SM Prime said it would continue the fight to have the government recognize a deal where, in exchange for a P200-million grant, the firm was given naming rights to the station, to be located in front of the SM North EDSA Mall in Quezon City. The government, however, has said that the station will now be built in front of the nearby Ayala-owned Trinoma Mall, noting that doing so would lead to some P1 billion in savings.
A Pasay regional trial court, in denying SM Prime’s petition, cited Republic Act 8975 that prevents any tribunal, except the Supreme Court, from halting a national government project.
“SM Prime will now focus on its main and more important case, where it seeks to enforce its rights under the valid and legally binding memorandum of agreement, the existence of which has been duly admitted by both the Transportation department and Light Rail Transit Authority (LRTA) in court,” said Ryan C. San Juan, SM Prime vice-president, in a statement.
Transportation department and LRTA officials were not immediately available for comment. The department has said that it is looking to auction off the P1.4-billion Common Station project this December despite the row with SM Prime.
SOURCE: Businessworld
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