The officials of Bacolod City yesterday reiterated that the Bacolod Real Estate Development Corp. has no legal capacity and legal standing to file a case against them during a joint hearing at the Regional Trial Court in Bacolod City .

BREDCO, represented by its president Simplicio Palanca, filed the case for the passage of City Ordinance 454, or the “takeover” ordinance, last month against the City of Bacolod , Mayor Evelio Leonardia, Vice Mayor Jude Thaddeus Sayson, Councilors Al Victor Espino, Dindo and Kevin Ramos, Homer Bais, Greg Gasataya, Celia Flor and Roberto Rojas.

It asked the court to issue a temporary restraining order with prayer for preliminary injunction. It also asked the court to declare C.O. 454 null and void for being unconstitutional, violative of certain provisions of the New Civil Code, and the Local Government Code.

During the joint hearing on the grounds for dismissal and application for injunction yesterday, the defendants represented by City Legal Officer Allan Zamora, former Councilor Lyndon Caña and Councilor Dindo Ramos, asserted that the complaint should be dismissed because BREDCO had transferred its rights and interest to Top Harbor International Inc. in a merger agreement.

BREDCO, represented by former Vice Mayor Renecito Novero, Roseller Maalat and former provincial prosecutor Reinaldo Nolido, denied the argument and asserted that BREDCO was not a party to that agreement hence it does not bind BREDCO.

Novero said the Article of Merger and Plan of Merger between Bacolod Top Corporation, Top Harbor International Inc., and BREDCO Port International Inc. did not include BREDCO.

Caña said that while BREDCO is not a signatory it is clear that they acknowledged that BREDCO ceded, transferred and conveyed its reclamation and dredging rights, and right to manage and operate the port.

He said they cannot deny that BREDCO ceded, transferred and conveyed its rights because the Plan of Merger was signed by Palanca and Maalat as one of its lawyers, and that this was notarized by Novero. All three affixed their signatures on the documents, he added.

Novero said that while it is true that they three have signed, he denied that BREDCO is a party to the Articles of Merger and Plan of Merger because it has a separate juridical personality.

But Palanca is a major stockholder and the president of BREDCO, Caña said.

Zamora said until now they could not show a document that BREDCO authorized THII to manage and operate the port. Their only basis for THII to manage and operate is the provision of the plan of merger, he said. There must be a document to show that THII is a subsidiary or affiliate corporation that was authorized by BREDCO to manage and operate the port, he added.

At the opening of the hearing RTC Judge Fernando Elumba announced that there is no urgency for the issuance of a TRO, so he did not issue one.

During the presentation of arguments on why the complaint should be dismissed, BREDCO presented their evidences why they should be granted preliminary injunction and Maalat was presented as witness.

Maalat cited the 1961 agreement, the 1966 extension and revision agreement, and the Comprehensive Revised Reclamation Agreement as basis.

Meanwhile, Caña asked for clarification if Novero, a former Vice Mayor of the city, can be allowed to appear against the city a year after he vacated his office. He cited R.A. 6713, or the Code of Ethics of Public Officials.

Caña said he believes if one is a public official, one cannot practice against the city within a year. In his case, he is defending the city, he said.

Novero said he is not prohibited to practice and instead made Nolido the lead counsel.

The Judge will resolve the arguments together with the preliminary injunction issue on February 19.*CGS

back to top