NATIONAL POWER C CORPORATION, PETITIONER V. OSE MARIE ALONZO-LEGASTO AS PRESIDING JUDGE, RTC QC BR 99 HON. R OSE 99 ET AL1 GR no.148318 November 22, 2004 Tinga, J. SV: NPC and FCC !n"ered in"o a #ro$e%" &or e'%ava"ion. FCC needed "o do b(a)"ing *or+) "o %on"ine *i"- "-e #ro$e%". NPC agreed "-a" i" *i(( i))e an e'"ra *or+ order &or "-e b(a)"ing *or+) and )b)een"(/ #a/ FCC b" "-i) did no" -a##en. T-e "*o en"ered in"o a %om#romi)e agreemen" and agreed "-a" NPC *i(( #a/ "-e ndi)#"ed n#aid %(aim) and "-a" "-e/ *i(( )bmi" "-e agreemen" "o an arbi"ra"ion board "o )e""(e "-e amon" "o be #aid. &"er "-e arbi"ra"ion i))ed i") r(ing, NPC e)"ioned "-e a*ard *-i%- in%(ded "-e b(a)"ing *or+) no e'"ra *or+ order i))ed &or i" a((eged(/ de "o #romi))or/ e)"o##e(. SC: no ba)i) &or a##(/ing #romi))or/ e)"o##e(. T-e #a/men" *a) %ondi"iona( on "-e i))an%e o& "-e e'"ra *or+ order. T-e a%") o& "-e o&&i%ia() o& NPC e'%eeded "-eir a"-ori"/ and )-o(d no" bind NPC n(e)) "-e (a""er ra"i&ie) "-e)e a%"). n&or"na"e(/, n&or"na"e(/, NPC did *-en i" )igned "-e %om#romi)e agreemen". en%e, FCC *a) en"i"(ed &or #a/men" &or "-e b(a)"ing *or+). 1.
NPC and Fir)" ni"ed ni"ed Con)"r%" Con)"r%"or) or) Cor#ora"i Cor#ora"ion on FCC en"ered en"ered in"o a %on)"r%" %on)"r%"ion ion o& #o*er &a%i(i" &a%i(i"ie), ie), one in Ca*a/an area and "-e o"-er in a%on, Sor)ogon. T-e #ri%e &or grading e'%ava"ion *a) P56.00 #er %bi% me"er.
2.
&"er &"er %ommen%emen" %ommen%emen" o& "-e "-e e'%ava"io e'%ava"ion, n, FCC ree)"ed ree)"ed "-a" "-a" i" be a((o*ed a((o*ed "o b(a)" b(a)" "o "-e de)ign de)ign grade grade o& 47 me"er) above )ea (eve( a) i") do9er) and ri##er) %o(d no (onger e'%ava"e. " a()o ree)"ed "-a" i" be #aid P1346 #er %bi% me"er
3.
NPC, a&"er a&"er %rea"ing %rea"ing a "a)+ &or%e &or%e "o revie* revie* "-e b(a)"ing b(a)"ing *or+), *or+), o&&ered o&&ered "o #a/ P48.05 P48.05 #er %bi% %bi% me"er, me"er, *-i%- FCC a%%e#"ed in a (e""er.
4.
FCC even"a( even"a((/ (/ abandoned abandoned "-e #ro$e% #ro$e%". ". NPC de%ided de%ided "o "a+e over over "-e #ro$e%" #ro$e%" "o )"ave;o& )"ave;o&&& -ge #e%niar/ #e%niar/ and non;mone"ar/ (o))e). FCC, in order "o #reven" "-i) &i(ed an a%"ion &or )#e%i&i% #er&orman%e and damage) *i"- #re(iminar/ #re(iminar/ in$n%"ion and TR< again)" NPC.
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RTC % i))ed i))ed a TR< TR< and (a"er (a"er a *ri" *ri" o& #re(i #re(iminar/ minar/ in$n%"i in$n%"ion. on. a.
6.
