Globe Asiatique suit vs Pag-IBIG to proceed
MANILA - -The embattled Globe Asiatique Realty Holdings can finally proceed with its damage suit against the Home Development Mutual Fund (Pag-IBIG Fund).
The 11th division of five of the appellate court agreed with Branch 58 of the Makati Regional Trial Court that Pag-IBIG could not just escape liability in its contract with Globe Asiatique by simply alleging that buyer-borrowers were fictitious.
The Makati court earlier said Pag-IBIG breached its memorandum of agreement and funding commitment agreements with the property development firm when it refused to accept replacement buyers.
The appellate court noted it was the government agency that approved all fund membership and loan application of the buyer-borrowers.
In the decision penned by Associate Justice Stephen Cruz, the appellate court also denied Pag-IBIG’s claims that the trial court judge committed grave abuse of discretion in declaring that the private firm is entitled to damages.
“While a reasonable assumption may be made that public respondent should have brushed aside technicalities so as not to frustrate HDMF’s right to appeal, the eventual refusal of public respondent to accede to HDMF’s plea and, in the alternative, his disposition to require strict compliance with the rules is not necessarily grave abuse of discretion,” the appellate court said.
The CA also noted Pag-IBIG failed to follow rules in filing its petition. The CA said said the decision of the trial court should have been appealed and not brought immediately to it.