Title
Addition Hills Mandaluyong Civic and Social Organization, Inc. vs. Megaworld Properties and Holdings, Inc.
Case
G.R. No. 175039
Decision Date
Apr 18, 2012
Megaworld secured permits for a condominium project in Mandaluyong, challenged by AHMCSO in court. Supreme Court upheld HLURB's jurisdiction, ruling AHMCSO failed to exhaust administrative remedies before filing.

Case Summary (G.R. No. 175039)

Background of the Case

Megaworld Properties was the registered owner of a parcel of land in Addition Hills, Mandaluyong City, and had begun planning the development of the Wack-Wack Heights Condominium. The company secured various clearances necessary for the construction, including a Certificate of Locational Viability (CLV), Development Permit, Environmental Compliance Certificate (ECC), Building Permit, and Barangay Clearance. The AHMCSO later filed a complaint seeking the annulment of these permits on the grounds of their alleged impropriety and non-compliance with zoning regulations.

Proceedings in Regional Trial Court

Following the filing of the complaint against Megaworld's permits, the Regional Trial Court (RTC) of Pasig issued a decision on September 10, 1998, ruling in favor of AHMCSO. The RTC declared the permits issued to Megaworld void, ordering the company to rectify its project in accordance with the residential zoning requirements of Mandaluyong City.

Appellate Review by the Court of Appeals

Megaworld appealed the RTC's ruling to the Court of Appeals, which issued a decision on May 16, 2006, reversing the trial court's judgment and dismissing the complaint filed by AHMCSO. The Court of Appeals reasoned that AHMCSO had failed to exhaust the available administrative remedies before seeking judicial intervention.

Legal Issues Presented

The petitioner raised several issues, including whether the Court of Appeals erred in finding that AHMCSO did not exhaust administrative remedies and whether the HLURB had jurisdiction over the matters involved. Megaworld also contended that the petition for review was fatally defective for being improperly verified, and that the trial court's decision contradicted established laws and facts.

Exhaustion of Administrative Remedies

The Supreme Court emphasized the principle of exhaustion of administrative remedies, which mandates that individuals must first pursue all available remedies within the administrative framework before seeking judicial intervention. Here, AHMCSO failed to present the matter to the HLURB, which had the authority to review the legality of the permits in question.

Findings of the Supreme Court

The Supreme Court affirmed the Court of Appeals’ ruling, holding that AHMCSO did not exhaust its administrative remedies, as the proper course would have involved filing a complaint before the Housing and Land Use Arbiter (HLA).

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