Beruflich Dokumente
Kultur Dokumente
CHUNGFU VS CA
Petitioner Chung Fu Industries and private respondent Roblecor Philippines, Inc forged a
construction agreement - to construct and finish petitioner corporation's industrial/factory
complex in Tanawan, Tanza, Cavite for and in consideration of P42,000,000.00.
In the event of disputes arising from the performance of subject contract, it was stipulated
therein that the issue(s) shall be submitted for resolution before a single arbitrator chosen by
both parties.
Subsequent negotiations between the parties eventually led to the formulation of an arbitration
agreement which, among others, provides:
The parties mutually agree that they will abide by the decision of the arbitrator including any
amount that may be awarded to either party as compensation, consequential damage and/or
interest thereon;
The parties mutually agree that the decision of the arbitrator shall be final and unappealable.
Therefore, there shall be no further judicial recourse if either party disagrees with the whole or
any part of the arbitrator's award.
It is stated explicitly under Art. 2044 of the Civil Code that the finality of the arbitrators' award is
not absolute and without exceptions. Where the conditions described in Articles 2038, 2039 and
2040 applicable to both compromises and arbitrations are obtaining, the arbitrators' award may
be annulled or rescinded.
Additionally, under Sections 24 and 25 of the Arbitration Law, there are grounds for vacating,
modifying or rescinding an arbitrator's award. Thus, if and when the factual circumstances
referred to in the above-cited provisions are present, judicial review of the award is properly
warranted.
What if courts refuse or neglect to inquire into the factual milieu of an arbitrator's award to
determine whether it is in accordance with law or within the scope of his authority? How may
the power of judicial review be invoked? This is where the proper remedy is certiorari under
Rule 65 of the Revised Rules of Court. Even decisions of administrative agencies which are
declared "final" by law are not exempt from judicial review when so warranted.
It should be stressed, too, that voluntary arbitrators, by the nature of their functions, act in a
quasi-judicial capacity. It stands to reason, therefore, that their decisions should not be beyond
the scope of the power of judicial review of this Court.
2. BF CORPORATION V. CA
The formal requisites of an agreement to arbitrate are the following: (a) It must be in Writing (b)
It must be subscribed by the parties or their representatives.
Petitioner’s contention that there was no arbitration clause because the contract incorporating
said provision is part of a hodgepodge document is untenable. A contract, such as an arbitration
agreement, need not be contained in a single writing. It may be collected from several different
writing, which do not conflict with each other and which when connected show the parties,
subject matter, terms and conditions.
3. HI PRECISION STEEL CENTER, INC. vs LIM KIM STEEL BUILDERS, IONC
Hi-Precision entered into a contract with private respondent Steel Builders to complete a P21
Million construction project owned by the former
Steel Builders filed a "Request for Adjudication" with public respondent CIAC. In its Complaint
filed with the CIAC, Steel Builders sought payment of its unpaid progress buildings, alleged
unearned profits and other receivables. Hi-Precision, upon the other hand, in its Answer and
Amended Answer, claimed actual and liquidated damages, reimbursement of alleged additional
costs it had incurred in order to complete the project and attorney's fees.
Petitioner asks this Court to correct legal errors committed by the Arbitral Tribunal, which at the
same time constitute grave abuse of discretion amounting to lack of jurisdiction on the part of
the Arbitral Tribunal; and Should the supposed errors petitioner asks us to correct be
characterized as errors of fact, such factual errors should nonetheless be reviewed because
there was "grave abuse of discretion" in the misapprehension of facts on the part of the Arbitral
Tribunal.
Executive Order No. 1008, as amended, provides, in its Section 19, as follows: Sec. 19. Finality of
Awards. — The arbitral award shall be binding upon the parties. It shall be final and inappealable
except on questions of law which shall be appealable to the Supreme Court.
Section 19 makes it crystal clear that questions of fact cannot be raised in proceedings before
the Supreme Court — which is not a trier of facts — in respect of an arbitral award rendered
under the aegis of the CIAC.
Examination of the Petition at bar reveals that it is essentially an attempt to re-assert and re-
litigate before this Court the detailed or itemized factual claims made before the Arbitral
Tribunal under a general averment that the Arbitral Tribunal had "misapprehended the facts"
submitted to it. in reaching its factual and legal conclusions.
10. UNIWIDE SALES REALTY AND RESOURCES CORPORATION V. TITAN IKEDEA CONS. and DEVT
CORP
An arbitration body, the CIAC, can only resolve issues before it by the parties through the Term
of Reference which functions similarly as a pre-trial brief. Thus if Uniwide’s claims for
unliquidated damages was not raised as an issue in the TOR or in any modified or amended
version of it, the CIAC cannot make a ruling on it.
