The Negros Occidental and Bacolod City governments are paying the owners of Sugarland Hotel in Bacolod City close to P25 million in damages for their 1994 demolition of its fourth floor.
The Supreme Court (SC) ruled that the top floor of the hotel did not constitute an obstruction to aerial navigation, which was cited as the reason for the demolition, and ordered the two local governments to pay damages.
The Negros Occidental Provincial Development Council in its year-end meeting Monday, Dec. 18, approved the appropriation of close to P12 million in payment to the hotel owned by the family of Felix Yusay in compliance with the SC order.
Provincial Administrator Rayfrando Diaz said the provincial government has to pay close to P12 million and the city government about P13 million after factoring in interest.
“The Bacolod City government is also looking for its source of funds for payment, definitely the city will also pay”, Secretary to the Mayor Karol Joseph Chiu said.
On May 13, 1994, Capt. Panfilo Villaruel Jr., in his capacity as then Air Transportation Office chief and Department of Transportation and Communication assistant secretary, ordered the closure of the then Bacolod City Domestic Airport in Barangay Singcang, Bacolod.
One of the reasons he gave for the order were the presence of the third and fourth floors of Sugarland Hotel and the informal settlers around the vicinity of the airport, all of which were deemed obstructions to aerial navigation, the SC noted in its Dec. 6, 2021 decision.
Eventually it was agreed that only the fourth floor of Sugarland Hotel would be demolished.
As a result of the demolition, the third, second, and first floor of the hotel also sustained damage. The lights were shattered as concrete debris fell on the lower floors. Even the satellite, elevator machinery, air conditioning compressor situated on top of the hotel, and the water tank were destroyed, the Sugarland Hotel owner said.
The whole hotel was severely affected. Sugarland Hotel deteriorated with the removal of the parapet at the western portion of the third floor rendering the hotel building vulnerable to natural elements such as uncontrollable flow and seepage of rainwater, which even found its way to the second and first floors of the hotel. Thus, it was forced to close and suspend operations on Aug. 1, 1994. It took three years of major renovation and repairs before Sugarland Hotel was able to resume business, the SC was told.
Later, Sugarland Hotel discovered that the height of its building did not pose a threat to the safety of aerial navigation because it did not exceed the allowable height clearance of 2.5 percent gradient required by Administrative Order No. 5, Series of 1967 for domestic airports. The 1.6 percent gradient height clearance that Villaruel demanded from Sugarland Hotel applies only to international air navigation, the SC was told.
As a result in November 1994, Sugarland Hotel filed a complaint for Rescission with Damages or Specific Performance with Damages.
The SC in its decision agreed that Sugarland Hotel’s fourth floor was not a nuisance that called for summary abatement.
The Bacolod Domestic Airport was not covered by the International Civil Aviation Organization, but by Administrative Order No. 5, Series of 1967, which governs domestic airports. Thus, the 1.6 percent gradient used by Villaruel in declaring Sugarland Hotel’s fourth floor as an aviation hazard is not mandatory upon the Bacolod Domestic Airport. Sugarland Hotel’s fourth floor did not constitute an obstruction to aerial navigation and there was no impelling need for its demolition, the SC ruled.
The SC ordered that P4,000,000 be paid by the Bacolod City government and P3,600,000 by the Negros Occidental, provincial government to Sugarland Hotel, the aggregate amount of which represents the value of the demolished fourth floor as appraised by the United Architects Guild of the Philippines, Bacolod City Chapter, plus 6 percent interest per annum computed from Nov. 21, 1994 until fully paid.
It also ordered the payment of P 1,000,000 as moral damages and P1,000,000 as exemplary damages plus 6 percent interest per annum from the finality of this decision until fully paid, to be jointly and severally paid by the Bacolod and Negros Occidental governments.
The SC also ordered the joint payment of P600,000 by way of attorney’s fees plus 6 percent interest per annum from the finality of this decision until fully paid.*