RTC jurisdiction over Ilijan case already upheld by higher courts
SMC claims
By MYRNA M. VELASCO – March 3, 2020
from Manila Bulletin
The jurisdiction of the Mandaluyong regional trial court (RTC) over the contested payments on the power supply contract of the Ilijan gas-fired power asset has already been upheld by the higher courts, according to San Miguel Corporation.
It qualified that such had been based on rulings rendered by the Court of Appeals and Supreme Court last year.
SMC effectively quashed the argument raised by Leyte Representative Vicente Veloso that the Mandaluyong RTC has no jurisdiction over the case of state-run Power Sector Assets and Liabilities Management Corporation versus South Premiere Power Corporation (SPPC) over the Ilijan case. SPPC is a subsidiary of SMC, which is the IPP Administrator (IPPA) of the Ilijan plant.
“Both the Supreme Court and the Court of Appeals have already ruled that the Mandaluyong RTC has jurisdiction over the pending case between SPPC and PSALM on computation of generation charges under the Ilijan power contract,” the company said.
Citing a verdict issued by the Mandaluyong lower court on September 24 last year, SMC reiterated that the RTC had already assumed jurisdiction over the case, even after this was questioned by PSALM through a petition for certiorari that was filed with the appellate court.
Subsequently, the CA had dismissed PSALM’s petition. Later on though, a motion for reconsideration on the petition had also been lodged by the state-run firm.
It was in September 2015 when the Mandaluyong RTC issued a writ of preliminary injunction “prohibiting PSALM from terminating the IPPA Agreement (on the Ilijan plant) while the case is pending.”
The government-owned company has further questioned the court’s issuance of injunctive relief, but its petition was correspondingly denied by the country’s second highest court.
Further, on a decision of the Supreme Court around March 4 last year, it junked PSALM’s plea, stipulating that it failed “to sufficiently show that the Court of Appeals committed any reversible error in its decision.” That resolution was rendered final and executory on August 5, 2019.
The protracted legal battle between PSALM and SPPC intensified anew this year as the latter made public its claims of ₱23.94 billion against the conglomerate.
SMC nevertheless indicated that it does not owe PSALM that amount because the ‘differing interpretations’ of the parties on the fees to be paid by SPPC for the Ilijan plant have yet to be resolved by the courts.
“SPPC stands by its earlier statement that it has not received monthly billing statements from PSALM that indicate an alleged deficiency claim amounting to ₱23.94 billion,” the company stressed.
