Title
Addition Hills Mandaluyong Civic and Social Organization, Inc. vs. Megaworld Properties and Holdings, Inc.
Case
G.R. No. 175039
Decision Date
Apr 18, 2012
Megaworld secured permits for a condominium project in Mandaluyong, challenged by AHMCSO in court. Supreme Court upheld HLURB's jurisdiction, ruling AHMCSO failed to exhaust administrative remedies before filing.

Case Digest (G.R. No. 128083)
Expanded Legal Reasoning Model

Facts:

  • Parties and Background
    • Petitioner: Addition Hills Mandaluyong Civic & Social Organization, Inc.
    • Respondents:
      • Megaworld Properties & Holdings, Inc. (registered owner of the disputed land)
      • Wilfredo I. Imperial, acting as Director of the National Capital Region (NCR) for the Housing and Land Use Regulatory Board (HLURB)
      • Housing and Land Use Regulatory Board (HLURB), an agency under the Department of Environment and Natural Resources
  • Land and Development Project
    • Megaworld owned a parcel of land along Lee Street, Barangay Addition Hills, Mandaluyong City (approximately 6,148 square meters) under TCT No. 12768.
    • In 1994, Megaworld conceptualized the construction of the Wack-Wack Heights Condominium Project featuring six four-storey buildings and one seventeen-storey tower.
  • Required Permits and Clearances Obtained by Megaworld
    • Certificate of Locational Viability (CLV) issued on October 25, 1994, and a Development Permit issued on November 11, 1994 by the HLURB.
    • Environmental Compliance Certificate (ECC) issued on March 15, 1995 by the DENR.
    • Building Permit issued on February 3, 1995, by the Mandaluyong City Building Official.
    • Barangay Clearance issued on September 29, 1994, from the Barangay Chairman of Addition Hills.
  • The Initiation of the Legal Dispute
    • On June 30, 1995, petitioner filed a complaint before the Regional Trial Court (RTC) of Pasig City, Branch 158, in Civil Case No. 65171.
      • Relief sought aimed at annulling the permits (CLV, Development Permit, ECC, Building Permit) and prohibiting Megaworld from receiving further permits such as the Certificate of Registration and License to Sell Condominium Units.
    • Megaworld filed a Motion to Dismiss on July 20, 1995, arguing lack of a cause of action and improper forum, but the RTC denied the motion on July 24, 1995.
    • Subsequent pleadings included Megaworld’s Answer (filed on August 3, 1995) and the commencement of pre-trial (November 15, 1995), followed by the trial on the merits.
  • Trial Court Decision and Its Aftermath
    • The RTC rendered a decision on September 10, 1998, in favor of the petitioner:
      • Annulled the CLV, Development Permit, Certificate of Registration and License to Sell Condominium Units (issued by HLURB) and the Building Permit.
      • Directed Megaworld to rectify its project to conform with zoning requirements (R-2 zone of Mandaluyong City and Metro Manila Zoning Ordinance 81-01).
    • Megaworld appealed, leading to a Court of Appeals (CA) decision dated May 16, 2006, which reversed and set aside the RTC decision by dismissing the complaint.
    • Petitioner’s motion for reconsideration was denied by the CA via its Resolution dated October 5, 2006.
  • Pending Administrative Remedies
    • The petitioner had pending complaints with the HLURB involving the annulment of permits issued in favor of Megaworld.
    • The administrative remedies provided by the HLURB were bypassed when petitioning the RTC.

Issues:

  • Petitioner's Failure to Exhaust Administrative Remedies
    • Whether the petitioner erred in failing to first exhaust the administrative remedies provided under the HLURB rules before seeking judicial intervention.
    • Whether the petitioner's pending complaints with the HLURB (regarding the Development Permit and other permits) should have precluded its filing of a case in the RTC.
  • Jurisdictional and Procedural Matters
    • Whether the trial court had proper jurisdiction to rule on the annulment of permits that were within the exclusive administrative competence of the HLURB.
    • Whether the case falls under one of the accepted exceptions to the rule on exhaustion of administrative remedies.
  • Respondents’ Contentions
    • The petition for review was alleged to be fatally defective due to improper verification.
    • The CA's decision to annul the trial court's decision and dismiss the complaint was challenged on grounds of factual and legal errors, including issues on the irregular issuance of permits and alleged deprivation of adjacent properties’ rights.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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