Power of the TRO

As the country’s leadership tries to develop new ties with non-traditional partners like China, the government has found itself dumbfounded in coming up with an explanation as to why one of Hongkong’s most esteemed companies has become a hostage to the so-called TRO or Temporary Restraining Order plague.

Cathay Pacific (CX), the flag carrier of Hongkong, has found itself powerless to change its service provider during the last 20 years because of a TRO issued by one of our lower courts.

After the expiration of its airport services contract with Paircargo, CX on Jan. 2004 bidded out its cargo handling and import warehousing services for its flights in Manila.

Miascor Logistics won the bidding for the contract which was to commence June 1, 2004. But Paircargo on March 25, 2004 filed a case for injunction and prohibition before the Pasay Regional Trial Court alleging that its contract with CX was valid until May 31, 2007.

A TRO was issued on May 24, 2004 which was extended by Judge Francisco Mendiola for another 17 days on May 27. And then on June 11, a writ of preliminary injunction was issued which restrained CX from dealing with parties other than Paircargo.

CX then filed a petition for certiorari with the Court of Appeals (CA) as it questioned the issuance of the injunction. CX said it found the manner Mendiola handled this case to be irregular, citing among other things the surprisingly low injunction bond required of the petitioner.

On Feb. 7, 2005, the CA dismissed the certiorati petition and directed the trial court to resolve the case with dispatch.

If as claimed by Paircargo that its contract with CX ends May 31, 2007, the injunction would seem to have become moot and academic. Thus, CX should be free to award the contract to Miascor.

And so CX advised Miascor that it would transfer its cargo handling operations effective June 1, 2007.

However, CX learned the injunction remains in force despite the expiration of the contract between Paircargo and CX. And so the parties proceeded to trial with the amount of alleged damages suffered by Paircargo as the remaining issue.

On Nov. 26, 2007, CX’s counsel wrote the Supreme Court to address the delays in the resolution of the case.

And then on Jan. 16, 2008, the Pasay RTC issued an order which basically extended the CX- Paircargo contract up to 2017.

And then there was a compromise agreement that basically provided for a cargo warehouse agreement between CX and Paircargo until March 31, 2016 and for the conduct of a bidding prior to the contract’s expiry where Paircargo would be eligible to participate.

Miascor joined the bidding and was awarded the contract to commence in April 2016, but Paircargo again filed with the same Pasay RTC, resulting in the issuance of a TRO against CX last March 22, followed by a writ of preliminary injunction dated March 30, 2016.

The said orders of the Pasay RTC were elevated to the CA where they are now pending.

The legal battle between CX and Paircargo has dragged on for almost seven years, and it cannot be helped if observers speculate about Paircargo’s strong ties with the lower courts that has allowed it to hold CX hostage for so many years.

No less than President Duterte has expressed his indignation over corruption in government, in particular the issuance of TROs by the courts, as he said that TRO simply means money for the judges. It is about time the Supreme Court take heed.

A taxing job

Friday mornings at his office at the Bureau of Internal Revenue (BIR) are just about as hectic as Monday mornings for newly appointed BIR deputy commissioner Jesus Clint Aranas.

But working hard is nothing new for Aranas, who used to run his own tax and business advisory firm as managing partner of Aranas Law.

When things get tough at his new post, he takes refuge in his office at the BIR, which features part of his collection: huge statues of Tony Stark (Iron Man) sitting behind the desk, Commissioner Gordon (of Gotham City) and Optimus Prime, to name a few.

Over his favorite meal which is pizza and fried bananas, the 49-year-old Aranas  who now heads BIR’s legal division, reveals that he has been collecting superhero replicas (about a 100) since he was a kid.

He says the presence of these replicas in his office changes the image of the traditional tax man, whom nobody wants to deal with.

“That’s exactly what the new BIR administration wants to change. People don’t look forward to paying taxes or having to confront demanding and sometimes corrupt BIR agents. We want to make it easier for taxpayers and make it seem less like a punishment for everyone. We’re also cleaning up house, extracting corrupt BIR officials and employees and filing charges against them,” he pointed out.

Aranas has always been an advocate for federalism, saying it is the way to go if we want the rest of the country to progress. He noted that at present, regions are getting unequal treatment in terms of budget and development projects and that federalism will give all regions the opportunity to grow progressively.

Prior to his BIR appointment, he spends weekends riding his Colnago C60 bike with friends in Nuvali, Laguna. He hasn’t gone cycling for over a month now.

Whatever little free time he has now is reserved for his six children, who’ve inherited their father’s passion for superheroes and video games.

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