Title
West Tower Condominium Corp. vs. 1st Philippine Industrial Corp.
Case
G.R. No. 194239
Decision Date
Jun 16, 2015
A fuel leak from FPIC's pipeline caused environmental harm, prompting a Writ of Kalikasan. The Supreme Court ruled FPIC negligent, upheld the writ, and mandated rehabilitation and a trust fund, applying the precautionary principle.

Case Digest (G.R. No. 194239)
Expanded Legal Reasoning Model

Facts:

  • Nature of the Case
    • Petition for issuance of a Writ of Kalikasan and Temporary Environmental Protection Order (TEPO) filed November 15, 2010.
    • Petitioners: West Tower Condominium Corporation (on behalf of its residents), residents of Barangay Bangkal, and several NGOs.
    • Respondents: First Philippine Industrial Corporation (FPIC), First Gen Corporation (FGC), and their directors and officers.
  • Pipeline Operation and Leak
    • FPIC operates two pipelines since 1969:
      • White Oil Pipeline (WOPL), 117 km (Batangas–Pandacan), carrying diesel, gasoline, jet fuel, kerosene.
      • Black Oil Pipeline (BOPL), 105 km (Batangas–Sucat), carrying bunker fuel.
    • May 2010: residents of West Tower Condominium detected gas odor; July 10, 2010: leak discovered in basement sump.
    • Leak escalated from 2 drums/day to 15–20 drums/day; condominium power shut off; residents evacuated July 23, 2010.
    • October 28, 2010: UP-NIGS confirmed WOPL leak 86 m from West Tower; FPIC admitted the leak October 29, 2010.
  • Trial Court Proceedings
    • November 19, 2010: Court issued writ of kalikasan with TEPO directing:
      • Cease WOPL operations.
      • Check structural integrity of entire 117-km span.
      • Report within 60 days.
    • FPIC and FGC filed verified returns denying liability and disputing petitioners’ capacity.
    • FPIC submitted pipeline integrity and preventive maintenance reports (pressure tests, borehole tests, cathodic protection, pig runs, patrols, coordination with DPWH/MMDA, security signs, isolation valves).
    • April 15, 2011: ocular inspection found no additional leaks.
    • May 31, 2011: Court clarified TEPO covers only WOPL; BOPL may resume operations.
    • Petitioners filed omnibus motions challenging BOPL reopening and environmental remediation plan.
    • FPIC sought leave to undertake a “Bangkal realignment” to replace the leaked segment; petitioners opposed.
  • Court of Appeals Proceedings
    • Case remanded to CA; hearings held with amici curiae (UP-NIGS, UP-ICE, Dr. De Jesus, Engr. Rabino).
    • December 21, 2012: CA Report and Recommendation:
      • NGOs with juridical personality may join as petitioners.
      • FPIC to secure DOE certification of WOPL safety for commercial operation (adopting leak-detection systems; replacing patched segments) within 60 days or face permanent TEPO.
      • Denied creation of special trust fund.
      • FGC not solidarily liable; individual directors/officers not liable in this proceeding.
  • Supreme Court Proceedings
    • Petitioner’s motions for partial reconsideration; FPIC submitted DOE certification (Jan 22, 2013); petitioners contested its sufficiency.
    • July 30, 2013: SC adopted CA recommendations, directing DOE to consult DOST on leak detection and replacement of sleeves/patches.
    • October 25, 2013: DOE issued certification declaring WOPL safe subject to conditions (monitoring, boreholes, pressure tests, cathodic protection, pig runs).
    • August 5, 2014: DOE letter prescribing timetable and detailed preparatory activities for WOPL test run and actual test run.
    • June 16, 2015: SC Decision denying partial reconsideration, partly granting other motions, adopting CA Report with modifications:
      • DOE to oversee preparatory activities (boreholes, pig runs, inspections, calibration).
      • Actual test run and DOE determination on reopening or closure.
      • Post-reopening PIMS compliance by FPIC (daily patrols, borehole monitoring, monthly reports to DOE, DOST, DENR, DPWH, petitioners, SC).
      • FPIC to complete environmental remediation of Barangay Bangkal under DENR supervision.
      • Inter-Agency Committee on Environmental Health to evaluate remediation plan.
      • Prayer for special trust fund denied; liability of directors/officers to be determined in pending civil/criminal cases.

Issues:

  • Whether West Tower Condominium Corporation, Barangay Bangkal residents, and the intervening NGOs have legal capacity and are real parties-in-interest.
  • Whether the TEPO should be converted into a Permanent Environmental Protection Order (PEPO) or lifted in light of the DOE certification of WOPL safety.
  • Whether a special trust fund should be created for future contingencies.
  • Whether FGC and the individual directors/officers of FPIC and FGC may be held liable under the environmental protection order.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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