‘Mega bad faith triggered writ’
Datem had provided sufficient evidence to support its allegation of ‘fraud’ against Megaworld, which justified the issuance of the WPA
Megaworld's failure to comply with provisions of a mutual agreement was the straw that broke the camel's back and led construction firm Datem Inc. to seek legal recourse, said a lawyer for the contractor demanding P873 million in debts from the realty giant.
The Quezon City Regional Trial Court, in an order dated 14 November 2023, issued a writ of preliminary attachment on Uptown Parksuites Towers 1 and 2, Eastwood Global Plaza Corporate Tower and Luxury Residences, One Le Grand Tower, 18 Avenue De Triomphe, and Clark Green Frontier.
RTC Presiding Judge Rochelle Yvette Galano stated in the freeze order that Datem had provided sufficient evidence to support its allegation of "fraud" against Megaworld, which justified the issuance of the WPA. Datem's contract with Megaworld has no arbitration clause, and the only provision that applies in the event of a dispute is to bring it before the court.
Counsel Rufino Policarpio said Datem persisted in settling with Megaworld without resorting to a court battle.
"Datem tried to exhaust all remedies to collect the arrears without resorting to a court case, including the signing of a mutual agreement with Megaworld," Policarpio said, adding that Datem did not want "to burn bridges" in seeking an amicable settlement.
"The standard contracts used by the majority of developers and project owners conform to an international practice. Common to them is the arbitration clause that Datem's contracts with Megaworld for the past years did not have," the lawyer told DAILY TRIBUNE.
"Arbitration is a special way of settling disputes, which in the Philippines is done through the Construction Industry Arbitration Commission," he said.
"Instead of going to the regular courts, the dispute is coursed through the CIAC, which is a faster process that takes three months compared to years in the regular courts," he added.
Datem has had 20 huge contracts with Megaworld since 2011, including the five projects covered by the WPA.
Among the completed and accepted projects are the 8 Campus, Venice Corporate Center and Venice Canal Mall, Belmont Hotel (Hamilton Hotel), Two Central, Three Central, One Uptown Residence and Uptown Ritz. Datem completed 12 projects in 10 years without any issues from them or buyers.