CA: Makati court that ruled in favor of Sunvar in Mile Long property case lacked jurisdiction

The Court of Appeals (CA) has maintained that the Makati City court that issued an order stopping the company owned by the Prieto-Rufino clan from vacating the controversial Mile Long property had no jurisdiction over the matter.

Deciding on the motion for reconsideration filed by Sunvar Realty Development Corp., the CA Former Fifth Division found no reason to reverse its January 26, 2017 decision dismissing one of the two civil cases filed by the realty firm to prevent its ejectment from the property.

"We adhere to our earlier finding that the RTC [Regional Trial Court] of Makati City, Branch 59 has no jurisdiction to take cognizance of the petition for injunction to enjoin the implementation and execution of the decision of the MeTC [Metropolitan Trial Court] of Makati City, Branch 61,” the June 21 resolution stated.

The appellate court added the MeTC order in favor of the ejectment may only be stopped upon the filing of a bond approved by the MeTC, and the accruing rentals deposited.

"Then again, jurisdiction is not a mere matter of form or technicality. Jurisdiction exists as a matter of law, and may not be conferred by consent of the parties or by estoppel," stated the resolution penned by Associate Justice Jose Reyes, Jr.

The CA, however, allowed another branch of the Makati RTC to handle Sunvar's petition against the MeTC decision.

It can be recalled that Sunvar filed the injunction petition with Makati RTC Branch 59 and appeal on the same issue before Branch 141.

Branch 59 then consolidated the two cases and ruled in favor of Sunvar.

"With the consolidation being declared improper, the RTC of Makati Branch 59 cannot exercise its jurisdiction over Civil Case Nos. 15-759 and 15-958 and consequently, the resulting joint decision which it issued is void and carries no legal effect," the resolution stated.

“Civil case No. 15-958 which we ruled to subsist remains with the RTC of Makati City Branch 141 and as such, remand the case for the continuation of the proceedings of the appeal is just proper,” the CA said.

President Rodrigo Duterte earlier said he wanted the 2.9-hectare property be returned to the government, arguing the Prieto and Rufino families, who also own the broadsheet Philippine Daily Inquirer, have not remitted proceeds due government.

His pronouncement came on the heels of previous rants about the Inquirer, which he has accused of unfair coverage of his administration.

Duterte said he plans to sell the lot and use the proceeds for housing projects.
The lot is actually owned by the National Power Corp. (Napocor), which leased the property to the Technology Resource Center Foundation Inc. (TRCFI) for 25 years from January 1, 1978 up to December 31, 2002, renewable for another 25 years.

After the 1986 EDSA People Power Revolution, TRCFI was dissolved and the rights to the property were given to the Philippine Development Alternatives Foundation (PDAF). It was PDAF that entered into a sublease agreement with Sunvar to develop commercial facilities.

Napocor, however, intended not to renew the lease in 2002 and informed PDAF and Sunvar to vacate the property as the government planned to sell the lot.

But the realty firm argued that it had the exclusive option to extend the lease for another 25 years under the same terms of the previous contract and refused to vacate the property even after a number of notices.

Napocor eventually filed a case for unlawful detainer against Sunvar through the Office of the Solicitor General at the Metropolitan Trial Court in Makati City in July 2009.

In June 2015, the MeTC Branch 61 ruled in favor of the government and ordered Sunvar to vacate the property. It also directed Sunvar to pay back rentals amounting to P478.2 million as of May 2015, with monthly rental of P3.2 million starting June 2015 until they leave the property.

But Sunvar was able to obtain an injunction from the Makati RTC Branch 59 against the MeTC ruling.

The government then elevated the case to the CA. —KG, GMA News