The Court of Appeals (CA) has dismissed the petition for certiorari filed by Megaworld Corporation and upheld the earlier orders of the Regional Trial Court (RTC) of Quezon City, Branch 105, which granted a writ of preliminary attachment in favor of Datem Inc. amounting to ₱873.3 million.

In a 26-page decision promulgated on October 27, 2025, the CA’s Special Second Division, composed of Associate Justices Ramon M. Bato Jr. (Chairperson), Maximo M. De Leon, and Eduardo S. Ramos Jr., affirmed the RTC rulings dated November 9 and 14, 2023, and January 9 and 29, 2024, issued by Presiding Judge Rochelle Yvette D. Galano.

Fraud Allegations and Contract Dispute

The case stemmed from a mutual agreement executed on September 28, 2022, between Megaworld and Datem to settle outstanding payments for completed construction projects. Under the agreement, Datem turned over projects to Megaworld in exchange for payment of long-overdue obligations.

However, Datem alleged that Megaworld failed to honor its commitments, withholding payments despite several demand letters. The construction firm also claimed that Megaworld issued Certificates of Acceptance and Completion for various projects but continued to delay settlement of receivables while allegedly disposing of assets and issuing dividends—actions that Datem said aggravated its financial burden.

The RTC found that Datem had demonstrated sufficient evidence of fraud, concluding that Megaworld entered into the settlement “through false promises and willfully omitted fulfilling its obligations.” The court then issued a Writ of Preliminary Attachment to secure Datem’s claim, a decision Megaworld challenged before the appellate court.

CA Decision: Petition Dismissed, Lower Court Affirmed

The appellate court held that the RTC acted within its jurisdiction and did not commit grave abuse of discretion in granting Datem’s application for attachment.

In its ruling, penned by Justice Eduardo S. Ramos Jr., the CA said:

“Accordingly, the Petition for Certiorari is hereby dismissed. The assailed orders… are hereby affirmed.”

The decision effectively allows Datem to maintain the writ and proceed with enforcement actions, subject to the required attachment bond.

Implications for the Parties

The ruling represents a significant legal setback for Megaworld, one of the country’s largest property developers, as it faces allegations of contractual fraud and non-payment of obligations to a major construction partner.

For Datem, a known builder of several high-profile Megaworld projects, the decision strengthens its claim and opens a path to recovering hundreds of millions in unpaid dues.

As of press time, neither Megaworld nor Datem has issued a public statement regarding the appellate court’s decision.

Photo credit: https://ca.judiciary.gov.ph/