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Marcos victims hit US ruling on US$35M dispute

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Saturday, June 14, 2008
Marcos victims hit US ruling on US$35M dispute

MANILA -- Lawyers for the human rights victims under late dictator Ferdinand Marcos lambasted the US Supreme Court's (SC) ruling in a dispute over some US$35 million in an account held by the late President.

"We are disappointed that there will be another delay in distribution of the money to the Filipino victims. Still, the money will revert to Merrill Lynch and remain in the US. It will not go to the Philippine government," lead lawyer for the class plaintiffs Robert Swift said in a statement sent Friday morning.

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Swift said the High Court effectively "surrendered" its jurisdiction on the issue and said "the case marks the first time the Supreme Court has given up its jurisdiction to a foreign country and in this instance, to a third world country, which was not known for its not being corrupt."

"Today's (Friday) decision marks an unprecedented surrender of federal court jurisdiction. The US Supreme Court ruled that the Philippine government's declared sovereign immunity prevented United States courts from adjudicating entitlement to funds, which have been there for 35 years," said Swift.

He added that despite the passage of 22 years since the Philippines learned about the assets, the Court opted to give Philippine courts a chance to rule -- even in the absence of evidence -- that, the money belongs to the Philippine government.

A group of 9,539 victims is claiming US$35 million in a Marcos shell company as part of a US$2 billion judgment by a Hawaii court in 1995 against the Marcos estate as compensation for summary executions, disappearances, and torture during his 20-year rule. With interest, the award has almost doubled, but no payment has been made to any plaintiffs.

Earlier, Swift criticized the Bush administration for supporting Manila's claim that sovereign immunity represented an automatic rule for dismissing the US case.

Sovereign immunity is the doctrine that bars a legal proceeding against a government without its consent.

Meanwhile, Swift's Filipino counterpart, Rod Domingo Jr., also hit the ruling, saying it failed to take note of the fact that the Philippine government, which is represented in the case by the Presidential Commission on Good Government (PCGG) and the Office of the Solicitor General (OSG), failed to produce evidence showing that it is entitled to the account.

"The US Supreme Court decision is not really that decisive. It did touch on other issues but one question that it did not touch upon is the glaring fact that the Philippine government is not entitled to the money because no evidence at all was introduced that it is so entitled," Domingo said.

In the ruling, the high court overturned a ruling by the US Ninth Circuit Court of Appeals in California that sided with the victims.

The decision was a victory for the Philippine government, which had strenuously argued that the dispute over the money must be settled in Philippine courts and not in the US.

The case involved an account that Marcos set up in 1972 in Arelma, a suspected Panaminian dummy corporation with a US$2 million initial deposit. It has since grown to more than US$35 million.

The human rights victims have argued they should get the amount as part of a US$2 billion judgment rendered by the US court against Marcos estate over abuses committed during his rule.

Despite the adverse decision, Domingo said they have other legal options including the filing of a motion for reconsideration, but he admitted that the likelihood of a reversal is nil.

He said he has yet to consult with the victims on the next course of action but said they will pursue litigation in other cases involving alleged ill-gotten wealth of the late dictator and his family. (AH/Sunnex/With AP)

For more Philippine news, visit Sun.Star Cagayan de Oro.

(June 14, 2008 issue)
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