Even with a convenio or an old compromise agreement, Cebu City still couldn’t secure a favorable ruling in its lot dispute case with the Rallos heirs.
In a ruling dated last Jan. 26, Regional Trial Court (RTC) Judge James Himalaloan said he found “no meritorious ground” to rescind the ruling mandating the city to pay P133 million to the Rallos family for their lot that was expropriated as a road in 1963.
“The alleged newly-discovered evidence of the defendant is not a supervening event that transpired after judgement of the case which became final and executory,” the judge explained.
Himalaloan also deemed as “moot and academic” the Ralloses motion to strike out the city’s motion for reconsideration.
The judge mandated Sheriff Eugenio Fuentes to decide on whether or not to push through with the auction of 9.7 hectares of the SRP.
City Hall lawyers claimed that the convenio would prove that the Ralloses donated the subject lot to the city government.
The city, through former Cebu City councilor Jocelyn Pesquera, discovered last July 2011 an old convenio or a compromise agreement between feuding descendants of the Rallos family in the 1940s.
Imprimatur
The compromise involved donating the road in Sambag II to the Cebu City government.
But it was not taken into consideration by the court, which ruled on the case years ago.
City lawyers mentioned about the convenio during a court hearing last year. But the document failed to convince the court.
Himalaloan noted that the convenio was dated back in 1940 and bore the imprimatur by the defunct Court of First Instance.
“Despite that, the city government did not take it up while the case was still being litigated,” he said.
A portion of the South Road Properties (SRP) was placed on public auction after the city government refused to settle the claim of the Rallos family.
But the family was required to put up an indemnity bond of P1.2-billion sought by Filinvest Land Inc.
Legal action
The amount represents Filinvest’s development costs for the lot, part of a P25-billion joint venture (JV) agreement with Cebu City.
The money will be set aside in case Filinvest seeks legal action in the future.
Lawyer Jade Ponce, a legal consultant of Cebu City Mayor Michael Rama, said they have yet to receive a copy of the latest court order denying their motion for reconsideration on the Rallos case.
He said the judgment became final before the discovery of the September 1940 convenio and the October 1940 decision.
“Before its discovery from the Court’s own archives, the City had no idea of its existence,” Ponce said.
Ponce said the city government maintains that the subject lots were donated freely and voluntarily by Fr. Vicente Rallos and others 71 years ago or about two years before World War II.
“That these lots were given is reflected in the “convenio”, a written compromise settlement among the original Ralloses wherein, among others, it has been expressly provided that these road lots shall be constructed as roads…,” he said.
Ponce said the “convenio” formed the basis for the decision of the Court of First Instance (now the RTC) dated October 18, 1940.
Ponce said the city can still file a petition to annul the court ruling before the Court of Appeals. /Ador Vincent Mayol, Reporter