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Philippine International Air Terminals Co., Inc - Vs.Takenaka Corporation and Asahikosan Corporation G.R. No. 180245, July 4, 2012 Peralta, J. Facts

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Case 4

TITLE: PHILIPPINE INTERNATIONAL AIR TERMINALS CO.,


INC.vs.TAKENAKA CORPORATION and
ASAHIKOSAN CORPORATION
SOURCE: G.R. No. 180245, July 4, 2012
PONENTE: PERALTA, J.

FACTS:

In 1997, by way of a Concession Agreement, the Philippine


Government awarded to petitioner the right to build and operate the NAIA
International Passenger Terminal III (“NAIA IPT3”). Petitioner then
contracted respondents Takenaka Corporation, and Asahikosan
Corporation (“private respondents”) to construct and equip NAIA IPT3.
Private respondents are both foreign corporations organized under the laws
of Japan, but only respondent Takenaka Corporation is licensed to do
business in the Philippines through its local branch office.
 
Claiming that petitioner made no further payments after May 2002
despite continued performance of their obligations, private respondents
filed two collection suits before the High Court of Justice, Queen's Bench
Division, Technology and Construction Court in London, England (“London
Court”), docketed as Claim No. HT-04-248 and Claim No.HT-05-269. In
both claims, respondent Takenaka Corporation was designated as the First
Claimant and respondent Asahikosan Corporation, the Second Claimant.
Petitioner thereafter filed with the trial court, and served upon the President
of respondent Takenaka Corporation, Written Interrogatories which, among
others, asked if Takenaka entered into a General Framework Agreement
with the Philippine government, what its salient features are, and if any
amount has been paid to Takenaka by the Philippine government.
 
Private respondents moved to expunge the Written Interrogatories,
arguing that written interrogatories cannot be served without leave of court
before an Answer has been filed. On June 26, 2006, petitioner filed a
Motion for Leave to serve its Written Interrogatories on the President of
respondent Takenaka Corporation. That same day, respondent judge
issued the first assailed Omnibus Order denying petitioner's Motion to
Dismiss, Motion to Set the Motion to Dismiss for hearing, Motion for
Production and Inspection of Documents, and written interrogatories.
ISSUE:

  Where or not the CA erred (1) in ruling that the Complaint is not
fatally defective despite the fact that only a Special Power of Attorney, and
not a Board Resolution was attached to the Verification and Certification
Against Forum Shopping; and (2) in depriving petitioner the right to present
evidence on its Motion to Dismiss.

HELD:

In this case, there is no showing of such capricious or whimsical


exercise of judgment or arbitrary and despotic exercise of power committed
by the trial court. In fact, records reveal that both parties were given ample
opportunity to be heard. A hearing on the Motion to Dismiss was, in fact,
held on April 7, 2006. Thereafter, both parties submitted their pleadings
setting forth their claims, arguments and supporting evidence. Petitioner
points out that at the April 7, 2006 hearing, the parties were only allowed to
file their pleadings, and no actual hearing, or presentation of evidence, was
conducted. It is an oft-repeated principle that where opportunity to be
heard, either through oral arguments or pleadings, is accorded, there is no
denial of due process.Moreover, the issues that petitioner seeks to tackle in
the requested hearing on the motion to dismiss, i.e., novation, payment,
extinguishment or abandonment of the obligation, are the meat of their
defense and would require the presentation of voluminous evidence. Such
issues are better threshed out during trial proper. Thus, the trial court was
not amiss in ruling that petitioner already had the opportunity to be heard
and there was no longer any need to set another hearing on the motion to
dismiss.

On the issue of the Verification/Certification, the court has the power


to give due course to the complaint even with the supposed defect, if
special circumstances warrant. Even assuming arguendo, that the form
used to show Mr. Kurebayashi's authority to execute the Verification and
Certification Against Forum Shopping is defective, petitioner should bear in
mind that this Court may relax the application of procedural rules for the
greater interest of substantial justice.

This case is one of those that deserve a more lenient application of


procedural rules, considering that it affects one of the most important public
utilities of our country. In Agan, Jr. v. Philippine International Air Terminals
Co., Inc.,1[10] this Court has already stated that these cases involving the
construction and operation of the country's premier international airport,
has attained transcendental importance. Therefore, the Court sees it fit to
relax the rules in this case to arrive at a full settlement of the parties' claims
and avoid further delay in the administration of justice.

IN VIEW OF THE FOREGOING, the petition is DENIED. The Court of


Appeal's Decision dated July 27, 2007, and the CA Resolution  dated
October 23, 2007 in CA-G.R. SP No. 98166 are hereby AFFIRMED.
 
 

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