January 5, 2024

Poultry producer in Leyte, Philippines files US$3.5 million damage claim against former mayor

DBSN Farms Agriventures Inc, a major poultry producer in Leyte province, Philippines, has filed a damage claim amounting to PHP 195.24 million (US$3.5 million) against the former mayor of Palompon town, Myra Georgina Arevalo, and other town officials, from a 2021 order issued by the respondent, preventing the delivery of day-old chicks to San Miguel Foods Inc. (SMFI), causing substantial financial losses to DBSN, Manila Standard reported.

Legal counsel Gerentstein Banzon, representing DBSN Farms Agriventures Inc, presented the complaint seeking damages and a settlement of PHP 100,000 (US$1,800) for lawyer's fees, along with an additional PHP 100,000 for litigation expenses.

DBSN Farms Agriventures Inc is recognised as the first fully automated breeder farm in Eastern Visayas, making it the largest of its kind in terms of egg production.

DBSN manager Rodante Bien Cabello alleged in the complaint that despite the poultry firm's compliance with documentary requirements, the former mayor denied the issuance of a business permit. Cabello stated that DBSN had previously received business permits for its chicken breeder division for the years 2019 and 2020.

However, the complaint highlights that the renewal of the business permit dated January 25, 2021, was denied by the respondent. In response, DBSN filed a petition for certiorari, mandamus, prohibition with a prayer for the issuance of a temporary restraining order (TRO) against the official.

Arevalo also issued a cease-and-desist order against DBSN's operation, preventing the transport of chicks worth millions of pesos to the company's client, resulting in substantial losses exceeding PHP 195 million (US$3.5 million).

The Palompon RTC acted on February 23, 2021, by granting DBSN's petition for the issuance of a TRO, restraining the mayor from enforcing the cease-and-desist order, with an extension period of 17 days.

-      Manila Standard