Judicial Affidavit Of Mrs. Villafanne G. Balladares.docx

Republic of the Philippines Supreme Court MUNICIPAL TRIAL COURT IN CITIES Branch 01 Pagadian City SPOUSES FRANCISCO E. CABRERA, JR. and PERLA A. CABRERA, Plaintiffs`

CIVIL CASE No. 2622

- Versus -

- For -

MRS. VILLAFANNE G. BALLADARES and CHILDREN, namely, RONNIE GABUAN BALLADARES and ROY GABUAN BALLADARES, Defendants. x-------------------------/

UNLAWFUL DETAINER AND DAMAGES

JUDICIAL AFFIDAVIT [MRS. VILLAFANNE G. BALLADARES ] I. PRELIMINARY INFORMATION.

A. NAME AND OTHER PERSONAL CIRCUMSTANCES OF THE WITNESS

Name

:

VILLAFANNE G. BALLADARES

Age

:

79 YEARS OLD

Address

:

Purok Sampaloc A, Balangasan District, Pagadian City

Occupation :

Senior Citizen

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Language

:

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English and Cebuano.

B. LAWYER WHO CONDUCTED OR SUPERVISED THE EXAMINATION OF THE WITNESS. Name

:

Atty. LUCIO ORIO TAN, JR.

Address

:

Phase I, Purok Mahigugmaon,Vettalea High Land Homes Subdivision, Barangay Bulatok, Pagadian City, 7016

Place of Examination: Phase I, Purok Mahigugmaon,Vettalea High Land Homes Subdivision, Barangay Bulatok, Pagadian City, 7016 II. OFFER. The testimony of the witness VILLAFANNE G. BALLADARES, who is one of the defendants in this case, is being offered to prove the: 1. The identity of the real property subject matter of this case under a lease contract; 2. The identity of the terms and conditions offered to the lessee BABIER O. BALLADARES with the said lessee to enjoy the right of first priority; 3. The identities of the legal heirs claiming the subject property; 4. The antecedent facts showing BABIER O. BALLADARES as the lessee and upon his death transfers his rights and obligations in the lease contract as lessee to to his surviving wife and children who are now the lessees, in the same manner that with the death of the original owner, Roberto F. Cabrera, whatever rights and obligations he had over the property, including his obligation under the lease contract, were also transmitted to his heirs by way of succession. 5. The unlawful detainer case filed against defendants herein is baseless, both in law and in fact. 6. Other relevant matters germane to the purpose for which the testimony of this witness is being offered.

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III. JUDICIAL AFFIDAVIT PROPER.

I, VILLAFANNE G. BALLADARES, of legal age, Filipino citizen, widow and a resident of Purok Sampaloc A, Balangasan District, Pagadian City, Philippines, under oath, depose:

1.Q - Please state your name, age, residence, and circumstances.

other personal

A – I am VILLAFANNE G. BALLADARES, 79 years old, Filipino citizen, widow and a resident of Purok Sampaloc A, Balangasan District, Pagadian City. 2.Q- Why are you here now?

A – To give a sworn statement by way of a judicial affidavit, the same to constitute as my direct testimony, in the above-captioned civil case.

3.Q- For the record, please state the name and address of the Lawyer who is now conducting or supervising your examination and the place where the examination is being held now?

A – The legal counsel for the defendants, Atty. LUCIO ORIO TAN, JR., is conducting or supervising my examination now at his residence located at: Phase I, Purok Mahigugmaon,Vettalea High Land Homes Subdivision, Barangay Bulatok, Pagadian City, 7016 4.Q – In what language do you want your examination to be conducted? A – This judicial affidavit is prepared in English. I request, however, that the same be interpreted in Cebuano for my better understanding. I also prefer that my cross examination be conducted in Cebuano for my convenience and for clarity.

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5.Q – Do you undertake to answer the questions to be asked of you, fully conscious that you will do so under oath, and that you may face criminal liability for false testimony or perjury?

A – Yes.

6.Q - Let us now proceed to the above-entitled case. Do you know the plaintiffs or the complainants in this case, namely:

a. FRANCISCO E. CABRERA, JR. and b. PERLA A. CABRERA?

A – Yes. They are husband and wife and our neighbors at Purok Sampaloc A, Balangasan District, Pagadian City where we have been residing since 1978 Up to the present.

7.Q – Who are the defendants in this case, if you know?

A – I am and my two sons, namely, RONNIE GABUAN BALLADARES and ROY GABUAN BALLADARES.

8.Q - Why are you testifying in this case?

A – I am testifying in this case as a witness, in my capacity as one of the defendants, showing our meritorious defenses as obtainable in our Answer filed to the Complaint of plaintiffs herein.

9.Q - By the way Mrs. Witness, you stated earlier that you are a widow, will you please tell us the name of your husband?

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A – Babier O. Balladares

10.Q -Are you familiar with the real property subject matter of this case?

A – Yes. This is a residential lot, situated in Purok Sampaloc A, Balangasan District, Pagadian City, which was originally owned by the late Roberto F. Cabrera.

11.Q - Why do you say that that this residential lot or real property subject matter of this case, was originally owned by the late Roberto F. Cabrera.

A – Because he was the claimant in a cadastral case, involving Lot No. 2311-PLS-119, which was subsequently adjudicated to him on October 24, 1969, as evidenced by a Certification attached as Annex “1” to our Answer to plaintiffs’ Complaint.

12.Q - What else, if any, can you say regarding this Lot No. 2311-PLS-119 owned by the late Roberto F. Cabrera?

A – This Lot No. 2311-PLS-119, containing an area of 365 Square Meters, more or less, was divided into two (2) lots, viz., Lot 2311-A-1 and Lot 2311-A-2, as evidenced by a piece of document attached and marked as Annex “2” to our Answer to plaintiffs’ Complaint.

