Adr Cases Submit

8/13/2019 Adr Cases Submit

1/139

THIRD DIVISION

UNIWIDE SALES REALTY AND G.R. No. 126619RESOURCES CORPORATION, Petitioner, Present:

UISU!"ING,J., Chairperson, CARPIO, # $ers%s # CARPIO !ORALES

TINGA, &n' (ELASCO, )R.,JJ.

TITAN#I*EDA CONSTRUCTIONAND DE(ELOP!ENT CORPORATION, Res+on'ent. Pro%-&te':

De/e0er 2, 26 ####################################################################################D E C I S I O NTINGA,J.:

T3is Petition 4or Re$ie5 on Certior&ri %n'er R%-e 7 see8s t3e +&rti&-

re$ers&- o4 t3e 21 e0r%&r 1996 De/ision;197> 53i/3 o'i4ie' t3e 1> A+ri-

1997 De/ision;2


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'isisss%s+en' +ro/ee'ins &n' Tit&ns o+en /o%rt &ni4est&tion &reein

to t3e s%s+ension, Ci$i- C&se No. 9#1 5&s s%s+en'e' 4or it to %n'ero

&r0itr&tion.;


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0&sis o4 'r&5ins &n' s+e/i4i/&tions +ro$i'e' 0 Uni5i'es str%/t%r&-

enineers. T3e +&rties +ro/ee'e' on t3e 0&sis o4 & /ost esti&te

o4P21,=1,>7.>> in/-%si$e o4 Tit&ns 2H &r8#%+. Tit&n /on/e'e' in its

/o+-&int to 3&$in re/ei$e' P17,,. o4 t3is &o%nt. T3is +roBe/t5&s /o+-ete' in t3e -&tter +&rt o4 O/to0er 1992 &n' t%rne' o$er to Uni5i'e.

PROJECT 3.;96

&n' 5i--4%-- re4r&ine' 4ro 'is/-osin s%/3 'isJ%&-i4i/&tions or o4 &n ot3er

is0e3&$ior 0 53i/3 t3e ri3ts o4 &n +&rt 3&$e 0een &teri&--

+reB%'i/e' or ?7@ t3e &r0itr&tors e/ee'e' t3eir +o5ers, or so i+er4e/t-ee/%te' t3e, t3&t & %t%&-, 4in&- &n' 'e4inite &5&r' %+on t3e

s%0Be/t &tter s%0itte' to t3e 5&s not &'e.;192 o4 t3e Ne5 Ci$i- Co'e &s

0&sis 4or its /-&i t3&t it is not -i&0-e to +& 4or &''ition&- 5or8sF it 'i' not

&%t3orie or &ree %+on in 5ritin. T3e +ro$ision st&tes:

Art. 1>2. T3e /ontr&/tor 53o %n'ert&8es to 0%i-' &

str%/t%re or &n ot3er 5or8 4or & sti+%-&te' +ri/e, in /on4orit5it3 +-&ns &n' s+e/i4i/&tions &ree' %+on 5it3 t3e -&n'o5ner,/&n neit3er 5it3'r&5 4ro t3e /ontr&/t nor 'e&n' &nin/re&se in t3e +ri/e on &//o%nt o4 t3e 3i3er /ost o4 -&0or or&teri&-s, s&$e 53en t3ere 3&s 0een & /3&ne in t3e +-&ns&n' s+e/i4i/&tions, +ro$i'e':


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?1@ S%/3 /3&ne 3&s 0een &%t3orie' 0 t3e+ro+rietor in 5ritin &n'?2@ T3e &''ition&- +ri/e to 0e +&i' to t3e/ontr&/tor 3&s 0een 'eterine' in 5ritin 0 0ot3

+&rties.

T3e Co%rt o4 A++e&-s 'i' t&8e note o4 t3is +ro$ision, 0%t 'eee' it

in&++-i/&0-e to t3e /&se &t 0&r 0e/&%se Uni5i'e 3&' &-re&' +&i', &-0eit 5it3

%n5ritten reser$&tions, 4or t3e &''ition&- 5or8s.F T3e +ro$ision 5o%-' 3&$e

0een o+er&ti$e 3&' Uni5i'e re4%se' to +& 4or t3e /osts o4 t3e &''ition&-

5or8s.F Inste&', t3e Co%rt o4 A++e&-s &++-ie' Art. 12=;2>


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+&ent to t3e /ontr&/tor 4or &''ition&- 5or8s 53i/3 5ere not &%t3orie' in

5ritin 0 t3e +ro+rietor, &n' t3e &''ition&- +ri/e o4 53i/3 5&s not

'eterine' in 5ritin 0 t3e +&rties.

Yet t3e 'istin/tion +ointe' o%t 0 t3e Co%rt o4 A++e&-s is &teri&-. T3e

iss%e is no -oner /entere' on t3e ri3t o4 t3e /ontr&/tor to 'e&n' +&ent

4or &''ition&- 5or8s %n'ert&8en 0e/&%se +&ent, 53et3er ist&8en or not,

5&s &-re&' &'e 0 Uni5i'e. T3%s, it 5o%-' not &nore 0e in/%0ent on

Tit&n to est&0-is3 t3&t it 3&' t3e ri3t to 'e&n' or re/ei$e s%/3 +&ent.

"%t, e$en i4 t3e Co%rt &//e+ts Art. 1>2 &s &++-i/&0-e in t3is /&se, s%/3

re/onition 'oes not ipso"acto&//or' Uni5i'e t3e ri3t to 0e rei0%rse' 4or

+&ents &-re&' &'e, sin/e Art. 1>2 'oes not e44e/t s%/3 ri3t o4

rei0%rseent. It 3&s to 0e %n'erstoo' t3&t Art. 1>2 'oes not +re/-%'e t3e

+&ent to t3e /ontr&/tor 53o +er4ors &''ition&- 5or8s 5it3o%t &n +rior

5ritten &%t3ori&tion or &reeent &s to t3e +ri/e 4or s%/3 5or8s i4 t3e

o5ner 'e/i'es &n5& to &8e s%/3 +&ent. W3&t t3e +ro$ision 'oes

+re/-%'e is t3e ri3t o4 t3e /ontr&/tor to insist %+on +&ent 4or

%n&%t3orie' &''ition&- 5or8s.

A//or'in-, Uni5i'e, &s t3e o5ner 53o 'i' +& t3e /ontr&/tor 4or s%/3

&''ition&- 5or8s e$en i4 t3e 3&' not 0een &%t3orie' in 5ritin, 3&s to

est&0-is3 its o5n ri3t to rei0%rseent not %n'er Art. 1>2, 0%t %n'er &

'i44erent +ro$ision o4 -&5. Uni5i'es 0%r'en o4 est&0-is3in its -e&- ri3t to

rei0%rseent 0e/oes e$en ore /r%/i&- in t3e -i3t o4 t3e ener&-

+res%+tion /ont&ine' in Se/tion =?4@, R%-e 1=1 o4 t3e R%-es o4 Co%rt t3&t

one +&i' 0 one to &not3er 5&s '%e to t3e -&tter.F

Uni5i'e %n'ert&8es s%/3 & t&s8 0e4ore t3is Co%rt, /itin t3e +ro$isions

on solutio inde)iti %n'er Arts. 217 &n' 2176 o4 t3e Ci$i- Co'e. Ko5e$er, it is


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not eno%3 to +ro$e t3&t t3e +&ents &'e 0 Uni5i'e to Tit&n 5ere not

'%eF 0e/&%se t3ere 5&s no +rior &%t3ori&tion or &reeent 5it3 res+e/t to

&''ition&- 5or8s. T3ere is & 4%rt3er reJ%ireent t3&t t3e +&ent 0 t3e

'e0tor 5&s &'e eit3er t3ro%3 ist&8e or %n'er & /-o%' o4 'o%0t. In s3ort,4or t3e +ro$isions on solutio inde)itito &++-, t3ere 3&s to 0e e$i'en/e

est&0-is3in t3e 4r&e o4 in' o4 t3e +&or &t t3e tie t3e +&ent 5&s

&'e.;=2


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T3e Tri0%n&- 3o-'s t3&t t3e 4oreoin 'o/%ent is

0in'in %+on t3e ;Uni5i'e


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s3o%-' 3&$e &++-ie'


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%rt3er, it t%rns o%t t3&t )-at )as bein6 $assed o++as a de+ecti7e constr,ction b% /Titan0* )as in +act anold col,'n, &s &'itte' 0 !r. Go5 3ise-4 ;7=


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t-ere+ore* $er'it t-e $arties to reliti6ate be+ore it t-eiss,es o+ +acts $re7io,sl% $resented and ar6,ed be+oret-e "rbitral Trib,nal* sa7e onl% )-ere a clear s-o)in6is 'ade t-at* in reac-in6 its +act,al concl,sions* t-e"rbitral Trib,nal co''itted an error so e6re6io,s and

-,rt+,l to one $art% as to constit,te a 6ra7e ab,se o+discretion res,ltin6 in lac! or loss o+j,risdiction. Protot+i/&- e&+-es 5o%-' 0e 4&/t%&-/on/-%sions o4 t3e Tri0%n&- 53i/3 res%-te' in 'e+ri$&tion o4one or t3e ot3er +&rt o4 & 4&ir o++ort%nit to +resent its+osition 0e4ore t3e Ar0itr&- Tri0%n&-, &n' &n &5&r' o0t&ine't3ro%3 4r&%' or t3e /orr%+tion o4 &r0itr&tors. "n% ot-er*'ore rela#ed r,le )o,ld res,lt in settin6 at na,6-t t-ebasic objecti7e o+ a 7ol,ntar% arbitration and )o,ldred,ce arbitration to a lar6el% in,tile instit,tion.?E+3&sis s%++-ie'.@

WKEREORE, +reises /onsi'ere', t3e +etition is DENIED &n' t3e

De/ision o4 t3e Co%rt o4 A++e&-s '&te' 21 e0r%&r 1996 in CA#G.R. SP No.

=>97> is 3ere0 AIR!ED.

SO ORDERED.

DANTE O. TINGA(ssociate Justice

WE CONCUR:

LEONARDO A. UISU!"ING(ssociate JusticeC3&ir+erson


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ANTONIO T. CARPIO CONCKITA CARPIO !ORALES (ssociate Justice (ssociate Justice

PRES"ITERO ). (ELASCO, )R.(ssociate Justice

"TTEST"TION

I &ttest t3&t t3e /on/-%sions in t3e &0o$e De/ision 3&' 0een re&/3e'

in /ons%-t&tion 0e4ore t3e /&se 5&s &ssine' to t3e 5riter o4 t3e o+inion o4

t3e Co%rts Di$ision.

LEONARDO A. UISU!"ING (ssociate Justice Chairperson! Third Division

CERTIIC"TION

P%rs%&nt to Se/tion 1=, Arti/-e (III o4 t3e Constit%tion, &n' t3e Di$isionC3&ir+ersons Attest&tion, it is 3ere0 /erti4ie' t3&t t3e /on/-%sions in t3e

&0o$e De/ision 3&' 0een re&/3e' in /ons%-t&tion 0e4ore t3e /&se 5&s

&ssine' to t3e 5riter o4 t3e o+inion o4 t3e Co%rts Di$ision.

REYNATO S. PUNO Chie" Justice


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;1> &n' 177#1>. T3e 'is+ositi$e +ortion o4 t3e

s&i' 'e/ision st&tes:WKEREORE, t3e B%'ent o4 t3e CIAC 3erein &++e&-e'

4ro is 3ere0 !ODIIED in t3e 4o--o5in res+e/ts:&@ T3e r%-in 3o-'in +etitioner -i&0-e 'ire/t- to t3e

"IR 4or t3e (AT on ProBe/t = &n' ee+tin res+on'ent4ro t3e s&i' o0-i&tion is 3ere0 DELETED, &n' in -ie%t3ereo4, B%'ent is 3ere0 ren'ere' t3&t t3e (&-%e#A''e'T& 4or ProBe/t =, &s 'eterine' 0 t3e "IR & 0e +&sse'on to t3e +etitioner, s%0Be/t to s%/3 'e4enses &s it &r&ise 5it3 re&r' to its /o+%t&tion

0@ T3e 'eni&- o4 +etitioners /-&is 4or -iJ%i'&te''&&es is 3ere0 'ade )it-o,t$rej,dice

/@ T3e interest o4 12H +er &nn% &tt&/3e' to t3e%n+&i' 0&-&n/es 4or ProBe/ts 2 &n' = is 3ere0 RED;CED to6H +er &nn%.

In &-- ot3er &s+e/ts, t3e s&i' B%'ent is 3ere0AIR!ED.

SO ORDERED.F

EN(;ET CORPOR"TION* (.R. No. 1311 Petitioner, Present:

# $ers%s # UISU!"ING,J., C3&ir+erson, CARPIO,

CARPIO !ORALES, TINGA, &n'DEP"RTFENT O ENVIRONFENT (ELASCO, )R.,JJ."ND N"T;R"L RESO;RCES4FINES "D&;DIC"TION O"RDand &.(. RE"LTG "ND FININ( Pro%-&te':CORPOR"TION*

Res+on'ents. e0r%&r 1=, 2#########################################################################################


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D E C I S I O N

VEL"SCO* &R.*J.

T3e inst&nt +etition %n'er R%-e 67 o4 t3e R%-es o4 Co%rt see8s t3e

&nn%-ent o4 t3e De/e0er 2, 22 De/ision;1, 2 Reso-%tion

'enie' "en%ets !otion 4or Re/onsi'er&tion.

