Court of Appeals allows P100-million suit vs Fraport to proceed

MANILA, Philippines - The P100-million damage suit filed by law office Villaraza Cruz Marcel and Angangco against German firm Fraport AG over defamatory statements made before the International Center for Settlement of Investment Disputes (ICSID) of the World Bank can now proceed.

The suit filed by the law office popularly known as The Firm is in connection with Fraport’s voided contract for the construction of the Ninoy Aquino International Airport (NAIA) Terminal 3.

The Court of Appeals recently dismissed a petition of Fraport and gave the Makati City regional trial court the go-signal to proceed with the case.

In a 16-page decision, the special 14th division of the appellate court upheld the lower court’s ruling that junked Fraport’s motion to dismiss the damage suit.

“We have carefully examined the records at hand and found no error on the part of the court a quo in denying petitioners’ Omnibus Motion to Dismiss,” read the ruling penned by Associate Justice Jane Aurora Lantion and released last week.

The CA did not give credence to Fraport’s claim that the trial court committed grave abuse of discretion in denying its motion to dismiss despite the fact that the statements it made before the ICSID are considered privileged communication, relevant and part of its request for arbitration.

It held that the arguments raised by Fraport AG are considered matters of defense, which should be presented and scrutinized during trial of the case.

The CA ruled that Fraport failed to justify its allegations against the RTC.

“Hence, petitioners’ insistence that the (RTC) court gravely abused its discretion in issuing the assailed orders has no solid grounds to stand on,” the CA said.

Associate Justices Isaias Dicdican and Danton Bueser concurred in the ruling.

Aside from the lawyers of The Firm, former presidential adviser on strategic projects Gloria Tan-Climaco also filed a P100-million damage suit against Fraport AG.

The German firm had also sought its immediate dismissal but likewise failed when the CA dismissed its petition last year.

The case stemmed from Fraport’s allegation before ICSID that they have engaged the services of The Firm upon the recommendation of Tan-Climaco.

They accused the law office of extorting millions of dollars, a portion of which will be given to ranking government officials, including Tan-Climaco, to ensure the safety of their business interests in the country.

The Firm, in its complaint, said that Fraport’s allegation was an attack on their reputation.

Fraport AG was the foreign partner of the Philippine International Air Terminals Co. (Piatco), which won in 1997 the build-operate-contract of NAIA 3.

However, the Supreme Court nullified the contract for the construction of NAIA 3 for being disadvantageous to the government.