13Q - What else, if any?

A – This Lot 2311-A-1 was sold by Roberto F. Cabrera to another person while Lot 2311-A-2 remained in his possession and ownership, as may be shown by the aforementioned Annex “2” and Annex “3” in our Answer to plaintiffs’ Complaint.

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14Q – Now, in what manner then did Roberto F. Cabrera lease a residential lot to your husband?

A – On November 22, 1978, ROBERTO F. CABRERA and my husband BABIER O. BALLADARES executed a contract denominated as “LOT RENTAL OF A PORTION OF RESIDENTIAL LOT”, renting and occupying only an approximate area of 80 Square Meters, more or less, of a portion of this Lot 2311-A-2, for a duration or term of two years renewable for another term upon the expiration of the said contract, as evidenced by a written lease agreement attached to, and marked as Annex “4”, in our Answer to plaintiffs’ Complaint.

15.Q - Did your husband Babier O. Balladares build a house or construct a structure on the premises covered by the said lease contract?

A – Yes, as part of their written agreement. Under the said contract of lease (Annex “4” in our Answer to plaintiffs’ Complaint), it was expressly stipulated that my husband shall construct our residential building on the leased premises. Also in the same disposition as embodied in the Letter dated March 4, 1983 (Annex “4-A” in our Answer to plaintiffs’ Complaint), which was made an integral part of said LOT RENTAL OF A PORTION OF RESIDENTIAL LOT (Annex “4”), it was duly noted therein that if my husband is willing to buy at reasonable price the portion subject of rental agreement xxxx, “the lot Owner is also willing for whatever legal intents or purposes that may serve in their favor without prejudice to both parties.”

16.Q - When did your husband start constructing your residential building on the lot subject matter of the case, which was covered by that written lease agreement?

A – It was on November 25, 1978 that my husband began the construction of our residential building on the leased lot or real property subject matter of the case.

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17.Q - Were there requirements complied by your husband relative to the construction and completion of the said residential building? A – Yes, pursuant to the following documents: i). Proposed Residential Building of Babier O. Balladares - as Annex “5” in our Answer to plaintiffs’ Complaint; ii). Assessment of Building with recommendation for approval – as Annex “5-A” in our Answer to plaintiffs’ Complaint; iii). Building Permit No. 321 under Official Receipt (O.R.) No. 7867816 Xas Annex “6” and Annex “6-A in our Answer to plaintiffs’ Complaint; iv). Certificate of Completion, showing that the residential building was finally and actually completed on December 20, 1978 – as Annex “7” in our Answer to plaintiffs’ Complaint; v). Certificate of Occupancy and Certificate of Final Inspection dated June 30, 1980 under Official Receipt (O.R.) No. 7867815 X - as Annexes “8” and “8-A in our Answer to plaintiffs’ Complaint; vi). Completion of Construction under Official Receipt (O.R.) No. 7273120 X - as Annexes “9” and “9-A in our Answer to plaintiffs’ Complaint; vii). Fire Safety Inspection Certificate dated July 2, 1980 - as Annex “10” in our Answer to plaintiffs’ Complaint; viii). Certificate of Zoning Compliance under Official Receipt (O.R.) Nos. 3419086 V and 7273121 X - as Annexes “11”, “11-A and “11-B” in our Answer to plaintiffs’ Complaint; and ix). Application of Babier O. Balladares with the Pagadian City Water District for water service connection to his said residential building, dated December 4, 1978, under Official Receipt (O.R.) No. 1087-1088 therein indicated - as Annexes “12” and “12-A” in our Answer to plaintiffs’ Complaint.

18.Q - What did your husband do then with respect to this residential building that he erected on the leased lot?

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A – My husband BABIER O. BALLADARES and I, together with our children RONNIE GABUAN BALLADARES and ROY GABUAN BALLADARES had continuously been living in this Residential Building as our family home where our son ROY GABUAN BALLADARES was born on August 1, 1980. He grew up in this house, and even as he later on got married, he continues to live until at present in the same residential building with his wife Lelibeth Pantorilla-Balladares, together with my husband, our son, Ronie and I. My husband continued to live in the same house until he died on March 10, 2018. At present, however, my son RONNIE GABUAN BALLADARES is no longer living in the said residential building as he has already his own separate house where he lives with his wife now, his house being just adjacent to our residential building and located in the same leased premises which the plaintiffs claimed as a road right of way that caused them prejudice and damage allegedly in their complaint. The truth of the matter is that, it is just a proposed road right of way and no declaration to that effect has, as yet, been made by our local government in Pagadian City through the City Engineering Office or any governmental entity for that matter. 19.Q - Upon the death of your husband Babier O. Balladares, do you and your son Roy Gabuan Balladares, to include his wife Lelibeth Pantorilla-Balladares, continue to live in that residential building standing on the leased lot?

A – Yes, we continue to live there as lessees in the land that was leased to my late husband, because we know for a fact that upon the death of my husband, whatever rights and obligation he has over the subject lot as lessee, are automatically transmitted to us by right of succession.

20.Q.- By the way, where is this Roberto F. Cabrera now?

A – He died a long time ago ahead of my husband.

21.Q - So, what did the heirs of Roberto F. Cabrera do with respect to your husband’s possession of the subject land as a lessee?

A – They recognized my husband, still, as a lessee. In fact, a co-heir Luisa B.

