Title
Supreme Court
Loyola Grand Villas Homeowners Association, Inc. vs. Court of Appeals
Case
G.R. No. 117188
Decision Date
Aug 7, 1997
LGVHAI, sole homeowners' association for Loyola Grand Villas, retained its status despite failing to file by-laws on time; competing associations' registrations revoked by HIGC, upheld by courts.

Case Digest (G.R. No. 150886)
Expanded Legal Reasoning Model

Facts:

  • Formation and initial registration of LGVHAI
    • Loyola Grand Villas Homeowners Association, Inc. (LGVHAI) was organized on February 8, 1983 by Solid Homes, Inc., with Victorio V. Soliven as first president.
    • LGVHAI was registered with the Home Financing Corporation (predecessor of HIGC) as sole homeowners’ association under Certificate of Registration No. 04-197 but did not file its by-laws within one month as required by Section 46 of the Corporation Code.
  • Emergence and registration of North and South Associations
    • Loyola Grand Villas Homeowners (North) Association, Inc. registered on February 13, 1989 (Certificate No. 04-1160), covering Phases West II, East III, West III, and East IV; by-laws filed December 20, 1988.
    • Loyola Grand Villas Homeowners (South) Association, Inc. registered on July 27, 1989, covering Phases West I, East I, and East II; by-laws filed July 26, 1989.
  • HIGC administrative proceedings
    • In mid-1989, Atty. Joaquin A. Bautista (HIGC legal head) informed Soliven that LGVHAI had been “automatically dissolved” for non-filing of by-laws and non-use of corporate charter.
    • LGVHAI filed a complaint with HIGC, alleging revocation of its registration without due notice and challenging the issuance of certificates to North and South Associations.
  • Decisions below
    • On January 26, 1993, HIGC Hearing Officer Javier ruled LGVHAI remained the duly registered association and revoked North and South registrations.
    • On September 8, 1993, the HIGC Appeals Board dismissed the South Association’s appeal.
    • On August 23, 1994, the Court of Appeals affirmed, holding that failure to file by-laws does not cause automatic dissolution and recognizing LGVHAI as the sole association; it also upheld HIGC’s power to resolve competing associations by referendum.

Issues:

  • Whether under Section 46 of the Corporation Code the failure to file by-laws within one month from official notice of incorporation amounts to automatic dissolution of the corporation.
  • Whether the HIGC may authorize or recognize two homeowners’ associations within a single, contiguous subdivision.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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