G.R. No. 157315 - City Government of Butuan vs. Consolidated Broadcasting System, Inc.

In February 2002, City Mayor Leonides Theresa B. Plaza, in her dual capacity as the local chief executive and as a representative of the City Government of Butuan, sent a letter to the Sangguniang Panlungsod.
In her letter, Mayor Plaza sought support for her decision to deny the application for a mayor’s permit filed by Consolidated Broadcasting System (CBS), doing business as “DXBR Bombo Radyo Butuan.”
The denial was grounded on alleged violations committed by CBS, including:

Violating the City’s zoning ordinance by operating a broadcasting business within the residential premises of Arujiville Subdivision.
Operating on a site where the Temporary Use Permit (TUP) had expired (originally granted for a limited and renewable period) and not renewed since 1997.
Alleged non-compliance with necessary permits such as the ECC.
Numerous complaints from nearby residents regarding interference with private rights and inciting disturbances.

Shortly after the Mayor’s decision, the Sangguniang Panlungsod adopted Resolution-057-2002 which endorsed her decision to deny CBS’s permit and called for the closure of the station.
On February 18, 2002, the City’s licensing officer served a final notice of violation and a cease-and-desist demand to CBS’s station manager, warning of closure in case of non-compliance.
On February 19, 2002, CBS, through its manager Norberto P. Pagaspas, filed a complaint in the Regional Trial Court (RTC) in Butuan City seeking:

A writ of preliminary injunction (with accompanying temporary restraining order or TRO)
Prohibition and mandamus relief to restrain the petitioners from closing the station
Damages for the anticipated interference with its broadcasting business.

The case, filed as Civil Case No. 5193, was initially raffled to Branch 2 of the RTC under Judge Rosarito F. Dabalos.
Judge Dabalos, citing potential bias and factors that might affect his objectivity (such as verbal attacks and public criticism), voluntarily inhibited himself and directed the case’s return to the Clerk of Court for re-raffle.
Owing to practical difficulties, including a lack of alternate judges in the jurisdiction, subsequent orders by Vice Executive Judge Victor Tomaneng reassigned the case without a raffle.
Judge Tomaneng himself withdrew the case to Judge Dabalos, asserting that the reason for self-inhibition was not sufficiently compelling to permanently bar the latter's participation, especially given the urgent need for resolving the relief application.

On February 21, 2002, Judge Tomaneng issued a TRO to maintain the status quo and prevent the closure of the radio station, ordering the petitioners to refrain from any act that could interfere with CBS’s operations.
CBS later moved for the appointment of another judge to handle its application for the writ of preliminary injunction, though its counsel eventually desisted from that request.
On March 12, 2002, despite objections from the petitioners claiming that Judge Dabalos had already lost competence through earlier self-inhibition, the hearing resumed and Judge Dabalos granted the application for a writ of preliminary injunction.
The writ mandated that the City Government and Mayor Plaza, along with their agents and employees, refrain from taking any actions (e.g., closing, padlocking, or interfering with operations) that would hinder CBS’s right to operate its radio station.
CBS was required to post an injunction bond of P200,000.00 pending the final resolution of the case.

Following the issuance of the preliminary injunction by the RTC and the subsequent posting of the bond by CBS, petitioners (City Government of Butuan and Mayor Plaza) commenced a special civil action for certiorari and prohibition before the Court of Appeals (CA).
The CA, in its decision dated October 28, 2002 and reaffirmed by a resolution on January 29, 2003, dismissed the petition for certiorari and prohibition.
The petitioners sought review on two principal grounds:

That Judge Dabalos abused his discretion by re-assuming jurisdiction over a case from which he had earlier self-inhibited.
That the RTC improperly granted the writ of preliminary injunction without first requiring CBS to adduce evidence establishing its clear right to relief.

Whether the respondent Judge Rosarito F. Dabalos committed grave abuse of discretion by re-assuming jurisdiction over Civil Case No. 5193 after having issued two prior orders of self-inhibition.

Sub-issue: Does a trial judge, after voluntarily inhibiting himself, retain the authority to re-assume jurisdiction under exigent circumstances?

Whether the issuance of the writ of preliminary injunction was proper even though CBS was not required to present additional evidence at that stage.

Sub-issue: Should the court require the applicant for a preliminary injunction to produce evidence demonstrating a clear right, or can the writ be issued based on prima facie allegations and undisputed facts indicating imminent harm?