T-e acts

On )%ne 1, 19>, "en%et &n' ).G. Re&-t entere' into & RAWOP,

53erein ).G. Re&-t 5&s &/8no5-e'e' &s t3e o5ner o4 4o%r inin /-&is

res+e/ti$e- n&e' &s "onito#I, "onito#II, "onito#III, &n' "onito#I(, 5it3 &

tot&- &re& o4 2.676 3e/t&res, sit%&te' in "&r&n& L%8-%8&, Sitio

"&on "&&n, !%ni/i+&-it o4 )ose P&n&ni0&n, C&&rines Norte. T3e

+&rties &-so ee/%te' & S%++-eent&- Areeent;7.T3e

inin /-&is 5ere /o$ere' 0 !PSA A++-i/&tion No. APSA#(#9 Boint-

4i-e' 0 ).G. Re&-t &s /-&io5ner &n' "en%et &s o+er&tor.

In t3e RAWOP, "en%et o0-i&te' itse-4 to +er4e/t t3e ri3ts to t3e

inin /-&is &n'or ot3er5ise &/J%ire t3e inin ri3ts to t3e iner&-

/-&is. Wit3in 2 ont3s 4ro t3e ee/%tion o4 t3e RAWOP, "en%et s3o%-'&-so /&%se t3e e&in&tion o4 t3e inin /-&is 4or t3e +%r+ose o4

'eterinin 53et3er or not t3e &re 5ort3 'e$e-o+in 5it3 re&son&0-e

+ro0&0i-it o4 +ro4it&0-e +ro'%/tion. "en%et %n'ertoo8 &-so to 4%rnis3 ).G.

Re&-t 5it3 & re+ort on t3e e&in&tion, 5it3in & re&son&0-e tie &4ter t3e

/o+-etion o4 t3e e&in&tion. !oreo$er, &-so 5it3in t3e e&in&tion
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+erio', "en%et s3&-- /on'%/t &-- ne/ess&r e+-or&tion in &//or'&n/e 5it3 &

+re+&re' e+-or&tion +ror&. I4 it /3ooses to 'o so &n' 0e4ore t3e

e+ir&tion o4 t3e e&in&tion +erio', "en%et & %n'ert&8e to 'e$e-o+ t3e

inin /-&is %+on 5ritten noti/e to ).G. Re&-t. "en%et %st t3en +-&/e

t3e inin /-&is into /oer/i&- +ro'%/ti$e st&e 5it3in 2 ont3s 4ro

t3e 5ritten noti/e.;6Constit%tion, &n'&tes t3&t ;n92, 4&/t%&- /ontro$ersies &re%s%&-- in$o-$e' in 'e/isions o4 J%&si#B%'i/i&- 0o'ies &n' t3e CA,53i/3 is -i8e5ise t&s8e' to reso-$e J%estions o4 4&/t, 3&s oree-0o5 roo to reso-$e t3e. " in/-%'in J%estions o4 4&/t&on t3e iss%es t3&t & 0e r&ise' in &n &++e&- 4ro J%&si#B%'i/i&- &en/ies to t3e CA, Se/tion =o4 Re$ise' A'inistr&ti$e


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Cir/%-&r No. 1#97 &n' Se/tion = o4 R%-e = e+-i/it- e+&n'e't3e -ist o4 s%/3 iss%es.

A//or'in to Se/tion = o4 R%-e =, ;&


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11.1 Ar0itr&tion

An 'is+%tes, 'i44eren/es or 'is&reeents 0et5een"ENGUET &n' t3e OWNER 5it3 re4eren/e to &nt3in 53&tsoe$er

+ert&inin to t3is Areeent t3&t /&nnot 0e &i/&0- sett-e' 0t3e s3&-- not 0e /&%se o4 &n &/tion o4 &n 8in' 53&tsoe$er in&n /o%rt or &'inistr&ti$e &en/ 0%t s3&--, %+on noti/e o4 one+&rt to t3e ot3er, 0e re4erre' to & "o&r' o4 Ar0itr&tors/onsistin o4 t3ree ?=@ e0ers, one to 0e se-e/te' 0"ENGUET, &not3er to 0e se-e/te' 0 t3e OWNER &n' t3e t3ir' to0e se-e/te' 0 t3e &4oreentione' t5o &r0itr&tors so &++ointe'.

11.2 Co%rt A/tion

No &/tion s3&-- 0e instit%te' in /o%rt &s to &n &tter in

'is+%te &s 3erein&0o$e st&te', e/e+t to en4or/e t3e 'e/ision o4t3e &Borit o4 t3e Ar0itr&tors.;166. C-e&r-, & /ontr&/t%&- sti+%-&tion t3&treJ%ires +rior resort to $o-%nt&r &r0itr&tion 0e4ore t3e +&rties /&n o

'ire/t- to /o%rt is not i--e&- &n' is in 4&/t +roote' 0 t3e St&te. T3%s,

+etitioner /orre/t- /ites se$er&- /&ses 53ere0 &r0itr&tion /-&%ses 3&$e

0een %+3e-' 0 t3is Co%rt.;2192 +re$&i-s o$er RA >6

+res%++oses & /on4-i/t 0et5een t3e t5o -&5s. S%/3 is not t3e /&se 3ere. To

reiter&te, &$&i-ent o4 $o-%nt&r &r0itr&tion 0e4ore resort is &'e to t3e

/o%rts or J%&si#B%'i/i&- &en/ies o4 t3e o$ernent is & $&-i' /ontr&/t%&-

sti+%-&tion t3&t %st 0e &'3ere' to 0 t3e +&rties. As st&te' in Se/s. 6 &n' >

o4 RA >6:Se/tion 6. *earin/ )' court." $art% a66rie7ed b% t-e

+ail,re* ne6lect or re+,sal o+ anot-er to $er+or' ,nder ana6ree'ent in )ritin6 $ro7idin6 +or arbitration 'a%$etition t-e co,rt +or an order directin6 t-at s,c-arbitration $roceed in t-e 'anner $ro7ided +or in s,c-a6ree'ent. i$e '&s noti/e in 5ritin o4 t3e 3e&rin o4 s%/3

&++-i/&tion s3&-- 0e ser$e' eit3er +erson&-- or 0 reistere' &i-%+on t3e +&rt in 'e4&%-t. T-e co,rt s-all -ear t-e $arties*and ,$on bein6 satis+ied t-at t-e 'a!in6 o+ t-ea6ree'ent or s,c- +ail,re to co'$l% t-ere)it- is not iniss,e* s-all 'a!e an order directin6 t-e $arties to$roceed to arbitration in accordance )it- t-e ter's o+t-e a6ree'ent. I+ t-e 'a!in6 o+ t-e a6ree'ent or de+a,ltbe in iss,e t-e co,rt s-all $roceed to s,''aril% -ears,c- iss,e. I+ t-e +indin6 be t-at no a6ree'ent in )ritin6$ro7idin6 +or arbitration )as 'ade* or t-at t-ere is node+a,lt in t-e $roceedin6 t-ere,nder* t-e $roceedin6

s-all be dis'issed. I+ t-e +indin6 be t-at a )ritten$ro7ision +or arbitration )as 'ade and t-ere is a de+a,ltin $roceedin6 t-ere,nder* an order s-all be 'ades,''aril% directin6 t-e $arties to $roceed )it- t-earbitration in accordance )it- t-e ter's t-ereo+.
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Se/tion >. &ta' o" civil action.I4 &n s%it or +ro/ee'in 0e0ro%3t %+on &n iss%e &risin o%t o4 &n &reeent +ro$i'in 4ort3e &r0itr&tion t3ereo4, t3e /o%rt in 53i/3 s%/3 s%it or +ro/ee'inis +en'in, %+on 0ein s&tis4ie' t3&t t3e iss%e in$o-$e' in s%/3s%it or +ro/ee'in is re4er&0-e to &r0itr&tion, s3&-- st& t3e &/tion

or +ro/ee'in %nti- &n &r0itr&tion 3&s 0een 3&' in &//or'&n/e5it3 t3e ters o4 t3e &reeent: Pro$i'e', T3&t t3e &++-i/&nt,4or t3e st& is not in 'e4&%-t in +ro/ee'in 5it3 s%/3 &r0itr&tion.?E+3&sis s%++-ie'.@

In ot3er 5or's, in t3e e$ent & /&se t3&t s3o%-' +ro+er- 0e t3e s%0Be/t

o4 $o-%nt&r &r0itr&tion is erroneo%s- 4i-e' 5it3 t3e /o%rts or J%&si#B%'i/i&-

&en/ies, on otion o4 t3e 'e4en'&nt, t3e /o%rt or J%&si#B%'i/i&- &en/ s3&--

'eterine 53et3er s%/3 /ontr&/t%&- +ro$ision 4or &r0itr&tion is s%44i/ient &n'

e44e/ti$e. I4 in &44ir&ti$e, t3e /o%rt or J%&si#B%'i/i&- &en/ s3&-- t3en or'er

t3e en4or/eent o4 s&i' +ro$ision. "esi'es, in = Corporation v. Court o"

(ppeals, 5e &-re&' r%-e':

In t3is /onne/tion, it 0e&rs stressin t3&t t3e -o5er /o%rt3&s not -ost its B%ris'i/tion o$er t3e /&se. Se/tion > o4 Re+%0-i/A/t No. >6 +ro$i'es t3&t +ro/ee'ins t3erein 3&$e on- 0eenst&e'. A4ter t3e s+e/i&- +ro/ee'in o4 &r0itr&tion 3&s 0een+%rs%e' &n' /o+-ete', t3en t3e -o5er /o%rt & /on4ir t3e&5&r' &'e 0 t3e &r0itr&tor.;22


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o4 t3e -&tter 5it3o%t B%st or -e&- ro%n', s3&-- ret%rn t3e s&e to3i.F T3e +rin/i+-e o4 %nB%st enri/3ent %n'er Arti/-e 22reJ%ires t5o /on'itions: ?1@ t3&t & +erson is 0ene4ite' 5it3o%t &$&-i' 0&sis or B%sti4i/&tion, &n' ?2@ t3&t s%/3 0ene4it is 'eri$e' &t&not3ers e+ense or '&&e.

T-ere is no ,nj,st enric-'ent )-en t-e $erson )-o)ill bene+it -as a 7alid clai' to s,c- bene+it.;2 RAWOP. No

/osts.

SO ORDERED.

ORE" TECHNOLO(IES CO.* (.R. No. 153:1LTD.* Petitioner,

Present:

# $ers%s # UISU!"ING,J., C3&ir+erson, CARPIO, CARPIO !ORALES,HON. "LERTO ". LERF"* in TINGA, &n'-is ca$acit% as Presidin6 &,d6e o+ (ELASCO, )R.,JJ.ranc- 2: o+ Re6ional TrialCo,rt o+ F,ntinl,$a Cit%* andP"CIIC (ENER"L STEEL Pro%-&te':F"N;"CT;RIN(CORPOR"TION,
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38/139

Res+on'ents. )&n%&r >, 2#########################################################################################D E C I S I O N

VEL"SCO* &R.*J.

In o%r B%ris'i/tion, t3e +o-i/ is to 4&$or &-tern&ti$e et3o's o4

reso-$in 'is+%tes, +&rti/%-&r- in /i$i- &n' /oer/i&- 'is+%tes. Ar0itr&tion

&-on 5it3 e'i&tion, /on/i-i&tion, &n' neoti&tion, 0ein ine+ensi$e,

s+ee' &n' -ess 3osti-e et3o's 3&$e -on 0een 4&$ore' 0 t3is Co%rt. T3e

+etition 0e4ore %s +%ts &t iss%e &n &r0itr&tion /-&%se in & /ontr&/t %t%&--

&ree' %+on 0 t3e +&rties sti+%-&tin t3&t t3e 5o%-' s%0it t3ese-$es to

&r0itr&tion in & 4orein /o%ntr. Rerett&0-, inste&' o4 3&stenin t3e

reso-%tion o4 t3eir 'is+%te, t3e +&rties 5ittin- or %n5ittin- +ro-one' t3e

/ontro$ers.

Petitioner *ore& Te/3no-oies Co., Lt'. ?*OGIES@ is & *ore&n

/or+or&tion 53i/3 is en&e' in t3e s%++- &n' inst&--&tion o4 LiJ%e4ie'

Petro-e% G&s ?LPG@ C-in'er &n%4&/t%rin +-&nts, 53i-e +ri$&te

res+on'ent P&/i4i/ Gener&- Stee- !&n%4&/t%rin Cor+. ?PGS!C@ is & 'oesti/

/or+or&tion.

On !&r/3 7, 199>, PGS!C &n' *OGIES ee/%te' & Contr&/t ;1


39/139

On O/to0er 1, 199>, PGS!C entere' into & Contr&/t o4 Le&se;=9#sJ%&re eter

+ro+ert 5it3 & ,=2#sJ%&re eter 5&re3o%se 0%i-'in to 3o%se t3e LPG

&n%4&/t%rin +-&nt. T3e ont3- rent&- 5&s P3P =22,76 /oen/in

on )&n%&r 1, 199 5it3 & 1H &nn%&- in/reent /-&%se. S%0seJ%ent-, t3e

&/3ineries, eJ%i+ent, &n' 4&/i-ities 4or t3e &n%4&/t%re o4 LPG /-in'ers

5ere s3i++e', 'e-i$ere', &n' inst&--e' in t3e C&ron& +-&nt. PGS!C +&i'

*OGIES USD 1,22,.

