Title
Manila Electric Co. vs. Sandiganbayan
Case
G.R. No. 102355
Decision Date
May 31, 1994
The Sandiganbayan will evaluate its jurisdiction and the applicability of a compromise agreement regarding the dispute over distribution pole usage between MERALCO and SMI.
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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

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