UPDATE: Northrail Project (Phases 1 and 2)
14 May 2009: Northrail case back on track
The Supreme Court has found no merit in the petition of China National Machinery and Equipment Corp. Group (CNMEG) to stop a Makati Court from hearing a petition to void their stake in the $503-m Northrail Project.
CNMEG’s petition stated that Judge Cesar Sta. Maria of Makati Regional Trial Court Branch 145 erred hwen he ordered the petitioner to appear and explain the detail of the Northrail contract since it had “no jurisdiction over the person of herein petitioner and over the subject matter of the said case.” Further, it claimed that allowing the proceedings at the Makati court would “disrespect the sovereignty of the People’s Republic of China.”
CNMEG’s counsels culled Republic Act 8975, which prohibits lower courts from issuing restraining orders and injunction on government infrastructure projects. Moreover, the counsels said that the “Petitioners stand to suffer grave and irreparable injury by being compelled to answer private lawyers’ unjust and baseless claims. Petitioner has already commenced its duties and responsibilities under the Northrail project and invested its precious time, skills, industries and finances for the said project.”
The SC’s ruling upholds a previous decision by the Court of Appeals (CA) last year, wherein they found no merit in CNMEG’s claim that as a state-owned firm of the People’s Republic of China, it enjoys diplomatic immunity.
CA’s decision reads: “[The CNMEG] must request the Foreign Office of a state where it is sued to convey to the court that it is entitled to such a privilege. In this country, the practice is for the foreign entity to first secure an executive endorsement of diplomatic immunity. The bottom line is, (the request) must come from the DFA (Department of Foreign Affairs) which is the proper government agency with administrative competence to perform the task associated with diplomacy and foreign relations.”
Source: Philippine Star May 13, 2009
