Philippine Supreme Court Jurisprudence > Year 2011 > February 2011 Decisions > [G.R. No. 188802, February 14 : 2011] REVELINA LIMSON, PETITIONER, VS. WACK WACK CONDOMINIUM CORPORATION, RESPONDENT. :

On January 22, 1996, Revelina Limson^[1] (Revelina) purchased from Conchita Benitez an apartment unit (Unit 703) at Wack Wack Apartments, Wack Wack Road, Mandaluyong City.

Upon moving in, Revelina noticed defects in the electrical main panel located inside the unit, drawing her to report them, by letter of February 22, 1996, to the Wack Wack Condominium Corporation (respondent), a non-stock corporation organized for the purpose of holding title to and managing the common areas of Wack Wack Apartments

Racquel Gonzalez, who sits as Member of respondent's Board of Directors, replied by letter of February 23, 1996 that under Section 3 of the House Rules and Regulations, it is the duty of the unit owner to maintain the electrical and plumbing systems at his/her expense.

By still another letter dated February 28, 1996, Revelina informed respondent that the "switch board is such that No. 12 wire is protected by 30 ampere fuse" and that five appliances - refrigerator, freezer, iron, dryer and washing machine - are connected to only one fuse.

Revelina later sought professional assistance from a private electrical consultant, Romago, Incorporated.  It was concluded that the wirings in Unit 703 are unsafe, hazardous and did not comply with the Philippine Electrical Code.

On Revelina's request, the City Building Office conducted an inspection of Unit 703 following which a Report dated January 21, 1997 was accomplished with the following findings and recommendations:

Findings:

1. The load center consists of 100 A 2 pst main switch and fusible cut out Blocks with 16 circuits. The fusible cut out block enclosure is not provided with cover, exposing electrical live part that makes it hazardous, unsafe and will be difficult to maintain because a portion was blocked by a shelf.
   
2. The jumper cable from main safety switch to fusible cut-out blocks used 2 #10 wire (Capt. 60 amp) per phase. This is undersized and would overheat.
   
3. The fusible current protective devise where all 30 Amp., sp., 240 v FOR 2 #12 TW (20 AMP. Capacity wire) this does not comply with the provision of the Philippine Electrical Code that stipulates rating of the protective devise shall be the same as the conductor ampacity especially on a multi outlet circuit.
   
4. Power supply for water heaters was tapped to small appliance for convenience outlet circuit.
   

Recommendation:

1. Replacement of fusible load center with panel board and circuit breaker components to correct the problem as enumerated on items 2, 3, 4 of our findings.
   
2. Replace the embedded circular loom with conduit on moulding.
   
3. Check all grounded circuit for water heater lad.
   
4. Provide separate circuit for water heater lad.
   
5. Submit As Built Electrical Plan signed and sealed by a Professional Electrical Engineer together with the previous approved Electrical Plan.   (emphasis and underscoring supplied)
   

The Report was sent by then Mayor Benjamin Abalos, Sr. to respondent by letter dated January 31, 1997.   On February 3, 1997, respondent, through Architect Eugenio Gonzalez, wrote Revelina to demand that repairs in line with the above-stated recommendation of the City Building Office be undertaken within ten (10) days.

Before the deadline, respondent's Board of Directors convened on February 7, 1997 and resolved to impose a daily fine of P1,000.00 on Revelina and her husband Benjamin, to commence on February 14, 1997, should the latter fail to comply.

