Monday, August 13, 2018

CA affirms ruling barring MRTDC from exercising ad space rights

The Court of Appeals (CA) has affirmed an earlier ruling barring the Metro Rail Transit Development Corporation (MRTDC) from exercising advertising and commercial leasing rights at the MRT-3 system pending arbitration proceedings over its failure to remit P2.47-billion in development rights payment (DRP) to government.

In a two-page resolution penned by Associate Justice Pablito Perez, the appellate court’s Eleventh Division junked MRTDC’s motion for reconsideration of its March 5 decision for failure to raise new arguments to warrant a reversal of the ruling.

“[T]the respondent’s claims have been judiciously passed upon in our decision, and we find no compelling reason to undertake a second review of the same issues,” the CA said.

The assailed decision lifted the writ of preliminary injunction (WPI) issued by the Pasig Regional Trial Court (RTC) that stopped the Department of Transportation and Communications (DOTC) from implementing its order refusing MRTDC access or work permits at the train system.

The issue involves advertising and lease income at the MRT 3 system as provided in the 1997 build-lease-transfer (BLT) agreement involving the construction and operation of the train system.

The DOTC warned it will terminate the BLT agreement following MRTDC’s alleged failure to make the necessary payments since July 2004, prompting MRTDC to file before the Pasig RTC a petition for interim measure protection (IMP).

MRTDC argued that DOTC’s refusal to issue access and work permits unlawfully hampered its exercise of its commercial leasing rights. MRTDC further sait it was freed from its liability to make DRPs since the BLT agreement automatically forfeited its rights in the DOTC’s favor because the airspace above the train stations were undeveloped by project completion date.

In reversing the RTC, the appellate court ruled that the lower court gravely abused its discretion in issuing a WPI in favor of MRTDC.

http://news.abs-cbn.com/news/08/13/18/ca-affirms-ruling-barring-mrtdc-from-exercising-ad-space-rights