MVHAI EXECUTIVE SUMMARY DATED FEB 22

EXECUTIVE SUMMARY

RE: MULTINATIONAL VILLAGE HOMEOWNERS’ ASSOCIATION (MVHAI)

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1. In January 2004, the group of Arnel Gacutan was elected as MVHAI directors.

2. In the January 2005 village elections, the HLURB restrained the use by Mr. Gacutan of proxy votes for being unverified and questionable. Hence, the group of Felix Resuello won as directors. The latter then filed a case for recognition as such because Gacutan refused to turnover the MVHAI office (NCRHOA-020105-557).

3. Unfortunately, last March 10, 2005, the HLURB Arbiter (Dunstan San Vicente) came out with the subject decision nullifying the 2005 election and ordering the 2005 directors (Resuello et al) to vacate. The dispositive portion provides:

“Wherefore, the foregoing premises considered, a judgment is hereby rendered dismissing complainant’s prayer for affirmation of their election but instead invalidating said election last January 23, 2005.

“Accordingly, the complainants (Resuello et. al.) are hereby directed to peacefully and orderly relinquish their office and position to the former members of the Board of Directors of MVHAI(Gacutan et. al.) and leave its clubhouse and turnover the custody thereof [to] the Board of Directors, and submit a written accounting of moneys received and disbursed from the moment they took over on February 4, 2005, as well as inventory the items therein in the presence of the Management Election Committee of MVHAI. To encourage and ensure a peaceful, humane, courteous and orderly turn over of the clubhouse and the above records and assets of MVHAI, let the proceeding be observed by the members of MVHAI, local government officials, interested entities; and when warranted by overriding requirements of peace and tranquility, by authorized peace officers.

“Let an Ad Hoc or election committee of MVHAI be immediately constituted and appointed which shall be composed of a competent professional or corporate attorney as chairman and representative of this Office, and one representative each from the parties who are members of the MVHAI, and are knowledgeable in corporate proceedings and with known reputation of competence, probity, and integrity, which committee shall provide MVHAI the requisite expertise and objectivity in calling and holding of the meeting of the members to elect the directors of MVHAI. The said Ad Hoc or election committee shall perform its functions and hold office in an accessible, open but secure portion or space of the clubhouse, free and unaffected or uncontrolled at all times from any partisan actions or influence of the parties.

“After its constitution and appointment of its chairman and two (2) members, the committee shall forthwith meet to determine and formulate, among others, appropriate mechanics and rules for the qualification of the members who shall vote and seek an elective, etc. (sic) All meetings, discussion and deliberations to be conducted by the Ad Hoc or Election Committee shall be open and transparent to all parties and members of the association who shall have free and unrestrained access to the venue of said meeting or conferences of this special committee.”

4. On 13 October 2005, the above decision was reversed by the HLURB Board of Commissioners (“BOC”) which declared that “the will of the majority of the members of MVHAI has been already expressed which must be respected.” (HOA-A-050413-0010).

5. But then, on 16 May 2006, the Office of the President (through Usec Gaite) reinstated the Arbiter’s decision. (No. 05-K-377). The reinstated decision became final but only on 18 July 2006. This was several months after the January 2006 election when the 2006 board was installed by the homeowners. While five (5) of the 2005 directors were re-elected, seven (7) were totally new and hence are not parties to the case. The 2006 election was never put in issue and was never questioned in the same case or in any other suit

6. On 31 August 2006, Gacutan et. al., armed with a writ of execution and with numerous goons, tried to takeover the village clubhouse. They were restrained, however, by the BOC which issued a status quo order on the basis of an Urgent pleading from the lawyer of the 2005 directors that the case had already become moot and academic or functus officio since said directors are no longer sitting as such.

7. Gacutan filed his motion to lift the status quo order with the BOC, a Petition for Certiorari with the Court of Appeals, and also a Motion before the OP in an obvious forum shopping spree all assailing the status quo order.

8. On 2 January 2007, the OP (again, through Usec Gaite) came out with an Order which further added chaos to the already murky situation. The dispositive portion is as follows:

“WHEREFORE, premises considered, the Manifestation and Motion of respondents-appellants(Gacutan et al) is hereby GRANTED. The Order of the HLURB Board of Commissioners dated August 31, 2006 is hereby SET ASIDE and a new one issued DIRECTING the same Board to IMPLEMENT the Decision of this Office dated May 16, 2006, which was declared final and executory in the Resolution dated July 18, 2006.

SO ORDERED.”

9. In response, the HLURB BOC released an Order on 17 January 2007 which sought to clarify how the OP intends to implement a Decision which obviously has become functus officio:

“Considering the present circumstances of the parties in the instant case in relation to the specific orders of the above-quoted dispositive portion of the decision reinstated by the Office of the President, and considering further that it was the decision of the Office of the President that became final, it behooves this Board not to impose its own interpretation in the execution thereof. Thus, we defer to the judgment of the Office of the President and elevate the matter thereto on a request for a clarificatory order to guide this Board and the Regional Office in the implementation of the decision, specifically whether or not the decision shall be implemented against the 2005 and/or the 2006 Board. This is also proper considering the manifestation and motion already filed before the said Office by the respondents.

WHEREFORE, let a clarificatory be sought from the Office of the President as regards the implementation of the decision.”

10. Meantime, the MVHAI 2006 President, Ms. Olive Begre, asked for guidance from the HLURB about the scheduled election in January 2007 pursuant to the MVHAI By-laws.

11. On 5 December 2006, the HLURB replied as follows:

“Dear Ms. Begre:

This has reference to your letter dated 04 December 2006, which was received by this Office on the same date, regarding the conduct of your elections.

Relative thereto, you are hereby advised to conduct your elections in accordance with the provisions of the By-Laws of your Association.

Very truly yours,

Atty. Joselito F. Melchor

Head, Homeowners’ Association

Franchising and Adjudication Unit

Noted:

JESSE A. OBLIGACION

Regional Director”

12. Accordingly, the homeowners elected the 2007 directors last 28 January 2007 and hence, at present, not even the 2006 directors are sitting as such. MVHAI has already its 2007 set of directors and officers in place.

13. Yet, in a surprising twist of events, the same HLURB Arbiter San Vicente, issued an alias writ of execution in favor of Gacutan et al which the sheriff now enforced. This was obviously meant to pre-empt the BOC and OP clarification. Last March 29, 2007, Gacutan with the aid of sheriffs, his security guards and some unidentified persons violently seized the clubhouse by breaking doors and windows, and took over the clubhouse.

14. It is thus imperative that Usec Gaite acts on the BOC request to clarify that the Decision, as it is written, pertains only to the 2005 election and 2005 directors and cannot be interpreted to extend to the 2006 directors who are not parties thereto and to the 2006 election which was not the subject of the case. And again, the 2007 election already supervened which is not even a subject of the BOC request for clarification.

Truly yours,

OLIVIA BEGRE

President (2007 MVHAI Board of Directors)

February 22,2007