On July 15 1998, respondent Sabine Koschinger obtained a favourable decision from the Regional Trial Court of Makati City on her complaint for design infringement and damages against the national carrier Philippine Airlines (PAL). Koschinger claimed that PAL used her patented designs on linens and placemats in its commercial flights without her consent or authority. The decision was appealed by PAL to the Court of Appeals.
Earlier, PAL, claiming that it is a distressed company, filed a petition for the appointment of a rehabilitation receiver before the Securities and Exchange Commission (SEC) which the latter granted on June 23 1998, and further ordered the suspension of payment of all claims against PAL. PAL filed a motion for the suspension of the appeal proceedings in both the Regional and Appeal Courts, which the latter denied on September 4 2001, stating that the proceedings in the lower court could no longer be stopped because they had already been terminated, and that appeal is nearly complete. The Court of Appeal further ruled that the appeal is not yet a claim against PAL, and that the issue in the appeal is whether or not the appellant violated the provisions of the patent law, and ordered PAL, the appellee, to file its brief.
Not content with the Court of Appeal decision, PAL filed this petition for certiorari before the Supreme Court (Philippine Airlines Inc vs Court of Appeal and Sabine Koschinger, GR no 150592. In its decision dated January 20 2009, the Supreme Court ruled in favour of PAL, and held that under the interim rules of procedure on corporate rehabilitation, a claim shall include all claims or demands of whatever nature or character against a debtor or its property, whether for money or otherwise. The definition is all-encompassing as it refers to all actions whether for money or otherwise, without distinctions or exemptions. The reason for the suspension of claims while the corporation undergoes rehabilitation proceedings is to enable the rehabilitation receiver to effectively exercise his powers free from any judicial or extra-judicial interference that might unduly hinder or prevent the rescue of the debtor company.
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| Editha R Hechanova |
Hechanova Bugay & Vilchez
GF Chemphil Building Antonio Arnaiz Ave
Makati City 1223
Philippines
Tel: +63 2 888 4293
Fax: +63 2 888 4290
editharh@info.com.ph
