Professional Documents
Culture Documents
Benguet Corporation v. DENR, GR No. 163101, February 13, 2008
Benguet Corporation v. DENR, GR No. 163101, February 13, 2008
SUPREME COURT
Manila
SECOND DIVISION
BENGUET CORPORATION, G.R. No. 163101
Petitioner,
Present:
!ersus "UISUM#IN$, J., Chairperson,
C%RPIO,
C%RPIO MOR%&ES,
TIN$%, an'
DEPARTMENT OF ENVIRONMENT VE&%SCO, (R), JJ.
AND NATURAL RESOURCES
-MINES ADJUDICATION BOARD
and J.G. REALT AND MINING Pro*ul+ate':
CORPORATION,
Respon'ents) ,ebruar- ./, 0112
33
D E C I S I O N
VELASCO, JR., J.!
The instant petition un'er Rule 45 of the Rules of Court see6s the
annul*ent of the Dece*ber 0, 0110 Decision
.
an' March .7, 0118
Resolution
0
of the Depart*ent of En!iron*ent an' Natural Resources
Minin+ %'9u'ication #oar' :DENRM%#; in M%# Case No) 1.081.
:Mines %'*inistrati!e Case No) RM01111.; entitle' Benguet
Corporation :Benguet; v. J.G. Realty and Mining Corporation :J.G. Realty;)
The Dece*ber 0, 0110 Decision uphel' the March .<, 011. Decision
/
of the
M%# Panel of %rbitrators :PO%; =hich cancele' the Ro-alt- %+ree*ent
=ith Option to Purchase :R%>OP; 'ate' (une ., .<27
8
bet=een #en+uet
an' ()$) Realt-, an' e3clu'e' #en+uet fro* the 9oint Mineral Pro'uction
Sharin+ %+ree*ent :MPS%; application o!er four *inin+ clai*s) The
March .7, 0118 Resolution 'enie' #en+uet?s Motion for Reconsi'eration)
.
Rollo, pp) 05/2)
0
I') at /<8.)
/
I') at 8087)
8
I') at 7/...)
T"# Fa$%&
On (une ., .<27, #en+uet an' ()$) Realt- entere' into a R%>OP,
=herein ()$) Realt- =as ac6no=le'+e' as the o=ner of four *inin+ clai*s
respecti!el- na*e' as #onitoI, #onitoII, #onitoIII, an' #onitoIV, =ith a
total area of 022)2454 hectares, situate' in #aran+a- &u6lu6a*, Sitio
#a+on+ #a-an, Municipalit- of (ose Pan+aniban, Ca*arines Norte) The
parties also e3ecute' a Supple*ental %+ree*ent
5
'ate' (une ., .<27)
The
*inin+ clai*s =ere co!ere' b- MPS% %pplication No) %PS%V111<
9ointl- file' b- ()$) Realt- as clai*o=ner an' #en+uet as operator)
In the R%>OP, #en+uet obli+ate' itself to perfect the ri+hts to the
*inin+ clai*s an'@or other=ise acAuire the *inin+ ri+hts to the *ineral
clai*s) >ithin 08 *onths fro* the e3ecution of the R%>OP, #en+uet
shoul' also cause the e3a*ination of the *inin+ clai*s for the purpose of
'eter*inin+ =hether or not the- are =orth 'e!elopin+ =ith reasonable
probabilit- of profitable pro'uction) #en+uet un'ertoo6 also to furnish ()$)
Realt- =ith a report on the e3a*ination, =ithin a reasonable ti*e after the
co*pletion of the e3a*ination) Moreo!er, also =ithin the e3a*ination
perio', #en+uet shall con'uct all necessar- e3ploration in accor'ance =ith a
prepare' e3ploration pro+ra*) If it chooses to 'o so an' before the
e3piration of the e3a*ination perio', #en+uet *a- un'erta6e to 'e!elop the
*inin+ clai*s upon =ritten notice to ()$) Realt-) #en+uet *ust then place
the *inin+ clai*s into co**ercial pro'ucti!e sta+e =ithin 08 *onths fro*
the =ritten notice)
4
It is also pro!i'e' in the R%>OP that if the *inin+
clai*s =ere place' in co**ercial pro'uction b- #en+uet, ()$) Realt-
shoul' be entitle' to a ro-alt- of fi!e percent :5B; of net realiCable !alue,
an' to ro-alt- for an- pro'uction 'one b- #en+uet =hether 'urin+ the
e3a*ination or 'e!elop*ent perio's)
5
I') at ..0..5)
4
I') at 7572)
Thus, on %u+ust <, .<2<, the E3ecuti!e VicePresi'ent of #en+uet,
%ntonio N) Tachulin+, issue' a letter infor*in+ ()$) Realt- of its intention to
'e!elop the *inin+ clai*s) Do=e!er, on ,ebruar- <, .<<<, ()$) Realt-,
