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CA denies Piatco motion to dismiss complaints of Japanese firms

- Mike Frialde -

The Court of Appeals yesterday denied the motion of the Philippine International Air Terminals Co.  Inc. (Piatco) to dismiss the complaint filed by two Japanese construction firms for the enforcement of a British court ruling granting payment of $82 million for their services in the construction of the Ninoy Aquino International Airport Terminal 3 (NAIA-3).

In a 36-page decision penned by Associate Justice Noel Tijam, the CA’s Sixth Division affirmed the decision of Makati Regional Trial Court Judge Eugene Paras and denied Piatco’s motion to dismiss the complaint filed by Takenaka and Asahikosan on March 1, 2006.

In their complaint filed before the Makati RTC, the Japanese firms sought the enforcement of the orders of High Court of Justice, Queen’s Bench Division, Technology and Construction Court in London, England granting the two suits the contractors filed against Piatco.

In its two orders issued on Feb. 18, 2005 and Dec. 2, 2005, the London court awarded a total of $82 million to the respondents, representing part of their claims from Piatco.

The complaint added that in 1997, by way of a concession agreement, the Philippine government awarded to Piatco the right to build and operate NAIA-3. Piatco then contracted the Japanese firms to construct and install equipment at the new terminal.

The respondents claimed that petitioner made no further payments after May 2002 despite continued performance of their obligations, prompting them to file collection suits before the London court.

The CA ruling, however, favored Piatco’s motions seeking to compel Takenaka executive Takeshi Kurebayashi to testify in court, and to bring the alleged General Framework Agreement (GFA) between Takenaka and Asahikosan and the Philippine government as represented by the Manila International Airport Authority.

Piatco claimed that the complaint filed by the Japanese firms should be dismissed due to defective verification and certification against forum shopping.

It noted that there was no board resolution showing that Kurebayashi was authorized by the respondents to sign the verification and certification of non-forum shopping, and the special powers of attorney executed in favor of Kurebayashi by the executive vice president and president of Takenaka and Asahikosan.

The Supreme Court issued a ruling in December 2005 that allowed the government to take over the operation of NAIA-3 provided that it immediately pays Piatco more than P3 billion, representing the proffered value of the airport.

Meanwhile, Piatco said the government should provide the funds necessary to facilitate the valuation of the NAIA-3, which is now the subject of an expropriation case.

In a nine-page comment filed before the Pasay City Regional Trial Court (RTC), Piatco through its counsels noted that the government should bear the cost of the appraiser.

“It should be remembered that it was the plaintiff (government) who brought this suit of expropriation. It was very well aware that the just compensation for this facility may not be arrived at without the aid of expert appraisers. It will be more consistent with equity and fairness if the party that brought this about should bear the expenses thereof.”

Based on the submitted proposal of DG Jones and Partners Philippines, the court-appointed appraiser, its proposed appraisal fee is $1,900,000.

Piatco’s counsel Eduardo delos Angeles said that the appointment of an appraiser has legal basis contrary to the government’s claim.

He said that, based on Rule 135 of the Rules of Court, the court has more than ample authority under Republic Act 8974 (An Act to Facilitate the Acquisition of Right-of-Way, Site or Location for National Government Infrastructure Projects and For Other Purposes) to appoint DG Jones and Partners Philippines Inc. as the appraiser.         – With Rhodina Villanueva

AN ACT

ASSOCIATE JUSTICE NOEL TIJAM

COURT

GOVERNMENT

PIATCO

TAKENAKA AND ASAHIKOSAN

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