Ad firm wins legal battle vs MMDA
12/20/2009 | 04:38 PM
An advertising firm has won its legal battle against the Metro Manila Development Authority (MMDA) in connection with the billboards and signages it posted in the premises of line 3 of the Metro Rail Transit (MRT-3).
This was after the Supreme Court, in a nine-page resolution, ruled that the MMDA has no authority to dismantle the advertisements put up by Trackworks Rail Transit Advertising, Vending and Promotions, Inc. in the premises of MRT-3, which runs through EDSA.
The ruling, penned by Associate Justice Lucas Bersamin, was a dismissal of the MMDA petition seeking to nullify the rulings of the Court of Appeals and the Pasig Regional Trial Court that permanently enjoined the agency from removing the advertisements.
In its ruling, the SC’s First Division said MMDA’s Regulation No. 96-009 does not cover the MRT-3 structure because it is a private property owned by the MRT Corp. under a build-operate-transfer contract.
The assailed resolution prohibits the posting, installation and display of any kind of form of billboards, signs, posters, streamers, professional service advertisements and other visual clutters in any part of the road, sidewalk, center island, posts, trees, park and open space.
According to the SC, the directive does not apply to the advertising materials installed by Trackworks on MRT-3 since it cannot be considered as a “center island."
“It is futile for MMDA to simply invoke its legal mandate to justify the dismantling of Trackworks’ billboards, signages and other advertising media. MMDA simply had no power on its own to dismantle, remove, or destroy the billboards, signages and other advertising media installed on the MRT structure by Trackworks," the SC ruled.
The SC explained that Trackworks derived its right to install its billboards and signages in the MRT 3 from MRT Corp’s authority under the build-lease-transfer (BLT) agreement.
Under the BLT agreement, MRT Corp. owned the MRT-3 for 25 years, upon expiration of which MRTC would transfer ownership of the MRT-3 to the government.
The Court stressed since MRT Corp. remained to be the owner of the MRT-3, its contract for advertising services with Trackworks “was a valid exercise of ownership by the former." - KBK, GMANews.TV
This was after the Supreme Court, in a nine-page resolution, ruled that the MMDA has no authority to dismantle the advertisements put up by Trackworks Rail Transit Advertising, Vending and Promotions, Inc. in the premises of MRT-3, which runs through EDSA.
The ruling, penned by Associate Justice Lucas Bersamin, was a dismissal of the MMDA petition seeking to nullify the rulings of the Court of Appeals and the Pasig Regional Trial Court that permanently enjoined the agency from removing the advertisements.
In its ruling, the SC’s First Division said MMDA’s Regulation No. 96-009 does not cover the MRT-3 structure because it is a private property owned by the MRT Corp. under a build-operate-transfer contract.
The assailed resolution prohibits the posting, installation and display of any kind of form of billboards, signs, posters, streamers, professional service advertisements and other visual clutters in any part of the road, sidewalk, center island, posts, trees, park and open space.
According to the SC, the directive does not apply to the advertising materials installed by Trackworks on MRT-3 since it cannot be considered as a “center island."
“It is futile for MMDA to simply invoke its legal mandate to justify the dismantling of Trackworks’ billboards, signages and other advertising media. MMDA simply had no power on its own to dismantle, remove, or destroy the billboards, signages and other advertising media installed on the MRT structure by Trackworks," the SC ruled.
The SC explained that Trackworks derived its right to install its billboards and signages in the MRT 3 from MRT Corp’s authority under the build-lease-transfer (BLT) agreement.
Under the BLT agreement, MRT Corp. owned the MRT-3 for 25 years, upon expiration of which MRTC would transfer ownership of the MRT-3 to the government.
The Court stressed since MRT Corp. remained to be the owner of the MRT-3, its contract for advertising services with Trackworks “was a valid exercise of ownership by the former." - KBK, GMANews.TV
