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Saturday, March 01, 2008

 

Supreme Court asks ‘sexy’ judge to explain

By Jomar Canlas, Reporter

The Supreme Court ordered a probe into a complaint filed by Steel Corp. against a woman judge who posted a “sexy” photo of herself on the Friendster website.

The High Court, through the Office of the Court Administrator Zenaida Elepano, asked Batangas City Regional Trial Court Judge Ma. Cecilia Austria to explain her side in 10 days on a complaint filed by Antonio Lorenzana, Steel Corp. vice-president. He is fighting Austria’s decision to rehabilitate the company.

The Manila Times tried calling Austria’s office in Batangas several times but did not get through.

She is accused of arbitrarily deciding to reduce Steel Corp.’s equity value to be used in the debt-to-equity conversion that she adopted in the rehabilitation plan, and for having done this without conducting a hearing to determine the imminent danger of dissipation of business operations that could be considered as a legal ground as required by law before the appointment of a management committee.

Company executives are asking help from Chief Justice Reynato Puno and Court of Appeals Presiding Justice Conrado Vasquez for what Steel Corp. considered as “the injustice it suffered” before a special commercial court in Batangas City.

Steel Corp. also asked the Supreme Court to investigate the possibility of a rigged raffling of cases at the Court of Appeals.

Lawyer Ferdinand Topacio, counsel for Steel Corp., said he wonders how the four cases filed by the company at the Court of Appeals “miraculously” ended up in the sala of only one of the 52 associate justices—that of Sixto Marella.

“I believe there [are] enough circumstances to reasonably assume that there is an anomaly,” Topacio said.

He asked the High Court and the Court of Appeals leaderships “to investigate the circumstances surrounding our cases in order to clear the air of any cloud of doubts that the process had been manipulated in favor of a particular party litigant.”

Steel Corp. elevated their case to the Court of Appeals by filing a petition for a restraining order against the implementation of a rehabilitation plan sought by one of the company’s creditor banks, Banco de Oro-Equitable Philippine Commercial and Industrial Bank (BDO-EPCIB), which originated from the sala of Judge Austria.

Marella said he has no control over the raffling of cases and over other justices who had inhibited themselves and unloaded the cases to his sala.

In a petition for review on certiorari, Steel Corp. asked the Court of Appeals to junk the Batangas court’s ruling that places the firm under rehabilitation. The executives fear that the real intention is not to rehabilitate the firm, but to allow another party to take over management.

Steel Corp.’s petition argues that the Batangas court committed an error and violated the firm’s right to due process in granting creditor bank’s petition, despite the fact that the lower court itself is not experienced in corporate rehabilitation.
--With Johanna Sampan 

   

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