Case Summary (G.R. No. 224131-32)
Facts and Antecedent Proceedings
On November 24, 2006, Mac Graphics entered into a lease agreement with Makro, designating specific billboard sites in Quezon City and Makati for advertising purposes. The lease stipulated that Mac Graphics was responsible for obtaining all necessary permits and insurance to utilize these properties. Upon a failure by Mac Graphics to secure the necessary permits, particularly from the Metro Manila Development Authority (MMDA) and comprehensive insurance, Makro unilaterally terminated the lease agreement on October 6, 2008. Mac Graphics contested this termination, asserting compliance with its obligations and citing legal grounds for remediation.
Regional Trial Court Ruling
The RTC, after reviewing the evidence and arguments from both parties, granted Mac Graphics' motion for a Writ of Preliminary Mandatory Injunction (WPMI). The court determined that Makro terminated the lease contract without allowing Mac Graphics a reasonable opportunity to remedy alleged violations, thus affirming that Mac Graphics had an existing right to the lease despite the termination.
Court of Appeals Ruling
SMIC and PMI sought to challenge the RTC’s rulings by filing petitions for certiorari in the Court of Appeals (CA), asserting that the RTC had committed grave abuse of discretion. The CA upheld the RTC's finding that Mac Graphics demonstrated sufficient legal grounds for obtaining a WPMI, maintaining that the injuries suffered by Mac Graphics could not be adequately addressed through mere monetary compensation, which led the CA to affirm the RTC’s decisions.
Supreme Court's Ruling
The Supreme Court ultimately reviewed the case and determined that the issuance of a WPMI was improper. The Court emphasized the necessity for the applicant to demonstrate a clear and unmistakable right to warrant injunctive relief. It found that because Mac Graphics’ rights were substantially contested by PMI’s defenses, a genuine doubt existe
...continue readingCase Syllabus (G.R. No. 224131-32)
Background of the Case
- The case involves petitions for review on certiorari under Rule 45 of the Rules of Court by SM Investments Corporation (SMIC) and Prime Metroestate, Inc. (PMI) against the Decision and Resolution of the Court of Appeals (CA) dated December 22, 2015, and March 31, 2016, respectively.
- The CA denied the petitions for certiorari filed by SMIC and PMI, which contested the Regional Trial Court's (RTC) Orders regarding a lease contract dispute with Mac Graphics Carranz International Corp. (Mac Graphics).
Facts and Antecedent Proceedings
- On November 24, 2006, Mac Graphics entered into a 20-year Contract of Lease with Pilipinas Makro, Inc. (Makro) for billboard sites in Quezon City and Makati.
- The lease stipulated various provisions, including the responsibility of Mac Graphics to secure necessary permits and insurance.
- Makro, of which SMIC had substantial ownership, terminated the lease on October 6, 2008, citing Mac Graphics' failure to obtain required permits and comprehensive insurance.
- Mac Graphics objected to the termination and filed a complaint against Makro and SMIC in 2009, seeking a permanent injunction, declaration of contract subsistence, and damages.
The RTC Ruling
- The RTC granted