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Cabrera continued to receive personally payments of monthly rental over the leased premises (subject matter of the case) from my husband. 22.Q - What did the heirs of Roberto F. Cabrera do with the real property subject matter of this case? A – They caused the transfer of the entire Lot 2311-A-2 to them and thus obtained title thereto under Transfer Certificate of Title (TCT) No. T-10,096 of the Registry of Deeds for the City of Pagadian, duly registered in their names, containing an area of NINETY EIGHT (98) SQUARE METERS. Said Transfer Certificate of Title (TCT) No. T-10,096 is attached to, and marked as Annex “13” for the first page and Annex “13-A” for the second page, in our Answer to the plaintiffs’ Complaint. 23.Q - Will you please recount what happened next? A – During this time or on or about the year 1990 or thereabouts, while the lease agreement aforementioned continue to subsist, exist, survive and keep going by the continuous payments of monthly rental by my husband BABIER O. BALLADARES, receipt of which were always expressly acknowledged by the coheir LUISA B. CABRERA, over the leased premises (subject matter of the case), another co-heir FRANCISCO B. CABRERA, together with his wife Juanita P. Edullantes went to our residential house, purposely to transact regarding the sale of Lot 2311-A-2 to my husband BABIER O. BALLADARES. While it may be a recognition on the part of co-heir FRANCISCO B. CABRERA of the right of my husband, as lessee to exercise his pre-emptive right to purchase the subject property, as embodied in the aforementioned Letter dated March 4, 1983 (Annex “4-A” hereof), nevertheless, as my husband was then very much willing to buy the property, he required the said spouses to produce the title to the property and that they should also mutually agree on the price of the property subject matter of the case. At that juncture, the said spouses promised to produce the title to the property offered for sale and to return and confirm anew with my husband regarding the price mutually agreeable to both of them. Unfortunately, however, since then and even up to the death of my husband, the said spouses never showed up. This particular transaction can be testified to and confirmed by Jose O. Balladares (younger brother of my late husband BABIER O. BALLADARES) who, being then present, was able to witness and observe the conversation between said spouses and my husband Babier O. Balladares. With his Sworn Judicial Affidavit to be marked, among others, at the appropriate time in connection to

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this case, Jose O. Balladares will be presented as one of the witnesses for all the defendants in this case.

24.Q – What else then happened, if you know? A – LUISA B. CABRERA (a co-heir) continuously and regularly received personally from my husband BABIER O. BALLADARES payments of monthly rental over the leased premises (subject matter of the case) under the said lease agreement (Annex “4” hereof) and the said Letter dated March 4, 1983 (Annex “4-A” hereof), since the year 2001 up to 2009, as evidenced by entries in the notepads showing her receipt of the corresponding rental amounts for each month with her signature as appearing thereon, attached to and marked as Annexes “14”, “14-A”, “14-B”, “14-C”, “14-D”, “14-E”, “14-F”, “14-G” to “14-I” in our Answer to the plaintiffs’ Complaint. 25.Q - Notwithstanding her receipt of the monthly payment of rentals on your leased premises, do you remember if there was any unfavourable action that LUISA B. CABRERA did under the circumstance? A – Yes. on February 1, 2006, being only recently discovered by us, a dubious document purportedly denominated as “JOINT SPECIAL POWER OF ATTORNEY AUTHORIZING TO SALE” was executed by the alleged co-heirs in favor of LUISA B. CABRERA who, in her capacity as Attorney-In-Fact, was authorized and empowered to negotiate, canvass for any prospective purchaser or buyer, for the sale of Lot No. 2311-A-2, Psd-09-016930, under the said title, TCT No. T-10,096 (Annexes “13” and “13-A” in our Answer to plaintiffs’ Complaint).

26.Q - Why do you say that this “JOINT SPECIAL POWER OF ATTORNEY AUTHORIZING TO SALE” is a dubious document?

A – It is dubious and of doubtful veracity because of the striking dissimilarity, obvious to the eyes, of the signature of the co-heir FRANCISCO B. CABRERA (father of herein plaintiff Francisco E. Cabrera, Jr) as appearing thereon compared to his signature as appearing on the said Letter dated March 4, 1983 (Annex “4-A” in our Answer to plaintiffs’ Complaint), in his capacity as witness

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therein. A machine copy of the “JOINT SPECIAL POWER OF ATTORNEY AUTHORIZING TO SALE” is attached to and marked as Annexes “15” and “15-A in our Answer to plaintiffs’ Complaint.

27.Q - What more else, if any, can you say regarding this matter?

A – The alleged signature of FRANCISCO B. CABRERA (father of herein plaintiff Francisco E. Cabrera, Jr.), as appearing on that document (Annexes “15” and “15-A in our Answer to plaintiffs’ Complaint) was a forgery. In fact, we believe that some of the principal grantors therein were already dead at the time of the alleged execution of the same document, because in one instance we noticed that there was another glaring, flagrant, shocking, malicious and deliberate act in connection to this transaction, in that, CELSO B. CABRERA, also a co-heir, participated in the execution thereof. This CELSO B. CABRERA already died a long time ago, that was on July 17, 1986. A machine copy of the death certificate of the deceased CELSO B. CABRERA is attached to and marked as Annex “15-B” in our Answer to plaintiffs’ Complaint. How then, on February 1, 2006, the already deceased CELSO B. CABRERA could have signed the aforementioned “Joint Special Power of Attorney Authorizing to Sale”? (Annexes “15” and “15-A” in our Answer to plaintiffs’ Complaint). Therefore, the alleged signature of Celso B. Cabrera as appearing thereon is also a forgery.

28.Q – What then is your observation, perception and discernment on the alleged execution of “Joint Special Power of Attorney Authorizing to Sale” in favor of LUISA B. CABRERA?

A – The said “Joint Special Power of Attorney Authorizing to Sale” executed in favor of LUISA B. CABRERA is rendered NULL and VOID ab initio and INEFFECTIVE for lack of consent. For this purpose, we shall cause the further investigation of this matter by proper government investigative agencies and question document experts, and we shall also undertake to inquire further into the records of the local civil registry concerned as to the exact date of death of the other co-heirs prior to the execution of the questioned document, and if the

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evidence so warrants, we shall institute criminal action to bring to the bar of justice against those responsible therefor.

