Agan vs PIATCO GR No 155001 05 May 2003

EN BANC

Facts: Petitioners filed instant petitions for prohibition seeking to prohibit the Manila International
Airport Authority (MIAA) and the Department of Transportation and Communications (DOTC) and its
Secretary from implementing the following agreements executed by the Philippine Government through
the DOTC and the MIAA and the Philippine International Air Terminals Co., Inc. (PIATCO): (1) the
Concession Agreement signed on July 12, 1997, (2) the Amended and Restated Concession Agreement
dated November 26, 1999, (3) the First Supplement to the Amended and Restated Concession Agreement
dated August 27, 1999, (4) the Second Supplement to the Amended and Restated Concession Agreement
dated September 4, 2000, and (5) the Third Supplement to the Amended and Restated Concession
Agreement dated June 22, 2001 (collectively, the PIATCO Contracts).

Issue: Whether or not petitioning employees has legal standing to raise validity of the PIATCO contracts?

Decision: Petition granted and contracts declared null and void. Petitioner’s have direct and substantial
interest to protect by reason of the implementation of the PIATCO contracts. They stand to lose their
source of livelihood, a property right which is protected by the Constitution. Subsisting agreements
between MIA and petitioners stand to be terminated by the PIATCO contracts. The financial prejudice
brought about by the PIATCO contract to petitioners is legitimate interests sufficient to give them legal
standing to file the petition.