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CLINICAL LEGAL EDUCATION – II
2nd Semester
(Class of Atty. Zigfred M. Diaz)
www.zdiaz.com

A.) REQUIREMENTS

Please observe the following:

1.) All assignments should be HANDWRITTEN. Make every effort to make your handwriting legible. I will give a very low score or no score at all to handwritings that I cannot decipher.

2.) Assignments should be written in Yellow paper

3.) Please observe proper margins and spacing when writing.

4.) All pages within the assignment should be numbered

5.) Submit all your assignment in a long white folder with your name written on the side.

6.) Make a table of contents & Indicate the page numbers for each folder. The table of contents should be broken down. See example below: (For complete requirments and suggested table of content see last page)

Example:

I – Case work 1

a.) Position paper for Juan Delacruz………………………….. Page 1
b.) Position paper for the Company ………………………….. Page 5

7.) All case assignments should have all necessary attachments and evidences included. Assume other collateral facts but do not introduce facts that are not indicated in the case.

8.) Case assignments should have support in both law and jurisprudence; a failing grade will be given to Position papers, pleadings and other documents that does not conform with this requirement or if it fails to comply with the Rules of Court.

9.) No motion for extension will be allowed. Deadline is on FEBRUARY 24, 2011, Thursday. A grade of INC will be given to those who submit beyond said date.

10.) The details of this assignments are uploaded as well to www.zdiaz.com click on “SWU students CLE II” at the right side bar. Please inform those who are absent about this matter.

B.) – FACTS

In January of 2001, ABC corporation, a corporation engaged in the sale of motorcycles decided to rent a lot in Toledo City for the purpose of putting up a motorcycle store.
The owner of the lot was a certain Lourdes Limbaga who was a member of the board of directors of ABC corporation.
The lot already had a small house that served as the house of the lot’s care taker, a certain Mr. Jerry Latorre. Mr. Latorre was the one who constructed the small house in the lot of Ms. Limbaga.
ABC corporation decided to take in Mr. Jerry Latorre as the manager of their motorcycle store.
The salary of Mr. Latorre was P 1,500.00 a month plus 30 % commission on any motorcycle he sold.
According to ABC corporation’s projection, Mr. Latorre will be making a total of P 10,000.00+ a month including commissions.
Because it seemed like a nice deal, Mr. Latorre agreed to the terms and condition.
ABC Corporation demolished a portion of the small house of Mr. Latorre and placed a small one storey building that served as the store.
However Mr. Latorre continued to live at the back of the building. (The portion of the house that was not demolished)

After three years of operations, the motorcycle store was not profiting as expected. Mr. Latorre also cannot account for sales of motorcycles amounting to P100,000.00. ABC Corporation sensed that there is something wrong with Mr. Latorre’s management.

However they could not let go of Mr. Latorre since they believed that he has a lot of connections in Toledo City that could help them in their business. ABC corporation believed that there is a market for motorcycles in Toledo City.

In February of 2004, of making him manager, they entered into a consignment agreement with Mr. Latorre instead The following are the terms and conditions of their agreement.
1.) “ABC corporation shall lease the property for Mr. Jerry Latorre;
2.) ABC corporation shall provide Mr. Lattorre with motorcycles to sell at P 50,000.00 each. Mr. Latorre is can sell the said motorcycle higher than that amount and keep the rest of the proceeds for himself, however he should remit the P 50,000.00 back to ABC corporation;
3.) All other operational expenses for the store including improvements on the building is for the account of Mr. Latorre;
4.) That no employer-employee relationship exists Mr. Latorre and ABC corporation.
5.) The unaccounted sales of Mr. Latorre amounting to P 100,000.00 shall be slowly paid by him at P 5,000.00 each month. “

Mr. Latorre found the agreement to be satisfactory so he signed the new agreement. After more than 3 years of operations, Mr. Latorre ended up not remitting a total of P400,000.00. Add to that, he has only paid P 50,000.00 for the unaccounted amount he incurred when he was still manager.