29.Q - What happened next?

A – Clothed with the said dubious and counterfeit joint special power of attorney authorizing to sale (sic.) (Annexes “15” and “15-A”), and in wanton disregard of our right as lessees to exercise our pre-emptive right over the real property subject matter of the case, on February 15, 2006, while she used to personally receive our monthly rental payments, LUISA B. CABRERA sold Lot No. 2311-A-2, Psd-09-016930, under the said title, TCT No. T-10,096 (Annexes “13” & “13-A”), to include the leased premises subject matter of the case, to plaintiff PERLA A. CABRERA for the sum of ONE HUNDRED SEVENTY ONE THOUSAND PESOS (P171,000.00), Philippine currency, to our great damage and prejudice, considering that we never waived our right to exercise our pre-emptive right, even as the subject lot was eventually sold to the spouses-plaintiffs herein. A machine copy of the Deed of Absolute Sale, executed by LUISA B. CABRERA and PERLA A. CABRERA, in their capacity as Attorney-In-Fact and Vendee, respectively, is attached to, and marked as Annexes “16” and “16-A” in our Answer to plaintiffs’ Complaint.

30.Q - What else happened, if you know?

A – We also discovered just recently that the spouses Francisco E. Cabrera, Jr. and Perla A. Cabrera caused the cancellation of TCT No. T-10,096 (Annexes “13” & ”13-A”) with the Register of Deeds for Pagadian City, which consequently on February 17, 2006, issued Transfer Certificate of Title (TCT) No. T-30,588, Lot 2311-A-2, Psd-09-106930 (Annex “A” and “A-1 of the plaintiffs’ complaint) and registered in the name of PERLA A. CABRERA, covering the subject property, containing an area of NINETY EIGHT (98) SQUARE METERS. This is the basis of the plaintiffs’ demand letter (Annex “C” in the plaintiffs’ Complaint) asking us to vacate, claiming that our possession over the subject lot is unlawful.

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31.Q - So, you would claim now that your possession over the land subject matter of this case is lawful in your capacity as lessees? A – Precisely, because Transfer Certificate of Title (TCT) No. T-30,588 issued in the name of Perla A. Cabrera was secured in violation of the law and through fraud, deception and misrepresentation, having been done with such indecent haste without our knowledge, as we only discovered the same recently. The subject residential lot was purchased by the plaintiffs herein by virtue of the aforementioned joint special power of attorney authorizing to sale (Annexes “15” and “15-A”), which is rendered NULL and VOID ab initio and INEFFECTIVE for lack of consent due to forgery in the signature of FRANCISCO B. CABRERA, and that a co-heir, CELSO B. CABRERA, had already died long time ago, that was on July 17, 1986, as appearing on the death certificate of the deceased CELSO B. CABRERA [Annex “15-B” in our Answer to plaintiffs’ Complaint], prior to the execution of the said “joint special power of attorney authorizing to sale” in favor of LUISA B. CABRERA on February 1, 2006. 32.Q - Now, are you not aware of the fact that plaintiffs’ title to the subject lot was issued under the Torrens system and that Torrens title is indefeasible, not being subject to collateral attack? A – We are aware of that but by way of exception, the Supreme Court has ruled that indefeasibility of title does not attach to titles secured by fraud and misrepresentation; thus, plaintiffs’ title to the subject lot may be subject to collateral attack for purposes of our defense/s in the instant action.

33.Q - After the spouses-plaintiffs FRANCISCO E. CABRERA, JR. and PERLA A. CABRERA acquired the subject property by purchase from LUISA B. CABRERA, and have the subject property titled in the name of PERLA A. CABRERA, were there circumstances showing that the said spouses, plaintiffs herein confronted your husband? A – Yes. But before I proceed, Atty. Tan, may I please recount these circumstances in sequential order?

34.Q - You may do so.

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A – Sometime in the month of June, 2008, while my sister-in-law, Nena O. Balladares-Claveria, younger sister of my husband Babier O. Balladares, was inside our house at Purok Sampaloc A, Balangasan District, Pagadian City, Luisa B. Cabrera, Angelina de Leon-Cabrera (wife of Felix B. Cabrera, now deceased) and Luzminda Azucena-Cabrera (wife of Celso B. Cabrera, now deceased) altogether arrived at our house to see my husband Babier O. Balladares, purposely to transact and negotiate the sale of the subject property to him. At that juncture, my sister-in-law, Nena O. Balladares-Claveria heard my husband Babier O. Balladares said by asking his visitors to produce and show to him the title of the subject property, so he could buy the land covered in said title at an agreed price. Since no title was ever shown by them to my husband Babier O. Baladeras, Nena O. Balladares-Claveria saw the said visitors left the house and did not return anymore. Subsequently, however, sometime in the morning of January, 2018, while she was inside her house at Purok Kawayan, Balangasan District, Pagadian City, my sister-in-law, Nena O. Balladares-Claveria received a call through the mobile phone from my husband Babier O. Baladeras wherein the latter requested her to go to our house at Purok Sampaloc A, Balangasan District, Pagadian City, in order for her to witness a transaction because at that time the spouses Francisco E. Cabrera, Jr. and Perla A. Cabrera, plaintiffs herein, went to our house, offering the sale of the subject property to my husband. Nena O. Balladares-Claveria, however, arrived at our house only in the afternoon of even date but upon her arrival thereat, the spouses Francisco E. Cabrera, Jr. and Perla A. Cabrera were no longer at our house. Instead, she was only told by my husband Babier O. Balladares that the transaction did not materialize because the said spouses offered to him the sale of the subject property for 1.4 million pesos. With respect to this particular fact, my sister-in-law, Nena O. Balladares is willing to testify and to substantiate the same in court, together with her Sworn Judicial Affidavit, to be marked, among others, as exhibit at the appropriate time in connection to the instant case.

