489 Phil. 314
CARPIO-MORALES, J.:
WHEREFORE, the instant petition for review on certiorari is GRANTED. The Amended Decision of the Court of Appeals dated March 8, 1996 is SET ASIDE and the Resolution of the Regional Trial Court declaring the Motion for Reconsideration filed by the Philippine Banking Corporation is pro forma is REINSTATED.In granting respondent’s motion, the Court took into consideration the fact that parties belong to the banking industry over which the government has a vital interest and that movant’s failure to comply with the requirement of notice and hearing when it filed its motion for reconsideration of the trial court’s Decision[3] of August 24, 1993 is not commensurate to the severe prejudice it would suffer in light of the seeming error of the trial court in imposing the interest on the judgment obligation, the correctness of which interest respondent raised for the first time in its motion at bar.
This Agreement entered into this _____ (sic) day of ____ (sic), 2004 in Makati City by and between:Under Article 1306 of the Civil Code, contracting parties may establish such stipulations, clauses, terms and conditions as they may deem convenient, provided they are not contrary to law, morals, good customs, public order, or public policy. Thus, a compromise agreement whereby the parties make reciprocal concessions to resolve their differences to thereby put an end to litigation is binding on the contracting parties and is expressly acknowledged as a juridical agreement between them.[6] To have the force of res judicata, however, the compromise agreement must be approved by final order of the court.[7]The National Commercial Bank, Saudi Arabia, a company engaged in banking, duly organized and existing under the laws of Saudi Arabia, with principal office at King Abdul Aziz Street, Jeddah, Saudi Arabia, hereinafter referred to as NCB and represented herein by its Head, International Banking, MR. ALA’A AL JABRI;And
METROPOLITAN BANK & TRUST COMPANY, a universal banking corporation duly organized and existing under the laws of the Philippines, with principal office address at Metrobank Plaza, Sen. Gil Puyat Avenue, Makati City, as successor-in-interest of PHILIPPINE BANKING CORPORATION (PBC) hereinafter referred to as METROBANK, and represented herein by its Senior Executive Vice President ANGELITO M. VILLANUEVA.
WHEREAS, on December 4, 1985, NCB [National Commercial Bank, Saudi Arabia] filed a complaint against PBC [Philippine Banking Corporation] to recover duplicate payment of the proceeds of letters of credit in the aggregate amount of US$971,919.75, said case is docketed as Civil Case No. 12419 Regional Trial Court (RTC) Makati City Branch 134;
WHEREAS, on August 24, 1993, the RTC rendered a decision the dispositive portion of which reads:WHEREFORE, judgment is hereby rendered in favor of plaintiff, National Commercial Bank of Saudi Arabia and against defendant Philippine Banking Corporation ordering the said defendant:
- To pay plaintiff the sum of US$971,919.75, United States Currency, with legal rate of interest of 12% per annum from 1975 until defendant returns the entire amount of duplicate payments;
- To pay plaintiff as attorney’s fees the amount of $62,911.77, United States Currency and expenses of litigation in the amount of P236,628.66;
- Costs of suit.
SO ORDERED.WHEREAS, in a Resolution of the Supreme Court promulgated on August 18, 2004, the Court directed that all the records of the case be elevated for its final resolution;
WHEREAS, NCB and METROBANK desire to abbreviate the long and protracted legal battle and settle the case amicably to the satisfaction of both parties;
NOW THEREFORE, for and in consideration of the foregoing and subsequent premises, NCB and METROBANK hereby agree as follows:IN WITNESS WHEREOF, the parties have hereunto set their hands on the date and place first above-written.
- As and by way of FULL, COMPLETE and FINAL SETTLEMENT and SATISFACTION of all claims, charges, demands or causes of action, in law or in contract, which NCB has against METROBANK, METROBANK shall pay the amount of ONE MILLION EIGHT HUNDRED THOUSAND, United States Currency (US$1,800,000.00);
- That in consideration of the receipt of said amount NCB, its successors-in-interests, representatives and assigns, forever and unconditionally releases, waives and discharges METROBANK, its stockholders, directors, officers, agents, employees, subsidiaries and affiliates, from any and all cause or causes of actions, sum or sums of money, accounts, damages, claims and demands, in law, in contract or in equity, under the prevailing laws and regulations, of whatever kind and nature, criminal, civil or administrative, past, present or contingent, which NCB, its successors-in-interests, representatives and assigns had, has, or may have against METROBANK, its stockholders, directors, officers, agents, employees, subsidiaries and affiliates.
THE NATIONAL COMMERCIAL BANK,
SAUDI ARABIA
By:(Sgd.) ALA’A AL JABRI
Head, International BankingMETROPOLITAN BANK AND TRUST COMPANY
TIN: -43-000-188-233
By:
(Sgd.) ANGELINO M. VILLANUEVA
Senior Executive Vice President
SIGNED IN THE PRESENCE OF:
(Sgd). Jovencio Capulong (Sgd). Mustaza Bin Kassim