Shell asks court to dismiss case vs oil firms

By JEAMMA A. SABATE
August 9, 2009, 4:49pm

The Pilipinas Shell Petroleum Corporation (PSPC) has asked the Manila Regional Trial Court (RTC) to dismiss the amended petition filed by the consumer group Social Justice Society (SJS) against the three oil companies even as it filed a P3-million compulsory counterclaim against the group.

The PSPC asked Judge Silvino Pampilo Jr. of Manila RTC Branch 26 to dismiss the amended petition filed by the SJS against PSPC and two other oil firms, Petron and Chevron.

The PSPC denied the allegation by the SJS that an increase in the prices of petroleum products by one of the respondents is inevitably followed by a similar increase by the other respondents, and that the respondents are abusing their right to make profits.

After lawyer Vladimir Cabigao and the SJS filed an amended petition of the declaratory relief against the three oil giants, the PSPC reacted by filing a counter-claim against the petitioners who, according to PSPC, have been accusing the oil companies of using pricing schemes grossly disadvantageous to the public.

PSPC, in its answer to the amended petition of the declaratory relief filed by the SJS and Cabigao, is asking for P3 million worth of nominal and exemplary damages and attorney's fees and litigation expenses.

“In addition, since PSPC was unnecessarily dragged into litigation and was constrained to engage the services of counsel for a fee and to incur attorney's fees and expenses of litigation due to the licentious actuations of the petitioners, the latter should be ordered to pay PSPC attorney's fees and litigation expenses in the amount of not less than P1 million,” the oil firm added.

“Over the years, PSPC strived to earn and maintain its reputation as a reputable, responsible and socially responsive oil company... to ensure the security of fuel supply in the  country.

Hence, this patently baseless and malicious accusation against PSPC has unjustly and unfairly subjected PSPC to bad propaganda, misleading and malicious publicity. Thus, the court should order the petitioners to pay PSPC the amount of not less than P1 million as nominal damages,” the oil firm said.

“By way of example or correction for the public good so that others who are like-minded may be deterred from filing baseless complaints and inducing public and massive actions based on untruthful accusations, petitioners should be ordered to pay PSPC the amount of not less than P1 million as exemplary damages,” it said.

However, according to Cabigao, there are no factual and legal basis to allege compulsory counterclaim against petitioners by way of nominal, exemplary damages and attorney’s fees and litigation expenses.