A COURT has partially granted an urgent motion filed by condominium unit owners in Mandaue City, mandating the reconnection of water services allegedly cut off due to non-payment of condominium dues.
The Cebu City Regional Trial Court (RTC) Branch 11 issued its order on Dec. 26, 2024, after prolonged legal battles between the plaintiffs, a group of unit owners led by Earl Jay Retuya, and the defendants, including Urban Homes-Tipolo Condominium Corp. (UHTCC), its officers, and associated entities.
Retuya and his fellow plaintiffs filed a civil case seeking the revocation or annulment of contracts and resolutions, and an inspection of funds, accusing UHTCC and its officers of using intimidation tactics, such as cutting off water services, to force payment of condominium dues.
The plaintiffs argued that UHTCC’s incorporators were neither residents nor unit owners at the time of its registration with the Securities and Exchange Commission (SEC) in 2013, which they claimed deprived actual unit owners of their governance rights under the articles of incorporation.
Following the UHTCC’s registration, the incorporators imposed monthly dues, with the collection later handled by 8990 Housing Development Corp., and water dues managed by BP Waterworks Inc. from 2015.
The plaintiffs said BP Waterworks increased water rates without proper agreements.
Violation
Central to their grievances was the disconnection of water services, which the plaintiffs argued violated the master deed that only allowed liens on property for unpaid dues, not the termination of essential services.
The plaintiffs also accused the defendants of failing to call meetings or hold elections, further alienating unit owners from decision-making processes. They requested a temporary restraining order and preliminary injunction to halt these actions and restore water services.
Counter-argument
UHTCC and its fellow defendants argued the case should fall under the jurisdiction of the Housing and Land Use Regulatory Board (HLURB) rather than the courts, labeling the lawsuit a nuisance suit. They claimed the plaintiffs did not represent the majority of unit owners and cited procedural violations, including outdated compliance certificates.
BP Waterworks distanced itself from the disconnection, asserting it had no involvement or knowledge of the disconnection orders, emphasizing that other parties acted independently.
Court’s stance
The court found it had jurisdiction over the intra-corporate dispute and concluded that the master deed and by-laws did not authorize disconnection of water services for unpaid dues. It ordered the immediate reconnection of water services, deeming the disconnections unauthorized and unjustified.
The RTC Branch 11 emphasized the importance of access to essential services like water during legal disputes.
In a previous interview with SunStar Cebu, UHTCC owner Deca Homes, through its management representative Kimberly Teleron, stated that they are fully committed to complying with the court order. (CAV)