Back

Philippine Reclamation Authority (formerly known as the Public Estates Authority Vs. Romago, Inc./Romago, Inc. Vs. Philippine Reclamation Authority

PHILIPPINE RECLAMATION AUTHORITY (Formerly known as the PUBLIC ESTATES AUTHORITY), Petitioner, vs. ROMAGO, INCORPORATED, Respondent. G.R. No. 174665 _______________________ ROMAGO, INCORPORATED, Petitioner, vs. PHILIPPINE RECLAMATION AUTHORITY (Formerly PUBLIC ESTATES AUTHORITY), Respondent. G.R. No. 175221

G.R. Nos. 174665 and 175221 | 2013-09-18

THIRD DIVISION

DECISION

ABAD, J.:

These cases pertain to the defense of novation by vi1iue of the debtor's assignment to a third party of its contractual liability to the creditor.

The Facts and the Case

In order to convert former military reservations and installations to productive use and raise funds out of the sale of portions of the country’s military camps,1 in 1992 Congress enacted Republic Act 7227,2 creating the Bases Conversion and Development Authority (BCDA). Pursuant to this law, the President issued Executive Order 40,3 Series of 1992, setting aside portions of Fort Bonifacio in Taguig, Metro Manila, for the Heritage Park...