throu+h its Presi'ent, (ohnn- &) Tan, then sent a letter to the Presi'ent of
#en+uet infor*in+ the latter that it =as ter*inatin+ the R%>OP on the
follo=in+ +roun's:
a) The fact that -our co*pan- has faile' to perfor* the
obli+ations set forth in the R%>OP, i)e), to un'erta6e 'e!elop*ent =or6s
=ithin 0 -ears fro* the e3ecution of the %+ree*entE
b) Violation of the Contract b- allo=in+ hi+h +ra'ers to operate
on our clai*)
c) No stipulation =as pro!i'e' =ith respect to the ter* li*it of
the R%>OP)
') Nonpa-*ent of the ro-alties thereon as pro!i'e' in the
R%>OP)
7
In response, #en+uet?s Mana+er for &e+al Ser!ices, Re-nal'o P)
Men'oCa, =rote ()$) Realt- a letter 'ate' March 2, .<<<,
2
therein alle+in+
that #en+uet co*plie' =ith its obli+ations un'er the R%>OP b- in!estin+
PhP 80)8 *illion to rehabilitate the *ines, an' that the co**ercial operation
=as ha*pere' b- the nonissuance of a Mines Te*porar- Per*it b- the
Mines an' $eosciences #ureau :M$#; =hich *ust be consi'ere' as force
majeure, entitlin+ #en+uet to an e3tension of ti*e to prosecute such per*it)
#en+uet further clai*e' that the hi+h +ra'ers *entione' b- ()$) Realt- =ere
alrea'- operatin+ prior to #en+uet?s ta6in+ o!er of the pre*ises, an' that
()$) Realt- ha' the obli+ation of e9ectin+ such s*all scale *iners) #en+uet
also alle+e' that the nature of the *inin+ business *a'e it 'ifficult to specif-
a ti*e li*it for the R%>OP) #en+uet then ar+ue' that the ro-alties 'ue to
()$) Realt- =ere in fact in its office an' rea'- to be pic6e' up at an- ti*e) It
appeare' that, pre!iousl-, the practice b- ()$) Realt- =as to pic6up chec6s
fro* #en+uet representin+ such ro-alties) Do=e!er, startin+ %u+ust .<<8,
()$) Realt- alle+e'l- refuse' to collect such chec6s fro* #en+uet) Thus,
#en+uet posite' that there =as no !ali' +roun' for the ter*ination of the
7
I') at 010)
2
I') at ..2..<)
R%>OP) It also re*in'e' ()$) Realt- that it shoul' sub*it the 'isa+ree*ent
to arbitration rather than unilaterall- ter*inatin+ the R%>OP)
On (une 7, 0111, ()$) Realt- file' a Petition for Declaration of
Nullit-@Cancellation of the R%>OP
<
=ith the &e+aspi Cit- PO%, Re+ion V,
'oc6ete' as DENR Case No) 01111. an' entitle' J.G. Realty v. Benguet)
On March .<, 011., the PO% issue' a Decision,
.1
'=ellin+ upon the
issues of :.; =hether the arbitrators ha' 9uris'iction o!er the caseE an' :0;
=hether #en+uet !iolate' the R%>OP 9ustif-in+ the unilateral cancellation
of the R%>OP b- ()$) Realt-) The 'ispositi!e portion state':
>DERE,ORE, pre*ises consi'ere', the (une 1., .<27 FR%>OPG
an' its Supple*ental %+ree*ent is hereb- 'eclare' cancelle' an' =ithout
effect) #EN$UET is hereb- e3clu'e' fro* the 9oint MPS% %pplication
o!er the *ineral clai*s 'eno*inate' as H#ONITOII, H#ONITOIII,
H#ONITOIIII an' H#ONITOIVI)
SO ORDERED)
Therefro*, #en+uet file' a Notice of %ppeal
..
=ith the M%# on %pril
0/, 011., 'oc6ete' as Mines %'*inistrati!e Case No) RM01111.)
Thereafter, the M%# issue' the assaile' Dece*ber 0, 0110 Decision)
#en+uet then file' a Motion for Reconsi'eration of the assaile' Decision
=hich =as 'enie' in the March .7, 0118 Resolution of the M%#) Dence,
#en+uet file' the instant petition)
T"# I&&'#&
.) There =as serious an' palpable error =hen the Donorable
#oar' faile' to rule that the contractual obli+ation of the parties to
arbitrate un'er the Ro-alt- %+ree*ent is *an'ator-)
0) The Donorable #oar' e3cee'e' its 9uris'iction =hen it
sustaine' the cancellation of the Ro-alt- %+ree*ent for alle+e' breach of
contract 'espite the absence of e!i'ence)
<
I') at 0.50.<)
.1
I') at 8087)
..
