Tuesday, December 30, 2008 City's right over Rillera building upheld
THE Baguio City Government received another significant Christmas gift from the Court of Appeals (CA) when it upheld the local government's rights over the grimy yet hotly contested Rillera building at the city market.
CA Associate Justice Monina Arevalo-Zenarosa also dismissed the appeal filed by the Hilltop Market Fish Vendors' Association (HMFVA).
Concurring with Zenarosa's November 27, 2008 decision were Associate Justices Regalado Maambong and Ramon Garcia; which notice of judgment was received by the City Legal Office on December 12.
Upholding the appealed decision of Regional Trial Court (RTC) Branch 3, the 15th Division of the CA said: "There was a perfected agreement between HMFVA and the City Government whereby the former would occupy (Rillera building) for an annual rental of P25,000."
The CA added that although a clause in the 1974 contract provided annual lease payment commences upon issuance by the City Engineer's Office of a "certificate of full occupancy," such did not determine perfection of the contract.
"The fact that (HMFVA) occupied Rillera building and conducted business, even without said certificate, clearly indicates the parties contemplated the contract of lease a perfected contract; and its perfection is not subject to any condition," the court said.
As the city never raised any questions when HMFVA occupied the property for business purposes, it said HMFVA cannot now question non-issuance of said certificate by reason that it already benefited from use of the said building.
Further, the CA citing the decision of the lower court said: "Uncontroverted finding were made by the Baguio Health Department and the City Engineer's Office declaring Rillera building unsanitary and unfit for occupancy due to the damage wrought to the structure by the July 16, 1990 earthquake."
On March 7, 2005, former mayor Braulio Yaranon issued Administrative Order 30-2005, seeking government takeover of the property after reports the same was used for illegal gambling and was unsanitary.
HMFVA, led by one Ester Brillantes, then filed a complaint praying for injunctive relief before RTC Branch 3, alleging the lease contract it had with the government never commenced for failure of the latter to issue the required occupancy certificate.
As early as 1980, the City Council already issued a resolution moving to rescind the city's contract with HMFVA for the latter's failure to construct the building it was supposed to construct under the contract.
The CA said HMFVA should have negotiated with the City Government for extension of lease, but it did not. Thus, the contract expired on June 22, 1999, without any extension, the CA added. (Isagani Liporada)