Frustrated by the way things are going, ABC corporation decided to take over the business. In April 1, 2007, while Mr. Latorre was away, ABC Corporation forced opened the building, and took away the remaining motorcycles that they believe were their remaining stocks.

However they did not know that they also took away 3 personal motorcycles of Mr. Latorre. When Mr. Latorre was informed about what happened, he was furious. He called up ABC Corporation to return his 3 motorcycles. However ABC Corporation refused to do saying that Mr. Latorre even owed them more than the value of the three motorcycles.

Advised by their lawyer not to take the law into their own hands, ABC corporation decided to do things legally. They sent a demand letter dated June 25, 2007 to Mr. Latorre asking him to vacate the building. However Mr. Latorre refused to vacate.

ABC corporation then filed a suit for ejectment against Mr. Latorre.

During the mediation proceedings, Mr. Latorre said he will not vacate the said building since he owns it as he has not been paid for the demolished portion of his property.

He also maintained that he is an employee of ABC corporation. (His alleged proof of this is that he still has an identification card with ABC corporation indicating that his title is “manager.” ABC corporation forgot to confiscate his Identification card when they entered into a consignment agreement with him )

Mr. Latorre said he will only vacate the premises if they will pay him for his demolished house and that the 3 motorcycles be returned to him.

ABC Corporation was furious at the demands of Mr. Latorre, considering that they were the ones who constructed the building and that Mr. Latorre owed them a lot of money.

No compromise agreement was reached so the ejectment case went to court. The judge then ordered the parties to submit their respective position papers.

In the meantime Mr. Latorre wanted to get back at ABC corporation, so he filed a labor case against ABC corporation for illegal dismissal and underpayment of salaries on November 2007. A member of the board of directors of ABC corporation, a certain Mr. Bobong Lapetaje was there to represent the company in the labor conciliation proceedings. As the mediation proceedings was going along, a heated exchanged of words occurred between Mr. Lapetaje and Mr. Latorre. As a result of the argument, Mr. Lapetaje ended up punching Mr. Latorre in the face. The labor arbiter decided to terminate the conciliation proceedings and since no agreement was reached in the conciliation proceedings he asked the parties to submit their respective position papers. Mr. Latorre filed criminal charges in the prosecutor’s office against Mr. Lapetaje for slight physical injuries.
Mr. Latorre also consulted a lawyer on how he could get back his 3 motorcycles.

Because Mr. Latorre file a labor case against them, ABC Corporation decided to file a Civil case for collection for sum of money amounting to P 450,000.00. (P 50,000.00 for the unaccounted balance while he was still manager and P400,000.00 during the consignment agreement)

ABC corporation also consulted a lawyer if they can file a criminal case against Mr. Latorre for his failure to account for the P 50,000.00 when he was still their manager.
• OTHER PERTINENT FACTS ARE AS FOLLOWS:
1.) ABC corporation’s main corporate office is in Cebu City.
2.) Ms. Lourdes Limbaga – age 55, married, Filipino Citizen and a resident of Basak, Cebu City, Philippines
3.) Mr. Jerry Latorre – age 45, married, Filipino Citizen and a resident of Colon, Toledo City, Philippines
4.) Mr. Bobong Lapetaje – age 40, single, Filipino Citizen and a resident of Funete Osmena Cebu City, Philippines

C.) ASSIGNMENT

1.) Make the Make the position paper of Mr. Latorre in the ejectment case.
2.) Make the position paper of ABC Corporation in the ejectment case.
3.) If you are the lawyer of ABC corporation what criminal case will you file against Mr. Latorre for his failure to account for the P50,000.00 when he was still manager. Make the necessary affidavit complaint that will be submitted to the prosecutor’s office.
4.) If you were the lawyer of Mr. Latorre what case should you file to help him get his 3 motorcycles ? Make the necessary pleading.