In a 21-page decision, the court's fourth division said the PCGG's case for damages against Ms Marcos and her cousins for the money they earned from the 220 booths and three restaurants operating at the complex ''lacked merit.''

It said the PCGG failed to present ''concrete proof'' that the complex set up by Ms Marcos' cousins led by Ofelia Trinidad on a 1.27-hectare lot owned by Landbank of the Philippines was part of the Marcoses' ill-gotten wealth.

According to the decision written by Associate Justice Rodolfo Palattao, the PCGG was the wrong party to seek damages from the defendants as Landbank was the injured party.

But Palattao, an appointee of President Estrada, also dismissed the counterclaim filed by Ms Marcos, the Trinidads and Zamora, saying the PCGG complaint was filed in ''good faith.''

'Usurpation'

The PCGG had said the revenues gained from the complex constituted ill-gotten wealth as these resulted from the defendants' ''continued usurpation'' of the property.

It said the Trinidads made a business enterprise out of the complex virtually for free from 1978 to 1986, and that their contract with Landbank lasted only from 1976 to 1978, and was limited to an exposition of Philippine products.

The PCGG's case stemmed from the occupancy of the property by Trinidad, who initiated the holding there of the First National Barong Filipino Exposition in 1976.

Trinidad presented a program for implementing the project to then President Ferdinand Marcos, through Presidential Assistant Juan Tuvera, which led to the issuance of Presidential Proclamations 1374 and 1466.

Zamora, then assistant executive secretary and concurrent national coordinator of the National Barong Pilipino Exposition, asked Landbank to allow ''free use'' of the property for the event.

Lease

Landbank denied the request, and instead leased out the property to Trinidad from Nov. 2, 1976, to May 1, 1977, at the rate of P2,500 a month.

Upon Trinidad's request, the lease was later extended to Jan. 1, 1978, at the rate of P5,000 a month.

The PCGG said the concept of a Pistang Pilipino was envisioned by Trinidad when she set up the Food and Clothing Exposition in 1976, ostensibly to promote Philippine products.

But after the exposition, Trinidad continued to do business on the lot which she turned into a shopping complex co-managed by herself, her brothers Porfirio and Cornelio, and sister Cresencia.

Trinidad claimed that she introduced improvements in the complex after the exposition, including additional booths and three restaurants specializing in native food.

The Trinidads were said to have charged fees higher than the rent they paid to Landbank.

On Feb. 8, 1984, the bank filed an ''unlawful detainer case'' to recover the property from Trinidad--a case later decided in its favor.

On July 30, 1986, the PCGG issued a writ of sequestration over the property.

'Minimum involvement'

However, the PCGG was said to have taken control of Pistang Pilipino operations, in violation of its mission order that it exercise ''minimum involvement'' in the management of the complex.

On Oct. 2, 1989, the Sandiganbayan gave back the management of the complex to Trinidad. But two weeks later, on Oct. 18, Trinidad was ejected from the complex.

The action was taken on the strength of the Supreme Court's affirmation of Landbank's right over its property, and of an earlier decision of a regional trial court to eject Trinidad.

Palattao said no evidence was presented by the PCGG to prove that the Trinidads acquired the property by using their connection with the Marcoses.

Neither was there any proof that they unjustly enriched themselves by taking advantage of their connection with the Marcoses, he said.

By Donna S. Cueto