G.R. No. 189102 - Chiquita Brands, Inc. vs. Omelio

On August 31, 1993, thousands of banana plantation workers from 14 countries sued 11 multinational corporations in the US for exposure to the pesticide DBCP, alleging serious reproductive injuries; US courts dismissed the cases on forum non conveniens.
On May 3, 1996, 1,843 Filipino claimants filed Civil Case No. 95-45 before the Regional Trial Court (RTC) of Panabo City, Davao del Norte, against Chiquita Brands, Inc., Chiquita Brands International, Inc., Dow Chemical Company, Occidental Chemical Corporation, Shell Oil Company, Del Monte Fresh Produce, N.A., and Del Monte Tropical Fruit Co.

The parties entered a global “Compromise Settlement, Indemnity, and Hold Harmless Agreement” in the US, which the RTC-Panabo approved by judgment on compromise dated December 20, 2002, dismissing the case as compliant with law and policy.
Key terms:

Settlement sums were to be deposited into an escrow account within ten business days, administered by a mediator, M.A. “Mickey” Mills.
After individual releases by Plaintiffs, the mediator would distribute client checks via Plaintiffs’ counsel; interest would cover mediator fees and costs, with any remainder reverting to the payor after one year.
The agreement was governed by Texas law and bound Plaintiffs, Defendants, and their subsidiaries, affiliates, controlled entities, successors, and assigns.

Claimants moved for execution; the RTC issued a writ of execution on April 23, 2003 commanding direct payment of settlement amounts per claimant and corporate defendant. Defendants opposed, arguing compliance by deposit in escrow.
Defendants moved to quash the writ and to authenticate release documents in the US; the RTC granted reception of evidence at the Philippine Consulate in San Francisco (Aug–Sep 2003). Judge Jesus L. Grageda was later administratively suspended for conducting unauthorized foreign proceedings.

Due to security concerns and hostility, Judge Grageda inhibited; the case was transferred to RTC-Davao City, Branch 14, under Judge George E. Omelio.
Judge Omelio denied partial reconsideration of the 2006 Omnibus Order (July 10, 2009), amended the writ to include defendants’ subsidiaries and affiliates under Clause 25, and imposed solidary liability; issued an Amended Writ on July 31, 2009 and an Alias Writ on August 12, 2009.
Chiquita Brands filed a Rule 65 petition for certiorari before the Supreme Court on August 26, 2009, assailing all execution orders as grave abuse of discretion; the SC issued a temporary restraining order on December 16, 2009.

Whether the case falls under exceptions to the doctrine on hierarchy of courts, justifying direct SC relief.
Whether the RTCs committed grave abuse of discretion in issuing the challenged writ of execution and related orders.
Whether Judge George E. Omelio should inhibit himself from hearing Civil Case No. 95-45.