A N S W E RWITH COUNTERCLAIMS

COMES NOW Defendant _____________, by counsel and unto this Honorable Court,

most respectfully states and avers that:

1. Defendant admits the allegations contained in paragraphs 1, 2, 4, and 5 of the Complaint;

2. Insofar as paragraphs 6 and 7 are concerned, the best evidence thereof are the actual

stipulations as set forth in Paragraph 7 of the Promissory Note and Paragraph 11 of the

Deed of Chattel Mortgage;

3. Defendant vehemently denies the allegations contained in paragraph 8 of the Complaint.

Defendant's mode of payment of her car loan with the Plaintiff Bank has always been by

way of auto-debit of her account with the same bank under Account No. _____________ .

To pay off her monthly amortization, Defendant had continuously and religiously

deposited the required amounts on her said account since April 2002, which was in turn

likewise religiously auto-debited by the Plaintiff Bank from month to month;

4. To cover her monthly amortization for July 8, 2004, which was falsely alleged by the

Plaintiff Bank to have not been paid, Defendant deposited the amount of P24,000.00 to

her said Account No. _____________ so that it could be auto-debited by the Plaintiff

Bank the following day when the said amortization for July 2004 became due. Machine

copy of deposit slip dated July 7, 2004 in the amount of P24,000.00 is hereto attached as

Annex "1" and made an integral part of this Answer;

5. To cover her monthly amortizations after July 2004, Defendant likewise continued to

make deposits in her above-said account as follows: P24,000.00 on August 4, 2004;

P24,000.00 on September 3, 2004; and another P24,000.00 on October 5, 2004. The said

continuous deposits of P24,000.00 monthly from July to October, 2004 were more than

enough to cover her alleged default of four (4) months. Machine copies of Defendants

deposit slips for the months of August to October, 2004 are hereto attached as Annexes

"1-A" to "1-C" and made integral parts of this Answer;

6. Sometime in July 2004, the attention of the Defendant was called by the bank that she

had not paid her due for July 2004 which she thought was impossible considering that she

had always been paying by way of auto-debit and she had not failed to deposit the

required amount in her account;

7. Defendant immediately visited Plaintiff's branch and it was alleged that she had not

signed an auto-debit agreement with the bank, which was ridiculous considering that the

bank had made auto-debits on her account from April 2002 through June 2004.

Nonetheless, to ensure that she would not be in default in the payment of her loan

amortization, she paid the amortizations for July to October, 2004 over the counter in the

presence of Plaintiff's Branch Manager _____________. Machine copies of Defendant's

Loan Payment Slips: P13,357.53 on July 9, 2004, P13,357.53 on August 9, 2004,

P13,357.53 on September 10, 2004, and P13,357.53 on October 8, 2004 are hereto

attached as Annexes "2-A" to "2-D", respectively and made integral parts of this

Answer;

8. Defendant's admits the receipt of Plaintiff's demand letter dated October 29, 2004

mentioned in paragraph 9 of the Complaint but vehemently denies the rest of the

allegations contained therein, especially Plaintiff's malicious denial of Defendant's

payments for the months of July to October 2004;

9. Upon receipt of the said demand letter, Defendant immediately visited the Plaintiff's

branch to complain about the said demand letter and to pay her amortization for

November 2004 over-the-counter. However, the said payment was refused by the

Plaintiff Bank which insisted on the payment of the full amount of P289,229.84 as

claimed in its demand letter and falsely claiming that Defendant defaulted in payment of

her amortization for four (4) months, i.e., from July to October 2004. As such, Defendant

there and then requested and demanded for a print-out of her statement of account and

summary of all payments made but the same could not be produced by the Plaintiff Bank

and she was even arrogantly told to make her request through their Manila office;

10. Considering that Defendant has not defaulted in the payment of her amortizations as

previously intimated, there is therefore no factual and legal basis for the Plaintiff's claims

and allegations set forth in paragraphs 10, 11 and 12 of the Complaint as well as for the

issuance of a Writ of Replevin for the seizure of the subject motor vehicle from the

Defendant;

11. The allegation contained in paragraph 13 (b) of the Complaint as to the actual value of

the subject motor vehicle as only approximately P290,000.00 is specifically denied. The

subject motor vehicle is well maintained and is in good condition and as such it still has

an actual market value of approximately P500,000.00 and therefore, Plaintiff's Replevin

Bond of only P580,000.00 should be cancelled and nullified for being grossly insufficient

and deficient;

AS COMPULSORY COUNTERCLAIMS

12. Defendant hereby restates and repleads all the allegations in the preceding paragraphs by

way of reference and incorporation;

13. As a consequence of the malicious and wrongful filing of this entirely baseless and

unjustified action, Plaintiff should be made liable to pay Defendant in the amount of

__________________________ (P_____________) per day, by way of compensatory

damages, starting on December 16, 2004 when the Defendant had been unjustifiably

deprived of the possession, use and enjoyment of the subject vehicle, until actual

possession of the subject vehicle is restored to the Defendant;

14. As a consequence of the malicious and wrongful filing of this entirely baseless and

unjustified action, which is attended by extreme bad faith, lies and deception, denial of

payments made, and the unjustified seizure of the subject motor vehicle from the

Defendant, the latter and her family had suffered sleepless nights, mental anguish, serious

anxiety, severe stress, wounded feelings, besmirched reputation and social humiliation

for which Plaintiff should be made liable for moral damages in the total amount of

__________________________ (P_____________);

15. In instituting this unwarranted and clearly unfounded suit against the Defendant, Plaintiff

had acted in a wanton, fraudulent, reckless and malevolent manner and, by way of

example or correction for the public good, Plaintiff should be made liable to pay

Defendant exemplary damages in the total amount of __________________________

(P_____________);

16. As a further consequence of the malicious and wrongful filing of the present action,

Defendant was constrained to hire the services of counsel for a legal fee of

__________________________ (P_____________), plus

__________________________ (P_____________) per court appearance, and to incur

expenses of litigation for which plaintiff should be made to pay.

P R A Y E R

WHEREFORE, PREMISES CONSIDERED, it is most respectfully prayed that after

hearing on the merits, this Honorable Court issue an Order:

Dismissing the Complaint in toto for utter lack of merit;

Ordering the immediate re-delivery of the subject motor vehicle to the Defendant

and/or to pay Defendant its actual market value at the time of dispossession

should actual delivery be no longer possible, plus interest at the rate of five

(5%) per month until the said amount is fully paid;

Granting compensatory damages to the defendant in the amount of

__________________________ (P_____________) per day starting

December 16, 2004, until actual possession of the subject motor vehicle is

restored to the Defendant or its actual market value is fully paid with interest;

Granting moral damages in favor of the Defendant in the amount of

__________________________ (P_____________);

Granting exemplary damages in favor of the Defendant in the amount of

__________________________ (P_____________);

Granting defendant's claim for attorney's fees in the amount of

__________________________ (P_____________) plus

__________________________ (P_____________) per court appearance, and

the amount of litigation expenses as may be proved during trial.

Other reliefs just and equitable under the premises are likewise prayed for.

_____________, Philippines, __Date__.

(COUNSEL)

(VERIFICATION)

(CERTIFICATION OF NON-FORUM SHOPPING)

(EXPLANATION)

COPY FURNISHED:

OPPOSING COUNSEL