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THIRD DIVISION

GREATER METROPOLITAN G.R. No. !"!!" MANILA SOLID WASTE MANAGEMENT COMMITTEE and the METROPOLITAN MANILA DEVELOPMENT AUTHORITY, Present: Petitioners, QUISUMBING, Chairperson, CARPIO, CARPIO MORAL S, and -versus!INGA, " LASCO, #R., JJ. JANCOM ENVIRONMENTAL CORPORATION and JANCOM INTERNATIONAL DEVELOPMENT PROJECTS PTY. LIMITED OF AUSTRALIA, Respondents. Pro$%&'ated: #%ne (), *))+

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DECISION CARPIO MORALES, J.# !he present petition ,or re-ie. on /ertiorari /ha&&en'es the 0e/ision 1 dated 0e/e$2er 13, *))( and Reso&%tion* dated Ma4 11, *))5 o, the Co%rt o, Appea&s 6CA7( in CA-G.R. SP No. 898:* .hi/h denied the petition ,or /ertiorari ,i&ed 24 herein petitioners Greater Metropo&itan Mani&a So&id ;aste Mana'e$ent Co$$ittee 6GMMS;MC7 and the Metropo&itan Mani&a 0e-e&op$ent A%thorit4 6MM0A7 and their Motion ,or Re/onsideration, respe/ti-e&4. In 1335, Presidentia& Me$orand%$ Order No. *)* .as iss%ed 24 then President <ide& ". Ra$os /reatin' an xe/%ti-e Co$$ittee to o-ersee and de-e&op .aste-to-ener'4 pro=e/ts ,or the .aste disposa& sites in San Mateo, Ri>a& and Car$ona, Ca-ite %nder the B%i&d-Operate-!rans,er 6BO!7 s/he$e. Respondent #an/o$ Internationa& 0e-e&op$ent Pro=e/ts Pt4. Li$ited o, A%stra&ia 6#an/o$ Internationa&7 .as one o, the 2idders ,or the San Mateo ;aste 0isposa& Site. It s%2se?%ent&4 entered into a partnership .ith Asea Bro.n Bo-eri %nder the ,ir$ na$e #ANCOM 6#ANCOM7, its /o-respondent. On <e2r%ar4 1*, 1338, the a2o-e-said xe/%ti-e Co$$ittee appro-ed the re/o$$endation o, the Pre-?%a&i,i/ation, Bids and A.ards Co$$ittee to de/&are #ANCOM as the so&e /o$p&4in' 2idder ,or the San Mateo ;aste 0isposa& Site. n-iron$enta& Corporation

1 * (

Rollo, pp. +-*) 6<irst ha&, o, rollo is pa'ed 1-(31 the next ha&, is pa'ed *3*-(5:7. Id. at *1-*(. Penned 24 #%sti/e Noe& G. !i=a$ and /on/%rred in 24 #%sti/es R%2en !. Re4es 6no. Presidin' #%sti/e7 and d'ardo P. Cr%>.

On 0e/e$2er 13, 1338, a Contra/t ,or the BO! I$p&e$entation o, the So&id ;aste Mana'e$ent Pro=e/t ,or the San Mateo, Ri>a& ;aste 0isposa& Site5 6the /ontra/t7 .as entered into 24 the Rep%2&i/ o, the Phi&ippines, represented 24 the Presidentia& !as@ <or/e on So&id ;aste Mana'e$ent thro%'h then 0epart$ent o, n-iron$ent and Nat%ra& Reso%r/es Se/retar4 "i/tor Ra$os, then Ca2inet O,,i/e ,or Re'iona& 0e-e&op$ent-Nationa& Capita& Re'ion Chair$an 0ionisio de&a Serna, and then MM0A Chair$an Prospero Oreta on one hand, and #ANCOM represented 24 its Chie, xe/%ti-e O,,i/er #or'e Mora Aisa and its Chair$an #a4 A&pars&an, on the other. On Mar/h :, 1339, the /ontra/t .as s%2$itted ,or appro-a& to President Ra$os .ho s%2se?%ent&4 endorsed it to then in/o$in' President #oseph . strada. O.in' to the /&a$or o, the residents o, Ri>a&, the strada

ad$inistration ordered the /&os%re o, the San Mateo &and,i&&. Petitioner GMMS;MC there%pon adopted a Reso&%tion not to p%rs%e the /ontra/t .ith #ANCOM, /itin' as reasons there,or the passa'e o, Rep%2&i/ A/t 9853, other.ise @no.n as the C&ean Air A/t o, 1333, the non-a-ai&a2i&it4 o, the San Mateo site, and /ost&4 tippin' ,ees.: !he Board o, 0ire/tors o, #an/o$ Internationa& therea,ter adopted on #an%ar4 5, *))) a Reso&%tion+ a%thori>in' Att4. Man%e& Mo&ina to a/t as &e'a& /o%nse& ,or respondents and Adeter$ine and ,i&e s%/h &e'a& a/tion as dee$ed ne/essar4 2e,ore the Phi&ippine /o%rts in an4 $anner he $a4 dee$ appropriateB a'ainst petitioners.

5 : +

Rollo, pp. (()-(+8. Re/ords, "o&. 1, p. 8). Id. at 181-18*.

!he Board o, 0ire/tors o, #ANCOM a&so adopted a Reso&%tion 8 on <e2r%ar4 8, *))) 'rantin' Att4. Mo&ina si$i&ar a%thori>ation to ,i&e &e'a& a/tion as $a4 2e ne/essar4 to prote/t its interest .ith respe/t to the /ontra/t. On Mar/h 15, *))), respondents ,i&ed a petition ,or /ertiorari9 .ith the Re'iona& !ria& Co%rt 6R!C7 o, Pasi' Cit4 .here it .as do/@eted as Spe/ia& Ci-i& A/tion No. 13::, to de/&are the GMMS;MC Reso&%tion and the a/ts o, the MM0A /a&&in' ,or 2ids ,or and a%thori>in' the ,or'in' o, a ne. /ontra/t ,or the Metro Mani&a .aste $ana'e$ent as i&&e'a&, %n/onstit%tiona& and -oid and to en=oin petitioners ,ro$ i$p&e$entin' the Reso&%tion and $a@in' another a.ard in &ie% thereo,. B4 0e/ision3 o, Ma4 *3, *))), Bran/h +9 o, the Pasi' Cit4 R!C ,o%nd in ,a-or o, respondents.1) Petitioners there%pon assai&ed the R!C 0e/ision -ia petition ,or /ertiorari11 .ith pra4er ,or a te$porar4 restrainin' order .ith the CA, do/@eted as CA-G.R. SP No. :3)*1.

8 9 3 1)

11

Id. at 18). Id. at 1-*1. Rollo, pp. 8(-8+. !he dispositi-e portion o, the de/ision reads, ?%oted verbatim: ;C R <OR , in -ie. o, the ,ore'oin', the Co%rt here24 renders =%d'$ent in ,a-or o, petitioners #ANCOM N"IRONM N!AL CORP., and #ANCOM IN! RNA!IONAL 0 " LOPM N! PRO# C!S P!D., LIMI! 0 O< AUS!RALIA, and a'ainst respondents GR A! R M !ROPOLI!AN MANILA SOLI0 ;AS! MANAG M N! COMM., and CON. ROB R!O N. A" N!A#A0O, in his Capa/it4 as Chair$an o, the said Co$$ittee, M !RO MANILA 0 " LOPM N! AU!CORI!D and CON. # #OMAR C. BINAD, in his /apa/it4 as Chair$an o, said A%thorit4, de/&arin' the Reso&%tion o, respondent Greater Metropo&itan Mani&a So&id ;aste Mana'e$ent Co$$ittee disre'ardin' petitionersE BO! A.ard Contra/t and /a&&in' ,or 2ids ,or and a%thori>in' a ne. /ontra/t ,or the Metro Mani&a .aste $ana'e$ent ILL GAL and "OI0. Moreo-er, respondents and their a'ents are here24 PROCIBI! 0 and N#OIN 0 ,ro$ i$p&e$entin' the a,oresaid Reso&%tion and disre'ardin' petitionersE BO! A.ard Contra/t and ,ro$ $a@in' another a.ard in its p&a/e. Let it 2e e$phasi>ed that this Co%rt is not pre-entin' or stoppin' the 'o-ern$ent ,ro$ I$p&e$entin' In,rastr%/t%re pro=e/ts as it is a.are o, the pros/ription %nder P0 1919. On the /ontrar4, the Co%rt is pa-in' the .a4 ,or the ne/essar4 and $odern so&%tion to the perennia& 'ar2a'e pro2&e$ that has 2een the $a=or heada/he o, the 'o-ern$ent and in the pro/ess .o%&d ser-e to attra/t $ore in-estors in the /o%ntr4. SO OR0 R 0. Re/ords, "o&. I, pp. *83-(11.

