Court of Appeals orders bishops to pay P20-million debt to furniture firm

MANILA, Philippines - The Court of Appeals (CA) has upheld a ruling of a Mandaluyong court ordering the Catholic Bishops Conference of the Philippines (CBCP) to settle its 10-year-old debt to a furniture firm worth some P20 million.

In a 32-page decision released last Friday, the CA’s fourth division junked CBCP’s appeal on a decision of the trial court dated March 3, 2005 favoring Spinbase International Corp. in the case for enforcement of contract and collection of money it filed against the Church organization.

Records show that CBCP owed Spinbase P19,787,644 worth of modular workstations, office tables and chairs it had delivered to the Church group in 2000. The equipment was used by CBCPNet Corp., which once served as the Internet service provider and integrator for the whole Catholic Church, schools and organizations.

CBCP vehemently denied the liability, claiming it is not at all connected with CBCPNet. It also insisted that Spinbase’s accusation was unsubstantiated.

But the CA said it was found that the CBCP created CBCPNet, which was later changed to CBCPWorld.

The appeals court also held that what transpired between Spinbase and CBCPNet was a “perfected contract of sale, which has a force and effect between the herein contracting parties,” citing a certification approved by the Permanent Council of the CBCP authorizing Eman Lim of Twins, Inc. to negotiate and purchase the equipment from Spinbase.

According to the CA, the authority given by the CBCP to Lim gave rise to the perfection of the contract of sale entered into by Twins, Inc., acting on behalf of the Church group, and Spinbase.

The CA also branded as misleading a claim by CBCP that there was no prior demand made upon CBCPWorld for the obligation.

“The record is clear as a daylight that the required demand was made to the CBCP and CBCPWorld. What delves heavily against the CBCP and CBCPWorld was their admission that they have received the demand letter. They (CBCP and CBCPWorld) cannot now seek subterfuge to the alleged absence thereof only to elude liability,” the CA said in the ruling penned by Associate Justice Franchito Diamante.

The CA also ruled that contrary to the CBCP’s claim, the contract of sale “established a definitive agreement or meeting of the minds between the concerned parties as regards the price or term of payment.”

Associate Justices Josefina Guevarra-Salonga and Mariflor Punzalan-Castillo concurred in the ruling.