The Sandiganbayan has ordered Northstar Shipping and Marine Services Inc. (NSMSI) to pay about P17.7 million in unpaid amortizations and back rentals and vacate a property owned by Bataan Shipyard & Engineering Co. Inc. (Baseco).

In a decision dated 17 August, the Sandiganbayan Special Second Division ruled in favor of Baseco, represented by the Presidential Commission on Good Government, in an unlawful detainer case against Northstar.

The dispute stemmed from Northstar’s lease of a property at Engineer Island in Port Area, Manila, which was initially contracted on 20 October 2006.

In January 2024, Baseco demanded that Northstar settle P3.88 million in unpaid real property taxes involving improvements constructed on the leased premises.

Baseco subsequently sent additional demands alleging violations of several lease provisions and delayed payments.

Northstar denied in an August 2024 letter that it was behind on monthly rentals and amortizations, while requesting additional time to pay its share of the real property taxes.

The Sandiganbayan, however, found that Northstar committed “material violations of the lease contracts” by failing to comply with Baseco’s payment demands.

“All told, in light of the material violations of both the monetary and non-monetary provisions of the lease, the defendants' right of possession, though initially lawful by virtue of a valid lease agreement, has become illegal upon due notice of the termination of the lease,” the court said.

The court ordered Northstar to immediately vacate and peacefully surrender the property.

Northstar was also ordered to pay P10.82 million in unpaid monthly amortizations covering July 2024 to August 2026 and another P6.89 million in back rentals from March 2025 to August 2026.

The court likewise ordered Northstar to pay the Office of the Solicitor General an amount equivalent to five percent of the total monetary award granted to the complainant.