Bel Air Village Association v. Dionisio

JR., J.:

This case was certified to us by the Court of Appeals pursuant to Section 31 of the Judiciary Act on the ground that only questions of law are involved. The antecedent facts are summarized in the decision of the then Court of First Instance of Rizal. Seventh Judicial District, Branch 20, Pasig, Rizal in Civil Case No. 16980 to wit: On January 22, 1972, plaintiff filed a complaint against the defendant in the municipal court of Makati, Rizal, for the collection of the amount of P 2,100 plus penalty of 12% per annum and P 751.30 as attorney's fees and expenses of litigation.

The sum of P 2,100 represents the association dues assessed on the lot owned by the defendant as member of the plaintiff association. On February 16, 1972, defendant filed an answer traversing all the material allegations of the complaint and set up the following special defenses; 1) That there is no privity of contract between the plaintiff and the defendant; 2) that the collection of alleged dues from its members is in reality an unlawful exercise of the power of taxation which is beyond the corporate power of the plaintiff, 3) that the amount sought to be collected is unreasonable and oppressive, 4) that the assessment of the dues upon the defendant in so far as he has not voluntarily affiliated with plaintiff is illegal, immoral, contrary to law and public policy, and 5) that the acts of plaintiff in compelling the defendant to be a member is unconstitutional and outside the scope of its corporate power.

Defendant therefore sets up the counterclaim of P 2,000 as attorney's fees and expenses of litigation. On May 19, 1972, the parties submitted the following stipulation of facts and prayed for judgment to be rendered therein in accordance with said stipulation of facts: STIPULATION OF FACTS COME NOW the undersigned attorneys for the plaintiff and the defendant in the above-entitled case, and to this Honorable Court respectfully submit the following stipulation of facts: 1. That plaintiff was incorporated as corporation way back in August 25, 1957 for the purposes stated in its Articles of Incorporation, copy of which as amended is attached hereto as Annex 'A'; 2.

That the By-laws of the association, copy of which as amended is attached hereto as Annex 'B', provides for automatic membership in the association for every owner and purchaser of lots located inside the Bel Air Village as defined and bounded in the Articles of Incorporation; 3. That without applying for membership in plaintiff association, defendant in this case, like the other members, automatically became a member because he is the registered owner of a lot located inside the Bel Air Village; 4. That in accordance with the By-Laws of the plaintiff, the association is run and managed by a Board of Governors who (sic) exercises, among other things, the power to assess and collect against every owner of the lot inside the Bel Air Village, certain amounts for the operation and activities of the association; 5.

That pursuant to the powers granted under the By-Laws, the Board of Governors have assessed the owners of the lots inside the Bel Air Village, a sum to be paid either quarterly, semi-annually or annually, computed on the basis of the area per square meter of the lot owned by every member as follows: a. During the period from 1962-1964, the basis of the assessment is P 0.30 for every square meter of lot owned by the members inside the Bel Air Village compound; b. From l965-1968, the assessment was increased to P 0.35 for every square meter; c.

From 1969-1971, the assessment was further increased to P 0.40 for every square meter; d. Starting 1972, the assessment was changed to P0.50 for every square meter of the lot owned by the members; 6.

That under the By-laws, the foregoing assessments if not paid when due, constitute a lien on the lots of the owners inside the Bel Air Village; 7. That defendant is the owner of a lot located inside the Bel Air Village with an area of 525 square meters under Transfer Certificate of Title No. 81136 of the Register of Deeds of Rizal; 8. That pursuant to the powers granted under the By-laws of the association, the Board of Governors has made the following assessment on defendant's property on the basis of the area per square meter of the lot owned by him as follows: 1962-525 sq.

meters x P 0.30- P 157.50 1963-525 sq. meters x P 0.30- P 157.50 1964-525 sq. meters x P 0.30- P 157.50 1965-525 sq.

meters x P 0.35- P 183.75 1966-525 sq. meters x P 0.35- P 183.75 1967-525 sq. meters x P 0.35- P 183.75 1968-525 sq.

meters x P 0.35- P 183.75 1969-525 sq. meters x P 0.40- P 210.00 1970-525 sq. meters x P 0.40- P 210.00 1971-525 sq.

meters x P 0.40- P 210.00 1972-525 sq. meters x P 0.50- P 262.50 TOTAL - - - - - - - - P 2,100.00