Saturday, July 12, 2008 City market case ends By Rimaliza Opiña
DEVELOPMENT of the city market can start as the 12-year-old case that practically prevented any improvement in the area was resolved by the court.
"As we understand it, development can start anytime," said Ceasar Oracion, lawyer for Uniwide Sales Realty and Resources Corporation, the winning bidder for the market's development.
With the dissolution of the writs of preliminary injunction, the declaration of the validity of the ordinance that paved the way for the market's development, the declaration of the validity of the develop-build-lease (DBL) agreement, the declaration that the damages sought by a group of vendors that sued the City Government lacked merit and the subsequent dismissal of the cases filed by the same group of vendors, Oracion said there is no legal impediment to deter construction.
Ruling
A portion of the judgment issued last Wednesday by Branch 59 Presiding Judge Iluminada Cabato, however, advised the City Government to determine if Uniwide still has the capacity to develop the market.
"Incidentally, a piece of evidence shows that Uniwide is under rehabilitation. With their financial standing, the court wonders how it can comply with its agreement. That is for the city to verify and determine," stated a portion of the ruling.
Also included in the document is a detailed account of events that transpired and the pleadings filed in all of the courts that first handled the case, until this reached Cabato's sala.
In 1996, the Baguio Market Vendors Association, Inc. (Bamarva), Hilltop Open Market Vendors Credit Cooperative, (Homvecsco) and Lilia Calicdan opposed the entry of a private developer resulting in their filing of petitions for the annulment of Ordinance 38-1995, the ordinance that contained the guidelines for the development of the market, the nullification of the contract, as well as the DBL agreement.
A writ of preliminary injunction was issued in favor of the vendors.
Last Wednesday, the court however upheld the validity of Ordinance 38. "This court resolves to uphold the validity of Ordinance 38-1995. It is settled in this jurisdiction that laws including ordinances enjoy the presumption of constitutionality."
The court also said the petitioners failed to show basis that the terms and conditions of the contract are disadvantageous to the city of Baguio.
"The DBL agreement is valid. The plaintiffs are not real-parties-in-interest. They have no legal interest in these cases," the court said.
No lease contracts were presented and the petitioners' names were not included in the master list of stallholders, the court noted. "The consistent rulings of the courts are that a person who occupies a land of another at the latter's tolerance or permission, without any contract between them is necessarily bound by an implied promise that he will vacate upon demand. Tolerance is not the surest footing on which a right can be established."
The court also denied petitioners' claim for damages. "The plaintiffs have merely general grievances and incidental interests. They will not sustain any direct injury as a result of the City Government's act in the implementation of the development of the city market."
The court also reprimanded the petitioners regarding their claim that no public consultation was done prior to the planned development.
"Plaintiffs were less than honest in claiming that there were no consultations. This is belied by their own evidence (for) there were several meetings conducted by the City Council for the purpose and they even participated in the planning stage," it said.
The court also said while Homvecsco as a cooperative has a right in managing public markets, this right does not include the construction of buildings.
Not bankrupt
Oracion meanwhile denied reports that Uniwide filed for insolvency. Contrary to reports, he said his client has recently tied up with a foreign firm, which will infuse investments in the company.
The group of vendors that sued Uniwide and the City Government has yet to discuss their next move.
Affected vendors
Raynaldo Agranzamendez, lawyer for Bamarva, said his clients have been informed of the decision and are scheduled to meet on Saturday to discuss their next move.
The lawyer of the defunct Homvecsco and Lilia Calicdan, Thomas Tayengco, said they will file a motion for reconsideration. He said they have yet to receive a copy of the judgment.
While city officials have considered the decision as something that could bring about a major facelift not only for the market but for Baguio City as a whole, some market vendors took the news as something that would spell their displacement from the market.
"We might be ordered to leave," a shellfish vendor said.
Despite promise that they will be given priority once the market building is built, vendors are convinced that they be will be eased out if a private developer like Uniwide finally takes over the management of the market.
Other vendors, on the other hand, have accepted the court's decision, but prefer that development be done by the City Government, not by a private developer.
The project costs P1.729 billion and the contract is for 30 years.
Asked if Uniwide will ask for an amendment of Ordinance 38-1995, the ordinance that contained the guidelines for the development of the market and the contract, Oracion declined to comment saying his clients have yet to discuss the recently issued judgment.
In Ordinance 38, development includes installation of an open-air steel structure covering 2,500 square meters at the slaughterhouse area to accommodate fruit and vegetable vendors who are situated at the market's hangar section; a multi-level wet and dry market covering 1,515 square meters to accommodate fish, meat, vegetable and other dry goods at Zandueta street; and a commercial center at the main market covering an approximate area of 27,000 square meters.
After reaching 10 years, the case went through mediation. All parties, however, failed to come up with a common agreement, which also prolonged the case, Oracion recalled.
