Adr 3-4asd Digest Consolidated (1)

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Gascon v. Arroyo

G.R. No. 78389 October 16, 1989

Padilla, J.

Facts:

Lopez family i t!e o"#er of t"o tele$iio# tatio#% &!a##el ' a#d (,"!ic! t!ey !a$e operated t!ro)*! +-&N roadcati#* &orp. /!e# martial la" "adeclared, &!a##el ( "a cloed by t!e military a#d it facilitie "ere ta0e# by a#lao#roadcati#* -ytem 2- "!ic! operated it a a commercial tatio#. 4# 1978, t!e- "a ta0e# o$er by t!e Natio#al 5edia Prod)ctio# &e#ter 2NP5& "!ic! operated)#der t!e 5a!arli0a roadcati#* -ytem (. +fter t!e -+ Re$ol)tio#, P&GGe:)etered t!e tatio# a#d t!e Office Of 5edia +ffair too0 o$er t!e operatio# of &!. ( O# +pril 17, 1986, Lopez family re:)eted Pre. +:)i#o to ret)r# to t!em &!. (a#d '. O# Oct. 18, 1986,&! ' "a ret)r#ed to t!em. ;po# t!e Lopez family< re:)et,t!e repo#de#t =ec)ti$e -ecretary, by t!e a)t!ority of t!e Preide#t, e#tered "it!

+-&N, repree#ted by it Pre. a# >+*reeme#t to +rbitrate?

Petitio#er ee0 to a##)l a#d et aide t!e >+*reeme#t to +rbitrate? e#teredi#to by a#d bet"ee# t!e Rep)blic of t!e P!ilippi#e, repree#ted by =ec)ti$e-ecretary Jo0er . +rroyo, a#d +-&N roadcati#* &orporatio#, repree#ted by itPreide#t, )*e#io Lopez, Jr., dated 6 Ja#)ary 1987, to ettle t!e claim of +-&Nfor t!e ret)r# of radio a#d tele$iio# tatio# 2 -tatio# &!a##el (, a#d to e#@oi# t!e

+rbitratio# &ommittee created )#der t!e aforeaid a*reeme#t from ad@)dicati#* t!eclaim of +-&N.

Issue: /!et!er t!e =ec)ti$e -ecretary !ad t!e po"er a#d a)t!ority to e#ter i#to t!e>+*reeme#t to +rbitrate? "it! t!e +- &N roadcati#* &orporatio#

Held:

Ae. ;#der t!e Pro$iio#al &o#tit)tio# of t!e Rep)blic of t!e P!ilippi#e alo0#o"# a t!e Breedom &o#tit)tio#, "!ic! "a i# force a#d effect "!e# t!e>+*reeme#t to +rbitrate? "a i*#ed by t!e partie t!ereto o# 6 Ja#)ary 1987, t!ePreide#t e=ercied bot! t!e le*ilati$e a#d e=ec)ti$e po"er of t!e Go$er#me#t. +&!ief =ec)ti$e, t!e Preide#t "a 2a#d e$e# #o" >aited by a &abi#et? compoedof 5i#iter 2#o" -ecretarie, "!o "ere appoi#ted by a#d acco)#table to t!e

Preide#t. 4# ot!er "ord, t!e 5ember of t!e cabi#et, a !ead of t!e $ario)departme#t, are t!e aita#t a#d a*e#t of t!e &!ief =ec)ti$e, a#d, e=cept i# cae"!ere t!e &!ief =ec)ti$e i re:)ired by t!e &o#tit)tio# or t!e la" to act i# pero#, or "!ere t!e e=i*e#cie of t!e it)atio# dema#d t!at !e act pero#ally, t!e m)ltifario)e=ec)ti$e a#d admi#itrati$e f)#ctio# of t!e &!ief =ec)ti$e are performed by a#dt!ro)*! t!e e=ec)ti$e departme#t, a#d t!e act of t!e !ead of )c! departme#tperformed i# t!e re*)lar co)re of b)i#e, are, )#le diappro$ed or reprobated byt!e &!ief =ec)ti$e, pre)mpti$ely t!e act of t!e &!ief =ec)ti$e.



Repo#de#t =ec)ti$e -ecretary !ad, t!erefore, t!e po"er a#d a)t!ority to e#ter i#to t!e >+*reeme#t to +rbitrate? "it! t!e +- &N roadcati#* &orporatio#, a !eacted for a#d i# be!alf of t!e Preide#t "!e# !e i*#ed itC !e#ce, t!e aforeaida*reeme#t i $alid a#d bi#di#* )po# t!e Rep)blic of t!e P!ilippi#e, a a party t!ereto.

el 5o#te ;-+ $. &+

Note% !e a*reeme#t to arbitrate may be affected by )be:)e#t e$e#t t!at maypre$e#t t!e #o# applicatio# of t!e ++if ot!er partie "!o are #ot pri$y to or bo)#d by t!e

++ "! m)t be i#cl)ded i# t!e )it o t!at a complete reol)tio# of t!e dip)te ipoible. !e co)rt f)t!er r)led t!at t!e cae ca##ot be peedily a#d efficie#tly reol$edi# it e#tirety if bot! arbitratio# a#d trial "ere to be im)lta#eo)ly co#d)cted or if trial"ere to be )pe#ded pe#di#* arbitratio#.

Bact% O# 1 J)ly 199(, i# a itrib)tor!ip +*reeme#t, petitio#er el 5o#te&orporatio#;-+ 25&;-+ appoi#ted pri$ate repo#de#t 5o#teb)e#o 5ar0eti#*,

4#c. 2554 a t!e ole a#d e=cl)i$e ditrib)tor of it el 5o#te prod)ct i# t!eP!ilippi#e for a period of fi$e 2D year, re#e"able for t"o 2' co#ec)ti$e fi$e 2D year

period "it! t!e co#e#t of t!e partie. !e +*reeme#t pro$ided, amo#* ot!er, for a#

arbitratio# cla)e "!ic! tate

1'. GORN4NG L+/ +N +R4R+4ON

This Agreement shall be governed by the laws of the State of California and/or, if

applicable, the United States of America. All disputes arising out of or relating to this Agreement or the parties’ relationship, including the termination thereof, shall be

resolved by arbitration in the City of San rancisco, State of California, under the !ules

of the American Arbitration Association. The arbitration panel shall consist of three

members, one of whom shall be selected by "#C$USA, one of whom shall be selected

by ##%, and third of whom shall be selected by the other two members and shall have

relevant e&perience in the industry & & & &

4# October 199( t!e appoi#tme#t of pri$ate repo#de#t 554 a t!e ole a#de=cl)i$e ditrib)tor of el 5o#te prod)ct i# t!e P!ilippi#e "a p)bli!ed i# e$eral

#e"paper i# t!e co)#try. 4mmediately after it appoi#tme#t, pri$ate repo#de#t 554appoi#ted -abroa Bood, 4#c. 2-B4, "it! t!e appro$al of petitio#er 5&;-+, a

554< mar0eti#* arm to co#ce#trate o# it mar0eti#* a#d elli#* f)#ctio# a "ell a to

ma#a*e it critical relatio#!ip "it! t!e trade.

O# 3 October 1996 pri$ate repo#de#t 554, -B4 a#d 554< 5a#a*i#* irector L4LA -A filed a &omplai#t a*ai#t petitio#er 5&;-+, Pa)l . erby, Jr., a#iel

&olli# a#d L)i Eidal*o, a#d e"ey Ltd. before t!e Re*io#al rial &o)rt of 5alabo#,



5etro 5a#ila.. Pri$ate repo#de#t predicated t!eir complai#t o# t!e alle*ed $iolatio#

by petitio#er of +rt. 'F, '1 a#d '3of t!e &i$il &ode. +ccordi#* to pri$ate repo#de#t,

5&;-+ prod)ct co#ti#)ed to be bro)*!t i#to t!e co)#try by parallel importer

depite t!e appoi#tme#t of pri$ate repo#de#t 554 a t!e ole a#d e=cl)i$e ditrib)tor of el 5o#te prod)ct t!ereby ca)i#* t!em *reat embarrame#t a#d )bta#tial

dama*e. !ey alle*ed t!at t!e prod)ct bro)*!t i#to t!e co)#try by t!ee importer"ere a*ed, dama*ed, fa0e or co)#terfeit.

&o#e:)e#tly, pri$ate repo#de#t claimed, amo#* ot!er relief, t!e payme#t of

act)al dama*e, e=emplary dama*e, attor#ey< fee a#d liti*atio# e=pe#e.

O# '1 October 1996 petitio#er filed a #otion to Suspend 'roceedings13H i#$o0i#*

t!e arbitratio# cla)e i# t!eir +*reeme#t "it! pri$ate repo#de#t.

!e trial co)rt deferred co#ideratio# of petitio#er< #otion to Suspend

'roceedings a t!e *ro)#d alle*ed t!erei# did #ot co#tit)te t!e )pe#io# of t!eproceedi#* co#ideri#* t!at t!e actio# "a for dama*e "it! prayer for t!e i)a#ce of

(rit of 'reliminary Attachment a#d #ot o# t!e itrib)tor!ip +*reeme#t.

+r*)me#t%

Petitio#er co#te#d t!at t!e )b@ect matter of pri$ate repo#de#t< ca)e of actio#

arie o)t of or relate to t!e +*reeme#t bet"ee# petitio#er a#d pri$ate

repo#de#t. !), co#ideri#* t!at t!e arbitratio# cla)e of t!e +*reeme#t pro$idet!at all dip)te arii#* o)t of or relati#* to t!e +*reeme#t or t!e partie< relatio#!ip,

i#cl)di#* t!e termi#atio# t!ereof, !all be reol$ed by arbitratio#, t!ey i#it o# t!e

)pe#io# of t!e proceedi#* i# &i$il &ae No. '6375N a ma#dated by -ec. 7 of R+876

Sec. ). -tay of &i$il +ctio#. %f any suit or proceeding be brought upon an issue arising

out of an agreement providing for arbitration thereof, the court in which such suit or

proceeding is pending, upon being satisfied that the issue involved in such suit or

proceeding is referable to arbitration, shall stay the action or proceeding until an

arbitration has been had in accordance with the terms of the

agreement. Pro$ided, That the applicant for the stay is not in default in proceeding with

such arbitration.

Pri$ate repo#de#t claim, o# t!e ot!er !a#d, t!at t!eir ca)e of actio# are rooted

i# +rt. 'F, '1 a#d '3 of t!e &i$il &ode, t!e determi#atio# of "!ic! dema#d a f)ll blo"#

trial, a correctly !eld by t!e &o)rt of +ppeal.

