Supreme Court rules: MMDA can't dismantle MRT billboards

MANILA, Philippines – The Supreme Court (SC) has affirmed a ruling of the Court of Appeals (CA) declaring that the Metro Manila Development Authority (MMDA) has no authority to dismantle the billboards and advertisements installed at the Metro Rail Transit (MRT).

In a nine-page resolution penned by Associate Justice Lucas Bersamin, the first division of the High Court junked a petition of MMDA assailing the CA ruling dated May 9, 2007 that permanently enjoined the agency from removing the billboards and streamers put up by Trackworks Rail Transit Advertising, Vending and Promotions, Inc.

The SC held that MMDA Regulation No. 96-009 – which prohibits posting, installation and display of billboards, signages and other advertising media clutters in any part of the road, sidewalk, center island, posts, trees, park and open space – applied only to public areas, and not to private properties such as the MRT Line 3.

The High Tribunal said the CA was correct in ruling that the regulation does not apply to the advertising materials installed by Trackworks on MRT-3 because they cannot be considered as a “center island” since it is a private property.

“It is futile for MMDA to simply invoke its legal mandate to justify the dismantling of Trackworks’ billboards, signages and other advertising media. MMDA simply had no power on its own to dismantle, remove, or destroy the billboards, signages and other advertising media installed on the MRT structure by Trackworks,” stated the assailed CA ruling, which also upheld an order of the Regional Trial Court of Pasig City.

The SC said Trackworks derived its right to install its billboards and signages at the MRT-3 from Metro Rail Transit Corp.’s authority under the build-lease-transfer (BLT) agreement. Under the agreement, MRTC owns the MRT-3 for 25 years, upon expiration of which MRTC would transfer ownership of the MRT-3 to the government.

Since MRTC remains to be the owner of the MRT-3, the SC said its contract for advertising services with Trackworks “was a valid exercise of ownership by the former.”

The SC dismissed the claim of the MMDA that it was only implementing Presidential Decree 1096 or the Building Code in dismantling Trackworks’ billboards and signages.

The SC noted that the power to enforce the provisions of the Building Code belongs to the Department of Public Works and Highways (DPWH) and not to MMDA.

Concurring with the ruling were Chief Justice Reynato Puno and Associate Justices Conchita Carpio Morales, Teresita Leonardo-De Castro and Martin Villarama, Jr.

Records show that MRTC entered into a contract for advertising services with Trackworks on Oct. 17, 1998. The contract is authorized by the Aug. 8, 1997 BLT agreement between the government and MRTC.

In the BLT agreement, MRTC was allowed either by itself or through any estate developers, to obtain income by developing commercial premises at the MRT-3.