The Court of Appeals (CA) has declared that the Philippine International Air Terminals Co., Inc. (PIATCO) is the owner of the Ninoy Aquino International Airport (NAIA) Terminal 3, unless the government pays the P16-billion just compensation earlier awarded to the firm by a lower court.
In a Feb 13 resolution, CA’s Former Special 13th Division denied the motion for reconsideration filed by the government and Japanese firms Takenaka and Asahikosan seeking a reversal of the appellate court’s October 20, 2014 decision that upheld PIATCO’s ownership rights over NAIA Terminal 3.
The decision, penned by Associate Justice Franchito Diamante and concurred by Associate Justices Danto Bueser and Melchor Sadang, said, “there are no new grounds or bases sufficient to compel modification or reversal of the said challenged decision.”
The Oct 2014 decision ruled that the Pasay City Regional Trial Court Branch 117, under Judge Eugenio de la Cruz, “gravely abused its discretion” when it allowed the government to exercise ownership over NAIA Terminal 3 and to settle with PIATCO with a compensation of P16 billion deposited in an escrow account, with conditions set for its release.
Moreover, the CA did not side with the lower court and said it was wrong to allow the takeover upon a mere deposit, adding that the amount of compensation is still pending appeal before the Supreme Court (SC).
“We agree with PIATCO that deposit of just compensation in an escrow account does not constitute ‘payment’ that would extinguish an obligation as contemplated in the Civil code and other relevant laws,” the CA stated last year.
The appellate court also pointed out that the SC has recognized PIATCO as the rightful owner of NAIA Terminal 3. PIATCO, together with its German partner Fraport, won the contract to build the terminal in 1997.
In 2002, the Philippines nullified the contract with PIATCO due to allegations that the consortium violated the Anti-Dummy Law.