B4 0e/ision1* o, No-e$2er 1(, *))), the CA denied the petition ,or &a/@ o, $erit and a,,ir$ed in toto the Ma4 *3, *))) R!C 0e/ision. PetitionersE Motion ,or Re/onsideration .as denied, pro$ptin' the$ to ,i&e a petition ,or re-ie. 2e,ore this Co%rt, do/@eted as G.R. No. 1585+:. B4 0e/ision1( o, #an%ar4 (), *))* and Reso&%tion15 o, Apri& 1), *))*, this Co%rt a,,ir$ed the No-e$2er 1(, *))1 CA 0e/ision and de/&ared the /ontra/t -a&id and per,e/ted, a&2eit ine,,e/ti-e and %ni$p&e$enta2&e pendin' appro-a& 24 the President. #ANCOM and the MM0A &ater p%rported&4 entered into ne'otiations to $odi,4 /ertain pro-isions o, the /ontra/t .hi/h .ere e$2odied in a dra,t A$ended A'ree$ent1: dated #%ne *))*. !he dra,t A$ended A'ree$ent 2ore no si'nat%re o, the parties. Respondents, thro%'h Att4. Mo&ina, s%2se?%ent&4 ,i&ed 2e,ore Bran/h +9 o, the Pasi' Cit4 R!C an O$ni2%s Motion 1+ dated #%&4 *3, *))* pra4in' that: 617 an a&ias .rit o, exe/%tion 2e iss%ed prohi2itin' and en=oinin' petitioners and their representati-es ,ro$ /a&&in' ,or, a//eptin', e-a&%atin', appro-in', a.ardin', ne'otiatin' or i$p&e$entin' a&& 2ids, a.ards and /ontra/ts in-o&-in' other Metro Mani&a .aste $ana'e$ent pro=e/ts intended to 2e p%rs%ed or .hi/h are a&read4 2ein' p%rs%edF 6*7 the MM0A, thro%'h its Chair$an Ba4ani <. <ernando, 2e dire/ted to i$$ediate&4 ,or.ard and re/o$$end the appro-a& o, the A$ended A'ree$ent to President G&oria Ma/apa'a& Arro4oF 6(7 Chair$an <ernando 2e ordered to persona&&4 appear 2e,ore the /o%rt and exp&ain his a/ts and p%2&i/ prono%n/e$ents .hi/h are in dire/t -io&ation and 'ross de,ian/e o, the ,ina& and exe/%tor4 Ma4 *3, *))) R!C 0e/isionF 657 the xe/%ti-e Se/retar4 and the Ca2inet Se/retaries
1* 1( 15 1: 1+

Rollo, pp. 88-3+. Id. at 38-119. Id. at (1*-(19. Id. at (*:-(*3. Id. at 113-1(5.

o, the depart$ents-$e$2ers o, the Nationa& So&id ;aste Mana'e$ent Co$$ission 2e dire/ted Ato s%2$it the /ontra/t .ithin () da4s ,ro$ noti/e to the President ,or si'nat%re and appro-a& and i, the &atter /hooses not to si'n or appro-e the /ontra/t, the xe/%ti-e Se/retar4 2e $ade to sho. /a%se there,orFB and 6:7 petitioners 2e dire/ted to /o$p&4 .ith and s%2$it their .ritten /o$p&ian/e .ith their o2&i'ations spe/i,i/a&&4 dire/ted %nder the pro-isions o, Arti/&e 19, para'raphs 19.1, 19.1.1 6a7, 627, 6/7 and 6d7 o, the /ontra/t .ithin () da4s ,ro$ noti/e.18 !o the O$ni2%s Motion petitioners ,i&ed their Opposition19 .hi/h $erited #ANCOMEs Rep&413 ,i&ed on A%'%st 13, *))*. On A%'%st *1, *))*, Att4. Si$eon M. Ma'da$it, on 2eha&, o, #an/o$ Internationa&, ,i&ed 2e,ore the R!C an ntr4 o, Spe/ia& Appearan/e and Mani,estation .ith Motion to Re=e/t the Pendin' O$ni2%s Motion *) a&&e'in' that: 617 the O$ni2%s Motion .as ne-er appro-ed 24 #an/o$ Internationa&F 6*7 the O$ni2%s Motion .as initiated 24 &a.4ers .hose ser-i/es had a&read4 2een ter$inated, hen/e, .ere %na%thori>ed to represent itF and 6(7 the a'reed =%di/ia& -en%e ,or disp%te reso&%tion re&ati-e to the i$p&e$entation o, the /ontra/t is the Internationa& Co%rt o, Ar2itration in the United Gin'do$ p%rs%ant to Arti/&e 1+.1*1 o, said /ontra/t.

18 19 13 *) *1

Id. at 1*3-1(1. Re/ords, "o&. II, pp. :3)-:3+. Id. at +(5-+51. Id. at +55-+58. 1+.1 0isp%te Reso&%tion !he parties a'ree to sett&e a$i/a2&4 an4 disp%te or /ontro-ers4 arisin' in /onne/tion .ith this Contra/t. In the e-ent s%/h disp%te or disa'ree$ent /annot 2e reso&-ed, the $atter sha&& 2e s%2$itted to ar2itration. Conse?%ent&4, no Part4 sha&& 2e entit&ed to /o$$en/e or $aintain an4 a/tion in /o%rt o, &a. %pon an4 $atter in disp%te %nti& s%/h $atter sha&& ha-e 2een s%2$itted and deter$ined 24 ar2itration as pro-ided 2e&o. and then on&4 ,or the en,or/e$ent o, s%/h ar2itration and therea,ter %nti& the ar2itrators p%2&ish their a.ard, the Parties sha&& /ontin%e to per,or$ a&& their o2&i'ations %nder this A'ree$ent .itho%t pre=%di/e to a ,ina& ad=%st$ent in a//ordan/e .ith s%/h a.ard. !he Parties a'ree that the ar2itration pro/eedin's sha&& 2e in the n'&ish &an'%a'e, %nder the r%&es o, /on/i&iation and ar2itration o, the Internationa& Cha$2ers o, Co$$er/e, at London, Great Britain. Upon $%t%a& a'ree$ent the Parties $a4 s%2$it their disp%te ,or Ar2itration %nder the Rep%2&i/ A/t No. 98+ o, Phi&ippines.

In the $eanti$e, on No-e$2er (, *))*, the MM0A ,or.arded the /ontra/t to the O,,i/e o, the President ,or appropriate a/tion,** to'ether .ith MM0A Reso&%tion No. )*-19*( dated #%ne *+, *))*, ARe/o$$endin' to her x/e&&en/4 the President o, the Rep%2&i/ o, the Phi&ippines to 0isappro-e the Contra/t ntered Into 24 the xe/%ti-e Co$$ittee o, the Presidentia& !as@ <or/e on ;aste Mana'e$ent .ith #an/o$ n-iron$enta& Corporation and ,or Other P%rposes.B B4 Order*5 o, No-e$2er 19, *))*, the R!C noted the a2o-e-stated ntr4 o, Spe/ia& Appearan/e o, Att4. Ma'da$it ,or #an/o$ Internationa& and denied the Motion to Re=e/t Pendin' O$ni2%s Motion ,or &a/@ o, $erit. #an/o$ Internationa& ,i&ed on 0e/e$2er 3, *))* a Motion ,or Re/onsideration*: .hi/h .as denied ,or &a/@ o, $erit 24 Order *+ o, #an%ar4 9, *))(. Petitioners and respondents then ,i&ed their Me$oranda *8 on Ma4 *(, *))( and Ma4 *+, *))(, respe/ti-e&4. B4 Order*9 o, #%ne 11, *))(, the R!C 'ranted respondentsE O$ni2%s Motion in part. !he dispositi-e portion o, the Order reads, ?%oted verbatim:
WHEREFORE, in -ie. o, the ,ore'oin', &et an A&ias ;rit o, xe/%tion i$$ediate&4 iss%e and the C&er@ o, Co%rt and x-O,i/io Sheri,, or an4 oH,I her 0ep%ties is dire/ted to i$p&e$ent the sa$e .ithin sixt4 6+)7 da4s ,ro$ re/eipt thereo,. !h%s, an4 and a&& s%/h 2ids or /ontra/ts entered into 24 respondent MM0A .ith third parties /o-erin' the .aste disposa& and $ana'e$ent .ithin the Metro Mani&a a,ter A%'%st 15, *))) are here24 de/&ared NULL and "OI0. Respondents are hen/e,orth en=oined and prohi2ited, .ith a stern .arnin', ,ro$ enterin' into an4 s%/h /ontra/t .ith an4 third part4 .hether dire/t&4 or indire/t&4, in -io&ation o, the /ontra/t%a& ri'hts o,
** *( *5 *: *+ *8 *9

