Developer to file raps against HLURB execs
Monday, September 6, 2011
ANGELES CITY — Officials of Lexus Landholdings Group are set to file administrative charges against Arbiter Dunstan San Vicente and Housing and Land Use Regulatory Board (HLURB)-Central Luzon Director Octavio Canta.
The charges, which will be filed before the Office of the Ombudsman for “gross ignorance of the law”, will also be the subject of separate civil actions to be filed by Lexus against HLURB.
The charges emanated when the housing board allegedly issued “a questionable decision that has adverse effects” on the stockholders and directors of Lexus, owner and developer of 12-storey Lexus Condo and Hotel in Santos Street, Barangay Balibago.
Documents obtained by Sun.Star Pampanga on Monday showed that Lexus was granted the Certificate of Registration and License to Sell the condominium project in September 2007.
The developer started building the units and conducted pre-selling activities. However, it failed to complete the project within the stipulated one year period but was granted extensions by the HLURB up to August 2010.
In March to August last year, five condominium buyers — all foreigners — filed their individual complaints against Lexus for “Specific Performance or Rescission of Contracts with Damages” before the HLURB regional office, the documents noted.
The same documents showed, however, that the complainants did not include any of the directors, officers, stockholders, other persons involved in the project, and the corporation as respondents in the civil case they filed.
“We were all shocked to learn that they found us guilty of administrative and criminal charges as well as civilly liable even if we’re not made parties in the civil action filed by the complainants,” said the Lexus investors and stockholders headed by Louis Yakich, of the Yakich and Cuizon Corporation, in a statement.
“This is an evident violation of due process since we were not made parties to the action; we were not summoned and were not given the opportunity to air our side on the charges against our company,” Lexus added.
Lexus legal counsel Gener Endona, for his part, said in a separate statement that “while the complaints are for Specific Performance with damages, hence a civil action, the HLURB incorporated administrative and criminal liabilities in the decision without proper charges, in violation of due process, and in violation of the rule on proper joinder of causes of action.”
Even the complaints filed against Lexus did not pray for any liability against the directors, officers, investors and persons managing Lexus, Endona said.
Endona also questioned some alleged anomalies in the decision much like he just entered his appearance as counsel for Lexus in the HLURB Specific Performance cases only on July 26 this year.
He said, however, that in the decision dated July 20, 2011, his name already appeared as the counsel for Lexus.
Clearly, the decision could not have been signed by lawyer San Vicente and Engr. Canta on July 20, 2011, he said.
In another statement, San Vicente’s staff disclosed that the “arbiter is not at a liberty to discuss merits of the case because the decision is not yet final – subject to appeal – and that it will be sub judice for him to discuss it at this point. The decision can still be reversed or modified upon appeal.”
Records also showed that the decision was released only last August 17. Three weeks prior to this, Canta has reportedly been on leave until now due to health reasons.
New stockholders, expanded project
The documents showed that during the pendency of the five cases, Yakich and Cuizon Corporation — the owner and operator of Lewis Grand Hotel in Don Juico Avenue in this city — and other stockholders acquired 95 percent of the shares of Lexus by virtue of Deeds of Assignment executed by the former stockholders of Lexus on March 21, 2011. These new stockholders are actually original investors of the project.
The documents further showed that when the project was abandoned by the former stockholders of Lexus, these investors continued to complete the project to protect their investments. From the original two floors constructed by the former stockholders, the present stockholders were able to complete eight floors in few months.
The new owners of Lexus then filed with the HLURB applications to change and alter the plans of the project from 12 floors to 14 floors. They also filed an application to change the name of the project to “The Penthouse Condo, Hotel and Residences” at the HLURB in July 2011, records showed.
However, the five complainants opposed Lexus move despite knowing that in their individual contracts to sell, they agreed to allow Lexus to apply for modifications, changes and alterations in the plans and even irrevocably appointed Lexus as the attorney-in-fact to make these changes.
No action
Endona said he has submitted all the documents and papers required by the HLURB and has written the board several letters informing them to immediately resolve the applications “considering that it would greatly benefit the buyers, including the complainants, if the project is completed under the new improved plans.”
“This would also bring economic progress and benefits in Angeles City and the projected 100 workers to be employed in the project,” he added.
But Endona quipped that despite his continuous follow-ups, the HLURB allegedly has not acted on the applications.
Source: http://www.sunstar.com.ph/pampanga/local-news/2011/09/05/developer-file-raps-against-hlurb-execs-177509
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