Court junks Mactan Rock’s appeal for preliminary injunction vs MCWD

CEBU, Philippines - Regional Trial Court Judge Sylva Paderanga of Branch 16 has denied the preliminary injunction sought by the Mactan Rock Industries, Inc. against the Metropolitan Cebu Water District (MCWD).

In her seven-page order, Paderanga said she found no “urgent and paramount necessity” that would warrant the issuance of the writ against the defendants MCWD and Vesmindo Santiago, chairman of MCWD-Joint Venture Selection Committee (JVSC).

“The issuance of the writ rests entirely within the discretion of the court taking cognizance of the case and will not be interfered with except in cases of manifest abuse.

After a thorough and careful review of the case, this court finds that the application should be denied,” the order reads.

The Mactan Rock Industries, Inc. filed an injunction case against the MCWD.

Based on the complaint, plaintiff Mactan Rock alleged it has an “exclusive right” to supply potable water in Mactan Island.

However, it learned that the MCWD accepted “unsolicited proposal” of Abejo Waters Corporation (AWC) to supply 10,000 cubic meters of potable water in Mactan Island daily at a price of P29.78 bulk which it labeled as a breach of contract.

The contract entered into by the MCWD and AWC was valid for ten years.

Reportedly, the plaintiff entered a memorandum of agreement with MCWD to supply potable water in Mactan Island.

However, Paderanga ruled that the “exclusive right” mentioned by the plaintiff was not established in the evidence presented.

“Plaintiff cannot claim exclusivity by arguing that MCWD was prohibited by law to entertain unsolicited officers by virtue of Section 10.3 of the Revised Implementing Rules and Regulations of Republic Act 6957 as amended by RA 7718 regarding projects ineligible for unsolicited proposals.

As aptly pointed out by defendant MCWD, the rules are inapplicable to joint venture agreements.

More appropriately, the exclusivity was not expressly provided for in the contact,” the order reads.

Paderanga said nothing in the contract indicated that MCWD was prohibited to accept proposals for the supply of water from other qualified entities.

She said although the contract between the plaintiff and MCWD will end in 2020 it doesn’t mean that the plaintiff has an exclusive right to supply potable water in Mactan Island.

Breach of Contract

The plaintiff said MCWD breached the joint venture contract when the entity failed to formally request in writing their planned increase of supply of potable water to them.

The MCWD, however, countered that accepting the unsolicited proposal of AWC was not permanent in nature.

Based on the contract -- the MCWD shall formally request in writing if it planned an increase in the supply of potable water permanently.

With that, Paderanga said there was no breach in contract that transpired between the plaintiff and MCWD.

Meanwhile, Paderanga said MCWD cannot use Republic Act 8975 in its defense considering it only covers national government projects. Under this law, it prohibits the issuance of temporary restraining orders and preliminary injunction against national government infrastructure projects.

Paderanga said the injunctions only refer to “national” and “not to local projects.” (FREEMAN)