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Supreme Court stops Pasay RTC order in NAIA 3 appraisal issue

[ Manila Bulletin Online ] July 18, 2008

The Supreme Court (SC) has stopped the Pasay City regional trial court (RTC) from implementing its orders appointing DG Jones and Partners Philippines, Inc., as appraisers for the Ninoy Aquino International Airport (NAIA) Terminal III and directing the government to certify to the availability of $ 1.9 million for appraisal fee.

In a resolution issued by the SC’s second division chaired by Senior Justice Leonardo A. Quisumbing, the SC acted on a petition filed by Executive Secretary Eduardo R. Ermita for the government.

The government’s petition assailed the Jan. 7, 2008 order issued by Branch 117 of the Pasay City RTC chaired by Judge Jesus B. Mupas.

Among other things, the Jan. 7, 2008, RTC order required the government "to submit the Certificate of Availability of Funds for the necessary full compensation to the Philippine International Air Terminals Co., Inc. (PIATCO), the costs and expenses entailed in the expropriation"; the appointment of DG Jones and Partners Philippines, Inc. to conduct the appraisal of the NAIA Terminal III facility, and a "Certificate of Availability of Funds to cover the appraisal fee of DG Jones in the amount of US$ 1,900,000.00."

Acting on the government petition, the SC resolved to:

1. "Require respondents (Judge Mupas and PIATCO) to file comment, not a motion to dismiss, within 10 days from notice.

2. "Issue, effective immediately and continuing until further orders from this court, a temporary restraining order enjoining the regional trial court Br. 117, Pasay City, and respondent, their agents, representatives and anyone acting on their behalf from implementing and enforcing the Order dated 7 January 2008 of the regional trial court, Br. 117, Pasay City, in Civil Case No. 04-0876 CFM, entitled ‘Republic of the Philippines, plaintiff, vs. Philippine Air Terminals Co., Inc. (PIATCO), defendants, Takenada Corporation and Asahikosan Corporation, plaintiffs-in-intervention for Expropriation, as well as the Order dated 3 May 2007 which appointed DG Jones and Partners Philippines, Inc., to conduct the appraisal of the NAIA Terminal 3 facililt7y, and the Order dated 18 May 2007 which directed petitioners to submit a Certificate of Availability of Funds to cover the appraisal fee of DG Jones in the amount of US41,900,000."

The government’s petition filed by Solicitor General Agnes VST Devanadera manifested its opposition to the designation of DG Jones as consultant to the board of commissioners formed by the trial court to determine just compensation to PIATCO for building NAIA’s state-of-the art Terminal III.

"It is our position that the appraiser’s fee of DG Jones amounting to almost $ 2 M is too much. Besides, DG Jones was not listed in any submission by the parties. It was only the court that designated it," Devanadera said.

"Since it is the government that will be paying for that, we believe that it should be subjected to selection process," she said. (Rey G. Panaligan)
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