SC orders RTC to execute decision on Ortigas developers’ dispute

By Benjamin Pulta

December 27, 2021, 2:21 pm

<p>Supreme Court <em>(File photo)</em></p>

Supreme Court (File photo)

MANILA – The Supreme Court (SC) has directed the Pasig Regional Trial Court (RTC) Branch 70 to proceed with the enforcement of a judgment in connection with a 2005 damage suit between developers in Ortigas.

The SC Second Division, in a 13-page decision uploaded on December 14, reversed the Court of Appeals (CA) and directed the Pasig RTC to examine officers of Meridien Far East Properties, Inc. (MFEPI) that will satisfy the judgment rendered in favor of Linden Suits Inc. (LSI).

LSI sued MFEPI as the latter’s One Magnificent Mile encroached on its property, Linden Suites.

MFEPI removed the wall in question but did not finish the work, leaving LSI to hire a contractor to complete the demolition.

LSI then demanded PHP3.9 million from MFEPI that prompted the court case, filed in 2002.

The Pasig RTC found MFEPI liable in 2005, a ruling subsequently upheld by the CA and the SC.

In 2009, the RTC issued a writ of execution in favor of LSI to enforce the judgment but it was returned unserved as the registered address belonged to Meridien East Realty and Development Corp, (MERDC), not MFEPI.

LSI pointed out that in documents submitted to the Securities and Exchanges Commission, MFEPI and MERDC had the same set of officers, same shareholders, and similar addresses.

LSI then asked that the officers of Meridien appear before the court for an examination of the income and properties owned by MFEPI to satisfy the judgment but the RTC turned it down, saying MFEPI is a juridical entity separate from the officers and that its principal business address is in Makati City which is not within Pasig’s jurisdiction.

Ruling otherwise, the SC said it is the Pasig court that rendered the judgment against MFEPI and it “has supervisory control over the execution of its judgment”.

The SC added that the RTC “should have issued auxiliary writs and employed processes and other means necessary to execute its final judgment” and likewise conducted an examination of MFEPI and its officers “so as to disclose the properties which can be subjected to execution”. (PNA)

 

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