Negros Occ LGU files counter suit, seeks P50M damages vs SM Prime

BACOLOD CITY, Philippines — The Negros Occidental provincial government filed counter charges against SM Prime Holdings Inc. (SMPHI) at the Bacolod Regional Trial Court Branch 48, Thursday afternoon.

This was confirmed by Provincial Board Member Alain Gatuslao, who said the Capitol is seeking P50 million in moral and exemplary damages against the real estate firm, which earlier sought the nullification of the deed of conditional sale and the contract of lease between the provincial government and Ayala Land Inc. involving the 7.7-hectare prime property.

In the 62-page joint answer with counterclaim, a copy of which was obtained by The Freeman, the provincial government asked the court to dismiss the SMPHI’s complaint “for willful and deliberate forum shopping, ... and utter lack of merit.”

The defendants in the SMPHI complaint are Negros Occidental Governor Alfredo Marañon Jr., as chairman of the committee on awards and disposal; Provincial Assistant Legal Officer Mary Ann Manayon Lamis; Provincial Treasurer Nilda Generoso; Provincial Bids and Awards Committee head Lucille Pines; consultant Merlita Caelian; Provincial Administrator Enrique Pinongan; Provincial Engineer Ernie Mapa; and the PB members.

According to the defendants, the Capitol will be getting a total of P750,033,500 from defendant ALI on the deed of conditional sale and P2,754,890,697 as rental fee for 50 years, which ALI will pay to the provincial government based on the lease contract.

“Defendant province intends to utilize the proceeds of the sale and lease with defendant ALI which total to more than P3.5 billion for its various development projects for the benefit of its constituents,” court records showed.

The defendants also said the SMPHI case against them has “caused unnecessary delay in the implementation of its development projects and programs to the greater prejudice of the public,” and that its causes of action “are without legal and factual basis.”

Earlier, the Land Registration Authority had rejected the affidavit of adverse claim filed by SMPHI on the 39 lots of the provincial government, which were covered by the deed of sale and the contract of lease between the Capitol and ALI.

Further, RTC-Branch 50 Judge Estefanio Libutan Jr. had junked the petition for certiorari filed by SMPHI against the provincial government for lack of merit.

The court ruled that there was no evidence to prove that the defendants gravely abused their discretion when the Capitol declared the second bidding on July 7, 2011 a failure. The SMPHI contested the bid awarded to ALI, as they accused the Capitol of being biased in the transaction. (FREEMAN)