Monday, July 14, 2008
Owners refuse to waive interest
By Linette C. Ramos
Sun.Star Staff Reporter
THE heirs of Matilde S. Palicte rejected the Cebu City Government’s proposal to waive P6.2 million in interest on the unpaid expropriated lot used for an urban poor housing project.
The City Attorney’s Office is now studying two different counter-proposals from the two factions of the Palicte heirs, and assured that the City is willing to pay.
City Hall lawyer Joseph Bernaldez said he is optimistic the City can reach an agreement with the families, saying that their counter-offer is reasonable.
Through their legal counsel Remegio Torres, seven of Palicte’s heirs are collecting the principal amount of P14,093,335 that should be paid upon the signing of a compromise agreement with the City.
They also did not agree to waive the P6,214,542.80 interest, as requested by the City. Instead, they want the amount paid within two years, in equal monthly payments of P258,939.80 per post-dated check.
“After conferring with one another, they are one in agreement that they would settle for no less than these terms,” their proposal read.
Two other heirs informed the City through their lawyer of their counter-offer and said they will only be collecting P18 million.
Last week, Regional Trial Court Judge Geraldine Faith Econg denied the City’s motion to defer the implementation of the order for the garnishment of the City’s bank deposits, which will be used to pay for the Palicte heirs’ claims.
“The decision on that motion will have no bearing on our negotiations for a compromise. In fact, it will result to a settlement. More so now that they have presented counter-proposals, which I think are reasonable. But we still have to study both offers,” Bernaldez told Sun.Star Cebu.
He also said they are preparing to file a motion to consign with the court the money covered by the order for garnishment, pending the decision of the Supreme Court on the case filed by the Estate of Don Felimon Sotto, who also claims to own the property.
“To me, there is no reason for the Palictes to worry that their claims will not be satisfied because the money will stay with the court. It’s up to the court to decide to whom the money will be released,” added Bernaldez.
The Palictes’ 5,295-square-meter property in Barangay Capitol Site was expropriated in 2001 for the City’s on-site development project for urban poor families occupying the lot.
That City bought the property for P23,782,500, or P4,500 per square meter, as set by the court’s appraisal committee.
A partial payment of P725,881 was made in May 2002 and when the City failed to pay the balance in full, the court issued a garnishment order. A year later, the bank seized P8,963,284 from the City’s bank account.
No other payment was made since 2003 so that the balance of P14,093,335 ballooned to P20,307,542.80 because of interest. (LCR)
For Bisaya stories from Cebu. Click here. (July 14, 2008 issue)
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