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CASE Aala vs Globe Telecom 1 PhilComSat vs Globe Telecom

GR CV 78049

Date Nov 2 2005 GR 147324 May 25 2004

FACTS

ISSUE

RULLING

On May 7 1991, Globe and Philcomsat entered into an agreement wherein Globe shall rent the facilities of Philcomsat for a term of Five years and Philcomsat is obligated to establish, operate and provide an IBS Standard B earth station (earth station) within Cubi Point for the exclusive use of the US Military in Subic Naval Base. However, at the end of 1991 the RP-US agreement was terminated causing the withdrawal of the US military forces in Subic Naval Base. Subsequently, Globe notified Philcomsat that it will discontinue the use of earth station in view of the withdrawal of the US military in Subic. Philcomsat disagreed.

Whether or not Globe is liable for rent for the remaining years after the discontinuance of the operations.

In order that Globe may be exempt from non-compliance with its obligation to pay rentals under Section 8, the concurrence of the following elements must be established: (1) the event must be independent of the human will; (2) the occurrence must render it impossible for the debtor to fulfill the obligation in a normal manner; and (3) the obligor must be free of participation in, or aggravation of, the injury to the creditor. Philcomsat and Globe had no control over the non-renewal of the term of the RP-US Military Bases Agreement when the same expired in 1991, because the prerogative to ratify the treaty extending the life thereof belonged to the Senate.The aforementioned events made impossible the continuation of the Agreement until the end of its five-year term without fault on the part of either party. The Court of Appeals was thus correct in ruling that the happening of such fortuitous events rendered Globe exempt from payment of rentals for the remainder of the term of the Agreement.

2 GMCR et. Al vs Bell Telecom Phils. GR 126496 April 30 1997 Bell Telecommunication Philippines, Inc. (hereafter, Whether or not NTC is a We hereby declare that the NTC is a collegial body requiring a BellTel) filed with the NTC an Application for a Certificate collegial body. majority vote out of the three members of the commission in of Public Convenience and Necessity to Procure, Install, order to validly decide a case or any incident therein. Operate and Maintain Nationwide Integrated Corollarily, the vote alone of the chairman of the commission, Telecommunications Services and to Charge Rates as in this case, the vote of Commissioner Kintanar, absent the Therefor and with Further Request for the Issuance of required concurring vote coming from the rest of the Provisional Authority. Agreeing with the findings and membership of the commission to at least arrive at a majority recommendations of the CCAD, NTC Deputy decision, is not sufficient to legally render an NTC order, Commissioners Fidelo Dumlao and Consuelo Perez resolution or decision. adopted the same and expressly signified their approval thereto, however Commssioner Kintanar was not yet secured. Kintanar said the provisional authority could not be validated because only his approval counts because NTC is a non-collegial body.

3 PLDT vs NTC et. Al. GR 88404 Oct 18 1990 TCI filed an application with public respondent NTC (docketed as NTC Case No. 87-89) for the issuance of a Certificate of Public Convenience and Necessity (CPCN) to construct, install, establish, operate and maintain a Cellular Mobile Telephone System and an Alpha Numeric Paging System in Metro Manila and in the Southern Luzon regions, with a prayer for provisional authority to operate Phase A of its proposal within Metro Manila. NTC ordered PLDT and ETCI to enter into an interconnection agreement. PLDT opposed arguing that it violates its right to due process. Whether or not NTC has the power to order telecommunication companies to enter into an interconnection agreement Yes, The interconnection which has been required of PLDT is a form of "intervention" with property rights dictated by "the objective of government to promote the rapid expansion of telecommunications services in all areas of the Philippines, ... to maximize the use of telecommunications facilities available, ... in recognition of the vital role of communications in nation building ... and to ensure that all users of the public telecommunications service have access to all other users of the service wherever they may be within the Philippines at an acceptable standard of service and at reasonable cost" (DOTC Circular No. 90-248). Undoubtedly, the encompassing objective is the common good. The NTC, as the regulatory agency of the State, merely exercised its delegated authority to regulate the use of telecommunications networks when it decreed interconnection.

4 Republic vs Meralco GR 141314 Nov 15 2002 MERALCO argues that deduction of all kinds of taxes, including income tax, from the gross revenues of a public utility is firmly entrenched in American jurisprudence. It contends that the Public Service Act (Commonwealth Act No. 146) was patterned after Act 2306 of the Philippine Commission, which, in turn, was borrowed from American state public utility laws such as the New Jersey Public Utility Act. Whether or not the American Jurisprudence Could be applied in this case at bar. We are not persuaded. American decisions and authorities are not per se controlling in this jurisdiction. At best, they are persuasive for no court holds a patent on correct decisions. Our laws must be construed in accordance with the intention of our own lawmakers and such intent may be deduced from the language of each law and the context of other local legislation related thereto. More importantly, they must be construed to serve our own public interest which is the be-all and the end-all of all our laws. And it need not be stressed that our public interest is distinct and different from others.

