Twin Towers

Condominium
Corporation v Court of
Appeals

Magsino, Patricia Marie C.

Facts:
Twin Towers Condominium Corporation, a non-stock corporation
organized for the sole purpose of holding title to and managing the
common areas of Twin Towers Condominium; collects from all its
members quarterly assessments and dues authorized by its Master Deed
and its By-Laws

ALS Management & Development Corporation is a registered owner of

Unit 4-A where its president, Antonio Litonjua resides
ALS failed to pay the assessments and dues starting from 1986 up to the
first quarter of 1988

Twin Towers Condominium Corporation filed a complaint with the

Securities and Exchange Commission, and prayed that ALS and Litonjua
be ordered to pay the unpaid condominium assessments and dues

SEC Hearing officer ordered Twin Towers to pay Litonjua moral and
exemplary damages for including Litonjuas name in the list of
delinquent owners
SEC Hearing officer ordered ALS to pay the unpaid assessments and
dues
BOTH parties filed their respective appeals to the SEC en banc

SEC nullified the award of damages to Litonjua on the ground that SEC
had no jurisdiction over Litonjua
SEC then remanded the case to the Hearing Officer to determine the
value of services Twin Towers failed to render to ALS for their non-use of
the facilities and ruled that this value may be deducted from the amount
ALS will pay

Twin Towers appealed to the Court of Appeals

CA dismissed the petition, but sustained Twin Towers claim against ALS
for the payment of the assessments and dues
CA ordered for the value of services withheld by Twin Towers to be
deducted from the amount to be paid by ALS, essentially rendering the
Condominiums House Rule 26.3 as ultra vires

CA ruled that Twin Towers is not expressly authorized by its Master

Deed and By-Laws to prohibit delinquent members from using the
facilities of the Condominium

Hence, present petition

Issue:
Whether Twin Towers
assessments and dues

can

collect

Whether or not House Rule 26.3 is valid

Whether or not ALS can validly offset
against its unpaid assessments and dues
the services withheld by Twin Towers

Condominium Act provides

that the Master Deed may
authorize the condominium
corporation to collect
reasonable assessments to
meet authorized
expenditures
Twin Towers is expressly
authorized by its Master
Deed to impose reasonable
assessments on its members
to maintain common areas
and facilities of the
Condominium
ALS is legally bound to pay
Twin Towers assessment and
dues

Denial by Twin Towers to

ALS and Litonjua of the
use of Condominium
facilities deprived Twin
Towers of any right to
demand from ALS
payment of any
condominium assessments
and dues
Contracting party who is
guilty of first breaching his
obligation is excused from
such breach, if the other
party retaliates by refusing
to comply with his own
obligation

ALS
ALS Management
Management

Twin
Twin Towers
Towers

Arguments:

Held:
Whether Twin Towers can collect assessments and
dues
Yes. Twin Towers is expressly authorized to collect
assessments and dues. RA 4726, or the Condominium Act
provides that the Master Deed may authorize the
condominium corporation to collect assessments to meet
authorized expenditures.
Sec. 4 of Twin Towers Master Deed provides that the owner
of each unit shall be liable for the common expenses of the
condominium project, and it shall be paid to the
Condominium Corporation

Under the exclusive membership clause of the Master Deed, a

registered unit owner becomes a member of Twin Towers as
a member, ALS assumes the obligation to share in the
common expenses of the Condominium
Twin Towers Master Deed provides that a member of the
Condominium Corporation shall share in the common
expenses. This obligation does not depend on the use or nonuse by the member of the common areas and facilities of the
Condominium

Whether or not House Rule 26.3 is valid

Yes, House Ruled 26.3 is valid. House Rule 26.3 provides that
the names of unit owners who fail to pay two consecutive
quarters will be posted on the bulletin board, and they shall
not be allowed to use all of the facilities of the condominium.
The Condominium Act, Twin Towers Master Deed, and their
By-Laws expressly empowers Twin Towers to promulgate
House Rule 26.3
Section 9 of the Condominium Act provides that the owner of
the project shall register a declaration of restrictions relating to
such project
Such declaration of restrictions may include the power to
enforce the provisions of the declaration of restrictions (Sec. 9 (a)
(1))

Whether or not ALS can validly offset against its

unpaid assessments and dues the services withheld
by Twin Towers
No. ALS has no right to a reduction of its assessments and
dues to the extent of its non-use of the Condominium
facilities.
ALS cannot offset damages against the assessments and dues
because ALS is not entitled to damages for alleged injury
arising from its own violation of its contract.
To recognize the validity ALS claim would be to legalize its
breach of the contract

Decision:
Twin Towers is expressly authorized to collect
assessments and dues from ALS
House Rule 26.3 is valid
ALS cannot offset
ALS is ordered to pay all its
overdue assessments and dues
(which will be determined by
the RTC)
Petition
GRANT
ED
CA
decision
SET
ASIDE

Question:
Why is ALS obliged to share in the
common expenses of the
condominium

Answer:
As a unit owner, ALS became a member of Twin
Towers and is thus obligated to share in the common
expenses.
Sec. 8, (C) (I) of the Master Deed provides that each
member of the Condominium corporation SHALL
SHARE IN THE COMMON EXPENSES of the
condominium project