Court upholds annulment of MRT, Trackworks contract

MANILA, Philippines - A Makati court has recognized the annulment of the advertising contract between MRT Development Corp. and Trackworks Rail Transit Advertising, Vending and Promotions Inc. due to the latter’s non-payment and gross violation of its contractual obligation.

The Makati City Regional Trial Court recently released its court ruling denying outdoor advertising firm Trackworks a writ of preliminary injunction in relation to the cancellation of its contract with MRT Devco.

The court found out that the right of Trackworks, which is run by Joselito P. De Joya, along with its officers Bing Kimpo and comptroller Noemi Bugia, is not clear and unmistakable and hence, there cannot be anymore an urgent and paramount necessity for the writ to be issued.

The court said Trackworks failed to establish the general requisites for injunction, specifically that there must be an existence of a clear right and the act against which the injunction is to be directed is a violation of such right.

“Trackworks has definitely lost their contract with us when they refused to honor it,” said Rommel C. Gavieta, MRT Group of Companies vice-president for project development and management. “They have not paid their concession fees or rent for the past years and this is in gross violation of their contract with MRT Devco.”

This is not the first time Trackworks lost in its court battle as the Pasig City Regional Trial Court, for the third time, denied its previous requests for an urgent motion for issuance of status quo and/or cease and desist order, which aimed to stop MRT Devco from terminating Trackworks or appoint another party as the new concessionaire.

Trackworks even asked the court to order MRT Devco not to terminate the concession and to give Trackworks discounts, which were not provided for in the contract.

It may be recalled that MRT Devco entered into an agreement with Trackworks on Oct. 27, 1998, where MRT Devco appointed the company as its concessionaire to undertake the development and sale of advertising spaces and activities for a specific period.

This agreement was renewed up to Dec. 31, 2015, provided that Trackworks complied with all of its obligations under the agreement. However, Trackworks failed to comply and has incurred P367 million in payables to MRT Devco as of December 2009.