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Republic of the Philippines National Capital Judicial Region REGIONAL TRIAL COURT Branch 90, Quezon City LAKISA

LAYAW, Plaintiff, Civil Case No. 97-31312 - versus LAKISA HIRAP, Defendant. x ------------------------------------- x PRE-TRIAL BRIEF DEFENDANT, by counsel, respectfully submits her Pre-Trial Brief, as follows: I. WILLINGNESS TO ENTER INTO AN AMICABLE SETTLEMENT AND POSSIBLE TERMS OF ANY SUCH SETTLEMENT 1.1. Subject to a concrete proposal that is fair and reasonable and a reciprocal manifestation of openness from plaintiff, defendant is open to the possibility of amicably settling this dispute. 1.2. Pursuant to Rule 18 of the 1997 Rules of Civil Procedure, defendant respectfully submits that the desired terms of any amicable settlement would involve, first, a clarification of the actual extent of any obligation due and owing to plaintiff inasmuch as there is nothing to indicate defendants obligations to plaintiff and, second, a schedule of payments. II. BRIEF STATEMENT OF CLAIMS AND DEFENSES 2.1. Plaintiff seeks principally to recover the amount of Twenty Two Million Eight Hundred Eighteen Thousand Nine Hundred Forty Eight Pesos and Thirty Centavos (PHP22,818,948.30) with interest at twelve percent (12%) arising allegedly from unpaid orders delivered to defendant variously in 1989. 2.2. Defendant resists plaintiffs claims based on a failure to state a cause of action because of : 2.2.1. Plaintiffs lack of personality to sue and, therefore, not being the real party in interest under Rule 3, section 2 of the 1997 Rules of Civil Procedure; 2.2.2. Extinguishment of the alleged claim made by the entity Regency Furniture. 2.3. Defendant also interposed a compulsory counterclaim for Two Million Pesos (PHP2,000,000.00) for moral damages and Two Million Pesos (PHP2,000,000.00) for exemplary damages and One Hundred Thousand Pesos (PHP100,000.00) as attorneys fees.

III. FACTS AND OTHER MATTERS ADMITTED BY THE PARTIES 3.1. Defendant admits only those facts stated in her Answer, i.e., her personal circumstances, receipt of the demand letter dated January 5, 1997 and her reply to the demand letter. 3.2. Subject to a concrete proposal for stipulation of additional facts from plaintiff during pretrial or even thereafter, defendant admits no other facts stated in the Complaint. IV. ISSUES TO BE TRIED 4.1. Defendant submits that the following issues put forward by plaintiff are subject to proof: 4.1.1. Plaintiffs personality to seek legal relief; 4.1.2. Plaintiffs entitlement to the amount claimed; 4.2. Defendant submits that the following issues she put forward are subject to proof: 4.2.1. Plaintiffs bad faith in filing this suit; 4.2.2. Defendants entitlement to the claims made in her Compulsory Counterclaim as a result of plaintiffs bad faith; V. EVIDENCE 5.1. Defendant intends to present the following witnesses: 5.1.1. Defendant herself, who will testify on the true circumstances leading to the filing of this suit against her; 5.1.2. An employee of Topless Enterprises with personal knowledge as to the true circumstances behind the alleged obligations due and owing in favor of plaintiff. 5.2. Defendant reserves the right to present any and all documentary evidence which shall become relevant to rebut plaintiffs claims in the course of trial as well as any other witnesses whose testimony will become relevant to belie plaintiffs witnesses, if necessary. VI. RESORT TO DISCOVERY 6.1. Considering the relatively simple issues presented, defendant does not intend to avail of discovery at this time. 6.2. Subject, however, to a concrete and reasonable request for discovery from plaintiff, defendant reserves the right to resort to discovery before trial. RESPECTFULLY SUBMITTED. Quezon City; 13 April 2007.

(Sgd.) MITCH MCDEERE Counsel for Defendant [Address]

Copy furnished: Atty. MA BOLA Counsel for Plaintiff

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