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SUPREME COURT REPORTS ANNOTATED VOLUME 542

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Case Title: Select some text within a
PHILIPPINE PORTS AUTHORITY, paragraph and click here to
petitioner, vs. WILLIAM copy the selected text. Citation
GOTHONG ABOITIZ (WGA), INC., included.
respondent.

Citation: 542 SCRA 514

514 SUPREME COURT REPORTS ANNOTATED
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Philippine Ports Authority vs. William Gothong & Aboitiz
(WG&A), Inc.
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*
G.R. No. 158401. January 28, 2008.

PHILIPPINE PORTS AUTHORITY, petitioner, vs.

WILLIAM GOTHONG & ABOITIZ (WG&A), INC.,
respondent.

Remedial Law; Pleadings and Practice; Amendments; The

import of Section 3, Rule 10 of the 1997 Rules of Civil Procedure
emphasized in Valenzuela v. Court of Appeals, 363 SCRA 779 (2001),
is that under the new rules, the amendment may (now)
substantially alter the cause of action or defense.The Court has
emphasized the import of Section 3, Rule 10 of the 1997 Rules of
Civil Procedure in Valenzuela v. Court of Appeals, 363 SCRA 779
(2001), thus: Interestingly, Section 3, Rule 10 of the 1997 Rules of
Civil Procedure amended the former rule in such manner that the
phrase or that the cause of action or defense is substantially
altered was strickenoff and not retained in the new rules. The clear
import of such amendment in Section 3, Rule 10 is that under the
new rules, the amendment may (now) substantially alter the cause
of action or defense. This should only be true, however, when
despite a substantial change or alteration in the cause of action or
defense, the amendments sought to be made shall serve the higher
interests of substantial justice, and prevent delay and equally
promote the laudable objective of the rules which is to secure a
just, speedy and inexpensive disposition of every action and
proceeding.

PETITION for review on certiorari of the decision and

resolution of the Court of Appeals.

The facts are stated in the opinion of the Court.

The Government Corporate Counsel for petitioner.
Arthur D. Lim for respondent.

AUSTRIA-MARTINEZ, J.:

This resolves the Petition for Review on Certiorari filed by

the Philippine Ports Authority (petitioner) seeking the
rever-

_______________

* THIRD DIVISION.

515

VOL. 542, JANUARY 28, 2008 515

Philippine Ports Authority vs. William Gothong & Aboitiz
(WG&A), Inc.

1
sal of the Decision of the Court of Appeals (CA)
promulgated on October 24, 2002 and its Resolution dated
May 15, 2003.
The antecedent facts are accurately narrated by the CA
as follows:

Petitioner William Gothong & Aboitiz, Inc. (WG&A for brevity), is a

duly organized domestic corporation engaged in the shipping
industry. Respondent Philippine Ports Authority (PPA for brevity),
upon the other hand, is a government-owned and controlled
company created and existing by virtue of the provisions of P.D. No.
87 and mandated under its charter to operate and administer the
countrys sea port and port facilities.
After the expiration of the lease contract of Veterans Shipping
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