Ko5e$er, -e&ne' 4ro t3e Certi4i/&te; /ontr&/t.

or t3e re&inin 0&-&n/e o4 USD=6, 4or t3e inst&--&tion &n' initi&-

o+er&tion o4 t3e +-&nt, PGS!C iss%e' t5o +ost'&te' /3e/8s: ?1@ "PI C3e/8

No. =1612 '&te' )&n%&r =, 199 4or P3P ,7, &n' ?2@ "PI C3e/8

No. =161= '&te' !&r/3 =, 199 4or P3P ,7,. ;72 &++ro$e' onDe/e0er 11, 197, /o+ o4 53i/3 is 3ereto &tt&/3e' &sA++en'i AF.

SEC. 2. Interpretation o" odel +a%.##In inter+retin t3e

!o'e- L&5, re&r' s3&-- 0e 3&' to its intern&tion&- oriin &n' tot3e nee' 4or %ni4orit in its inter+ret&tion &n' resort & 0e&'e to t3e travau preparatories&n' t3e re+ort o4 t3eSe/ret&r Gener&- o4 t3e Unite' N&tions Coission on
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52/139

Intern&tion&- Tr&'e L&5 '&te' !&r/3 27, 197 entit-e',Intern&tion&- Coer/i&- Ar0itr&tion: An&-ti/&- Coent&r onDr&4t Tr&'e i'enti4ie' 0 re4eren/e n%0er ACN. 926.F

W3i-e RA 927 5&s +&sse' on- in 2, it nonet3e-ess &++-ies in t3e

inst&nt /&se sin/e it is & +ro/e'%r&- -&5 53i/3 3&s & retro&/ti$e

e44e/t. Li8e5ise, *OGIES 4i-e' its &++-i/&tion 4or &r0itr&tion 0e4ore t3e *CA"

on )%- 1, 199 &n' it is sti-- +en'in 0e/&%se no &r0itr&- &5&r' 3&s et 0een

ren'ere'. T3%s, RA 927 is &++-i/&0-e to t3e inst&nt /&se. We--#sett-e' is

t3e r%-e t3&t +ro/e'%r&- -&5s &re /onstr%e' to 0e &++-i/&0-e to &/tions

+en'in &n' %n'eterine' &t t3e tie o4 t3eir +&ss&e, &n' &re 'eee'

retro&/ti$e in t3&t sense &n' to t3&t etent. As & ener&- r%-e,

t3e retro&/ti$e &++-i/&tion o4 +ro/e'%r&- -&5s 'oes not $io-&te &n +erson&-

ri3ts 0e/&%se no $este' ri3t 3&s et &tt&/3e' nor &risen 4ro t3e.;2. enue and Jurisdiction.Pro/ee'ins 4orre/onition &n' en4or/eent o4 &n &r0itr&tion &reeent or 4or$&/&tions, settin &si'e, /orre/tion or o'i4i/&tion o4 &n &r0itr&-&5&r', &n' &n &++-i/&tion 5it3 & /o%rt 4or &r0itr&tion &ssist&n/e&n' s%+er$ision s3&-- 0e 'eee' &s s+e/i&- +ro/ee'ins &n's3&-- 0e 4i-e' 5it3 t3e Reion&- Tri&- Co%rt ?i@ 53ere &r0itr&tion+ro/ee'ins &re /on'%/te' ?ii@ 53ere t3e &sset to 0e &tt&/3e'or -e$ie' %+on, or t3e &/t to 0e enBoine' is -o/&te' ?iii@ 53ere&n o4 t3e +&rties to t3e 'is+%te resi'es or 3&s 3is +-&/e o40%siness or ?i$@ in t3e N&tion&- )%'i/i&- C&+it&- Reion, &t t3e

o+tion o4 t3e &++-i/&nt.SEC. .


55/139

Se/. 2 in re-&tion to Se/. 7 o4 RA 927 'esin&te' &n' $este' t3e

RTC 5it3 s+e/i4i/ &%t3orit &n' B%ris'i/tion to set &si'e, reBe/t, or $&/&te &

4orein &r0itr&- &5&r' on ro%n's +ro$i'e' %n'er Art. =?2@ o4 t3e UNCITRAL

!o'e- L&5. Se/s. 2 &n' 7 +ro$i'e:

SEC. 2. (pplication o" the


56/139

&5&r' is s%0Be/t to B%'i/i&- re$ie5 0 t3e RTC 53i/3 /&n set &si'e, reBe/t, or

$&/&te it. In t3is sense, 53&t t3is Co%rt 3e-' in Chun/ =u Industries 4Phils.5!

Inc. re-ie' %+on 0 *OGIES is &++-i/&0-e inso4&r &s t3e 4orein &r0itr&-

&5&r's, 53i-e 4in&- &n' 0in'in, 'o not o%st /o%rts o4 B%ris'i/tion sin/e t3ese

&r0itr&- &5&r's &re not &0so-%te &n' 5it3o%t e/e+tions &s t3e &re sti--

B%'i/i&-- re$ie5&0-e. C3&+ter > o4 RA 927 3&s &'e it /-e&r t3&t &-- &r0itr&-

&5&r's, 53et3er 'oesti/ or 4orein, &re s%0Be/t to B%'i/i&- re$ie5 on

s+e/i4i/ ro%n's +ro$i'e' 4or.?5J (ro,nds +or j,dicial re7ie) di++erent in do'estic and +orei6n

arbitral a)ards

T3e 'i44eren/es 0et5een & 4in&- &r0itr&- &5&r' 4ro &n intern&tion&- or

4orein &r0itr&- tri0%n&- &n' &n &5&r' i$en 0 & -o/&- &r0itr&- tri0%n&- &re

t3e s+e/i4i/ ro%n's or /on'itions t3&t $est B%ris'i/tion o$er o%r /o%rts tore$ie5 t3e &5&r's.

or 4orein or intern&tion&- &r0itr&- &5&r's 53i/3 %st 4irst 0e

/on4ire' 0 t3e RTC, t3e ro%n's 4or settin &si'e, reBe/tin or $&/&tin t3e

&5&r' 0 t3e RTC &re +ro$i'e' %n'er Art. =?2@ o4 t3e UNCITRAL !o'e- L&5.

or 4in&- 'oesti/ &r0itr&- &5&r's, 53i/3 &-so nee' /on4ir&tion 0 t3e

RTC +%rs%&nt to Se/. 2= o4 RA >6;


57/139

T3e -osin +&rt 53o &++e&-s 4ro t3e B%'ent o4 t3e/o%rt /on4irin &n &r0itr&- &5&r' s3&-- 0e reJ%ire' 0 t3e&++e--&te /o%rt to +ost & /o%nter0on' ee/%te' in 4&$or o4 t3e+re$&i-in +&rt eJ%&- to t3e &o%nt o4 t3e &5&r' in &//or'&n/e5it3 t3e r%-es to 0e +ro%-&te' 0 t3e S%+ree Co%rt.

T3ere&4ter, t3e CA 'e/ision & 4%rt3er 0e &++e&-e' or re$ie5e'

0e4ore t3is Co%rt t3ro%3 & +etition 4or re$ie5 %n'er R%-e 7 o4 t3e R%-es o4

Co%rt.

P(SFC -as re'edies to $rotect its interests

T3%s, 0&se' on t3e 4oreoin 4e&t%res o4 RA 927, PGS!C %st s%0it

to t3e 4orein &r0itr&tion &s it 0o%n' itse-4 t3ro%3 t3e s%0Be/t

/ontr&/t. W3i-e it & 3&$e isi$ins on t3e 4orein &r0itr&tion 'one

in *ore& 0 t3e *CA", it 3&s &$&i-&0-e ree'ies %n'er RA 927. Its interests

&re '%- +rote/te' 0 t3e -&5 53i/3 reJ%ires t3&t t3e &r0itr&- &5&r' t3&t &

0e ren'ere' 0 *CA" %st 0e /on4ire' 3ere 0 t3e RTC 0e4ore it /&n 0e

en4or/e'.

Wit3 o%r 'isJ%isition &0o$e, +etitioner is /orre/t in its /ontention t3&t

&n &r0itr&tion /-&%se, sti+%-&tin t3&t t3e &r0itr&- &5&r' is 4in&- &n' 0in'in,

'oes not o%st o%r /o%rts o4 B%ris'i/tion &s t3e intern&tion&- &r0itr&- &5&r',

t3e &5&r' o4 53i/3 is not &0so-%te &n' 5it3o%t e/e+tions, is sti-- B%'i/i&--re$ie5&0-e %n'er /ert&in /on'itions +ro$i'e' 4or 0 t3e UNCITRAL !o'e- L&5

on ICA &s &++-ie' &n' in/or+or&te' in RA 927.

in&--, it %st 0e note' t3&t t3ere is not3in in t3e s%0Be/t Contr&/t

53i/3 +ro$i'es t3&t t3e +&rties & 'is+ense 5it3 t3e &r0itr&tion /-&%se.

;nilateral rescission i'$ro$er and ille6al

K&$in r%-e' t3&t t3e &r0itr&tion /-&%se o4 t3e s%0Be/t /ontr&/t is $&-i'

&n' 0in'in on t3e +&rties, &n' not /ontr&r to +%0-i/ +o-i/ /onseJ%ent-,

0ein 0o%n' to t3e /ontr&/t o4 &r0itr&tion, & +&rt & not %ni-&ter&--

res/in' or terin&te t3e /ontr&/t 4or 53&te$er /&%se 5it3o%t 4irst resortin

to &r0itr&tion.


58/139

W3&t t3is Co%rt 3e-' in $niversit' o" the Philippines v. De +os

(n/eles;>


59/139

Iss,e on o)ners-i$ o+ $lant $ro$er +or arbitration

Petitioner &ss&i-s t3e CA r%-in t3&t t3e iss%e +etitioner r&ise' on

53et3er t3e tot&- /ontr&/t +ri/e o4 USD 1,7=, 5&s 4or t3e 53o-e +-&nt

&n' its inst&--&tion is 0eon' t3e &0it o4 & Petition 4or Certior&ri.

Petitioners +osition is %nten&0-e.

It is sett-e' t3&t J%estions o4 4&/t /&nnot 0e r&ise' in &n oriin&- &/tion

4or /ertior&ri.;9


60/139

SEC. 2. 0rant o" interi easure o" Protection.?&@ It isnot inco'$atible )it- an arbitration a6ree'ent +or a$art% to reB,est* be+ore constit,tion o+ t-e trib,nal* +ro'a Co,rt to 6rant s,c- 'eas,re. A4ter /onstit%tion o4 t3e&r0itr&- tri0%n&- &n' '%rin &r0itr&- +ro/ee'ins, & reJ%est 4or &n

interi e&s%re o4 +rote/tion, or o'i4i/&tion t3ereo4, & 0e&'e 5it3 t3e &r0itr&- or to t-e e#tent t-at t-e arbitraltrib,nal -as no $o)er to act or is ,nable to acte++ecti7it%* t-e reB,est 'a% be 'ade )it- t-e Co,rt. T3e&r0itr&- tri0%n&- is 'eee' /onstit%te' 53en t3e so-e &r0itr&toror t3e t3ir' &r0itr&tor, 53o 3&s 0een noin&te', 3&s &//e+te't3e noin&tion &n' 5ritten /o%ni/&tion o4 s&i' noin&tion&n' &//e+t&n/e 3&s 0een re/ei$e' 0 t3e +&rt &8in t3ereJ%est.

?0@ T3e 4o--o5in r%-es on interi or +ro$ision&- re-ie4 s3&--

0e o0ser$e':An +&rt & reJ%est t3&t +ro$ision&- re-ie4 0e r&nte'

&&inst t3e &'$erse +&rt.S%/3 re-ie4 & 0e r&nte':?i@ to $re7ent irre$arable loss or inj,r%?ii@ to +ro$i'e se/%rit 4or t3e +er4or&n/e o4 &n

o0-i&tion?iii@ to +ro'%/e or +reser$e &n e$i'en/e or

?i$@ to /o+e- &n ot3er &++ro+ri&te &/t or oission.?/@ T3e or'er r&ntin +ro$ision&- re-ie4 & 0e

/on'itione' %+on t3e +ro$ision o4 se/%rit or &n &/t or oissions+e/i4ie' in t3e or'er.

?'@ Interi or +ro$ision&- re-ie4 is reJ%este' 0 5ritten

&++-i/&tion tr&nsitte' 0 re&son&0-e e&ns to t3e Co%rt or&r0itr&- tri0%n&- &s t3e /&se & 0e &n' t3e +&rt &&inst 53ot3e re-ie4 is so%3t, 'es/ri0in in &++ro+ri&te 'et&i- t3e +re/isere-ie4, t3e +&rt &&inst 53o t3e re-ie4 is reJ%este', t3e

ro%n's 4or t3e re-ie4, &n' t3e e$i'en/e s%++ortin t3e reJ%est.?e@ T-e order s-all be bindin6 ,$on t-e $arties.?4@ Eit3er +&rt & &++- 5it3 t3e Co%rt 4or &ssist&n/e in

i+-eentin or en4or/in &n interi e&s%re or'ere' 0 &n&r0itr&- tri0%n&-.