1
NPC &i(ed &i(ed a #e"i"ion #e"i"ion &or %er"i %er"iorar orarii be&ore be&ore "-e C. C gran"e gran"ed d #e"i"ion #e"i"ion and )e" )e" a)ide a)ide "-e (o*er (o*er %or"=) order
FCC &i(ed &i(ed be&ore be&ore "-e SC a #e"i"ion #e"i"ion &or revie* revie* a))ai(i a))ai(ing ng "-e de%i)ion de%i)ion o& "-e "-e C b" #ending #ending "-e re)o("i re)o("ion on o& "-e SC, NPC and FCC en"ered in"o a %om#romi)e agreemen". a.
n "-e %om#romi %om#romi)e )e agreeme agreemen", n", NPC )-a(( )-a(( #a/ "-e "-e ndi)#"e ndi)#"ed d n#aid n#aid bi((ing) bi((ing) o& FCC FCC in %onne%"ion *i"- "-e #ro$e%"> "-a" NPC )-a(( -ave "-e rig-" "o #re%eed *i"- "-e *or+) b/ re;bidding i"> #on &ina( re)o("ion o& "-e arbi"ra"ion, "-e #ar"ie) )-a(( m"a((/ "ermina"e "-e %on"ra%" among o"-er)
b.
T-a" T-a" "-e %(ai %(aim) m) *i(( *i(( be )e" )e""(e "(ed d "-rog "-rog- 2 )"age) )"age)
NT
i.
T-e %om#romi)e %om#romi)e agreeme agreemen" n" *a) a##roved a##roved b/ "-e %or" %or" and "-e "-e %a)e *a) "-en "-en re&erred re&erred "o arbi"ra" arbi"ra"ion ion *-ere *-ere i" *a) -e(d "-a" an a*ard o& P118,681,328.28 a) $)" %om#en)a"ion #() 10E "-ereo& &or a""orne/=) a""orne/=) &ee) and e'#en)e) o& (i"iga"ion *a) de. NPC a(read/ #aid 36,0,000 )o "-e/ on(/ o*e FCC P82,131,328.28
8.
FCC &i(ed &i(ed a mo"ion &or &or e'e%"ion e'e%"ion *-i(e *-i(e NPC &i(ed &i(ed a mo"ion "o va%a"e va%a"e a*ard a*ard b/ "-e arbi"ra arbi"ra"ion "ion board. board. Jdge (on9o;?!ga)"o a##roved "-e mo"ion &or e'e%"ion.
7.
NPC NPC *en" *en" "o "o "-e "-e C a(( a((eg egin ing g GD. GD. a.
C: no GD. GD. T-e arbi"ra" arbi"ra"ion ion board board a%"ed a%"ed #r)an" #r)an" "o i") i") #o*er) #o*er) nder nder "-e %om#romi %om#romi)e )e agreemen". T-a" NPC &ai(ed "o #rove b/ eviden%e "-a" Ar. Si)on *a) bia)ed. T-a" a("-og- "-e b(a)"ing *a) no" #ar" o& "-e ni" #ri%e &or "-e #ro$e%" and "-a" "-ere *a) no #er&e%"ed %on"ra%" &or i", FCC re(ied on "-e re#re)en"a"ion o& NPC=) o&&i%ia() "-a" "-e e'"ra *or+ order )-o(d be )bmi""ed "o i") board o& dire%"or) &or a##rova( and "-a" "-e b(a)"ing *or+) *o(d be #aid. C r(ed "-a" FCC i) en"i"(ed "o $)" %om#en)a"ion on grond) o& ei"/ and pro!""or# $"%opp$&
10. NPC *en" # "o "-e SC *i"- ba)i%a((/ "-e )ame argmen") argmen") be&ore "-e C. one o& "-e)e argmen") i) i) "-a" "-e %(aim &or b(a)"ing *or+) *a) no" a##roved b/ a"-ori9ed o&&i%ia(), "-a" "-e a##rova( o& e'"ra *or+ b/ a"-ori9ed o&&i%ia() i) reired &or an e'"ra *or+ order i) i))ed.
