• GILBERT P. BAYORAN
In compliance with the decision rendered by the Supreme Court, the provincial government of Negros Occidental paid more than P11 million in damages to the Sugarland Hotel in Bacolod City, for the demolition of its fourth floor in 1994.
Atty. Rayfrando Diaz, provincial administrator, yesterday said that the final decision was issued by the Supreme Court early this year.
Diaz, however, said it took time for the provincial government to process the payment, stressing that it should be approved by the Provincial Development Council, and with the concurrence of the Sangguniang Panlalawigan, once the money was available.
He added that the management of the Sugarland Hotel “convinced the Supreme Court that the Bacolod City government and provincial government of Negros Occidental were liable for damages on the fourth floor.”
Court records obtained by the media show that in May 1994, Panfilo Villaruel Jr, chief of the Air Transportation Office (now the Civil Aviation Authority of the Philippines) and assistant secretary of the Department of Transportation and Communication (DOTC) ordered the closure of the Bacolod City Domestic Airport citing the presence of the third and fourth floors of the Sugarland Hotel and informal settlers around the vicinity of the airport that he said were “obstructions to aerial navigation.”
Documents also showed that a memorandum of agreement was signed by representatives of ATO, Bacolod City government, the provincial government, and the owner of the hotel.
It was agreed that a re-survey of the height of the hotel will be undertaken and the owner will have it demolished, but the city and provincial government will shoulder the cost of the demolished portion of the building.
The SC decision affirmed an earlier decision of the Court of Appeals on November 15, 2007 and resolution dated March 25, 2008 on the award of damages in favor of Sugarland Hotel.
It ordered the Bacolod City government to pay P4 million while the provincial government to pay P3.6 million, which represents the value of the demolished 4th floor, plus six percent interest per annum, computed from November 21, 1994 until fully paid.
It also imposed P1 million as moral damages plus six percent interest per annum from finality of the decision; Another P1 million as exemplary damages plus six percent interest per annum; Another P600,000 as attorneys fees plus six percent per annum from finality of the decision.
The decision was made by Associate Justice Rodil Zalamida.*