Pri$ate repo#de#t f)rt!er co#te#d t!at t!e arbitratio# cla)e ce#ter more o#

$e#)e rat!er t!a# o# arbitratio#. !ey fi#ally alle*e t!at petitio#er filed t!eir motio# for

e=te#io# of time to file t!i petitio# o# t!e ame date petitio#er 5&;-+ filed a

http://sc.judiciary.gov.ph/jurisprudence/2001/feb2001/136154.htm#_edn13




petitio# to compel pri$ate repo#de#t 554 to arbitrate before t!e ;#ited -tate itrict

&o)rt i# Nort!er# &alifor#ia, doc0eted a &ae No. &98(((6. !ey i#it t!at t!e

fili#* of t!e petitio# to compel arbitratio# i# t!e ;#ited -tate made t!e petitio# filed

before t!i &o)rt a# alter#ati$e remedy a#d, i# a "ay, a# aba#do#me#t of t!e ca)et!ey are fi*!ti#* for !ere i# t!e P!ilippi#e, t!) "arra#ti#* t!e dimial of t!e pree#t

petitio# before t!i &o)rt.

4)e% "!et!er t!e dip)te bet"ee# t!e partie "arra#t a# order compelli#* t!em

to )bmit to arbitratio#.

R)li#*%

+ caref)l e=ami#atio# of t!e i#ta#t cae !o" t!at t!e arbitratio# cla)e i# t!e

itrib)tor!ip +*reeme#t bet"ee# petitio#er 5&;-+ a#d pri$ate repo#de#t 554 i

$alid a#d t!e dip)te bet"ee# t!e partie i arbitrable. Eo"e$er, t!i &o)rt m)t de#y

t!e petitio#.

!e +*reeme#t bet"ee# petitio#er 5&;-+ a#d pri$ate repo#de#t 554 i a

co#tract. !e pro$iio# to )bmit to arbitratio# a#y dip)te arii#* t!erefrom a#d t!e

relatio#!ip of t!e partie i part of t!at co#tract a#d i itelf a co#tract. + a r)le,

co#tract are repected a t!e la" bet"ee# t!e co#tracti#* partie a#d prod)ce effect

a bet"ee# t!em, t!eir ai*# a#d !eir. &learly, o#ly partie to t!e +*reeme#t, i.e.,petitio#er 5&;-+ a#d it 5a#a*i#* irector for =port -ale Pa)l . erby, Jr., a#d

pri$ate repo#de#t 554 a#d it 5a#a*i#* irector L4LA -A are bo)#d by t!e

+*reeme#t a#d it arbitratio# cla)e a t!ey are t!e o#ly i*#atorie

t!ereto. Petitio#er a#iel &olli# a#d L)i Eidal*o, a#d pri$ate repo#de#t -B4, #ot

partie to t!e +*reeme#t a#d ca##ot e$e# be co#idered ai*# or !eir of t!e partie,are #ot bo)#d by t!e +*reeme#t a#d t!e arbitratio# cla)e t!erei#. &o#e:)e#tly,

referral to arbitratio# i# t!e -tate of &alifor#ia p)r)a#t to t!e arbitratio# cla)e a#d t!e

)pe#io# of t!e proceedi#* i# &i$il &ae No. '6375N pe#di#* t!e ret)r# of t!e

arbitral a"ard co)ld be called for 'DH b)t o#ly a to petitio#er 5&;-+ a#d Pa)l .

erby, Jr., a#d pri$ate repo#de#t 554 a#d L4LA -A, a#d #ot a to t!e ot!er partie i#t!i cae, i# accorda#ce "it! t!e rece#t cae of *eirs of Augusto +. Salas, r. v. +aperal

!ealty Corporation,'6H "!ic! )pereded t!at of Toyota #otor 'hilippines Corp. v. Court

of Appeals.'7H

4# Toyota, t!e &o)rt r)led t!at ItH!e co#te#tio# t!at t!e arbitratio# cla)e !abecome dyf)#ctio#al beca)e of t!e pree#ce of t!ird partie i )#te#able ratioci#ati#*

t!at IcHo#tract are repected a t!e la" bet"ee# t!e co#tracti#* partieI '8H a#d t!atIaH )c!, t!e partie are t!ereby e=pected to abide "it! *ood fait! i# t!eir co#tract)al

commitme#t.I'9H Eo"e$er, i# Salas, r., o#ly partie to t!e +*reeme#t, t!eir ai*# or

!eir !a$e t!e ri*!t to arbitrate or co)ld be compelled to arbitrate. !e &o)rt "e#t

f)rt!er by declari#* t!at i# reco*#izi#* t!e ri*!t of t!e co#tracti#* partie to arbitrate or














to compel arbitratio#, t!e plitti#* of t!e proceedi#* to arbitratio# a to ome of t!e

partie o# o#e !a#d a#d trial for t!e ot!er o# t!e ot!er !a#d, or t!e )pe#io# of trial

pe#di#* arbitratio# bet"ee# ome of t!e partie, !o)ld #ot be allo"ed a it "o)ld, i#

effect, re)lt i# m)ltiplicity of )it, d)plicito) proced)re a#d )##eceary delay.3FH

!e ob@ect of arbitratio# i to allo" t!e e=peditio) determi#atio# of a dip)te.31H &learly, t!e i)e before ) co)ld #ot be peedily a#d efficie#tly reol$ed i# it

e#tirety if "e allo" im)lta#eo) arbitratio# proceedi#* a#d trial, or )pe#io# of trial

pe#di#* arbitratio#. +ccordi#*ly, t!e i#teret of @)tice "o)ld o#ly be er$ed if t!e trial

co)rt !ear a#d ad@)dicate t!e cae i# a i#*le a#d complete proceedi#*.

oyota 5otor P!ilippi#e $. &+

Bact%O# -eptember 11, 1991, oyota filed a cae a*ai#t +P a#d -)# alley

doc0eted a &i$il &ae No. 91'DF( "it! t!e Re*io#al rial &o)rt of 5a0ati, ra#c! 1(6

preided by J)d*e -al$ador e#)a#. !e complai#t "a for t!e reformatio# of t!eeed of -ale e=ec)ted bet"ee# oyota a#d +P. oyota alle*e t!at t!e i#tr)me#t

failed to reflect t!e tr)e i#te#tio# of t!e partie, a e$ide#ced by t!e fail)re of t!e title to

i#cl)de t!e 7'3 :)are meter trip of la#d.

oyota alle*e t!at t!e dicrepa#cy came abo)t beca)e of t!e erio) fla" i# t!e

claificatio#catalo*)i#* of propertie bidded o)t for ale by +P. oyota "a made to)#derta#d t!at i#cl)ded i# it perimeter fe#ce i t!e dip)ted trip of la#d. !), oyota

o)*!t t!e re)r$ey of t!e property to correct t!i error i# t!e title. -)# alley "a

impleaded co#ideri#* t!at it p)rc!aed t!e ad@oi#i#* la#d "!oe title alle*edly

i#cl)ded t!e 7'3 :)are meter property.

-)# alley, !o"e$er, ar*)e t!at t!e complai#t for reformatio# tate #o ca)e of actio#

a*ai#t it i#ce a# actio# for reformatio# i baically o#e trictly bet"ee# t!e partie tot!e co#tract itelf. !ird pero# "!o are #ot partie to t!e co#tract ca##ot a#d !o)ld

#ot be i#$ol$ed. !), -)# alley co#te#d t!at it !o)ld #ot !a$e bee# impleaded a a

defe#da#t.

O# October 3F, 1991, +P filed it a#"er "it! affirmati$e defe#e alle*i#* t!at

t!e complai#t m)t be dimied o# t!e *ro)#d t!at oyota a#d +P !o)ld firt !a$e

reorted to arbitratio# a pro$ided i# oyotaK deed of ale "it! +P.

4)e% /N -)# alley "a properly impleaded a party defe#da#t i# it actio# for

reformatio#

+ a *e#eral r)le, t!erefore, all pero# to be affected by t!e propoed reformatio#

m)t be made partie. 4# a# actio# to reform a deed, all partie claimi#* a# i#teret i#

t!e la#d or a#y part t!ereof p)rportedly co#$eyed by t!e i#tr)me#t o)*!t to be







reformed, a#d "!oe i#teret "ill be affected by t!e reformatio# of t!e i#tr)me#t are

#eceary partie to t!e actio#.

Eo"e$er, )#der t!e fact of t!e pree#t cae, oyotaK actio# for reformatio# i

dimiible a a*ai#t -)# alley.

+tte#tio# m)t firt be bro)*!t to t!e fact t!at t!e co#tract of ale e=ec)ted bet"ee#

+P a#d oyota pro$ide a# arbitratio# cla)e "!ic! tate t!at%

=== === ===

D. 4# cae of dia*reeme#t or co#flict arii#* o)t of t!i &o#tract, t!epartie !ereby )#derta0e to )bmit t!e matter for determi#atio# by a

committee of e=pert, acti#* a arbitrator, t!e compoitio# of "!ic! !all

be a follo"%

a O#e member to be appoi#ted by t!e NORC

b O#e member to be appoi#ted by t!e NC

c O#e member, "!o !all be a la"yer, to be appoi#ted by

bot! of t!e aforeaid partieC

!e member of t!e +rbitratio# &ommittee !all be appoi#ted #ot latert!a# t!ree 23 "or0i#* day from receipt of a "ritte# #otice from eit!er or

bot! partie. !e +rbitratio# &ommittee !all co#$e#e #ot later t!a# t!ree

23 "ee0 after all it member !a$e bee# appoi#ted a#d proceed "it! t!earbitratio# of t!e dip)te "it!i# t!ree 23 cale#dar mo#t! co)#ted

t!erefrom. y "ritte# m)t)al a*reeme#t by t!e partie !ereto, )c! timelimit for t!e arbitratio# may be e=te#ded for a#ot!er cale#dar mo#t!. !e

deciio# of t!e +rbitratio# &ommittee by ma@ority $ote of at leat t"o 2'

member !all be fi#al a#d bi#di#* )po# bot! t!e NOR a#d t!e

NC

!e co#te#tio# t!at t!e arbitratio# cla)e !a become dif)#ctio#al beca)e of t!e

pree#ce of t!ird partie i )#te#able.

&o#tract are repected a t!e la" bet"ee# t!e co#tracti#* partie 25erca#tile 4#. &o.4#c. $. Belipe Amael, Jr. M &o., 4#c., 169 -&R+ 66 1989H. + )c!, t!e partie are

t!ereby e=pected to abide "it! *ood fait! i# t!eir co#tract)al commitme#t 2)illa# $.

&+, 169 -&R+ '79 1989H. oyota i t!erefore bo)#d to repect t!e pro$iio# of t!e

co#tract it e#tered i#to "it! +P.



oyota filed a# actio# for reformatio# of it co#tract "it! +P, t!e p)rpoe of "!ic! i to

loo0 i#to t!e real i#te#tio#a*reeme#t of t!e partie to t!e co#tract a#d to determi#e if

t!ere "a really a mita0e i# t!e dei*#atio# of t!e bo)#darie of t!e property a

alle*ed by oyota. -)c! :)etio# ca# o#ly be a#"ered by t!e partie to t!e co#tractt!emel$e. !i i a co#tro$ery "!ic! clearly aroe from t!e co#tract e#tered i#to by

+P a#d oyota. 4#am)c! a t!i co#cer# more importa#tly t!e partie +P a#doyota t!emel$e, t!e arbitratio# committee i t!erefore t!e proper a#d co#$e#ie#t

for)m to ettle t!e matter a clearly pro$ided i# t!e deed of ale.