I') at 82)
/) The "uestione' Decision of the Donorable #oar' in cancellin+
the R%>OP pre9u'iceF'G the substantial ri+hts of #en+uet un'er the
contract to the un9ust enrich*ent of ($ Realt-)
.0
Restate', the issues are: :.; Shoul' the contro!ers- ha!e first been
sub*itte' to arbitration before the PO% too6 co+niCance of the caseJE :0;
>as the cancellation of the R%>OP supporte' b- e!i'enceJE an' :/; Di' the
cancellation of the R%>OP a*ount to un9ust enrich*ent of ()$) Realt- at
the e3pense of #en+uetJ
T"# Co'(%)& R'*+n,
#efore =e '=ell on the substanti!e issues, =e fin' that the instant
petition can be 'enie' outri+ht as #en+uet resorte' to an i*proper re*e'-)
The last para+raph of Section 7< of Republic %ct No) :R%; 7<80 or
the HPhilippine Minin+ %ct of .<<5I states, H% petition for re!ie= b-
certiorari an' Auestion of la= *a- be file' b- the a++rie!e' part- =ith the
Supre*e Court =ithin thirt- :/1; 'a-s fro* receipt of the or'er or 'ecision
of the FM%#G)I
Do=e!er, this Court has alrea'- in!ali'ate' such pro!ision in Carpio
v. Sulu Resources Development Corp.,
./
rulin+ that a 'ecision of the M%#
*ust first be appeale' to the Court of %ppeals :C%; un'er Rule 8/ of the
Rules of Court, before recourse to this Court *a- be ha') >e hel', thus:
To su**ariCe, there are sufficient le+al footin+s authoriCin+ a
re!ie= of the M%# Decision un'er Rule 8/ of the Rules of Court) First,
Section /1 of %rticle VI of the .<27 Constitution, *an'ates that HFnGo la=
shall be passe' increasin+ the appellate 9uris'iction of the Supre*e Court
as pro!i'e' in this Constitution =ithout its a'!ice an' consent)I On the
other han', Section 7< of R% No) 7<80 pro!i'es that 'ecisions of the
M%# *a- be re!ie=e' b- this Court on a Hpetition for re!ie= b-
certiorari)I This pro!ision is ob!iousl- an e3pansion of the Court?s
appellate 9uris'iction, an e3pansion to =hich this Court has not consente')
In'iscri*inate enact*ent of le+islation enlar+in+ the appellate 9uris'iction
of this Court =oul' unnecessaril- bur'en it)
Second, =hen the Supre*e Court, in the e3ercise of its rule
.0
I') at 2, .8 K .2, respecti!el-)
./
$)R) No) .82047, %u+ust 2, 0110, /27 SCR% .02)
*a6in+ po=er, transfers to the C% pen'in+ cases in!ol!in+ a re!ie= of a
Auasi9u'icial bo'-?s 'ecisions, such transfer relates onl- to proce'ureE
hence, it 'oes not i*pair the substanti!e an' !este' ri+hts of the parties)
The a++rie!e' part-?s ri+ht to appeal is preser!e'E =hat is chan+e' is onl-
the proce'ure b- =hich the appeal is to be *a'e or 'eci'e') The parties
still ha!e a re*e'- an' a co*petent tribunal to +rant this re*e'-)
!ird, the Re!ise' Rules of Ci!il Proce'ure inclu'e' Rule 8/ to
pro!i'e a unifor* rule on appeals fro* Auasi9u'icial a+encies) Un'er the
rule, appeals fro* their 9u'+*ents an' final or'ers are no= reAuire' to be
brou+ht to the C% on a !erifie' petition for re!ie=) % Auasi9u'icial
a+enc- or bo'- has been 'efine' as an or+an of +o!ern*ent, other than a
court or le+islature, =hich affects the ri+hts of pri!ate parties throu+h
either a'9u'ication or rule*a6in+) M%# falls un'er this 'efinitionE hence,
it is no 'ifferent fro* the other Auasi9u'icial bo'ies enu*erate' un'er
Rule 8/) #esi'es, the intro'uctor- =or's in Section . of Circular No) .
<.LLHa*on+ these a+encies areILLin'icate that the enu*eration is not
e3clusi!e or conclusi!e an' ac6no=le'+e the e3istence of other Auasi
9u'icial a+encies =hich, thou+h not e3pressl- liste', shoul' be 'ee*e'
inclu'e' therein)
Fourt!, the Court realiCes that un'er #atas Pa*bansa :#P; #l+)
.0< as a*en'e' b- R% No) 7<10, factual contro!ersies are usuall-
in!ol!e' in 'ecisions of Auasi9u'icial bo'iesE an' the C%, =hich is
li6e=ise tas6e' to resol!e Auestions of fact, has *ore elbo= roo* to
resol!e the*) #- inclu'in+ Auestions of fact a*on+ the issues that *a- be
raise' in an appeal fro* Auasi9u'icial a+encies to the C%, Section / of
Re!ise' %'*inistrati!e Circular No) .<5 an' Section / of Rule 8/
e3plicitl- e3pan'e' the list of such issues)
%ccor'in+ to Section / of Rule 8/, HFaGn appeal un'er this Rule
*a- be ta6en to the Court of %ppeals =ithin the perio' an' in the *anner
herein pro!i'e' =hether the appeal in!ol!es Auestions of fact, of la=, or
*i3e' Auestions of fact an' la=)I Dence, appeals fro* Auasi9u'icial
a+encies e!en onl- on Auestions of la= *a- be brou+ht to the C%)
Fift!, the 9u'icial polic- of obser!in+ the hierarch- of courts
'ictates that 'irect resort fro* a'*inistrati!e a+encies to this Court =ill
not be entertaine', unless the re'ress 'esire' cannot be obtaine' fro* the
appropriate lo=er tribunals, or unless e3ceptional an' co*pellin+
circu*stances 9ustif- a!ail*ent of a re*e'- fallin+ =ithin an' callin+ for
the e3ercise of our pri*ar- 9uris'iction)
.8
The abo!e principle =as reiterate' in "sap!il Construction and
Development Corporation v. uason, Jr) :"sap!il;)
.5
Do=e!er, the Carpio
rulin+ =as not applie' to "sap!il as the petition in the latter case =as file' in
.<<< or three -ears before the pro*ul+ation of Carpio in 0110) Dere, the
petition =as file' on %pril 02, 0118 =hen the Carpio 'ecision =as alrea'-
applicable, thus #en+uet shoul' ha!e file' the appeal =ith the C%)
.8
I') at ./2.8.)
