a above to the purchase price of the lot after final determination thereof;

c. To execute a Contract to Sell of said lot in favor of the PARTY OF THE SECOND PART, or his/her heirs in accordance with the terms and conditions herein and to be agreed upon; and

d. To undertake the development of said subdivision through its Engineering and Development Project Department.

The only documentary evidence linking the petitioner to GSIS is

the aforecited Joint Agreement the contents of which are summarized

below:

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oflO ASCaguioa vs. GS/S

GS/S Board Case No. 007-09

1. Under a Contract to Sell, the petitioner bought from

Laigo Realty Corporation, on installment basis, a

residential lot located at Lot 14, Block 24, Palos

Verdes Estate Subdivision, Caloocan City;

2. Petitioner already paid certain amounts to Laigo

Realty Corporation as required under the said

Contract to Sell;

3. The GSIS subsequently acquired Palos Verdes Estate

Subdivision, including the residential lot covered by

the said Contract to Sell;

4. The GSIS agreed to the continuance of the occupancy

and use of the property by the petitioner provided

that the latter continue paying the monthly

installments prescribed under the Contract to Sell;

and

5. The GSIS would continue the development of the

subdivision, determine the final fair and reasonable

purchase price of the property covered by the

Contract to Sell and execute a new Contract to Sell in

favor of the petitioner.

It is very clear that there is no provision in the aforequoted joint

Agreement indicating that petitioner applied for and was granted a

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ASCaguioa vs. GSIS GSIS Board Case No. 00 7-09

housing loan by the GSIS in the amount of PhP35,500.00 on October

30, 1975.

It is also incorrect for the GSIS to say that the Contract to Sell

established the fact that petitioner had applied for a housing loan in

order to finance the acquisition of the subject house and lot from

Laigo Realty Corporation. There is no documentary evidence to

support this contention since the GSIS was not even a party to the

said Contract to Sell. There is also no statement in the Contract to

Sell that petitioner obtained a housing loan from GSIS.

It was also not possible that petitioner could be granted a

housing loan in 197 5 because he entered the government service only .

in 1992. Housing loans are granted by the GSIS only to its members

who are in the government service.

We also noticed that the computer print out of the alleged

housing loan account of petitioner is inconsistent with the Contract to

Sell between the petitioner and Laigo Realty Corporation. In the

computer print out, it is stated that the loan of PhP37,500.00 was

granted to petitioner on October 30, 1975 and the amount of monthly

amortization was PhP538.12 to start on November 30, 1975. In the

Contract to Sell, on the other hand, the _loan of PhP24,000.00 was

granted in june 1970 and the monthly amortization was for PhP231.98

to start on july 29, 1970.

As earlier mentioned, the GSIS bound itself under paragraph 2

(c) of the Joint Agreement to execute a Contract to Sell in favor of the

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of 10 ASCaguioa vs. GSIS

GSJS Board Case No. 007-09

petitioner. The GSIS apparently never executed the Contract to Sell

because there is no such document in the possession of the GSIS.

Nevertheless, one thing is certain. Petitioner did not pay in full the

value of the subject house and lot to the GSIS. This, notwithstanding,

no housing loan was granted to the petitioner because GSIS failed to

adduce evidence that, indeed, it granted a housing loan to the

petitioner.

The GSIS, however, as subsequent owner of the property, may

demand full payment for the property from the petitioner, and, in case

of failure to pay, cancel the Joint Agreement between the petitioner

and the GSIS, and take possession of the property.

WHEREFORE, premises considered, the Petition is hereby

GRANTED. The GSIS is hereby ordered to:

1. Cancel from the records of the GSIS the housing loan account of petitioner;

2. Issue clearances to and process the claim of petitioner; and

3. Demand payment for the subject property from petitioner and, in case of failure of the latter to pay, cancel the joint Agreement between the petitioner and GSIS, and take possession of the property.

SO ORDERED.

Pasay City, Philippines, __ 1 _2 _M_A_Y_2_0_11 _ _

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EL L. LACSON, Jr. Chairman

~\:_~~~\~ KARINA CONSTANTINO-DA~~

Trustee

RoMANWij~1_) s. REYES Trustee

GERALDINE MARIE BERBERABE-MARTINEZ Trustee

FRANCISCO T. DUQUE III Trustee

Copy fuiDished:

AMADO S. CAGUIOA 173-B Scout Limbaga Street, Diliman, Quezon City

Page9of10 ASCaguioa vs. GSIS


~~z MARI~ls·tee

(ABSENT) GREGORIO T. YU

Trustee

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CERTIFICATION

t WILFREDO P. ONG, a Legal Officer IV at the GSIS Law Office,

having been assigned as Hearing Officer to draft a decision in GSIS

Board of Trustees Case No. 007-09 entitled "Amado S. Caguioa vs.

Government Service Insurance System (GSIS)" hereby certify that the

statement of facts herein stated and being presented before this

Board is accurate and true, based on the records of the case, the

pleadings and other documents submitted by the parties.

This certification is issued this in

compliance with Board Resolution No. 19'8-A adopted on September

15, 2004.

Pasay City, Philippines, _____ __ _

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PASEGURUHAN NG MGA NAGLILINGKOD SA PAMAHALAAN (GOVERNMENT SERVICE INSURANCE SYSTEM) Financial Center, Pasay City, Metro Manila 1308

OFFICE OF THE CORPORATE SECRETARY

EXACT COPY OF RES. NO. 122 ADOPTED BY THE GSIS BOARD OF TRUSTEES IN ITS MEETING NO. 9 HELD ON MAY 12, 2011

Decision in GSIS Case No. 007-09, Amado S. Caguioa vs. GSIS, re Cancellation of Real Estate Loan from GSIS Records

RESOLUTION NO. 122

RESOLVED, to APPROVE and CONFIRM the Decision in GSIS Board Case No. 007-09 entitled Amado S. Caguioa v. GSIS (For Cancellation of Real Estate Loan from GSIS Records), the dispositive portion of which reads as follows:

"WHEREFORE, premises considered, the Petition is hereby GRANTED. The GSIS is hereby ordered to:

1. Cancel from the records of the GSIS the housing loan of petitioner;

2. Issue clearances to and process the claim of petitioner; and

3. Demand payment for the subject property from petitioner and, in case of failure of the latter to pay, cancel the Joint Agreement between the petitioner and GSIS, and take possession of the property."

A copy of the Decision in GSIS Board Case No. 007-09 is attached and made an integral part of this Resolution.

CERTIFIED CORRECT:

A ESA ABESAMIS-RAAGAS Corporate Secretruy

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