AyalaLand Inc. is asking the Bacolod Regional Trial Court Branch 48 to dismiss for lack of merit a suit filed by SM Prime Holdings Inc. against it and to order SMPHI to pay P40.5 million in damages and attorney’s fees.

In May, SMPHI filed Civil Case No. 14-14323 against Negros Occidental provincial government officials, led by Gov. Alfredo Marañon Jr., and ALI before RTC Branch 48, seeking the nullification of a deed of conditional sale and contract of lease the defendants entered into   involving the Capitol’s 7.7-hectare prime property in Bacolod City.

In its complaint, SMPHI claimed that the provincial government fraudulently circumvented the law in executing the deed of conditional sale and contract of lease in favor of ALI. Both the provincial government and ALI have denied that fraud was committed, in their answers to the suit.

Earlier, the Negros Occidental officials had also asked the court to dismiss the SMPHI case for “wilful and deliberate forum shopping, and utter lack of merit”, and to order the firm to pay it P50 million in damages.

ALI, in its answer with compulsory counter claim, asked the court to dismiss the suit and to order SMPHI to pay it P20 million in exemplary damages, P20 million in moral damages and P500,000  in attorneys fees.

It told the court it had proposed to develop the Capitol property into an integrated mixed-used civic and commercial district that would combine the center of government with commercial and residential uses, making it the growth center of Metro Bacolod and Negros Occidental.

ALI said that as a developer, it does not cut corners, nor does it stake its name on any development that will have an adverse impact on its reputation.

The filing of the complaint against it by SMPHI unduly disregards and even defies decisions of the Commission on Audit that have already become final.

In its decisions that became final and executory on Nov. 13, 2013, the COA ruled that the contracts entered into by the provincial government and ALI are valid, legal and rightful, ALI told the court.

ALI also charged that SMPHI is guilty of forum-shopping, splitting causes of action, and of multiplicity of suits.

The discussions raised by SMPHI in its suit before RTC Branch 48 are mere replicas of the arguments it raised before RTC Branch 50, the Court of Appeals, and the Land Registration Authority, ALI said.

It also said the Court has no jurisdiction to review a COA decision.

Counsels for ALI are Lily Uy-Valencia and Ainee Tañeza.*CPG

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