CA dismisses Fraport appeal on P100-M damage suit

MANILA, Philippines - The Court of Appeals has upheld the decision of a Makati City trial court that had junked German Fraport AG’s bid to dismiss the P100-million damage suit filed against it by former Presidential Adviser on Strategic Projects Gloria Tan-Climaco in connection with bribery allegations over the construction of the mothballed Ninoy Aquino International Airport Terminal 3 project.

In a 24-page ruling, the special 5th division of the appeals court denied the petition of Fraport seeking reversal of Makati RTC Branch 147 Judge Maria Cristina Cornejo’s decision.

The CA did not give credence to the claim of Fraport AG that it is immune from suit in the Philippines and that its allegation is covered by the confidentiality rule on international arbitration, thus, cannot be used as a subject of a suit.

The CA held that the Makati court did not abuse its discretion when it denied Fraport’s omnibus motion to dismiss and directed the case to proceed on the merits.

“The related issues of jurisdiction and relevancy require presentation of evidence for their resolution. They are not plain legal questions, but mixed factual and legal questions which the trial court will not be able to resolve without the benefit of a full-blown trial,” the ruling penned by Associate Justice Amy Lazaro-Javier stated.

Fraport AG, the foreign partner of the Philippine International Airport Terminal Co. (Piatco), won in 1997 the build-operate-contract of NAIA Terminal 3.

However, the contract for the construction of the NAIA 3 was voided by the Supreme Court for being disadvantageous to the government.

Tan-Climaco is claiming P10 million in actual damages, P75 million moral damages; P10 million exemplary damages and P5 million in attorneys’ fees against Fraport.

The case stemmed from Fraport’s allegation of extortion before the International Centre for Settlement of Investment Disputes (ICSID) of the World Bank against Villaraza, Angangco Law Office. Funds reportedly would be given to ranking government officials including Tan-Climaco.

Following the dismissal of its motion by the Makati RTC, Fraport elevated the case before the CA arguing that “a full blown trial is unnecessary for this purpose because the statements in question are truly absolutely privileged.”

But the appeals court affirmed the lower court’s decision saying that “the trial court’s statement that petitioner’s defense of absolute privilege is argumentative may be terse but direct to the point and complete in itself.”

“The long and short of it is that the trial court would like to try the case on the merits so it can make a final and definitive determination of whether, indeed, the matter at hand is well within the genre of absolute privilege to warrant the dismissal of the complaint.”

Meanwhile,citing alleged bias which led to loss of faith in the court, the Philippine International Air Terminals Co. Inc (PIATCO) asked for the inhibition of Judge Eugenio de la Cruz of Pasay City RTC branch 117.

“Several actions of the presiding judge cast aspersions, apprehension, loss of faith, trust and confidence and doubt on his ability to administer justice with the impartiality and cold neutrality required of every judge of a court?of law,” the 13-page pleading read.

The motion was filed on July 4 with an addendum the following day, in which PIATCO, through the Quasha Ancheta Pena & Nolasco law firm, cited a newspaper article on an alleged extortion try. – Rainier Allan Ronda