G.R. No. L-22481. June 30, 1969
REPUBLIC OF THE PHILIPPINES, PLAINTIFF-APPELLEE, VS. PHILIPPINE AIR LINES, INC., DEFENDANT-APPELLANT.
FERNANDO, J.:
In this appeal from a decision of the Court of First Instance of Manila
of December 23, 1963, in
Civil Case No. 47365, plaintiff-appellee, Republic of
the Philippines,
and defendant-appellant, Philippine Air Lines, Inc. submitted, on June 14, 1969, a compromise agreement
in a pleading entitled Joint Petition for Judgment in Accordance with
Agreement.
The Joint Petition reads thus:
“COME NOW the plaintiff-appellee
Republic of the Philippines and the defendant-appellant Philippine Air Lines,
Inc., by undersigned Counsel, and to this Honorable Court respectfully state
that:
1.
The parties have arrived at an
amicable settleÂment of their dispute in the above-numbered case and have
executed a Compromise Agreement, a copy of which (signed by the parties and
their respective counsel) is hereto attached as Annex “A.”
2.
It is the mutual agreement of the
parties that the attached Compromise Agreement shall supersede and novate the judgment of the Court of First Instance of
Manila in Civil Case No. 47365 dated December 23, 1963 from which the defendant-appellant
appealed.
3.
The attached Compromise Agreement
is fair to all concerned and is not contrary to law, morals, public order or
public policy.
4.
The parties, therefore,
respectfully submit herewith the Compromise Agreement (Annex “A”
hereof) for the approval of this Honorable Court.
PREMISES CONSIDERED, it is respectfully prayed that the Compromise
Agreement embodied in Annex “A” hereof be approved and that an order
issue setting aside the judgment of the lower court and dismissing plaintiff’s
complaint and defendant’s counterclaim, without costs.
The parties pray for such other relief as may be deemed just and
proper in the premises.
Manila/Makati, Rizal, Philippines,
June 9, 1969.
REPUBLIC
OF THE PHILIPPINES PHILIPPINE
AIR LINES, INC.
[Plaintiff-Appellee]
[Defendant-Appellant]
By By
(Sgd) FEDERICO B. ABLAN, JR. (Sgd) BUENAVENTURA
M. VELOSO
Acting Director
of Civil Aviation Senior
Vice President”
The Compromise Agreement, Annex A of the above joint petition, is
worded in the following manner:
“WHEREAS, on June 23, 1961, the Republic of the Philippines
filed a complaint against the Philippine Air Lines, Inc. for the recovery of
the principal sum of P1,357,686.14 representing the
unpaid balance of take-off, terminal, landing, parking fees and rents due from
the latter for the use of government air navigation facilities during the
period September 2, 1947 to June 30, 1950, which case was docketed as Civil
Case No. 47365 of the Court of First Instance of Manila;
WHEREAS, Philippine Air Lines, Inc. filed an answer alleging that
(a) the demand of the plaintiff had been fully and completely released by
virtue of a comproÂmise agreement entered into on September 13, 1950 with the
National Airports Corporation under which Philippine Air Lines, Inc. paid the
amount of P587,641.36; (c) Philippine Air Lines, Inc. is exempt from payment of
landing charges or fees under the provisions of its franÂchise and (d) the
rates charged were unreasonable, confiscatory and had been fixed arbitrarily;
WHEREAS, Philippine Air Lines, Inc. asserted a counterclaim on the
ground that the plaintiff had failed to provide for and maintain radio
communications systems for inter-island service, airport buildings and
navigation facilities, facilities and equipment which Philippine Air Lines,
Inc. had to acquire, operate and maintain on its own account, and which
expenses should be properly charged against the Republic of the Philippines and
paid to Philippine Air Lines, Inc.;
WHEREAS, on December 23,
1963 the Court of First Instance of Manila decided the case against
Philippine Air Lines, directing the latter to pay the amount of P1,357,686.14 with legal interest from August 10, 1960 until paid;
WHEREAS, Philippine Air Lines promptly appealed
the decision to the Supreme Court where the case is now docketed as Case G. R.
No. L-22481, with the Republic of the Philippines
as plaintiff-appellee and the Philippine Air Lines,
Inc. as defendant-appellant;
WHEREAS, the parties have agreed to settle the disputes and claims
being litigated in the above-numbered case under the terms and conditions
hereinafter set forth:
NOW, THEREFORE, in consideration of the preÂmises, the parties have
agreed and covenanted, each with the other, as follows:
1.
For and in consideration of the
sum of ONE MILLION THREE HUNDRED FIFTY SEVEN THOUSAND SIX HUNDRED EIGHTY SIX
AND 14/100 PESOS (P1,357,686.14), Philippine Currency, to be paid and delivered
in the following manner:
(a)
TWO HUNDRED FIFTY SEVEN THOUSAND
SIX HUNDRED EIGHTY SIX AND 14/100 PESOS (P257,686.14) upon the approval of this
Compromise Agreement by the Supreme Court;
(b)
The balance of ONE MILLION ONE
HUNDRED THOUSAND PESOS (P1,100,000.00), in eleven (11) monthly installments at
ONE HUNDRED THOUSAND PESOS (P100,000.00) per installÂment commencing thirty
(30) days from the approval of this Compromise Agreement by the Supreme Court,
as full and
complete payment, settlement and discharge of any and all claims or causes of
action of the Republic of the Philippines
which are involved or being litigated in G. R. No. L-22481, the Republic of the
Philippines
hereby relinquishes and waives any and all rights arising out of the award in
Civil Case No. 47365 of the Court of First Instance of Manila entitled
“Republic of the Philippines,
plaintiff vs. Philippine Air Lines, Inc., defendant.”
2.
It is expressly understood that
this Compromise Agreement novates and supersedes the
judgment rendered by the Court of First Instance of Manila in the said Civil
Case No. 47365 of the court, and that upon complete payment of the total amount
of ONE MILLION THREE HUNDRED FIFTY SEVEN THOUSAND SIX HUNDRED EIGHTY SIX AND
14/100 PESOS (P1,357,686.14) aforesaid, all disputes
and claims between the parties hereto in G. R. No. L-22481 of the Supreme Court
shall stand released, discharged and fully settled.
3.
Upon the failure of Philippine Air
Lines, Inc. to pay any installment, the judgment approving this comproÂmise
shall become immediately executory.
4.
The parties hereto agree and
undertake to file with the Supreme Court a joint petition for the approval of
this Compromise Agreement.
5.
The parties hereto further agree
to bear their respective attorney’s fees and costs of the proceedings before
the Court of First Instance and the Supreme Court.
IN WITNESS WHEREOF, the parties hereto, on their own behalf, assisted
by their duly authorized attorneys, have signed this Compromise Agreement on the
9th day of June 1969 at Manila/Makati, Philippines.
REPUBLIC OF THE PHILIPPINES PHILIPPINE
AIR LINES, INC.
By By
(Sgd) FEDERICO B. ABLAN, JR. (Sgd) BUENAVENTURA M. VELOSO
Acting Director
of Civil Aviation Senior
Vice President”
WHEREFORE, the compromise agreement as embodied in the
joint petition for judgment is approved, and the parties enÂjoined to comply
strictly with the terms thereof. With
this disposition of this appeal, the decision of the Court of First Instance of
Manila in Civil case No. 47365 dated December 23, 1963 is deemed superseded and
of no further force and effect. Without costs.
Concepcion, C.J., Reyes, J.B.L., Makalintal, Zaldivar, Sanchez, Ruiz
Castro, Capistrano, Teehankee, and Barredo, JJ., concur.
Dizon, J., did not take part.