Ea$i#* bee# appried of t!e pree#ce of t!e arbitratio# cla)e i# t!e motio# to dimi

filed by +P, J)d*e e#)a# !o)ld !a$e at leat )pe#ded t!e proceedi#* a#ddirected t!e partie to ettle t!eir dip)te by arbitratio# 2e#*o# $. &!a#, 78 -&R+ 113

1977H, -ec. 7, R+ 876. J)d*e e#)a# !o)ld !a$e #ot ta0e# co*#iza#ce of t!e cae.

G.R. No. 155001 May 5, 2003

DM!"#HN" $. AGAN, %R., %!"$H &. 'A#AHAN, %!" MARI &. R(NI))A,MAN() AN#!NI! &. &!*, MAMR#! ". ')ARA, R() . DIMA)AN#A,M!R+ . D!MA)A!N, '!NRAD! G. DIMAAN!, )!)I#A R. HI-!N, RMDI!" $.AD!)F!, &INNID! '. HI)ARI!, MIA"'!R !R/R" (NI!N NA#I!NA))A&!R (NI!N M(N)(, and $HI)I$$IN AIR)IN" M$)!+"A""!'IA#I!N $A)A,petitio#er,

$.

$HI)I$$IN IN#RNA#I!NA) AIR #RMINA)" '!., IN'., MANI)AIN#RNA#I!NA) AIR$!R# A(#H!RI#+, D$AR#MN# !F #RAN"$!R#A#I!NAND '!MM(NI'A#I!N" and "'R#AR+ )ANDR! M. MND!-A, n 4scaacty as Head o6 t4e Deart7ent o6 #ransortaton and'o77uncatons, repo#de#t,

Bact% 4# +)*)t 1989, t!e O& e#*a*ed t!e er$ice of +eroport de Pari 2+P to

co#d)ct a compre!e#i$e t)dy of t!e Ni#oy +:)i#o 4#ter#atio#al +irport 2N+4+ a#d

determi#e "!et!er t!e pree#t airport ca# cope "it! t!e traffic de$elopme#t )p to t!eyear 'F1F

t!e Go$er#me#t, t!ro)*! t!e# O& -ecretary +rt)ro . #rile, a#d P4+&O, t!ro)*!

it Preide#t, Ee#ry . Go, i*#ed t!e I&o#ceio# +*reeme#t for t!e )ildOperate

a#dra#fer +rra#*eme#t of t!e Ni#oy +:)i#o 4#ter#atio#al +irport Pae#*er ermi#al444I 21997 &o#ceio# +*reeme#t. !e Go$er#me#t *ra#ted P4+&O t!e fra#c!ie tooperate a#d mai#tai# t!e aid termi#al d)ri#* t!e co#ceio# period a#d to collect t!e

fee, re#tal a#d ot!er c!ar*e i# accorda#ce "it! t!e rate or c!ed)le tip)lated i#

t!e 1997 &o#ceio# +*reeme#t. !e +*reeme#t pro$ided t!at t!e co#ceio# period

!all be for t"e#tyfi$e 2'D year comme#ci#* from t!e i#er$ice date, a#d may be

re#e"ed at t!e optio# of t!e Go$er#me#t for a period #ot e=ceedi#* t"e#tyfi$e 2'Dyear.



!e Birt -)ppleme#t to t!e +R&+ ame#ded -ec. 1.36 of t!e +R&+ defi#i#*

IRe$e#)eI or IGro Re$e#)eIC -ec. '.FD 2d of t!e +R&+ referri#* to t!e obli*atio#

of 54++ to pro$ide )fficie#t f)#d for t!e )p0eep, mai#te#a#ce, repair a#dor

replaceme#t of all airport facilitie a#d e:)ipme#t "!ic! are o"#ed or operated by54++C a#d f)rt!er pro$idi#* additio#al pecial obli*atio# o# t!e part of GRP aide from

t!oe already e#)merated i# -ec. '.FD of t!e +R&+. !e Birt -)ppleme#t alopro$ided a tip)latio# a re*ard t!e co#tr)ctio# of a )rface road to co##ect N+4+

ermi#al 44 a#d ermi#al 444 i# lie) of t!e propoed acce t)##el croi#* R)#"ay 1331

!e -eco#d -)ppleme#t to t!e +R&+ co#tai#ed pro$iio# co#cer#i#* t!e cleari#*,remo$al, demolitio# or dipoal of )bterra#ea# tr)ct)re )#co$ered or dico$ered at

t!e ite of t!e co#tr)ctio# of t!e termi#al by t!e &o#ceio#aire.

Bi#ally, t!e !ird -)ppleme#t pro$ided for t!e obli*atio# of t!e &o#ceio#aire a

re*ard t!e 5ea#"!ile, t!e 54++ "!ic! i c!ar*ed "it! t!e mai#te#a#ce a#d operatio#

of t!e N+4+ ermi#al 4 a#d 44, !ad e=iti#* co#ceio# co#tract "it! $ario) er$ice

pro$ider to offer i#ter#atio#al airli#e airport er$ice, )c! a i#fli*!t cateri#*,pae#*er !a#dli#*, ramp a#d *ro)#d )pport, aircraft mai#te#a#ce a#d pro$iio#,

car*o !a#dli#* a#d "are!o)i#*, a#d ot!er er$ice, to e$eral i#ter#atio#al airli#e at

t!e N+4+. -ome of t!ee er$ice pro$ider are t!e 5iacor Gro)p, N++/i#*

+$iatio# -ytem &orp., a#d t!e 5acro+ia Gro)p. 5iacor, N++ a#d 5acro+ia,

to*et!er "it! P!ilippi#e +irli#e 2P+L, are t!e domi#a#t player i# t!e i#d)try "it! a#a**re*ate mar0et !are of 7F.co#tr)ctio# of t!e )rface road co##ecti#* ermi#al 44

a#d 444.

"or0er of t!e i#ter#atio#al airli#e er$ice pro$ider, claimi#* t!at t!ey ta#d to loe

t!eir employme#t )po# t!e impleme#tatio# of t!e :)etio#ed a*reeme#t, filed beforet!i &o)rt a petitio# for pro!ibitio# to e#@oi# t!e e#forceme#t of aid a*reeme#t.

t!e er$ice pro$ider, @oi#i#* t!e ca)e of t!e petitio#i#* "or0er, filed a motio# for

i#ter$e#tio# a#d a petitio#i#i#ter$e#tio#.

t!e &o)rt !eard t!e cae o# oral ar*)me#t. +fter t!e oral ar*)me#t, t!e &o)rt t!e#reol$ed i# ope# co)rt to re:)ire t!e partie to file im)lta#eo)ly t!eir repecti$e

5emora#da i# amplificatio# of t!e i)e !eard i# t!e oral ar*)me#t "it!i# 3F day

a#d to e=plore t!e poibility of arbitratio# or mediatio# a pro$ided i# t!e c!alle#*ed

co#tract.

4)e% /ON petitio#er ca# be )b@ect t!emel$e to t!e arbitratio# proceedi#*

+ctio#C +R% /!ere petitio#er are #ot partie to a co#tract "it! a# arbitratio# cla)e,t!ey ca##ot be compelled to )bmit to arbitratio# proceedi#*C a peedy a#d decii$e

reol)tio# of all t!e critical i)e i# t!e pree#t co#tro$ery i#cl)di#* t!oe raied by

petitio#er, ca##ot be made before a# arbitral trib)#al.



4t i etabli!ed t!at petitio#er i# t!e pree#t cae "!o !a$e pree#ted le*itimate

i#teret i# t!e reol)tio# o f t!e co#tro$ery are #ot partie to P4+&O co#tract.

+ccordi#*ly, t!ey ca##ot be bo)#d by t!e arbitratio# cla)e pro$ided for i# t!e +R&+

a#d !e#ce, ca##ot be compelled to )bmit to arbitratio# proceedi#*. + peedy a#ddecii$e reol)tio# of all t!e critical i)e i# t!e pree#t co#tro$ery, i#cl)di#* t!oe

raied by petitio#er, ca##ot be made before a# arbitral trib)#al. !e ob@ect ofarbitratio# i preciely to allo" a# e=peditio) determi#atio# of a dip)te. !i ob@ecti$e

"o)ld #ot be met if t!i co)rt "ere to allo" t!e partie to ettle t!e cae by arbitratio#

a t!ere are certai# i)e i#$ol$i#* #o# partie to t!e piatco co#tract "!ic! t!earbitral trib)#al "ill #ot be e:)ipped to reol$e.

G.R. No. )89209 "ete7er 25, 1;<0

%!" F. "'AN!, %"(" F. "'AN!, I'N#A F. "'AN!, $I)AR "'AN!&RNAD, "AM() F. "'AN!, ANA MA. N. I)AN!, MARIA )!(RD" . N!),$I)AR I'#!RIA . N!) and GA&RI) N!), 6or 47sel6 and t4e 7nor 4ers o6

4s deceased =6e )!(RD" "'AN!, petitio#erappella#t,$.

'!(R# !F A$$A)" and R$(&)I' !F #H $HI)I$$IN", repo#de#t

appellee.

Pri#ciple% &o)rt ca##ot create co#tract.K

4# 196(, te# lot "ere old for P31,977 by 5amerto ca#o, 4#c. to t!e Rep)blic for )e

by t!e &++.

!e ale "a )b@ect to t!e reol)tory co#ditio# t!at "!e# t!e &++ "o)ld #o lo#*er )e

t!e lot a part of t!e airport, t!e# t!e title t!ereto "o)ld re$ert to t!e eller )po#

reimb)reme#t of t!e price "it!o)t i#teret. !at co#ditio# "a a##otated o# t!e title

i)ed to t!e Rep)blic of t!e P!ilippi#e.

4# 1966, by mea# of t"o deed of ai*#me#t a#d ot!er doc)me#t, t!e petitio#erbecame t!e )cceor of 5amerto ca#o, 4#c. to t!e re$erio#ary ri*!t or t!e ri*!t to

rep)rc!ae t!e lot from t!e Rep)blic of t!e P!ilippi#e.

t!e 5acta# +irport comme#ced it operatio# a#d t!e P!ilippi#e +irli#e topped )i#*

t!e La!)* +irport. Bilipi#a +ir"ay a#d +ir 5a#ila ceaed to )e t!e La!)* +irport at

t!e e#d of 1966 a#d t!ereafter )ed t!e 5acta# +irport

O# t!e premie t!at t!e abo$eme#tio#ed reol)tory co#ditio# !ad already bee#

f)lfilled, mea#i#* t!at t!e te# lot "ere #o lo#*er bei#* )ed a part of t!e La!)*

+irport beca)e of t!e operatio# of t!e 5acta# +irport, t!e petitio#er, t!ro)*! co)#el,

made a "ritte# te#der to t!e &++ of t!e rep)rc!ae price of P31,977



!e irector of &i$il +$iatio# re@ected t!e te#der. Ee reao#ed o)t t!at beca)e t!e

La!)* +irport "a till bei#* )tilized for *e#eral a$iatio#, t!e te# lot co)ld #ot yet be

releaed a#d ret)r#ed to t!e re$erio#ary o"#er

t!e petitio#er )ed t!e Rep)blic of t!e P!ilippi#e 2&++ i# t!e &o)rt of Birt 4#ta#ce

of &eb) for t!e reco#$eya#ce of t!e te# lot. +fter !eari#*, t!e trial co)rt re#dered adeciio# o# October 3F, 197(, orderi#* t!e &++ to reco#$ey to t!e petitio#er t!e te#

lot after payme#t of t!e rep)rc!ae price of P31,977.

