Court junks bid to halt Carbon redevelopment

CEBU, Philippines — The Regional Trial Court (RTC) in Cebu City has denied a petition seeking to stop the redevelopment of the Carbon Market, rejecting a request for a writ of preliminary injunction and temporary restraining order against the Joint Venture Agreement (JVA) between the Cebu City government and Megawide Construction Corporation.

In a resolution dated April 23, 2026, Branch 16 Presiding Judge Dante R. Corminal ruled that the complainant failed to establish a clear legal right or show irreparable injury. The court stressed that injunctions are extraordinary remedies that cannot be granted on speculative claims or economic grievances that may be compensated by damages.

The case was filed by the Carbohanong Alyansa Alang sa Reporma ug Bahandianong Ogma sa mga Nanginabuhi (CARBON), which sought to nullify the JVA, arguing that it was ultra vires, void, and contrary to public policy.

The group warned of potential displacement of vendors, rising consumer costs, destruction of heritage sites, and the deprivation of urban poor communities of access to socialized housing.

It also raised concerns over unresolved land ownership issues, the alleged absence of permits from the Commission on Audit and the National Heritage Commission, and what it described as a lack of genuine public consultation.

Megawide, however, countered that the plaintiffs had no enforceable rights over the contract, as they were not parties to the agreement.

The company maintained that vendor relocation was being carried out lawfully, with interim facilities provided, and that no vendors had been forcibly removed without proper accommodation.

It further argued that the alleged injuries were economic in nature and therefore compensable, and that halting the project through an injunction would effectively preempt a full trial on the validity of the JVA.

The Carbon Market redevelopment project, initially valued at ?5.5 billion and later expanded to ?8 billion, covers seven to eight hectares in Barangay Ermita, including Freedom Park, Warwick Barracks, and reclaimed waterfront areas.

Under the 50-year concession, Megawide is granted extensive control over the redevelopment, subject to obligations for phased construction, vendor relocation, and corresponding amendments to city ordinances.

The court’s denial allows Megawide to proceed with the project, although the broader legal challenge remains pending.

The RTC has scheduled a pre-trial conference on June 24, 2026, where the validity of the JVA will be taken up.

For now, the ruling underscores judicial caution in issuing injunctions, emphasizing that such remedies are meant to preserve the status quo—not to resolve the merits of a case prematurely. (FREEMAN)