61/139

?@ A +&rt 53o 'oes not /o+- 5it3 t3e or'er s3&-- 0e-i&0-e 4or &-- '&&es res%-tin 4ro non/o+-i&n/e, in/-%'in &--e+enses, &n' re&son&0-e &ttornes 4ees, +&i' in o0t&inin t3eor'ers B%'i/i&- en4or/eent. ?E+3&sis o%rs.@

Art. 1>?2@ o4 t3e UNCITRAL !o'e- L&5 on ICA 'e4ines &n interi

e&s%reF o4 +rote/tion &s:

(rticle 1@. Po%er o" ar)itral tri)unal to order interi easures ?2@ An interi' 'eas,reis &n te+or&r e&s%re, 53et3er int3e 4or o4 &n &5&r' or in &not3er 4or, 0 53i/3, &t &n tie

+rior to t3e iss%&n/e o4 t3e &5&r' 0 53i/3 t3e 'is+%te is 4in&--'e/i'e', t3e &r0itr&- tri0%n&- or'ers & +&rt to:4a5 !&int&in or restore t3e st&t%s J%o +en'in 'eterin&tion o4t3e 'is+%te4)5T&8e &/tion t3&t 5o%-' +re$ent, or re4r&in 4ro t&8in &/tiont3&t is -i8e- to /&%se, /%rrent or iinent 3&r or +reB%'i/e tot3e &r0itr&- +ro/ess itse-44c5 Pro$i'e & e&ns o4 +reser$in &ssets o%t o4 53i/3 &

s%0seJ%ent &5&r' & 0e s&tis4ie' or4d5 Preser$e e$i'en/e t3&t & 0e re-e$&nt &n' &teri&- to t3ereso-%tion o4 t3e 'is+%te.

Art. 1> ) o4 UNCITRAL !o'e- L&5 on ICA &-so r&nts /o%rts +o5er &n'

B%ris'i/tion to iss%e interi e&s%res:

(rticle 1@ J. Court-ordered interi easures

A /o%rt s3&-- 3&$e t3e s&e +o5er o4 iss%in &n interi

e&s%re in re-&tion to &r0itr&tion +ro/ee'ins, irres+e/ti$e o453et3er t3eir +-&/e is in t3e territor o4 t3is St&te, &s it 3&s inre-&tion to +ro/ee'ins in /o%rts. T3e /o%rt s3&-- eer/ise s%/3+o5er in &//or'&n/e 5it3 its o5n +ro/e'%res in /onsi'er&tion o4t3e s+e/i4i/ 4e&t%res o4 intern&tion&- &r0itr&tion.


62/139

In t3e re/ent 26 /&se o4 Trans"ield Philippines! Inc. v. +u>on *'dro

Corporation, 5e 5ere e+-i/it t3&t e$en t3e +en'en/ o4 &n &r0itr&-

+ro/ee'in 'oes not 4ore/-ose resort to t3e /o%rts 4or +ro$ision&- re-ie4s.F We

e+-i/&te' t3is 5&:As & 4%n'&ent&- +oint, t3e +en'en/ o4 &r0itr&- +ro/ee'ins'oes not 4ore/-ose resort to t3e /o%rts 4or +ro$ision&- re-ie4s. T3eR%-es o4 t3e ICC, 53i/3 o$erns t3e +&rties &r0itr&- 'is+%te,&--o5s t3e &++-i/&tion o4 & +&rt to & B%'i/i&- &%t3orit 4or interior /onser$&tor e&s%res. Li8e5ise, Se/tion 1 o4 Re+%0-i/ A/t?R.A.@ No. >6 ?T3e Ar0itr&tion L&5@ re/onies t3e ri3ts o4 &n+&rt to +etition t3e /o%rt to t&8e e&s%res to s&4e%&r' &n'or/onser$e &n &tter 53i/3 is t3e s%0Be/t o4 t3e 'is+%te in&r0itr&tion. In &''ition, R.A. 927, ot3er5ise 8no5n &s t3e

A-tern&ti$e Dis+%te Reso-%tion A/t o4 2,F &--o5s t3e 4i-in o4+ro$ision&- or interi e&s%res 5it3 t3e re%-&r /o%rts 53ene$ert3e &r0itr&- tri0%n&- 3&s no +o5er to &/t or to &/t e44e/ti$e-. ;76 P-&nters en-iste' 5it3

ONDI!CO &n' t3e rest 0e-on to "AP#!PC 53i/3 'i' not Boin t3e -&5s%it.

Res+on'ents Ki'e/o S%&r !i--in Co., In/. ?Ki'e/o@ &n' Oro/ S%&r

!i--in Co, In/. ?OSCO@ &re s%&r /entr&-s en&e' in rin'in &n' i--in

s%&r/&ne 'e-i$ere' to t3e 0 n%ero%s in'i$i'%&- s%&r +-&nters, 53o

& or & not 0e e0ers o4 &n &sso/i&tion s%/3 &s +etitioners.

Petitioners &ssert t3&t t3e re-&tions3i+ 0et5een res+on'ents &n' t3e

in'i$i'%&- s%&r +-&nters is o$erne' 0 i--in /ontr&/ts. To 0%ttress t3is

/-&i, +etitioners +resente' re+resent&ti$e s&+-es o4 t3e i--in /ontr&/ts.;=6 &--o5s t3e

&reeent to &r0itr&te to 0e sine' 0 & re+resent&ti$e, t3e +rin/i+&- is sti--

t3e one 53o 3&s t3e ri3t to 'e&n' &r0itr&tion.

In'ee', R%-e =, Se/tion 2 o4 t3e R%-es o4 Co%rt reJ%ires s%its to 0e

0ro%3t in t3e n&e o4 t3e re&- +&rt in interest, to 5it:

Se/. 2. P&rties in interest. A re&- +&rt in interest is t3e+&rt 53o st&n's to 0e 0ene4ite' or inB%re' 0 t3e B%'ent int3e s%it, or t3e +&rt entit-e' to t3e &$&i-s o4 t3e s%it. Un-essot3er5ise &%t3orie' 0 -&5 or t3ese R%-es, e$er &/tion %st 0e+rose/%te' or 'e4en'e' in t3e n&e o4 t3e re&- +&rt in interest.


75/139

We 3e-' in Oco v. +i)arin/;1s

bene+it. ?e+3&sis o%rs@

In $' v. Court o" (ppeals,;17


76/139

ren'ere' soe ser$i/e on 0e3&-4 o4 t3eir +rin/i+&-s. To J%ote 4ro t3&t

'e/ision:

V;Petitioners< &re ere &ents o4 t3e o5ners o4 t3e -&n' s%0Be/to4 t3e s&-e. As &ents, t3e on- ren'er soe ser$i/e or 'osoet3in in re+resent&tion or on 0e3&-4 o4 t3eir +rin/i+&-s. T-erenderin6 o+ s,c- ser7ice did not 'a!e t-e' $arties tot-e contractso4 s&-e ee/%te' in 0e3&-4 o4 t3e -&tter. Sin/e &/ontr&/t & 0e $io-&te' on- 0 t3e +&rties t3ereto &s &&inste&/3 ot3er, t-e real $arties4in4interest* eit-er as $lainti++or de+endant* in an action ,$on t-at contract ',st*6enerall%* eit-er be $arties to said contract. ?e+3&sis &n'5or's in 0r&/8ets o%rs@

T3e &in /&%se o4 &/tion o4 +etitioners in t3eir reJ%est 4or &r0itr&tion

5it3 t3e RTC is t3e &--ee' $io-&tion o4 t3e /-&%se in t3e i--in /ontr&/ts

in$o-$in t3e +ro+ortion&te s3&rin in t3e +ro/ee's o4 t3e 3&r$est.

Petitioners essenti&-- 'e&n' t3&t res+on'ents in/re&se t3e s3&re o4 t3e

e0er P-&nters to 66H to eJ%&-ie t3eir sit%&tion 5it3 t3ose o4 t3e non#

e0er P-&nters. (eri-, 4ro +etitioners o5n &--e&tions, t3e +&rt 53o

5o%-' 0e inB%re' or 0ene4ite' 0 & 'e/ision in t3e &r0itr&tion +ro/ee'ins 5i--

0e t3e e0er P-&nters in$o-$e' &n' not $etitioners. In s%, +etitioners

&re not t3e re&- +&rties in interest in t3e +resent /&se.

Ass%in +etitioners 3&' +ro+er- 0ro%3t t3e /&se in t3e n&e o4

t3eir e0ers 53o 3&' eistin i--in /ontr&/ts 5it3 res+on'ents,

+etitioners %st sti-- +ro$e t3&t t3e 5ere in'ee' &%t3orie' 0 t3e s&i'

e0ers to instit%te &n &/tion 4or &n' on t3e e0ers 0e3&-4. In t3e s&e

&nner t3&t &n o44i/er o4 t3e /or+or&tion /&nnot 0rin &/tion in 0e3&-4 o4 &/or+or&tion %n-ess it is /-ot3e' 5it3 & 0o&r' reso-%tion &%t3oriin &n o44i/er

to 'o so, &n &%t3ori&tion 4ro t3e in'i$i'%&- e0er +-&nter is & sine 6ua

non4or t3e &sso/i&tion or &n o4 its o44i/ers to 0rin &n &/tion 0e4ore t3e

/o%rt o4 -&5. T3e ere 4&/t t3&t +etitioners 5ere or&nie' 4or t3e +%r+ose

o4 &'$&n/in t3e interests &n' 5e-4&re o4 t3eir e0ers 'oes not ne/ess&ri-


77/139

e&n t3&t +etitioners 3&$e t3e &%t3orit to re+resent t3eir e0ers in -e&-

+ro/ee'ins, in/-%'in t3e +resent &r0itr&tion +ro/ee'ins.

As 5e see it, +etitioners 3&' no intention to -iti&te t3e /&se in &

re+resent&ti$e /&+&/it, &s t3e /onten'. A-- t3e +-e&'ins 4ro t3e RTC to

t3is Co%rt 0e-ie t3is /-&i. Un'er Se/tion = o4 R%-e =, 53ere t3e &/tion is

&--o5e' to 0e +rose/%te' 0 & re+resent&ti$e, t3e 0ene4i/i&r s3&-- 0e

in/-%'e' in t3e tit-e o4 t3e /&se &n' s3&-- 0e 'eee' to 0e t3e re&- +&rt in

interest. As re+e&te'- +ointe' o%t e&r-ier, t3e in'i$i'%&- P-&nters 5ere not

e$en i+-e&'e' &s +&rties to t3is /&se. In &''ition, +etitioners nee' &

+o5er#o4#&ttorne to re+resent t3e P-&nters 53et3er in t3e -&5s%it or to

'e&n' &r0itr&tion.;16


79/139

s3&re in t3e +ro/ee's o4 t3e 3&r$est to t3e P-&nters. In ot3er 5or's, it is &

sti+%-&tion e&nt to 0ene4it t3e P-&nters. E$en t3e 1H s3&re to 0e i$en to

t3e &sso/i&tion &s &i' 'oes not re'o%n' to t3e 0ene4it o4 t3e &sso/i&tion 0%t

is inten'e' to 0e %se' 4or its e0er P-&nters. Not on- t3&t, it is e+-i/it

t3&t s&i' s3&re re$erts 0&/8 to res+on'ent s%&r /entr&-s i4 t3e /ontr&/tin

P-&nter is not &44i-i&te' 5it3 &n re/onie' &sso/i&tion.

To 0e /onsi'ere' &pour autrui+ro$ision, &n in/i'ent&- 0ene4it or

interest, 53i/3 &not3er +erson &ins, is not s%44i/ient. T3e /ontr&/tin

+&rties %st 3&$e /-e&r- &n' 'e-i0er&te- /on4erre' & 4&$or %+on & t3ir'

+erson.;1


80/139

Petitioner,

# versus#

S"N ERN"NDO RE("L"

TR"DIN(* INC.*

Res+on'ent.

Present

CARPIO,J., Chairperson,

NACKURA,

PERALTA,

A"AD, &n'

!ENDOMA,JJ.

Pro',l6ated

)&n%&r =1, 211

# # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # #

DECISION

PER"LT"*J.:

"e4ore %s is & +etition 4or re$ie5 on certiorarisee8in to re$erse &n'

set &si'e t3e De/ision;1


81/139

On )%ne 1, 199, res+on'ent S&n ern&n'o Re&-& Tr&'in, In/. 4i-e'

5it3 t3e Reion&- Tri&- Co%rt ?RTC@ o4 !&8&ti Cit & Co+-&int 4or Res/ission

o4 Contr&/t 5it3 D&&es;= &n' t3&t +&ent

5o%-' 0e 0 &n Irre$o/&0-e Letter o4 Cre'it +&&0-e &t si3t, to 0e o+ene'

%+on +etitioners &'$i/e. Petitioner, &s se--er, 4&i-e' to /o+- 5it3 its

o0-i&tions %n'er t3e /ontr&/t, 'es+ite 'e&n's 4ro res+on'ent, t3%s, t3e

-&tter +r&e' 4or res/ission o4 t3e /ontr&/t &n' +&ent o4 '&&es.

On )%- 2, 199, +etitioner 4i-e' & !otion to DisissS%s+en'

Pro/ee'ins &n' To Re4er Contro$ers to (o-%nt&r Ar0itr&tion,;


82/139

AR"ITRATION

An 'is+%te 53i/3 t3e "%er &n' Se--er & not 0e &0-e to

sett-e 0 %t%&- &reeent s3&-- 0e sett-e' 0 &r0itr&tion in t3eCit o4 Ne5 Yor80e4ore t3e Aeri/&n Ar0itr&tion Asso/i&tion. T3e

Ar0itr&tion A5&r' s3&-- 0e 4in&- &n' 0in'in on 0ot3 +&rties.;7 o4 t3e

Ar0itr&tion L&5 to s%/3 &n &reeent 5o%-' res%-t in 'isre&r'in t3e ot3er

se/tions o4 t3e s&e -&5 &n' ren'ere' t3e %se-ess &n' ere s%r+-%s&es.

