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Tuesday, November 27, 2007

 

EXCLUSIVE

Justice Focus of Ilusorio Complaint

By Jomar Canlas, Reporter

AN associate justice of the Court of Appeals faces an administrative complaint that was filed against him by a member of the wealthy Ilusorio family.

Vicente Roxas was alleged to have shown “obvious undue interest in deciding” the controversial Philippine Communications Satellite Corp. (Philcomsat) case despite the withdrawal of the Ilusorio family and the other party to the suit.

The complaint alleging “gross ignorance of the law” was lodged before the Office of the Court Administrator of the Supreme Court by Erlinda Bildner-Ilusorio. She called for an investigation of Roxas’ decision.

Ilusorio said she is the incumbent president of Philcomsat, which is 100-percent owned by Philippine Overseas Telecommunications Corp. (POTC). Philcomsat in turn owns 81 percent of Phil­comsat Holdings Corp. (PHC).

No annual stockholders’ meeting was held by Philcomsat Holdings from 2000 to 2003 and from 2005 to the present. Thus, its directors and officers, among them Manuel Nieto Jr., retained their posts in a holdover capacity.

On May 16, 2005, Jose Ma. Ozamiz, a minority stockholder of Philcomsat Holdings, requested the Securities and Exchange Commission (SEC) to call an annual stockholder’s meeting. The commission granted the request.

Nieto’s supposed lawyer, Alma Kristina Alloba, filed a petition for certiorari seeking a temporary restraining order and writ of preliminary injunction on April 11, 2006, before the Court of Appeals. The case was raffled off to Roxas.

Nieto and the Africa-Bildner group had set aside their differences and entered into a memorandum of understanding. On July 1, 2006, a manifestation and joint petition requesting the SEC to help settle the controversy surrounding Philcomsat Holdings were filed. The motions called for immediate holding of an annual stockholders’ meeting.

The memorandum, however, did not materialize when Roxas issued a temporary restraining order on July 5, 2006, and a writ of preliminary injunction on August 16, 2006.

Nieto, who is in his 80s, allegedly realized that he was represented by a lawyer who was a stranger to him and requested a new legal counsel. Thus, Alloba was sacked and replaced by Ma­nuel Lazaro. In order to carry out the call of the memorandum for the stockholders’ meeting, Lazaro filed a motion to withdraw.

Roxas denied the motion to withdraw and even granted the petition for certiorari. The SEC orders were annulled. The commission was then ordered to cease and desist from exercising its regulatory powers.

Bildner-Ilusorio also alleged that Roxas committed gross ignorance of the law in deciding the instant case despite the withdrawal made by Nieto. Her adversary reiterated that he had been misrepresented by Alloba.

She argued that Roxas “brushed aside and refused to acknowledge the fact that the motion to withdraw was prompted by the compromise agreement between the parties.” Hence, “there was nothing more to resolve, decide or adjudicate except to grant petitioner’s motion to withdraw petition.”

In his comment and explanation to the Office of the Court Administrator, Roxas said the issue involved is a question of jurisdiction. He asserted that contrary to the allegations of the complainant, jurisdiction cannot be the subject of compromise and the appellate court has no discretion over jurisdiction, the same being conferred by law. “Jurisdiction may not be compromised by complainant Bildner-Ilusorio or by the families controlling PHC.”

Roxas maintained that he extensively dealt with and resolved the motion to withdraw by the petitioner in the decision itself. He also argued that Ilusorio had no personality to intervene because, in a petition for certiorari, no private rights are involved since the only issue involved is jurisdiction. Hence, if Ilusorio disagrees with his ruling, her remedy should have been a petition for review with the Supreme Court, not an administrative complaint against him.

He said his decision was collegial and added that he was wondering why he was being singled out.

   

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