Biz Buzz: More fireworks at Urdaneta

The legal brawl between unit owners and two officers of upscale Urdaneta Apartments residential tower on the corner of Ayala Avenue and Edsa has created ripples of tension across the law offices representing the feuding parties.

To recall, Daniel Vasquez and daughter Maria Beatriz Vasquez of the storied Madrigal clan have taken two of Urdaneta Apartments Condominium Corp. (UACC)’s officers to court for allegedly pushing “costly” and “unnecessary” building projects—a waterproofing and fire sprinkler system—allegedly bereft of transparency. The case has been endorsed for trial by the Makati City Prosecutor.

Meanwhile, the Divina Law legal firm has raised more issues on behalf of the Vasquezes, alleging that the UACC officers’ legal counsel, law firm Gabionza de Santos and Partners, was in a “conflict-of-interest” situation because the latter’s legal fees were charged against each UACC member’s proprietary interest. Divina Law asserted UACC itself was not party in the criminal case which was slapped only against two of the officers (in their personal capacities). As such, Divina Law said, it’s “absurd” for the members to pay their legal expenses and “even more ludicrous” to charge the Vasquezes (who had sued them in the first place) for the legal expenses.

“Should you continue to collect funds from the members on the pretext that they are legally obliged to do so when they are not, you may be held liable not just for damages, but also for ‘other deceits,’ which is a form of estafa,” Divina Law said in a letter dated Aug. 27 addressed to the UACC officers.

In response to the accusations, however, the Gabionza de Santos law firm said Divina Law’s insinuation was “baseless.” Writing back to Divina Law, it said, “Please note that the criminal case was lodged not by UACC nor for or on its behalf but by individual members of UACC based on alleged violation of their individual rights as such. Clearly, there is no conflict in representing UACC and its corporate officers.”

One test of conflict of interest, Gabionza de Santos said, was whether a lawyer was duty-bound to fight for an issue or claim on behalf of one client and, at the same time, to oppose that claim for the other client. In this case, it argued that UACC and its individual members (Vasquezes) had separate and distinct personalities and interests and thus, there’s no conflict of interest in the handling of the criminal case.

On the issue of UACC authorizing the defense of the two officers, Gabionza de Santos said it’s standard corporate practice for a corporation to authorize the defense of their directors and corporate officers or indemnify the legal costs for attorney’s fees incurred by these persons if the suit against these persons was as a consequence of them being directors or officers. Otherwise, the law firm said no person would want to run as a director or officer of any corporation.

The law firm also insisted that its clients—UACC president Carolyn Butler and corporate secretary Maria Lourdes Senn—had “at all times acted in good faith, with complete transparency and for a purpose they reasonably believed to be in the best interest of UACC.”

“Indeed, there was no act committed in bad faith, nor was there any active and deliberate dishonesty, nor any personal gain, on the part of the officers concerned. Furthermore, they are entitled to the constitutional presumption of innocence,” Gabionza de Santos said. Doris C. Dumlao

Rice bucket challenge on

Henry Lim Bon Liong, CEO of Sterling Paper Group of Companies and hybrid rice producer SL Agritech Corp., celebrated his birthday on Sept. 4 and, instead of having a grand party, he decided to take up the so-called Rice Bucket Challenge and has even called on his fellow CEOs and entrepreneurs to follow suit.

Inspired by the Ice Bucket Challenge that helped raise funds and awareness for amyotrophic lateral sclerosis, or Lou Gehrig’s disease, the Rice Bucket Challenge that was started in India aims to encourage people to donate a bucket of rice to the less privileged.

Bon Liong says he finds it more compelling to take up the Rice—not Ice—Bucket–challenge as rice is a staple, and donating rice will have a much bigger impact on poor Filipinos. Each bucket contains five kilos of rice.

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