AVM Bernardo Engineering, that operates the Bacolod City Slaughterhouse in Brgy. Handumanan, Bacolod City, has no arrears with the City of Bacolod and is willing to pay its current rental obligation to the city, its plant manager, Glorydee Cometa, said yesterday.

Cometa said they have filed another consignation case against the City of Bacolod before the Regional Trial Court Wednesday because the  city did not accept their payment.

City Legal Officer Rayfrando Diaz II served AVM Bernardo a demand letter Monday,  that  required it to pay its arrears of about P1.8 million and directed it  to vacate the premises within 15 days from receipt of the letter or  the city will file an ejectment case against them.

Marvin Tanada, legal counsel of AVM Bernardo, said they had filed a petition for consignation last year amounting to P60,990 covering the period March 16 to April 15, 2014, which was received by the City Treasurer’s Office. There was no trial held on the first petition for consignation  because the city accepted their payment automatically, he said.

Tañada said AVM Bernardo also tried to pay its rental from April 16 to October 15, 2014 when Cometa went to the Bacolod City Government Center to deliver the 10 checks but the city refused to receive them.

Since December 2014 had many holidays  Cometa was able to return to the government center only on February 4 to pay the amount of P609,900 for the period  April 15, 2014 to February 2015, but again the city refused to accept their payment, he said.

So, AVM decided to file another petition for consignation Wednesday, Tañada said.

Diaz said even if AVM Bernardo pays they will still  file an ejectment case against it.

He  claimed that  the consignation case is without basis because he has records to prove that they have demanded and are willing to receive the amounts to be paid by AVM but they did not legally tender or physically deliver the checks that they want. 

Diaz said they gave  AVM Bernardo a chance to pay its unpaid rentals amounting to about P1.8 million since last year but until now this has not been paid.

He said the Sangginian has already authorized the CLO or any of its lawyers to file the appropriate ejectment case. So after the lapse  of 15 days from receipt of the demand letter they will  file the case.

If it has filed a consignation case, they will move for its dismissal when they file the ejectment case.     They gave AVM ample time to settle these issues but it is not cooperative and not compliant with the contract, Diaz added.

Cometa said she received the demand letter from the city Monday and they have already answered it. 

Tanada said they will wait until the ejectment case is  filed before the proper forum because it is only the court that can interpret who is legally correct. Each party has its legal right to protect.

 He said the city should know that the contract of AVM Bernardo with the city is not a lease contract, and  AVM  is a partner of the city through public private partnership.

AVM Bernardo will defend its legal right and only the court can interpret the events that transpired and come up with its own decision, Tañada said.

They stood their ground that AVM did not commit any breach or violation of contract as far as rental cost and payment are concerned because the old rate of P30,000 per month had the tacit approval of the city government under former Mayor Evelio Leonardia, he said.

 Tañada said that  in June 15, 2009, AVM Bernardo wrote the former mayor about the chicken line which was not operational and the fact that 25 percent of its profit goes to the operation of the Task Force Botagoy, so their rental obligation to the city should only be P30,000 a month.*CGS

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