Thursday, July 06, 2006
High court upholds province's ownership of sequestered hotel
THE Supreme Court (SC) has declared the province of Bataan as the rightful owner of Piazza Hotel, a sequestered hotel located at the Bataan Export Processing Zone, and dismissed the claim of ownership by petitioner Programme Incorporated over the property.
In a decision penned by Associate Justice Renato Corona, the SC Second Division affirmed the rulings of both the Court of Appeals (CA) and the Balanga Regional Trial Court (RTC) finding that the Provincial Government was able to establish its ownership over the hotel and the land on which it stands on.
"The petitioner's assertion that Piazza Hotel was constructed 'at its expense' found no support in the records. Neither did any document or testimony prove this claim. At best, what was confirmed was that petitioner managed and operated the hotel. There was no evidence that petitioner was the one which spent for the construction or renovation of the property," the SC ruled.
"Since this petition was clearly without legal and factual basis, petitioner's counsel should not have even filed this appeal. It is obvious that the intention was merely to delay the disposition of the case," it added.
The contested Piazza Hotel and Mariveles Lodge, both located in Mariveles, Bataan were originally owned by the Bataan Shipyard and Engineering Co., Inc (Baseco).
But the high court said Programme Inc. was doubtlessly just a lessee, noting the lease contract annexed to the complaint, wherein the petitioner in fact admitted Baseco's ownership then of the disputed property.
Records showed that on May 14, 1986, Baseco granted Programme Inc. a contract of lease over Piazza Hotel at a monthly rental of P6,500 for three years subject to renewal by mutual agreement of the parties.
After the expiration of the three-year lease period, the petitioner was allowed to continue operating the hotel on monthly extensions of the lease.
In April 1989 however, the Presidential Commission on Good Government (PCGG) sequested Baseco and among the properties seized was the lot on which Piazza Hotel stood.
On July 19, 1989, Piazza Hotel was sold at a public auction for non-payment of taxes to the province of Bataan. Thereafter, the title of the property was transferred to the province.
A few days later, the petitioner filed a complaint for collection of money against Baseco but the Bataan Provincial Government, as the new owner of the property, intervened on Nov. 22, 1990, and asked the RTC Branch 5 in Balanga, Bataan to order Programme Inc. to vacate Piazza Hotel and Mariveles Lodge for lack of legal interest.
On Feb. 3, 1995, after trial on the merits, the RTC ruled in favor of Bataan Provincial Government, which was subsequently affirmed by the CA. (ECV/Sunnex)
(July 6, 2006 issue)
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