In a culmination of a nearly three-decades-long legal battle, the local governments of Negros Occidental and Bacolod are set to pay a staggering P25 million in damages to Sugarland Hotel owners for the destruction of its fourth floor in 1994.

This resolution comes as a result of a Supreme Court (SC) order, marking the end of a protracted saga marred by government incompetence.

The Negros Occidental Provincial Development Council, during its year-end meeting on December 18, approved the appropriation of close to P12 million in payment to Sugarland Hotel, owned by the family of Felix Yusay. Provincial Administrator Rayfrando Diaz disclosed that the provincial government would bear close to P12 million, while the city government would contribute about P13 million, factoring in accumulated interest.

The SC’s decisive ruling earlier in December overturned the longstanding claim that the hotel’s top floor obstructed aerial navigation, the purported reason for its demolition. The court determined that the Bacolod City Domestic Airport closure in 1994, led by then Air Transportation Office chief Capt. Panfilo Villaruel Jr., was unjustified.

“The Bacolod City government is also looking for its source of funds for payment. Definitely, the city will also pay,” affirmed Secretary to the Mayor Karol Joseph Chiu, acknowledging the impending financial responsibility.

The controversial order in 1994 cited the presence of the third and fourth floors of Sugarland Hotel and informal settlers around the airport as obstructions to aerial navigation. Despite negotiations limiting the demolition to only the fourth floor, the subsequent damages extended to the third, second, and first floors of the hotel.

The aftermath of the demolition left Sugarland Hotel in disrepair, with shattered lights, destroyed machinery, and a compromised building structure. Forced to suspend operations on August 1, 1994, the hotel underwent three years of extensive renovations before resuming business.

Notably, Sugarland Hotel discovered that its building height adhered to domestic airport regulations and did not exceed the allowable height clearance. The SC ruled that the 1.6 percent gradient height clearance demanded by Villaruel applied only to international air navigation, emphasizing that the fourth floor was not a threat to aerial navigation.

In response to the SC decision, the governments of Bacolod City and Negros Occidental are mandated to pay P4 million and P3.6 million, respectively, to Sugarland Hotel. This amount represents the appraised value of the demolished fourth floor, along with 6 percent annual interest from November 21, 1994, until fully paid.

Additional payouts include P1 million each for moral and exemplary damages, both subject to 6 percent interest per annum from the decision’s finality until complete settlement. The SC also ordered a joint payment of P600,000 as attorney’s fees, plus 6 percent interest annually until fully paid. The resolution brings an end to a lengthy legal saga and sheds light on the consequences of government actions spanning nearly three decades.