SC bars court from hearing PEZA cases against GMC

The Supreme Court barred a local court from conducting further proceedings on two ejectment cases filed by the Philippine Economic Zone Authority against the Lapu-Lapu City-based General Milling Corporation.

The High Court restrained Municipal Trial Court in Cities Judge Ester M. Veloso from conducting further trials of the two cases when it granted the motion filed by the Office of the Solicitor General, which is representing the PEZA.

A report published in the Supreme Court's website said it issued a temporary restraining order when it reconsidered its earlier decision that upheld the Court of Appeal's ruling dismissing the complaint filed by PEZA for eminent domain.

The Supreme Court reconsidered its decision, pointing out that the Regional Trial Court Branch 54 in Lapu-Lapu City had already issued a writ of execution directing PEZA to pay a P300,000 rental fee starting December 1993 while RTC Branch 27 also in Lapu-Lapu City has issued a notice of garnishment against PEZA for P2.2 billion.

The case stemmed from a complaint for expropriation filed by Export Processing Zone Authority against GMC on September 17, 1980 over a lot that the former sought to develop into an economic zone. Another expropriation case was filed against GMC for another lot in barangay Mactan.

But the GMC filed separate motions to dismiss the complaints on the ground that EPZA and PEZA have failed to develop the lot before the company acquired it.

The courts then granted the separate motions filed by the GMC, and it became final and executory when the government lawyers failed to file motions for reconsideration within the reglementary period.

The PEZA then elevated the case to the Court of Appeals, but the appellate court has rejected the appeal. -Rene U. Borromeo