35.Q - By the way, Mrs. Witness, where were you at that time in these two separate occasions wherein the aforementioned persons went to see your husband at your house?

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A – I was around then at our house but I did not just mind them, because I was then busy cleaning our house, its surroundings and I also attended to some chores at home. Although, afterward being myself his wife, my husband narrated to me what actually transpired regarding their offer to sell the subject property to my husband.

36.Q - Aside from their offer to sell the subject property to your husband, what could be the reasons that impelled the aforementioned persons to do so.

A – Maybe they respect the terms of the lease contract, in our capacity as lessees of the lot subject matter of this case, and a recognition on their part of our right to exercise the pre-emptive right over the same real property, except the spouses Francisco E. Cabrera, Jr. and Perla A. Cabrera who were moved by an ulterior motive to sell the subject property to my husband Babier O. Balladares at gargantuan amount of 1.4 million pesos.

37.Q – And because your husband did not agree to buy the subject lot from the said spouses at such very huge amount, you were then asked to vacate the premises by a demand letter? A – Certainly, yes. Having miserably failed in their manoeuvre, plan and trick or deception employed against my husband, and at the time that my husband Babier O. Balladares has already died (my husband died on March 10, 2018), on July 17, 2018 the herein plaintiff-spouses, in a given owner context, would want now to effect our immediate eviction from the subject premises, per that demand letter (Annex “C” of the Complaint).

38.Q - And did you do as told in that demand letter?

A – No, we did not obey because that demand letter of the plaintiffs herein was baseless and overbearing, tyrannical and oppressive, it being an afterthought of their whims and caprices for the reason that we were unduly deprived of our pre-emptive rights to purchase the subject property at a reasonable price.

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39.Q - And so what did the herein spouses-plaintiffs do to you?

A – At their instance, we were summoned by the Punong Barangay of Barangay Balangasan, Pagadian City, wherein the parties had their first confrontation thereat on June 14, 2018, on a Thursday, at 2:00 P.M., per Summons dated June 13, 2018, issued by Punong Barangay Arienel J. Lim, a machine copy of which is attached to and marked as Annex “17” in our Answer to plaintiffs’ Complaint. But the following actually transpired: i). In that first confrontation, however, no settlement was reached, despite our insistence to exercise our pre-emptive right to purchase the subject property at a reasonable price, and that we could not yet decide on plaintiffs’ demand to vacate the subject premises; ii). Thus, a second confrontation was scheduled, per summons issued on June 14, 2018 where we were required to appear, as well as herein plaintiffspouses. On this second confrontation supposedly, however, we learned that the said spouses were no longer in Pagadian City, as they already left for Doha, State of Qater. So, we did not bother ourselves to proceed to the office of the punong barangay aforementioned. iii). So, another summons was issued on June 25, 2018, requiring the parties herein to appear before the Lupon for the last time on June 26, 2018. A machine copy of a summons dated June 25, 2018, is attached to, and marked as Annex ”18”, in our Answer to plaintiffs’ Complaint. iv). Thus, in compliance therewith and in obedience to the said summons, my son Roy Gabuan Balladares, together with his wife Lelibeth PantorillaBalladares appeared before the said Lupon. Only Juanita Cabrera (mother of herein plaintiff Francisco E. Cabrera, Jr.), together with a certain Cresencia Tejano, Jr. appeared therein without the appearance of the plaintiff-spouses who, as earlier mentioned, were already gone abroad to Doha, State of Qatar, in spite of the fact that this is their own personal case. v). Be that as it may, though Juanita Cabrera was willing to accept and quite acquiescent to, our stance on the proposition to the exercise of our pre-emptive rights to purchase the subject property at an affordable and reasonable price prevailing in the current market value, Juanita Cabrera forthwith, through a

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mobile phone, called her son Francisco E. Cabrera, Jr. whom her said mother auspiciously endorsed our proposal. Unfortunately, however, Francisco E. Cabrera, Jr. strongly scolded his said mother by telling her not to abide by our wish and, thereupon Francisco E. Cabrera, Jr. requested to have a talk through the mobile phone with the Lupon official, because Francisco E. Cabrera, Jr. wanted that a certificate to file action in court be issued at once. In the course of their casual talk through the mobile phone, exchange of words ensued between them because it would seem to appear that the Lupon official concerned expressed annoyance by reason of the arrogance of Francisco E. Cabrera, Jr. To shed light on this matter, in the higher interest of justice, it is best to request the appearance of the Lupon official concerned when this case shall be called for hearing on its merits.

40.Q - What then can you say regarding the issuance of the Certification to File Action dated July 17, 2018 (Annex “E” of the plaintiffs’ complaint)?

A – It was an error. Our Katarungan Pambarangay Law and existing jurisprudence is clear to the effect that the complaint may be dismissed when complainant, after due notices, refuses or willfully fails to appear without justifiable reason on the date set for mediation, conciliation or arbitration. Such dismissal ordered by the Punong Barangay/pangkat chairman after giving the complainant an opportunity to explain his non-appearance shall be certified to by the lupon or pangkat secretary as the case may be, and shall bar the complainant from seeking judicial recourse for the same cause of action as that dismissed. (see also Sec. 515, LGC)

41.Q -What reliefs do you seek from the Court?

A – We seek the following reliefs: a. The parties to the instant case be given ample time to reach an amicable settlement before this Honorable Court, pursuant to Judicial Dispute Resolution (JDR) in the absence of the application of the CourtAnnexed Mediation (CAM);

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b. That in case of a failure thereof, and after trial, the complaint be dismissed for lack of merit; c. The defendants’ compulsory counterclaim be granted, i.e.. Attorney’s fees of P60,000.00 plus moral damages of P200,000.00, plus costs of suit; and d. To direct herein plaintiff-spouses FRANCISCO E. CABRERA, JR. and PERLA A. CABRERA to respect the terms of the lease contract on the subject real property and/or allow the defendants herein to exercise their right of pre-emption to buy the leased lot or real property subject matter of the case at a reasonable price and within a reasonable time, as this Honorable Court may fix in accordance with the majesty of the law.