!e Go$er#me#t appealed beca)e it belie$ed t!at t!e reol)tory co#ditio# for t!e

rep)rc!ae !ad #ot yet materialized.

!e &o)rt of +ppeal affirmed t!e trial co)rtK @)d*me#t allo"i#* t!e rep)rc!ae b)t it"e#t fart!er. !e +ppellate &o)rt r)led t!at t!e rep)rc!ae !o)ld be )b@ect to t!e

ame fi$e co#ditio# "!ic! "ere impoed in -- o# t!e reale made by t!e &++ to

Ge#eral 4a*a#i &ampo of !i t"o lot "!ic! are i# pro=imity to petitio#erK te# lot.

4)e% /ON t!e lot co)ld be re$erted bac0 to petitio#er

R)li#*% mi#e#t omai# &ot#ractC -aleC t!e co#tract i t!e la" bet"ee#t !e partie

t!ereto. !e co)rt ca##ot impoe co#ditio# #ot a*reed )po# i# t!e deed of ale "it!rep)rc!ae ri*!t after La!)* +irport i #o lo#*er i# )e by t!e *o$er#me#t, t!e $e#dee

a retro. !e 196( co#tract of ale bet"ee# t!e petitio#erK predeceori#i#teret a#d

t!e Go$er#me#t i t!e la" bet"ee# t!em. Ead t!ey i#te#ded t!at t!e co#ditio#

impoed i# t!e reale of Ge#eral &ampoK lot in --!o)ld li0e"ie be impoed i# t!e

reale to t!e re$erio#ary o"#er of t!e te# lot, t!ey co)ld !a$e eaily made atip)latio# to t!at effect in the -0 deed of ale.

!e fact t!at t!e co#tract of ale doe #ot me#tio# t!oe co#ditio# mea# t!at t!ey

"ere #e$er "it!i# t!e co#templatio# of t!e partie. !e &o)rt of +ppeal, i# *rat)ito)ly

impoi#* t!oe co#ditio#, made a #e" co#tract for t!em. 4# fact, t!e eco#d co#ditio#

It!at t!e rep)rc!ae allo" t!e &++ to co#ti#)e )i#* t!e property rep)rc!aed for

airfield p)rpoe, )#til )c! time a t!e airport operatio# i fi#ally tra#ferred to 5acta# +irportI #)llifie t!e re$erio# or reol)tory co#ditio# a#d #e*ati$e t!e trial co)rtK

fi#di#* t!at t!e La!)* +iport !ad ceaed to be operatio#al a#d t!at it !ad bee#

replaced by t!e 5acta# +irport.

/ERBOR, t!e deciio# of t!e &o)rt of +ppeal i modified by deleti#* t!erefromt!e fi$e co#ditio# for t!e reco#$eya#ce of t!e te# lot to t!e petitio#er. !e trial co)rtK

@)d*me#t i affirmed. No cot.

G.R. No. ;082> Dece7er 15, 1;<;

"IM DAR&+ $I)I$INA", IN'., petitio#er,

$.



D$(#+ ADMINI"#RA#!R &(NAN#(RA '. MAG"A)IN as oluntaryArtrator and t4e "IM DAR&+ M$)!+" A""!'IA#I!N, repo#de#t.

petitio#er -ime arby a#d pri$ate repo#de#t -+ e=ec)ted a &ollecti$e ar*ai#i#*

+*reeme#t 2&+ pro$idi#* for a performa#ce bo#)

t!e -ime arby -alaried mployee +ociatio# +L; 2--++L; "rote petitio#erdema#di#* t!e impleme#tatio# of a pro$iio# 4de#tical to t!e abo$e co#tai#ed i# t!eir

o"# &+ "it! petitio#er. -)be:)e#tly, petitio#er called bot! repo#de#t -+ a#d

-++L; to a meeti#* "!erei# t!e former e=plai#ed t!at it "a )#able to *ra#t t!e

performa#ce bo#) correpo#di#* to t!e fical year 19881989 o# t!e *ro)#d t!at t!e

"or0erK performa#ce d)ri#* aid period did #ot @)tify t!e a"ard of )c! bo#).

pri$ate repo#de#t -+ filed "it! t!e Natio#al &o#ciliatio# a#d 5ediatio# oard

2N&5 a# )r*e#t re:)et for pre$e#ti$e co#ciliatio# bet"ee# pri$ate repo#de#t a#d

petitio#er.

partie "ere called to a co#ciliatio# meeti#* a#d i# )c! meeti#*, bot! partie a*reedto )bmit t!eir dip)te to $ol)#tary arbitratio#. !eir a*reeme#t to arbitrate tated,

amo#* ot!er t!i#*, t!at t!ey "ere I)bmitti#* t!e i)e of performa#ce bo#) to

$ol)#tary arbitratio#I a#d t!at It!e deciio#a"ard of t!e $ol)#tary arbitrator !all be

repected a#d impleme#ted by t!e partie a fi#al a#d e=ec)tory, i# accorda#ce "it!

t!e la".

petitio#er filed it poitio# paper "!ic! aimed to !o" t!at t!e performa#ce of t!e

member of repo#de#t )#io# d)ri#* t!e year.

Eo"e$er, before petitio#er co)ld )bmit it Reply to t!e )#io#K Poitio# Paper, t!e

ol)#tary +rbitrator i)ed a# a"ard "!ic! declared repo#de#t )#io# e#titled to aperforma#ce bo#) e:)i$ale#t to 7D of t!e mo#t!ly baic pay of it member. 4# t!ata"ard, t!e ol)#tary +rbitrator !eld t!at a readi#* of t!e &+ pro$iio# o# t!e

performa#ce bo#) "o)ld !o" t!at aid pro$iio# "a ma#datory !e#ce t!e o#ly i)e

to be reol$ed "a t!e amo)#t of performa#ce bo#)

Petitio#er filed a motio# for reco#ideratio# "!ic! motio# "a #ot e#tertai#ed by t!e

ol)#tary +rbitrator )po# t!e *ro)#d t!at t!e ol)#tary +rbitrator, !ad a)tomatically lot @)ridictio# o$er t!e arbitratio# cae )po# t!e i)a#ce of t!e a"ard.

4# t!i petitio# for &ertiorari, petitio#er mai#ly ar*)e t!at repo#de#t ol)#tary

+rbitrator *ra$ely ab)ed !i dicretio# i# !oldi#* t!at t!e *ra#t of performa#ce bo#)"a ma#datory a#d t!at t!e o#ly i)e before !im "a t!e amo)#t of t!e bo#). 4t i

co#te#ded t!at i#ce a performa#ce bo#) i a I*iftI baed o# t!e compa#yKperforma#ce, t!e ame i #ot @)tified "!e# t!e compa#yK performa#ce !a bee#

poor. Petitio#er alo ar*)e t!at e$e# if a performa#ce bo#) "ere @)tified, t!e

ol)#tary +rbitrator *ra$ely ab)ed !i dicretio# i# *i$i#* a# a"ard of 7D of t!e

mo#t!ly baic rate "it!o)t a#y e$ide#ce of t!e bai )ed i# arri$i#* at )c! a# a"ard.



4t i i#ited t!at )#der t!e rele$a#t &+ pro$iio#, t!e compa#y determi#e t!e amo)#t

of t!e bo#) if t!e ame be @)tified.

4)e% /o# t!e a"ard of t!e arbitrator i @)tified

R)li#*%

1. 4# repect of t!e firt i)e, petitio#er -ime arby )r*e t!at t!e +rbitrator *ra$ely

ab)ed !i dicretio# i# pai#* )po# #ot o#ly t!e :)etio# of "!et!er or #ot a

performa#ce bo#) i to be *ra#ted b)t alo, i# t!e affirmati$e cae, t!e matter of t!e

amo)#t t!ereof. !e poitio# of petitio#er, to t!e e=te#t "e ca# )#derta#d it, i t!at t!e

+rbitrator "a a)t!orized to determi#e o#ly t!e :)etio# of "!et!er or #ot aperforma#ce bo#) "a to be *ra#ted, t!e eco#d :)etio# bei#* reer$ed for

determi#atio# by t!e employer -ime arby. /e #oted earlier t!at i# t!eir a*reeme#t to

arbitrate, t!e partie )bmitted to t!e ol)#tary +rbitrator It!e i)e of performa#ce

bo#).I !e la#*)a*e of t!e a*reeme#t to arbitrate may be ee# to be :)ite cryptic.

!ere i #o i#dicatio# at all t!at t!e partie to t!e arbitratio# a*reeme#t re*arded It!ei)e of performa#ce bo#)I a a t"otiered i)e, o#ly o#e tier of "!ic! "a bei#*

)bmitted to arbitratio#. Poibly, -ime arbyK co)#el co#idered t!at i)e a !a$i#*

d)al apect a#d i#te#ded i# !i o"# mi#d to )bmit o#ly o#e of t!oe apect to t!e

+rbitratorC if !e did, !o"e$er, !e failed to reflect !i t!i#0i#* a#d i#te#t i# t!e arbitratio#

a*reeme#t.

4t i t!) ee#tial to tre t!at t!e ol)#tary +rbitrator !ad ple#ary @)ridictio# a#d

a)t!ority to i#terpret t!e a*reeme#t to arbitrate a#d to determi#e t!e cope of !i o"#

a)t!ority )b@ect o#ly, i# a proper cae, to t!e certiorari @)ridictio# of t!i &o)rt. !e

+rbitrator, a already i#dicated, $ie"ed !i a)t!ority a embraci#* #ot merely t!e

determi#atio# of t!e abtract :)etio# of "!et!er or #ot a performa#ce bo#) "a to be*ra#ted b)t alo, i# t!e affirmati$e cae, t!e amo)#t t!ereof.

-ame J)ridictio#C Performa#ce bo#)C t!e $ol)#tary arbitrator !ad ple#ary @)ridictio#

a#d a)t!ority to i#terpret t!e a*reeme#t, to arbitrate a#d to determi#e t!e cope of !i

o"# a)t!orityC 4t i t!) ee#tial to tre t!at t!e ol)#tary +rbitrator !ad ple#ary @)ridictio# a#d a)t!ority to i#terpret t!e a*reeme#t to arbitrate a#d to determi#e t!e

cope of !i o"# a)t!ority )b@ect o#ly, i# a proper cae, to t!ecertiorari @)ridictio# of

t!i &o)rt. !e +rbitrator, a already i#dicated, $ie"ed !i a)t!ority a embraci#* #ot

merely t!e determi#atio# of t!e abtract :)etio# of "!et!er or #ot a performa#ce

bo#) "a to be *ra#ted b)t alo, i# t!e affirmati$e cae, t!e amo)#t t!ereof.

