Concessionaire sues Gaisano over contract

A civil case for injunction and damages was filed against the Gaisano Grand Group of Companies and Dynasty Management and Development Corp. for terminating a lease contract with one of its concessionaires ahead of the expiration date.

Emily Sy, proprietor of Home Sonic Philippines, is asking for a temporary restraining order from court to enjoin the respondents from terminating their lease agreement and prevent her eviction from the stall she rents at the Gaisano Fiesta Mall in barangay Tabunok, Talisay City.

Sy, in an eight-page petition for injunction and damages with a prayer for the issuance of a temporary restraining order before the Regional Trial Court in Cebu City, said that sometime last year she entered into an agreement with the Gaisano and Dynasty Management and Development Corp. for the leasing of a mall space.

Sy said that she was eventually granted a two-year notice of award instead of a lease contract at P28,080 per month exclusive of the Value Added Tax. According to Sy, she was made to pay P168,480 as security deposit for a period of six months and reservation fee.

The complainant claimed that her business operated smoothly until last January 22 when she received a notice of pre-termination of lease. The notice was allegedly based on a verbal warning made by the Department of Trade and Industry.

“For no apparent reason and in stark breach of the stipulations in the notice of award, defendants acrimoniously revived its veiled threat to pre-terminate the lease,” Sy said.

Sy said that last July 16 the respondents again served a notice of termination of lease wherein she was given until today, which she said is a violation of her right to due process.

Sy said she was neither informed of the grounds for the pre-termination of the lease nor given a chance to be heard. She said under the notice of award her contract will expire on October 31, 2009 yet.

Aside from the TRO Sy also asked the court to make the respondents pay her P100,000 damages and P50,000 in attorneys’ fee and litigation costs.

Gaisano Grand Fiesta Mall’s officer-in-charge Esterlina Librando said they will no longer issue any statement as the matter has already been filed in court. — Fred P. Languido with a report from Liv G. Campo/BRP