The Rules of Court cannot be used to contravene the CIAC Rules. Allowing Sec 5 Rule 10 of the
ROC [Ammendment of Complaint] to apply in such case, deprives Titan of due process to
defend her claim after the late submission of the memorandum.[Memorandum was only
passed after the arbitration proceedings]
15. KOREA TECHNOLOGIES CO LTD., JUDGE LERMA and PACIFIC GENERAL STEEL MANUFACTURING
CORP
Parties entered whereby petitioner undertake the supply and installation of LPG Cylinder Mfg
Initial operation cannot be conducted due to Respondents financial difficulties
Also PGSMC cancelled the contract due to altered quantity and lowered quality of the equip
Kogies – instituted an application for arbitration in Korea . Contract has arbitration clause ----
“…..final determination of parties legal rights – not against public policy
The contract in this case was perfected here in the Philippines. Therefore, our laws ought to
govern. Nonetheless, Art. 2044 of the Civil Code sanctions the validity of mutually agreed
arbitral clause or the finality and binding effect of an arbitral award. Art. 2044 provides, Any
stipulation that the arbitrators award or decision shall be final, is valid, without prejudice to
Articles 2038, 2039 and 2040.
The arbitration clause was mutually and voluntarily agreed upon by the parties. It has not been
shown to be contrary to any law, or against morals, good customs, public order, or public policy.
There has been no showing that the parties have not dealt with each other on equal footing. We
find no reason why the arbitration clause should not be respected and complied with by both
parties
KFI assigned all its rights and properties to Petitioner KOPPEL INC
RTC – Order petitioner to vacate and pay rentals
CA – Affirmed
Even if the validity of the 2005 lease contract (5yr new lease, 4.2M plus yearly money donation)
for which the arbitration clause originated from is under dispute, the arbitration clause can still
be invoked under the Doctrine of Separability.
[Arbitration agreement is independent of the main contact even if it contained in Arbitration
clause.]
Filing of a request pursuant to Section 24 of R.A. 9285 is not the sole means by which an arbitral
clause may be validly invoked. When the petitioner invoked the right to arbitrate in their
answer, they effectively invoked the right to arbitrate.
Failure to settle Judicial Dispute Resolution proceedings gives rise to more cause to submit the
same case to arbitration.
Petitoner filed Motion to dismiss and request the referral of the case to voluntary arbitration
Contract never existed because respondent did not return the agreement bearing its signature
Contract contained arbitration clause “Dispute between the buyer and the seller…. Arbitration
award be final and binding on both parties” --- Respondent contends that this is contrary to
public policy because it oust the court of its jurisdiction
Note: Climax-Arimco sought to enforce the arbitration clause of its contract with Gonzales and the
former's move was premised on the existence of a valid contract; while Gonzales, who resisted the
move of Climax-Arimco for arbitration, did not deny the existence of the contract but merely assailed
the validity thereof on the ground of fraud and oppression. Respondent claims that in the case before
Us, petitioner who is the party insistent on arbitration also claimed in their Motion to Dismiss/Suspend
Proceedings that the contract sought By respondent to be rescinded did not exist or was not
consummated; thus, there is no room for the application of the separability doctrine
Note; RTC may suspend proceedings whether or not that arbitration be conducted in the Philippines
SPECIAL RULES ON ADR - Any party to a foreign arbitral award may petition the court to recognize
and enforce a foreign arbitral award:
Address of parties
Country where the arb award was made
Relief sought
Authenticated arbitration agreement
Authenticated Arbitration Award
RA 9285 ADR Law has certainly resolves any conflict of laws because it already incorporated
the
NEW YORK CONVETION --- Section 42
MODEL LAW – Section 19
26. ESTATE OF NELSON DULAY vs ABOITIZ JEBSEN MARITIME INC and GENERAL CHARTERERS, INC
SEAMAN – BOSUN died due to ACUTE RENAL FAILURE secondary to SEPTICEMIA --- died after
completion of his employment contract but during his death a bonafide member of the Union
LA and NLRC assumed jurisdiction and ruled on the matter
CA- refer case to NATIONAL CONCILIATION AND MEDIATION BOARD (note: BASTA UNDER CBA --
- covered by Arbitration)
CASE involves - WHERE SPECIAL STATUTE (RA 8042) refers to a subject in general, which the
GENERAL STATUTE (Art 217 (c) and Art 261 of the LABOR CODE treats in particular.
Stipulations
Restriction the nature of the construction dispute
Appointing another arbitral body
Making that arbitral body’s award final and binding
NOTE: If purely supply of services where no construction is involved, CIAC has no jurisdiction