CA to lower court: Proceed with trial vs Cebu City gov't

CEBU, Philippines - The Court of Appeals (CA) has ordered the Regional Trial Court to proceed with the trial of the civil case for damages filed against the Cebu City Government over an alleged breach of contract.

Associate Justice Ramon Paul Hernando reversed and set aside the RTC decision, which said that Cebu City violated the terms and condition of the contract entered into by a lot owners Vicente del Rosario and Pantaleon del Rosario.

In a 10-page decision, Hernando said the civil case should not be decided by a summary judgment.

“Summary judgment is not warranted when there are genuine issues which call for a full blown trial,” Hernando said.

“The party who moves for summary judgment has the burden of demonstrating clearly the absence of any genuine issue of fact, or that the issue posed in the complainant is patently unsubstantial so as not to constitute a genuine issue for trial,” he added.

Hernando said a full-blown trial on the merits and presentation of evidence is necessary.

“Since the appellee’s allegations are contested by the appellant, it is incorrect to hastily conclude that there are no real or genuine issues or questions of facts in this case,” the decision reads.

Earlier, the City of Cebu asked CA to reverse the decision of RTC Branch 5 dated May 28, 2004 on the case for specific performance, rescission of contract with writ of preliminary injunction and damages filed by Vicente del Rosario.

In 1985, the National Meat Inspection Commission found out that the Cebu City Abattoir in Barangay Lorega was “obsolete and unsanitary.”

Alarmed of a possible cholera outbreak, the city government hired experts to study and look for an appropriate location for a new abattoir.

“It was the properties owned by plaintiff-appellee Vicente del Rosario and his grandfather, the late Vicente del Rosario, that were recommended for the relocation site of the abattoir,” the city said.

On August 23, 1985, the Del Rosarios and City of Cebu entered into a contract to buy and sell the property.

The agreement reflected that the City of Cebu may immediately take possession and exercise the absolute control over the said properties pending the delivery of the clean titles. The City of Cebu then began the construction of the abattoir.

However, when President Corazon Aquino assumed, she appointed John Osmeña as Mayor of Cebu City.

“The OIC Mayor ordered the stoppage of the abattoir construction project. Attempts were made to settle the matter but proved futile,” the City of Cebu said.

On May 28, 2004, the trial court found that a summary judgment may be rendered in the case as there was no genuine issue raised by the City Government.

“The trial court then rendered judgment in favor of the appelle and granted the rescission of the Contract to Buy and Sell ratiocinating that the appelle had complied with all the stipulations in the contract but the appellant unilaterally decided to stop the construction of the abattoir, in violation of the terms of said contact,” the order reads.

The City Government filed a motion for reconsideration but it was denied by the court.

Hernando ruled that before a summary judgment, the trial court must first establish the absence of genuine factual issue.  (FREEMAN)