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Wednesday, January 11, 2006
Sugarland Hotel wins civil case
By Erwin Ambo S. Delilan
THE long wait is over.
After 11 years, the Yusay family, owners of the Sugarland Hotel Corporation in Bacolod City won their case against the City Government of Bacolod, Provincial Government of Negros Occidental, Department of Transportation and Communication (DOTC) and Air Transportation Office (ATO).
The case involves the "controversial" demolition of the fourth floor of the Sugarland Hotel at Barangay Singcang-Airport in Bacolod in 1994.
The hotel's "extra" floor was formerly declared to be a "hazard to aerial travel."
Judge Ramon D. Delariarte of Bacolod City Regional Trial Court Branch 49 rendered the decision on the civil case in favor of Sugarland.
In his 21-page decision dated Dec. 28, 2005, Delariarte ordered the defendants to pay Sugarland P4 million and P3.6 million, plus interest of 12 percent per annum computed from May 25, 1994.
The total amount represents the value of the demolished fourth floor of the Sugarland Hotel as appraised by the United Architects' Guild of the Philippines-Bacolod City Chapter.
The judge also ordered all defendants, jointly and severally, to pay Sugarland P12 million as and by way of unearned profits for the period that it has stopped operations due to the demolition; P2 million for the moral and exemplary damages and P600,000 for the plaintiff's attorney's fee.
Meanwhile, on the cross-claim, defendants DOTC and ATO, the judge also ordered them to reimburse defendants--the City of Bacolod and the Province of Negros Occidental--the amounts of P4 million and P3.6 million, respectively.
Lawyer Jose Ma. Valencia, Capitol's chief of staff, however, said, "We found ground to appeal the decision."
"Why should the Province pay? That's too excessive as far as the province is concerned," he stressed. He said they will file an appeal after they review the decision thoroughly.
He also added, "As far as I believe, the demolition of the 4th floor of Sugarland Hotel was merely an act of the City Engineer's Office (CEO) and ATO in exercise of their authority, so why should the Province be held liable?"
On the leakages caused by the demolition, the Province has nothing to do with the damage, said Valencia, adding that the Province never conspired with anyone in this case.
City Legal Officer Allan Zamora, for his part, said, "Definitely, if there is monetary award, we will appeal the case."
Lawyer Gleceria Caduhada, Zamora's assistant, is handling the case.
He said they haven't received yet any copy of Delariarte's decision as of press time.
The hotel's current general manager, Augusto "Toots" Sison, refused to comment on the decision Tuesday.
He said only their legal counsel Reynaldo Bagatsing from Manila could give the best reaction on the matter.
The case stemmed when the late captain Panfilo Villaruel Jr., ATO chief, ordered the closure of Bacolod airport on May 13, 1994.
Such order caused public outcry from all quarters because commerce in Bacolod and Negros Occidental came to a standstill.
On the same date, a conference was held at the L'Fisher Hotel which was attended by all concerned sectors.
There, a memorandum of understanding (MOU) was executed and signed by Villaruel, former mayor Alfredo Montelibano Jr., representing Bacolod City, and then Negros Occidental vice governor Romeo Gamboa, who was acting governor at the time.
Sugarland Hotel was represented by its owner Mr. Felix Yusay Sr.
The witnesses included former presidential adviser Daniel "Bitay" Lacson and then congressman Manuel H. Puey of the 2nd District.
At the MOU, Yusay committed to demolish the fourth floor of his hotel if found necessary.
On the other hand, the City of Bacolod and Province of Negros Occidental bound themselves to share in the demolition cost and expenses. Their respective legislature had also appropriated amounts for the purpose.
The Provincial Board approved the P5 million for share but later it was trimmed down to only P3.6 million, while the City Council also appropriated P4 million.
Also in the MOU, an independent body known as the "Bacolod Airport Task Force" was created composed of representatives from different sectors of the community.
Architect turned vice mayor of Bacolod Ramiro "Chick" Garcia acted as chairman, while Rolando Dizon of the University of St. La Salle-Bacolod, Job Lamela of the Philippine Airlines-Bacolod, Ricardo Eguna of ATO-Bacolod, Jose Vargas, then executive assistant of the Province, and Mr. Oscar Bascon, representing the business sector were the members.
The task force's main role is to supervise the demolition job and discharge functions consistent with the MOU.
However, the implementation of the MOU allegedly went wrong and the parties started pointed accusing fingers at each other.
Sugarland Hotel denounced that contrary to what the MOU provides, it was excluded in the two surveys of the hotel premises.
Worse, instead of providing fund-assistance, the City came out with a resolution declaring the hotel a nuisance and authorized the demolition work.
Thus, it appeared that the City and Province adopted the position of DOTC and ATO declaring the Sugarland Hotel as an obstruction in the operation of the Bacolod airport on basis of the provisions of the International Civil Aviation Organization.
At this point, Sugarland, which had gone to the conference table and signed the MOU in "good faith" felt betrayed by the other participants/signatories.
This prompted the Yusays to go to court.
The case was considered an "inherited one" as three judges had already presided over the proceedings.
(January 11, 2006 issue)
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