G.R. No. 77133 - Spouses Bandoy vs. Court of Appeals

Case Digest (G.R. No. 77133)
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Facts:

Parties and petitions filed
The petitioners were the Department of Health (DOH), represented by the Secretary of Health (then Secretary Enrique T. Ona), and the Secretary of Health, as Head of the Procuring Entity (collectively, petitioners).
The respondents were Hon. Bonifacio S. Pascua, as Presiding Judge of Branch 56, Regional Trial Court (RTC), Makati City, and J.D. Legaspi Construction (J.D. Legaspi Construction or JDLC).
G.R. No. 212894 was a Petition for Certiorari (with Urgent Application for Temporary Restraining Order and/or Writ of Preliminary Injunction) under Rule 65 of the Rules of Court assailing an RTC Order dated June 18, 2014 that granted a 20-day temporary restraining order (TRO) in favor of JDLC, enjoining the DOH from conducting a rebidding or awarding to a third party the Dr. Jose Fabella Memorial Hospital Infrastructure Project or any aspect thereof.
G.R. No. 213820 was a Petition for Certiorari (with Urgent Application for Temporary Restraining Order and/or Writ of Preliminary Injunction) under Rule 65 of the Rules of Court assailing an RTC Order dated August 7, 2014 and the Writ of Preliminary Injunction dated August 18, 2014 issued by the RTC.
The RTC granted JDLC’s application for a writ of preliminary injunction conditioned on the posting of an injunctive bond of P2,000,000.00, “to answer for all damages” petitioners might sustain by reason of the injunction (and the earlier TRO), if the court ultimately decided that JDLC was not entitled thereto.
G.R. No. 213889 was a Petition for Review on Certiorari (with Extremely Urgent Application for Temporary Restraining Order and/or Writ of Preliminary Injunction) under Rule 45 of the Rules of Court assailing an RTC Decision dated August 29, 2014 granting writs of certiorari and mandamus in favor of JDLC and awarding the Project to JDLC as the “lowest calculated and responsive bidder.”
The three petitions were consolidated by the Court through a Resolution dated September 22, 2014.

Background facts on the procurement and bidding
The controversy arose from the bidding of the infrastructure project for Dr. Jose Fabella Memorial Hospital (Fabella Hospital).
The modernization project became imperative because the land where Fabella Hospital was located was owned by Home Guaranty Corporation, and Fabella Hospital was required to transfer to a new site.
On February 14, 2013, Architect Maria Rebecca M. Penafiel of the National Center for Health Facility Development (NCHFD) of the DOH submitted the approved terms of reference of Phase 1 of the Project to the Central Office Bids and Awards Committee (COBAC) Secretariat, Dr. Ma. Theresa G. Vera.
On April 6, 2013, the Invitation to Bid (ITB) for Phase 1 was posted on PhilGEPS.
On June 4, 2013, the ITB was published in the Philippine Star and the Philippine Daily Inquirer, and posted in conspicuous places within DOH premises.
On June 11, 2013, the pre-bid conference was conducted.
On June 25, 2013, the bids were opened.
Of the four bidders, only three were declared eligible, including JDLC.
On July 1, 2013, Tokwing Construction Corporation (Tokwing Construction) was declared to have submitted the Lowest Calculated Bid.
On July 25, 2013, COBAC informed Tokwing Construction that it failed post-qualification because it did not submit certified true copies of the necessary documents.
On August 6, 2013, COBAC sent a letter to JDLC informing it that JDLC was declared to have submitted the Lowest Calculated Bid.
After review and deliberations on JDLC’s bid, COBAC resolved that JDLC submitted the second lowest calculated and responsive bid.
On December 11, 2013, COBAC submitted its resolution to the head of the Procuring Entity.

Cancellation of procurement and filing of JDLC’s mandamus
DOH was later advised to review the financing options for the modernization project.
As a result of this instruction, DOH had to cancel the procurement for the project.
NCHFD informed the COBAC Secretariat about the cancellation.
As a consequence of the cancellation, JDLC filed a Petition for the Issuance of the Writ of Mandamus (dated January 24, 2014) before the RTC.
After petitioners filed their Comment, JDLC filed a Motion for Leave to File and Admit Attached Amended and Supplemental Petition for Mandamus and Certiorari (with extremely urgent application for issuance of a TRO and/or writ of preliminary injunction), assailing the cancellation and seeking relief for award of the Project to JDLC.

RTC issuance of TRO and preliminary injunction
On June 18, 2014, the RTC issued the assailed Order granting JDLC’s prayer for a TRO for twenty (20) days.
The TRO enjoined DOH, its agents, assigns, and all persons acting for it from conducting a re-bidding or award to a third party of the Dr. Jose Fabella Hospital Infrastructure Project or any aspect thereof.
The TRO was intended to prevent issues in the principal case from becoming moot and academic, to prevent grave and irreparable damage or injury, and to maintain the status quo pending resolution of the amended and supplemental petition.
The RTC directed respondent to show cause on July 11, 2014 at 8:30 a.m. why a writ of preliminary injunction should not be granted.
On August 7, 2014, the RTC issued an Order granting the prayer for a writ of preliminary injunction upon posting of an injunctive bond of P2,000,000.00.
The RTC later issued the Writ of Preliminary Injunction on August 18, 2014.

RTC Decision granting certiorari and mandamus and awarding the Project
The issuance of the TRO and preliminary injunction prompted petitioners to file G.R. No. 213820.
On August 29, 2014, the RTC rendered a Decision granting the writ of certiorari and mandamus in favor of JDLC.
The RTC ordered petitioners to correct and reverse the cancellation of the procurement process under ITB No. 2013-215, and annulled the consequences of cancellation, including the re-bidding of the design and construction management aspect under Solicitation No. 2014-12, and its consequences.
The RTC granted mandamus ordering respondents to issue the Notice of Award to JDLC within seven (7) days from receipt of the writ, consistent with the maximum period for the issuance of Notice of Award under Annex “C” of the IRR of RA 9184.
The RTC also ordered respondents to execute all necessary succeeding procedures within the maximum period provided by RA 9184 and its IRR.
The RTC awarded the contract to JDLC as the Lowest Calculated and Responsive Bidder for the Dr. Jose Fabella Memorial Hospital Infrastructure Project.
The RTC ruled to serve the judgment personally pursuant to Section 9, Rule 65 of the Rules of Court.

Postures of petitioners and respondent JDLC, and consolidation
Petitioners argued in G.R. No. 213889 that their right to due process was violated because respondent judge failed to conduct a hearing of the main case before issuing the subject TRO.
JDLC filed multiple Comment/Opposition pleadings praying for dismissal of the petitions.
Petitioners filed a Reply in G.R. No. 213889.
Petitioners filed a Motion to Consolidate on October 8, 20...(Subscriber-Only)

Issues:

Whether the petitions presented a justiciable controversy notwithstanding supervening events

Whether the petitions for certiorari and review on certiorari—assailing the issuance of a TRO, a writ of preliminary injunction, and an RTC decision awarding the Project—should still be resolved on the merits despite the subsequent issuance of Notices to Proceed, commencement of works, and progression of the Project, including Phase II.

Whether the Court should dismiss or deny the
......(Subscriber-Only)

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