PrimeWater has scored a major legal victory after a Regional Trial Court issued an injunction halting the planned takeover of the San Jose del Monte water system, dealing a significant setback to wrest control of the utility’s operations.

Clear contractual right established

In a 35-page resolution, the court found that PrimeWater had established a clear contractual right under its Joint Venture Agreement (JVA) with the San Jose del Monte Water District and ruled that the company’s rights warranted protection while the case is being litigated.

The dispute stemmed from moves by city officials who declared a state of emergency in water services and pushed measures authorizing the local government to assume operation and management of the city’s water and sewerage system.

Court records showed that local authorities had already advanced takeover preparations through resolutions, ordinances, notices and transition measures.

These included operational coordination activities, requests for access to facilities and records, and discussions involving a potential replacement operator.

PrimeWater JVA a valid and binding contract

But the court said PrimeWater’s JVA remains a valid and binding contract, underscoring that the agreement carries enforceable rights and obligations that cannot simply be brushed aside.

The court further found that the challenged actions posed a “real and immediate threat” to PrimeWater’s business, operations, reputation, contractual rights, and workforce, providing sufficient grounds for injunctive relief.

Under the order, city officials, the San Jose del Monte Water District, and their agents are barred from taking over or exercising operational control of water facilities, systems, records, billing and collection operations, and other day-to-day functions.

Resolution and ordinances implemention stopped

The court also stopped the implementation of resolutions and ordinances tied to the proposed takeover while the case remains pending.

While the injunction does not settle the underlying dispute, it effectively freezes the city’s takeover bid and preserves the status quo until the court rules on the merits of PrimeWater’s challenge.

In a statement Monday, however, the City Government of San Jose del Monte said it would pursue available legal remedies, describing the case as PrimeWater’s third attempt to block the city’s efforts to address water distribution problems.