Legality of GGDC’s Clark project takeover questioned

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THE dispute between developer Peregrine Development International and Global Gateway Development Corp. (GGDC) over the 177-hectare Global Gateway Logistics City (GGLC) project in Clark, Pampanga has intensified into a legal war.

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This after Peregrine on Tuesday questioned the legality of GGDC’s move to take control of the project. Peregrine pointed out that the temporary restraining order (TRO) issued by the Court of Appeals (CA) is not final and is subject to a motion for reconsideration filed by the company.

“It is stressed that the CA’s TRO only enjoins the regional trial court orders from being implemented.  However, this does not mean that Peregrine no longer has any right under the Engineering Procurement Construction Management (EPCM) Agreement,” the company said in a statement.

Peregrine issued the statement amid reports that GGDC assumed “operational control” of the GGLC project after obtaining a favorable ruling from the CA when it issued a 60-day TRO against them.

But Peregrine stressed that the TRO only temporarily set aside for 60 days the previous rulings of the Regional Trial Court where it had initially filed its complaint.

It also said that the CA did not direct Peregrine to vacate the GGLC project site or remove it from possession.

“The CA did not authorize GGDC to take over the project site,” Peregrine stressed.
A dispute arose over a notice of termination that GGDC sent to Peregrine in April.
The EPCM contract does mandate that all disputes were subject to arbitration. The developer said that this is a key point since Philippine law does recognize the authority of arbitration tribunals, which has now been legally constituted in Singapore.

In May, GGDC filed for arbitration in Singapore.

Peregrine conceived the project in 2006 and paid $20,000 for the right to develop the site.

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