Court cancels garnishment on city deposits, SRP lots

The Cebu City government scored a legal victory in its property dispute with the Rallos heirs.

Judge Alexander Acosta of the Cebu City Regional Trial Court branch 9 ordered the cancellation of the memoranda of encumberances and the notice of lis pendens on two parcels of land at the South Road Properties (SRP). The lots were being developed by Filinvest Land Inc.

Acosta also ordered the cancellation of the notice of garnishment on Cebu City’s deposits in the Philippine Postal Bank worth P124 million.

In his  order dated Aug. 27, Acosta favored the city’s appeal for reconsideration against the issuance of the notices of lis pendens and garnishment on Cebu City’s lots and bank deposits.

But the city’s appeal on the RTC order for payment of P133 million to the Rallos heirs remain pending before the Supreme Court.

Withdrawal

Mayor Michael Rama announced the court’s decision in a press conference  yesterday, more than two hours after his office was furnished a copy of the court order.

He said he will meet with the city’s lawyers to finalize plans to withdraw the city’s deposits with the Postal Bank “because the bank cannot take care of our accounts.”

Acosta issued a notice of garnishment which resulted in the tagging of P124 million of the city’s deposits with Postal Bank on Sept. 27 and 28 respectively.

The judge ruled in favor of the heirs of Rev Fr. Vicente Rallos who filed a civil suit against the city.

The Rallos heirs claimed payment from the city for use of the Sambag lot property that the family owned.

While former congressman Tomas Osmeña pushed for the payment of more than P100 million to the Rallos heirs, Rama insisted on disputing the family’s claim.

A convenio or written agreement produced by former councilor Jocelyn Pesquera which showed that the Rallos heirs donated the lot to the city was used as basis for the city government’s contention.

But Judge Acosta recalled his orders after “careful scrutiny” of the city’s records and laws.

Rama said he is hopeful that Acosta’s order would convince the City Council to make it easy for him to dispose of more SRP lots to generate additional revenues for the city. /Doris C. Bongcac, Chief of Reporters