[G.R. No. 141338. November 29, 2000]

CONSOLIDATED PLYWOOD, INC. vs. DAVAO LIGHT & POWER CO.

FIRST DIVISION

Gentlemen:

Quoted hereunder, for your information, is a resolution of this Court dated NOV 29 2000.

G.R. No. 141338 (Consolidated Plywood Industries, Inc. vs. Davao Light & Power Co., Inc.

G.R. No. 141607 (Davao Light & Power Co. Inc., vs. Consolidated Plywood Industries, Inc.)

These consolidated cases stemmed from a complaint for a sum of money instituted by Davao Light and Power Co., Inc., against Consolidated Plywood Industries, Inc. the antecedent facts as culled from the decision of the Court of Appeals are as follows:

The defendant is engaged in the sawmilling and woodworking business in Panacan, Davao City having purchased the same from L.S. Sarmiento & Co. Inc. Thereupon it applied for, and plaintiff installed a new electric meter No. 69755 PDI Murray Seal No. A-39338 on said meter on September 22, 1983 at plaintiff's electric post beside the national highway outside defendant's fence. On February 20, 1986, defendant complained that the meter was registering high even if its operations were not in full gear and requested that the meter be checked or replaced. The meter was inspected by plaintiff's Engr. Jaime F. Farne, Jr. who submitted a report dated February 25, 1986 (Exhibit "J", Record, p. 317) that the seals were intact and the meter was functioning properly. Plaintiff's Vice President for administration and resident manager indicated his conformity thereto. On March 7, 1988, the meter was again inspected by plaintiff's employees accompanied by Engr. Carlos Reyes of the Energy Regulatory Board and C. Manliguez of the Office of the Davao City Electrician. They were accompanied by defendant's maintenance foreman Dario Tolop. The meter was found to be defective and was changed in April 1988 (Appellee's Brief, p. 14; Rollo, p. 133). Plaintiff computed the unbilled consumption to be P584,282.61 (Exh. "F" & "G"). Plaintiff wrote defendant for a conference (Exh. "H") but none materialized. Thereafter, plaintiff instituted this action. 1 Rollo , G.R. No. 141338, p. 94.

On March 2, 1993, the Regional Trial Court, Davao City, Branch 16, rendered a decision, the dispositive portion of which reads:

WHEREFORE, judgment is rendered against the defendant ordering it to pay plaintiff:

(1)������� the amount of P584,202.61 representing the unbilled consumption;

(2)������� P40,000.00 as attorney's fees and cost of litigation;

(3)������� Costs. 2 Id ., at 93-94.

From the decision of the trial court, both parties appealed to the Court of Appeals. Consolidated Plywood refused to pay the alleged unbilled power asserting that there was no evidence to prove that it had tampered the electric meter. On the other hand, Davao Light questioned the non-award of the 2% surcharge and exemplary damages allegedly due to it.

On April 30, 1999, the Court of Appeals affirmed the trial court's decision. The motion for reconsideration of Consolidated Plywood and the partial motion for reconsideration of Davao Light were, likewise, denied.

Hence, these petitions.

On January 21, 2000, Consolidated Plywood filed a petition for review, docketed as G.R. No. 141338 and raffled to the First Division.

On February 9, 2000, Davao Light filed its petition for review with this Court. This was docketed as G.R. No. 141607 and assigned to the Second Division of this Court. The corresponding Comments and Replies in the respective petitions were filed by the parties. Eventually, these cases were ordered consolidated in a Resolution dated August 28, 2000. 3 Id., at 333.

On November 6, 2000, the parties assisted by their respective counsels submitted a Motion to Admit and Approve the Compromise Agreement dated October 26, 2000 which reads as follows:

Davao Light & Power Co., Inc., (DLPC), as respondent in G.R. No. 141338 and petitioner in G.R. No. 141607 and Consolidated Plywood Industries, Inc. (CPII), as the petitioner in GR No. 141338 and respondent in GR No. 141607, both before this Honorable Court, assisted by their respective counsels, most respectfully aver:

1.�������� The above cases have been ordered consolidated pursuant to the resolutions of June 19, 2000 and August 28, 2000 of the Honorable First Division in GR No. 141338.

2.�������� The parties are desirous of putting behind then this litigation arising from the claim of unbilled electricity consumption of CPII covering the period from February 1987 to March 1988, in order to repair relations between them.

