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A Cebu City court denied OPASCOR's petition for a TRO and injunction against Cebu Port Authority and CSHCTC, allowing cargo ships to use Cebu South Harbor facilities.
A Cebu City court has denied a petition by cargo operator Oriental Port & Allied Services Corp. ( OPASCOR) that sought to block cargo ships from using the facilities of Cebu South Harbor and Container Terminal Corp. ( CSHCTC). In an eight-page order issued on September 25, Presiding Judge Leah Geraldez of Cebu City Regional Trial Court (RTC) Branch 20 denied OPASCOR's prayer for a temporary restraining order (TRO) and preliminary injunction against the Cebu Port Authority (CPA) and CSHCTC.
The ruling allows vessels to continue berthing at CSHCTC's private port while the main case proceeds. OPASCOR had asked the court to stop the CPA from authorizing vessels to berth at the CSHCTC facility, alleging regulatory violations and breaches of the terminal's permit.
Cebu court finds no clear legal right
In its order, the court ruled that OPASCOR failed to demonstrate a clear and unmistakable legal right requiring judicial protection, which is the primary threshold for granting injunctive relief. The court said OPASCOR failed to establish the first requisite for the issuance of a writ of preliminary injunction.
The court also found that OPASCOR failed to establish irreparable damage. It explained that damages are considered irreparable within the meaning of the rule on injunctions only when there is no standard by which their amount can be measured with reasonable accuracy.
The court noted that OPASCOR itself quantified its losses in its filing, citing declining revenues, lower cargo volumes, and reduced CPA remittances. Because the alleged financial harm is measurable, the court said it does not warrant an emergency injunction.
The court further held that issuing a writ of preliminary injunction would effectively result in the determination of the merits of the case before a full trial is held.
OPASCOR petition and court denial
OPASCOR, a cargo operator, filed the petition to prevent the CPA from allowing vessels to berth at CSHCTC's private port. The company claimed regulatory violations and breaches of the terminal's permit. The CPA and CSHCTC were named as respondents in the case.
In its ruling, the court stated that OPASCOR's application for the issuance of a temporary restraining order and writ of preliminary injunction was denied for lack of merit. The order was issued by Judge Leah Geraldez of Cebu City RTC Branch 20 on September 25.
The decision means CSHCTC can continue operating its facilities at Cebu South Harbor while the legal dispute continues. The court's denial of the injunctive relief does not resolve the main case, which will proceed to trial unless otherwise settled.
GMA News Online sent an email to OPASCOR requesting comment on the matter, but the company had yet to respond as of posting time. The CPA has previously denied allegations of bias, saying the complainant misled the Ombudsman.
Background on Cebu port dispute
The dispute involves the use of port facilities at Cebu South Harbor, a major gateway for cargo in the Visayas region. OPASCOR has been a cargo operator at the port, while CSHCTC operates a private port and container terminal.
The CPA regulates port operations in Cebu and had authorized vessels to berth at CSHCTC's facilities, prompting OPASCOR's legal challenge. OPASCOR argued that the authorization violated regulations and the terms of CSHCTC's permit.
The court's denial of the TRO and preliminary injunction means the status quo remains in place, allowing CSHCTC to continue receiving cargo ships. The case will now proceed to a full trial on the merits, where OPASCOR will need to prove its allegations.
Injunctive relief is an extraordinary remedy granted only when a party shows a clear legal right and that irreparable injury will occur without court intervention. The Cebu court found that OPASCOR met neither requirement.
The ruling is a setback for OPASCOR, which has claimed financial losses due to the operations of CSHCTC. However, the court said those losses are quantifiable and can be addressed through damages if the main case succeeds, rather than through an emergency injunction.
The case highlights ongoing competition and regulatory issues at Cebu's ports, which are vital to trade and shipping in the central Philippines. The CPA has yet to issue a statement on the court's order.
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