42. Q - What documents do you wish to submit to the Court? A – I hereby introduce, for marking purposes, the following exhibits which were already attached to the defendants’ Answer to plaintiffs’ Complaint as Annexes “1” to “18” thereof. I ask that they be marked as Exhibits “1” to “18” to correspond to their specific Annex Markings in our Answer to the plaintiffs’ Complaint. To wit:

Annex “1” in the Answer, the same to be marked as Exhibit “1” hereof – Certification issued by Atty. Beverly O. Travero, Clerk of Court V, Office of the Clerk of Court, Regional Trial Court, Ninth Judicial Region, Multi-Sala Station, Pagadian City, showing that the late Roberto F. Cabrera, grandfather of herein plaintiff FRANCISCO E. CABRERA, JR., during his lifetime, filed a cadastral answer over Lot No. 2311-PLS-119, which was subsequently adjudicated to him on October 24, 1969;

Annex “2” in the Answer, the same to be marked as Exhibit “2” hereof – A piece of document evidencing that Roberto F. Cabrera caused the survey of Lot No. 2311-A, Pls-119, containing an area of 365 Square Meters, more or less,

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which was adjudicated to him. The same was divided into two (2) lots, viz., Lot 2311-A-1 and Lot 2311-A-2. However, this Lot 2311-A-1 was sold by Roberto F. Cabrera to a certain Ernesto R. Nuevarez while Lot 2311-A-2 remained with his possession and ownership;

Annex “3” in the Answer, the same to be marked as Exhibit “3” hereof Absolute Deed of Sale (Portion), showing payments made by the buyer Ernesto R. Nuevarez to the co-vendor Roberto F. Cabrera.

Annex “4” in the Answer, the same to be marked as Exhibit “4” hereof LOT RENTAL OF A PORTION OF RESIDENTIAL LOT, showing that on November 22, 1978, ROBERTO F. CABRERA and BABIER O. BALLADARES executed a lease contract renting and occupying only an approximate area of 80 Square Meters, more or less, of a portion of this Lot 2311-A-2, for a duration or term of two years renewable for another term upon the expiration of the said contract. Under this same contract, it was expressly stipulated that the LESSEE shall construct his residential building on the leased premises. (marking supplied for emphasis)

Annex “4-A” in the Answer, the same to be marked as Exhibit “4-A” hereof Letter dated March 4, 1983, which was made an integral part of said LOT RENTAL OF A PORTION OF RESIDENTIAL LOT, wherein in the said letter, it was duly noted that “if the Lessee BABIER P. (sic.) BALLADARES is willing to buy at reasonable price the portion subject of rental agreement xxxx, the lot Owner is also willing for whatever legal intents or purposes that may serve in their favor without prejudice to both parties.” (marking supplied for emphasis)

Annex “5” in the Answer, the same to be marked as Exhibit “5” hereof Proposed Residential Building of Babier O. Balladares;

Annex “5-A” in the Answer, the same to be marked as Exhibit “5-A” hereof - Assessment of Building with recommendation for approval;

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Annex “6” and Annex “6-A in the Answer, the same to be marked as Exhibit “6” and Exhibit 6-A” hereof - Building Permit No. 321 under Official Receipt (O.R.) No. 7867816 X;

Annex “7” in the Answer, the same to be marked as Exhibit “7” hereof Certificate of Completion, showing that the residential building was finally and actually completed on December 20, 1978;

Annexes “8” and “8-A” in the Answer, the same to be marked as Exhibits“8” and “8-A” hereof - Certificate of Occupancy and Certificate of Final Inspection dated June 30, 1980 under Official Receipt (O.R.) No. 7867815 X;

Annexes “9” and “9-A in the Answer, the same to be marked as Exhibits “9” and “9-A” hereof - Completion of Construction under Official Receipt (O.R.) No. 7273120 X;

Annex “10” in the Answer, the same to be marked as Exhibit “10” hereof Fire Safety Inspection Certificate dated July 2, 1980;

Annexes “11”, “11-A and “11-B” in the Answer, the same to be marked as Exhibits “11”, “11-A and “11-B” hereof - Certificate of Zoning Compliance under Official Receipt (O.R.) Nos. 3419086 V and 7273121 X;

Annexes “12” and “12-A” in the Answer, the same to be marked as Exhibits “12” and “12-A” hereof - Application of Babier O. Balladares with the Pagadian City Water District for water service connection to his said residential building, dated December 4, 1978, under Official Receipt (O.R.) No. 1087-1088 therein indicated;

Annex “13” and Annex “13-A” in the Answer, the same to be marked as Exhibit “13” and Exhibit “13-A” hereof - Transfer Certificate of Title (TCT) No. T-

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10,096 of the Registry of Deeds for the City of Pagadian, duly registered in the name of the heirs of the late Roberto F. Cabrera, and containing an area of NINETY EIGHT (98) SQUARE METERS;

Annexes “14”, “14-A”, “14-B”, “14-C”, “14-D”, “14-E”, “14-F”, “14-G” to “14-I” in the Answer, the same to be marked as Exhibits “14”, “14-A”, “14-B”, “14C”, “14-D”, “14-E”, “14-F”, “14-G” to “14-I” hereof - Entries in the notepads showing that co-heir Luisa B. Cabrera personally received from the lessee Babier O. Balladares the corresponding rental amounts for each month with her signature as appearing thereon from 2001 up to 2009;

