Magno sues Cusipag and sons for alleged fraudulent transfer of properties

Magno sues Cusipag and sons for alleged fraudulent transfer of properties

OSWALD MAGNO

By The Philippine Reporter

It’s been several months since Balita publisher Tess Cusipag lost a defamation lawsuit filed by Oswald P. Magno but Cusipag’s legal woes appear to be far from over.

The Philippine Reporter has obtained a Statement of Claim filed with the Ontario Superior Court of Justice on July 18, 2018 showing Magno, a former lawyer and businessman, as the plaintiff, and Cusipag and her sons Lawrence Michael de Juan, Louis Anthony de Juan and Lyle Edward de Juan as the defendants.

Magno alleges that Cusipag’s successive transfers of her Markham residential property and two condos to her sons, within months after a substantial damage award was made against her in a separate defamation proceeding by the late Sen. Tobias Enverga, Jr., and while Magno’s lawsuit and two other lawsuits were pending, are “fraudulent” and seeks a court order setting aside the transfers as “void” and re-vesting the titles to Cusipag.
Cusipag and her sons filed a Statement of Defence dated August 22, 2018 denying “each and every allegation set out” in Magno’s statement of claim. They requested, without providing reasons, that “the action be dismissed, with costs.”

In July 2016, an Ontario Justice ordered Cusipag and her co-defendants to pay $150,000 in general and aggravated damages and $100,000 in punitive damages to Senator Enverga. At that time, Cusipag also faced libel lawsuits brought against her by Magno and two other complainants separately. Two years later, the judge would eventually rule in favour of Magno.

A twenty-page decision by Madame Justice Jane E. Ferguson of the Ontario Superior Court on May 23, 2018 granted Magno a total of $300,000 in general and aggravated damages and $110,000 in punitive damages. Additionally, in a separate ruling on July 27, 2018, the judge awarded Magno $150,000 as compensation for legal costs, pre-judgment interest amounting to $18,613 and a three per cent annual interest rate of the total owed.

However, according to the claim, Cusipag’s lawyer Roy Respicio responded to Magno on June 29, 2018 that his client “is 70 years old” and “has no ability to pay the costs sought by the Plaintiff.”

According to Land Registry Office records, Cusipag transferred her Markham home property to her sons on August 19, 2016 for the nominal sum of $2 as a gift to them. Over the next few months following the Enverga ruling in July 2016, Cusipag transferred two more properties to her sons: a condo on Peter Street and a condo on Fort York as “a gift to the children” or for “inter-family transfer for natural love and affection.”

Magno argues in his claim that the transfers of the properties had the “intent to conceal her [Cusipag’s] personal assets, and defeat, hinder, delay or defraud judgement creditors of their lawful damages and costs.” The claim further suggests that Cusipag’s sons were aware of these pending lawsuits, and “conspired” with Cusipag “to defeat, not only the then actual judgement creditor (i.e. Senator Enverga) but also future potential judgment creditors, including the Plaintiff [Magno].”

The Philippine Reporter consulted a lawyer who said that the transfers “bear the mark of being fraudulent.” He added that it’s highly likely that the judge will order these transfers void, thereby transferring the title back to Cusipag. Following that, the plaintiff is entitled to file a writ of seizure and sale with the district sheriff in order to collect money that is owed.

The Philippine Reporter contacted Roy Respicio, who represented Cusipag and Balita Associate Editor Romeo P. Marquez in the libel case filed by Magno. However, while still on retainer for Cusipag, Respicio stated that he was not aware of the documents dated July 18, 2018. Attempts were also made to contact Magno but calls were not immediately returned.

Likewise, The Philippine Reporter has emailed Cusipag regarding the documents. In an emailed response on September 25, she stated that her “lawyers will respond when they need to.” Follow-up emails asking for her comments or when she plans to respond to the claims have remained unanswered.

Cusipag remains the publisher and editor of Balita, a semi-monthly community newspaper that was founded in 1978 by her late husband, Ruben Cusipag. It is reported that she continues to use her former Markham property as residence and office for her newspaper business.