SUBIC BAY FREEPORT -Taiwanese firm Universal International Group Development Corp. (UIGDC), the former operator of the Subic Bay golf course, has lost the case it filed against the Subic Bay Metropolitan Authority (SBMA) and a Korean-Filipino company that has taken over the management of the golf facility last year.

This, as Judge Rosemary Bautista of the Municipal Trial Court in Cities (MTCC) in Olongapo cleared the SBMA and Hanafil Golf and Tour Inc. (Hanafil) of charges of "forcible entry" that was filed by the UIGDC after its eviction from the property.

Judge Bautista, who presides over Branch 3 of the MTCC, issued the ruling against the UIGDC on June 18, after finding the Taiwanese company guilty of "forum shopping and all the elements of litis pendentia."

Both the SBMA and Hanafil welcomed the dismissal of UIGDC's charges, with SBMA officials calling it a reaffirmation of the agency's rightful step in taking over the facility two years ago.

Hanafil president Benjamin John Defensor III meanwhile said the court ruling recognized the right of the SBMA to terminate the Lease Development Agreement (LDA) with UIGDC, thus "making it clear that Hanafil is the new rightful lessee of the property."

Bautista said that based on pieces of evidence submitted by the parties, there are three actions commenced by UIGDC before different courts the proved the presence of forum shopping.

These, she said, were: Petition for Certiorari with Prayer for Preliminary Mandatory Injunction and TRO filed in April 2008 before the Court of Appeals (CA); Forcible Entry case filed in May 2008 before the MTCC-Branch 3 of Olongapo City; and the case for Breach of Contract and Damages, Annulment of Lease Development Agreement with Prayer for TRO and Preliminary Mandatory Injunction filed in January 2009 before the RTC-Branch 72 of Olongapo City.

According to SBMA administrator Armand Arreza, the LDA between SBMA and UIGDC was rescinded on June 8, 2007 by the SBMA Board, "so there is no lessor-lessee relationship that still exists between the two parties."

"We have validly pre-terminated the LDA because the lessee committed contractual breaches. And as a consequence of the valid pre-termination, SBMA has repossessed the golf course without any court order," Arreza explained.

Arreza also said that the Supreme Court has upheld the validity of the provisions in the LDA between UIGDC and SBMA, including the pre-termination and repossession of the property by UIGDC in case of violations by the company.

Currently, Hanafil is reconstructing the Subic golf course, saying that it will put up additional nine holes to make the facility a world-class, all-weather championship course.

Defensor said the $48-million renovation program will be undertaken in phases, thereby leaving holes 1 to 9 open to players even during the reconstruction.

Defensor also said that the massive re-development of the Subic golf course is part of the agreement between Hanafil and the SBMA. The company is currently making plans to build a five-star hotel and several luxury villas, he added. (30)