Case Summary (G.R. No. 168834)
Initial Court Rulings
In a decision dated December 11, 2000, the RTC ruled decisively in favor of Respondent Licup. The court awarded Licup various forms of damages including actual damages amounting to PHP 50,000.00 per month for lost earnings, as well as moral and exemplary damages of PHP 500,000.00 each, alongside legal fees. The RTC also declared the SLDA and the Lease Agreement terminated, mandating the parties to observe their rights concerning the termination.
Court of Appeals Review
Dissatisfied with the RTC’s decision, Pilipinas Shell appealed to the Court of Appeals (CA), which affirmed the RTC ruling on November 18, 2004. The CA found that the termination notice issued by Shell did not comply with the contractual obligations stipulated in the SLDA, thereby validating the award of damages to Licup. Subsequent attempts by Shell to reconsider this decision were unsuccessful, with the CA denying the motion on July 11, 2005.
Supreme Court Filing and Compromise Agreement
Frustrated by the CA's ruling, Shell escalated the matter to the Supreme Court through a Petition for Review on Certiorari. However, prior to the resolution of this petition, both parties engaged in negotiations that culminated in a Joint Motion to Render Judgment Based on a Compromise Agreement. This agreement aimed to resolve all claims between the parties amicably to avoid prolonged litigation.
Compromise Agreement Details
As part of the Compromise Agreement, Licup consented to receive a total of PHP 7,500,000.00 as full settlement of any claims arising from his dealings with Shell. The terms dictated that Shell would handle the removal of all signage and equipment bearing its trademarks at Shell’s expense, while Licup was responsible for repainting and ensuring the non-use of Shell’s trademarks thereafter.
Release from Liability
In the agreement, Licup released Shell and its affiliates from any future claims resulting from their prior contracts. Licup further committed to not pursue any claims as part of this resolution, thus extinguishing his claims as established in the RTC's decision. For its part, Shell also waived claims against Licup mentioned in its pleadings from the original civil case.
Judicial Approval of the Compromise
The Compromise Agreement received judicial appro
...continue readingCase Syllabus (G.R. No. 168834)
Case Background
- This case involves a Petition for Review on Certiorari filed by Pilipinas Shell Petroleum Corporation against Sergio Licup, challenging decisions made by the Court of Appeals and the Regional Trial Court regarding a Sublease and Dealership Agreement (SLDA).
- The initial complaint was filed by Licup against Shell for Specific Performance and Damages, leading to Civil Case No. 95-413 in the Regional Trial Court, Branch 61, City of Makati.
Court Decisions
Trial Court Ruling: On December 11, 2000, the RTC ruled in favor of Licup, awarding him:
- Actual damages of PHP 50,000 per month from March 1993 until final judgment.
- Moral damages amounting to PHP 500,000.
- Exemplary damages of PHP 500,000.
- Attorney's fees totaling PHP 111,500 (including acceptance and professional fees, plus per court appearance fees).
- The termination of the SLDA and Lease Agreement was also declared effective upon the finality of the decision.
Court of Appeals: On November 18, 2004, the CA affirmed the RTC'