.5
$)R) No) ./81/1, %pril 05, 0114, 822 SCR% .04, .//)
Petitioner ha!in+ faile' to properl- appeal to the C% un'er Rule 8/,
the 'ecision of the M%# has beco*e final an' e3ecutor-) On this +roun'
alone, the instant petition *ust be 'enie')
E!en if =e entertain the petition althou+h #en+uet s6irte' the appeal
to the C% !ia Rule 8/, still, the Dece*ber 0, 0110 Decision an' March .7,
0118 Resolution of the DENRM%# in M%# Case No) 1.081. shoul' be
*aintaine')
F+(&% I&&'#! T"# $a&# &"o'*d "a-# .+(&% /##n /(o',"% %o
-o*'n%a(0 a(/+%(a%+on /#.o(# %"# POA
Secs) ..)1. an' ..)10 of the R%>OP pertinentl- pro!i'e:
..)1. %rbitration
%n- 'isputes, 'ifferences or 'isa+ree*ents bet=een #EN$UET
an' the O>NER =ith reference to an-thin+ =hatsoe!er pertainin+ to this
%+ree*ent that cannot be a*icabl- settle' b- the* shall not be cause of
an- action of an- 6in' =hatsoe!er in an- court or a'*inistrati!e a+enc-
but shall, upon notice of one part- to the other, be referre' to a #oar' of
%rbitrators consistin+ of three :/; *e*bers, one to be selecte' b-
#EN$UET, another to be selecte' b- the O>NER an' the thir' to be
selecte' b- the afore*entione' t=o arbitrators so appointe')
3 3 3 3
..)10 Court %ction
No action shall be institute' in court as to an- *atter in 'ispute as
hereinabo!e state', e3cept to enforce the 'ecision of the *a9orit- of the
%rbitrators)
.4
Thus, #en+uet ar+ues that the PO% shoul' ha!e first referre' the case
to !oluntar- arbitration before ta6in+ co+niCance of the case, citin+ Sec) 0 of
R% 274 on persons an' *atters sub9ect to arbitration)
On the other han', in 'en-in+ such ar+u*ent, the PO% rule' that:
.4
Rollo, p) <1)
>hile the parties *a- establish such stipulations clauses, ter*s
an' con'itions as the- *a- 'ee* con!enient, the sa*e *ust not be
contrar- to la= an' public polic-) %t a +lance, there is nothin+ =ron+ =ith
the ter*s an' con'itions of the a+ree*ent) #ut to state that an a++rie!e'
part- cannot initiate an action =ithout +oin+ to arbitration =oul' be t-in+
one?s han' e!en if there is a la= =hich allo=s hi* to 'o so)
.7
The M%#, *ean=hile, 'enie' #en+uet?s contention on the +roun' of
estoppel, statin+:
#esi'es, b- its o=n act, #en+uet is alrea'- estoppe' in Auestionin+
the 9uris'iction of the Panel of %rbitrators to hear an' 'eci'e the case) %s
pointe' out in the appeale' Decision, #en+uet initiate' an' file' an
%'!erse Clai* 'oc6ete' as M%CRM011110 o!er the sa*e *inin+
clai*s =ithout un'er+oin+ contractual arbitration) In this particular case
:M%CRM011110; no= sub9ect of the appeal, #en+uet is li6e=ise in
estoppel fro* Auestionin+ the co*petence of the Panel of %rbitrators to
hear an' 'eci'e in the su**ar- procee'in+s ()$) Realt-?s petition, =hen
#en+uet itself 'i' not *erel- *o!e for the 'is*issal of the case but also
file' an %ns=er =ith counterclai* see6in+ affir*ati!e reliefs fro* the
Panel of %rbitrators)
.2
Moreo!er, the M%# rule' that the contractual pro!ision on arbitration
*erel- pro!i'es for an a''itional foru* or !enue an' 'oes not 'i!est the
PO% of the 9uris'iction to hear the case)
.<
In its (ul- 01, 0118 Co**ent,
01
()$) Realt- reiterate' the abo!e
rulin+s of the PO% an' M%#) It ar+ue' that R% 7<80 or the HPhilippine
Minin+ %ct of .<<5I is a special la= =hich shoul' pre!ail o!er the
stipulations of the parties an' o!er a +eneral la=, such as R% 274) It also
ar+ue' that the PO% cannot be consi'ere' as a HcourtI un'er the
conte*plation of R% 274 an' that 9urispru'ence sa-in+ that there *ust be
prior resort to arbitration before filin+ a case =ith the courts is inapplicable
to the instant case as the PO% is itself alrea'- en+a+e' in arbitration)
On this issue, =e rule for #en+uet)
Sec) 0 of R% 274 eluci'ates the scope of arbitration:
.7
I') at 88)
.2
I') at /.)