Petitioner 4i-e' its !otion 4or Re/onsi'er&tion, 53i/3 t3e RTC 'enie' in

&n Or'er;16 ?t3e Ar0itr&tion L&5@ &-so e+ress- &%t3orie' t3e &r0itr&tion

o4 'oesti/ 'is+%tes. T3e CA 4o%n' error in t3e RTCs 3o-'in t3&t Se/tion >

o4 R.A. No. >6 5&s in&++-i/&0-e to &r0itr&tion /-&%se si+- 0e/&%se t3e

/-&%se 4&i-e' to /o+- 5it3 t3e reJ%ireents +res/ri0e' 0 t3e -&5. T3e CA

4o%n' t3&t t3ere 5&s not3in in t3e Ci$i- Co'e, or R.A. No. >6, t3&t reJ%ire

t3&t &r0itr&tion +ro/ee'ins %st 0e /on'%/te' on- in t3e P3i-i++ines &n'

t3e &r0itr&tors s3o%-' 0e P3i-i++ine resi'ents. It &-so 4o%n' t3&t t3e RTC
http://sc.judiciary.gov.ph/jurisprudence/2011/january2011/175404.htm#_ftn10http://sc.judiciary.gov.ph/jurisprudence/2011/january2011/175404.htm#_ftn10


85/139

r%-in e44e/ti$e- in$&-i'&te' not on- t3e 'is+%te' &r0itr&tion /-&%se, 0%t &--

ot3er &reeents 53i/3 +ro$i'e 4or 4orein &r0itr&tion. T3e CA 'i' not 4in'

i--e&- or &&inst +%0-i/ +o-i/ t3e &r0itr&tion /-&%se so &s to ren'er it n%--

&n' $oi' or ine44e/t%&-.

Not5it3st&n'in s%/3 4in'ins, t3e CA sti-- 3e-' t3&t t3e /&se /&nnot 0e

0ro%3t %n'er t3e Ar0itr&tion L&5 4or t3e +%r+ose o4 s%s+en'in t3e

+ro/ee'ins 0e4ore t3e RTC, sin/e in its !otion to DisissS%s+en'

+ro/ee'ins, +etitioner &--ee', &s one o4 t3e ro%n's t3ereo4, t3&t t3e

s%0Be/t /ontr&/t 0et5een t3e +&rties 'i' not eist or it 5&s in$&-i' t3&t t3e

s&i' /ontr&/t 0e&rin t3e &r0itr&tion /-&%se 5&s ne$er /ons%&te' 0 t3e

+&rties, t3%s, it 5&s +ro+er t3&t s%/3 iss%e 0e 4irst reso-$e' 0 t3e /o%rtt3ro%3 &n &++ro+ri&te tri&- t3&t t3e iss%e in$o-$e' & J%estion o4 4&/t t3&t

t3e RTC s3o%-' 4irst reso-$e. Ar0itr&tion is not +ro+er 53en one o4 t3e

+&rties re+%'i&te' t3e eisten/e or $&-i'it o4 t3e /ontr&/t.

Petitioners otion 4or re/onsi'er&tion 5&s 'enie' in & Reso-%tion

'&te' No$e0er 1=, 26.

Ken/e, t3is +etition.

Petitioner &--ees t3&t t3e CA /oitte' &n error o4 -&5 in r%-in t3&t

&r0itr&tion /&nnot +ro/ee' 'es+ite t3e 4&/t t3&t: ?&@ it 3&' r%-e', in its

&ss&i-e' 'e/ision, t3&t t3e &r0itr&tion /-&%se is $&-i', en4or/e&0-e &n' 0in'in

on t3e +&rties ?0@ t3e /&se o4 0on>ales v. Clia inin/ +td.;11


86/139

'e4enses &re in/onsistent 5it3 e&/3 ot3er &n' ?'@ t3e /o+-&int 4i-e' 0

res+on'ent 5it3 t3e tri&- /o%rt is +re&t%re.

Petitioner &--ees t3&t t3e CA &'o+te' in/onsistent +ositions 53en it

4o%n' t3e &r0itr&tion /-&%se 0et5een t3e +&rties &s $&-i' &n' en4or/e&0-e

&n' et in t3e s&e 0re&t3 'e/ree' t3&t t3e &r0itr&tion /&nnot +ro/ee'

0e/&%se +etitioner &ss&i-e' t3e eisten/e o4 t3e entire &reeent /ont&inin

t3e &r0itr&tion /-&%se. Petitioner /-&is t3e in&++-i/&0i-it o4 t3e

/ite' 0on>ales /&se 'e/i'e' in 27, 0e/&%se in t3e +resent /&se, it 5&s

res+on'ent 53o 3&' 4i-e' t3e /o+-&int 4or res/ission &n' '&&es 5it3 t3e

RTC, 53i/3 0&se' its /&%se o4 &/tion &&inst +etitioner on t3e &--ee'

&reeent '&te' )%- 11, 26 0et5een t3e +&rties &n' t3&t t3e s&e&reeent /ont&ine' t3e &r0itr&tion /-&%se so%3t to 0e en4or/e' 0

+etitioner in t3is /&se. T3%s, 53et3er +etitioner &ss&i-s t3e en%ineness &n'

'%e ee/%tion o4 t3e &reeent, t3e 4&/t re&ins t3&t t3e &reeent s%e'

%+on +ro$i'es 4or &n &r0itr&tion /-&%se t3&t res+on'ent /&nnot %se t3e

+ro$isions 4&$or&0-e to 3i &n' /o+-ete- 'isre&r' t3ose t3&t &re

%n4&$or&0-e, s%/3 &s t3e &r0itr&tion /-&%se.

Petitioner /onten's t3&t &s t3e 'e4en'&nt in t3e RTC, it +resente' t5o

&-tern&ti$e 'e4enses, i.e., t3e +&rties 3&' not entere' into &n &reeent

%+on 53i/3 res+on'ent &s +-&inti44 /&n s%e %+on &n', &ss%in t3&t s%/3

&reeent eiste', t3ere 5&s &n &r0itr&tion /-&%se t3&t s3o%-' 0e en4or/e',

t3%s, t3e 'is+%te %st 4irst 0e s%0itte' to &r0itr&tion 0e4ore &n &/tion /&n

0e instit%te' in /o%rt. Petitioner &r%es t3&t %n'er Se/tion 1?B@ o4 R%-e 16 o4

t3e R%-es o4 Co%rt, in/-%'e' &s & ro%n' to 'isiss & /o+-&int is 53en &

/on'ition +re/e'ent 4or 4i-in t3e /o+-&int 3&s not 0een /o+-ie' 5it3 &n'

t3&t s%0ission to &r0itr&tion 53en s%/3 3&s 0een &ree' %+on is one s%/3/on'ition +re/e'ent. Petitioner s%0its t3&t t3e +ro/ee'ins in t3e RTC

%st 0e 'isisse', or &t -e&st s%s+en'e', &n' t3e +&rties 0e or'ere' to

+ro/ee' 5it3 &r0itr&tion.

On !&r/3 12, 2>, +etitioner 4i-e' & !&ni4est&tion;12


87/139

27 0on>alesr%-in 3&' 0een o'i4ie' %+on & otion 4or re/onsi'er&tion

'e/i'e' in 2> t3&t t3e CA 'e/ision -ost its -e&- 0&sis, 0e/&%se it 3&' 0een

r%-e' t3&t t3e &r0itr&tion &reeent /&n 0e i+-eente' not5it3st&n'in

t3&t one o4 t3e +&rties t3ereto re+%'i&te' t3e /ontr&/t 53i/3 /ont&ine' s%/3

&reeent 0&se' on t3e 'o/trine o4 se+&r&0i-it.

In its Coent, res+on'ent &r%es t3&t certiorari %n'er R%-e 67 is not

t3e ree' &&inst &n or'er 'enin & !otion to DisissS%s+en'

Pro/ee'ins &n' To Re4er Contro$ers to (o-%nt&r Ar0itr&tion. It /-&is t3&t

t3e Ar0itr&tion L&5 53i/3 +etitioner in$o8e' &s 0&sis 4or its !otion

+res/ri0e', %n'er its Se/tion 29, & ree', i.e., &++e&- 0 & +etition 4or

re$ie5 oncertiorari %n'er R%-e 7. Res+on'ent /onten's t3&tt3e 0on>ales /&se, 53i/3 5&s 'e/i'e' in 2>, is in&++-i/&0-e in t3is /&se,

es+e/i&-- &s to t3e 'o/trine o4 se+&r&0i-it en%n/i&te' t3erein. Res+on'ent

&r%es t3&t e$en i4 t3e eisten/e o4 t3e /ontr&/t &n' t3e &r0itr&tion /-&%se is

/on/e'e', t3e 'e/isions o4 t3e RTC &n' t3e CA 'e/-inin re4err&- o4 t3e

'is+%te 0et5een t3e +&rties to &r0itr&tion 5o%-' sti-- 0e /orre/t. T3is is so

0e/&%se res+on'ents /o+-&int 4i-e' in Ci$i- C&se No. 9#1=>6 +resents t3e

+rin/i+&- iss%e o4 53et3er %n'er t3e 4&/ts &--ee' in t3e /o+-&int,

res+on'ent is entit-e' to res/in' its /ontr&/t 5it3 +etitioner &n' 4or t3e -&tter

to +& '&&es t3&t s%/3 iss%e /onstit%tes & B%'i/i&- J%estion or one t3&t

reJ%ires t3e eer/ise o4 B%'i/i&- 4%n/tion &n' /&nnot 0e t3e s%0Be/t o4

&r0itr&tion.

Res+on'ent /onten's t3&t Se/tion o4 t3e R%-es o4 Co%rt, 53i/3

&--o5e' & 'e4en'&nt to &'o+t in t3e s&e &/tion se$er&- 'e4enses,

&-tern&ti$e- or 3+ot3eti/&--, e$en i4 s%/3 'e4enses &re in/onsistent 5it3

e&/3 ot3er re4ers to &--e&tions in t3e +-e&'ins, s%/3 &s /o+-&int,/o%nter/-&i, /ross#/-&i, t3ir'#+&rt /o+-&int, &ns5er, 0%t not to & otion

to 'isiss. in&--, res+on'ent /-&is t3&t +etitioners &r%ent is

+reise' on t3e eisten/e o4 & /ontr&/t 5it3 res+on'ent /ont&inin &

+ro$ision 4or &r0itr&tion. Ko5e$er, its re-i&n/e on t3e /ontr&/t, 53i/3 it

re+%'i&tes, is in&++ro+ri&te.


88/139


89/139

+etition 4or certiorari%n'er R%-e 67 &s & o'e o4 &++e&- 4ro &n RTC Or'er

'ire/tin t3e +&rties to &r0itr&tion.

We 4in' t3e /ite' /&se not in +oint.

In t3e 0on>ales /&se, C-iAri/o 4i-e' 0e4ore t3e RTC o4

!&8&ti & +etition to /o+e- &r0itr&tion %n'er R.A. No. >6, +%rs%&nt to t3e

&r0itr&tion /-&%se 4o%n' in t3e A''en'% Contr&/t it entere' 5it3 Gon&-es.

)%'e Os/&r Piente- o4 t3e RTC o4 !&8&ti t3en 'ire/te' t3e +&rties to

&r0itr&tion +ro/ee'ins. Gon&-es 4i-e' & +etition 4or certiorari 5it3

Us /onten'in t3&t )%'e Piente- &/te' 5it3 r&$e &0%se o4 'is/retion inie'i&te- or'erin t3e +&rties to +ro/ee' 5it3 &r0itr&tion 'es+ite t3e

+ro+er, $&-i' &n' tie- r&ise' &r%ent in 3is Ans5er 5it3 /o%nter/-&i

t3&t t3e A''en'% Contr&/t /ont&inin t3e &r0itr&tion /-&%se 5&s n%-- &n'

$oi'. C-iAri/o &ss&i-e' t3e o'e o4 re$ie5 &$&i-e' o4 0 Gon&-es,

/itin Se/tion 29 o4 R.A. No. >6 /onten'in t3&tcertiorari%n'er R%-e 67 /&n

0e &$&i-e' o4 on- i4 t3ere 5&s no &++e&- or &n &'eJ%&te ree' in t3e

or'in&r /o%rse o4 -&5 t3&t R.A. No. >6 +ro$i'es 4or &n &++e&- 4ro s%/3

or'er. We t3en r%-e' t3&t Gon&-es +etition 4or certioraris3o%-' 0e

'isisse' &s it 5&s 4i-e' in -ie% o4 &n &++e&- 0 certiorari53i/3 5&s t3e

+res/ri0e' ree' %n'er R.A. No. >6 &n' t3e +etition 5&s 4i-e' 4&r 0eon'

t3e re-eent&r +erio'.

