72-hour TRO bars Cebu City from closing SM Seaside
Fearing that the closure of SM Seaside City Cebu is “real and imminent,” the country's largest shopping mall and retail operator yesterday filed a civil petition to compel the Cebu City Government to renew its business permits and that of its tenants.
SM Prime Holdings Inc. (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.
“Mayor Osmeña, right from the very beginning, plotted to cripple or shut down SM Seaside's operations,” read SMPHI's petition.
SM Prime's subsidiary, Shopping Center and Management Corp. (SCMC), and SM Lifestyle Entertainment Inc., SM Prime's educational, sports, and recreational arm, also joined in the petition.
The petitioners, through the Accra Law Firm, seek the issuance of a 72-hour temporary restraining order, preliminary injunction and status quo ante.
P2-million bond
During a brief hearing yesterday afternoon, Executive Judge Gilbert Moises granted SM's application for issuance of a 72-hour TRO, which barred Osmeña, his agents, or his representatives from closing the mall.
“A perusal of the petitioner's allegations together with all its documents in support shows that indeed the mayor has openly shown his intention not to renew petitioners' business permits and close down the latter's operation in the City of Cebu,” read Moises' two-page order.
The judge also ordered SM to pay a bond of P2 million for the restraining order.
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 (OBO) in Cebu City also refused to accept SM Seaside's permits to operate machinery, such as its elevators and escalators.
Refusals
The building officials also refused to accept or act on 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.
“Mayor Osmeña's actions are arbitrary, unjust, oppressive, and contrary to law,” the petitioners said.
The BPLO posted a notice in its office stating that application or payments of SM Prime-owned and affiliated entities are put on hold “until further notice from legal office."
The petitioners said they complied with the requirements of the building code and occupancy permit, but the city officials still refused to renew their business permits.
Jim Palomo, SM Seaside's building administration manager, met with Ylanan, who told him that they cannot accept SM Seaside's application for business permit renewal unless the mayor instructs her.
Last January, Osmeña charged officials of SM Prime with violating Article 318 of the Revised Penal Code (other deceit).
The mayor alleged that SM Prime understated the size of SM Seaside City.
Osmeña said that SM declared that SM Seaside City has a fair market value of only P1.9 billion.
But the City Assessor's Office showed that its fair market value is P3.58 billion.