CA affirms decision nullifying RTC order on Banco Filipino

MANILA - The Court of Appeals has affirmed its decision nullifying the Regional Trial Court of Makati City's order directing the Bangko Sentral ng Pilipinas (BSP) and the Monetary Board (MB) to release up to P25 billion in financial assistance, among others, to Banco Filipino Savings and Mortgage Bank.

In a minute resolution penned by Associate Justice Hakim Abdulwahid, the CA'S Former Special Tenth Division maintained Banco Filipino did not raise new arguments in its motion for reconsideration that warrants the reversal of its July 28, 2011 ruling.

" We have carefully reviewed our decision visavis the instant motion and the Comment/ Opposition filed by petitioners BSP and the MB, and we found that the issues raised therein and the arguments advanced in support thereof are mere rehash of those already considered and passed upon, and no new issues or substantial arguments have been presented to justify the reversal or modification of the assailed decision,” the CA said.

Associate Justices Noel Tijam and Ricardo Rosario concurred with the decision.

Banco Filipino filed a motion for reconsideration last October 3, but failed to convince the CA that the RTC has jurisdiction to hear the case.

In its July 28 decision, the CA ordered the dismissal of Civil Case No. 10-1042, which was filed by Banco Filipino against the BSP and the MB. This became the basis of Makati RTC Judge Joselito C. Villarosa's order the release of P25 billion financial assistance and other regulatory reliefs for the bank.

However, the appellate court said the RTC has no jurisdiction over the case filed by Banco Filipino assailing MB Resolution No. 1668.

The CA'S Tenth Division made the ruling just 3 weeks after another division issued a decision declaring null and void the memorandum issued by BSP and MB placing Banco Filipino under receivership.

In the decision issued on January 27, the CA'S Former Special Fourteenth Division directed the BSP to re- open the bank and provide financial assistance in the amount of not less than P25-billion "in order to ensure fast and immediate recovery of the bank from the ill-effects of the illegal closure.”

The BSP said the Former Special Fourteenth Division should have not tackled the implementation of the business plan, since the CA'S Tenth Division had already ruled on the matter. ( Wires)