Case Digest (G.R. No. 216600)
Facts:
In Federal Express Corporation and Rhicke S. Jennings v. Airfreight 2100, Inc. and Alberto D. Lina (G.R. No. 216600, November 21, 2016), Federal Express Corporation (FedEx), a foreign freight forwarder, and its managing director in the Philippines and Indonesia, Rhicke S. Jennings, sought a confidentiality/protective order after respondent Airfreight 2100, Inc. (Air21) and its chairman, Alberto D. Lina, filed a complaint for grave slander against Jennings based on alleged statements made during arbitration. FedEx lost its International Freight Forwarder’s license and entered into Global Service Program (GSP) contracts with Air21 to handle local delivery and pick-up. Disputes over remittances, taxes, interest and other charges led FedEx to initiate arbitration before the Philippine Dispute Resolution Center, Inc. (PDRCI) in 2011. Jennings, along with other FedEx officers, gave sworn statements and testimony, wherein he alleged that two companies opposing FedEx’s license were proxCase Digest (G.R. No. 216600)
Facts:
- Parties
- Federal Express Corporation (FedEx) and Rhicke S. Jennings
- FedEx – foreign corporation, international air carriage and freight forwarding; lost its IFF license in the Philippines.
- Jennings – Managing Director for the Philippines and Indonesia.
- Airfreight 2100, Inc. (Air21) and Alberto D. Lina
- Air21 – domestic freight forwarder, GSP contractor for FedEx.
- Lina – Chairman of Air21’s Board of Directors.
- GSP Arrangement and Dispute
- Global Service Program (GSP) contracts
- Air21 to pick up FedEx imports at airport and deliver locally.
- Air21 to deliver Philippine exports to airport for FedEx shipment abroad.
- Air21 guaranteed customs clearance under Philippine law.
- Commercial disagreements
- Remittance, VAT, fuel charges, trucking costs, interests, penalties.
- Arbitration Proceedings
- Submission to arbitration (May 11, 2011) before PDRC; tribunal constituted October 3, 2011.
- Witness statements and testimony
- Jennings, Holmes, Ross executed statements; discussed suspension of FedEx’s IFF license.
- Allegations that Merit International and Ace Logistics were proxies of Air21 employees/Lina group.
- Jennings identified as source; had no written proof.
- Criminal Complaint and Confidentiality Petition
- Lina filed grave slander complaint quoting portions of witness statements and TSN of April 25, 2013 hearing.
- FedEx and Jennings petitioned RTC for confidentiality/protective order; granted temporary protection, petition denied May 7, 2014.
- CA affirmed RTC order on January 20, 2015, holding statements “not related” to arbitration subject.
Issues:
- Primary Issue
- Do Jennings’ oral and written statements in the arbitration constitute “confidential information” under R.A. 9285 and Special ADR Rules?
- Should a protective order enjoin use of those statements in a criminal complaint?
- Subsidiary Issues
- Proper application of Sections 3(h) and 23 of the ADR Act.
- Applicability of Rules 10.1, 10.5 and 10.8 of the Special ADR Rules.
- Scope and test for “relative to the subject of arbitration.”
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)