Re/ords, "o&. II, p. 8:3. Id. at 81(-81:. Id. at 8(1-8(*. Id. at 8((-8(9. Id. at 85+. Id. at 9*5-9*9 and 9(1-9:*. Rollo, pp. 133-*)5.

petitioner #ANCOM %nder the BO! Contra/t A.ard, /onsistent .ith the S%pre$e Co%rtEs 0e/ision o, #an%ar4 (), *))*. Respondent MM0A is here24 dire/ted to SU$MIT the A$ended A'ree$ent /on/&%ded 24 petitioners .ith the pre-io%s MM0A o,,i/ia&s, or in its dis/retion i, it ,inds HitI $ore ad-anta'eo%s to the 'o-ern$ent, to re?%ire petitioners to $a@e ad=%st$ents in the Contra/t in a//ordan/e .ith existin' en-iron$enta& &a.s and other re&e-ant /on/erns, and therea,ter ,or.ard the A$ended A'ree$ent ,or si'nat%re and appro-a& 24 the President o, the Phi&ippines. !he /on/erned respondents are here24 ,%rther dire/ted to /o$p&4 ,%&&4 and in 'ood ,aith .ith its instit%tiona& o2&i'ations or %nderta@in's as pro-ided in Arti/&e 19 o, the BO! Contra/t. Let a /op4 o, this Order 2e ,%rnished the O,,i/e o, the C&er@ o, Co%rt and the Co$$ission on A%dit ,or its in,or$ation and '%idan/e. SO ORDERED.*3 6 $phasis in the ori'ina&7

On #%ne *(, *))( the R!C iss%ed an A&ias ;rit o, readin':

xe/%tion ()

WHEREAS, on Ma% &', &(((, a De)*+*on .as rendered 24 this Co%rt in the a2o-e-entit&ed /ase, the pertinent portions o, .hi/h is HsicI here%nder ?%oted as ,o&&o.s:
WHEREFORE, in -ie. o, the ,ore'oin', the Co%rt here24 renders =%d'$ent in ,a-or o, petitioners #ANCOM N"IRONM N!AL CORP and #ANCOM IN! RNA!IONAL 0 " LOPM N! PRO# C!S P!D., LIMI! 0 O< AUS!RALIAS HsicI, and a'ainst respondents GR A! R M !ROPOLI!AN MANILA SOLI0 ;AS! MANAG M N! COMM., and CON. ROB R!O N. A" N!A#A0O, in his /apa/it4 as Chair$an o, the said Co$$ittee, M !RO MANILA 0 " LOPM N! AU!CORI!D and CON. # #OMAR C. BINAD, in his /apa/it4 as Chair$an o, said A%thorit4, de/&arin' the Reso&%tion o, respondent Greater Metropo&itan Mani&a So&id ;aste Mana'e$ent Co$$ittee disre'ardin' petitionersE BO! A.ard Contra/t and /a&&in' ,or 2ids ,or and a%thori>in' a ne. /ontra/t ,or the Metro Mani&a .aste $ana'e$ent ILLEGAL anHdI VOID. Moreo-er, respondents and their a'ents are here24 PROHI$ITED and ENJOINED ,ro$ i$p&e$entin' the a,oresaid Reso&%tion and disre'ardin' petitionersE BO! A.ard Contra/t and ,ro$ $a@in' another a.ard in its p&a/e. Let it 2e e$phasi>ed that this Co%rt is not pre-entin' or stoppin' the 'o-ern$ent ,ro$ i$p&e$entin' in,rastr%/t%re
*3 ()

Id. at *)5. Re/ords, "o&. II, pp. 9:3-9+1.

pro=e/ts as it is a.are o, the pros/ription %nder P0 1919. On the /ontrar4, the Co%rt is pa-in' the .a4 ,or the ne/essar4 and $odern so&%tion to the perennia& 'ar2a'e pro2&e$ that has 2een the $a=or heada/he o, the 'o-ern$ent and in the pro/ess .o%&d ser-e to attra/t $ore in-estors in the /o%ntr4. SO ORDERED.

WHEREAS, on A,-,+t ., &(((, petitioners thro%'h /o%nse& ,i&ed a AMot*on /o0 E1e),t*onB .hi/h the Co%rt GRANTED in *t+ O0de0 dated A,-,+t 2, &(((F WHEREAS, as a /onse?%en/e thereo,, a W0*t o/ E1e),t*on .as iss%ed on A,-,+t 2, &((( and .as d%&4 ser-ed %pon respondents as per She0*//3+ Ret,0n dated A,-,+t &., &(((F WHEREAS, ON J,4% &', &((&, petitioners thro%'h /o%nse& ,i&ed an AO5n*6,+ Mot*on,B pra4in', a$on' others, ,or the iss%an/e o, an A&ias ;rit o, xe/%tion .hi/h the Co%rt GRANTED in its O0de0 dated J,ne , &((", the dispositi-e portion o, .hi/h reads as ,o&&o.s:
WHEREFORE, in -ie. o, the ,ore'oin', &et an A&ias ;rit o, xe/%tion i$$ediate&4 iss%e and the C&er@ o, Co%rt and x-O,i/io Sheri,, or an4 o, her 0ep%ties is dire/ted to i$p&e$ent the sa$e .ithin sixt4 6+)7 da4s ,ro$ re/eipt thereo,. !h%s, an4 and a&& s%/h 2ids or /ontra/ts entered into 24 respondent MM0A H.ithI third parties /o-erin' the .aste disposa& and $ana'e$ent .ithin the Metro Mani&a a,ter A%'%st 15, *))) are here24 de/&ared NULL and VOID. Respondents are hen/e,orth en=oined and prohi2ited, .ith a stern .arnin', ,ro$ enterin' into an4 s%/h /ontra/t .ith an4 third part4 .hether dire/t&4 or indire/t&4, in -io&ation o, the /ontra/t%a& ri'hts o, petitioner #an/o$ %nder the BO! Contra/t A.ard, /onsistent .ith the S%pre$e Co%rtEs 0e/ision o, #an%ar4 (), *))*. Respondent MM0A is here24 dire/ted to SU$MIT the A$ended A'ree$ent /on/&%ded 24 petitioners .ith the pre-io%s MM0A o,,i/ia&s, or in its dis/retion i, it ,inds HitI $ore ad-anta'eo%s to the 'o-ern$ent, to re?%ire petitioners to $a@e ad=%st$ents in the Contra/t in a//ordan/e .ith existin' en-iron$enta& &a.s and other re&e-ant /on/erns, and therea,ter ,or.ard the A$ended A'ree$ent ,or si'nat%re and appro-a& 24 the President o, the Phi&ippines. !he /on/erned respondents are here24 ,%rther dire/ted to /o$p&4 ,%&&4 and in 'ood ,aith .ith its instit%tiona& o2&i'ations or %nderta@in's as pro-ided in Arti/&e 19 o, the BO! Contra/t. Let a /op4 o, this Order 2e ,%rnished the O,,i/e o, the C&er@ o, Co%rt and the Co$$ission on A%dit ,or its in,or$ation and '%idan/e. SO ORDERED. x x x x 6 $phasis in the ori'ina&7

