G.R. No. 204452 - Metro Rail Transit Development Corp. vs. Trackworks Rail Transit Advertising, Vending and Promotions, Inc.

On August 8, 1997, the DOTC and Metro Rail Transit Corporation Limited (MRT) entered into a Build-Lease-and-Transfer Agreement for Phase 1 of the MRT-3 along EDSA.
Subsequently, DOTC, MRT, and Metro Rail Transit Development Corporation (MRTDC) executed a contract granting MRTDC rights to develop and obtain income from commercial premises and advertising rights in MRT-3 stations.
On October 27, 1998, MRTDC and Trackworks Rail Transit Advertising, Vending and Promotions, Inc. (Trackworks) entered into a five-year Contract for Advertising Services whereby Trackworks would manage advertisements related to MRT-3 and pay MRTDC minimum guaranteed amounts and revenue shares.
On March 11, 2005, the contract was renewed to extend to 10 years with increased minimum guarantees.

Trackworks defaulted on payments, prompting MRTDC on April 1, 2009, to demand payment of approximately P277 million.
According to the contract’s Section XIII, in case of default, the non-defaulting party can issue notice to cure and subsequently terminate if uncured within 30 days.
MRTDC sent a Notice of Termination on September 1, 2009, due to Trackworks’ persistent defaults.

Trackworks filed a Complaint with Application for Temporary Restraining Order before the RTC of Pasig City (Civil Case No. 77291-PSG) on November 23, 2009, praying for arbitration and to restrain MRTDC from terminating the contract and related acts.
On January 4, 2010, RTC of Pasig denied preliminary injunction but ordered submission to arbitration and stayed proceedings pending arbitration award.
Subsequent motions for injunctive relief by Trackworks were denied by RTC of Pasig.
On April 28, 2010, Trackworks filed a Petition for Certiorari, Prohibition and Mandamus under Rule 65 before the RTC of Makati City (Civil Case No. 10-414), seeking to restrain MRTDC and others from acts related to the contract termination.
RTC of Makati issued a TRO and later granted a writ of preliminary injunction by June 14, 2012.
MRTDC filed a Petition for Certiorari before the Court of Appeals (CA) assailing the RTC of Makati's orders.
The CA initially granted MRTDC’s petition on July 30, 2012, annulling RTC of Makati’s orders and dismissing Civil Case No. 10-414, citing the doctrine of judicial stability and litis pendentia because a similar case was pending in RTC of Pasig City.
Upon Trackworks’ motion for reconsideration, CA reversed its decision on November 9, 2012, dismissing MRTDC’s petition as moot due to RTC of Makati’s June 14, 2012 Decision establishing a permanent injunction.

Philippine Dispute Resolution Center, Inc. (PDRCI) issued a final arbitral award on January 15, 2013 favoring MRTDC.
RTC of Pasig confirmed the arbitral award, and writ of execution was issued on June 13, 2013 against Trackworks.

Whether the Petition for Certiorari filed by MRTDC before the CA was rendered moot by the RTC of Makati City’s June 14, 2012 Decision.
Whether the RTC of Makati City had jurisdiction to entertain Trackworks’ Petition for Certiorari, Prohibition and Mandamus despite the pendency of a similar case before the RTC of Pasig City.
Whether the doctrine of judicial stability and litis pendentia applies to the conflicting decisions of RTC of Makati and RTC of Pasig regarding the injunctive relief sought by Trackworks.