Annex “15” and Annex “15-A” in the Answer, the same to be marked as Exhibit “15” and Exhibit “15-A” hereof - “JOINT SPECIAL POWER OF ATTORNEY AUTHORIZING TO SALE” executed on February 1, 2006 by the alleged heirs of Roberto F. Cabrera in favor of Luisa B. Cabrera;

Annex 15-B in the Answer, the same to be marked as Exhibit “15-B” hereof Death Certificate of the deceased CELSO B. CABRERA, a co-heir, showing that it was quite impossible for him beyond human imagination to have participated in, and put his signature above his name on, the “JOINT SPECIAL POWER OF ATTORNEY AUTHORIZING TO SALE” executed on February 1, 2006 by the alleged heirs of Roberto F. Cabrera in favor of Luisa B. Cabrera when, as a matter of fact, this CELSO B. CABRERA had long been dead, sometime in July 17, 1986, as appearing on the said death certificate;

Annexes “16” and “16-A” in the Answer, the same to be marked as Exhibits “16” and “16-A” hereof - Deed of Absolute Sale, executed by LUISA B. CABRERA and PERLA A. CABRERA, in their capacity as Attorney-In-Fact and Vendee, respectively;

Annex “17” in the Answer, the same to be marked as Exhibit “17” hereof –

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Summons dated June 13, 2018, issued by Punong Barangay Arienel J. Lim of Barangay Balangasan, Pagadian City; and Annex “18” in the Answer, the same to be marked as Exhibit “18” hereof – Summons dated June 25, 2018, issued by Punong Barangay Arienel J. Lim of Barangay Balangasan, Pagadian City.

43.Q – What else, if any? A – Yes. I ask that this Judicial Affidavit of mine, consisting of twenty seven (27) pages be marked as Exhibit “19”, and its sub-Exhibits “19-A” to “19-Z”. I hereby adopt into my judicial affidavit, by incorporation and reference, all the allegations and arguments contained in our Answer to plaintiffs’ Complaint and all the supporting documents annexed thereto, the same to form part and parcel hereof. I also ask that the Joint-Judicial Affidavit of RONNIE GABUAN BALLADARES and ROY GABUAN BALLADARES, consisting of nine (9) pages be marked as Exhibit “20” and its sub-Exhibits “20-A” to “20-H”. I hereby adopt into this joint-judicial affidavit, by incorporation and reference, all the allegations and arguments contained in our Answer to plaintiffs’ Complaint and all the supporting documents annexed thereto, the same to form part and parcel hereof. I also ask that the Judicial Affidavit of JOSE O. BALLADARES, consisting of eight (8) pages be marked as Exhibit “21” and its sub-Exhibits “21-A” to “21-G”.

I hereby adopt into this judicial affidavit, by incorporation and reference, all the allegations and arguments contained in our Answer to plaintiffs’

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Complaint and all the supporting documents annexed thereto, the same to form part and parcel hereof.

I also ask that the Judicial Affidavit of NENA O. BALLADARES-CLAVERIA, consisting of 8 pages be marked as Exhibit “22” and its sub-Exhibits “22-A” to “22G”. I hereby adopt into this judicial affidavit, by incorporation and reference, all the allegations and arguments contained in our Answer to plaintiffs’ Complaint and all the supporting documents annexed thereto, the same to form part and parcel hereof.

44.Q - Anything else?

A – Yes. I hereby introduce the following additional exhibits which I ask to be marked, to wit:

As Exhibit “23” for the first page and its sub-Exhibit “23-A” for the back page (attached as Annexes “A” and “A-1 to plaintiffs’ complaint) as our common exhibits hereof – Transfer Certificate of Title No. T-30,588 (Lot 2311-A-2, Psd-09106930) issued in the name of Perla A. Cabrera - to prove that this title is derived from a void Deed of Absolute Sale [Exhibits “16” and “16-A” hereof] executed by LUISA B. CABRERA and PERLA A. CABRERA, in their capacity as Attorney-In-Fact and Vendee, respectively; this deed of absolute sale is void because, except as to her undivided share of aliquot part, LUISA B. CABRERA as agent/attorney-in-fact, actually, did not have the written authority of the co-owners to sell the subject lot to vendee PERLA A. CABRERA due to forgery and lack of consent, first, on the part of FRANCISCO B. CABRERA because of the striking dissimilarity, obvious to the eyes, of the signature of this co-heir FRANCISCO B. CABRERA (father of herein plaintiff Francisco E. Cabrera, Jr) as appearing on the “Joint Special Power of Attorney Authorizing to Sale (sic.) [Exhibits “15” and “15-A” hereof] compared to his genuine signature as appearing on the said Letter dated March 4, 1983 (Exhibit

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“4-A” hereof), in his capacity as witness therein. And second, it was quite impossible beyond human imagination for the deceased CELSO B. CABRERA, also a co-heir, to have participated in, and put his signature above his name on, the said “JOINT SPECIAL POWER OF ATTORNEY AUTHORIZING TO SALE (sic.)” [Exhibits “15” and “15-A” hereof], executed on February 1, 2006 by the alleged heirs of Roberto F. Cabrera in favor of Luisa B. Cabrera when, as a matter of fact, this CELSO B. CABRERA had long been dead, sometime in July 17, 1986, as appearing on the said Death Certificate of the deceased CELSO B. CABRERA [Exhibit “15-B” hereof]. It can then safely be concluded that his signature is also a forgery which rendered the said Joint Special Power of Attorney Authorizing to Sale (sic.) void ab initio and of no legal effect, as if it does not exist. Thus, Transfer Certificate of Title No. T-30,588 (Lot 2311-A-2, Psd-09-106930) issued in the name of Perla A. Cabrera [Exhibits “23” and “23-A”] was secured through fraud and misrepresentation which may be subject to collateral attack, as an exception to the rule on indefeasibility of Torrens title, for purposes of our defense that unlawful detainer does not lie against us. In this connection, I hereby reserve the right to present additional evidence of forgery and falsification of public documents, as to the forged signatures therein of two more co-heirs, namely, Felix B. Cabrera and Carmen B. Cabrera who also died earlier than on February 1, 2006, pending submission of their respective death certificates from the local civil registry office concerned, and by way of re-iteration, should the evidence so warrants under the circumstances, we shall not hesitate to institute criminal actions for forgery and falsification of public documents against those who may appear to be responsible therefor.

