Sunday, July 19, 2015

Counter-bond to dissolve injunction: sample motion to post counter-bond and to dissolve injunction.



                                                                  “x x x.

VERIFIED AD CAUTELAM SUPPLEMENTAL MOTION 
(In Relation to the Defendants Pending “URGENT MOTION TO RECALL AND REVOKE THE ORDER, DATED xxx; AND TO DISSOLVE THE PRELIMINARY INJUNCTION THEREUNDER”, dated xxx)


          THE DEFENDANTS, by counsel, respectfully state:
                                                                                                   
1.      On xxx, 2015, the Defendant, by counsel, filed with the Court via registered mail an “URGENT MOTION TO RECALL AND REVOKE THE ORDER, DATED xxx; AND TO DISSOLVE THE PRELIMINARY INJUNCTION THEREUNDER”, dated xxx, which the undersigned counsel for the Defendants has set for motion hearing on xxx at xxx AM, a previously scheduled hearing set by the Court on another matter/incident.

2.    In Par. 6.2 to 6.2.1 of the said pending Motion, the Defendants stated, to wit:

“x x x.

6.2.        Sec. 6, Rule 58 (Grounds for objection to, or for motion of dissolution of, injunction or restraining order) provides, inter alia, that “(t)he injunction or restraining order may also be denied, or, if granted, may be dissolved, on other grounds upon affidavits of the party or person enjoined, which may be opposed by the applicant also by affidavits. It may further be denied, or, if granted, may be dissolved, if it appears after hearing that although the applicant is entitled to the injunction or restraining order, the issuance or continuance thereof, as the case may be, would cause irreparable damage to the party or person enjoined while the applicant can be fully compensated for such damages as he may suffer, and the former files a bond in an amount fixed by the court conditioned that he will pay all damages which the applicant may suffer by the denial or the dissolution of the injunction or restraining order.  If it appears that the extent of the preliminary injunction or restraining order granted is too great, it may be modified”.

6.2.1.           In due time, if the Order, dated xxx, is not recalled and revoked, as prayed for hereinbelow, the Defendants shall (and hereby reserve the right to) file the necessary pleading to invoke their rights under the abovecited provision to DISSOLVE the Preliminary Injunction, for the protection of the peace, unity, orderliness, and general well-being and welfare of the homeowners of xxx, whom they are duty-bound to serve as the duly elected incumbent directors and officers of xxx.


3.    The said pending Motion prayed for the following reliefs, to wit:

“WHEREFORE, in the interest of justice, it is respectfully prayed that, for the legal and factual reasons stated hereinabove:

1.      The ORDER, dated xxx, be RECALLED and REVOKED; and

2.    The grant of a Preliminary Injunction stated thereunder in favor of the Plaintiff be DISSOLVED.

FURTHER, the Defendants respectfully pray for such and other reliefs as may be deemed just and equitable in the premises.
X x x.”


3.1.          The foregoing prayer of the aforecited pending Motion is interlinked and related to the subject matter and prayer of this Ad Cautelam Supplemental Motion.

3.2.        The bases for the filing by Defendants of their earlier pending “URGENT MOTION TO RECALL AND REVOKE THE ORDER, DATED APRIL 13, 2015; AND TO DISSOLVE THE PRELIMINARY INJUNCTION THEREUNDER”, dated xxx, were:

3.2.1.              The failure of Plaintiff to post an injunction bond whether a cash bond or a surety bond;

3.2.2.            The lack of proof that Plaintiff has posted an injunction bond, if any has been indeed posted by Plaintiff, whether a cash bond or a surety bond;

3.2.3.            The lack of proof that Plaintiff  has served on Defendants and/or their former Counsel copies of the Plaintiff’s the proof of posting of an injunction bond, if any;

3.2.4.            The lack of proof of the accreditation by the Supreme Court and the Office of the Insurance Commission (OIC) of the Surety/Insurer of the Plaintiff which issued the surety injunction bond, if any;

3.2.5.             The lack of proof that the Court has issued a formal Writ of Preliminary Injunction, if any, to enforce its Order, dated xxx, on the matter, as required by Rule 58 of the Rules of Court;

3.2.6.            The lack of proof of service of copies of the Writ of Preliminary Injunction, if any has been issued, on the individual Defendants and/or their former Counsel;

3.3.        The Defendants argued in their aforecited pending Motion that the Order, dated xxx, was UNENFORCEABE and INEFFECTIVE for the legal reasons cited therein.