5 Smart Communication vs NTC GR 151908 Aug 12 2003 Isla Communications Co., Inc. and Pilipino Telephone Whether or not NTC has Corporation filed against the National the power to regulate Telecommunications Commission, Commissioner Joseph prepaid call cards. A. Santiago, Deputy Commissioner Aurelio M. Umali and Deputy Commissioner Nestor C. Dacanay, an action for declaration of nullity of NTC Memorandum Circular. Petitioners Islacom and Piltel alleged, inter alia, that the NTC has no jurisdiction to regulate the sale of consumer goods such as the prepaid call cards since such jurisdiction belongs to the Department of Trade and Industry under the Consumer Act of the Philippines; that the Billing Circular is oppressive, confiscatory and violative of the constitutional prohibition against deprivation of property The appellate court modified the ruling of the Central Whether or not RCPI is Board of Assessment Appeals (CBAA') and exempted exempt from paying real petitioner Radio Communications of the Philippines, Inc. property tax. (RCPI') from paying real property tax assessed on its machinery and radio equipment mounted on its relay station tower as accessories. However, the appellate court held RCPI liable for real property tax on its radio station building, machinery shed, and relay station tower. the issuance by the NTC of Memorandum Circular No. 13-62000 and its Memorandum dated October 6, 2000 was pursuant to its quasi-legislative or rule-making power. We stress at the outset that the lower court had jurisdiction to consider the constitutionality of Section 187, this authority being embraced in the general definition of the judicial power to determine what are the valid and binding laws by the criterion of their conformity to the fundamental law.

6 RCPI vs Provincial Assossor of South Cotabato GR 144486 April 13 2005 The 'in lieu of all taxes' clause in Section 14 of RA 2036, as amended by RA 4054, cannot exempt RCPI from the real estate tax because the same Section 14 expressly states that RCPI 'shall pay the same taxes x x x on real estate, buildings x x x. The 'in lieu of all taxes' clause in the third sentence of Section 14 cannot negate the first sentence of the same Section 14, which imposes the real estate tax on RCPI. The Court must give effect to both provisions of the same Section 14. This means that the real estate tax is an exception to the 'in lieu of all taxes' clause.

Globe Telecom vs NTC

GR 143964 July 26 2004

NTC issued the Order now subject of the present petition. In the Order, after noting that both Smart and Globe were "equally blameworthy" for their lack of cooperation in the submission of the documentation required for interconnection and for having "unduly maneuvered the situation into the present impasse,"22 NTC held that since SMS falls squarely within the definition of "value-added service" or "enhanced-service" given in NTC Memorandum Circular No. 8-9-95 (MC No. 8-9-95) the implementation of SMS interconnection is mandatory pursuant to Executive Order (E.O.).

In summary: (i) there is no legal basis under the PTA or the memorandum circulars promulgated by the NTC to denominate SMS as VAS, and any subsequent determination by the NTC on whether SMS is VAS should be made with proper regard for due process and in conformity with the PTA; (ii) the assailed Order violates due process for failure to sufficiently explain the reason for the decision rendered, for being unsupported by substantial evidence, and for imputing violation to, and issuing a corresponding fine on, Globe despite the absence of due notice and hearing which would have afforded Globe the right to present evidence on its behalf. the Order effectively discriminatory and arbitrary as it is, was issued with grave abuse of discretion and it must be set aside. NTC may not legally require Globe to secure its approval for Globe to continue providing SMS. This does not imply though that NTC lacks authority to regulate SMS or to classify it as VAS. However, the move should be implemented properly, through unequivocal regulations applicable to all entities that are similarly situated, and in an even-handed manner.

8 Spouses Rodolfo Centeno and Nena Centeno vs Globe Telecom et. Al CA-GR CV No. 85254 That they are residents of Calaocan, Alicia, Isabela; that Mobile communication Group, Globe Telecommunications, Incorporated, through Magna Restu, now Asiacom, defendants, filed with the defendant Municipality of Alicia, Isabela, an Application for the Construction and installation of a Globe Tower Antenna at Calaocan, Alicia, Isabela; that the plaintiffs filed a petition objecting the approval by defendant Municipality of Alicia, of the Application aforementioned on the ground that it is hazardous to their health and the health of other residents similarly situated The requirement of prior exhaustion of administrative remedies is not absolute, there being instances when it may be dispensed with and judicial action may be validly resorted to immediately From among these exceptions, appellants claim principally the denial of due process arising from alleged want of notice to them of the proceedings before the Sangguniang Bayan resulting to violation of their constitutional right for a safe, healthy and convenient social environment. In administrative proceedings moreover, technical rules of procedure and evidence are not strictly applied as administrative process cannot be fully equated with due process in its strict judicial sense. Indeed, deprivation of due process cannot be successfully invoked where a party was given the chance to be heard as in the instant case.

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