Home of ChanRobles Virtual Law Library

 

Home of Chan Robles Virtual Law Library

www.chanrobles.com

PHILIPPINE SUPREME COURT DECISIONS

SECOND DIVISION

[G.R. Nos. 167583-84 : June 16, 2010]

ARTISTICA CERAMICA, INC., CERALINDA, INC., CYBER CERAMICS, INC. AND MILLENNIUM, INC., PETITIONERS, VS. CIUDAD DEL CARMEN HOMEOWNER'S ASSOCIATION, INC. AND BUKLURAN PUROK II RESIDENTS ASSOCIATION, RESPONDENTS.

D E C I S I O N


PERALTA, J.:

Before this Court is a petition for certiorari,1 under Rule 65 of the Rules of Court, seeking to set aside the January 4, 2005 Decision2 and March 18, 2005 Resolution3 of the Court of Appeals (CA), in CA-G.R. SP No. 70473 and CA-G.R. SP No. 71470.

The facts of the case are as follows:

Petitioners Artistica Ceramica, Inc., Ceralinda, Inc., Cyber Ceramics, Inc., and Millennium, Inc., are corporations located in Pasig City and engaged in the manufacture of ceramics. Petitioners’ manufacturing plants are located near the area occupied by respondents Ciudad Del Carmen Homeowner's Association, Inc., and Bukluran Purok II Residents Association.

Sometime in 1997, respondents sent letter complaints4 to various government agencies complaining of petitioners’ activities. The complaints stemmed from the alleged noise, air and water pollution emanating from the ceramic-manufacturing activities of petitioners.  In addition, respondents also complained that the activities of petitioners were both safety and fire hazards to their communities. As a result of the complaints filed, Closure Orders and Cease-and-Desist Orders5 were issued against the operations of petitioners.

In order to amicably settle the differences between them, petitioners and respondents entered into two agreements. The first agreement was the June 29, 1997 Drainage Memorandum of Agreement6 (Drainage MOA) and the second was the November 14, 1997 Memorandum of Agreement7 (MOA).  Embodied in the Drainage MOA was the commitment of petitioners to construct an effective drainage system in Bukluran Purok II.  The MOA, on the other hand, was an agreement by respondents to cause the dismissal of all the complaints filed by them against petitioners in exchange for certain undertakings during the lifetime of the MOA. Among the undertakings agreed to by petitioners are the following: 1) the cessation of their manufacturing activities on or before May 7, 2000; 2) the putting up of an Environmental Guarantee Fund in accordance with the guidelines prescribed by the Department of Energy and Natural Resources; 3) the furnishing of a performance bond; and 4) and the creation of an Arbitration and Monitoring Committee.

On July 17, 2000, respondents filed with the Arbitration Committee a Complaint8 alleging the failure of petitioners to comply with the terms of the agreement. On April 2, 2002, the Arbitration Committee rendered a Decision,9 the dispositive portion of which reads:

WHEREFORE, PREMISES CONSIDERED, THE ARBITRATION COMMITTEE hereby promulgates the following findings and rulings:

On the matter of the allowances for the representatives of the Residents Associations, pending the resolution of the instant case, the Mariwasa Subsidiaries have paid the aforesaid allowances.

On the contribution of the Mariwasa Subsidiaries in the amount of P300,000.00 for the construction of the chapel/multi-purpose hall as referred in Annex B
HomeJurisprudenceSupreme Court Decisions1991 : Philippine Supreme Court DecisionsTop of Page