THIRD DIVISION

February 6, 2017

G.R. No. 200749

CECILIO ABENION, CANDELARIO S. CASIMSIMAN, ERNESTO R. OLLEGUE, JIMMY S. SALE, PONCIANO T. TINAMBACAN, DOMINADOR S. SELDURA, ANDRES P. ATCHIV ARA, ANTONIO M. CABULANG, TIRSO S. LIMBAGA, RAMON J. LIPER, JUANITO P. GODOY, ANIANO J. DEJESICA, JULITO I. JUNASA, SOFRONIO S .. DUMBASE, APOLINAR S. ESTAÑO, BEN S. ARIETA, VICENTE G. RIVAS, GLORIA S. OMOÑA, MARINA L. TABUDLONG, ERNESTO S. PASCUAL, NEMIA S. ROSIL, ROMEL M. RUEDAS, RODOLFO N. ARTUBAL, VICTOR C. HONOR, FRUTO M. PEDRAL, JOVENTINO J. CADELIÑA, CONSTANCIO S. COLE, TITO A. CAPUYAN, JUANITO D. LEGASPINO, ALFREDO V. ACAS, CLOTILDO D. ALBASIN, CERILO B. BALANGKIG, ISMAEL M. BAUTISTA, JAGDON D. CASTAÑEDO, PRIMITIVO A. BANGAHO, SR., LEONARDO B. DUMAN-AG, RODRIGO G. PA TRIS, SR., LITO B. LABAJO, EUTEMIO C. ESTOSE, RUSTOM T. TIO, BONIFACIO A. PUROL, OSIAS A. ASURIZ, SR., RUDOLFO P. MACALISANG, OSCAR G. MARTINEZ, VICTOR D. SINGSON, JR., ERNESTO F. FATALLO, ARNOLDS. BASTIDA, ALFREDO L. MORALES, BIBIANO M. PANUDA, DEOGENES L. LAORDEN, CONCORDIO D. OCLARIT, VEVENCIO S. BASTIDA, NEMESIO D. OCLARIT, EGLESIO M. OCLARIT, SR., CIPRIANO V. ABAT, ROMEO C. LUMAGOD, HERMINIGILDO P. EXCLAMADO, SILVESTRE D. EDILLON, PONCIANO B. GEROLAGA, LEOPOLDO D. ACEBEDO, EDUARDO B. ARCAMO, BENEDICTO P. DELA CRUZ, and CRISOSTOMO M. DIANA, SR., Petitioners
vs.
PILIPINAS SHELL PETROLEUM CORPORATION, Respondent

x - - - - - - - - - - - - - - - - - - - - - - - x

G.R. No. 208725

CECILIO ABENION, BEN S. ARIETA, ERNESTO F. FATALLO, PONCIANO B. GEROLAGA, EGLESIO M. OCLARIT, NEMESIO D. OCLARIT, RODOLFO D. MACALISANG, FRUTO M. PEDRAL, OSIAS A. ASURIZ, SR., LEONARDO B. DUMAN-AG, VICTOR C. HONOR, PRIMITIVO M. BONGAHON, WILLIAM J. BADE, HERMINIGILDO P. EXCLAMADO, WARLITO E. BORRES, EDITO B. CAYANONG, EXEQUIEL M. LAPE, ANTONIO A. JAROY, BUENA VENTURA A. BONONO, MAXIMO A. JUANILLO, BENEDICTO P. DELA CERNA, WILFREDO J. ESPAÑOLA, MARIANO S. CRISANTO, RICARDO Q. DAVID, REYNALDO O. ICOY, REYNALDO Y. RICO, CRISOSTOMO M. DIANA, LEONILO H. GALAN, ALFREDO V. ACAS, DIOGENES B. LAORDEN, ROMY A. MANANQUIL, POLICARPIO R. BORJA, GABRIEL B. DIEZ, CONCORDIO D. OCLARIT, VENANCIO S. BASTIDA, ALFREDO L. MORALES, BIBIANO M. PANUDA, CIPRIANO V. ABAT, COMWELL R. LAYAGUIN, MUNDA P. CONOIMON, MAXIMO J. GAGABE, VICTOR D. SINGSON, OSCAR G. MARTINEZ, RODRIGO G. PATRIS, SR., EUTEMIO C. ESTOSE, JETO B. LABAJO, SILVESTRE D. EDILLON, LEOPOLDO D. ACEBEDO, EDUARDO B. ARCAMO, ARNOLD S. BASTIDA and VICENTE G. RIVAS, Petitioners,
vs.
PILIPINAS SHELL PETROLEUM CORPORATION and BANCO DE ORO UNIBANK, Respondents.