B4 &etter(1 o, A%'%st 1:, *))(, Chair$an <ernando ad-ised Sheri,, A&e=andro Q. Lo?%inario o, the O,,i/e o, the C&er@ o, Co%rt and x-O,i/io Sheri,,, Pasi' Cit4 R!C that:
1. MM0A has not entered into a ne. /ontra/t ,or so&id .aste $ana'e$ent in &ie% o, #ANCOMEs Contra/t. *. #ANCOMEs Contra/t has 2een re,erred to the O,,i/e o, the President ,or appropriate a/tion. (. ;itho%t the PresidentEs appro-a&, #ANCOMEs Contra/t /annot 2e i$p&e$ented.(*

Petitioners &ater /ha&&en'ed the R!C #%ne 11, *))( Order -ia petition ,or /ertiorari(( .ith pra4er ,or the iss%an/e o, a te$porar4 restrainin' order andJor .rit o, pre&i$inar4 in=%n/tion 2e,ore the CA. !he4 s%2se?%ent&4 ,i&ed an A$ended Petition(5 on Septe$2er *+, *))(. !o the A$ended Petition #ANCOM ,i&ed on O/to2er 9, *))( its Co$$ent(: a,ter .hi/h petitioners ,i&ed their Rep&4(+ on No-e$2er *5, *))(. B4 the /ha&&en'ed 0e/ision o, 0e/e$2er 13, *))(, the CA denied the petition and a,,ir$ed the #%ne 11, *))( R!C Order in this .ise:
!he S%pre$e Co%rt r%&ed that the #an/o$ /ontra/t has the ,or/e o, &a. and the parties $%st a2ide in 'ood ,aith 24 their respe/ti-e /ontra/t%a& /o$$it$ents. It is pre/ise&4 this prono%n/e$ent that the a&ias .rit o, exe/%tion iss%ed 24 respondent =%d'e see@s to en,or/e. x x x xxxx !he ,a/t that the #an/o$ /ontra/t has 2een de/&ared %ni$p&e$enta2&e .itho%t the PresidentEs si'nat%re, .o%&d not ex/%se petitionersE ,ai&%re to /o$p&4 .ith their %nderta@in's %nder Arti/&e 19 o, the /ontra/t. x x x
(1 (* (( (5 (: (+

Id. at 9+*. I2id. Rollo, pp. *):-**). Id. at **1-*(9. Id. at *(3-*:+. Id. at *99-*3:.

xxxx Petitioners /o$p&ain that respondent =%d'e ,o/%sed on&4 on re?%irin' the$ to per,or$ their s%pposed o2&i'ations %nder Arti/&e 19 o, the /ontra/t .hen pri-ate respondents are a&so re?%ired there%nder to post a Per,or$an/e Se/%rit4 a//epta2&e to the Rep%2&i/ in the a$o%nt a&&o.ed in the BO! La.. PetitionersE /o$p&aint is not =%sti,ied. x x x xxxx It /annot x x x 2e said that respondent =%d'e had 2een %n,air or one-sided in dire/tin' on&4 petitioners to ,%&,i&& their o.n o2&i'ations %nder Arti/&e 19 o, the #an/o$ /ontra/t. Co$p&ian/e .ith pri-ate respondentsE o2&i'ations %nder the /ontra/t had not 4et 2e/o$e d%e. xxxx !here is no de2ate that the tria& /o%rtEs Decision has attained ,ina&it4. On/e a =%d'$ent 2e/o$es ,ina& and exe/%tor4, the pre-ai&in' part4 /an ha-e it exe/%ted as a $atter o, ri'ht and the 'rantin' o, exe/%tion 2e/o$es a $andator4 or $inisteria& d%t4 o, the /o%rt. A,ter a =%d'$ent has 2e/o$e ,ina& and exe/%tor4, -ested ri'hts are a/?%ired 24 the .innin' part4. #%st as the &osin' part4 has the ri'ht to ,i&e an appea& .ithin the pres/ri2ed period, so a&so the .innin' part4 has the /orre&ati-e ri'ht to en=o4 the ,ina&it4 o, the reso&%tion o, the /ase. It is tr%e that the $inisteria& d%t4 o, the /o%rt to order the exe/%tion o, a ,ina& and exe/%tor4 =%d'$ent ad$its o, ex/eptions as 6a7 .here it 2e/o$es i$perati-e in the hi'her interest o, =%sti/e to dire/t the s%spension o, its exe/%tionF or 627 .hene-er it is ne/essar4 to a//o$p&ish the ai$s o, =%sti/eF or 6/7 .hen /ertain ,a/ts and /ir/%$stan/es transpired a,ter the =%d'$ent 2e/a$e ,ina& .hi/h /o%&d render the exe/%tion o, the =%d'$ent %n=%st. Petitioners ha-e not sho.n that an4 o, these ex/eptions exists to pre-ent the $andator4 exe/%tion o, the tria& /o%rtEs Decision.(8 6Ita&i/s in the ori'ina&7

PetitionersE Motion ,or Re/onsideration(9 ha-in' 2een denied 24 the CA 24 Reso&%tion o, Ma4 11, *))5, the present petition ,or re-ie. (3 .as ,i&ed on #%&4 1*, *))5 positin' that:
!C COUR! O< APP ALS GRA" LD RR 0 IN UPCOL0ING !C LO; R COUR! AN0 IN 0ISR GAR0ING !C <OLLO;ING PROPOSI!IONS: I
(8 (9 (3

Id. at 1*-13. Id. at *39-()+. Id. at (*-:5.

!C SUB# C! CON!RAC! IS IN << C!I" AN0 UNIMPL M N!ABL UN!IL AN0 UNL SS I! IS APPRO" 0 BD !C PR SI0 N!. II !C SUB# C! CON!RAC! ONLD CO" RS !C 0ISPOSI!ION O< (,))) !ONS O< SOLI0 ;AS! A 0AD. III !C ALL G 0 AM N0 0 AGR M N! IS ONLD A 0RA<! OR PROPOSAL SUBMI!! 0 BD R SPON0 N!S. I" R SPON0 N!S MUS! ALSO B MA0 !O COMPLD ;I!C !C IR CON!RAC!UAL COMMI!M N!S.5) 6Unders/orin' s%pp&ied7

#ANCOM ,i&ed on Septe$2er *), *))5 its Co$$ent51 on the petition to .hi/h petitioners ,i&ed their Rep&45* on #an%ar4 *9, *)):. On Ma4 5, *)):, #an/o$ Internationa& ,i&ed its Co$$ent,5( reiteratin' its position that it did not a%thori>e the ,i&in' 2e,ore the R!C 24 Att4. Mo&ina o, the #%&4 *3, *))* O$ni2%s Motion that i$p&eaded it as part4$o-ant. On #%&4 8, *)):, petitioners ,i&ed their Rep&455 to #an/o$ Internationa&Es Co$$ent. Petitioners ar'%e that sin/e the /ontra/t re$ains %nsi'ned 24 the President, it /annot 4et 2e exe/%ted. Ergo, the4 /on/&%de, the pro/eedin's .hi/h res%&ted in the iss%an/e o, an a&ias .rit o, exe/%tion Aran a,o%& o, the H#an%ar4 (), *))*I de/ision o, Hthe S%pre$eI Co%rt in G.R. No. 1585+:.B5: Petitioners 'o on to ar'%e that sin/e the /ontra/t /o-ers on&4 (,))) tons o, 'ar2a'e per da4 .hi&e Metro Mani&a 'enerates at &east +,))) tons o,
5) 51 5* 5( 55 5:

Id. at 5)-51. Id. at (8)-(95. Id. at *3:-()). Id. at (15-(1+. Id. at ((1-(((. Id. at 5(.