We 4o%n' t3&t Gon&-es +etition 4or certiorarir&ises & J%estion o4

-&5, 0%t not & J%estion o4 B%ris'i/tion t3&t )%'e Piente- &/te' in

&//or'&n/e 5it3 t3e +ro/e'%re +res/ri0e' in R.A. No. >6 53en 3e or'ere'

Gon&-es to +ro/ee' 5it3 &r0itr&tion &n' &++ointe' & so-e &r0itr&tor &4ter&8in t3e 'eterin&tion t3&t t3ere 5&s in'ee' &n &r0itr&tion &reeent. It

3&' 0een 3e-' t3&t &s -on &s & /o%rt &/ts 5it3in its B%ris'i/tion &n' 'oes not

r&$e- &0%se its 'is/retion in t3e eer/ise t3ereo4, &n s%++ose' error

/oitte' 0 it 5i-- &o%nt to not3in ore t3&n &n error o4 B%'ent


90/139

re$ie5&0-e 0 & tie- &++e&- &n' not &ss&i-&0-e 0 & s+e/i&- /i$i- &/tion

o4 certiorari.;1 o4 t3e Ar0itr&tion L&5 to s%/3

&n &reeent 5o%-' res%-t in t3e 'isre&r' o4 t3e &4ore#/ite' se/tions o4 t3eAr0itr&tion L&5 &n' ren'er t3e %se-ess &n' ere s%r+-%s&es.F Ko5e$er,

not5it3st&n'in t3e 4in'in t3&t &n &r0itr&tion &reeent eiste', t3e RTC

'enie' +etitioners otion &n' 'ire/te' +etitioner to 4i-e &n &ns5er.

In +a


91/139

We no5 +ro/ee' to t3e s%0st&nti$e iss%e o4 53et3er t3e CA erre' in

4in'in t3&t t3is /&se /&nnot 0e 0ro%3t %n'er t3e &r0itr&tion -&5 4or t3e

+%r+ose o4 s%s+en'in t3e +ro/ee'ins in t3e RTC.

We 4in' erit in t3e +etition.

Ar0itr&tion, &s &n &-tern&ti$e o'e o4 sett-in 'is+%tes, 3&s -on 0een

re/onie' &n' &//e+te' in o%r B%ris'i/tion.;166;1>


92/139

Ne5 Yor8 0e4ore t3e Aeri/&n Ar0itr&tion Asso/i&tion, T3e

Ar0itr&tion A5&r' s3&-- 0e 4in&- &n' 0in'in on 0ot3 +&rties.

T3e CA r%-e' t3&t &r0itr&tion /&nnot 0e or'ere' in t3is /&se, sin/e

+etitioner &--ee' t3&t t3e /ontr&/t 0et5een t3e +&rties 'i' not eist or 5&s

in$&-i' &n' &r0itr&tion is not +ro+er 53en one o4 t3e +&rties re+%'i&tes t3e

eisten/e or $&-i'it o4 t3e /ontr&/t. T3%s, s&i' t3e CA:

Not5it3st&n'in o%r r%-in on t3e $&-i'it &n' en4or/e&0i-it o4

t3e &ss&i-e' &r0itr&tion /-&%se +ro$i'in 4or 4orein &r0itr&tion, it

is o%r /onsi'ere' o+inion t3&t t3e /&se &t 0en/3 sti-- /&nnot 0e

0ro%3t %n'er t3e Ar0itr&tion L&5 4or t3e +%r+ose o4 s%s+en'in

t3e +ro/ee'ins 0e4ore t3e tri&- /o%rt. We note t3&t in its !otion

to DisissS%s+en' Pro/ee'ins, et/, +etitioner C&ri-- &--ee', &s

one o4 t3e ro%n's t3ereo4, t3&t t3e &--ee' /ontr&/t 0et5een t3e

+&rties 'o not -e&-- eist or is in$&-i'. As +osite' 0 +etitioner, it

is t3eir /ontention t3&t t3e s&i' /ontr&/t, 0e&rin t3e &r0itr&tion

/-&%se, 5&s ne$er /ons%&te' 0 t3e +&rties. T3&t 0ein t3e

/&se, it is 0%t +ro+er t3&t s%/3 iss%e 0e 4irst reso-$e' 0 t3e /o%rt

t3ro%3 &n &++ro+ri&te tri&-. T3e iss%e in$o-$es & J%estion o4 4&/t

t3&t t3e tri&- /o%rt s3o%-' 4irst reso-$e.

Ar0itr&tion is not +ro+er 53en one o4 t3e +&rties

re+%'i&tes t3e eisten/e or $&-i'it o4 t3e /ontr&/t. A+ro+os is

Gon&-es $. C-i& !inin Lt'., 72 SCRA 6>, ?G.R.No.16197>@,

53ere t3e S%+ree Co%rt 3e-' t3&t:

T-e B,estion o+ 7alidit% o+ t-econtract containin6 t-e a6ree'ent to s,b'it to

arbitration )ill a++ect t-e a$$licabilit% o+ t-e

arbitration cla,se itsel+. " $art% cannot rel% on

t-e contract and clai' ri6-ts or obli6ations

,nder it and at t-e sa'e ti'e i'$,6n its


93/139

e#istence or 7alidit%. Indeed* liti6ants are

enjoined +ro' ta!in6 inconsistent $ositions....

ConseJ%ent-, t3e +etitioner 3erein /&nnot /-&i t3&t t3e/ontr&/t 5&s ne$er /ons%&te' &n', &t t3e s&e tie,

in$o8es t3e &r0itr&tion /-&%se +ro$i'e' 4or %n'er t3e /ontr&/t

53i/3 it &--ees to 0e non#eistent or in$&-i'. Petitioner /-&is

t3&t +ri$&te res+on'ents /o+-&int -&/8s & /&%se o4 &/tion '%e

to t3e &0sen/e o4 &n $&-i' /ontr&/t 0et5een t3e +&rties.

A++&rent-, t3e &r0itr&tion /-&%se is 0ein in$o8e' ere- &s &

4&--0&/8 +osition. T3e +etitioner %st 4irst &''%/e e$i'en/e in

s%++ort o4 its /-&i t3&t t3ere is no $&-i' /ontr&/t 0et5een t3e

&n' s3o%-' t3e /o%rt & J%o 4in' t3e /-&i to 0e eritorio%s, t3e

+&rties & t3en 0e s+&re' t3e riors &n' e+enses t3&t&r0itr&tion in & 4orein -&n' 5o%-' s%reent&i-.;2ales/&se,;27


94/139

t3e ro%n' o4 4r&%', &s it 3&' &-re&' 0een 'eterine' t3&t t3e

/&se s3o%-' 3&$e 0een 0ro%3t 0e4ore t3e re%-&r /o%rts

in$o-$in &s it 'i' B%'i/i&- iss%es.;26ales /&se, C-iAri/o so%3t to

en4or/e t3e &r0itr&tion /-&%se o4 its /ontr&/t 5it3 Gon&-es &n' t3e 4orers

o$e 5&s +reise' on t3e eisten/e o4 & $&-i' /ontr&/t 53i-e Gon&-es, 53o

resiste' t3e o$e o4 C-iAri/o 4or &r0itr&tion, 'i' not 'en t3e

eisten/e o4 t3e /ontr&/t 0%t ere- &ss&i-e' t3e $&-i'it t3ereo4 on t3e

ro%n' o4 4r&%' &n' o++ression. Res+on'ent /-&is t3&t in t3e /&se 0e4ore

Us, +etitioner 53o is t3e +&rt insistent on &r0itr&tion &-so /-&ie' in t3eir

!otion to DisissS%s+en' Pro/ee'ins t3&t t3e /ontr&/t so%3t 0

res+on'ent to 0e res/in'e' 'i' not eist or 5&s not /ons%&te' t3%s,
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t3ere is no roo 4or t3e &++-i/&tion o4 t3e se+&r&0i-it 'o/trine, sin/e t3ere is

no /ont&iner or &in /ontr&/t or &n &r0itr&tion /-&%se to s+e&8 o4.

We &re not +ers%&'e'.

A++-in t3e 0on>alesr%-in, &n &r0itr&tion &reeent 53i/3 4ors

+&rt o4 t3e &in /ontr&/t s3&-- not 0e re&r'e' &s in$&-i' or non#eistent B%st

0e/&%se t3e &in /ontr&/t is in$&-i' or 'i' not /oe into eisten/e, sin/e t3e

&r0itr&tion &reeent s3&-- 0e tre&te' &s & se+&r&te &reeent in'e+en'ent

o4 t3e &in /ontr&/t. To reiter&te. & /ontr&r r%-in 5o%-' s%est t3&t &

+&rts ere re+%'i&tion o4 t3e &in /ontr&/t is s%44i/ient to &$oi' &r0itr&tion&n' t3&t is e&/t- t3e sit%&tion t3&t t3e se+&r&0i-it 'o/trine so%3t to

&$oi'. T3%s, 5e 4in' t3&t e$en t3e +&rt 53o 3&s re+%'i&te' t3e &in

/ontr&/t is not +re$ente' 4ro en4or/in its &r0itr&tion /-&%se.

!oreo$er, it is 5ort3 to note t3&t res+on'ent 4i-e' & /o+-&int 4or

res/ission o4 /ontr&/t &n' '&&es 5it3 t3e RTC. In so 'oin, res+on'ent

&--ee' t3&t & /ontr&/t eists 0et5een res+on'ent &n' +etitioner. It is t3&t

/ontr&/t 53i/3 +ro$i'es 4or &n &r0itr&tion /-&%se 53i/3 st&tes t3&t &n

'is+%te 53i/3 t3e "%er &n' Se--er & not 0e &0-e to sett-e 0 %t%&-

&reeent s3&-- 0e sett-e' 0e4ore t3e Cit o4 Ne5 Yor8 0 t3e Aeri/&n

Ar0itr&tion Asso/i&tion. T3e &r0itr&tion &reeent /-e&r- e+resse' t3e

+&rties intention t3&t &n 'is+%te 0et5een t3e &s 0%er &n' se--er s3o%-'

0e re4erre' to &r0itr&tion. It is 4or t3e &r0itr&tor &n' not t3e /o%rts to 'e/i'e

53et3er & /ontr&/t 0et5een t3e +&rties eists or is $&-i'.

Res+on'ent /onten's t3&t &ss%in t3&t t3e eisten/e o4 t3e /ontr&/t

&n' t3e &r0itr&tion /-&%se is /on/e'e', t3e CAs 'e/ision 'e/-inin re4err&- o4

t3e +&rties 'is+%te to &r0itr&tion is sti-- /orre/t. It /-&is t3&t its /o+-&int

in t3e RTC +resents t3e iss%e o4 53et3er %n'er t3e 4&/ts &--ee', it is entit-e'

to res/in' t3e /ontr&/t 5it3 '&&es &n' t3&t iss%e /onstit%tes & B%'i/i&-


96/139

J%estion or one t3&t reJ%ires t3e eer/ise o4 B%'i/i&- 4%n/tion &n' /&nnot 0e

t3e s%0Be/t o4 &n &r0itr&tion +ro/ee'in. Res+on'ent /ites o%r r%-in

in0on>ales!53erein 5e 3e-' t3&t & +&ne- o4 &r0itr&tor is 0ere4t o4 B%ris'i/tion

o$er t3e /o+-&int 4or 'e/-&r&tion o4 n%--itor terin&tion o4 t3e s%0Be/t

/ontr&/ts on t3e ro%n's o4 4r&%' &n' o++ression &tten'&nt to t3e ee/%tion

o4 t3e &''en'% /ontr&/t &n' t3e ot3er /ontr&/ts e&n&tin 4ro it, &n'

t3&t t3e /o+-&int s3o%-' 3&$e 0een 4i-e' 5it3 t3e re%-&r /o%rts &s it

in$o-$e' iss%es 53i/3 &re B%'i/i&- in n&t%re.

S%/3 &r%ent is is+-&/e' &n' res+on'ent /&nnot re- on

t3e 0on>ales/&se to s%++ort its &r%ent.

In 0on>ales, +etitioner Gon&-es 4i-e' & /o+-&int 0e4ore t3e P&ne- o4

Ar0itr&tors, Reion II, !ines &n' Geos/ien/es "%re&%, o4 t3e De+&rtent o4

En$ironent &n' N&t%r&- Reso%r/es ?DENR@ &&inst res+on'ents C-i

!inin Lt', C-iAri/o &n' A%str&-&si&n P3i-i++ines !inin In/, see8in

t3e 'e/-&r&tion o4 n%--it or terin&tion o4 t3e &''en'% /ontr&/t &n' t3e

ot3er /ontr&/ts e&n&tin 4ro it on t3e ro%n's o4 4r&%' &n' o++ression.

T3e P&ne- 'isisse' t3e /o+-&int 4or -&/8 o4 B%ris'i/tion. Ko5e$er, t3e

P&ne-, %+on +etitioners otion 4or re/onsi'er&tion, r%-e' t3&t it 3&'

B%ris'i/tion o$er t3e 'is+%te &int&inin t3&t it 5&s & inin 'is+%te, sin/e

t3e s%0Be/t /o+-&int &rose 4ro & /ontr&/t 0et5een t3e +&rties 53i/3

in$o-$e' t3e e+-or&tion &n' e+-oit&tion o4 iner&-s o$er t3e 'is+%te' &re&.

Res+on'ents &ss&i-e' t3e or'er o4 t3e P&ne- o4 Ar0itr&tors $i& & +etition

4or certiorari0e4ore t3e CA. T3e CA r&nte' t3e +etition &n' 'e/-&re' t3&t

t3e P&ne- o4 Ar0itr&tors 'i' not 3&$e B%ris'i/tion o$er t3e /o+-&int, sin/e its

B%ris'i/tion 5&s -iite' to t3e reso-%tion o4 inin 'is+%tes, s%/3 &s t3ose

53i/3 r&ise' & J%estion o4 4&/t or &tter reJ%irin t3e te/3ni/&- 8no5-e'e&n' e+erien/e o4 inin &%t3orities &n' not 53en t3e /o+-&int &--ee'

4r&%' &n' o++ression 53i/3 /&--e' 4or t3e inter+ret&tion &n' &++-i/&tion o4

-&5s. T3e CA 4%rt3er r%-e' t3&t t3e +etition s3o%-' 3&$e 0een sett-e'

t3ro%3 &r0itr&tion %n'er R.A. No. >6 t3e Ar0itr&tion L&5 &s +ro$i'e'

%n'er t3e &''en'% /ontr&/t.