4.    As earlier stated, Sec. 6, Rule 58 of the Rules of Court (“Grounds for objection to, or for motion of dissolution of, injunction or restraining order”) provides, inter alia, that if a preliminary injunction has been issued by the trial court, “the same may be dissolved on other grounds upon affidavits of the party or person enjoined”, which may be opposed by the applicant also by affidavits.

4.1.          More specifically, the said provision provides that if a preliminary injunction “has been granted, the same may be dissolved if it appears that, although the applicant is entitled to the preliminary injunction”:

4.1.1.               The issuance or continuance thereof “would cause irreparable damage to the party or person enjoined while the applicant can be fully compensated for such damages as he may suffer”;  and

4.1.2.              The former (i.e., party enjoined) “files a bond in an amount fixed by the court conditioned that he will pay all damages which the applicant may suffer by the dissolution of the preliminary injunction”. 

4.1.2.1.       The bond referred to above is also called a COUNTER-BOND.


4.2.        Further, the aforequoted provision states that “if it appears that the extent of the preliminary injunction or restraining order granted is too great, it may be modified”. 

5.     In Pars. 5 to 5.3. of the Defendants aforecited pending “URGENT MOTION TO RECALL AND REVOKE THE ORDER, DATED xxx; AND TO DISSOLVE THE PRELIMINARY INJUNCTION THEREUNDER”, dated xxx, they argued that the preliminary injunction secured by the Plaintiff in the Order, dated xxx, was maliciously intended by the Plaintiff:
5.1.          To unjustly paralyze and injure the administration, leadership and operations of the defendants, as the incumbent members and officers of the Board of Directors of the xxx Subdivision Homeowners Association, Inc. in actual control of the xxx Water Co., Inc. - affiliated water system, water facilities, and water connections serving the homeowners of the said village;

5.2.         To unjustly mislead the homeowners of the village that the Plaintiff is in good standing as a Cooperative and has been contracted by the xxx to operate the xxx water system, facilities, and connections.

5.2.1.     Note: The 2005 xxx board resolution granting to the Plaintiff the power to operate the water system, facilities, and connections of the village had been REVOKED in 2014.

5.3.         To unjustly cause huge demoralization, confusion, vexation, alarms and disunity among the homeowners of xxx and within the leadership of the Association.

6.    The Defendants are the duly elected incumbent 2014-2015 directors and officers of xxx, which owns and controls the water system, facilities and connections of the xxx Subdivision.


6.1.          There is no proof that the Housing and Land Use Regulatory Board (HLURB)

[a] has nullified the election of Defendants as directors and officers of xxx since their active service in xxx as elective leaders in 2013, or

[b] that the latest xxx election (held in December 2014), under which they had assumed incumbency at present, has been invalidated, nullified or revoked by the HLURB.

6.1.1.               Please note that  only the HLURB, not the Courts,  has the sole, exclusive, and original jurisdiction on matters that relate to:

[a] Homeowners;

[b] Homeowners Associations (HOAs);

[c] the internal operations, management, and operations of Homeowners Associations; and

[d] the elections of directors and officers of Homeowners Associations

pursuant to the Magna Carta for Homeowners and Homeowners Associations (R.A 9904).


7.     The Defendants perform the duties and responsibilities as elected directors and officers of xxx.

7.1.          Xxx OFFICE. - The Defendants are in control, possession and administration of the xxx Office.

7.2.         Xxx WORKERS AND SECURITY GUARDS. - The Defendants control and supervise the xxx workers and security guards.

7.3.         Xxx WATER CO., I NC. - The Defendants are the ones in direct contact with and being directly consulted by the xxx WATER CO., INC. xxx  on matters that relate to the water service of xxx to the homeowners.

7.3.1.              The xxx recognizes the Defendants as the incumbent directors and officers of xxx for purposes of the distribution of the xxx bills to the homeowners.

7.3.2.             The xxx recognizes the Defendants as the incumbent directors and officers of xxx for purposes of the collection of the payments of the homeowners that are due and payable to xxx.

7.3.3.             For all water service-related maintenance, repairs and other remedial actions that the xxx homeowners require from time to time, they personally consult/confer with and seek the direct assistance and action of the Defendants as their duly elected incumbent directors and officers.

7.4.         LOCAL GOVERNMENT UNIT. - The Local Government Units (LGU) of xxx (City and Barangay levels) consult and confer with and refer to the Defendants from time to time whenever there are matters that require urgent and important coordination and/or action by and between xxx and the LGU on matters that relate to xxx, the Homeowners, and the Homeowners Associations within the Municipality, in general.

