MANILA, Philippines - The Court of Appeals junked the plea of Prudentialife Plans executives and some planholders to refer the pre-need company's rehabilitation case to mediation.
In a 5-page resolution by Associate Justice Ramon Cruz, the CA's Fifth Division gave weight to the Insurance Commission's motion to oppose the mediation.
The IC cited the Court's rules that stated cases with pending applications for restraining orders or preliminary injunctions cannot be referred to mediation.
Also, the IC said mediation would continue to delay the proceedings.
"Indeed cases with pending applications for restraining orders and/or preliminary injunctions are excluded from the coverage of mediation, unless both parties consent to mediation," the CA said in its decision.
The CA noted the IC indicated its refusal to undergo mediation.
"Further, in our view, due to the number of parties involved, to refer the case to mediation would be superfluous. The decision to refer a case to mediation involves judicial discretion. The motion to refer the petition to court mediation is hereby denied," the CA said.
Prudentialife earlier filed a petition before the CA seeking to stop the IC from implementing its resolution last September 2012 which terminated its conservatorship and denied its rehabilitation plan.
Now, with the denial of Prudentialife's bid to refer the case to mediation, the CA has submitted its petition for decision.
The IC placed Prudentialife under receivership last September 19, 2012. In October 2012, the IC ordered its liquidation after Prudential Life failed to present an acceptable rehabilitation plan.