Title
Malayan Integrated Industries, Corp. vs. Court of Appeals
Case
G.R. No. 101469
Decision Date
Sep 4, 1992
Dispute over Mandaue reclamation project: MALAYAN contested new contract with F.F. Cruz & Co., Inc. after prior agreement lapsed. Court upheld injunction favoring F.F. Cruz, citing P.D. No. 1818 and executive discretion.

Case Digest (G.R. No. 101469)

Facts:

Malayan Integrated Industries Corporation v. The Hon. Court of Appeals, G.R. No. 101469, September 04, 1992, Supreme Court First Division, Grino-Aquino, J., writing for the Court. The petition is a special civil action for certiorari and prohibition seeking annulment of the Court of Appeals' resolutions of August 9 and August 28, 1991, and of the writ of preliminary injunction issued by the Court of Appeals in CA-G.R. SP No. 25621.

On December 12, 1977, the City of Mandaue and Malayan Integrated Industries Corporation (Malayan) signed a reclamation contract for an originally 180-hectare (later 360-hectare) reclamation and development project. Subsequent government instruments—Presidential Decree No. 3-A and Executive Order No. 525—raised questions about the City’s authority to undertake reclamation. The Acting Minister of Justice issued Opinion No. 70 (1979) that P.D. No. 3-A effectively withdrew the City's reclamation right unless authorized by the Public Estates Authority (PEA).

Malayan thereafter prepared feasibility studies and sought presidential approval; the PEA reviewed and recommended the project but the contract remained pending with the Office of the President. In 1989 the City of Mandaue negotiated a separate reclamation contract with F.F. Cruz & Co., Inc. (in consortium with the Cebu Contractors Association) and, following PEA recommendations and executive action, the Office of the President—through Executive Secretary Catalino Macaraig, Jr., “by authority of the President”—approved the Cruz contract and expressly disapproved the 1977 Malayan contract by action dated June 27, 1989.

Malayan filed a petition (Civil Case No. CEB-9658) in the Regional Trial Court (Branch 10, Cebu) on November 26, 1990, to enjoin the City and F.F. Cruz from implementing their contract and to compel enforcement of its 1977 contract. The trial court issued a temporary restraining order (Nov. 29, 1990) and, after hearing, Judge Leonardo B. Canares granted a writ of preliminary prohibitory injunction on December 18, 1990 contingent upon a P5,000,000 bond. Respondents sought relief in the Court of Appeals.

On August 9, 1991, the Court of Appeals issued a temporary restraining order to preserve the status quo and, on August 28, 1991, it issued a writ of prelimin...(Subscriber-Only)

Issues:

  • Did the Court of Appeals exceed its jurisdiction or act with grave abuse of discretion in issuing a writ of preliminary injunction in CA-G.R. SP No. 25621 enjoining enforcement of Judge Canares’ orders in Civil Case ...(Subscriber-Only)

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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