3.�������� Pursuant to such sole intention of the parties to put an end to the instant litigation and to repair the relations between them, CPII without admitting to any wrongdoing, has paid a total of PESOS: FOUR HUNDRED THOUSAND and 00/xx (P400,000.00) to Davao Light & Power Co., Inc., (DLPC), receipt of which is hereby acknowledge by the latter, in full satisfaction of all its claim against CPII and the subject matter of the judgment of the Court of Appeals rendered on April 30, 1999 in CAGR CV No. 42018, by way of appeal from the judgment of the Regional Trial Court rendered on March 17, 1993 in Civil Case No. 19,641-89

4.�������� Upon payment of the above amount and full acknowledgment of satisfaction of all claims of DLPC, both parties each waive all other claims counterclaims, and/or, actions that they may have against the other and/or its directors, officers and employees, arising from the above matters, thereby putting a definitive end to all litigation and a waiver to any future action and claims, between them and/or its directors, officers and employees, arising from the above subject matter.

5.�������� For and in consideration of the above payment and full acknowledgment of satisfaction of DLPC's claims sought before the Regional Trial Court and the Court of Appeals, the parties have entered upon this compromise agreement terminating all pending petitions and proceedings above-stated before this Honorable Court, and waiving all other actions and claims in connection with the same subject.

6.�������� The parties further agree that attorneys' fees and the costs of suit in all the instant cases shall each be borne by the respective parties.

7.�������� Accordingly, the parties respectfully pray of the Honorable Court to approve the instant settlement and to dismiss and declare as terminated and closed, the instant proceedings and cases and all other claims and causes that the parties may each have against the other and/or their directors, officers and employees, arising from the instant cases and its subject matter.

8.�������� The instant Motion is not interposed for delay but is solely intended for the expeditious dismissal, termination and closure of the instant cases and all the claims and causes the parties may have against each other and/or their directors, officers and employees, and the restoration of the relationship between the parties.

WHEREFORE, in view of the foregoing, the parties, assisted by their counsels, respectfully pray that the above compromise not being contrary to law, morals, and public policy, be approved by this Court, and the pending proceedings be declared closed and terminated.

RESPECTFULLY SUDMITTED.

Davao City for Manila, Philippines, 26 October, 2000.

CONSOLIDATED PLYWOOD������������������ DAVAO LIGHT & POWER CO., INC.

Petitioner in GR No. 141338 and����������������� Petitioner in GR No. 141607 and

Respondent in GR No. 141607�������������������� Respondent in GR No. 141338

By:����������������� ����������������������������������������������� By:

(Sgd.) HENRY WEE� ����������������������������������� (Sgd.) ALFONSO Y. ABOITIZ

President������������������������������� Chief Operating Officer

Assisted by:��������������������������������������������������� Assisted by:

CARPIO VILLARAZA & CRUZ���� BREVA & BREVA LAW FIRM

5 th Flr. LTA Bldg., 118 Perea Street������������ 2 nd Flr. Breva Bldg.

Legaspi Village��������� ����������� E. Quirino Ave., Davao City

1229 Makati City, M.M.

(Sgd.) BIENVENIDO I. SOMERA, JR������ (Sgd.) OSCAR G.C. BREVA

IBP Life member Roll���������� Counsel for DLPC

No. 006307 Ÿ 7.01 Ÿ Kalookan City�� IBP No. 1519.1.31.00 Ÿ D.C.

PTR No. 1888461 Ÿ 1.17.00 Ÿ Mkti.� PTR No. 9703622 Ÿ 2.01.00 Ÿ .D.C.

(Sgd.) JOHN JERICO L. BALISNOMO

IBPNo. 493327 Ÿ 1.03.00.Mkti

PTR. No. 1888482 Ÿ 1.17.00.Mkti. 4 Rollo, G.R. No. 141338, p. 340.

We find the foregoing compromise agreement to be legally accepted, nothing therein being contrary to law, morals, good customs and public policy, and the same having been freely and intelligently executed by and between the parties. As prayed for, judicial approval is granted.

WHEREFORE, the aforequoted Compromise Agreement is APPROVED and the parties are hereby enjoined to comply with its terms and conditions. The Decision of the RTC, Davao City Branch 16 dated March 2, 1993 and the Decision of the Court of Appeals dated April 30, 1999 are SET ASIDE; and these consolidated cases are hereby declared CLOSED AND TERMINATED.

Very truly yours,

(Sgd.) VIRGINIA ANCHETA-SORIANO

Clerk of Court�


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