Court orders Megaworld to set aside P900M for DATEM claims

Megaworld Corporation

A Quezon City Regional Trial Court directed real estate developer Megaworld Corporation to set aside nearly P900 million as a counterbond to cover the potential obligation claimed by construction firm DATEM Inc.

In an order dated November 24, 2023, Judge Rochelle Yvette Galano of Quezon City RTC Branch 105 ordered Megaworld to set aside P873,324,248.89 as a counterbond in its case with DATEM, its former contractor.

With the court’s approval of the P87.324 million bond, this allows the freeze order on Megaworld assets in five projects to be lifted.

DATEM said that in the event that it wins its lawsuit to collect alleged unpaid dues from Megaworld, the bond is intended to act as a safety net as it pays for the liability that the property giant allegedly owes to the construction firm.

In a statement, DATEM said that although the court’s ruling may appear to be a change in the current legal dispute, it should be noted that it has no bearing on the main points of its 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,” the statement said.

For its part, Megaworld claims that DATEM repeatedly failed to fulfill its obligation in completing the projects that were assigned to the contractor.

Megaworld said it was forced to have other contractors take over the projects due to DATEM’s alleged negligence and disregard for project completion timelines.—RF, GMA Integrated News

This article Court orders Megaworld to set aside P900M for DATEM claims was originally published in GMA News Online.