Olongapo SubicBay BatangGapo Newscenter

Wednesday, November 08, 2006

SC prohibits lower courts from delaying govt projects

LOWER courts cannot delay the implementation of government projects undertaken by the Bases Conversion and Development Authority by issuing temporary restraining orders or writs of preliminary injunction, the Supreme Court affirmed yesterday.

Citing provisions of BCDA’s charter, or Republic Act 7227, the SC ruled that inferior courts are prohibited from issuing temporary or preliminary orders that would unjustifiably stop the implementation of government projects but it may issue permanent injunctions after due consideration of the merits of a case.

The BCDA is in charge of managing the conversion of former United States military bases in the country to alternative productive use.

The agency has general supervision of the Subic Bay Free Port and Clark Special Economic Zone as well as the John Hay Station in Baguio City, Wallace Air Station in La Union, O’Donnel Transmitter Station and Capas Relay Station in Tarlac and the San Miguel Naval Communications Station in Zambales. It also manages the conversion of military facilities in Metro Manila.

The SC made the ruling in a decision penned by Associate Justice Presbiterio Velasco, a member of the SC Third Division which ordered the Parañaque City Regional Trial Court to immediately hear a case filed by a private landscaping firm whose contract was terminated by the BCDA.

“In the factual setting at bar, the Court rules that the Parañaque RTC has jurisdiction over the complaint of respondent [Elpidio] Uy [of Edison Development and Construction] it being a case in which the subject of litigation for permanent injunction against the termination of his contract, is incapable of pecuniary estimation,” the SC said.

But the high court said lower courts are prohibited by RA 7227 to issue temporary or preliminary restraining orders to prevent unjustified stoppage of the implementation of government projects.

“Thus, the Parañaque RTC has jurisdiction to hear Uy’s action and even grant his supplication for a permanent injunction. While the issuance of the assailed TRO evidently constitutes a blatant violation of Section 21 of RA 7227, and, hence, void,” the SC said.

The SC explained that RA 7227 prohibits courts from issuing preliminary injunctive writs or restraining orders against any project of the BCDA, such as the Heritage Park Project, in order not to hamper or disrupt the implementation of the projects for “conversion into alternative productive uses” of the military reservations and their extensions.

As mandated by RA 7227, then President Fidel Ramos issued Executive Order 40 in 1992, specifying the portions of Metro Manila military camps to be utilized to generate capital for the BCDA. In Fort Bonifacio, 96 hectares was set aside for the subject Heritage Park Project.

The BCDA then entered into an agreement with the Public Estates Authority, designating the latter as project manager.

On Sept. 9, 1994, the BCDA, PEA, and the Philippine National Bank executed a pool formation trust agreement, creating an asset pool to generate funds for the development of the project.

After the public bidding, the PEA entered into a landscaping and construction agreement with Uy’s company and received the required notice to proceed from PEA on Dec. 3, 1996.

But there were supposed delays in the construction and landscaping and the BCDA terminated the contract in 1999, prompting Uy to seek an injunction and damages with the Parañaque RTC.
By Rey E. Requejo - Manila Standard Today

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