Tycoon Edgar Saavedra’s publicly listed Megawide Construction Corp. is at legal odds with the Araneta family over construction costs related to erecting the Gateway Mall 2 and Ibis Hotel in Cubao, Quezon City.
Megawide told the Philippine Stock Exchange that ACI Inc, formerly Araneta Center Inc, has filed a so-called permissive counterclaim against the construction giant in the wake of its petition for the Construction Industry Arbitration Commission to mediate.
A permissive counterclaim is a claim brought by a defendant against a complainant in a situation where the defendant’s claim does not arise from the same transaction or occurrence as the complainant’s claim.
Megawide earlier this year brought its complaint against ACI Inc. before the CIAC to help resolve the dispute.
“The permissive counterclaim is founded on alleged violations relative to the construction contract dated 13 September 2019 for the general construction of Gateway Mall 2 and Ibis Hotel in Quezon City between ACI Inc. and the company (Megawide),” the company said in its disclosure.
The construction contract is worth P4.25 billion.
The aggregate of the claims sought by ACI in its permissive counterclaim amount to P1.52 billion.
“MCC intends to file, within the allowed period, an opposition/objection to ACI Inc.’s permissive counterclaims for due consideration of the CIAC arbitration panel,” it said.
“The permissive counterclaims will not have a significant impact as far as the operations of the company is concerned,” Megawide said.
