Supreme Court rules mall parking fees legal

MANILA, Philippines - Mall owners can collect parking fees from motorists using their premises without violating the law, the Supreme Court (SC) has ruled.

In upholding the Court of Appeals and Makati Regional Trial Court, the SC said the National Building Code and its implementing rules and regulations do not require mall owners to provide free parking spaces for shoppers.

“In conclusion, the total prohibition against the collection by respondents (Ayala Land Inc., Robinson’s Land Corp., Shangri-La Plaza Corp., and SM Prime Holdings Inc.) of parking fees from persons who use the mall parking facilities has no basis in the National Building Code or its IRR,” read the SC decision.

The SC said the state would be acting beyond the bounds of police power if allowed to stop mall owners from collecting parking fees.

“The state also cannot impose the same prohibition by generally invoking police power, since said prohibition amounts to a taking of respondents’ property without payment of just compensation,” read the SC decision.

“Without using the term outright, the OSG is actually invoking police power to justify the regulation by the state, through the DPWH secretary and local building officials, of privately owned parking facilities, including the collection by the owners/operators of such facilities of parking fees from the public for the use thereof.”

The SC rejected the government’s argument that free parking spaces in malls would help ease vehicular traffic.

“Free parking spaces at the malls may even have the opposite effect from what the OSG envisioned,” he said.

The SC said despite being charged parking fees, motorists continue to use the parking facilities of malls.

“Vehicle owners may be parking in the streets only because there are not enough parking spaces in the malls, and not because they are deterred by the parking fees charged by respondents,” read the SC decision.

Promulgated last Sept.18, the SC decision was written by Justice Minita Chico-Nazario.     — Sandy Araneta