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Metro

Court issues solution to LTO, IT provider row

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MANILA, Philippines - A court has issued a temporary solution to the legal row between Land Transportation Office’s IT provider Stradcom Corp. and private IT provider firm ETC-IT.

Quezon City Regional Trial Court Branch 95 Judge Henri Jean Paul Inting stopped Stradcom from imposing an increase in the interconnectivity fee that it charges to ETC-IT.

But Inting also directed ETC-IT to maintain its payment of four months deposit estimated at P21 million, and post a bond of more than P5 million to protect Stradcom’s rights pending final judicial ruling on their dispute.

ETC-IT had questioned the legality of Stradcom’s move to increase its fee by P5. ETC-IT claimed this was against the agreement between the two firms.

ETC-IT, Inc., one of the four PETC-IT firms accredited by the LTO and the Department of Transportation and Communications, was ordered by the QCRTC to pay Stradcom Corp., the LTO’s database provider, a four month minimum deposit of their transaction fees, estimated at P21 million.

While it ordered ETC-IT to maintain the minimum deposit with Stradcom, it also issued an injunction against a move by Stradcom to disconnect the PETC-IT firm from the LTO database.

Earlier, ETC-IT, filed a petition for a temporary restraining order or Preliminary Injunction on Stradcom’s cutting off ETC-IT from the LTO-IT system because of alleged breach of contract.

The RTC ordered that before an injunction can be granted, ETC-IT must first comply with its contractual obligations to Stradcom by depositing the four months deposit, among other conditions.

Stradcom Corp., welcomed the ruling, saying it upheld its position that ETC-IT must comply with its contractual obligations to them and maintain the required deposits that it agreed to when it signed a interconnection contract with Stradcom.

Inting cited that the last uncontested status between the two parties was that ETC-IT had put up a deposit for four months and maintain the minimum deposit for the past four years until Stradcom questioned it on Sept. 23, 2010.  – Rainier Allan Ronda, Reinir Padua

BUT INTING

DEPARTMENT OF TRANSPORTATION AND COMMUNICATIONS

ETC

JUDGE HENRI JEAN PAUL INTING

LAND TRANSPORTATION OFFICE

PRELIMINARY INJUNCTION

QUEZON CITY REGIONAL TRIAL COURT BRANCH

RAINIER ALLAN RONDA

REINIR PADUA

STRADCOM

STRADCOM CORP

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