Foul court press
Hong Kong-based Cathay Pacific seemed to have enough of the 12-year “bullying” by the courts in the Philippines.
The 70-year-old airline, owned by London-based Swire Group, apparently wanted to go for government-to-government talks to end its legal troubles here.
It means the incoming Duterte administration may have to get the heat from both the Hong Kong and the British governments.
A Biz Buzz item on May 23 exposed the harassment of Cathay Pacific by its own cargo handling contractor, Paircargo. But not with just a little help from the Pasay RTC of course!
In the past 12 years, the courts issued various orders to force the airline multi-billion-peso cargo handling business to Paircargo.
The airline cried foul in this court pressure fully applied on its decision as a private company over its own contract using its own money and reputation.
Word went around that the issue had affected the operations of Cathay Pacific in Manila, to the point that its country manager, Alan Lui, had asked the head office for a transfer.
Despite its 50-year operation here, Cathay Pacific refused to carry cargo on its Manila flights, adversely affecting local businesses.
In all those 12 years of court-arranged forced marriage between Cathay Pacific and Paircargo, the latter gained P12.7 billion.
In 2004, Cathay Pacific wanted to reevaluate its cargo handling arrangement with Paircargo. It held a bidding for the lucrative business. Paircargo took part in it. The airline nevertheless chose another bidder, old time airport service firm Miescor.
Paircargo went to the courts (the Pasay RTC), claiming its contract with Cathay Pacific still had three more years left in it, up to 2007.
The courts subsequently issued an injunction, compelling Cathay Pacific to keep Paircargo as its ground-handling contractor, while the case was still being heard.
By the way, the legal counsel of Cathay Pacific in the case was the top Seguion Reyna law firm.
The airline went up to the Court of Appeals, asking it to stop the Pasay RTC from forcing Cathay Pacific to continue doing business with Paircargo. Because the case could just go on and on, the CA ordered the lower courts to resolve the cases muy pronto.
But as was the norm in this country, the case dragged on for several years.
Bear in mind that, in 2004, the original claim of Paircargo was its contract should extend by three years, or until 2007, which the courts in effect agreed to grant.
But when 2007 came, and Cathay Pacific wanted to exercise its right to hire the ground handling company of its choosing, Paircargo modified its original claim.
Paircargo asked the courts to order Cathay Pacific to give it the deal for another 10 years.
The Pasay RTC again granted the wish of Paircargo; Cathay Pacific asked the Supreme Court to step into the case.
Knowing that court cases could drag on for years, the airline decided to go into “mediation” with Paircargo.
In the mediation case, Cathay Pacific in 2012 agreed to keep Paircargo for four more years until 2016.
Last month, with the “endo” for Paircargo in sight, the Hong Kong office of Cathay Pacific held a bidding for the new contract. Paircargo joined but, again, lost to Miescor.
Again, Paircargo went to Pasay RTC asking it to stop Cathay Pacific from awarding the new contract to Miescor once again. It claimed it was not a fair bidding.
In answer to the new claim of Paircargo, Cathay Pacific insisted the whole affair was already settled in the mediation, and the courts already dismissed with finality the previous cases that Paircargo filed.
The Pasay RTC again entertained the new claims of Paircargo, saying it would have to hear the new case, thus issuing another TRO against Cathay Pacific.
In the meantime, the airline already suspended its cargo operations in Manila.
Based on records, Cathay Pacific accounted for more than 30 percent of the airline cargo business in Manila.
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And so an entire nation is now worried sick over the drug menace—what with those five deaths in the Closeup toothpaste concert last week, reportedly caused by this so-called “ecstasy.”
Incoming President Duterte Harley is reportedly seething mad over the incident, threatening a massive reshuffle of the entire police force over it. Fine.
But what does the business sector do about the problem? There is an organization of business people called Dare Philippines, standing for “drug abuse resistance education,” solely funded by the private sector.
Its president is veteran banker Antonio Abacan, who also serves as adviser to more than 30 companies in the group of taipan George Ty, including Metrobank.
Recently, Abacan signed an MOA with the PNP for Dare Philippines to support a strategy of the police in its fight against illegal drugs—the “demand reduction strategy.”
Dare Philippines would conduct training for PNP officers to become mentors in the program to teach the youth—even at the grade school levels—how to keep away from drugs.
Elementary school pupils get stickers and pins as recognition for their completion of the Dare Philippines lessons.
Dare is an international organization active the United States, Japan and South Korea. In the Philippines, it uses the training module implemented by the LA police.
Here is the problem of the local Dare: It has only 21 active volunteers doing all the rounds of all schools in the entire country.
