SM Prime Holdings Inc. sues Cebu City anew

THE country’s largest mall operator has filed a civil petition in court in a bid to compel the Cebu City Government to renew the business permits of 16 establishments inside the mall.

SM Prime Holdings Inc. (SMPHI), the parent company of SM Group’s shopping malls, and its subsidiaries filed the petition against Mayor Tomas Osmeña before the Regional Trial Court (RTC).

The petitioners asked the court to issue a temporary restraining order and a writ of certiorari to set aside Osmeña’s letter denying the renewal of SM Seaside’s 16 tenants for allegedly failing to submit their 2016 business permits applications.

“Without the benefit of injunctive relief to preserve the status quo between the parties, the closure of SM Seaside will cause damage that will prove to be immeasurable,” the petition read.

SMPHI’s latest petition came after RTC Branch 9 Judge Alexander Acosta dismissed the petition of the mall, which sought to compel the City Government to renew its business permits and that of its tenants.

Last March 7, SMPHI filed the petition for mandamus and prohibition against Osmeña, City Treasurer Tessie Camarillo and City Engineer Josefa Ylanan.

SMPHI’s subsidiary Shopping Center and Management Corp. (SCMC) and SM Lifestyle Entertainment Inc., its educational, sports, and recreational arm, also joined in the petition.

The petitioners, through the Accra Law Firm, seek the issuance of a 72-hour temporary restraining order, preliminary injunction and status quo ante.

In his order, Judge Acosta ruled that SM’s petition was moot since the mayor already acted on their business permits.

In his letter, dated Nov. 14, Osmeña informed SMPHI on the approval of the three business permit applications of its three affiliates.

However, the mayor denied the business permit applications of 16 other businesses inside SM Seaside for allegedly failing failure to submit their 2016 business permits, which are required for the renewal.

In the latest petition, SMPHI argued that Osmeña “acted with grave abuse of discretion” by disregarding the Cebu City’s Citizen Charter when he allowed the submission of joint inspection report in lieu of the 2016 business permits.

The petitioner said the mayor acted with grave abuse of discretion by violating the mall’s right to due process.

“The petitioner has a clear and unmistakable right to operate a business free from oppression and discrimination,” the petition read.

When sought for comment, City Attorney Joseph Bernaldez said the allegations in the new case that SMPHI filed are similar to the ones in the old case that the court dismissed earlier this month.

“Practically, it’s the same facts and circumstances. We will just answer that,” he told SunStar Cebu.

Bernaldez said that in the new case, SMPHI is questioning the propriety of the denial of the business permit applications.

City lawyer Carlo Vincent Gimena, who handles the case, said appropriate motions will be filed by the City Legal Office on the new case that SMPHI filed. (With RVC)

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