Megawide asks SC to junk Tomas’ case on Carbon project

CEBU, Philippines — Megawide Construction Corp. and its subsidiary Cebu2World Development Inc. (C2W), proponents of the Carbon Market redevelopment project, are asking the Supreme Court to dismiss Vice Mayor Tomas Osmeña's petition seeking to nullify the project, arguing that substantially similar issues are already being litigated in another pending case.

In a comment filed before the Supreme Court's Second Division, Megawide, C2W and company executive Louie Ferrer urged the high tribunal to affirm the Nov. 10, 2025 decision of Regional Trial Court (RTC) Branch 58 in Cebu City, which dismissed Osmeña's challenge because of another pending case involving substantially similar issues and reliefs.

The respondents also asked the Supreme Court to deny Osmeña's application for a permanent injunction that would stop the implementation of the redevelopment project.

The comment was filed in response to a July 14, 2026 resolution directing the respondents to answer Osmeña's Petition for Review on Certiorari and his application for injunctive relief.

Megawide said it received the resolution on Sept. 21, 2026 and subsequently sought a 30-day extension, or until Oct. 31, 2026, to submit its comment.

The dispute centers on a Joint Venture Agreement (JVA) between the Cebu City Government and Megawide for the redevelopment of Carbon Market and nearby areas.

Osmeña first challenged the project in December 2022, questioning the legality and constitutionality of the JVA. He alleged violations of Cebu City Ordinance No. 2154, irregularities in the approval and execution of the agreement, and the city's lack of authority over some properties covered by the project.

Megawide said Osmeña's original petition was dismissed in January 2023 because it was unsigned. The court subsequently allowed him to file an amended petition in June 2023, allowing proceedings to resume.

RTC Branch 58 denied his application for a preliminary injunction in July 2024 before dismissing the case in November 2025 on procedural grounds.

Megawide argued that Osmeña's petition was not the first legal challenge to the redevelopment.

In August 2021, market vendors, vendors' associations, urban poor organizations and taxpayers filed a separate case before RTC Branch 16 in Cebu City.

Referred to in court records as the "CARBON Case," the lawsuit seeks, among other reliefs, the nullification of the JVA. It also questions the legality of the redevelopment, Megawide's selection as joint venture partner, the city's authority over properties covered by the project and the alleged displacement of vendors.

Megawide said the case remains pending.

The company maintained that the two cases seek to invalidate the same agreement and raise substantially similar questions, including alleged violations of Ordinance No. 2154, irregularities in the selection process and the city's authority over portions of the project site.

Allowing both cases to proceed simultaneously, it argued, could result in conflicting court rulings involving the same redevelopment project.

Megawide also informed the Supreme Court of a third lawsuit filed in 2025 by Vivian T. Ando and other plaintiffs before RTC Branch 18.

According to the company, the case seeks to invalidate zoning and land-use measures affecting areas covered by the redevelopment and challenges Cebu City Council resolutions related to the project.

Court records trace the Carbon redevelopment to an unsolicited proposal submitted by Megawide to the city government on Oct. 11, 2019, for the rehabilitation and redevelopment of Carbon Market and adjoining areas.

The proposal underwent evaluation by the city's Joint Venture Selection Committee and Technical Working Group before proceeding to negotiations and a competitive challenge process.

The Cebu City Council later approved Resolution No. 15-1120-2021, authorizing then Mayor Edgardo C. Labella to sign the JVA on behalf of the city government.

The agreement was executed on Jan. 11, 2021, followed by a supplemental memorandum of agreement on July 31, 2022.

In defending the project, Megawide argued that the JVA was entered into in accordance with the Local Government Code and Cebu City Ordinance No. 2154, underwent the required procedures for unsolicited proposals and was lawfully approved by city officials.

The company also rejected allegations that the redevelopment violated laws governing public-private partnerships, cultural heritage, competition and public consultation. — (FREEMAN)