.<
I') at /0)
01
I') at .5107/)
Section 0) #ersons and matters su$ject to ar$itration.LLT1o o(
2o(# 3#(&on& o( 3a(%+#& 2a0 &'/2+% %o %"# a(/+%(a%+on o. on# o( 2o(#
a(/+%(a%o(& an0 $on%(o-#(&0 #4+&%+n, /#%1##n %"#2 a% %"# %+2# o. %"#
&'/2+&&+on and 1"+$" 2a0 /# %"# &'/5#$% o. an a$%+on, o( %"# 3a(%+#&
%o an0 $on%(a$% 2a0 +n &'$" $on%(a$% a,(## %o &#%%*# /0 a(/+%(a%+on a
$on%(o-#(&0 %"#(#a.%#( a(+&+n, /#%1##n %"#2. S'$" &'/2+&&+on o(
$on%(a$% &"a** /# -a*+d, #n.o($#a/*# and +((#-o$a/*#, &a-# '3on &'$"
,(o'nd& a& #4+&% a% *a1 .o( %"# (#-o$a%+on o. an0 $on%(a$%.
Such sub*ission or contract *a- inclu'e AuestionFsG arisin+ out of
!aluations, appraisals or other contro!ersies =hich *a- be collateral,
inci'ental, prece'ent or subseAuent to an- issue bet=een the parties)
:E*phasis supplie');
In R% <025 or the H%lternati!e Dispute Resolution %ct of 0118,I the
Con+ress reiterate' the efficac- of arbitration as an alternati!e *o'e of
'ispute resolution b- statin+ in Sec) /0 thereof that 'o*estic arbitration shall
still be +o!erne' b- R% 274) Clearl-, a contractual stipulation that reAuires
prior resort to !oluntar- arbitration before the parties can +o 'irectl- to court
is not ille+al an' is in fact pro*ote' b- the State) Thus, petitioner correctl-
cites se!eral cases =hereb- arbitration clauses ha!e been uphel' b- this
Court)
0.
Moreo!er, the contention that R% 7<80 pre!ails o!er R% 274
presupposes a conflict bet=een the t=o la=s) Such is not the case here) To
reiterate, a!ail*ent of !oluntar- arbitration before resort is *a'e to the
courts or Auasi9u'icial a+encies of the +o!ern*ent is a !ali' contractual
stipulation that *ust be a'here' to b- the parties) %s state' in Secs) 4 an' 7
of R% 274:
Section 4) %earing $y court.LLA 3a(%0 a,,(+#-#d /0 %"# .a+*'(#,
n#,*#$% o( (#.'&a* o. ano%"#( %o 3#(.o(2 'nd#( an a,(##2#n% +n
1(+%+n, 3(o-+d+n, .o( a(/+%(a%+on 2a0 3#%+%+on %"# $o'(% .o( an o(d#(
d+(#$%+n, %"a% &'$" a(/+%(a%+on 3(o$##d +n %"# 2ann#( 3(o-+d#d .o( +n
&'$" a,(##2#n%) ,i!e 'a-s notice in =ritin+ of the hearin+ of such
application shall be ser!e' either personall- or b- re+istere' *ail upon the
part- in 'efault) T"# $o'(% &"a** "#a( %"# 3a(%+#&, and '3on /#+n,
&a%+&.+#d %"a% %"# 2a6+n, o. %"# a,(##2#n% o( &'$" .a+*'(# %o $o23*0
%"#(#1+%" +& no% +n +&&'#, &"a** 2a6# an o(d#( d+(#$%+n, %"# 3a(%+#& %o
0.
BF Corporation v. C", $)R) No) .01.15, March 07, .<<2, 022 SCR% 047E #uromines v. C",
$)R) No) <.002, March 00, .<</, 001 SCR% 02.E General &nsurance and Surety Corporation v. 'nion
&nsurance Society of Canton, et al., $)R) Nos) /187574, No!e*ber 00, .<2<, .7< SCR% 5/1E Gascon v.
"rroyo, $)R) No) 72/2<, October .4, .<2<, .72 SCR% 520E Bengson v. C!an, No) &0702/, (ul- 0<, .<77,
72 SCR% ../E Mindanao #ortland Cement Corporation v. McDonoug! Construction Company of Florida,
No) &0//<1, %pril 08, .<47, .< SCR% 212)
3(o$##d %o a(/+%(a%+on +n a$$o(dan$# 1+%" %"# %#(2& o. %"# a,(##2#n%.
I. %"# 2a6+n, o. %"# a,(##2#n% o( d#.a'*% /# +n +&&'# %"# $o'(% &"a**
3(o$##d %o &'22a(+*0 "#a( &'$" +&&'#. I. %"# .+nd+n, /# %"a% no
a,(##2#n% +n 1(+%+n, 3(o-+d+n, .o( a(/+%(a%+on 1a& 2ad#, o( %"a%
%"#(# +& no d#.a'*% +n %"# 3(o$##d+n, %"#(#'nd#(, %"# 3(o$##d+n, &"a**
/# d+&2+&&#d. I. %"# .+nd+n, /# %"a% a 1(+%%#n 3(o-+&+on .o( a(/+%(a%+on
1a& 2ad# and %"#(# +& a d#.a'*% +n 3(o$##d+n, %"#(#'nd#(, an o(d#(
&"a** /# 2ad# &'22a(+*0 d+(#$%+n, %"# 3a(%+#& %o 3(o$##d 1+%" %"#
a(/+%(a%+on +n a$$o(dan$# 1+%" %"# %#(2& %"#(#o..
