A COURT upheld an earlier decision to award DFNN, Inc. P310 million for damages arising from the premature termination of its lease agreement with the Philippine Charity Sweepstakes Office (PCSO).
In decision dated May 18, the Regional Trial Court of Makati City denied the motion of PCSO to reconsider the amount of the arbitral award, the gaming technology solutions provider told the Philippine Stock Exchange on Monday.
“While we and our shareholders are pleased with the latest ruling of the court, we are also cognizant of the public good,” DFNN President and Chief Executive officer Ramon C. Garcia, Jr. said in the disclosure.
“We recognize the mandate of PCSO to raise funds for charity, and we reiterate our openness and commitment to partnering and working with PCSO to achieve this goal,” he added.
An arbitration committee has ordered PCSO to pay DFNN P27 million in liquidated damages for terminating an equipment lease agreement without a valid reason.
DFNN, however, petitioned the Makati Regional Trial Court to adjust the arbitration award by over 10 times to P310.1 million.
In Feb. 17, the court ordered the correction of the arbitral award to P310.1 million plus interest from the date of finality of the decision until fully satisfied by the PCSO.
“The court, after having read the parties’ respective pleadings does not find any justifiable reason to overturn the assailed decision, much less issue a different ruling,” the latest order was quoted as saying in the disclosure.
“When the court ruled for the petitioner, it was after a thorough perusal of the attendant circumstances, taking into consideration the facts and applicable law,” it added.
Shares in DFNN rose 3.73% to close at P6.95 apiece on Monday. — Keith Richard D. Mariano
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