so&id .aste a da4, MM0A $a4 proper&4 2id o%t the other (,))) tons o, so&id .aste to other interested 'ro%ps or entities. Petitioners $oreo-er ar'%e that the a&&e'ed A$ended A'ree$ent /on/&%ded s%pposed&4 2et.een #ANCOM and ,or$er MM0A Chair$an Ben=a$in A2a&os is a $ere s/rap o, paper, a $ere dra,t or proposa& s%2$itted 24 #ANCOM to the MM0A, no a'ree$ent on .hi/h .as rea/hed 24 the partiesF and at a&& e-ents, express a%thorit4 o%'ht to ha-e ,irst 2een a//orded the MM0A to /on/&%de s%/h an a$ended a'ree$ent .ith #ANCOM, the ori'ina& /ontra/t ha-in' 2een /on/&%ded 2et.een the Rep%2&i/ o, the Phi&ippines and #ANCOM. <ina&&4, petitioners ar'%e that respondents sho%&d a&so 2e re?%ired to per,or$ their /o$$it$ents p%rs%ant to Arti/&e 195+ o, the /ontra/t. !he petition is i$pressed .ith $erit in &i'ht o, the ,o&&o.in' /onsiderations. Se/tion 1, R%&e (3 o, the R%&es o, Co%rt pro-ides:
S C!ION 1. Execution upon judgments or final orders. K xe/%tion sha&& iss%e as a $atter o, ri'ht, on $otion, %pon a =%d'$ent or order that disposes o, the a/tion or pro/eedin' %pon the expiration o, the period to appea& there,ro$ i, no appea& has 2een d%&4 per,e/ted. I, the appea& has 2een d%&4 per,e/ted and ,ina&&4 reso&-ed, the exe/%tion $a4 ,orth.ith 2e app&ied ,or in the /o%rt o, ori'in, on $otion o, the =%d'$ent o2&i'ee, s%2$ittin' there.ith /erti,ied tr%e /opies o, the =%d'$ent or =%d'$ents or ,ina& order or orders so%'ht to 2e en,or/ed and o, the entr4 thereo,, .ith noti/e to the ad-erse part4. !he appe&&ate /o%rt $a4, on $otion in the sa$e /ase, .hen the interest o, =%sti/e so re?%ires, dire/t the /o%rt o, ori'in to iss%e the .rit o, exe/%tion.

5+

19.1.:. !o s%pport its o2&i'ation %nder this Contra/t, the BO! COMPAND 6#ANCOM7 sha&& post Per,or$an/e Se/%rit4 either in the ,or$ o, /ash, $ana'erEs /he/@, 2an@ dra,t or other se/%rit4 reasona2&e and a//epta2&e to the CLI N! 6the Rep%2&i/7 in the a$o%nt a&&o.ed in the BO! La..

On/e a =%d'$ent 2e/o$es ,ina&, it is 2asi/ that the pre-ai&in' part4 is entit&ed as a $atter o, ri'ht to a .rit o, exe/%tion the iss%an/e o, .hi/h is the tria& /o%rtEs $inisteria& d%t4, /o$pe&&a2&e 24 $anda$%s.58 !here are instan/es, ho.e-er, .hen an error $a4 2e /o$$itted in the /o%rse o, exe/%tion pro/eedin's pre=%di/ia& to the ri'hts o, a part4. !hese instan/es /a&& ,or /orre/tion 24 a s%perior /o%rt, as .here:
17 the 70*t o/ e1e),t*on 8a0*e+ the 9,d-5entF *7 there has 2een a /han'e in the sit%ation o, the parties $a@in' exe/%tion ine?%ita2&e or %n=%stF (7 exe/%tion is so%'ht to 2e en,or/ed a'ainst propert4 exe$pt ,ro$ exe/%tionF 57 it appears that the /ontro-ers4 has ne-er 2een s%2$itted to the =%d'$ent o, the /o%rtF :7 the ter$s o, the =%d'$ent are not /&ear eno%'h and there re$ains roo$ ,or interpretation thereo,F or +7 it appears that the .rit o, exe/%tion has 2een i$pro-ident&4 iss%ed, or that *t *+ de/e)t*8e *n +,6+tan)e, or is iss%ed a'ainst the .ron' part4, or that the =%d'$ent de2t has 2een paid or other.ise satis,ied, or the .rit .as iss%ed .itho%t a%thorit4.59 6 $phasis and Unders/orin' s%pp&ied7

!hat a .rit o, exe/%tion $%st /on,or$ to the =%d'$ent .hi/h is to 2e exe/%ted, s%2stantia&&4 to e-er4 essentia& parti/%&ar thereo,, 53 it is sett&ed. It $a4 not th%s -ar4 the ter$s o, the =%d'$ent it see@s to en,or/e, :) nor 'o
58

59

53

:)

Gatchalian v. Court of Appeals, G.R. No. 1+1+5:, #%&4 (), *))5, 5(: SCRA +91, +99 6/itation o$itted7, Adla an v. !omol, G.R. No. +(**:, Apri& (, 133), 195 SCRA (1, (3 6/itations o$itted7, !orno v. "ntermediate Appellate Court , G.R. No. L-8*+**, O/to2er *9, 1399, 1++ SCRA 85*, 8:1 6/itations o$itted7, #amantasan ng $ungsod ng %a&nila v. "ntermediate Appellate Court , **8 Phi&. *93, *3* 6139+7 6/itations o$itted7, 'alinta a( Construction )uppl& Corporation v. *alen+uela , *)3 Phi&. *8), *8: 6139(7. Reburiano v. Court of Appeals, (+1 Phi&. *35, ()* 613337 6/itation o$itted7, $impin, Jr. v. "ntermediate Appellate Court, G.R. No. L-8)398, #an%ar4 (), 1398, 158 SCRA :1+, :**-*( 6/itations o$itted7. )epara v. Att&. %aceda, 5(1 Phi& 1, 9 6*))*7 6/itation o$itted7, #hilippine 'an( of Communications v. Court of Appeals, (55 Phi& 888, 831 613387, Government )ervice "nsurance )&stem v. Court of Appeals, G.R. No. 1)(:3), #an%ar4 *3, 133(, *19 SCRA *((, *:), #amantasan ng $ungsod ng %a&nila v. "ntermediate Appellate Court, **8 Phi& *93, *3* 6139+7. #hilippine *irginia !obacco Adm. v. Gon+ales, G.R. No. L-(5+*9, #%&4 (), 1383, 3* SCRA 18*, 19: 6/itations o$itted7.

2e4ond its ter$s. ;here the exe/%tion is not in har$on4 .ith the =%d'$ent .hi/h 'i-es it &i,e and ex/eeds it, it has no -a&idit4.:1 !his Co%rtEs #an%ar4 (), *))* 0e/ision in G.R. No. 1585+: he&d:
;e, there,ore, ho&d that the Co%rt o, Appea&s did not err .hen it de/&ared the existen/e o, a -a&id and per,e/ted /ontra/t 2et.een the Rep%2&i/ o, the Phi&ippines and #ANCOM. !here 2ein' a per,e/ted /ontra/t, MM0A /annot re-o@e or reno%n/e the sa$e .itho%t the /onsent o, the other. <ro$ the $o$ent o, per,e/tion, the parties are 2o%nd not on&4 to the ,%&,i&&$ent o, .hat has 2een express&4 stip%&ated 2%t a&so to a&& the /onse?%en/es .hi/h, a//ordin' to their nat%re, $a4 2e in @eepin' .ith 'ood ,aith, %sa'e, and &a. 6Arti/&e 1(1:, Ci-i& Code7. !he /ontra/t has the ,or/e o, &a. 2et.een the parties and the4 are expe/ted to a2ide in 'ood ,aith 24 their respe/ti-e /ontra/t%a& /o$$it$ents, not .ease& o%t o, the$. #%st as no2od4 /an 2e ,or/ed to enter into a /ontra/t, in the sa$e $anner, on/e a /ontra/t is entered into, no part4 /an reno%n/e it %ni&atera&&4 or .itho%t the /onsent o, the other. It is a 'enera& prin/ip&e o, &a. that no one $a4 2e per$itted to /han'e his $ind or disa-o. and 'o 2a/@ %pon his o.n a/ts, or to pro/eed /ontrar4 thereto, to the pre=%di/e o, the other part4. Nonethe&ess, it has to 2e repeated that a4tho,-h the )ont0a)t *+ a :e0/e)ted one, *t *+ +t*44 *ne//e)t*8e o0 ,n*5:4e5enta64e ,nt*4 and ,n4e++ *t *+ a::0o8ed 6% the P0e+*dent .:* 6 $phasis and Unders/orin' s%pp&ied7

