1. Benguet and J.G. Realty entered into a RAWOP agreement in 1987 for J.G. Realty's mining claims covering 288 hectares. In 1999, J.G. Realty terminated the RAWOP, citing Benguet's failure to perform obligations.
2. In 2000, J.G. Realty filed a petition for nullification of the RAWOP with the DENR, which was affirmed by the MAB. Benguet appealed, arguing the case should have gone to arbitration first per the RAWOP.
3. The court dismissed Benguet's appeal for failing to properly appeal the MAB decision. It also ruled that per the RAWOP, the
1. Benguet and J.G. Realty entered into a RAWOP agreement in 1987 for J.G. Realty's mining claims covering 288 hectares. In 1999, J.G. Realty terminated the RAWOP, citing Benguet's failure to perform obligations.
2. In 2000, J.G. Realty filed a petition for nullification of the RAWOP with the DENR, which was affirmed by the MAB. Benguet appealed, arguing the case should have gone to arbitration first per the RAWOP.
3. The court dismissed Benguet's appeal for failing to properly appeal the MAB decision. It also ruled that per the RAWOP, the
1. Benguet and J.G. Realty entered into a RAWOP agreement in 1987 for J.G. Realty's mining claims covering 288 hectares. In 1999, J.G. Realty terminated the RAWOP, citing Benguet's failure to perform obligations.
2. In 2000, J.G. Realty filed a petition for nullification of the RAWOP with the DENR, which was affirmed by the MAB. Benguet appealed, arguing the case should have gone to arbitration first per the RAWOP.
3. The court dismissed Benguet's appeal for failing to properly appeal the MAB decision. It also ruled that per the RAWOP, the
Tinga, J p: 1. Transfield Philippines (Transfield) entered into a turn-key contract with Luzon Hydro Corp. (LHC).Under the contract, Transfield were to construct a hydro-electric plants in Benguet and Ilocos. Transfield was given the sole responsibility for the design, construction, commissioning, testing and completion of the Project. 2. The contract provides for a period for which the project is to be completed and also allows for the extension of the period provided that the extension is based on justifiable grounds such as fortuitous event. 3. During the construction of the plant, Transfield requested for extension of time citing typhoon and various disputes delaying the construction. LHC did not give due course to the extension of the period prayed for but referred the matter to arbitration committee. 4. Because of the delay in the construction of the plant, LHC called on the stand-by letters of credit because of default. However, the demand was objected by Transfield on the ground that there is still pending arbitration on their request for extension of time. 5. The disposal of the forum-shopping charge is crucial to the parties to this case on account of its profound effect on the final outcome of the international arbitral proceedings which they have chosen as their principal dispute resolution mechanism. (International Chamber of Commerce (ICC) 6. To enjoin LHC from calling on the securities and respondent banks from transferring or paying the securities in case LHC calls on them. However, in view of the fact that LHC collected the proceeds, TPI, in its appeal and petition for review asked that the same be returned and placed in escrow pending the resolution of the disputes before the ICC arbitral tribunal. 7. As a fundamental point, the pendency of arbitral proceedings does not foreclose resort to the courts for provisional reliefs. The Rules of the ICC, which governs the parties' arbitral dispute, allows the application of a party to a judicial authority for interim or conservatory measures. 8. Section 14 of Republic Act (R.A.) No. 876 (The Arbitration Law) recognizes the rights of any party to petition the court to take measures to safeguard and/or conserve any matter which is the subject of the dispute in arbitration. In addition, R.A. 9285, otherwise known as the "Alternative Dispute Resolution Act of 2004," allows the filing of provisional or interim measures with the regular courts
whenever the arbitral tribunal has no power to act or to act
effectively. 9. Meanwhile, the tribunal issued its Fifth Partial Award 29 on 30 March 2005. It contains, among others, a declaration that while LHC wrongfully drew on the securities, the drawing was made in good faith, under the mistaken assumption that the contractor, TPI, was in default. Thus, the tribunal ruled that while the amount drawn must be returned, TPI is not entitled to any damages or interests due to LHC's drawing on the securities. 10. The fact that the ICC Arbitral tribunal included the proceeds of the securities shows that it intended to make a final determination/award as to the said issue only in the Final Award and not in the previous partial awards. This supports LHC's position that when the Third Partial Award was released and Civil Case No. 04-332 was filed, TPI was not yet authorized to seek the issuance of a writ of execution since the quantification of the amounts due to TPI had not yet been settled by the ICC Arbitral tribunal. Notwithstanding the fact that the amount of proceeds drawn on the securities was not disputed the application for the enforcement of the Third Partial Award was precipitately filed. To repeat, the declarations made in the Third Partial Award do not constitute orders for the payment of money.
