PHILCOMSAT v. Globe Telecom | 147324 | May 25, 2004 | TINGA, J.

DOTRINE: Force Majeure refers not only to events that are unforeseeable, but also to those which are
foreseeable, but inevitable (i.e. beyond the control of the parties).

FACTS:
Globe had been engaged in the coordination of the provision of various communication facilities
for the US Military Bases. The company contracted Philcomsat to establish and operate an earth station
for the exclusive use and acess of the US Defense Communications Agency. Term was for 5 years. In
turn, Globe promised to pay rentals for each leased circuit involved.

Both knew that the RP-US Military Bases Agreement was about to expire. On 16 September
1991, the Senate passed a resolution deciding not to concur in the ratification of an extension of the RP-
US MBA. The Philippine Government sent a Note Verbale to the US Government stating that since the
RP-US MBA shall terminate on 31 December 1992, the withdrawal of all US military forces should be
completed by said date.

Globe notified Philcomsat of its intention to discontinue the use of the earth station in view of the
withdrawal of US military personnel after the termination of the RP-US MBA.

Philcomsat sent a reply stating that Globe must pay the stipulated rentals for the remaining terms
of the Agreement amounting to US$4,910,136.00. Globe refused. Philcomsat filed a complaint against
Globe.

Basically:
Philcomsat: The contract is for 5 years. Magbayad ka hanggang matapos.

Globe: The termination of the RP-US MBA and withdrawal of US forces constituted force
majeure, thus, exempting me from paying rentals for the remaining period of the
Agreement. Also, tinigil ko na nung Nov. Hindi ko na kailangan magbayad for December.

ISSUES:
[1] WON the termination of the RP-US MBA, the non-ratification of the Treaty of Friendship, Cooperation
and Security, and the consequent withdrawal of US military forces and personnel constitute force majeure
YES, Globe is exempted.

[2] WON Globe is liable to pay rentals under the Agreement for the month of December 1992. YES

RATIO:
[1] Philcomsat contends that under Art. 1174 of CC, an event constituting force majeure must be
unforseen to exempt Globe from its obligation. WRONG, because:
- Article 1174, which exempts an obligor from liability on account of fortuitous events or
force majeure, refers not only to events that are unforeseeable, but also to those which are
foreseeable, but inevitable.
- In fact, under Sec. 8 (no.9) of their agreement, they listed circumstances beyond the
control of the parties as constituting force majeure (Recite 1305 and 1159).
- Requisites were present to exempt Globe: (1) event was independent of human will, (2)
occurrence rendered fulfillment of obligation in a normal manner impossible, and (3) Obligor was
free of participation in, or aggravation of, the injury to the creditor.
[2] The USDCA had control over the space station until 31 December 1992. Philcomsat could not have
removed or rendered ineffective the said communication facility until that date because it was accessibly
only to US naval personnel up to that time.