3 3 3 3
Section 7) Stay of civil action.LLIf an- suit or procee'in+ be
brou+ht upon an issue arisin+ out of an a+ree*ent pro!i'in+ for the
arbitration thereof, the court in =hich such suit or procee'in+ is pen'in+,
upon bein+ satisfie' that the issue in!ol!e' in such suit or procee'in+ is
referable to arbitration, shall sta- the action or procee'in+ until an
arbitration has been ha' in accor'ance =ith the ter*s of the a+ree*ent:
Pro!i'e', That the applicant, for the sta- is not in 'efault in procee'in+
=ith such arbitration) :E*phasis supplie');
In other =or's, in the e!ent a case that shoul' properl- be the sub9ect
of !oluntar- arbitration is erroneousl- file' =ith the courts or Auasi9u'icial
a+encies, on *otion of the 'efen'ant, the court or Auasi9u'icial a+enc- shall
'eter*ine =hether such contractual pro!ision for arbitration is sufficient an'
effecti!e) If in affir*ati!e, the court or Auasi9u'icial a+enc- shall then or'er
the enforce*ent of sai' pro!ision) #esi'es, in BF Corporation v. Court of
"ppeals, =e alrea'- rule':
In this connection, it bears stressin+ that the lo=er court has not
lost its 9uris'iction o!er the case) Section 7 of Republic %ct No) 274
pro!i'es that procee'in+s therein ha!e onl- been sta-e') %fter the special
procee'in+ of arbitration has been pursue' an' co*plete', then the lo=er
court *a- confir* the a=ar' *a'e b- the arbitrator)
00
()$) Realt-?s contention, that prior resort to arbitration is una!ailin+ in
the instant case because the PO%?s *an'ate is to arbitrate 'isputes in!ol!in+
*ineral a+ree*ents, is *isplace') % 'istinction *ust be *a'e bet=een
!oluntar- an' co*pulsor- arbitration) In (udo and (uym Corporation v.
Saordino, the Court ha' the occasion to 'istin+uish bet=een the t=o t-pes of
arbitrations:
Co*parati!el-, in Reformist 'nion of R.B. (iner, &nc. vs. )(RC,
co*pulsor- arbitration has been 'efine' both as Hthe process of settle*ent
of labor 'isputes b- a ,o-#(n2#n% a,#n$0 1"+$" "a& %"# a'%"o(+%0 %o
00
Supra at 025)
+n-#&%+,a%# and %o 2a6# an a1a(d =hich is bin'in+ on all the parties,
an' as a *o'e of arbitration =here the parties are co*pelle' to accept the
resolution of their 'ispute throu+h arbitration b- a thir' part-)I >hile a
!oluntar- arbitrator is no% 3a(% o. %"# ,o-#(n2#n%a* 'n+% o( *a/o(
d#3a(%2#n%)& 3#(&onn#*, sai' arbitrator ren'ers arbitration ser!ices
pro!i'e' for un'er labor la=s)
0/
:E*phasis supplie');
There is a clear 'istinction bet=een co*pulsor- an' !oluntar-
arbitration) The arbitration pro!i'e' b- the PO% is co*pulsor-, =hile the
nature of the arbitration pro!ision in the R%>OP is !oluntar-, not in!ol!in+
an- +o!ern*ent a+enc-) Thus, ()$) Realt-?s ar+u*ent on this *atter *ust
fail)
%s to ()$) Realt-?s contention that the pro!isions of R% 274 cannot
appl- to the instant case =hich in!ol!es an a'*inistrati!e a+enc-, it *ust be
pointe' out that Section ..)1. of the R%>OP states that:
F%n- contro!ers- =ith re+ar' to the contractG shall not be cause of
an- action of an- 6in' =hatsoe!er in an- court or ad2+n+&%(a%+-# a,#n$0
but shall, upon notice of one part- to the other, be referre' to a #oar' of
%rbitrators consistin+ of three :/; *e*bers, one to be selecte' b-
#EN$UET, another to be selecte' b- the O>NER an' the thir' to be
selecte' b- the afore*entione' t=o arbiters so appointe')
08
:E*phasis
supplie');
There can be no Auibblin+ that PO% is a Auasi9u'icial bo'- =hich
for*s part of the DENR, an a'*inistrati!e a+enc-) Dence, the pro!ision on
*an'ator- resort to arbitration, freel- entere' into b- the parties, *ust be
hel' bin'in+ a+ainst the*)
05
In su*, on the issue of =hether PO% shoul' ha!e referre' the case to
!oluntar- arbitration, =e fin' that, in'ee', PO% has no 9uris'iction o!er the
'ispute =hich is +o!erne' b- R% 274, the arbitration la=)
Do=e!er, =e fin' that #en+uet is alrea'- estoppe' fro* Auestionin+
the PO%?s 9uris'iction) %s it =ere, =hen ()$) Realt- file' DENR Case No)
01111., #en+uet file' its ans=er an' participate' in the procee'in+s before
0/
$)R) No) .81<41, (anuar- 01, 011/, /<5 SCR% 85., 857852)
08
Rollo, p) <1)
05
C!an v. C", $)R) No) .87<<<, ,ebruar- 07, 0118, 808 SCR% .07, ./8)
the PO%, Re+ion V) Secon'l-, =hen the a'!erse March .<, 011. PO%