97/139

On & re$ie5 on certiorari, 5e &44ire' t3e CAs 4in'in t3&t t3e P&ne- o4

Ar0itr&tors 53o, %n'er R.A. No. >92 o4 t3e P3i-i++ine !inin A/t o4 1997,

3&s e/-%si$e &n' oriin&- B%ris'i/tion to 3e&r &n' 'e/i'e inin 'is+%tes,s%/3 &s inin &re&s, iner&- &reeents, TAAs or +erits &n' s%r4&/e

o5ners, o//%+&nts &n' /-&i3o-'ers/on/ession&ires, is 0ere4t o4 B%ris'i/tion

o$er t3e /o+-&int 4or 'e/-&r&tion o4 n%--it o4 t3e &''en'% /ontr&/t t3%s,

t3e P&ne-s B%ris'i/tion is -iite' on- to t3ose inin 'is+%tes 53i/3 r&ise'

J%estion o4 4&/ts or &tters reJ%irin t3e te/3ni/&- 8no5-e'e &n'

e+erien/e o4 inin &%t3orities. We t3en s&i':

In Pearson v. Interediate (ppellate Court, t3is Co%rto0ser$e' t3&t t3e tren' 3&s 0een to &8e t3e &'B%'i/&tion o4

inin /&ses & +%re- &'inistr&ti$e &tter. De/isions o4 t3e

S%+ree Co%rt on inin 'is+%tes 3&$e re/onie' & 'istin/tion

0et5een ?1@ t3e +ri&r +o5ers r&nte' 0 +ertinent +ro$isions

o4 -&5 to t3e t3en Se/ret&r o4 Ari/%-t%re &n' N&t%r&- Reso%r/es

?&n' t3e 0%re&% 'ire/tors@ o4 &n ee/%ti$e or &'inistr&ti$e

n&t%re, s%/3 &s r&ntin o4 -i/ense, +erits, -e&se &n' /ontr&/ts,

or &++ro$in, reBe/tin, reinst&tin or /&n/e-in &++-i/&tions, or

'e/i'in /on4-i/tin &++-i/&tions, &n' ?2@ /ontro$ersies or

'is&reeents o4 /i$i- or /ontr&/t%&- n&t%re 0et5een -iti&nts

53i/3 &re J%estions o4 & B%'i/i&- n&t%re t3&t & 0e &'B%'i/&te'

on- 0 t3e /o%rts o4 B%sti/e. T3is 'istin/tion is /&rrie' on e$en in

Re+. A/t No. >92.;2#################################################################################

)ORGE GONMALES, G.R. No. 16>99 Petitioner,

# $ers%s

KON. OSCAR ". PI!ENTEL, in 3is/&+&/it &s PRESIDING )UDGE o4 "R. 1o4 t3e REGIONAL TRIAL COURT o4

!A*ATI CITY, &n' CLI!AQ#ARI!CO!INING CORPORATION, Res+on'ents.########################## ###################################################


100/139

R E S O L ; T I ON

TINGA,J.:

T3is is & /onso-i'&tion o4 t5o +etitions roote' in t3e s&e 'is+%te'A''en'% Contr&/t entere' into 0 t3e +&rties. In G.R. No. 16197>, t3e

Co%rt in its De/ision o4 2 e0r%&r 27;1


101/139

o4 t3e &''en'% /ontr&/t. I4 so, it s%++ose'- /on$es t3e i'e& t3&t

Gon&-ess %ni-&ter&- re+%'i&tion o4 t3e /ontr&/t or ere &--e&tion o4 its

in$&-i'it is &-- it t&8es to &$oi' &r0itr&tion. Ken/e, res+on'ents s%0it t3&t

t3e /o%rts 3o-'in t3&t t3e /&se s3o%-' not 0e 0ro%3t %n'er t3e &0it o4

t3e Ar0itr&tion L&5F 0e %n'erstoo' or /-&ri4ie' &s o+er&ti$e on- 53ere t3e

/3&--ene to t3e &r0itr&tion &reeent 3&s 0een s%st&ine' 0 4in&-

B%'ent.

"ot3 +&rties 5ere reJ%ire' to 4i-e t3eir res+e/ti$e /oents to t3e

ot3er +&rts otion 4or re/onsi'er&tion/-&ri4i/&tion.;> A%%st 27,;99 is & R%-e 67 +etition 4i-e' on 6 !&

27, or 53i-e t3e otions 4or re/onsi'er&tion in G.R. No. 16197>;199, 5ere

/onso-i'&te' %+on t3e re/oen'&tion o4 t3e Assist&nt Di$ision C-er8 o4

Co%rt sin/e t3e /&ses &re roote' in t3e s&e A''en'% Contr&/t.

We 4irst t&/8-e t3e ore re/ent /&se 53i/3 is G.R. No. 16>99. It

stee' 4ro t3e +etition to /o+e- &r0itr&tion 4i-e' 0 res+on'ent C-i

Ari/o 0e4ore t3e RTC o4 !&8&ti Cit on =1 !&r/3 2 53i-e t3e /o+-&int

4or t3e n%--i4i/&tion o4 t3e A''en'% Contr&/t 5&s +en'in 0e4ore t3e DENR

P&ne- o4 Ar0itr&tors. On 2= !&r/3 2, C-iAri/o 3&' sent Gon&-es &

De&n' 4or Ar0itr&tion +%rs%&nt to C-&%se 19.1;11


102/139

On 1 A+ri- 2, Gon&-es 4i-e' & otion to 'isiss 53i/3 3e 3o5e$er

4&i-e' to set 4or 3e&rin. On 17 !& 2, 3e 4i-e' &n Ans5er 5it3

Co%nter/-&i,;126 'oes
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103/139

not &%t3orie & +re#tri&- or tri&- 4or & otion to /o+e- &r0itr&tion 0%t 'ire/ts

t3e /o%rt to 3e&r t3e otion s%&ri- &n' reso-$e it 5it3in ten '&s 4ro

3e&rin. )%'e Piente- r&nte' t3e otion &n' 'ire/te' t3e +&rties to

&r0itr&tion. On1= e0r%&r 21, )%'e Piente- iss%e' t3e 4irst &ss&i-e'

or'er reJ%irin Gon&-es to +ro/ee' 5it3 &r0itr&tion +ro/ee'ins &n'

&++ointin retire' CA )%sti/e )ore CoJ%i& &s so-e &r0itr&tor.;2 !&r/3 27 o4 )%'e Piente-. Gon&-es /onten's t3&t

+%0-i/ res+on'ent )%'e Piente- &/te' 5it3 r&$e &0%se o4 'is/retion inie'i&te- or'erin t3e +&rties to +ro/ee' 5it3 &r0itr&tion 'es+ite t3e

+ro+er, $&-i', &n' tie- r&ise' &r%ent in 3is Ans5er 5it3 Co%nter/-&i

t3&t t3e A''en'% Contr&/t, /ont&inin t3e &r0itr&tion /-&%se, is n%-- &n'

$oi'. Gon&-es 3&s &-so so%3t & te+or&r restr&inin or'er to +re$ent t3e

en4or/eent o4 t3e &ss&i-e' or'ers 'ire/tin t3e +&rties to &r0itr&te, &n' to

'ire/t )%'e Piente- to 3o-' & +re#tri&- /on4eren/e &n' t3e ne/ess&r

3e&rins on t3e 'eterin&tion o4 t3e n%--it o4 t3e A''en'% Contr&/t.

In s%++ort o4 3is &r%ent, Gon&-es in$o8es Se/. 6 o4 R.A. No. >6:

SEC. 6. *earin/ )' court.A +&rt &rie$e' 0 t3e

4&i-%re, ne-e/t or re4%s&- o4 &not3er to +er4or %n'er &n&reeent in 5ritin +ro$i'in 4or &r0itr&tion & +etition t3e/o%rt 4or &n or'er 'ire/tin t3&t s%/3 &r0itr&tion +ro/ee' in t3e&nner +ro$i'e' 4or in s%/3 &reeent. i$e '&s noti/e in5ritin o4 t3e 3e&rin o4 s%/3 &++-i/&tion s3&-- 0e ser$e' eit3er+erson&-- or 0 reistere' &i- %+on t3e +&rt in 'e4&%-t. T3e/o%rt s3&-- 3e&r t3e +&rties, &n' %+on 0ein s&tis4ie' t3&t t3e

&8in o4 t3e &reeent or s%/3 4&i-%re to /o+- t3ere5it3 isnot in iss%e, s3&-- &8e &n or'er 'ire/tin t3e +&rties to+ro/ee' to &r0itr&tion in &//or'&n/e 5it3 t3e ters o4 t3e&reeent. I4 t3e &8in o4 t3e &reeent or 'e4&%-t 0e iniss%e t3e /o%rt s3&-- +ro/ee' to s%&ri- 3e&r s%/3 iss%e. I4t3e 4in'in 0e t3&t no &reeent in 5ritin +ro$i'in 4or&r0itr&tion 5&s &'e, or t3&t t3ere is no 'e4&%-t in t3e+ro/ee'in t3ere%n'er, t3e +ro/ee'in s3&-- 0e 'isisse'. I4
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t3e 4in'in 0e t3&t & 5ritten +ro$ision 4or &r0itr&tion 5&s &'e&n' t3ere is & 'e4&%-t in +ro/ee'in t3ere%n'er, &n or'er s3&--0e &'e s%&ri- 'ire/tin t3e +&rties to +ro/ee' 5it3 t3e&r0itr&tion in &//or'&n/e 5it3 t3e ters t3ereo4.

T3e /o%rt s3&-- 'e/i'e &-- otions, +etitions or&++-i/&tions 4i-e' %n'er t3e +ro$isions o4 t3is A/t, 5it3in ten?1@ '&s &4ter s%/3 otions, +etitions, or &++-i/&tions 3&$e0een 3e&r' 0 it.

Gon&-es &-so /ites Se/. 2 o4 R.A. No. 927 or t3e A-tern&ti$e Dis+%te

Reso-%tion A/t o4 2:F

SEC. 2. Re"erral to (r)itration.A /o%rt 0e4ore 53i/3 &n

&/tion is 0ro%3t in & &tter 53i/3 is t3e s%0Be/t &tter o4 &n&r0itr&tion &reeent s3&--, i4 &t -e&st one +&rt so reJ%ests not-&ter t3&n t3e +re#tri&- /on4eren/e, or %+on t3e reJ%est o4 0ot3+&rties t3ere&4ter, re4er t3e +&rties to &r0itr&tion %n-ess it 4in'st3&t t3e &r0itr&tion &reeent is n%-- &n' $oi', ino+er&ti$e orin/&+&0-e o4 0ein +er4ore'.

A//or'in to Gon&-es, t3e &0o$e#J%ote' +ro$isions o4 -&5 o%t-ine t3e

+ro/e'%re to 0e 4o--o5e' in +etitions to /o+e- &r0itr&tion, 53i/3 t3e RTC

'i' not 4o--o5. T3%s, re4err&- o4 t3e +&rties to &r0itr&tion 0 )%'e Piente-

'es+ite t3e tie- &n' +ro+er- r&ise' iss%e o4 n%--it o4 t3e A''en'%

Contr&/t 5&s is+-&/e' &n' 5it3o%t -e&- 0&sis. "ot3 R.A. No. >6 &n' R.A.

No. 927 &n'&te t3&t &n iss%e &s to t3e n%--it, ino+er&ti$eness, or

in/&+&0i-it o4 +er4or&n/e o4 t3e &r0itr&tion /-&%se&reeent r&ise' 0

one o4 t3e +&rties to t3e &--ee' &r0itr&tion &reeent %st 0e 'eterine'

0 t3e /o%rt +rior to re4errin t3e to &r0itr&tion. T3e reJ%ire t3&t t3e tri&-

/o%rt 4irst 'eterine or reso-$e t3e iss%e o4 n%--it, &n' t3ere is no ot3er

$en%e 4or t3is 'eterin&tion ot3er t3&n & +re#tri&- &n' 3e&rin on t3e iss%e0 t3e tri&- /o%rt 53i/3 3&s B%ris'i/tion o$er t3e /&se. Gon&-es &''s t3&t

t3e &ss&i-e' 1= e0r%&r 21 Or'er &-so $io-&te' 3is ri3t to +ro/e'%r&- '%e

+ro/ess 53en t3e tri&- /o%rt erroneo%s- r%-e' on t3e eisten/e o4 t3e

&r0itr&tion &reeent 'es+ite t3e &0sen/e o4 & 3e&rin 4or t3e +resent&tion

o4 e$i'en/e on t3e n%--it o4 t3e A''en'% Contr&/t.


105/139

Res+on'ent C-iAri/o, on t3e ot3er 3&n', &ss&i-s t3e o'e o4

re$ie5 &$&i-e' o4 0 Gon&-es. C-iAri/o /ites Se/. 29 o4 R.A. No. >6:

SEC. 29. (ppeals.An &++e&- & 0e t&8en 4ro &nor'er &'e in & +ro/ee'in %n'er t3is A/t, or 4ro & B%'ententere' %+on &n &5&r' t3ro%3 /ertior&ri +ro/ee'ins, 0%t s%/3&++e&-s s3&-- 0e -iite' to J%estions o4 -&5. T3e +ro/ee'ins%+on s%/3 &n &++e&-, in/-%'in t3e B%'ent t3ereon s3&-- 0eo$erne' 0 t3e R%-es o4 Co%rt in so 4&r &s t3e &re &++-i/&0-e.