RCBC (P) v. BDO (R) [consolidated] | GR No. 196171 2014 | ADR |
Villarama, Jr., J p: 1. All three petitions emanated from arbitration proceedings commenced by RCBC Capital pursuant to the arbitration clause under its Share Purchase Agreement (SPA) with EPCIB involving the latter's shares in Bankard, Inc. In the course of arbitration conducted by the Tribunal constituted and administered by the International Chamber of Commerce-International Commercial Arbitration (ICC-ICA), EPCIB [Equitable PCI Bank] was merged with BDO which assumed all its liabilities and obligations. 2. G.R. No. 196171 is a petition for review, seeking to reverse the Court of Appeals (CA) Decision which reversed and set aside the order RTC of Makati City. The RTC confirmed the Second Partial Award issued by the Arbitration Tribunal ordering BDO to pay RCBC Capital proportionate share in the advance costs and dismissing BDO's counterclaims. 3. G.R. No. 199238 is a petition for certiorari, assailing the September 13, 2011 Resolution in CA-G.R. SP No. 120888 which denied BDO's application for the issuance of a stay order and/or temporary restraining order (TRO)/preliminary injunction against the RTC of Makati City. Acting upon RCBC Capital's urgent motion, the RTC issued on August 22, 2011 a writ of execution for the implementation of the court's order confirming the Final Award rendered by the Arbitration Tribunal on June 16, 2010 4. On the other hand, G.R. No. 200213, is a petition for review praying for the reversal of the CA's Decision and Resolution. The CA denied BDO's petition for certiorari and prohibition with application for issuance of a TRO and/or writ of preliminary injunction against the RTC of Makati City, the RTC denied BDO's motion for access of the computerized accounting system of Bankard, Inc. after Chairman Richard Ian Barker had denied BDO's request that it be given access to the said source of facts or data used in preparing the accounting summaries submitted in evidence before the Arbitration Tribunal. 5. In their Joint Motion and Manifestation filed in G.R. Nos. 196171 & 199238, the parties submit and pray that: a. After negotiations, the Parties have mutually agreed that it is in their best interest and general benefit to settle their differences with respect to their respective causes of action, claims or counterclaims in the RCBC Capital Petition and the BDO Petition, with a view to a renewal of their business relations
b. Thus, the parties have reached a complete, absolute and final
settlement of their claims, demands, counterclaims and causes of action arising, directly or indirectly, from the facts and circumstances giving rise to, surrounding or arising from both Petitions, and have agreed to jointly terminate and dismiss the same in accordance with their agreement. c. In view of the foregoing compromise between the Parties, BDO, RCBC Capital and Go/Shareholders, with the assistance of their respective counsels, have decided to jointly move for the termination and dismissal of the above-captioned cases with prejudice.
Benguet Co. (P) v. DENR-MAB & JG REALTY (R) | GR No. 163101
2008 | ADR | Velasco, Jr, J p: 1. On June 1, 1987, Benguet and J.G. Realty entered into a RAWOP [Royalty Agreement with Option to Purchase], wherein J.G. Realty was acknowledged as the owner of four mining claims respectively named as Bonito I to IV, with a total area of 288.8656 hectares, situated in Barangay Luklukam, Sitio Bagong Bayan, Municipality of Jose Panganiban, Camarines Norte. 2. Thus, on August 9, 1989, the Executive Vice-President of Benguet, Antonio N. Tachuling, issued a letter informing J.G. Realty of its intention to develop the mining claims. However, on February 9, 1999, J.G. Realty, through its President, Johnny L. Tan, then sent a letter to the President of Benguet informing the latter that it was terminating the RAWOP on the following grounds: a. The fact that your company has failed to perform the obligations set forth in the RAWOP, i.e., to undertake development works within 2 years from the execution of the Agreement; b. Violation of the Contract by allowing high graders to operate on our claim. c. No stipulation was provided with respect to the term limit of the RAWOP. d. Non-payment of the royalties thereon as provided in the RAWOP. 3. On June 7, 2000, J.G. Realty filed a Petition for Declaration of Nullity/Cancellation of the RAWOP with the Legaspi City POA, Region V, docketed as DENR Case No. 2000-01 and entitled J.G. Realty v. Benguet. 4. DENR-MAP POA [Panel of Arbitrators]: declared the RAWOP cancelled. 5. MAB [Mines Adjudication Board]: affirmed POA. 6. Should the controversy have first been submitted to arbitration before the POA took cognizance of the case? 7. HELD: On correctness of appeal: Petitioner having failed to properly appeal to the CA under Rule 43, the decision of the MAB has become final and executory. On this ground alone, the instant petition must be denied. 8. YES, the case should have first been brought to voluntary arbitration before the POA. Secs. 11.01 and 11.02 of the RAWOP pertinently provide: i. 11.01 Arbitration - Any disputes, differences or disagreements between BENGUET and the OWNER with reference to anything whatsoever pertaining to this Agreement that cannot be amicably settled by them shall not be cause of any action of any kind whatsoever in any court or administrative agency but shall, upon
notice of one party to the other, be referred to a Board of
Arbitrators consisting of three (3) members, one to be selected by BENGUET, another to be selected by the OWNER and the third to be selected by the aforementioned two arbitrators so appointed. ii. 11.02 Court Action - No action shall be instituted in court as to any matter in dispute as hereinabove stated, except to enforce the decision of the majority of the Arbitrators 9. A contractual stipulation that requires prior resort to voluntary arbitration before the parties can go directly to court is not illegal and is in fact promoted by the State. 10. To reiterate, Availments of voluntary arbitration before resort is made to the courts or quasi-judicial agencies of the government is a valid contractual stipulation that must be adhered to by the parties. 11. In other words, in the event a case that should properly be the subject of voluntary arbitration is erroneously filed with the courts or quasi-judicial agencies, on motion of the defendant, the court or quasi-judicial agency shall determine whether such contractual provision for arbitration is sufficient and effective. If in affirmative, the court or quasi-judicial agency shall then order the enforcement of said provision. 12. In sum, on the issue of whether POA should have referred the case to voluntary arbitration, we find that, indeed, POA has no jurisdiction over the dispute which is governed by RA 876, the arbitration law. 13. HOWEVER, ESTOPPEL APPLIES. The Court rules that the jurisdiction of POA and that of MAB can no longer be questioned by Benguet at this late hour. What Benguet should have done was to immediately challenge the POA's jurisdiction by a special civil action for certiorari when POA ruled that it has jurisdiction over the dispute. To redo the proceedings fully participated in by the parties after the lapse of seven years from date of institution of the original action with the POA would be anathema to the speedy and efficient administration of justice.