Decision =as ren'ere', it file' an appeal =ith the M%# in Mines
%'*inistrati!e Case No) RM01111. an' a+ain participate' in the M%#
procee'in+s) >hen the a'!erse Dece*ber 0, 0110 M%# Decision =as
pro*ul+ate', it file' a *otion for reconsi'eration =ith the M%#) >hen the
a'!erse March .7, 0118 M%# Resolution =as issue', #en+uet file' a
petition =ith this Court pursuant to Sec) 7< of R% 7<80 i*plie'l-
reco+niCin+ M%#?s 9uris'iction) In this factual *ilieu, the Court rules that
the 9uris'iction of PO% an' that of M%# can no lon+er be Auestione' b-
#en+uet at this late hour) >hat #en+uet shoul' ha!e 'one =as to
i**e'iatel- challen+e the PO%?s 9uris'iction b- a special ci!il action for
certiorari =hen PO% rule' that it has 9uris'iction o!er the 'ispute) To re'o
the procee'in+s full- participate' in b- the parties after the lapse of se!en
-ears fro* 'ate of institution of the ori+inal action =ith the PO% =oul' be
anathe*a to the spee'- an' efficient a'*inistration of 9ustice)
S#$ond I&&'#! T"# $an$#**a%+on o. %"# RA7OP
1a& &'33o(%#d /0 #-+d#n$#
The cancellation of the R%>OP b- the PO% =as base' on t=o
+roun's: :.; #en+uet?s failure to pa- ()$) Realt-?s ro-alties for the *inin+
clai*sE an' :0; #en+uet?s failure to seriousl- pursue MPS% %pplication No)
%PS%V111< o!er the *inin+ clai*s)
%s to the ro-alties, #en+uet clai*s that the chec6s representin+
pa-*ents for the ro-alties of ()$) Realt- =ere a!ailable for pic6up in its
office an' it is the latter =hich refuse' to clai* the*) #en+uet then thus
conclu'es that it 'i' not !iolate the R%>OP for nonpa-*ent of ro-alties)
,urther, #en+uet reasons that ()$) Realt- has the bur'en of pro!in+ that the
for*er 'i' not pa- such ro-alties follo=in+ the principle that the
co*plainants *ust pro!e their affir*ati!e alle+ations)
>ith re+ar' to the failure to pursue the MPS% application, #en+uet
clai*s that the len+th- ti*e of appro!al of the application is 'ue to the
failure of the M$# to appro!e it) In other =or's, #en+uet ar+ues that the
appro!al of the application is solel- in the han's of the M$#)
#en+uet?s ar+u*ents are bereft of *erit)
Sec) .8)15 of the R%>OP pro!i'es:
.8)15 #an6 %ccount
O>NER shall *aintain a ban6 account at MMMMMMMMMMM or an-
other ban6 fro* ti*e to ti*e selecte' b- O>NER =ith notice in =ritin+
to #EN$UET =here #EN$UET shall 'eposit to the O>NER?s cre'it an-
an' all a'!ances an' pa-*ents =hich *a- beco*e 'ue the O>NER
un'er this %+ree*ent as =ell as the purchase price herein a+ree' upon in
the e!ent that #EN$UET shall e3ercise the option to purchase pro!i'e'
for in the %+ree*ent) An0 and a** d#3o&+%& &o 2ad# /0 BENGUET &"a**
/# a .'** and $o23*#%# a$8'+%%an$# and (#*#a&# %o FsicG BENGUET
.(o2 an0 .'(%"#( *+a/+*+%0 %o %"# O7NER o. %"# a2o'n%& (#3(#&#n%#d
/0 &'$" d#3o&+%&. :E*phasis supplie');
E!i'entl-, the R%>OP itself pro!i'es for the *o'e of ro-alt-
pa-*ent b- #en+uet) The fact that there =as the pre!ious practice =hereb-
()$) Realt- pic6e'up the chec6s fro* #en+uet is una!ailin+) The *o'e of
pa-*ent is e*bo'ie' in a contract bet=een the parties) %s such, the contract
*ust be consi'ere' as the la= bet=een the parties an' bin'in+ on both)
04
Thus, after ()$) Realt- infor*e' #en+uet of the ban6 account =here
'eposits of its ro-alties *a- be *a'e, #en+uet ha' the obli+ation to 'eposit
the chec6s) ()$) Realt- ha' no obli+ation to furnish #en+uet =ith a #oar'
Resolution consi'erin+ that the R%>OP itself pro!i'e' for such pa-*ent
sche*e)
Notabl-, #en+uet?s clai* that ()$) Realt- *ust pro!e nonpa-*ent of
its ro-alties is both illo+ical an' unsupporte' b- la= an' 9urispru'ence)
04
CIVI& CODE, %rts) ..5< K ./12)
The alle+ation of nonpa-*ent is not a positi!e alle+ation as clai*e'
b- #en+uet) Rather, such is a ne+ati!e alle+ation that 'oes not reAuire proof
an' in fact transfers the bur'en of proof to #en+uet) Thus, this Court rule'
in Jimene* v) )ational (a$or Relations Commission:
%s a +eneral rule, one =ho plea's pa-*ent has the bur'en of
pro!in+ it) E!en =here the plaintiff *ust alle+e nonpa-*ent, the +eneral
rule is that the bur'en rests on the 'efen'ant to pro!e pa-*ent, rather than
on the plaintiff to pro!e nonpa-*ent) T"# d#/%o( "a& %"# /'(d#n o.
