SC upholds legality of Baguio pay-park law

 BAGUIO CITY  – The Supreme Court upheld the constitutionality of the controversial Baguio pay parking ordinance after it dismissed nine petitions filed by various individuals and groups questioning the legality of the off-street and on-street parking measure.

            In a 49-page decision penned by Chief Justice Maria Lourdes P.A. Sereno, the high tribunal junked the nine petitions questioning the validity of the pay parking ordinance and its derivative memorandum of agreement entered into between the city government and Jadewell Parking Systems Corporation for lack of merit and also being Moot and academic” considering the supposed expiration of the 12-year contracting June 2012.

            However, the SC denied the petition for certiorari filed by the Sangguniang Panlungsod of Baguio questioning an earlier decision of the Court of Appeals (CA) declaring the unilateral act of the city council in rescinding the pay parking agreement as illegal.

            “There is not enough evidence on record to conclude that Jadewell’s violations were sufficient to justify the unilateral cancellation of the pay parking agreement by the city council of Baguio City. At the same time, neither the Regional Trial Court (RTC) nor the CA provided a clear finding whether the breach of the agreement by Jadewell was substantial. We affirm the CA as to the rest of its dispositions in its assailed decision. Nevertheless, no award of damages is hereby made in favor of Jadewell and neither is any pronouncement as to cost,” the decision stressed.

            The city council earlier enacted Ordinance No. 003, series of 20000 amending Ordinance No. 13, series of 1983, outlining the rules and policies on the privatization of the administration of on-street and off-street parking in the city. For this purpose, the City of Baguio authorized the intervention of a private operator for the regulation, charging and collection of parking fees and the installation of modern parking meters among others.

            On 26 June, 2000, the pay parking agreement was finally executed between the city government and Jadewell for the installation, management and operation of the off-street and on-street parking in the city and the same agreement was confirmed by the city council on 17 July 2000.

            Shortly after Jadewell took over the city’s pay parking system scheme, a case was filed by concerned citizens of Baguio with the Regional Trial Court (RTC) Branch 61, assailing the pay parking ordinance as unconstitutional and citing to restrain the city government from implementing the provisions of the agreement, adding that the local government could not delegate the designation of pay parking zones to Jadewell.

            However, the RTC dismissed the complaint and upheld the legality of the pay parking ordinance.

            On 19 February 2002, the city council passed Resolution No. 037, series of 2002 unilaterally rescinding the pay parking agreement between the city government and the pay parking firm. Although the same was vetoed by former Mayor Bernardo M. Vergara, the city council passed an unnumbered resolution overriding the mayor’s veto compelling Jadewell to question the unilateral rescission as violation of due process among others.

            Meanwhile, pending resolution of a case before the CA, the city council passed Resolution No. 089, series of 2003 seeking the assistance of the Department of Transportation and Communication (DOTC) in the Cordillera specifically for it to take immediate action against the officers and personnel of Jadewell for defying the cease and desist order prohibiting the latter from clamping down and/or towing away vehicles.

            On 7 July 2003, the CA rendered a decision affirming the earlier decision of RTC Branch 61 which declared as invalid the city council’s rescission of the pay parking agreement but the council still filed a motion for reconsideration but the same was denied by the CA in a resolution rendered on 04 September 2003.

            “We agree with the Cat when it ruled that Jadewell sought permanent injunction aside from the auxiliary remedy of preliminary injunction, thus, we rule that the CA did not commit any error in treating Jadewell’s [petition for certiorari as an original action for injunction, the decision added.

            The SC said “We have looked closely at Ordinance No. 003-2000 and the agreement and have additionally reflected on the applicable provision under the Civil code. We have come to the conclusions that there is only one provision that allows for unilateral revocation of the agreement and it requires that five years must have lapsed presumably from the writ of execution of the agreement before the unilateral right to revoke the same can be exercised.”

            Aside from dismissing the nine petitions against the constitutionality of the pay parking agreement, the SC also dismissed direct and indirect contempt charges filed by Jadewell against former Mayor Braulio Yaranon, former Mayor Bernardo M. Vergara, former Mayor Reinaldo A. Bautista, Vice Mayor Betty Lourdes F. Tabanda, the members of the city council, namely, Elmer O. Datuin, Antonio R. Tabora, Edilberto B. Tenefrancia, Federico J. Mandpat, Jr., Richard A. Carino, Faustiono A. Olowan, Rufino M. Panagan, Lenadro B. Yangot, Jr., Rocky Thomas A. Balisong, Galo D. Weygan, Perlita L. Cahn-Rondes and Jose M. Molintas as well as Judge Fernando V. Pamintuan.

            Disbarment proceedings against Balisong, Tenefrancia, Olowan, Mandapat, Rondes, Molintas, city legal officer Melchor Carlos P. Rabanes and former Mayor Yaranon were also dismissed by the SC for lack of merit.

            Mayor Mauricio G. Domogan welcomed the SC ruling on the controversial pay parking ordinance and agreement which was repeatedly used as a political issue against him.

            “We have to wait for the finality of the SC decision before we can decide on what move to undertake in order to implement the pay parking system in the city,” Domogan said.