City, SM come up with compromise
The management of SM Seaside City Cebu can continue the mall’s operation, at least until the Cebu City Government acts on their business permit renewal applications on April 20.
In a hearing yesterday, the City Legal Office and the counsels for SM Prime Holdings Inc. (SMPHI) told Judge Alexander Acosta that they have entered into a compromise agreement, which states that the City will not issue any closure order against the mall until April 20.
This means that SM Seaside has more than one month to comply with the required documents for the renewal of their business permit.
Because of the compromise deal, Acosta, who is the Regional Trial Court Branch 9 presiding judge, ruled that SM’s application for the issuance of a 20- day temporary restraining order became moot.
Yesterday’s hearing was a continuation of the hearing of SMPHI’s civil petition that seeks to compel the City to renew its business permits and those of its tenants.
Last March 7, SMPHI, the parent company of the SM Group’s shopping malls, filed the petition for mandamus and prohibition against Mayor Tomas Osmeña, City Treasurer Tessie Camarillo and City Engineer Josefa Ylanan.
SMPHI’s subsidiary, Shopping Center and Management Corp. (SCMC) and SM Lifestyle Entertainment Inc., which is SM’s educational, sports, and recreational arm, also joined in the petition.
The petitioners, through the Accra Law Firm, sought the issuance of a 72-hour temporary restraining order (TRO), preliminary injunction and status quo ante.
Last March 7, Executive Judge Gilbert Moises granted SM’s application for a 72-hour TRO, which barred Osmeña, his agents, or his representatives from closing the mall.
The restraining order will end today.
The petition came after Osmeña reportedly directed the Business Permit Licensing Office (BPLO) not to accept the applications for renewal of business permits of SM Seaside, its affiliates, and tenants for 2017.
The Office of the Building Official in Cebu City also refused to accept SM Seaside’s permits to operate machinery, such as its elevators and escalators, as well as the applications submitted by SM Seaside’s tenants for building and related ancillary permits.
The City’s zoning board also refused to accept applications by SM Seaside’s tenants for locational clearance.
The SMPHI said they complied with requirements of the building code and occupancy permit, but the City still refused to renew their business permits.
During the hearing, the City Legal Office presented Claire Cabalda, head of the BPLO, as their witness.
Cabalda said they issued a show cause order to the mall amd cited violations of SM Seaside’s building permit.
Chrysilla Carissa Bautista, who is the counsel for SMPHI, opted not to cross-examine Cabalda.
She also agreed to withdraw their application for the issuance of a 20-day restraining order, but without prejudice to their injunctive relief application.
On the other hand, Judge Acosta ordered the release of the P2-million bond posted by SM.
The judge also gave the city lawyers 30 days to submit their comment on the petitioners’ plea for mandamus and prohibition.
The court has set the hearing on SMPHI’s main petition on May 2. /