CA upholds ruling on TRO petition of Northrail

The Court of Appeals has upheld a decision allowing a Makati City court to hear a petition for temporary restraining order on the controversial $400-million Northrail project. 

In a two-page resolution penned by Associate Justice Remedios Salazar-Fernando, CA’s Fifth Division said China National Machinery Equipment Corp. (CNMEC) failed to raise new arguments against hearing the TRO petition.

CNMEC is the contractor tapped by the North Luzon Railways Corp. to undertake the rail project.

“Finding no new matter of substance that would warrant the modification or reversal of the decision dated Sept. 30, 2008, this Court resolves to deny petitioner’s motion for reconsideration for lack of merit,” the CA said.

The CA also stressed that contrary to CNMEC’s position, the Makati Regional Trial Court has jurisdiction over the case. The CA also junked CNMEC’s argument that it enjoys immunity from any suit, it being an agent of the Chinese government.

The CA also dismissed CNMEC’s claim that its contract with Northrail cannot be questioned in court because it is an executive agreement between the Philippine and Chinese governments.

In its decision, the CA also ruled that there was no grave abuse of discretion on the part of Makati Judge Cesar Santamaria when he denied CNMEC’s motion to dismiss the TRO petition filed by several lawyers led by University of the Philippines law professor Harry Roque.