G.R. No. 102786 - De la Torre vs. Court of Appeals

Joy Mart Consolidated Corporation was owner and lessee of properties comprising the consolidated block at LRT Carriedo station, including the Isetann Department Store and the Presidente Hotel leasehold.
Light Rail Transit Authority (LRTA) planned the LRT system and sought acquisition of properties including Joy Mart’s block.
Philippine General Hospital Foundation, Inc. (PGH Foundation) received rights to develop areas adjacent to LRT stations and the right to sublease and assign such rights.
Phoenix Omega Development and Management Corporation (Phoenix) entered into a Commercial Stalls Concession Contract with LRTA covering commercial spaces within LRT terminals and stations.

Joy Mart consented to sell and conveyed its property to the government by Deed of Absolute Sale dated February 22, 1983, with provision that Joy Mart be given the first option to redevelop the consolidated block.
PGH Foundation subleased the LRT Carriedo station consolidated block to Joy Mart for construction of a multi-storey building.
LRTA limited the area Joy Mart could occupy; LRTA assured Joy Mart that its first option would be respected should additional area be released for redevelopment.
An Addendum to the Sublease dated August 30, 1984 increased area to be occupied by Joy Mart, imposed higher rent and escalation clause, and required payment of "goodwill" of P3,000,000.
Joy Mart constructed an eight-storey building and borrowed P50,000,000, relying on the first-option assurances and feasibility studies conditioned on Joy Mart’s continued first option.

LRTA entered into a Commercial Stalls Concession Contract with Phoenix on November 28, 1986.
Joy Mart discovered construction within the consolidated block in the third quarter of 1987 and reiterated its first-option claim to LRTA without success.
Joy Mart filed a complaint for specific performance, damages, and a writ of preliminary injunction against LRTA and Phoenix on August 21, 1987 (Civil Case No. 87-41731, RTC Manila, Branch XXXII).
The trial court, presided by Judge Artemon D. Luna, issued a writ of preliminary injunction on September 25, 1987 commanding Phoenix to cease construction adjacent to Joy Mart’s leased property upon the posting of a P10,000 bond.

Phoenix filed a petition for certiorari and prohibition in the Court of Appeals (CA-G.R. SP No. 12998, Sixteenth Division) seeking immediate dissolution of the preliminary injunction and other relief.
The Court of Appeals gave due course to Phoenix’s petition but did not initially issue a restraining order against the trial court.
Pre-trial and settlement efforts in the trial court occurred through March 2, 1988 when pre-trial was declared terminated.

Motion to dissolve injunction in the trial court while appellate petition pending

On May 30, 1988 while CA-G.R. SP No. 12998 remained pending, LRTA and Phoenix filed a joint petition in the trial court to dissolve the preliminary injunction, offering to post a counterbond and alleging substantial rental losses (P305,800 monthly; P2,752,200 accrued since issuance).
Joy Mart opposed the petition to dissolve. The petition was heard on June 17, 1988.
The trial court dissolved the writ of preliminary inj...(Subscriber-Only)

Whether the trial court retained jurisdiction to dissolve a writ of preliminary injunction after the injunction had been elevated to and was pending review in the Court of Appeals.

Whether Phoenix engaged in forum-shopping by seeking review in the Court of Appeals and thereafter filing in the trial court to dissolve the same injunction.
Whether Phoenix was guilty of contempt for continuing construction and permitting occupancy after ...(Subscriber-Only)