/ERBOR, t!e Petitio# for Certiorari i 4-54-- for lac0 of merit. !e

emporary Retrai#i#* Order i)ed o# 8 No$ember 1989 i !ereby L4B. !i

eciio# i immediately e=ec)tory. &ot a*ai#t petitio#er.

G.R. No. )13525 Nove7er 30, 1;>2



FAR A"# IN#RNA#I!NA) IM$!R# and ?$!R# '!R$!RA#I!N, plai#tiff

appellee, $.NAN/AI /!G+! '!. )#D., # A)., defe#da#t, NAN/AI /!G+! '!.,)#D., defe#da#tappella#t.

Bar ate#tered i#to a &o#tract of -ale of -teel -crap "it! t!e Na#0ai, a forei*#

corporatio# or*a#ized )#der Japa#ee La" "it! addre at Oa0a, Japa#. !e b)yeri*# i# Japa# a#d t!e eller i# 5a#ila, P!ilippi#e.

!e perti#e#t pro$iio# of t!e a*reeme#t are repree#ted belo"

1. )a#tity%

+ppro=imately D,FFF 2fi$e t!o)a#d metric to# 1F more or le.

13. Borce 5a@e)re%

!e e=ec)tio# of t!i a*rreme#t i )b@ect to a#y a#d allGo$er#me#t

retrictio# pro!ibiti#* or pe#alizi#* i# "!ole or i# part t!ee=port of 4ro# M

-teel -crap from t!e P!ilippi#e, a#d t!e -eller !all #ot be repo#iblefor delay i# or fail)re of !ipme#t or deli$ery or delay i# tra#portatio#

d)e to force ma@e)re, tri0e, dffere#ce "it! "or0me#, accide#t, fire,

flood, mobilizatio#, "ar, forei*# "ar, riot, re$ol)tio#, re*)latio# a#d

retrictio# or to a#y co#ditio# beyo#d t!eco#trol of t!e -LLR "!et!er

t!e #at)re !erei# tated or #ot.

;po# perfectio# of t!e co#tract a#d after !a$i#* bee# i#formed of t!e readi#e to !ip

a#d t!at t!e =port Lice#e "a to e=pire o# 5arc! 18, 19D7,Na#0ai ope#ed a letter for

credit "it! t!e &!i#a a#0i#* &orporatio#, i)ed by t!e Nippo# a#*yo, Ltd., o0yo,

Japa#, i# t!e amo)#t of Q31',DFF.FF

Bo)r 2( day before t!e e=piratio# of t!e Bar at lice#ce, t!ree 23 boat e#t byNa#0ai arri$ed i# t!e P!ilippi#e, o#e to load i# 5a#ila, t!e ot!er t"o at Poro Poi#t, -a#

Ber#a#do, La ;#io#, a#d acloba#, Leyte, repecti$ely.

eca)e of t!e e=piratio# of t!e e=port lice#e, o#ly 1,FD8.6 metric to# of crap teel

"a loaded o# t!e -- 5i#a 2loadi#* i# 5a#ila. !e loadi#* "a accordi#*ly topped

!e boat at Poro Poi#t "a alo )#loaded of t!e 'FF metric to#, for t!e ame reao#.

+# a*reeme#t "a reac!ed "!erby t!e Bar at "o)ld ee0 a# e=te#io# of t!e

lice#e. Eo"e$er, t!e )#timely deat! of Preide#t 5a*ayay a#d t!e ta0i#* o$er by

Preide#t Garcia c!a#*ed t!e pict)re, for t!e latter a#dor !i a*e#t ref)ed to e=te#dt!e lice#e. !e t"o boat ailed to Japa# "it!o)t a#y car*o, t!e t!ird 2-- 5i#a o#ly1,FD8.6 metric to#.

Na#0ai co#firmed a#d ac0#o"le*ed deli$ery of t!e 1,FD8.6 metric to# of teel crap,

b)t a0ed for dama*e amo)#ti#* to Q1(8,13D.FF co#iti#* of dead frei*!t c!ar*e,

dama*e, ba#0 c!ar*e, p!o#e a#d cable e=pe#e



Bar at "rote t!e $erett -team!ip &orporatio#, re:)eti#* t!e i)a#ce of a

complete et of t!e ill of Ladi#* for t!e !ipme#t, i# order t!at payme#t t!ereof be

effected a*ai#t t!e Letter of &redit

$erett i#formed Bar at t!at t!ey "ere #ot i# a poitio# to comply beca)e t!e ill of

Ladi#* "a i)ed a#d i*#ed i# o0yo by t!e 5ater of t!e boat, )po# re:)et of t!e&!arterer, defe#da#t !erei#.

+ repeated re:)et, bot! a*ai#t t!e !ippi#* a*e#t a#d t!e b)yer 2Na#0ai, for t!e

i)a#ce of t!e of ill Ladi#* "ere i*#ored, Bar at filed t!e pree#t complai#t for

-pecific Performa#ce, dama*e, a "rit of prelimi#iry ma#datory i#@)#ctio# directeda*ai#t Na#0ai a#d t!e !ippi#* compa#y, to i)e a#d deli$er to t!e plai#tiff, a

complete et of #e*otiable of Ladi#* for t!e 1,FD8.6 metric to# of crap a#d a "rit of

prelimi#ary i#@)#ctio# a*ai#t t!e &!i#a a#0i#* &orporatio# a#d t!e Na#0ai to

mai#tai# t!e Letter &redit.

y -pecial +ppera#ce, defe#da#t Na#0ai filed a 5otio# to imi t!e complai#t a#ddiol$e t!e prelimi#ary ma#datory i#@)#ctio# o# t!e follo"i#* *ro)#d% lac0 of

@)ridictio# o$er t!e pero# of t!e defe#da#t a#d t!e )b@ect matter% a#d fail)re to tate

a ca)e of actio# a*ai#t t!e aid defe#da#t

efore t!e -pecial +ppeara#ce, 5otio# to imi a#d iol$e Prelimi#ary5a#datory 4#@)#ctio# co)ld be r)led )po# by t!e co)rt a 1uo, plai#tiff filed a 5otio# to

file ame#ded complai#t

!e motio# to dimi t!e complai#t a#d to diol$e t!e /rit of Prelimi#ary 5a#datory

4#@)#ctio# "ere de#ied, t!e &o)rt !oldi#* t!at t!e *ro)#d t!erefor Ido #ot appear to be

i#d)bitableI.

!e defe#da#t Na#0ai pree#ted a# oppoitio# to t!e motio# to admit ame#ded

complai#t, tati#* t!at t!e ame i belated a#d a# )#fair a#d )#@)t attempt to etabli!

by alle*atio#, a embla#ce of @)ridictio# of t!e &o)rt o$er t!e pero# of t!e defe#da#t

Na#0ai a#d t!e )b@ect matter.

t!e motio# to file a# ame#ded complai#t "a de#ied.

+ motio# for reco#ideratio# of t!e order "a pree#ted

plai#tiff alle*i#* t!at t!e ame#ded complai#t co#tai#ed fact "!ic! are #eceary a#d

i#dipe#able for t!e complete reol)tio# of t!e i)e bet"ee# t!e partie a#d t!at t!e

ame#dme#t i a matter of ri*!t, i#ce defe#da#t !a$e #ot yet filed a repo#i$epleadi#*

+# oppoitio# "a re*itered by defe#da#t. efore reol)tio# o# t!e reco#ideratio#

co)ld be i)ed, defe#da#t filed it +#"er to t!e ori*i#al complai#t co#tai#i#* t!e

c)tomary admiio# a#d de#ial. + -pecial efe#e, it reiterated t!e *ro)#d

co#tai#ed i# t!e 5otio# to imi &omplai#t a#d iol$e t!e /rit of Prelimi#ary5a#datory 4#@)#ctio# a#d t!e ar*)me#t i#$o0ed i# t!e oppoitio#, replie



+t t!e trial, plai#tiff Bar at, t!r) t!e tetimo#y of it -ecretary Pablo Ocampo, !o"ed

t!at it repree#tati$e, 5er. 4!ida a#d omi#a*a, etabli!ed a temporary office at

Room D17 L)#eta Eotel

!at i# pite of t!e repeated dema#d a#d act)al receipt of t!e deli$ery of t!e

1,FD6.8 metric to# of crap teel, Na#0ai a#d t!e team!ip compa#y failed a#dco#ite#tly ref)ed to i)e t!e ill of Ladi#*, "!ic! act pre$e#ted plai#tiff from

collecti#* t!e price of t!e crap from t!e&!i#a a#0i#* &orporatio# a*ai#t t!e

Letter of &redit. efe#da#t $erett -team!ip &ompa#y a#d t!e &!i#a a#0i#*

&orporatio# alo pree#ted e$ide#ce, bot! oral a#d doc)me#tary.

efe#da#t Na#0ai pree#ted Bra#cico -a#to, acco)#ta#t of t!e L)#eta Eotel,

!e lo"er co)rt re#dered @)d*me#t abol$i#*, defe#da#t $erett -team!ip &ompa#y

a#d &!i#a a#0i#* &orporatio# from liability a#d de#ied t!e claim for dama*e, bot!

act)al a#d moral, of t!e partieC fo)#d t!at t!e :)etio# of @)ridictio# o$er t!e pero# of

defe#da#t a#d t!e )b@ect matter !a become moot

efe#da#t ai*#ed i= 26 error alle*edly committed by t!e lo"er co)rt,

21 /!et!er or #ot t!e trial co)rt ac:)ired @)ridictio# o$er t!e )b@ect matter a#d o$er

t!e pero# of t!e defe#da#tappella#t

4)e% /N +rbitratio# +*reeme#t "ai$ed.

efe#da#t co#te#d t!at P!ilippi#e &o)rt !a$e #o @)ridictio# to ta0e co*#iza#ce of t!e

cae beca)e t!e Na#0ai i #ot doi#* b)i#e i# t!e ila#dC a#d t!at "!ile it !a

e#tered i#to t!e tra#actio# i# :)etio#, ame, !o"e$er, doe #ot co#tit)te Idoi#*

b)i#eI, o a to ma0e it ame#able to )mmo# a#d )b@ect it to t!e &o)rtK

@)ridictio#. 4t boltered t!i claim by a pro$iio# i# t!e co#tract "!ic! pro$ide t!at I4#cae of dip)te, oard of +rbitratio# may be formed i# Japa#. eciio# of t!e oard of

+rbitratio# !all be fi#al a#d bi#di#* o# bot! ;AR a#d -LLRI.

4t i tr)e t!at t!e defe#da#t e#tered a -pecial +ppeara#ce, "!erei# it co#teted t!e

@)ridictio# of t!e P!ilippi#e &o)rt to ta0e co*#iza#ce of t!e cae o# *ro)#d

co#tai#ed i# t!e $ario) pleadi#* pree#ted by it. !e motio# to dimi o# t!e *ro)#dof lac0 of @)ridictio# !ad bee# o$err)led beca)e it did #ot appear i#d)bitable.