&"o1+n, 1+%" *#,a* $#(%a+n%0 %"a% %"# o/*+,a%+on "a& /##n d+&$"a(,#d
/0 3a02#n%.
07
:E*phasis supplie');
In the instant case, the obli+ation of #en+uet to pa- ro-alties to ()$)
Realt- has been a'*itte' an' supporte' b- the pro!isions of the R%>OP)
Thus, the bur'en to pro!e such obli+ation rests on #en+uet)
It shoul' also be borne in *in' that MPS% %pplication No) %PS%V
111< has been pen'in+ =ith the M$# for a consi'erable len+th of ti*e)
#en+uet, in the R%>OP, obli+ate' itself to perfect the ri+hts to the *inin+
clai*s an'@or other=ise acAuire the *inin+ ri+hts to the *ineral clai*s but
faile' to present an- e!i'ence sho=in+ that it e3erte' efforts to spee' up an'
ha!e the application appro!e') In fact, #en+uet ne!er e!en alle+e' that it
continuousl- follo=e'up the application =ith the M$# an' that it =as in
constant co**unication =ith the +o!ern*ent a+enc- for the e3pe'itious
resolution of the application) Such alle+ations =oul' sho= that, in'ee',
#en+uet =as re*iss in prosecutin+ the MPS% application an' clearl- faile'
to co*pl- =ith its obli+ation in the R%>OP)
T"+(d I&&'#! T"#(# +& no 'n5'&% #n(+$"2#n% +n %"# +n&%an% $a&#
#ase' on the fore+oin+ 'iscussion, the cancellation of the R%>OP
=as base' on !ali' +roun's an' is, therefore, 9ustifie') The necessar-
i*plication of the cancellation is the cessation of #en+uet?s ri+ht to
prosecute MPS% %pplication No) %PS%V111< an' to further 'e!elop such
*inin+ clai*s)
07
$)R) No) ..4<41, %pril 0, .<<4, 054 SCR% 28, 2<)
In Car Cool #!ilippines, &nc. v. 's!io Realty and Development
Corporation, =e 'efine' un9ust enrich*ent, as follo=s:
>e ha!e hel' that HFtGhere is un9ust enrich*ent =hen a person
'n5'&%*0 retains a benefit to the loss of another, or =hen a person retains
*one- or propert- of another a+ainst the fun'a*ental principles of 9ustice,
eAuit- an' +oo' conscience)I %rticle 00 of the Ci!il Co'e pro!i'es that
HFeG!er- person =ho throu+h an act of perfor*ance b- another, or an-
other *eans, acAuires or co*es into possession of so*ethin+ at the
e3pense of the latter =ithout 9ust or le+al +roun', shall return the sa*e to
hi*)I The principle of un9ust enrich*ent un'er %rticle 00 reAuires t=o
con'itions: :.; that a person is benefite' =ithout a !ali' basis or
9ustification, an' :0; that such benefit is 'eri!e' at another?s e3pense or
'a*a+e)
T"#(# +& no 'n5'&% #n(+$"2#n% 1"#n %"# 3#(&on 1"o 1+**
/#n#.+% "a& a -a*+d $*a+2 %o &'$" /#n#.+%.
02
:E*phasis supplie');
Clearl-, there is no un9ust enrich*ent in the instant case as the
cancellation of the R%>OP, =hich left #en+uet =ithout an- le+al ri+ht to
participate in further 'e!elopin+ the *inin+ clai*s, =as brou+ht about b- its
!iolation of the R%>OP) Dence, #en+uet has no one to bla*e but itself for
its pre'ica*ent)
79EREFORE, =e DISMISS the petition, an' AFFIRM the
Dece*ber 0, 0110 Decision an' March .7, 0118 Resolution of the DENR
M%# in M%# Case No) 1.081. uphol'in+ the cancellation of the (une .,
.<27 R%>OP) No costs)
SO ORDERED.
PRESBITERO J. VELASCO, JR.
%ssociate (ustice
>E CONCUR:
LEONARDO A. :UISUMBING
02
$)R) No) ./2122, (anuar- 0/, 0114, 87< SCR% 818, 8.08./)
%ssociate (ustice
Chairperson
ANTONIO T. CARPIO CONC9ITA CARPIO MORALES
%ssociate (ustice %ssociate (ustice
DANTE O. TINGA
%ssociate (ustice
A T T E S T A T I O N
I attest that the conclusions in the abo!e Decision ha' been reache' in
consultation before the case =as assi+ne' to the =riter of the opinion of the
Court?s Di!ision)
LEONARDO A. :UISUMBING
%ssociate (ustice
Chairperson
C E R T I F I C A T I O N
Pursuant to Section ./, %rticle VIII of the Constitution, an' the
Di!ision Chairperson?s %ttestation, I certif- that the conclusions in the
abo!e Decision ha' been reache' in consultation before the case =as
assi+ne' to the =riter of the opinion of the Court?s Di!ision)
RENATO S. PUNO
Chief (ustice