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    Philcomsat v. Globe Telecom - Case Digest

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    Lulu Rodriguez
    Philcomsat v. Globe Telecom involved an agreement between Philcomsat and Globe for Philcomsat to establish an earth station for the exclusive use of the US Defense Communications Agency. Globe was to pay monthly rentals. When the US withdrew military forces from the Philippines, Globe notified Philcomsat it would discontinue use of the earth station. Philcomsat demanded payment of rentals for the balance of the lease term. The Supreme Court ruled the withdrawal of US forces constituted force majeure, exempting Globe from further rental payments as the purpose of the agreement could no longer be fulfilled through no fault of either party.

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    Philcomsat v. Globe Telecom - Case Digest

    Uploaded by

    Lulu Rodriguez
    3K views2 pages
    Philcomsat v. Globe Telecom involved an agreement between Philcomsat and Globe for Philcomsat to establish an earth station for the exclusive use of the US Defense Communications Agency. Globe was to pay monthly rentals. When the US withdrew military forces from the Philippines, Globe notified Philcomsat it would discontinue use of the earth station. Philcomsat demanded payment of rentals for the balance of the lease term. The Supreme Court ruled the withdrawal of US forces constituted force majeure, exempting Globe from further rental payments as the purpose of the agreement could no longer be fulfilled through no fault of either party.

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    Philcomsat v. Globe Telecom- Case Digest

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    Philcomsat v. Globe Telecom involved an agreement between Philcomsat and Globe for Philcomsat to establish an earth station for the exclusive use of the US Defense Communications Agency. Globe was to pay monthly rentals. When the US withdrew military forces from the Philippines, Globe notified Philcomsat it would discontinue use of the earth station. Philcomsat demanded payment of rentals for the balance of the lease term. The Supreme Court ruled the withdrawal of US forces constituted force majeure, exempting Globe from further rental payments as the purpose of the agreement could no longer be fulfilled through no fault of either party.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    3K views2 pages

    Philcomsat v. Globe Telecom - Case Digest

    Uploaded by

    Lulu Rodriguez
    Philcomsat v. Globe Telecom involved an agreement between Philcomsat and Globe for Philcomsat to establish an earth station for the exclusive use of the US Defense Communications Agency. Globe was to pay monthly rentals. When the US withdrew military forces from the Philippines, Globe notified Philcomsat it would discontinue use of the earth station. Philcomsat demanded payment of rentals for the balance of the lease term. The Supreme Court ruled the withdrawal of US forces constituted force majeure, exempting Globe from further rental payments as the purpose of the agreement could no longer be fulfilled through no fault of either party.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Philcomsat v.

    Globe Telecom
    430 SCRA (2004)

    CASE DIGEST

    Facts:

     Globe Telecom, Inc. (Globe) is engaged in the coordination of the provision of


    various communication facilities for the military bases of the United States of
    America (US) in the Clark Air Base and Subic Naval Base. Saud
    communication facilities were installed and configured for the exclusive use
    of the US Defense Communications Agency (USDCA). Globe contracted
    Philippine Communications Satellite Corporation (Philcomsat) for the
    provision of the communication facilities.

    Philcomsat and Globe entered into an agreement whereby Philcomsat obliged


    itself to establish, operate and provide an IBS Standard B earth station
    (earth station) for the exclusive use of the USDCA. Globe promised to pay
    Philcomsat monthly rentals for each leased circuit involved. Philcomsat
    installed and established the earth station and the USDCA made use of the
    same. Senate passed and adopted its resolution, expressing its decision not
    to concur in the ratification of the Treaty of Friendship, Cooperation and
    Security and its Supplementary Agreements that was supposed to extend the
    term of the use by the US of Subic Naval Base, among others.

    PH government sent a Note Verbale to the US government through the US


    Embassy, notifying it of the Philippine termination of the RP-US Military Base
    Agreement. The withdrawal of all US military forces from Subic Naval Base
    should be completed by December 31. 1992. Globe notified Philcomsat of its
    intention to discontinue the use of the earth station. Philcomsat demand
    payment of rentals for the balance of lease term, despite the non-use of
    earth station.

    Issue/s:

    1. Whether the termination of the RP-US Military Base Agreement, the non-
    ratification of the Treaty of Friendship, Cooperation and Security, and the
    consequent withdrawal of US military forces and personnel from Cubi Point
    constitute force majeure which would exempt Globe from complying with its
    obligation to pay rentals under its Agreement with Philcomsat.
    Ruling:

    Yes. Philcomsat and Globe had no control over the non-renewal of the term
    of the RP-US Military Base Agreement when the same expired in 1991,
    because the prerogative to ratify the treaty extending the life thereof
    belonged to the Senate. Neither did the parties have control over the
    subsequent withdrawal of the US military forces and personnel from Cubi
    Point in December 1992.

    As a consequence of the termination of the RP-US Military Base Agreement


    the continued stay of all US Military forces and personnel from Subic Naval
    Base would no longer be allowed, hence, plaintiff would no longer be in any
    position to render service it was obligated under the Agreement.

    Events made impossible the continuation of the Agreement until the end of
    its five-year term without fault on the part of either party. Such fortuitous
    events rendered Globe exempt from payment of rentals for the remainder of
    the term of the Agreement.

    Philcomsat would like to charge globe rentals for the balance of the lease
    term without being any corresponding telecommunications service subject of
    the lease. It will be grossly unfair and iniquitous to hold globe liable for lease
    charges for a service that was not and could not have been rendered due to
    an act of the government which was clearly beyond globes control

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