A.M. RTJ-23-031 - Pilipinas Shell Petroleum Corp. vs. Omelio

The administrative complaint was filed on October 20, 2009, by Pilipinas Shell Petroleum Corporation (PSPC) against Judge George E. Omelio, charging him with gross ignorance of the law, grave abuse of authority, and violation of the New Code of Judicial Conduct.
The case arose from Civil Case No. 95-45 (Abenon v. Shell Oil Company), where Judge Omelio, presiding over RTC Davao City, Branch 14, issued orders directing the execution and garnishment of US$17,000,000.00 against Shell’s subsidiaries and affiliates, including PSPC.

The Abenon Case originated from a class suit filed by thousands of banana plantation workers exposed to the pesticide DBCP, which caused severe reproductive injuries. Initially filed in the United States, the cases were dismissed for forum non conveniens, with claimants directed to file in their home countries.
In 1996, Filipino claimants filed suit before the RTC in Panabo City, which was later transferred to Branch 4 under Judge Jesus L. Grageda. The defendants entered into a worldwide settlement approved by the RTC Panabo City on December 20, 2002.
Execution of the compromise judgment against Shell and others was moved for in December 2002 and granted in April 2003 due to defendants failing to show compliance.
During hearings, claimants picketed and accused Judge Grageda of corruption, leading to his inhibition and the transfer of the case to RTC Davao City, Branch 14, presided by Judge Omelio.

Judge Omelio held PSPC solidarily liable as an affiliate of Shell and included it in the execution of the compromise agreement.
PSPC contested this, asserting it was not a signatory or affiliate, thus deprived of due process.
PSPC applied for a writ of preliminary injunction from the Court of Appeals (CA), which was granted on October 16, 2009, enjoining the execution of garnishment against Shell and related entities including PSPC.
Judge Omelio issued an order refusing to recognize the CA’s injunction, citing Section 11 of Batas Pambansa Blg. 129 (BP 129), arguing the injunction was unsigned by all CA members and therefore lacked force.
Judge Omelio also issued a warrant of arrest against Banco De Oro (BDO) officials for indirect contempt due to their reluctance to release garnished funds.

PSPC filed the present administrative complaint alleging gross ignorance of the law for disregarding the CA injunction, abuse of authority in issuing a warrant of arrest, and overall conduct violating the Code of Judicial Conduct.
The Judicial Integrity Board (JIB) recommended a fine of Php 40,000.00 for gross ignorance. It found that Judge Omelio erroneously treated a writ of preliminary injunction as a final resolution requiring three votes, despite Rule 5, Section VI of the 2002 CA Internal Rules allowing two justices or even the ponente to act in cases of extreme urgency.
The JIB absorbed charges of grave abuse and violation of the Code into the gross ignorance count, noting his acts of issuing the writ of execution and arrest warrant were consequences of such ignorance.

Gross ignorance of the law regarding the treatment of the CA's writ of preliminary injunction and execution orders against PSPC.
Grave abuse of authority for issuing a warrant of arrest against BDO officials without proper procedural compliance.
Violations of the New Code of Judicial Conduct for manifest partiality and failure to disqualify himself.