ISSUE' I" (UCC $)%!%&$* %o %+$ p#$)% or %+$ $%r /or0 *o)$ o) %+$ pro$2%3
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"-ere *a) a di)%))ion on arbi"ra"ion and va%a"ing an a*ard. n "-e end SC -e(d "-a" NPC=) on(/ grond *a) "-e a((eged bia) o& Ar. Si)on, *-i%- i" &ai(ed "o #rove b/ eviden%e a" "-e (o*er %or". en%e "-e/ %anno" de#ar" &rom "-e r(ing #-o(ding "-e a*ard
"-e %or" (oo+ed a" Se%. 7 o& PD 174 Pre)%ribing Po(i%ie), Gide(ine), Gide(ine), R(e) and Reg(a"ion) &or Governmen" n&ra)"r%"re Con"ra%"), Con"ra%"), *-i%- #rovide) "-a" a %-ange order or e'"ra *or+ order ma/ be i))ed on(/ &or *or+) ne%e))ar/ &or "-e %om#(e"ion o& "-e #ro$e%" and, "-ere&ore, )-a(( be *i"-in "-e genera( )%o#e o& "-e %on"ra%" a) bidded and a*arded. (( %-ange order) and e'"ra *or+ order) )-a(( be )b$e%" "o "-e a##rova( o& "-e Aini)"er o& Pb(i% @or+), Tran)#or"a"ion and Commni%a"ion), "-e Aini)"er o& Pb(i% ig-*a/), or "-e Aini)"er o& !nerg/, a) "-e %a)e ma/ be. T-e SC a()o %on)idered "-e &a%") *-i%- *ere )ed a) ba)e) &or #romi))or/ e)"o##e( and -e(d "-a" a("-og- i" a##eared "-a" NPC made #romi)e) "-a" an e'"ra *or+ order *i(( be i))ed in %onne%"ion *i"- "-e b(a)"ing #ro$e%"), none %ame "o e'i)"en%e. o
Promi))or/ e)"o##e( Hma/ ari)e &rom "-e ma+ing o& a #romi)e, even "-og- /!%+o4% 2o)"!*$r%!o), 2o)"!*$r%!o), i& i" *a) in"ended "-a" "-e #romi)e )-o(d be re(ied #on and in &a%" i" *a) re(ied #on, and i& a re&)a( "o en&or%e i" *o(d be vir"a((/ "o )an%"ion "-e #er#e"ra"ion o& &rad or *o(d re)(" in o"-er in$)"i%e.I Promi))or/ e)"o##e( #re)##o)e) "-e e'i)"en%e o& a #romi)e on "-e #ar" o& one again)" *-om e)"o##e( i) %(aimed. T-e #romi)e m)" be #(ain and
nambigo) and )&&i%ien"(/ )#e%i&i% )o "-a" "-e %or" %an nder)"and "-e ob(iga"ion a))med and en&or%e "-e #romi)e a%%ording "o i") "erm). o
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T-ere *a) no ba)i) &or #romi))or/ e)"o##e( )in%e bo"- #ar"ie) +ne* "-a" "-e #a/men" &or "-e b(a)"ing *or+) *a) de#enden" on "-e i))an%e o& an e'"ra *or+ order. T-e #romi)e o& NPC "o #a/ /" 2o)*!%!o)& #on 2o)*!%!o)& #on "-e i))an%e o& "-e *or+ order and FCC +ne* o& "-i) &a%". Aendo9a v. C: a %a)e o& a%"ion &or #romi))or/ e)"o##e( doe) no" (ie *-ere an a((eged ora( #romi)e *a) %ondi"iona(, )o "-a" re(ian%e #on i" *a) no" rea)onab(e. " doe) no" o#era"e "o %rea"e (iabi(i"/ *-ere i" doe) no" o"-er*i)e e'i)".
NPC=) argmen" "-a" i" i) no" bond b/ "-e a%") o& i") o&&i%ia() i) %orre%". " i) a %or#ora"e en"i"/ #er&orming #ro#rie"ar/ &n%"ion) and no" a mere agen%/ o& "-e governmen". T-e o&&i%ia() e'%eeded "-e )%o#e o& "-eir a"-ori"/ *-en "-e/ a"-ori9ed FCC "o %ommen%e b(a)"ing *i"-o" an e'"ra *or+ order. T-eir a%") %anno" bind NPC n(e)) i" -a) r%!!$* )%- a%") or i" i) e)"o##ed &rom di)%(aiming "-em NPC RTF!D T
J)"in enedi%" . Aore"o