-)be:)e#tly, !o"e$er, t!e defe#da#t filed it +#"er a#d i#$o0ed defe#e a#d

*ro)#d for dimial of complai#t ot!er t!a# lac0 of @)ridictio# 2-ee par. 1' M 13 of

+#"er to +me#ded &omplai#t, "!ic! circ)mta#ce $eted )po# t!e &o)rt @)ridictio#to ta0e co*#iza#ce of t!e cae.

$e# t!o)*! t!e defe#da#t ob@ect to t!e @)ridictio# of t!e co)rt, if at t!eame time !e

alle*e a#y #o#@)ridictio#al *ro)#d for dimii#* t!e actio#, t!e &o)rt ac:)ire

@)ridictio# o$er !im

!) t!o)*! a -pecial appeara#ce to ob@ect to t!e @)ridictio# i #ot a )bmiio#, if it ifollo"ed by a motio# to dimi or to :)a! t!e motio# i#$o0e t!e @)ridictio# of &o)rt



to decide t!e i)e raied by t!e motio#C a#d a deciio# of t!at i)e bi#d t!e

defe#da#t. !erefore if t!e deciio# of t!e motio# i baed )po# a fi#di#* of fact

;#do)btedly if after !i ob@ectio# to t!e @)ridictio# i "ro#*ly o$err)led, a defe#da#t

file a cro complai#t dema#di#* affirmati$e relief, !e ca##ot t!ereafter claim t!at t!e

co)rt !ad #o @)ridictio# o$er !im.Not o#ly did appella#t alle*e #o#@)ridictio#al *ro)#d i# it pleadi#* to !a$e t!e

complai#t dimied, b)t it alo "e#t i#to trial o# t!e merit a#d pree#ted e$ide#ce

deti#ed to reit appelleeK claim. erily, t!ere co)ld #ot be a better it)atio# of

ac:)ired @)ridictio# baed o# co#e#t. &o#e:)e#tly, t!e pro$iio# of t!e co#tract"!erei# it "a a*reed t!at dip)te !o)ld be )bmitted to a oard of +rbitratio# "!ic!

may be formed i# Japa# 2i# t!e )ppoitio# t!at it ca# apply to t!e matter i# dip)te

payme#t of t!e crap, eem to !a$e bee# "ai$ed "it! appella#tK $ol)#tary

)bmiio#. +part from t!e fact t!at t!e cla)e employ t!e "ord ImayI.

/ERBOR, t!e @)d*me#t appealed from i !ereby affirmed, "it! cot a*ai#tdefe#da#tappella#t Na#0ai o*yo.

G.R. No. ;>2<3 Feruary 25, 1;;2

'H(NG F( IND("#RI" $HI)I$$IN" IN'., ts Drectors and !66cers na7ely:H(ANG /(!'HANG, H(ANG AN'H(NG, %AM" %.R. 'HN, #RI"#AN A.'A#INDIG, I'N# &. AMAD!R, R!'/ A.'. H(ANG, %M ".'. H(ANG, MARIA#R"A "!)IN and IRGI)I! M. D) R!"ARI!, petitio#er,

$.

'!(R# !F A$$A)", H!N. FRAN'I"'! ?. )- $resdn@ %ud@e, Re@onal#ral 'ourt o6 Maat B&ranc4 59C and R!&)'!R $HI)I$$IN", IN'.,repo#de#t.

Petitio#er &!)#* B) 4#d)trie a#d pri$ate repo#de#t Roblecor P!ilippi#e, 4#c. for*ed

a co#tr)ctio# a*reeme#t "!ereby repo#de#t co#tractor committed to co#tr)ctpetitio#er corporatio#K i#d)trialfactory comple= i# a#a"a#, a#za, &a$ite.

+part from t!e aforeaid co#tr)ctio# a*reeme#t, &!)#* B) a#d Roblecor e#tered i#to

t"o 2' ot!er a#cillary co#tract, to "it% for t!e co#tr)ctio# of a dormitory a#d )pport

facilitie a#d for t!e i#tallatio# of electrical, "ater a#d !ydra#t ytem at t!e pla#t ite,

Eo"e$er, repo#de#t Roblecor failed to complete t!e "or0 depite t!e e=te#io# of time

allo"ed it by &!)#* B). -)be:)e#tly, t!e latter !ad to ta0e o$er t!e co#tr)ctio# "!e#

it !ad become e$ide#t t!at Roblecor "a #ot i# a poitio# to f)lfill it obli*atio#.

&laimi#* a# )#atified acco)#t a#d )#paid pro*re billi#* Roblecor filed a petitio#

for &omp)lory +rbitratio# "it! prayer for emporary Retrai#i#* Order beforerepo#de#t Re*io#al rial &o)rt, p)r)a#t to t!e arbitratio# cla)e i# t!e co#tr)ctio#



a*reeme#t. &!)#* B) mo$ed to dimi t!e petitio# a#d f)rt!er prayed for t!e :)a!i#*

of t!e retrai#i#* order.

-)be:)e#t #e*otiatio# bet"ee# t!e partie e$e#t)ally led to t!e form)latio# of a#

arbitratio# a*reeme#t

Repo#de#t Re*io#al rial &o)rt appro$ed t!e arbitratio# a*reeme#t

#*r. /illardo +)#cio# "a appoi#ted a t!e ole arbitrator.

+rbitrator +)#cio# ordered petitio#er to immediately pay repo#de#t co#tractor

Ee f)rt!er declared t!e a"ard a fi#al a#d )#appealable, p)r)a#t to t!e +rbitratio# +*reeme#t precl)di#* @)dicial re$ie" of t!e a"ard.

&o#e:)e#tly, Roblecor mo$ed for t!e co#firmatio# of aid a"ard. O# t!e ot!er !a#d,

&!)#* B) mo$ed to rema#d t!e cae for f)rt!er !eari#* a#d a0ed for a

reco#ideratio# of t!e @)d*me#t a"ard claimi#* t!at +rbitrator +)#cio# committed

t"el$e 21' i#ta#ce of *ra$e error by dire*ardi#* t!e pro$iio# of t!e partieKco#tract.

!e trial co)rt *ra#ted RoblecorK 5otio# for &o#firmatio# of +"ard a#d accordi#*ly,

e#tered @)d*me#t i# co#formity t!ere"it!

&!)#* B) ele$ated t!e cae $ia a petitio# for certiorari to repo#de#t &o)rt of +ppeal.

!e repo#de#t appellate co)rt co#c)rred "it! t!e fi#di#* a#d co#cl)io# of

repo#de#t trial co)rt reol$i#* t!at &!)#* B) a#d it officer, a i*#atorie to t!e

+rbitratio# +*reeme#t are bo)#d to ober$e t!e tip)latio# t!ereof pro$idi#* for t!e

fi#ality of t!e a"ard a#d precl)di#* a#y appeal t!erefrom.

Ee#ce, t!e i#ta#t petitio# a#c!ored o# t!e follo"i#* *ro)#d%

Repo#de#t &o)rt of +ppeal a#d trial J)d*e *ra$ely ab)ed t!eir dicretio# a#dor

e=ceeded t!eir @)ridictio#, a "ell a de#ied d)e proce a#d )bta#tial @)tice to

petitio#er, 2a by ref)i#* to e=ercie t!eir @)dicial a)t!ority a#d le*al d)ty to re$ie"

t!e arbitratio# a"ard, a#d 2b by declari#* t!at petitio#er are etopped from

:)etio#i#* t!e arbitratio# a"ard alle*edly i# $ie" of t!e tip)latio# i# t!e partieKarbitratio# a*reeme#t t!at It!e deciio# of t!e arbitrator !all be fi#al a#d )#appealableI

a#d t!at It!ere !all be #o f)rt!er @)dicial reco)re if eit!er party dia*ree "it! t!e

"!ole or a#y part of t!e arbitratorK a"ard.I

4)e% /N a"ard re$ie"able

)t certai#ly, t!e tip)latio# to refer all f)t)re dip)te to a# arbitrator or to )bmit a#o#*oi#* dip)te to o#e i $alid. ei#* part of a co#tract bet"ee# t!e partie, it i bi#di#*

a#d e#forceable i# co)rt i# cae o#e of t!em #e*lect, fail or ref)e to arbitrate.

Goi#* a tep f)rt!er, i# t!e e$e#t t!at t!ey declare t!eir i#te#tio# to refer t!eir

differe#ce to arbitratio# firt before ta0i#* co)rt actio#, t!i co#tit)te a co#ditio#



precede#t, )c! t!at "!ere a )it !a bee# i#tit)ted premat)rely, t!e co)rt !all

)pe#d t!e ame a#d t!e partie !all be directed fort!"it! to proceed to arbitratio#.

+ co)rt actio# may li0e"ie be pro$e# "!ere t!e arbitrator !a #ot bee# elected by t!e

partie. 15

;#der pree#t la", may t!e partie "!o a*ree to )bmit t!eir dip)te to arbitratio#f)rt!er pro$ide t!at t!e arbitratorK a"ard !all be fi#al, )#appealable a#d e=ec)tory

+rticle 'F(( of t!e &i$il &ode reco*#ize t!e $alidity of )c! tip)latio#, t!)%

+#y tip)latio# t!at t!e arbitratorK a"ard or deciio# !all be fi#al i $alid, "it!o)t

pre@)dice to +rticle 'F38, 'F39 a#d 'F(F.

-imilarly, t!e &o#tr)ctio# 4#d)try +rbitratio# La" pro$ide t!at t!e arbitral a"ard I!all

be fi#al a#d i#appealable e=cept o# :)etio# of la" "!ic! !all be appealable to t!e

-)preme &o)rt./!ere t!e partie a*ree t!at t!e deciio# of t!e arbitrator !all be fi#al a#d

)#appealable a i# t!e i#ta#t cae, t!e pi$otal i#:)iry i "!et!er )b@ect arbitratio#

a"ard i i#deed beyo#d t!e ambit of t!e co)rtK po"er of @)dicial re$ie".

/e r)le i# t!e #e*ati$e. 4t i tated e=plicitly )#der +rt. 'F(( of t!e &i$il &ode t!at t!e

fi#ality of t!e arbitratorK a"ard i #ot abol)te a#d "it!o)t e=ceptio#. /!ere t!eco#ditio# decribed i# +rticle 'F38, 'F39 a#d 'F(F applicable to bot! compromie

a#d arbitratio# are obtai#i#*, t!e arbitratorK a"ard may be a##)lled or reci#ded. 1;

+dditio#ally, )#der -ectio# '( a#d 'D of t!e +rbitratio# La", t!ere are *ro)#d for

$acati#*, modifyi#* or reci#di#* a# arbitratorK a"ard.20

!), if a#d "!e# t!e fact)alcirc)mta#ce referred to i# t!e abo$ecited pro$iio# are pree#t, @)dicial re$ie" oft!e a"ard i properly "arra#ted.