!his Co%rtEs Apri& 1), *))* Reso&%tion a&so in G.R. No. 1585+: $oreo-er he&d:
x x x !he on&4 ?%estion 2e,ore the Co%rt is .hether or not there is a -a&id and per,e/ted /ontra/t 2et.een the parties. As to the ne/essit4, expedien/4, and .isdo$ o, the /ontra/t, these are o%tside the rea&$ o, =%di/ia& ad=%di/ation. !hese /onsiderations are pri$ari&4 and ex/&%si-e&4 a $atter ,or the President to de/ide. ;hi&e the Co%rt re/o'ni>es that the 'ar2a'e pro2&e$ is a $atter o, 'ra-e p%2&i/ /on/ern, it /an on&4 de/&are that the /ontra/t in ?%estion is a -a&id and per,e/ted one 2et.een the parties, 2%t the sa$e is +t*44 *ne//e)t*8e o0 ,n*5:4e5enta64e ,nt*4 and ,n4e++ *t *+ a::0o8ed 6% the P0e+*dent, the )ont0a)t *t+e4/ :0o8*d*nthat +,)h a::0o8a4 6% the P0e+*dent *+ ne)e++a0% /o0 *t+ e//e)t*8*t%.:( 6 $phasis and Unders/orin' s%pp&ied7
:1

:*

:(

E,uatorial Realt& Dev-t, "nc. v. %a&fair !heater, "nc ., (98 Phi& 99:, 93: 6*)))7 6/itations o$itted7, .a+areno v. Court of Appeals, (9( Phi& **3, *(1 6*)))7 6/itation o$itted7, 'obis v. #rovincial )heriff of Camarines .orte, *)+ Phi& *+, (( 6139(7 6/itation o$itted7, /indor )teel %fg. Co., "nc. v. Court of Appeals, G.R. No. L-(5((*, #an%ar4 *8, 1391, 1)* SCRA *8:, *95 6/itation o$itted7, Gamboa-s "ncorporated v. Court of Appeals, G.R. No. L-*(+(5, #%&4 *3, 138+, 8* SCRA 1(1, 1(8-1(9 6/itation o$itted7, Collector of "nternal Revenue v. Gutierre+, 1)9 Phi& *1:, *13-**) 6/itation o$itted7, *illoria v. #iccio, 3: Phi& 9)*, 9):-9)+ 613:57 6/itation o$itted7. %etropolitan %anila Development Authorit& v. Jancom Environmental Corporation , 5*: Phi&. 3+1, 391-9* 6*))*7. Rollo, p. (19.

Arti/&e 13 o, the /ontra/t pro-ides:


Arti/&e 13. ,,e/ti-it4. K !his Contra/t +ha44 6e)o5e e//e)t*8e ,:on a::0o8a4 24 the President o, the Rep%2&i/ o, HtheI Phi&ippines p%rs%ant to existin' La.s s%2=e/t to /ondition pre/edent in Arti/&e 19. !his Contra/t sha&& re$ain in ,%&& ,or/e and e,,e/t ,or t.ent4 ,i-e 6*:7 4ears s%2=e/t to rene.a& ,or another t.ent4 ,i-e 6*:7 4ears ,ro$ the date o, ,,e/ti-it4. S%/h rene.a& .i&& 2e s%2=e/t to $%t%a& a'ree$ent o, the parties and appro-a& 24 the HPIresident o, the Rep%2&i/ o, HtheI Phi&ippines. 6 $phasis and %nders/orin' s%pp&ied7

In iss%in' the a&ias .rit o, exe/%tion, the tria& /o%rt in e,,e/t ordered the en,or/e$ent o, the /ontra/t despite this Co%rtEs %ne?%i-o/a& prono%n/e$ent that a&2eit -a&id and per,e/ted, the /ontra/t sha&& 2e/o$e e,,e/ti-e on&4 %pon appro-a& 24 the President. Ind%2ita2&4, the a&ias .rit o, exe/%tion -aried the tenor o, this Co%rtEs =%d'$ent, .ent a'ainst essentia& portions and ex/eeded the ter$s thereo,.
x x x a &o.er /o%rt is .itho%t s%per-isor4 =%risdi/tion to interpret or to re-erse the =%d'$ent o, the hi'her /o%rt x x x. A =%d'e o, a &o.er /o%rt /annot en,or/e di,,erent de/rees than those rendered 24 the s%perior /o%rt. x x x !he in,erior /o%rt is 2o%nd 24 the de/ree as the &a. o, the /ase, and $%st /arr4 it into exe/%tion a//ordin' to the $andate. !he4 /annot -ar4 it, or exa$ine it ,or an4 other p%rpose than exe/%tion, or 'i-e an4 other or ,%rther re&ie,, or re-ie. it %pon an4 $atter de/ided on appea& ,or error apparent, or inter$edd&e .ith it, ,%rther than to sett&e so $%/h as has 2een re$anded. x x x:5

!he exe/%tion dire/ted 24 the tria& /o%rt 2ein' o%t o, har$on4 .ith the =%d'$ent, &e'a& i$p&i/ations /annot sa-e it ,ro$ 2ein' ,o%nd to 2e ,ata&&4 de,e/ti-e.:: Nota2&4, .hi&e the tria& /o%rt ratio/inated that it iss%ed on #%ne *(, *))( the a&ias .rit Ato set into $otion the &e'a& $e/hanis$ ,or Presidentia&

:5 ::

Doliente v. 'lanco, 98 Phi& +8), +85 613:)7 6/itation o$itted7. 'an( of the #hilippine "slands v. Green, 59 Phi& *95, *99 613*:7.

appro-a& and si'nat%re,B:+ it ,ai&ed to ta@e d%e /onsideration o, the ,a/t that d%rin' the penden/4 o, the O$ni2%s Motion, the /ontra/t had ear&ier 2een ,or.arded ,or appropriate a/tion on No-e$2er (, *))* 24 Chair$an <ernando to the O,,i/e o, the President, .ith re/o$$endation ,or its disappro-a&, .hi/h ,a/t the tria& /o%rt had 2een d%&4 in,or$ed o, thro%'h p&eadin's and open /o%rt $ani,estations.:8 Additiona&&4, it 2ears notin' that the #%ne 11, *))( Order o, the tria& /o%rt is &i@e.ise indisp%ta2&4 de,e/ti-e in s%2stan/e ,or ha-in' dire/ted the s%2$ission o, the dra,t A$ended A'ree$ent to the President. !he appe&&ate /o%rt, in a,,ir$in' the #%ne 11, *))( Order o, the tria& /o%rt, o-er&oo@ed the ,a/t that the A$ended A'ree$ent .as %nsi'ned 24 the parties and it instead spe/%&ated and rationa&i>ed that the s%2$ission thereo, to the President .o%&d at a&& e-ents so&-e the $o%ntin' 'ar2a'e pro2&e$ in Metro Mani&a:
;e ,ind that the s%2$ission o, the A$ended A'ree$ent to the President .i&& 2rea@ the i$passe no. existin' 2et.een the parties .hi/h has e,,e/ti-e&4 ha&ted the 'o-ern$entEs e,,orts to address Metro Mani&aEs $o%ntin' 'ar2a'e pro2&e$. x x x As &on' as petitioners re,%se to dea& .ith pri-ate respondents, the Metro Mani&a 'ar2a'e pro2&e$ .i&& on&4 /ontin%e to .orsen. x x x !hat the A$ended A'ree$ent /o%&d ha-e .e&& 2een ne'otiated, i, not /on/&%ded 2et.een pri-ate respondents and the ,or$er MM0A ad$inistration, is not ,ar-,et/hed. Petitioners do not disp%te that the President had re,erred the #an/o$ /ontra/t to then MM0A Chair$an Ben=a$in A2a&os ,or re/o$$endation. Petitioners a&so do not disp%te that pri-ate respondents ne'otiated .ith the MM0A ,or the a$end$ent o, the /ontra/t. Besides, the A$ended A'ree$ent does not -eer a.a4 ,ro$ the ori'ina& #an/o$ /ontra/t. x x x:9

:+ :8 :9

Rollo, p. *)*. Id. at 55. Rollo, p. 18.

