The Quezon City Regional Trial Court has ordered property developer Megaworld Corp. to set aside P873.32 million as counter bond to cover potential obligation claimed by construction firm Datem Inc.
“Finding the counter bond to be sufficient security for the payment of claims in judgment sought by plaintiff, the Writ of Preliminary Attachment issued on 15 November 2023 is hereby immediately discharged,” Judge Rochelle Yvette D. Galano of Branch 105, Quezon City Regional Trial Court, said in an order dated November 24.
Datem earlier sued to force Megaworld to honor a 2022 agreement in which the property developer committed to pay P873.324 million for completed work.
The business accused Megaworld of moving the deadlines by introducing new and additional deductions charged against Datem that were not previously discussed in the mutual agreement.
Datem was able to get a court order freezing some of Megaworld’s assets that the court lifted with the posting of the counter bond.
In a statement, Datem said in the event it wins, the counter bond from Megaworld acts as a safety net and pay for the liability it owes the construction firm.
“With the order approving the counterbond, this will serve as security for Datem instead of the seized properties, and the court will order the lifting of the attachment instead. Also, regardless of the value of the properties, Datem should be secured for the full amount of P873,324, 248.89 In case judgment is rendered,” it said.
The company made clear the court ruling has no bearing on the main points of their lawsuit against Megaworld.
“It is crucial to note that this development has no bearing on the core of our lawsuit against Megaworld, which seeks to secure payment for finished projects where work has been completed,” it said.
The company also said the court decision to lift the WPA does not invalidate its previous determination of Megaworld’s fraudulent activities, which is an important part of Datem’s legal case. The WPA and its accompanying counter bond were put in place as security measures to protect Datem’s interests, based on the court’s evaluation of Megaworld’s alleged fraudulent behavior.