Revelina and her husband refused to undertake the repairs and to pay the fine.  They claimed that the electrical main panel forms part of the common areas, citing Section 6 of  Republic Act No. 4726^[2], "An Act to Define Condominium, Establish Requirements for its Creation and Government of its Incidents,"  the pertinent provision of which reads:

Sec. 6. Unless otherwise expressly provided in the enabling or master deed or the declaration of restrictions, the incidents of a condominium grant are as follows:

a.)  x x x The following are not part of the unit: bearing walls, columns, floors, roofs, foundations, and other common structural elements of the buildings; lobbies, stairways, hallways and other areas of common use, elevator equipment and shafts, central heating, central refrigeration and central air conditioning equipment, reservoir, tanks, pumps and other central services and facilities, pipes, ducts, flues, chutes, conduits wires and other utility installations, wherever located, except the outlets thereof when located within the unit.  (emphasis and underscoring supplied)

They argued that an electrical main panel is in the nature of a utility installation.

Meanwhile, Revelina and her husband purchased an oversized whirlpool.   In the process of installation, the 7^th floor utility room which is adjacent to Unit 703 was damaged.

Revelina claimed that an agreement had been reached under which respondent would take charge of the repair of the utility room and would bill her for the cost incurred therefor but respondent failed to do so.  Yet the Board of Directors assessed her and her husband a fine of P1,000.00 per day until the utility room is repaired.

Respondent thereupon filed a complaint for specific performance and damages against Revelina and Benjamin before the Securities and Exchange Commission (SEC) upon the following causes of action:

1. To compel the defendants (Spouses Limson) to undertake the necessary repairs of the defective and hazardous condition of the electrical wiring of their Unit 703 in accordance with the report and recommendation of the Office of the Building Official of Mandaluyong City;
   
   
2. To seek payment of liquidated damages from the defendants in accordance with the Resolution of the Board of Directors of plaintiff (respondent herein), starting February 15, 1997 until the defendants shall have complied with the aforestated report and recommendation of the building officials; and
   
   
3. To seek payment of [sic] from the defendants for the damages they have caused to the common area of Wack Wack Apartments due to their insistence to install in their unit an over-sized whirlpool.^[3]

Pursuant to A.M. No. 00-11-03,^[4] the complaint was transferred to the Regional Trial Court (RTC) of Mandaluyong City for disposition.

As of June 30, 1997, the assessments and penalties charged against the spouses had reached P569,736.94. On July 17, 1997, respondent filed a Notice of Assessment with the Register of Deeds, Mandaluyong City with application for foreclosure and public auction of Unit 703.

At the public auction held on August 28, 1997, respondent emerged as highest bidder and thereupon purchased Unit 703 in the amount of P569,736.94, on account of which it was issued a Certificate of Sale on September 15, 1997.

By Decision of December 22, 2003, Branch 214 of the Mandaluyong RTC dismissed respondent's complaint for lack of merit in this wise:

Guided by the findings and recommendation of the building official of Mandaluyong City, it would appear that the questioned electrical installations are to be considered as part of the common area and not of Unit 703, though the same are necessarily found inside the said unit. As contained in Section 6, par. 1 of the Condominium Act: "a) The boundary of the Unit granted are the interior surfaces of the perimeter walls, floors, ceilings, windows and doors thereof. The following are not part of the unit: bearing walls, columns, floors, roofs, foundations, and other common structural elements of the buildings; lobbies, stairways, hallways and other areas of common use, elevator equipment and shafts, central heating, central refrigeration and central air conditioning equipment, reservoir, tanks, pumps and other central services and facilities, pipes, ducts, flues, chutes, conduits wires and other utility installations, wherever located, except the outlets thereof when located within the unit.  (underscoring supplied; emphasis in the original)^[5]

On appeal, the Court of Appeals, by Decision of December 19, 2008,^[6]  reversed the decision of the trial court, holding in the main that for the electrical main panel to be considered as part of the common areas, it should have been intended for communal use and benefit. The subject electrical main panel being located inside the unit and its principal function being to control the flow of electricity into the unit, the appellate court concluded that charges for its repair cannot be for respondent's account.

On the imposition of fine on the spouses Limson for failure to correct the faulty electrical wiring despite notice, the appellate court upheld respondent's authority to enforce the same.  Finding, however, that the amount of P1,000 fine per day was excessive, it reduced the same to P200.