!he A$ended A'ree$ent .as, as petitioners /orre/t&4 a&&e'e, $ere&4 a dra,t do/%$ent /ontainin' the proposa&s o, #ANCOM, s%2=e/t to the appro-a& o, the MM0A. As ear&ier stated, it .as not si'ned 24 the parties.:3 !he ori'ina& /ontra/t itse&, pro-ides in Arti/&e 18.+ that it A$a4 not 2e a$ended ex/ept 24 a .ritten H/Iontra/t si'ned 24 the parties.B+) It is e&e$entar4 that, 2ein' /onsens%a&, a /ontra/t is per,e/ted 24 $ere /onsent.+1 !he essen/e o, /onsent is the /on,or$it4 o, the parties to the ter$s o, the /ontra/t, the a//eptan/e 24 one o, the o,,er $ade 24 the otherF +* it is the /on/%rren/e o, the $inds o, the parties on the o2=e/t and the /a%se .hi/h sha&& /onstit%te the /ontra/t.+( ;here there is $ere&4 an o,,er 24 one part4 .itho%t a//eptan/e 24 the other, there is no /onsent and the /ontra/t does not /o$e into existen/e.+5 As distin'%ished ,ro$ the ori'ina& /ontra/t in .hi/h this Co%rt he&d in G.R. No. 1585+::
x x x the si'nin' and exe/%tion o, the /ontra/t 24 the parties /&ear&4 sho. that, as 2et.een the parties, there .as /on/%rren/e o, o,,er and a//eptan/e .ith respe/t to the $ateria& detai&s o, the /ontra/t, there24 'i-in' rise to the per,e/tion o, the /ontra/t. !he exe/%tion and si'nin' o, the /ontra/t is not disp%ted 24 the parties x x x,+:

:3

+) +1

+*

+(

+5 +:

*ide: $uxuria 0omes, "nc. v. Court of Appeals 6(+1 Phi&. 393, 1))5 H1333I7 .here this Co%rt ,o%nd: AA&tho%'h it appears that there .as an a'ree$ent ,or the de-e&op$ent o, the area, there is no sho.in' that the sa$e .as e-er per,e/ted and ,ina&i>ed. Pri-ate respondents presented in e-iden/e on&4 dra,ts o, a proposed $ana'e$ent /ontra/t .ith petitionerEs hand.ritten $ar'ina& notes 2%t the $ana'e$ent /ontra/t .as not p%t in its ,ina& ,or$. !he reason .h4 there .as no ,ina& %n/orre/ted dra,t .as 2e/a%se the parties /o%&d not a'ree on the stip%&ations o, said /ontra/t x x x. As a /onse?%en/e the $ana'e$ent dra,ts s%2$itted 24 the pri-ate respondents sho%&d at 2est 2e /onsidered as $ere %na//epted o,,ersFB and Ri(er v. 1ple 6G.R. No. L-:)53*, O/to2er *8, 1398, 1:: SCRA 9:, 357 .here this Co%rt he&d: AO, pri$e i$portan/e is the ,a/t that the proposed x x x /ontra/t, not ha-in' 2een si'ned 24 pri-ate respondent, &a/@s /onsent .hi/h is the ,irst essentia& re?%isite o, e-er4 /ontra/t 6Art. 1(13, Ci-i& Code7.B Rollo, p. (:9. ) edish %atch, A' v. Court of Appeals , G.R. No. 1*91*), O/to2er *), *))5, 551 SCRA 1, 19 6/itation o$itted7, "nsular $ife Assurance Compan&, $td. v. Asset 'uilders Corporation , G.R. No. 15851), <e2r%ar4 :, *))5, 5** SCRA 159, 1:3-1+) 6/itations o$itted7. 2irme v. 'u(al Enterprises and Development Corporation , G.R. No. 15++)9, O/to2er *(, *))(, 515 SCRA 13), *)+ 6/itation o$itted7, )alonga v. 2arrales, 13* Phi&. +15, +**-+*( 613917. I" A. !o&entino, COMM N!ARI S AN0 #URISPRU0 NC ON !C CI"IL CO0 O< !C PCILIPPIN S, 558 61338 ed.7. I2id. Rollo, pp. 1)9-1)3.

the parties did not, .ith respe/t to the A$ended A'ree$ent, 'et past the ne'otiation sta'e. No $eetin' o, $inds .as esta2&ished. ;hi&e there .as an initia& o,,er $ade, there .as no a//eptan/e. -en #ANCOM President A&,onso G. !%>on /on/eded, 24 &etter ++ o, #%ne 18, *))* to Chair$an <ernando, that the A$ended A'ree$ent .as a $ere proposa&:
Apropos to a&& these, .e are see@in' an %r'ent L CU!I" S SSION on 4o%r 2est ti$e and -en%e. ;e /an thresh %p $a=or points to esta2&ish a /o$$on perspe/ti-e 2ased on data and $erit. ;e are opti$isti/ 4o% sha&& then /onsider .ith /on,iden/e the proposed A$ended Contra/t .hi/h in/orporates the ad=%st$ents .e /o$$itted to as stated and ear&ier s%2$itted to 4o%r O,,i/e d%rin' the in/%$2en/4 o, 4o%r prede/essor, ,or e-a&%ation and appropriate a/tion 24 N 0A in /o$p&ian/e .ith the BO! La. and Arti/&e 19.1.1 o, o%r /ontra/t.+8

;hi&e respondents a-er that an a//eptan/e .as $ade, the4 ha-e not pro,,ered an4 proo,. ;hi&e indeed the MM0A, 24 a &etter+9 iss%ed 24 then MM0A Genera& Mana'er #ai$e Pa>, re?%ested then Se/retar4 o, #%sti/e Cernando B. Pere> ,or his &e'a& opinion on the dra,t A$ended A'ree$ent, no.here in the &etter is there an4 state$ent indi/atin' that the MM0A, or the Rep%2&i/ o, the Phi&ippines ,or that $atter, had appro-ed respondentsE proposa&s e$2odied in the said dra,t a'ree$ent. !he pertinent portions o, the &etter read:
Attention: CON. C RNAN0O B. P R M Se/retar4 S%2=e/t: Re?%est ,or Opinion Re'ardin' the Co$pro$ise O,,er o, #an/o$ n-iron$enta& Corporation ,or the M%ni/ipa& So&id ;aste Mana'e$ent o, Metro Mani&a
++ +8 +9

CA rollo, pp. 1)*-1)(. Id. at 1)(. Id. at *+(-*++.

0ear Se/retar4 Pere>: !his is to respe/t,%&&4 re?%est ,or an opinion ,ro$ 4o%r Conora2&e O,,i/e re'ardin' the Co$pro$ise Proposa& o,,ered 24 #ANCOM n-iron$enta& Corporation 6A#ANCOMB7 in re&ation to its Contra/t ,or the BO! I$p&e$entation o, the ;aste Mana'e$ent Pro=e/t ,or the San Mateo, Ri>a& ;aste 0isposa& Site dated 13 0e/e$2er 1338 6hereina,ter re,erred to as the BO! Contra/t ,or 2re-it47 .ith the Rep%2&i/ o, the Phi&ippines. xxxx x x x this representation is re?%estin' 4o%r Conora2&e O,,i/e to render a &e'a& opinion on the ,o&&o.in': 0oes the o,,er o, #ANCOM to te$porari&4 set aside the .aste-toener'4 p&ant and i$p&e$ent on&4 the other t.o $a=or /o$ponents o, the BO! Contra/t a$o%nt to a no-ation o, the BO! Contra/t, and there,ore ne/essitatin' a re-2iddin'N I, the sa$e does not a$o%nt to a no-ation, 24 .hat a%thorit4 $a4 #an/o$ set aside te$porari&4 a $a=or /o$ponent o, the BO! Contra/tN x x x x+3

On&4 an a2so&%te or %n?%a&i,ied a//eptan/e o, a de,inite o,,er $ani,ests the /onsent ne/essar4 to per,e/t a /ontra/t. 8) I, at a&&, the MM0A &etter on&4 sho.s that the parties had not 'one 2e4ond the preparation sta'e, .hi/h is the period ,ro$ the start o, the ne'otiations %nti& the $o$ent =%st 2e,ore the a'ree$ent o, the parties.81 O2-io%s&4, other $ateria& /onsiderations sti&& re$ained 2e,ore the A$ended A'ree$ent /o%&d 2e per,e/ted. At an4 ti$e prior to the per,e/tion o, a /ontra/t, %na//epted o,,ers and proposa&s re$ain as s%/h and /annot 2e /onsidered as 2indin' /o$$it$ents.8* Respe/tin' petitionersE ar'%$ent that respondents sho%&d 2e dire/ted to /o$p&4 .ith their /o$$it$ents %nder Arti/&e 19 o, the /ontra/t, this Co%rt is not /on-in/ed.

