Court stops eviction of Isetann mall from LRT lot in Manila

A Manila regional trial court has stopped the state-run Light Railway Transit Authority (LRTA) from evicting Isetann Department Store, Inc. from a government-owned property in Sta. Cruz, Manila. "After a careful and judicious evaluation of the contentions of both parties, this court is convinced that a preliminary injunction is necessary to preserve the status quo until the merits can be heard and in order not to render ineffectual whatever judgment may be issued by this court," Branch 22 Judge Silvino Pampilo Jr. said in a three-page resolution. The injunction will take effect only after the mall deposits a P300,000 bond, he said. The LRTA owns the 1,461.7-square meter Claro M. Recto Avenue property where the department store stands. In 1982, the state corporation gave the Philippine General Hospital, Inc. the authority to supervise the management and operation of commercial concessions adjacent to the train stations. The hospital was also allowed to sublease or assign its rights to another company. The PGH entered into a 25-year sublease deal with Joy Mart Consolidated Corp. in 1984, renewable for another 25 years. The latter later transferred its rights and interests to Isetann. In 1986, the LRTA cancelled its deal with the hospital and later asked Joy Mart to pay directly to it. With the lease agreement about to expire, Joy Mart informed the LRTA last year that it wanted to renew the contract. On October 22 last year, the LRTA informed Joy Mart it would soon bid out the property to other parties. Isetann was asked to vacate the premises by January 7. Isetann did not budge, and a final notice was issued last month. The LRTA insists Isetann does not have the legal personality to sue it. It also said it could not use the property if the sublease deal is renewed. — Ira P. Pedrasa, BusinessWorld