Respecting respondent's imposition of a fine of P1,000 per day on the spouses' alleged failure to repair the 7^th floor utility room, the appellate court disallowed the same, however, it holding that respondent did not first seek reimbursement from them before assessment.

Finally, the appellate court denied respondent's prayer for actual damages in the amount of P5,000 representing repair expenses on the utility room, it having failed to present receipts therefor.

Her Motion for Reconsideration having been denied, Revelina filed the present petition for review.

The Court finds for Revelina.

The pertinent provisions of the Wack Wack Apartments Master Deed follow:

Section 5. The Common Areas. - The common elements or areas of the Project (herein referred to as the "Common Areas") shall comprise all parts of the Project other than the Units, including without limitation the following:

x x x x

(e) All central and appurtenant equipment and installations for common facilities and utilities such as power, light, sewerage, drainage, garbage chute, and water connections (including all outlets, pipes, ducts, wires, cables and conduits used in connection therewith, whether located in Common Areas or in Units); all elevators, elevator shafts, tanks, pumps, motors, fans, compressors, and control equipment; all common utility spaces and areas;

(f) All other parts of the Project and all apparatus, equipment and installations therein which are for common use or necessary or convenient for the existence, maintenance of safety of the Project. (emphasis and underscoring supplied)

Section 3. Maintenance, Repairs and Alterations. - (a) All maintenance of and repairs of any Unit (other than the maintenance of and repairs to any of the Common Areas contained therein not necessitated by the act or negligence of the owner, tenant or occupant of such Unit) shall be made [by], and at the expense of, the owner of such unit. Each Unit owner shall be responsible for all damages to any other Unit and to the Common Areas resulting from his failure to effect such maintenance and repairs. Each Unit owner shall also be responsible for promptly reporting to the Condominium Corporation any defect or need for repairs in any of the Common Areas in his Unit. (emphasis and underscoring supplied)

x x x x

Section 3 (e) of R.A. 4726 defines "common areas" as "the entire project except all units separately granted or held or reserved."  Section 6 (a) of the same law provides:

a.) x x x The following are not part of the unit: bearing walls, columns, floors, roofs, foundations, and other common structural elements of the buildings; lobbies, stairways, hallways and other areas of common use, elevator equipment and shafts, central heating, central refrigeration and central air conditioning equipment, reservoir, tanks, pumps and other central services and facilities, pipes, ducts, flues, chutes, conduits wires and other utility installations, wherever located, except the outlets thereof when located within the unit.  (emphasis and underscoring supplied)

The electrical panel's location inside the unit notwithstanding, it is not automatically considered as part of it.  The above-quoted pertinent provisions of the law and the master deed contemplate that "common areas," e.g. utility installations, may be situated within the unit.

Where a statute is clear, plain and free from ambiguity, it must be given its literal meaning and applied without attempt to interpret.^[7] Verba legis non est recedendum, index animi sermo est. There should be no departure from the words of the statute, for speech is the index of intention.

An explanation of the Apartment's electrical supply system was presented by respondent, viz:

a.) x x x [T]he electrical system of the Apartments commences with a common main electrical line (main line) provided by the Apartments, connected to a Meralco line outside the building. This common main line runs to the ground floor of the building, where the common meter station is located; from where individual secondary lines, are tapped to the common main line. There are as many individual secondary lines tapped to the common main line, as there are units. EVERY SECONDARY LINE TRAVELS VERTICALLY TO ITS DESIGNATED FLOOR AND LEADS TO AN INDIVIDUAL UNIT.

