Appellate court junks damage lawsuit against Semirara

appellate court junks damage lawsuit against semirara - Appellate court junks damage lawsuit against Semirara

SEMIRARA Mining and Power Corp. said a claim for damages filed by a building company has been junked for good.

The Court of Appeals denied the appeal of Bauer Foundations Philippines, Inc., which sued the Consunji-led power company for damages after its drilling operations were allegedly disrupted eight years ago, Semirara told the stock exchange on Wednesday.

The miner hired Bauer in 2012 to drill 122 holes at its coal mining area on Semirara Island in Caluya, Antique province in southern Philippines.

“The agreement generally covered the construction of numerous drilled shafts of 1.2-meter diameter with a depth of 150 meters to be filled with grout and/or concrete,” it said.

But since Bauer was only able to use one rig, instead of two, Semirara then mobilized its own rig, anticipating that the construction company would not be finished within the agreed period. The work was expected to be completed by January 2013.

Bauer’s lone rig broke down on Jan. 18, 2014, and two days later, it pulled out its equipment and discontinued operations in the mining area. It only completed 87 holes, Semirara said.

In May that year, Bauer sued Semirara before a Quezon City court against Semirara. It claimed damages worth P7 million for the unfinished 35 holes, as well as P500,000 in exemplary damages and P100,000 in litigation costs.

“Contrary however to the allegations of Bauer, it is Bauer which failed to perform and deliver based on the timeline as agreed,” Semirara said.

Three years later, the court dismissed Bauer’s lawsuit, prompting it to elevate the case to the appellate court in November 2017.

Semirara shares lost 0.41% to P9.80 each at the close of trading on Wednesday. — Adam J. Ang

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