CA affirms ruling favoring Piatco

MANILA, Philippines - The Court of Appeals (CA) has affirmed its ruling last year requiring the government to release from escrow $371.43 million in just compensation to Philippine International Air Terminals Co. Inc. (Piatco) before taking full control of the Ninoy Aquino International Airport Terminal 3 (NAIA-3).

In a two-page resolution, the former special 13th Division of the CA affirmed its decision in October last year voiding the order of Pasay City Regional Trial Court Branch 117 that required the government to deposit the amount in an escrow account and imposed conditions for its release as just compensation over the earlier expropriation of NAIA-3.

The CA denied the motion filed by the government subcontractors Takenaka and Asahikosan corporations seeking reversal of its decision.

The tribunal ruled that the government and the two Japanese firms failed to raise new arguments that would warrant the reversal of its decision.

In its earlier ruling, the CA struck down the mode of just compensation payment for Piatco set by the Pasay court.

The CA granted the petition of Piatco and held that the Pasay court erred in issuing the orders pursuant to its May 23, 2011 ruling that ordered the government to pay the developer net just compensation amounting to $116,348,641.10.

The assailed order of the Pasay court required Piatco to submit “a warranty that the structures and facilities of NAIA-3 are free from all liens and encumbrances; an undertaking that it is assuming sole responsibility for any claims from third persons arising from or relating to the design or construction of any structure or facility of NAIA-3 structures, if any; and a duly executed deed transferring the title of the NAIA-3 structures and facilities to the government, without prejudice to the amount which will finally be awarded to it by the appellate court.”

But the CA said these conditions violated the law and Supreme Court rulings on expropriation proceedings, which state that any delay in the payment of just compensation is tantamount to a deprivation of one’s property.