b.) The construction is such, that every secondary line is embedded within the wall of a unit, until it surfaces from the wall, ready to supply electricity to that unit; the UNIT, in this case, has two (2) metal boxes, inside the UNIT; both attached to the wall of the UNIT. The first of the two (2) metal boxes is the main switch box. (Annex "B" and "B-1" The main switch box has a hole, through which the secondary line enters and is attached to the upper end of two (2) big fuses, located in the main switch box (Annex "B-1-a"). The upper end of the two (2) big fuses, where the secondary line (tapped to the main line) ends are indicated and marked as (Annex "B-1-b" and "B-1-c")

c.) At the lower end of these two (2) big fuses, there are separate electrical wires (technically called "jumper cables"). The jumper cables originate in the UNIT's second metal box which is the fusible cutout box (fuse box), and the jumper cables are connected to the lower end of the two (2) big fuses in the main switch box to draw electricity to feed the fuse box. x x x ^[8] (capitalization and underscoring in the original)

In a multi-occupancy dwelling such as Apartments, limitations are imposed under R.A. 4726^[9] in accordance with the common interest and safety of the occupants therein which at times may curtail the exercise of ownership. To maintain safe, harmonious and secured living conditions, certain stipulations are embodied in the duly registered deed of restrictions, in this case the Master Deed, and in house rules which the condominium corporation, like respondent, is mandated to implement. Upon acquisition of a unit, the owner not only affixes his conformity to the sale; he also binds himself to a contract with other unit owners.^[10]

Unquestionably, the fuse box controls the supply of electricity into the unit. Power is sourced through jumper cables attached to the main switch which connects the unit's electrical line to the Apartment's common electrical line. It is an integral component of a power utility installation. Respondent cannot disclaim responsibility for the maintenance of the Apartments' electrical supply system solely because a component thereof is placed inside a unit.

As earlier stated, both the law and the Master Deed refer to utility installations as forming part of the common areas, which reference is justified by practical considerations. Repairs to correct any defects in the electrical wiring should be under the control and supervision of respondent to ensure safety and compliance with the Philippine Electrical Code,^[11] not to mention security and peace of mind of the unit owners

WHEREFORE, the petition is GRANTED.  The Court of Appeals Decision of December 19, 2008 is REVERSED and SET ASIDE. The Decision of  Branch 214 of the Mandaluyong Regional Trial Court dismissing the complaint of Wack Wack Condominium Corporation against Revelina and Benjamin Limson is, in light of the foregoing discussions, REINSTATED.

SO ORDERED.

Brion, Peralta^* Villarama, Jr., and Mendoza,^** JJ., concur.

Endnotes:

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^* Additional member per Special Order No. 944 dated February 9, 2011 vice Associate Justice Ma. Lourdes P.A. Sereno.

^** Additional Member vice Associate Justice Lucas P. Bersamin who took no part due to prior action in a related Court of Appeals case, per Raffle dated June 2, 2010.

^[1] The Condominium Certificate of Title is registered under the name of "Revelina R. Limson, of legal age, Filipino, married to Benjamin Limson, Filipino."

^[2] Otherwise known as The Condominium Act.

^[3] CA rollo, p. 72.

^[4] Otherwise known as the "Interim Rules of Procedure for Intra-Corporate Controversies".

^[5] CA rollo, p. 77.

^[6] Penned by the late Associate Justice Edgardo F. Sundiam, with the concurrence of Associate Justices Pampio A. Abarintos and Ramon M. Bato, Jr., CA rollo, pp. 152-179.

^[7] Signey v. Social Security System, G.R. No. 173582, January 28, 2008, 542 SCRA 629.

^[8] CA rollo, Appellant's Brief, pp. 33-34

^[9] Vide Section 9 and Section 18.

^[10] Twin Towers Condominium Corporation v. Court of Appeals, G.R. No. 123552, February 27, 2003, 398 SCRA 203.

^[11] Section 1301 of the National Building Code provides: All electrical systems, equipment and installation mentioned in this Code shall conform to the provisions of the Philippine Electrical Code, as adopted by the Board of Electrical Engineering pursuant to Republic Act No. 184 as amended by Republic Act No. 7920 otherwise known as the "New Electrical Engineering Law."