Title
Republic vs. Power Ads Intelli-Concepts Advertising and Production Corp.
Case
G.R. No. 243931
Decision Date
Jul 14, 2021
The Philippines contested a CA decision upholding an RTC injunction favoring Power Ads, which sought to prevent the demolition of its unpermitted billboard. The SC reversed, ruling Power Ads lacked a clear legal right and failed to prove irreparable injury.

Case Summary (G.R. No. 243931)

Applicable Law

The legal foundation for the case centers around the provisions of the National Building Code of the Philippines (Presidential Decree No. 1096), along with its implementing rules and regulations. The constitutional framework for this case is based on the 1987 Philippine Constitution, applicable given the decision date in 2021.

Antecedents

On August 31, 2010, a Memorandum of Agreement between the DPWH and the MMDA was established, enabling the latter to enforce specific provisions of the National Building Code related to regulated signs within Metro Manila. Following this agreement, the MMDA issued a circular outlining the guidelines for the clearance of advertising materials. Power Ads received a notice from the MMDA to demolish its billboard for operating without the required clearance. In reaction, Power Ads sought legal protection through a Petition for Prohibition and Injunction in the Regional Trial Court (RTC), challenging the validity of MMDA's regulations as excessive delegations of regulatory authority.

Initial Court Rulings

The RTC granted Power Ads a temporary restraining order (TRO), leading to subsequent motions and hearings concerning a preliminary injunction. On May 11, 2016, the RTC issued a writ of preliminary injunction against the DPWH and MMDA, which was met with rejection of motions for reconsideration from the petitioners, prompting the Republic to file a petition for certiorari with the Court of Appeals.

Ruling of the Court of Appeals

The Court of Appeals upheld the RTC's decision, asserting that there was no grave abuse of discretion noted in the lower court's ruling. It supported Power Ads' position, considering the validity of the predecessor’s permit and the potential violation of property rights, as Power Ads argued that it had a vested right in the billboard since it had attained the necessary permits prior to the issuance of the questioned regulations.

Arguments by the Republic

The Republic contested the legality of the preliminary injunction, arguing that Power Ads failed to demonstrate a clear legal right to the billboard site, emphasizing that the billboard was erected without valid permits. This included testimonies indicating that the purported permits were found to be invalid. The Republic asserted that advertising permits are privileges granted by the state, contingent on compliance with relevant laws.

Response from Power Ads

Power Ads countered that the Republic had alternative remedies besides demolition and that an ordinance lifting the moratorium on billboards should render the petition moot. It further claimed that the MMDA had illegally delegated its regulatory powers and did not follow due process in enforcing the demolition of Power Ads’ billboard.

Sole Legal Issue

The critical legal question for determination was whether the Court of Appeals erred in concluding that the RTC did not exhibit grave abuse of discretion in granting the writ of preliminary injunction.

Court's Analysis and Ruling

The Supreme Court found that the Court of Appeals had indeed erred by failing to recognize the RTC's grave abuse of discretion. It noted that Power Ads had not successfully establis

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