Big 3 oil firms defend no-show in court

MANILA, Philippines - The country’s Big 3 oil firms defended yesterday their decision not to appear in court to answer allegations of overpricing their products by P8 per liter.

Judge Silvino Pampilo of the Regional Trial Court of Manila has ordered the oil companies to show cause why they should not be cited for contempt for boycotting the hearing yesterday morning in the case filed by Social Justice Society.

Chevron, Petron Corp. and Pilipinas Shell, however, said they have already filed their respective manifestations for the case.

The lawyers of the Big 3 oil firms said they had earlier filed separate manifestations reiterating that the court has no jurisdiction over SJS’s motion for a temporary restraining order (TRO) preventing the three oil companies from “further increasing the pump prices of their petroleum products.”

They explained that the manifestations and motions were filed a day prior to the hearing and should have been noted by Judge Pampilo. In their manifestations, the oil companies said the case should be suspended until the question of the court’s jurisdiction and the scheduled hearings, including yesterday morning, should be cancelled.

The three oil companies have questioned the jurisdiction of the court since under the oil deregulation law, the exclusive jurisdiction to investigate and determine charges of monopoly, combinations in restraint of trade or cartelization lies in the Department of Energy- Department of Justice (DOE-DOJ) Task Force, and not the regular court.

Petron, Shell and Chevron have questioned before the Supreme Court (SC) and the Court of Appeals (CA) the act of the presiding judge in continuing with the hearings despite the fact that the DOE-DOJ Task Force has already declared that there is no cartelization.

Additionally, the companies assailed SJS’ petition for “declaratory relief” as improper because the same is available only if there is a question of construction or validity arising from a deed, will or contract.

SJS is asking the court to declare whether the oil companies have committed cartelization or monopoly. SJS manifested in the hearing last Sept. 11, 2009 that they are converting their petition for declaratory relief into an ordinary civil action.

The oil companies contended that since the main action of declaratory relief was “converted” into an ordinary action, the proceedings should have been suspended until the proper civil action is initiated. Instead, Judge Pampilo continued with the proceedings, they added.