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Court scraps charges vs SBMA, Hanafil over golf course row


07/03/2009 [ tribune.net.ph ]

The Municipal Trial Court of Cities (MTCC) ruling has cleared the Subic Bay Metropolitan Authority (SBMA) and Hanafil Golf and Tour Inc. (Hanafil) from a case filed by the former golf course operator Universal International Group Development Corp. (UIGDC).

UIGDC lost the "Forcible Entry" case filed against the SBMA and Hanafil after the MTCC-Branch 3 dismissed the case on June 18 of this year.

According to Hanafil president and CEO Benjamin John Defensor III, the court recognized the right of the SBMA to terminate the Lease Development Agreement (LDA) with UIGDC, making it clear that Hanafil is the new rightful lessee of the property.

Judge Rosemary Bautista said the court dismissed the case of UIGDC, which it found guilty of forum shopping and all the elements of litis pendentia.

Bautista reiterated that from the pieces of evidence submitted by the parties, there are three actions commenced by UIGDC before different courts proving the presence of forum shopping.

Bautista said that UIGDC filed different cases in different courts against SBMA and Hanafil.

The cases filed by UIGDC against SBMA and Hanafil were: Petition for Certiorari with Prayer for Preliminary Mandatory Injunction and TRO filed in April 2008 before the Court of Appeals (CA); Forcible Entry case filed in May 2008 before the MTCC-Branch 3 of Olongapo City; and the case for Breach of Contract and Damages, Annulment of Lease Development Agreement with Prayer for TRO and Preliminary Mandatory Injunction filed in January 2009 before the RTC-Branch 72 of Olongapo City.

SBMA Administrator Armand Arreza said, "The LDA between SBMA and UIGDC was rescinded on June 8, 2007 by the SBMA Board so there is no lessor-lessee relationship that exists between the two companies."

"We have validly pre-terminated the LDA because the lessee committed contractual breaches. And as a consequence of the valid pre-termination, SBMA has repossessed the golf course without any court order," Arreza said.

"The Supreme Court has upheld the validity of the provisions in the LDA between UIGDC and SBMA, including the pre-termination and repossession of the property by UIGDC in case of violations by the company," Arreza added.

"We now have the right to possess the golf course as the new lessee since we have complied with all the requirements of the SBMA in a competitive evaluation of proposals," Defensor said.

Currently, Hanafil has started the reconstruction of the old golf course into a world-class golfing facility while opening at least 9-holes during its reconstruction.

"We want them (members) to enjoy their game even during the rainy season. It is our pleasure to give our utmost services to them," Defensor said.

"The renovation of the Subic Golf Course into a world-class golf course would be done by phases. We will open holes 1 to 9 but would close the remaining holes for us to renovate the old US Navy golf course," he added.

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