/!at if co)rt ref)e or #e*lect to i#:)ire i#to t!e fact)al milie) of a# arbitratorK a"ard

to determi#e "!et!er it i i# accorda#ce "it! la" or "it!i# t!e cope of !i a)t!ority

Eo" may t!e po"er of @)dicial re$ie" be i#$o0ed

!i i "!ere t!e proper remedy i certiorari )#der R)le 6D of t!e Re$ied R)le of

&o)rt. 4t i to be bor#e i# mi#d, !o"e$er, t!at t!i actio# "ill lie o#ly "!ere a *ra$eab)e of dicretio# or a# act "it!o)t or i# e=ce of @)ridictio# o# t!e part of t!e

$ol)#tary arbitrator i clearly !o"#

+fter cloely t)dyi#* t!e lit of error, a "ell a petitio#erK dic)io# of t!e ame i#

t!eir 5otio# to Rema#d &ae Bor B)rt!er Eeari#* a#d Reco#ideratio# a#d Oppoitio#

to 5otio# for &o#firmatio# of +"ard, "e fi#d t!at petitio#er !a$e amply made o)t acae "!ere t!e $ol)#tary arbitrator failed to apply t!e term a#d pro$iio# of t!e

&o#tr)ctio# +*reeme#t "!ic! form part of t!e la" applicable a bet"ee# t!e partie,

t!) committi#* a *ra$e ab)e of dicretio#. B)rt!ermore, i# *ra#ti#* )#@)tified e=tra



compe#atio# to repo#de#t for e$eral item, !e e=ceeded !i po"er all of "!ic!

"o)ld !a$e co#tit)ted *ro)#d for $acati#* t!e a"ard )#der -ectio# '( 2d of t!e

+rbitratio# La".

, t!e trial co)rt itelf committed *ra$e ab)e of dicretio#. Li0e"ie, t!e appellate co)rt,

i# #ot *i$i#* d)e co)re to t!e petitio#, committed *ra$e ab)e of dicretio#.Repo#de#t co)rt !o)ld #ot !ir0 from e=ercii#* t!eir po"er to re$ie", "!ere )#der

t!e applicable la" a#d @)ripr)de#ce, )c! po"er may be ri*!tf)lly e=erciedC more o

"!ere t!e ob@ectio# raied a*ai#t a# arbitratio# a"ard may properly co#tit)te

*ro)#d for a##)lli#*, $acati#* or modifyi#* aid a"ard )#der t!e la" o# arbitratio#.

/ERBOR, t!e petitio# i GR+N

Asset 'rivati2ation Trust 3s CA

see digest by Ate 4norr

G.R. No. )51;;> Nove7er 23, 1;<<

"#RN MIN!)'! '!R$!RA#I!N, petitio#er, $.'!(R# !F A$$A)" andGRG!RIAN MINING '!M$AN+, repo#de#t.

Angara, Abello, Concepcion, !egala 5 Cru2 for petitioner.

6ernardino . Catbagan, r. for respondent 7regorian #ining Company.

+ erie of co#tract "a e#tered i#to bet"ee# /eter# 5i#olco &orporatio# a#d

Gre*oria# 5i#i#* &ompa#y for t!e operatio# by t!e former of t!e latterK mi#i#* claim.

O#e of t!e tip)latio# i# t!e co#tract 2a declared certai# partic)lar dip)te to be

)b@ect to arbitratio# a#d 2b pecified t!e ma##er of e#forceme#t by co)rt actio# of t!ere)lti#* arbitratio# a"ard. !e tip)latio# read a follo"%

4t i made :)ite clear t!at t!ee t"o 2' clae of dip)te are to be Ireferred to a

board of arbitratio#.I 4t i made e:)ally clear t!at #o actio# co#cer#i#* t!em may be

i#tit)ted i# a#y co)rt by eit!er party 21 unless the controversy be Ifirst submitted to

and received by said board of arbitrators ,I a#d 2' only if the action Ibe based upon the

award as obtained . I 4# t!e e$e#t of )c! a# actio#, t!e $e#)e t!ereof I!all be i# t!e

&ity of 5a#ila.I

/eter# 5i#olco &orporatio# )be:)e#tly e=ec)ted a#ot!er a*reeme#t "it! a#ot!er

firm, t!e reamer 5i#i#* +ociatio#, for t!e $alidatio# of 36 mi#eral lode claim i# t!elatterK fa$or. + it !appe#ed, t!oe 36 claim "ere belie$ed by Gre*oria# 5i#i#*

&ompa#y to be i# co#flict "it!, a#d !ad bee# )perimpoed o# it o"# claim, "!ic! it

!ad earlier located a#d "!ic! "ere i# fact )b@ect of t!e erie of a*reeme#t i*#ed by

it a#d /eter# 5i#olco &orporatio#. Gre*oria# 5i#i#* &ompa#y co#e:)e#tly bro)*!t

)it a*ai#t /eter# 5i#olco &orporatio# i# t!e &o)rt of Birt 4#ta#ce of a*)io a#d

e#*)et, for t!e reciio# of t!eir a*reeme#t a#d dama*e



/eter# 5i#olco mo$ed to dimi t!e complai#t

4# t!e mea#time, a#d "!ile it "a ee0i#* reco#ideratio# of t!e a*)io &o)rtK

ad$ere order, /eter# 5i#olco filed a petitio# "it! t!e &o)rt of Birt 4#ta#ce of 5a#ila

to compel arbitratio#, i# li#e "it! it a*reeme#t "it! Gre*oria#, a#d for reco$ery of

dama*e a*ai#t t!e latter. +fter a# e=c!a#*e of pleadi#*, t!e petitio# "a *ra#ted.Gre*oria# o)*!t to ta0e a# appeal to t!e &o)rt of +ppealC b)t t!e 5a#ila &o)rt r)led

t!at t!e appeal !o)ld more properly be ta0e# to t!i &o)rt.

Gre*oria# decided to fore*o t!e appeal, a#d to a"ait i#tead t!e deciio# of t!e &o)rt

of +ppeal o# t!e petitio# for certiorari a#d pro!ibitio# "!ic! /eter# 5i#olco !ad i# t!emea#time filed to aail t!e Order of t!e &B4 of a*)io a#d e#*)et

4t i /eter# 5i#olcoK t!ei t!at it "a re$erible error for t!e &o)rt of +ppeal to fi#d

a#d declare t!at

a t!e $e#)e of t!e actio# i#tit)ted a*ai#t it by Gre*oria# 5i#i#* &o. "a

improperly laidC

b t!e actio# co)ld #ot be i#tit)ted )#til a#d )#le t!e dip)te )b@ect t!ereof!ad firt bee# reol$ed by arbitratio#, a co$e#a#ted by t!e partieC

4)e%/N /eter# 5i#olco i barred i# fili#* t!e cae i# t!e co)rt

!e term of t!e applicable pro$iio# of t!e partieK a*reeme#t are i#deed Iclear,

)#ambi*)o), a#d )#e:)i$ocal.I + poi#ted o)t i# t!e ope#i#* para*rap! of t!i

opi#io#, o#ly t"o 2' 0i#d of Idip)te, differe#ce or dia*reeme#tI !a$e bee# made)b@ect of arbitratio#%

1 t!oe Ire*ardi#* t!e mea#i#*, applicatio# or effect of t!e a*reeme#t2 or a#y cla)e

t!ereofCI a#d

' t!oe Ii# re*ard to t!e amo)#t a#d comp)tatio# of t!e royaltie, ded)ctio#, or ot!er

item of e=pe#eI pro$ided i# t!e a*reeme#t.

!e co#tro$ery i#$ol$ed i# t!e actio# bro)*!t by Gre*oria# a*ai#t /eter# 5i#olco

"a t!e alle*ed $iolatio# by t!e latter of it a*reeme#t "it! t!e former, co#iti#* of it

e#teri#* i#to a co#tract "it! a t!ird party for t!e $alidatio# of mi#i#* claim "!ic! it

0#e" !ad already bee# located by Gre*oria#. /!at "a i#$ol$ed, i# ot!er "ord, "a

t!e breac! of fait!, or t!e do)ble deali#* of /eter# 5i#olco i# )#derta0i#* to $alidatei# fa$or of a t!ird party t!e elfame claim "!ic! it !ad earlier )#derta0e# to operate

for Gre*oria#. &learly, )c! a co#tro$ery doe #ot fall "it!i# eit!er of t!e t"o

cate*orie of dip)te "!ic! m)t firt be )bmitted for arbitratio#. !e tip)latio# i#

:)etio# 2for arbitratio# to be firt !ad did #ot t!erefore co#tit)te a# impedime#t or a

bar to t!e i#tit)tio# of t!e actio# comme#ced by Gre*oria# a*ai#t /eter# 5i#olco,

for reciio# a#d dama*e.



-i#ce t!e tip)latio# a to $e#)e become rele$a#t o#ly "!e# a# actio# !a to be

i#tit)ted Ibaed )po# t!e a"ard a obtai#edI 2from t!e board of arbitrator 2i.e., a t!e

mode of e#forceme#t of t!e a"ardC a#d i#ce t!ere i !ere #o )c! a"ard beca)e #o

co#tro$ery )b@ect to arbitratio# e=ited a#d "a e$er )bmitted to arbitratio#, #o errorca# poibly be imp)ted to t!e rial &o)rt i# #ot applyi#* t!e tip)latio# to t!e actio# a

1uo. 4# a#y e$e#t, it i #ot e#tirely ami to retate t!e doctri#e t!at tip)latio# i# aco#tract, "!ic! pecify a defi#ite place for t!e i#tit)tio# of a# actio# arii#* i#

co##ectio# t!ere"it!, do #ot, a a r)le, )perede t!e *e#eral r)le o# t!e matter et

o)t i# R)le ( of t!e R)le of &o)rt, b)t !o)ld be co#tr)ed merely a a# a*reeme#t o#a# additio#al for)m, #ot a limiti#* $e#)e to t!e pecified place

+# 8ngineering Case

See digest by Ate 4norr

The rule of liberality9 so long as a clause is susceptible of an interpretation that covers

the asserted dispute, an order to arbitrate should be granted since any doubt should beresolved in favor of arbitration.

*ome 6an:ers Case

-ee &R 0i#* di*et by &amille Remoroza

G.R. No. 12;;1> Marc4 2>, 2001

MAG))AN 'A$I#A) MANAGMN# '!R$!RA#I!N and MAG))AN 'A$I#A)H!)DING" '!R$!RA#I!N, petitio#er, $.R!)AND! M. -!"A and H!N. %!" $.

"!&RAN!, %R., n 4s caacty as $resdn@ %ud@e o6 &ranc4 5< o6 t4e Re@onal#ral 'ourt o6 'eu, 9t4 %udcal Re@on, repo#de#t.

