SC upholds Uniwide ejection from Ng property

MANILA, Philippines–The Supreme Court has issued the final order upholding the ejection of debt-strapped Uniwide Holdings Inc. from the Coastal Mall property in Parañaque, resolving years of legal battle with the land owner, Manila Bay Development Corp. (MBDC) of the group of businessman Jacinto Ng.

On March 4, the Supreme Court issued an “entry of judgment” stating that the ejection of Uniwide has “become final and executory.”

This means that the earlier decision of the Court of Appeals and the Metropolitan Trial Court ordering Uniwide to vacate the property had become final and executory after being recorded in the book of entries of judgment.

In 1993, MBDC leased to businessman Jimmy Gow a portion of the property fronting the road at the central business park reclamation area in Parañaque. The contract was later amended to reduce to 10 hectares the area leased to Gow, who assigned his rights and interests to Uniwide, based on court documents.

Beginning April 2005, Uniwide started to default in the payment of monthly rentals. Gow requested a reduction in rental rate and a temporary suspension of interest charges on installment payments, claiming sales dropped due to the poor economic climate and the inaccessibility of the coastal mall’s location to motorists and the riding public.

According to documents, MBDC discovered in 2007 that Uniwide had not been paying realty taxes on the improvements it made on the property, including the large concrete building of Uniwide Coastal Mall. MBDC sought arbitration but Uniwide rejected this, citing the corporate rehabilitation proceedings at the Securities and Exchange Commission alongside an alleged transfer of Uniwide’s rights and obligations over the leased property to its coastal mall creditors. Uniwide also cited the failure of the lease contract to specify an arbitral body or tribunal.

At that time, rehabilitation proceedings have already been terminated.

MBTC filed in 2010 a complaint for unlawful detainer and damages before the Metropolitan Trial Court of Parañaque City. Its prayer was for Uniwide to be directed to vacate the leased premises, to pay their rentals in arrears and reimburse MBDC for payments made on realty taxes on the land.

In 2010, Uniwide was ordered by the court to vacate the property registered in the name of MBDC, a ruling which was upheld by the appellate court in October 2012 with some modifications on the rental arrears Uniwide was ordered to make.