C-iAri/o entions t3&t t3e s+e/i&- /i$i- &/tion 4or /ertior&ri

e+-oe' 0 Gon&-es is &$&i-&0-e on- 53ere t3ere is no &++e&- or &n

+-&in, s+ee', &n' &'eJ%&te ree' in t3e or'in&r /o%rse o4 -&5 &&inst

t3e /3&--ene' or'ers or &/ts. C-iAri/o t3en +oints o%t t3&t R.A. No.

>6 +ro$i'es 4or &n &++e&- 4ro s%/3 or'ers, 53i/3, %n'er t3e R%-es o4

Co%rt, %st 0e 4i-e' 5it3in 17 '&s 4ro noti/e o4 t3e 4in&- or'er or reso-%tion

&++e&-e' 4ro or o4 t3e 'eni&- o4 t3e otion 4or re/onsi'er&tion 4i-e' in '%e

tie. Gon&-es 3&s not 'enie' t3&t t3e re-e$&nt 17#'& +erio' 4or &n &++e&-

3&' e-&+se' -on 0e4ore 3e 4i-e' t3is +etition 4or /ertior&ri. Ke /&nnot %se

t3e s+e/i&- /i$i- &/tion o4 /ertior&ri &s & ree' 4or & -ost &++e&-.

C-iAri/o &''s t3&t &n &++-i/&tion to /o+e- &r0itr&tion %n'er

Se/. 6 o4 R.A. No. >6 /on4ers on t3e tri&- /o%rt on- & -iite' &n' s+e/i&-

B%ris'i/tion, i.e., & B%ris'i/tion so-e- to 'eterine ?&@ 53et3er or not t3e

+&rties 3&$e & 5ritten /ontr&/t to &r0itr&te, &n' ?0@ i4 t3e 'e4en'&nt 3&s

4&i-e' to /o+- 5it3 t3&t /ontr&/t. Res+on'ent /ites +a


106/139

'isiss t3e s&e, 'e+en'in so-e- on its 4in'in &s to t3ose t5o -iite'

iss%es. I4 eit3er o4 t3ese &tters is 'is+%te', t3e /o%rt is reJ%ire' to /on'%/t

& s%&r 3e&rin on it. Gon&-ess +ro+osition /ontr&'i/ts 0ot3 t3e tri&-

/o%rts -iite' B%ris'i/tion &n' t3e s%&r n&t%re o4 t3e +ro/ee'in itse-4.

C-iAri/o 4%rt3er notes t3&t Gon&-ess &tt&/8 on or re+%'i&tion

o4 t3e A''en'% Contr&/t &-so is not & ro%n' to 'en e44e/t to t3e

&r0itr&tion /-&%se in t3e Contr&/t. T3e &r0itr&tion &reeent is se+&r&te &n'

se$er&0-e 4ro t3e /ontr&/t e$i'en/in t3e +&rties /oer/i&- or e/onoi/

tr&ns&/tion, it stresses. Ken/e, t3e &--ee' 'e4e/t or 4&i-%re o4 t3e &in

/ontr&/t is not & ro%n' to 'en en4or/eent o4 t3e +&rties &r0itr&tion

&reeent. E$en t3e +&rt 53o 3&s re+%'i&te' t3e &in /ontr&/t is not

+re$ente' 4ro en4or/in its &r0itr&tion +ro$ision. R.A. No. >6 itse-4 tre&tst3e &r0itr&tion /-&%se or &reeent &s & /ontr&/t se+&r&te 4ro t3e

/oer/i&-, e/onoi/ or ot3er tr&ns&/tion to 0e &r0itr&te'. T3e st&t%te, in

+&rti/%-&r +&r&r&+3 1 o4 Se/. 2 t3ereo4, /onsi'ers t3e &r0itr&tion sti+%-&tion

&n in'e+en'ent /ontr&/t in its o5n ri3t 53ose en4or/eent & 0e

+re$ente' on- on ro%n's 53i/3 -e&-- &8e t3e &r0itr&tion &reeent

itse-4 re$o/&0-e, t3%s:

SEC. 2. Persons and atters su)ect to ar)itration.T5o

or ore +ersons or +&rties & s%0it to t3e &r0itr&tion o4 oneor ore &r0itr&tors &n /ontro$ers eistin, 0et5een t3e &tt3e tie o4 t3e s%0ission &n' 53i/3 & 0e t3e s%0Be/t o4 &n&/tion, or t3e +&rties to &n /ontr&/t & in s%/3 /ontr&/t&ree to sett-e 0 &r0itr&tion & /ontro$ers t3ere&4ter &risin0et5een t3e. S%/3 s%0ission or /ontr&/t s3&-- 0e $&-i',en4or/e&0-e &n' irre$o/&0-e, s&$e %+on s%/3 ro%n's &s eist&t -&5 4or t3e re$o/&tion o4 &n /ontr&/t.

T3e ro%n's Gon&-es in$o8es 4or t3e re$o/&tion o4 t3e A''en'%

Contr&/t4r&%' &n' o++ression in t3e ee/%tion t3ereo4&re &-so not

ro%n's 4or t3e re$o/&tion o4 t3e &r0itr&tion /-&%se in t3e Contr&/t, C-i

Ari/o notes. S%/3 ro%n's & on- 0e r&ise' 0 5& o4 'e4ense in t3e

&r0itr&tion itse-4 &n' /&nnot 0e %se' to 4r%str&te or 'e-& t3e /on'%/t o4


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&r0itr&tion +ro/ee'ins. Inste&', t3ese s3o%-' 0e r&ise' in & se+&r&te &/tion

4or res/ission, it /ontin%es.

C-iAri/o e+3&sies t3&t t3e s%&r +ro/ee'in to /o+e-

&r0itr&tion %n'er Se/. 6 o4 R.A. No. >6 s3o%-' not 0e /on4%se' 5it3 t3e

+ro/e'%re in Se/. 2 o4 R.A. No. 927. Se/. 6 o4 R.A. No. >6 re4ers to &n

&++-i/&tion to /o+e- &r0itr&tion 53ere t3e /o%rts &%t3orit is -iite' to

reso-$in t3e iss%e o4 53et3er t3ere is or t3ere is no &reeent in 5ritin

+ro$i'in 4or &r0itr&tion, 53i-e Se/. 2 o4 R.A. No. 927 re4ers to &n or'in&r

&/tion 53i/3 /o$ers & &tter t3&t &++e&rs to 0e &r0itr&0-e or s%0Be/t to

&r0itr&tion %n'er t3e &r0itr&tion &reeent. In t3e -&tter /&se, t3e st&t%te is

/-e&r t3&t t3e /o%rt, inste&' o4 trin t3e /&se, &, on reJ%est o4 eit3er or

0ot3 +&rties, re4er t3e +&rties to &r0itr&tion, %n-ess it 4in's t3&t t3e&r0itr&tion &reeent is n%-- &n' $oi', ino+er&ti$e or in/&+&0-e o4 0ein

+er4ore'. Ar0itr&tion & e$en 0e or'ere' in t3e s&e s%it 0ro%3t %+on

& &tter /o$ere' 0 &n &r0itr&tion &reeent e$en 5it3o%t 5&itin 4or t3e

o%t/oe o4 t3e iss%e o4 t3e $&-i'it o4 t3e &r0itr&tion &reeent. Art. o4

t3e UNCITRAL !o'e- L&5;26, to or'er t3e +&rties to &r0itr&te e$en t3o%3 t3e 'e4en'&nt t3erein

3&s r&ise' t3e t5in iss%es o4 $&-i'it &n' n%--it o4 t3e A''en'% Contr&/t

&n', /onseJ%ent-, o4 t3e &r0itr&tion /-&%se t3erein &s 5e--. T3e reso-%tion o4

0ot3 C-iAri/os !otion 4or P&rti&- Re/onsi'er&tion &n'or C-&ri4i/&tion

in G.R. No. 16197> &n' Gon&-ess Petition 4or Certior&ri in G.R. No. 16>99

essenti&-- t%rns on 53et3er t3e J%estion o4 $&-i'it o4 t3e A''en'%Contr&/t 0e&rs %+on t3e &++-i/&0i-it or en4or/e&0i-it o4 t3e &r0itr&tion

/-&%se /ont&ine' t3erein. T3e t5o +en'in &tters s3&-- t3%s 0e Boint-

reso-$e'.

We &''ress t3e R%-e 67 +etition in G.R. No. 16>99 4irst 4ro t3e

ree'i&- -&5 +ers+e/ti$e. It 'eser$es to 0e 'isisse' on +ro/e'%r&- ro%n's,
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108/139

&s it 5&s 4i-e' in -ie% o4 &++e&- 53i/3 is t3e +res/ri0e' ree' &n' &t t3&t 4&r

0eon' t3e re-eent&r +erio'. It is e-eent&r in ree'i&- -&5 t3&t t3e

%se o4 &n erroneo%s o'e o4 &++e&- is /&%se 4or 'isiss&- o4 t3e +etition 4or

/ertior&ri &n' it 3&s 0een re+e&te'- stresse' t3&t & +etition 4or /ertior&ri is

not & s%0stit%te 4or & -ost &++e&-. As its n&t%re, & +etition 4or /ertior&ri -ies

on- 53ere t3ere is no &++e&-,F &n' no +-&in, s+ee' &n' &'eJ%&te ree'

in t3e or'in&r /o%rse o4 -&5.F;27


109/139

R%-e 67, 53i/3 t3e Co%rt o4 A++e&-s, 4&$or&0- &/te' %+on. In & +etition 4or

re$ie5 0e4ore t3is Co%rt, " Cor+or&tion &--ee', &on ot3ers, t3&t t3e

Co%rt o4 A++e&-s s3o%-' 3&$e 'isisse' t3e +etition 4or /ertior&ri sin/e t3e

or'er o4 t3e tri&- /o%rt 'enin t3e otion to s%s+en' +ro/ee'ins is &

reso-%tion o4 &n in/i'ent on t3e eritsF &n' %+on t3e /ontin%&tion o4 t3e

+ro/ee'ins, t3e tri&- /o%rt 5o%-' e$ent%&-- ren'er & 'e/ision on t3e erits,

53i/3 'e/ision /o%-' t3en 0e e-e$&te' to & 3i3er /o%rt in &n or'in&r

&++e&-.F;=


110/139

t3e 5ron ree' in t3e 0ro&'er interests o4 B%sti/e, t3e +etition 5o%-'

ne$ert3e-ess 0e 'isisse' 4or 4&i-%re o4 Gon&-e to s3o5 r&$e &0%se o4

'is/retion.

Ar0itr&tion, &s &n &-tern&ti$e o'e o4 sett-in 'is+%tes, 3&s -on 0een

re/onie' &n' &//e+te' in o%r B%ris'i/tion. T3e Ci$i- Co'e is e+-i/it on t3e

&tter.;==6 &-so e+ress- &%t3ories &r0itr&tion o4 'oesti/

'is+%tes. orein &r0itr&tion, &s & sste o4 sett-in /oer/i&- 'is+%tes o4

&n intern&tion&- /3&r&/ter, 5&s -i8e5ise re/onie' 53en t3e P3i-i++ines

&'3ere' to t3e Unite' N&tions XCon$ention on t3e Re/onition &n' t3e

En4or/eent o4 orein Ar0itr&- A5&r's o4 197,X %n'er t3e 1 !& 1967

Reso-%tion No. >1 o4 t3e P3i-i++ine Sen&te, i$in re/i+ro/&- re/onition &n'

&--o5in en4or/eent o4 intern&tion&- &r0itr&tion &reeents 0et5een+&rties o4 'i44erent n&tion&-ities 5it3in & /ontr&/tin st&te.;=6

re/onies t3e /ontr&/t%&- n&t%re o4 t3e &r0itr&tion &reeent, t3%s:

SEC. 2. Persons and atters su)ect to ar)itration.T5o

or ore +ersons or +&rties & s,b'it to t-e arbitration o+one or 'ore arbitrators an% contro7ers% e#istin6*bet)een t-e'&t t3e tie o4 t3e s%0ission &n' 53i/3 &0e t3e s%0Be/t o4 &n &/tion, or t3e +&rties to &n /ontr&/t &in s%/3 /ontr&/t a6ree to settle b% arbitration& /ontro$erst3ere&4ter &risin 0et5een t3e. S,c- s,b'ission orcontract s-all be 7alid* en+orceable and irre7ocable*

sa7e ,$on s,c- 6ro,nds as e#ist at la) +or t-ere7ocation o+ an% contract.

S%/3 s%0ission or /ontr&/t & in/-%'e J%estion&risin o%t o4 $&-%&tions, &++r&is&-s or ot3er /ontro$ersies53i/3 & 0e /o--&ter&-, in/i'ent&-, +re/e'ent or s%0seJ%ent to&n iss%e 0et5een t3e +&rties.
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A /ontro$ers /&nnot 0e &r0itr&te' 53ere one o4 t3e

+&rties to t3e /ontro$ers is &n in4&nt, or & +erson B%'i/i&--'e/-&re' to 0e in/o+etent, %n-ess t3e &++ro+ri&te /o%rt3&$in B%ris'i/tion &++ro$e & +etition 4or +erission to s%0it

s%/3 /ontro$ers to &r0itr&tion &'e 0 t3e ener&- %&r'i&n

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