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Tuesday, March 25, 2008

 

SC: Manila Hotel has no right to NAIA 3 case


THE Supreme Court on Monday dealt another blow on Manila Hotel Corp.’s (MHC) bid to operate the controversial Ninoy Aquino International Airport Terminal 3 (NAIA 3).

In a 10-page en banc resolution penned by Associate Justice Renato Corona, the High Court denied Manila Hotel’s separate motion to intervene in the NAIA 3 case “for being an improper remedy.”

The pending case was initiated by Asia’s Emerging Dragon Corp. (AEDC) owned by taipan Lucio Tan.

On March 11, the High Court also resolved to dismiss Manila Hotel’s motion to intervene on grounds that its December 2005 decision directing the government to pay P3 billion to the Philippine International Air Terminals Co. (Piatco) had already become final as of March 17, 2006.

In its Monday decision, the High Court en banc rejected Manila Hotel’s basis to intervene in the NAIA case.

“If parties with such a con­jectural, collateral, consequential, expectant and remote interest were allowed to intervene, proceedings would become unnecessarily complicated, expensive and inter­minable. It will only unduly delay and prolong the adjudication of the rights of the original parties,” the High Court stressed.

The High Court pointed out that even if Manila Hotel had a cause of action, “its interest as a stock­holder of Piatco can well be pro­tected in a separate proceeding.”

“It is settled that the right to intervene is not an absolute right; it may only be permitted by the courts when the movant estab­lishes facts which satisfy the re­quire­ments of the law authorizing it,” the High Court said.

In its motion, Manila Hotel asserted that because of its subs­tantial stakes in Piatco, it has legal interest in the litigation over the right to run the mothballed airport.

However, the High Court said “in this case, the matter in controversy is the NAIA 3. MHC has no connection at all to this structure. It is merely a stockholder of Piatco, the builder of NAIA 3. It’s interest, if any, is indirect, contingent and inchoate.”

In its March 11 ruling, the High Court said its 2005 decision has long become final and executory, adding that generally, after a judgment has become executory, the court cannot amend the same.

The High Court said that its resolution was only in relation to the expropriation case, and does not resolve the Manila Hotel motion in relation to the pleading filed by the Lucio Tan-controlled AEDC, which essentially asked the Court to compel the government to award the NAIA 3 contract to them.

Manila Hotel informed the High Court that it had bought 20 percent of Piatco in 2005, and that it had an agreement with Fraport AG Frankfurt Services Worldwide for the purchase of its 30-percent equity in Piatco for $200 million.

The firm, which is controlled by Philtrust Bank owner Emilio Yap, urged the High Court to allow it to operate and manage the NAIA 3 for 25 years, with 82.5 percent of the profits to be distributed to various government and chari­table institutions.

Since the December 2005 ruling has not yet been fully executed, the petitioner, Manila Hotel, said it wanted to propose an alternative plan to “ease compliance with the said decision by relieving the Republic et. al. from the huge, humongous financial burdens involved in following the ruling.”

But AEDC described Manila Hotel’s late intervention to take over the NAIA 3 as a “surreptitious move to snatch it from the government.”

“What it intends to accomplish is to move [the Supreme Court] to award a right to [Manila Hotel] even if it has no cause of action and is unable to assert a cause of action,” said Tan counsel Eduardo Ceniza. 
--William B. Depasupil

   

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Severino O. Frayna Jr., Benjie Dela Rosa
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