D E C I S I O N

REYES, J.:

This resolves the consolidated petitions for review on certiorari, docketed as G.R. No. 200749 and G.R. No. 208725, filed by the petitioners to assail the rulings of the Court of Appeals (CA) in CA-G.R. SP No. 114420 and CA-G.R. SP No. 120638, respectively.

G.R. No. 200749 was filed by its petitioners against Pilipinas Shell Petroleum Corporation (PSPC). Particularly assailed in the petition are the CA Decision1 dated January 31, 2011 and Resolution2 dated February 3, 2012 in CA-G.R. SP No. 114420, in relation to the CA's reversal and setting aside of the Order3 dated June 8, 2010 rendered by the Regional Trial Court (RTC) of Makati City, Branch 62, which granted an execution pending appeal against the injunction bonds posted by PSPC in Civil Case No. 09-749.

G.R. No. 208725 was filed by its petitioners against respondents PSPC and Banco de Oro Unibank (BDO) to assail the CA Decision4 dated August 31, 2012 and Resolution5 dated August 8, 2013 in CA-G.R. SP No. 120638. The CA reversed via the challenged issuances the RTC Makati, Branch 59's Orders dated January 31, 2011,6 May 27, 2011,7 July 21, 2011,8 October 5, 20119 and November 15, 201110 in Civil Case No. 09-941. Essentially, the RTC orders allowed the petitioners' intervention in the civil case and then eventually ordered the complaint's dismissal.

The Facts

Civil Case No. 09-749 and Civil Case No. 09-941, both instituted by PSPC with the RTC Makati, are offshoots of Civil Case No. 95-45, which is a complaint11 for damages filed in 1996 with the RTC of Panabo City, Davao Del Norte, Branch 4 by 1,843 plaintiffs12 (plaintiffs) that included herein petitioners, against Shell Oil Company (Shell Oil), among several other defendants.13 The defendants in Civil Case No. 95-45 were all foreign corporations that manufactured, sold, distributed, used and/or made available in commerce nematocides against the parasite nematode prevalent in banana plantations. These nematocides contained the chemical dibromochloropropane (DBCP). The plaintiffs identified themselves as a group of banana plantation workers who were exposed to DBCP, which caused their sterility and other serious and permanent health injuries.14

During the pendency of Civil Case No. 95-45, Shell Oil entered into a compromise agreement15 with its claimants for a total consideration of US$17 Million, a copy of which was submitted for approval by Shell Oil to RTC Panabo City. The copy submitted to the court did not bear the agreement's exhibits which, according to Shell Oil, indicated the list of 26,328 "worldwide plaintiffs" intended to be covered by the compromise.16 The agreement, sans the list, was approved by RTC Panabo City in its Omnibus Order dated December 20, 2002.17 In view of the compromise, the complaint against Shell Oil was dismissed in an Order18 dated March 24, 2003.

Civil Case No. 95-45 was later transferred to the RTC of Davao City, Branch 14. The plaintiffs again sought recourse from the RTC Davao City, via a Motion for Execution (Re: Enforcement of Judgment Based on Compromise Agreement between plaintiffs and Shell Oil), after Shell Oil allegedly failed to fully satisfy its obligations to them under the compromise agreement. For its defense, Shell Oil argued that it had fully complied with the terms of the compromise agreement. The approved compromise and amount stated therein covered 26,328 agricultural workers from across the globe who filed various cases against it and not just the 1,843 plaintiffs in Civil Case No. 95-45. When it resolved the motion, the RTC Davao City ruled in favor of the plaintiffs and thus issued the Order19 dated July 17, 2009 that directed the issuance of a writ of execution to be enforced against Shell Oil, its subsidiaries, affiliates, controlled and related entities, successors or assigns. The order's dispositive portion reads:

WHEREFORE
, and in view of all the foregoing, let Writ of Execution issue based on the Compromise Agreement between the herein plaintiffs and the defendant [Shell Oil] dated March 15, 2007 - to be ENFORCED as well, on the defendant [Shell Oil's] subsidiaries, affiliates, controlled and related entities, successors or assigns pursuant to the common provision under Clause 28 of the said 1997 Compromise Agreement which are doing business in the Philippines or registered in the Securities and Exchange Commission.

SO ORDERED.20