FYFE v PHILIPPINE AIRLINES

G.R. No. 160071. June 6, 2016.

DOCTRINE:

Appeal as a remedy is not a matter of right, but a mere statutory privilege to be exercised only in the
manner and strictly in accordance with the provisions of the law.

Facts:

Philippine Airlines Inc (PAL) underwent rehabilitation proceedings in the Securities Exchange
Commission (SEC). To convince its creditors, they decided to hire technical advisers. Peter Foster of
Cathay Pacific and Michael Scantlebury organized Regent Star Services Ltd. (Regent Star). Regent Star
and PAL entered into a Technical Services Agreement (TSA) effective for five years. Regent Star
subsequently engaged with Fyfe, Wald and Nuttall and commenced to render their services immediately
after the TSA was executed. PAL dispatched a notice to Regent Star terminating the TSA on the ground
of lack of confidence. In its notice the respondent demanded the offsetting of the penalties due with the
two year advance advisory fees it had paid to Regent Star. Regent Star proposed that the issue be
submitted to arbitration with the Philippine Dispute Resolution Center Inc (PDRCI) pursuant to the TSA.
PDRCI rendered judgment ordering PAL to pay the termination penalties. PAL filed its application to
Vacate Arbitral Award in the RTC of Manila.

Issue:

Whether or not the CA erred in dismissing their appeal for being an inappropriate remedy that a petition
for review on certiorari under Rule 45 is the sole remedy?

Held:

No. The CA emphasized that the petitioners should have led the petition for review on certiorari under
Rule 45 considering that Section 29 of the Arbitration Law has limited the ground of review to
"questions of law." Although the Special Rules of Court on Alternative Dispute Resolution provides that
the appropriate remedy from an order of the RTC vacating a domestic arbitral award is an appeal by
petition for review in the CA, not an ordinary appeal under Rule 41 of the Rules of Court, the Court
cannot set aside and reverse the assailed decision on that basis because the decision was in full accord
with the law or rule in force at the time of its promulgation.