Title
Supreme Court
General Mariano Alvarez Services Cooperative, Inc. vs. National Housing Authority
Case
G.R. No. 175417
Decision Date
Feb 9, 2015
NHA transferred water system management to GMAWD; GEMASCO contested, but SC upheld transfer, ruling public water assets exempt from auction.

Case Summary (G.R. No. 135123)

Background of the Cases

The origins of the dispute trace back to May 9, 1979, when the Bureau of Public Works (BPW) transferred a completed water works system to the NHA, which subsequently turned it over to SAGAWESECO (now GEMASCO) through a Memorandum of Agreement. Internal conflicts within GEMASCO led to NHA's intervention and the eventual transfer of management to GMAWD under a Deed of Transfer and Acceptance on January 10, 1992. In response, GEMASCO filed a complaint for damages challenging the validity of the Deed, leading to the present petitions.

Procedural History

The Quezon City Regional Trial Court (RTC) ruled in favor of the NHA and GMAWD on June 15, 1999, affirming the validity of the Deed. GEMASCO subsequently appealed this decision to the Court of Appeals (CA), which dismissed the appeal and affirmed the RTC's ruling. Concurrently, issues regarding labor cases against GEMASCO, resulting in an order for payment to illegally dismissed employees, complicated matters, leading to further litigation.

Key Issues in G.R. No. 175417

In G.R. No. 175417, GEMASCO questions the legality of the Deed of Transfer and Acceptance. The core argument focuses on whether the transfer to GMAWD was valid, given the problematic management history of GEMASCO. However, it was established that the NHA retained the authority to revoke the management transfer due to GEMASCO's inability to satisfactorily manage the water works system.

Key Issues in G.R. No. 198923

In G.R. No. 198923, GMAWD contests the CA's ruling that permitted a Writ of Execution related to labor claims against GEMASCO to include water tanks owned by GMAWD. GMAWD contends that the execution process violates its property rights, emphasizing the public necessity of the water works system, which serves the community at large.

Jurisdictional Limitations and Legal Principles

The Supreme Court limited its review in G.R. No. 175417 to questions of law, emphasizing that it does not reevaluate factual determinations made by lower courts. The Court noted that GEMASCO's arguments predominately raised factual issues rather than legal questions, which unusually limits its appeal under Rule 45.

Public Policy Considerations

The water works system, including the disputed water tanks purportedly owned by GMAWD, constitutes properties of public dominion, intended for public use. The Supreme Court emphasized that properties of public dominion are not liable to

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