Title
Lim vs. Moldex Land, Inc.
Case
G.R. No. 206038
Decision Date
Jan 25, 2017
Condominium owner challenges validity of annual meeting, quorum, and election of non-unit owners as directors; Supreme Court nullifies meeting and elections.

Case Digest (G.R. No. 206038)

Facts:

Mary E. Lim, represented by her attorney-in-fact, Reynaldo V. Lim, v. Moldex Land, Inc., 1322 Roxas Boulevard Condominium Corporation, and Jeffrey Jaminola, Edgardo Macalintal, Joji Milanes, and Clothilda Anne Roman, G.R. No. 206038, January 25, 2017, the Supreme Court Second Division, Mendoza, J., writing for the Court.

Petitioner Mary E. Lim, a registered unit owner and member of 1322 Roxas Boulevard Condominium Corporation (Condocor), challenged the validity of the July 21, 2012 Annual General Membership Meeting (AGM) of Condocor, the election of certain members of its Board of Directors, and sought accounting. Lim alleged that the four individual respondents — Jeffrey Jaminola, Edgardo Macalintal, Joji Milanes, and Clothilda Anne Roman — were non-unit buyers who were improperly elected to the board at the challenged meeting. Lim also contested the role of Moldex Land, Inc. (Moldex), which held title to 220 unsold condominium units and whose representatives participated in the AGM.

At the July 21, 2012 meeting the corporate secretary certified a quorum based on the presence of a majority of voting rights, which included the votes appurtenant to Moldex’s unsold units (58,504 votes of a total 73,376 voting rights in good standing). Lim objected to the meeting’s validity; her objection was denied and she and most unit owners present walked out. The meeting proceeded and elected the individual respondents to the board and thereafter held an organizational meeting electing corporate officers.

Lim filed an election protest before the Regional Trial Court (RTC), Branch 24, Manila, acting as a special commercial court. The RTC, in a March 4, 2013 Decision, dismissed Lim’s complaint and held that there was a valid quorum because quorum was determined on the basis of voting rights of all units owned by members in good standing; it concluded Moldex was a member by virtue of its ownership of unsold units and that Moldex’s representatives were entitled to exercise membership rights including voting and being voted to office. Lim sought review in the Supreme Court by a petition for review on certiorari under Rule 45. The Court initially...(Subscriber-Only)

Issues:

  • Is the petition properly cognizable under Rule 45 (i.e., do the questions raised present pure questions of law)?
  • Did Lim remain a member of Condocor notwithstanding an alleged Deed of Assignment and a subsequent special power?
  • Was there a valid quorum at the July 21, 2012 annual membership meeting of Condocor?
  • Can Moldex be a member of Condocor by virtue of its ownership of unsold condominium units?
  • May Moldex’s authorized representatives (proxies), who are not themselves unit owners, be elected as members of Condocor’s Board of Directors a...(Subscriber-Only)

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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