Case Digest (G.R. No. L-22481)
Facts:
Republic of the Philippines v. Philippine Air Lines, Inc., G.R. No. L-22481, June 30, 1969, Supreme Court En Banc, Fernando, J., writing for the Court.The Republic of the Philippines (plaintiff-appellee) filed a complaint on June 23, 1961 against Philippine Air Lines, Inc. (defendant-appellant) for recovery of P1,357,686.14 as unpaid take-off, terminal, landing, parking fees and rents for use of government air navigation facilities during September 2, 1947 to June 30, 1950 (Civil Case No. 47365, Court of First Instance of Manila). Philippine Air Lines answered alleging release by a prior compromise with the National Airports Corporation, exemption under its franchise, and that the rates were unreasonable; it also asserted a counterclaim for expenses it had borne for certain facilities.
On December 23, 1963 the Court of First Instance of Manila rendered judgment against Philippine Air Lines, directing payment of P1,357,686.14 with legal interest from August 10, 1960. Philippine Air Lines appealed the decision to the Supreme Court, which docketed the appeal as G.R. No. L-22481.
While the appeal was pending, the parties negotiated a settlement and executed a Compromise Agreement on June 9, 1969. The parties filed a Joint Petition for Judgment in Accordance with Agreement on June 14, 1969, asking the Supreme Court to approve the compromise, to declare that the compromise novated and superseded the CFI judgment, to dismiss the complaint and counterclaim without costs, and to order compliance with the agreement. The Compromise Agreement provided for immediate payment of P257,686.14 upon approval and eleven monthly installments of P100,000 each for the balance of P1,100,000; it expressly stated that the agreement would novate and supersede the CFI judgment and that upon any installment default the judgment approving the compromise woul...(Subscriber-Only)
Issues:
- May the Supreme Court approve a compromise agreement submitted by the parties while an appeal is pending and thereby supersede the judgment of the trial court?
- Are the terms of the Compromise Agreement — including novation of the judgment, the payment schedule, and the clause making the judgment approving the compromise immediately executory upon defa...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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