8.    The continuance of the preliminary injunction commanded in the Order, dated xxx:

[a] “would cause irreparable damage to” xxx and the herein Defendants, as its duly elected incumbent directors and officers,

[b] is violative of RA 9904, supra, which grants sole, exclusive, and original jurisdiction only to the HLURB (not the Courts) on matters and controversies involving Homeowners Associations, and

[c] would expose the Court to a potential Rule 65 action (certiorari, prohibition and mandamus).



8.1.          The preliminary injunction would in effect grant to the Court the power and jurisdiction to overrule the internal 2014 board resolution of xxx and the supporting mass petition of its members-homeowners that REVOKE the 2004 board resolution of the old 2004 board that empowered the Plaintiff to operate the water system inside the xxx Subdivision.

8.2.        The Court has no jurisdiction and power to intervene in the internal operations, elections, and water systems and other facilities  of xxx as a Homeowners Association, such jurisdiction having been granted by R.A. 9904, supra, to the HLURB.

8.3.        To do so would constitute abuse of discretion amounting to lack or excess of jurisdiction on the part of the Court (Rule 65).

9.    Upon the other hand, the Plaintiff, as the injunction applicant, “can be fully compensated for such damages as he may suffer” (Sec. 6, Rule 58).

9.1.          The Plaintiff can be duly protected by the COUNTER-BOND that the Defendants shall post with leave of Court, if and when this Motion and the earlier motion entitled “URGENT MOTION TO RECALL AND REVOKE THE ORDER, DATED APRIL 13, 2015; AND TO DISSOLVE THE PRELIMINARY INJUNCTION THEREUNDER”, dated xxx)” are granted by the Court.

10.         The Defendants reserve the right to present (and they hereby manifest that they intend to and they shall present) testimonial and documentary evidence to prove all the allegations stated in this Motion.

11.  This pleading is duly VERIFIED, the same to constitute as the AFFIDAVIT OF MERIT of the Defendants for purposes of this Motion, as required by Rule 58.

12.The Defendants are prepared to post a BOND (i.e., counter-injunction bond) as required by Sec. 6, Rule 58 and at such amount and under such terms and conditions as the Court may fix and impose.

13. This Supplemental Motion is AD CAUTELAM in nature because the Defendants cannot presume how the Court would rule on their earlier pending motion entitled “URGENT MOTION TO RECALL AND REVOKE THE ORDER, DATED xxx; AND TO DISSOLVE THE PRELIMINARY INJUNCTION THEREUNDER”, dated xxx.


          WHEREFORE, in the interest of justice, it is respectfully prayed that, after notice and hearing:


1.      This “VERIFIED AD CAUTELAM SUPPLEMENTAL MOTION (In Relation to the Defendants Pending “URGENT MOTION TO RECALL AND REVOKE THE ORDER, DATED xxx; AND TO DISSOLVE THE PRELIMINARY INJUNCTION THEREUNDER”, dated xxx)” be noted and considered, by way of ad cautelam remedy, to form part of the proceedings and the resolution of the pending motion filed by the Defendants, entitled “URGENT MOTION TO RECALL AND REVOKE THE ORDER, DATED xxx; AND TO DISSOLVE THE PRELIMINARY INJUNCTION THEREUNDER”, dated xxx, which has been set for motion hearing on xxx at xxx AM.

2.    In the event that the Defendants’ pending “URGENT MOTION TO RECALL AND REVOKE THE ORDER, DATED xxx; AND TO DISSOLVE THE PRELIMINARY INJUNCTION THEREUNDER”, dated xxx”, is denied by the Court on the ground that [a] the Plaintiff has indeed posted an injunction bond and [b] that a formal Writ of Preliminary Injunction, if any, has indeed by issued by the Court to enforce its Order, dated xxx, by way of ad cautelam remedy, an Order be issued allowing the Defendants to post a COUNTER-BOND to recall the Order, dated xxx, and to lift the Writ of Preliminary Injunction issued thereunder, if any. (Sec. 6, Rule 58).

FURTHER, the Defendants respectfully pray for such and other reliefs as may be deemed just and equitable in the premises.
         
Xxx City, xxx, 2015.


LASERNA CUEVA-MERCADER
LAW OFFICES
Counsel for Defendants
Unit 15, Star Arcade, C. V. Starr Ave.
Philamlife Village, Las Pinas City 1740
Tel. Nos. 8725443 & 8462539
X x x.


MANUEL LASERNA JR.
X x x.


X x x.”