Case Digest (G.R. No. 102355)
Facts:
- Manila Electric Company (MERALCO) and Sining Makulay, Inc. (SMI) are involved in a dispute over the use of distribution poles.
- MERALCO is a domestic corporation engaged in the distribution and sale of electrical power.
- SMI provides Community Antenna Television Service (CATV) to its customers.
- In 1979, MERALCO entered into an agreement with SMI to lease specific spaces in its distribution poles for CATV services.
- It was later discovered that SMI was also using the poles for data transmission to banking institutions, which MERALCO considered a violation of their agreement.
- MERALCO served a notice of termination to SMI and demanded the removal of SMI's attachments to the distribution poles.
- SMI was sequestered by the Philippine Commission on Good Government (PCGG) as one of the companies allegedly owned by Roberto Benedicto.
- SMI filed a motion for preliminary injunction in a civil case before the Sandiganbayan, seeking to prevent MERALCO from withholding the use of the distribution poles.
Issue:
- (Unlock)
Ruling:
- The Supreme Court dismissed the petition and set aside the ruling of the Sandiganbayan.
- The Court held that the Sandiganbayan had jurisdiction over the private claim between MERALCO and SMI due to SMI's sequestration by the PCGG.
- The Court reasoned that any action pursued by MERALCO against SMI arising from the breach of contract would fall under the jurisdiction of the Sandiganbayan as an incident of Civil Case No. 0034.
- However, the Court also ruled that the compromise agreement in Civil Case No. 0034 ren...(Unlock)
Ratio:
- The Court's decision was based on the fact that SMI was sequestered by the PCGG, which gave the Sandiganbayan jurisdiction over the private claim between MERA...continue reading
Case Digest (G.R. No. 102355)
Facts:
The case involves the Manila Electric Company (MERALCO) as the petitioner and the Sandiganbayan, the Philippine Commission on Good Government (PCGG), and Sining Makulay, Inc. (SMI) as respondents. The events leading to this case began on January 26, 1979, when MERALCO, a domestic corporation engaged in the distribution and sale of electrical power, entered into a lease agreement with SMI, which provides Community Antenna Television Service (CATV). Under this agreement, MERALCO leased specific spaces on its distribution poles to SMI for a rental fee of P26.00 per pole for one year. However, MERALCO later discovered that SMI was using these poles not only for CATV but also for transmitting computer data channels to various banking institutions, which MERALCO claimed violated their Joint Pole Agreement. Upon learning of this unauthorized use, MERALCO notified SMI of the violation and subsequently terminated the lease agreement, demanding the removal of SMI's attachments from the poles within six months.
In the meantime, the government filed Civil Case No. 0034 against Roberto Benedicto and others before the Sandiganbayan, seeking to recover alleged ill-gotten wealth. Although MERALCO and SMI were not parties to this case, SMI was placed under sequestration as part of the proceedings. SMI then filed an "Urgent Motion for Preliminary Injunction" in the Sandiganbayan, requesting that MERALCO be ordered to allow SMI to continue using the distribution pol...