45.Q - Anything else?

A – Yes. I hereby introduce the following additional exhibits, also as our common evidence, to wit:

As Exhibit “24” (attached as Annex “B” to plaintiffs’ Complaint) – Tax Declaration of Real Property No. 2K9-003366, dated September 3, 2010, declared for taxation purposes in the name of Perla A. Cabrera, covering the subject lot with market value at P113,680.00 and assessed value at P11,370.00, showing

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that the affectivity of assessment was made on the quarter of July, 2009 – This will prove deception on the part of the plaintiffs herein in connivance with Luisa B. Cabrera who nevertheless personally received rental payments from the lessee Babier O. Balladares from 2001 to the whole year of 2009 (Exhibit “14” and its sub Exhibits “14-A” to “14-I”), in order to give semblance of recognition on the right of defendants herein as lessees, and on their impression of the latter’s right to preemption to buy the subject lot, considering that on June, 2008, Luisa B. Cabrera, together with her sisters-in-law, as already alluded to in the foregoing, offered to sell the subject lot to Babier O. Balladares whom Luisa B. Cabrera promised to show to him the corresponding title to the subject lot with mutual agreement on the purchase price of the said lot. But it did not push through because Luisa B. Cabrera did not show up to him anymore. However, subsequently on January, 2018, the plaintiff-spouses Francisco E. Cabrera, Jr. and Perla A. Cabrera appeared to Babier O. Balladares to whom the subject lot was offered for sale by them at a very huge price of 1.4 million pesos. It should be noted that for obvious reasons, Luisa B. Cabrera did not collect rental payments from Babier O. Balladares beginning 2010 to present but defendants herein just waited that rentals be collected by her, considering that defendants herein never knew of the transaction that took place between Luisa B. Cabrera and the said spouses until lately when the same was discovered by defendants herein, and considering further that the defendants herein never received any demand to vacate by the Caberas until only lately in July 26, 2018 when they received a demand letter after the plaintiff-spouses herein miserably failed in their malicious bid to sell to Babier O. Balladares the subject property for a gargantuan price at 1.4 million pesos.

As Exhibit “25” (attached as Annex “C” to plaintiff’s Complaint) – A baseless Demand Letter dated July 17, 2018 which was made and sent by the plaintiffspouses herein to the defendants herein in an overbearing, arrogant and oppressive manner, they having without authority or right to do so because they secured title to the subject lot through fraud and misrepresentation, having been derived from void documents, as alluded to in the foregoing.

46.Q - Anything else? A – Yes.

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I hereby manifest that during the main trial of the merits of this case, we, the defedants, intend to file a motion for questioned document and handwriting examination by the National Bureau of Investigation (NBI) of all questioned documents and signatures involved in this case, as discussed above. I further manifest that, during the trial on the merits of this case, we intend to present additional corroborating witnesses to prove our claims and prayers in the Answer to plaintiffs’ Complaint. Nothing Follows. Pagadian City, Philippines, January 16, 2019.

VILLAFANNE G. BALLADARES Affiant/Co-Defendant Community Tax Certificate (CTC) No. 28833633 Issued on January 14, 2019, at Pagadian City SUBSCRIBED and SWORN to before me this____ day of January, 2019, at Pagadian City, Philippines, affiant exhibited to me her Community Tax Certificate (CTC) No. 28833633, issued on January 14, 2019, at Pagadian City, being competent proof of identity, as above-indicated. Doc. No. ___; Page No. ___; Book No. ___; Series of 2019.

IV. EXHIBITS ATTACHED TO THE JUDICIAL AFFIDAVIT.

·

Exh. “1” to Exh. “25”, supra.

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V. SWORN ATTESTATION OF THE LAWYER WHO CONDUCTED OR SUPERVISED THE EXAMINATION OF THE WITNESS.

The undersigned ATTY. LUCIO ORIO TAN, JR., of legal age, married, and with postal office address at Phase I, Purok Mahigugmaon, Vettalea High Land Homes Subdivision, Barangay Bulatok, Pagadian City, 7016, under oath, deposes and states: 1. He is the Legal Counsel for the plaintiffs in the above-entitled case; 2. He faithfully recorded or caused to be recorded the questions he asked and the corresponding answers that the above-named witness gave; 3. Neither he nor any other person then present or assisting him coached the witness regarding the latter's answers; and 4. He conducted the examination of the witness at his postal address located at Phase I, Purok Mahigugmaon, Vettalea High Land Homes Subdivision, Barangay Bulatok, Pagadian City, 7016. Pagadian City, Philippines, January 16, 2019.

ATTY. LUCIO ORIO TAN, JR. Affiant IBP Lifetime Member ID NO. 01571 SUBSCRIBED AND SWORN to before me, this ____ day of January, 2019, at the City of Pagadian, Philippines, the affiant personally appeared before me, he being personally known to me to be the same person who conducted or supervised in the execution of the above judicial affidavit and exhibited to me competent proof of his identity as above indicated; and avows under penalty of law to the whole truth of the contents of the attestation. Doc. No. ___; Page No. ___; Book No. ___; Series of 2019.

Cc

:

Atty. MARIA THERESA LLAGAS-OH Counsel for Plaintiffs 2nd Floor, Pastoriza Bldg. Datoc Street, Gatas District Pagadian City By Personal Service Received Copy this ____________2019. By the counsel herself or through ________________________________