By Dominique Gabriel G. Bañaga
The Negros Occidental provincial government will be paying the owners of a hotel in Bacolod City over the demolition of its fourth floor in 1994.
Provincial administrator Atty. Rayfrando Diaz said the provincial government will pay P12 million in damages to Sugarland Hotel, as the Supreme Court (SC) cited that the hotel’s top floor did not constitute an obstruction to aerial navigation.
The P12 million payment was recently approved by the Sangguniang Panlalawigan and the Provincial Development Council.
Based on court records obtained by the local media, in May 1994, Panfilo Villaruel Jr., former chief of the Air Transportation Office (ATO), now known as the Civil Aviation Authority of the Philippines, ordered the closure of the Bacolod City Domestic Airport, claiming that Sugarland Hotel’s third and fourth floors, as well as the informal settlers, were creating obstruction to aerial navigation.
A memorandum of agreement for the demolition was signed by the ATO, the Bacolod City government, the provincial government, and the management of the Sugarland Hotel.
However, the whole hotel was affected by the demolition of the fourth floor, as concrete debris fell on the lower floors.
The establishment was forced to close and suspend operations on August 1, 1994, and was able to resume business three years later.
The SC affirmed an earlier Court of Appeals’ decision on November 15, 2007, and resolution dated March 25, 2008, on the award of damages in favor of Sugarland Hotel.
The court also ordered the city and the provincial governments to pay P4 million and P3.6 million, respectively, which represents the value of the demolished fourth floor, including a six percent interest per annum computed from November 21, 1994, until fully paid.
It also imposed P1 million as moral damages, including six percent interest per annum, another P1 million as exemplary damages with six percent interest per annum, as well as P600,000 in attorneys’ fees, also with six percent interest per annum on the finality of the decision.
The decision was made by Associate Justice Rodil Zalamida.
The Bacolod City government is now looking for its source of funds for payment./DGB, WDJ