+3 8)

81 8*

Id. at *+(-*+:. /eldon Construction Corporation v. Court of Appeals , G.R. No. L-(:8*1, O/to2er 1*, 1398, 1:5 SCRA +19, +*9 6/itation o$itted7. %endo+a v. Court of Appeals, 51* Phi&. 15, *9 6*))17 6/itation o$itted7. $uxuria 0omes, "nc. v. Court of Appeals, s%pra note :3 at 1)):.

Arti/&e 19.*.1 o, the /ontra/t pro-ides:


19.*.1 !he BO! COMPAND here24 %nderta@es to pro-ide the ,o&&o.in' .ithin * $onths ,ro$ exe/%tion o, this Contra/t as an e,,e/ti-e do/%$ent: a7 s%,,i/ient proo, o, the a/t%a& e?%it4 /ontri2%tions ,ro$ the proposed shareho&ders o, the BO! COMPAND in a tota& a$o%nt not &ess than PCP :)),))),))) in a//ordan/e .ith the BO! La. and the i$p&e$entin' r%&es and re'%&ationsF 27 s%,,i/ient proo, o, ,inan/ia& /o$$it$ent ,ro$ a &endin' instit%tion s%,,i/ient to /o-er tota& pro=e/t /ost in a//ordan/e .ith the BO! La. and the i$p&e$entin' r%&es and re'%&ationsF /7 to s%pport its o2&i'ation %nder this Contra/t, the BO! COMPAND sha&& s%2$it a se/%rit4 2ond to the CLI N! in a//ordan/e .ith the ,or$ and a$o%nt re?%ired %nder the BO! La.. 6Unders/orin' s%pp&ied7

As this Co%rt he&d in G.R. No. 1585+::


As /&ear&4 stated in Arti/&e 19, #ANCOM %ndertoo@ to /o$p&4 .ith the stated /onditions .ithin * $onths ,ro$ exe/%tion o, the Contra/t as an e,,e/ti-e do/%$ent. Sin/e the President o, the Phi&ippines has not 4et a,,ixed his si'nat%re on the /ontra/t, the sa$e has not 4et 2e/o$e an e,,e/ti-e do/%$ent. !h%s, the t.o-$onth period .ithin .hi/h #ANCOM sho%&d /o$p&4 .ith the /onditions has not 4et started to r%n. x x x8( 6Unders/orin' s%pp&ied7

A ,ina& point. !he ar'%$ent raised a'ainst the a%thorit4 o, Att4. Mo&ina to ,i&e respondentsE O$ni2%s Motion 2e,ore the R!C does not &ie. Representation /ontin%es %nti& the /o%rt dispenses .ith the ser-i/es o, /o%nse& in a//ordan/e .ith Se/tion *+, R%&e 1(9 o, the R%&es o, Co%rt. 85 No s%2stit%tion o, /o%nse& o, re/ord is a&&o.ed %n&ess the ,o&&o.in' essentia& re?%isites /on/%r: 617 there $%st 2e a .ritten re?%est ,or s%2stit%tionF 6*7 it $%st 2e ,i&ed .ith the .ritten /onsent o, the /&ientF 6(7 it $%st 2e .ith the .ritten /onsent o, the attorne4 to 2e s%2stit%tedF and 657 in /ase the /onsent o, the attorne4 to 2e s%2stit%ted /annot 2e o2tained, there $%st 2e at &east a
8(

85

%etropolitan %anila Development Authorit& v. Jancom Environmental Corporation , s%pra note :* at 391. Rollo, p. **.

proo, o, noti/e that the $otion ,or s%2stit%tion .as ser-ed on hi$ in the $anner pres/ri2ed 24 the R%&es o, Co%rt.8: In the /ase at 2ar, there is no sho.in' that there .as a -a&id s%2stit%tion o, /o%nse& at the ti$e Att4. Mo&ina ,i&ed the O$ni2%s Motion on #%&4 *3, *))* 2e,ore the R!C, nor that he had prior&4 ,i&ed a ;ithdra.a& o, Appearan/e. Ce th%s /ontin%ed to en=o4 the pres%$ption o, a%thorit4 'ranted to hi$ 24 respondents. ;hi&e /&ients %ndo%2ted&4 ha-e the ri'ht to ter$inate their re&ations .ith their /o%nse& and e,,e/t a s%2stit%tion or /han'e at an4 sta'e o, the pro/eedin's, the exer/ise o, s%/h ri'ht is s%2=e/t to /o$p&ian/e .ith the pres/ri2ed re?%ire$ents. Other.ise, no s%2stit%tion /an 2e e,,e/ti-e and the /o%nse& .ho &ast appeared in the /ase 2e,ore the s%2stit%tion 2e/a$e e,,e/ti-e sha&& sti&& 2e responsi2&e ,or the /ond%/t o, the /ase. 8+ !he r%&e is intended to ens%re the order&4 disposition o, /ases.88 In the a2sen/e then o, /o$p&ian/e .ith the essentia& re?%ire$ents ,or -a&id s%2stit%tion o, the /o%nse& o, re/ord, Att4. Mo&ina en=o4s the pres%$ption o, a%thorit4 'ranted to hi$ 24 respondents. In &i'ht o, the ,ore'oin' dis?%isition, a dis/%ssion o, the other $atters raised 24 petitioners has 2een rendered %nne/essar4. WHEREFORE, the petition is GRANTED. !he 0e/ision dated 0e/e$2er 13, *))( and Reso&%tion dated Ma4 11, *))5 o, the Co%rt o, Appea&s in CA-G.R. SP No. 898:* are REVERSED and SET ASIDE. !he
8:

8+ 88

#ioneer "nsurance 3 )uret& Corporation v. De Dios !ransportation Co., "nc ., 5:5 Phi&. 5)3, 5*8 6*))(7 6/itation o$itted7, )antana4Cru+ v. Court of Appeals, 515 Phi&. 58, +1 6*))17 6/itations o$itted7, 'ernardo v. Court of Appeals, (51 Phi&. 51(, 5*:-+ 613387 6/itations o$itted7, .acura& v. .$RC, ((+ Phi&. 853, 8:5-: 613387 6/itation o$itted7, Rinconada !elephone Compan&, "nc. v. 'uenviaje, G.R. No. 53*51-5*, Apri& *8, 133), 195 SCRA 8)1, 8:5-8::, )umadchat v. Court of Appeals, 138 Phi&. 5+:, 588 6139*7. .acura& v. .ational $abor Relations Commission, s%pra note 8: at 8::. )antana4Cru+ v. Court of Appeals, s%pra note 8: at +* 6/itation o$itted7.

#%ne 11, *))( Order o, the Re'iona& !ria& Co%rt o, Pasi', Bran/h +9 in SCA No. 13:: is de/&ared NULL and VOID. SO ORDERED. CONCHITA CARPIO MORALES Asso/iate #%sti/e ; CONCUR:

LEONARDO A. ;UISUM$ING Asso/iate #%sti/e Chairperson

ANTONIO T. CARPIO Asso/iate #%sti/e

DANTE O. TINGA Asso/iate #%sti/e

PRES$ITERO J. VELASCO, JR. Asso/iate #%sti/e

ATTESTATION I attest that the /on/&%sions in the a2o-e 0e/ision .ere rea/hed in /ons%&tation 2e,ore the /ase .as assi'ned to the .riter o, the opinion o, the Co%rtEs 0i-ision. LEONARDO A. ;UISUM$ING Asso/iate #%sti/e Chairperson

CERTIFICATION

P%rs%ant to Arti/&e "III, Se/tion 1( o, the Constit%tion, and the 0i-ision ChairpersonEs Attestation, it is here24 /erti,ied that the /on/&%sions in the a2o-e 0e/ision .ere rea/hed in /ons%&tation 2e,ore the /ase .as assi'ned to the .riter o, the opinion o, the Co%rt.

REYNATO S. PUNO A/tin' Chie, #%sti/e