Shell loses $1.6-M damage suit vs LPG firm

MANILA, Philippines - Pilipinas Shell Petroleum Corp. has lost its bid in the Court of Appeals (CA) to collect over $1.6 million in damages from a local liquefied petroleum gas (LPG) firm.

In a seven-page resolution, the CA’s Sixth Division junked for lack of merit Shell’s appeal of its ruling last June, which upheld the dismissal of its damage suit against Nation Petroleum Corp. (NPC) by the Makati Regional Trial Court Branch 148 in June 2007.

In 2001, Shell signed the deal with the Renato Ang-owned NPC for storage in its facility of a total of 71,791,860 kilos in bulk LPG. The NPC allegedly did not return 4,309,611 kilos from the original shipment, prompting Shell to file the $1,620,801 damage suit. 

The case stemmed from Shell’s allegations that the NPC violated their Throughout and Bulk Loading Agreement or TBLA in 2001 when it failed to return 4,309,611 kilos in bulk LPG from its storage facility.

“There is... no basis for petitioner’s allegation that public respondent completely disregarded the (TBLA),” read the ruling penned by Associate Justice Rosmari Carandang.

The CA said Shell has not shown that the judge committed a grave abuse of discretion or an error in the exercise of jurisdiction. “Hence, we cannot sustain petitioner’s motion for reconsideration,” the ruling said.