G.R. No. 147839 - Gaisano Cagayan, Inc. vs. Insurance Company of North America

Shoppers Paradise Realty & Development Corp. (SPRDC) and Shoppers Paradise FTI Corp. (SPFC), affiliates engaged in mall development, faced financial distress after the 1997 Asian Financial Crisis.
They filed a joint Petition for Rehabilitation on May 9, 2005 before RTC-Makati (SP Proc. Case No. M-6075). The City Government of Taguig (CGT) was among their creditors for unpaid realty taxes.

October 5, 2006 RTC order directed CGT to issue tax declarations to mall tenants but hold SPRDC/SPFC jointly liable for taxes. CGT issued new tax declarations on May 30, 2007.
November 7, 2006 RTC resolution approved SPRDC/SPFC’s Revised Rehabilitation Plan, envisioning funding tax liabilities through mall lease rentals.
October 29, 2007 MOA: SPFC leased unoccupied mall units to CGT; rentals credited against realty tax arrears with automatic renewal if CGT stayed in possession. December 5, 2007 Addendum modified lease term and area.
CGT also occupied additional mall areas for its One-Stop Local Government Center (OSLGC) under EO 32 (2005). A 2009 Booking Term Sheet (BTS) and related letters documented lease terms, though no formal MOA for OSLGC. CGT internal memos in 2015 acknowledged closing of “Area 3 Satellite Office” and directed final account.

SPFC, believing its tax liabilities offset, demanded CGT payments in August and September 2015; CGT rejected offsets beyond 2006 and disavowed BTS authority.
Rehabilitation Receiver’s reports (Sept. 22 and Oct. 7, 2015) recommended reconciliation of rentals, utilities, and tax offsets; RTC-Makati ordered reconciliation, but CGT failed to cooperate.
SPFC paid taxes under protest (Oct. 27, 2015) and filed Urgent Motion for Collection (Nov. 5, 2015) for P10,335,208.84 representing unpaid rentals, utilities, interest, and penalties. CGT opposed, arguing lack of jurisdiction.

December 8, 2015 RTC-Makati Branch 149 granted SPFC’s motion, ordering CGT to pay P10,335,208.84 within 15 days.
CGT filed certiorari before CA (CA-G.R. SP No. 143723), invoking Steel Corporation v. Mapfre Insoluble Ins. Corp. to argue lack of jurisdiction.
August 28, 2018 CA Decision affirmed the RTC order, holding the claims were within rehabilitation court powers and Steel Corporation inapplicable. March 18, 2019 CA Resolution denied reconsideration.

CGT elevated the case to the Supreme Court via Rule 45 petition (May 14, 2019), reiterating jurisdictional challenge.
SPRDC/SPFC filed Comment (Aug. 30, 2019); CGT filed Reply (Jan. 23, 2020).

Whether the RTC-Makati, acting as a rehabilitation court, had jurisdiction to grant SPFC’s Urgent Motion for Collection.
Whether the CA committed reversible error in affirming the RTC’s Order dated December 8, 2015.