&(NA, J .:

;#der a ma#a*eme#t a*reeme#t e#tered i#to

5a*ella# &apital Eoldi#* &orporatio# 5&E&H appoi#ted 5a*ella# &apital

5a#a*eme#t &orporatio# 5&5&H a ma#a*er for t!e operatio# of it b)i#e a#d

affair.1 P)r)a#t t!ereto, o# t!e ame mo#t!, 5&E&, 5&5&, a#d pri$ate repo#de#t

Rola#do 5. oa e#tered i#to a# Imployme#t +*reeme#tI dei*#ati#* oa a

Preide#t a#d &!ief =ec)ti$e Officer of 5&E&.;#der t!e Imployme#t +*reeme#tI, t!e term of repo#de#t oaK employme#t !all

be cotermi#o) "it! t!e ma#a*eme#t a*reeme#t, or )#til 5arc! 1996, )#le oo#er

termi#ated p)r)a#t to t!e pro$iio# of t!e mployme#t +*reeme#t.3 !e *ro)#d fortermi#atio# of employme#t are alo pro$ided i# t!e mployme#t +*reeme#t.

t!e ma@ority of 5&E&K oard of irector decided #ot to reelect repo#de#t oa a

Preide#t a#d &!ief =ec)ti$e Officer of 5&E& o# acco)#t of lo of tr)t a#d



co#fide#ce( arii#* from alle*ed $iolatio# of t!e reol)tio# i)ed by 5&E&K board of

director a#d of t!e #o#competitio# cla)e of t!e mployme#t +*reeme#t.D

Ne$ert!ele, repo#de#t oa "a elected to a #e" poitio# a 5&E&K ice

&!airma#&!airma# for Ne" e#t)re e$elopme#t

Repo#de#t oa comm)#icated !i rei*#atio# for *ood reao# from t!e poitio# ofice&!airma# )#der para*rap! 7 of t!e 8mployment Agreement o# t!e *ro)#d t!at

aid poitio# !ad le repo#ibility a#d cope t!a# Preide#t a#d &!ief =ec)ti$e

Officer. Ee dema#ded t!at !e be *i$e# termi#atio# be#efit a pro$ided for i# -ectio# 8

2c 2i 2ii a#d 2iii of t!e 8mployment Agreement .

5&E& comm)#icated it #o#accepta#ce of repo#de#t oaK rei*#atio# for *ood

reao#, b)t i#tead i#formed !im t!at t!e 8mployment Agreement i termi#ated for

ca)e i# accorda#ce "it! -ectio# 7 2a 2$ of t!e aid a*reeme#t, o# acco)#t of !i

breac! of -ectio# 1' t!ereof. Repo#de#t oa "a f)rt!er ad$ied t!at !e !all !a$e

#o f)rt!er ri*!t )#der t!e aid +*reeme#t or a#y claim a*ai#t t!e 5a#a*er or t!e

&orporatio# e=cept t!e ri*!t to recei$e "it!i# t!irty 23F day t!e amo)#t tated i#-ectio# 8 2a 2i 2ii of t!e +*reeme#t

ia*reei#* "it! t!e poitio# ta0e# by petitio#er, repo#de#t oa i#$o0ed t!e

+rbitratio# &la)e of t!e 8mployment Agreement ,

repo#de#t oa dei*#ated !i brot!er, +tty. Bra#ci oa, a !i repree#tati$e i# t!e

arbitratio# pa#el9 "!ile 5&E& dei*#ated +tty. 4#i*o -. Bo@a1F a#d 5&5& #omi#ated

+tty. #ri:)e 4. )iao#11 a t!eir repecti$e repree#tati$e i# t!e arbitratio# pa#el.

Eo"e$er, i#tead of )bmitti#* t!e dip)te to arbitratio#, repo#de#t oa, filed a#

actio# for dama*e a*ai#t petitio#er before t!e Re*io#al rial &o)rt of &eb) 1' to

e#force !i be#efit )#der t!e 8mployment Agreement .petitio#er filed a motio# to dimi13 ar*)i#* t!at 21 t!e trial co)rt !a #o @)ridictio#

o$er t!e i#ta#t cae i#ce repo#de#t oaK claim !o)ld be reol$ed t!ro)*!

arbitratio# p)r)a#t to -ectio# '3 of t!e mployme#t +*reeme#t "it! petitio#er

t!e R& ra#c! D8 of &eb) &ity i)ed a# Order de#yi#* petitio#er motio# to dimi)po# t!e fi#di#* t!at 21 t!e $alidity a#d le*ality of t!e arbitratio# pro$iio# ca# o#ly be

determi#ed after trial o# t!e meritC

Petitio#er filed a motio# for reco#ideratio# "!ic! "a de#ied by t!e R&

i# complia#ce "it! t!e earlier order of t!e co)rt directi#* petitio#er to file repo#i$epleadi#* to t!e ame#ded complai#t, petitio#er filed t!eir +#"er +d &a)telam "it!co)#terclaim reiterati#* t!eir poitio# t!at t!e dip)te !o)ld be ettled t!ro)*!

arbitratio# a#d t!e co)rt !ad #o @)ridictio# o$er t!e #at)re of t!e actio# t!e trial co)rt

i)ed it pretrial order declari#* t!e pretrial ta*e termi#ated a#d etti#* t!e cae for

!eari#*.



petitio#er filed t!eir 5otio# Ad Cautelam for t!e &orrectio#, +dditio# a#d &larificatio# of

t!e Pretrial Order "!ic! "a de#ied by t!e co)rt

petitio#er 5&5& a#d 5&E& filed a 5otio# Ad Cautelam for t!e partie to file t!eir

5emora#da to )pport t!eir repecti$e ta#d o# t!e i)e of t!e $alidity of t!e

Iarbitratio# cla)eI co#tai#ed i# t!e 8mployment Agreement . 4# a# order t!e trial co)rt de#ied t!e motio# of petitio#er 5&5& a#d 5&E&.

petitio#er 5&5& a#d 5&E& filed a petitio# for certiorari a#d pro!ibitio# )#der R)le 6D

of t!e R)le of &o)rt "it! t!e &o)rt of +ppeal,

t!e &o)rt of +ppeal re#dered a deciio# 2orderi#* t!e lo"er co)rt to reol$e $alidity of

arbitratio#,

Petitio#er filed a motio# for partial reco#ideratio# of t!e &+ deciio# prayi#* 21 for

t!e dimial of t!e cae i# t!e trial co)rt, o# t!e *ro)#d of lac0 of @)ridictio#, a#d 2'

t!at t!e partie be directed to )bmit t!eir dip)te to arbitratio#

4# complia#ce "it! t!e &+ deciio#, t!e trial co)rt, re#dered a deciio# declari#* t!e

Iarbitratio# cla)eI i# t!e 8mployment Agreement partially $oid a#d of #o effect.

/ERBOR, premie co#idered, @)d*me#t i !ereby re#dered partially

declari#* t!e arbitratio# cla)e of t!e mployme#t +*reeme#t $oid a#d of #o

effect, o#ly i#ofar a it co#cer# t!e compoitio# of t!e pa#el of arbitrator, a#ddirecti#* t!e partie to proceed to arbitratio# i# accorda#ce "it! t!e mployme#t

+*reeme#t )#der t!e pa#el of t!ree 23 arbitrator, o#e for t!e plai#tiff, o#e for

t!e defe#da#t, a#d t!e t!ird to be c!oe# by bot! t!e plai#tiff a#d defe#da#t.

4# $ie" of t!e trial co)rtK deciio#, petitio#er filed t!i petitio# for re$ie" o# certiorari,)#der R)le (D of t!e R)le of &o)rt,

4)e% /N +rbitratio# cla)e i $alid

/e r)le a*ai#t t!e petitio#er.

4t i error for t!e petitio#er to claim t!at t!e cae !o)ld fall )#der t!e @)ridictio# of t!e

-ec)ritie a#d =c!a#*e &ommiio#

!e co#tro$ery doe #ot i# a#y"ay i#$ol$e t!e electio#appoi#tme#t of officer of

petitio#er 5&E&, a claimed by petitio#er i# t!eir ai*#me#t of error. Repo#de#toaK ame#ded complai#t foc)e !ea$ily o# t!e ille*ality of t!e 8mployment

Agreement;s I+rbitratio# &la)eI i#itially i#$o0ed by !im i# ee0i#* !i termi#atio#

be#efit )#der -ectio# 8 of t!e employme#t co#tract. +#d )#der Rep)blic +ct No. 876,

ot!er"ie 0#o"# a t!e I+rbitratio# La",I it i t!e re*io#al trial co)rt "!ic! e=ercie

@)ridictio# o$er :)etio# relati#* to arbitratio#.



+lt!o)*! t!e co#tro$ery "!ic! pa"#ed t!e actio# co#cer# t!e $alidity of t!e

termi#atio# of t!e er$ice of a corporate officer, t!e i)e o# t!e $alidity a#d effecti$ity of

t!e arbitratio# cla)e i determi#able by t!e re*)lar co)rt, a#d do #ot fall "it!i# t!e

e=cl)i$e a#d ori*i#al @)ridictio# of t!e -&.

B)rt!ermore, t!e deciio# of t!e &o)rt of +ppeal i# &+G.R. -P No. (3FD9 affirmi#*t!e trial co)rtK a)mptio# of @)ridictio# o$er t!e cae !a become t!e Ila" of t!e

caeI "!ic! #o" bi#d t!e petitio#er. !e Ila" of t!e caeI doctri#e !a bee# defi#ed

a Ia term applied to a# etabli!ed r)le t!at "!e# a# appellate co)rt pae o# a

:)etio# a#d rema#d t!e ca)e to t!e lo"er co)rt for f)rt!er proceedi#*, t!e :)etio#t!ere ettled become t!e la" of t!e cae )po# )be:)e#t appeal.I

Petitio#er, t!erefore, are barred from c!alle#*i#* a#e", t!ro)*! a#ot!er remedial

mea)re a#d i# a#y ot!er for)m, t!e a)t!ority of t!e re*io#al trial co)rt to reol$e t!e

$alidity of t!e arbitratio# cla)e, let t!ey be tr)ly *)ilty of for)m!oppi#* "!ic! t!e

co)rt co#ite#tly co#ider a a co#t)macio) practice t!at derail t!e orderly

admi#itratio# of @)tice.

:)ally )#a$aili#* for t!e petitio#er i t!e re$ie" by t!i &o)rt, $ia t!e i#ta#t petitio#,

of t!e fact)al fi#di#* made by t!e trial co)rt t!at t!e compoitio# of t!e pa#el of

arbitrator "o)ld, i# all probability, "or0 i#@)tice to repo#de#t oa. /e !a$e

repeatedly treed t!at t!e @)ridictio# of t!i &o)rt i# a petitio# for re$ie" o# certiorari

)#der R)le (D of t!e Re$ied R)le of &o)rt i limited to re$ie"i#* o#ly error of la",#ot of fact, )#le t!e fact)al fi#di#* complai#ed of are de$oid of )pport by t!e

e$ide#ce o# record, or t!e aailed @)d*me#t i baed o# miappre!e#io# of fact. '9

$e# if proced)ral r)le are dire*arded, a#d a cr)ti#y of t!e merit of t!e cae i

)#derta0e#, t!i &o)rt fi#d t!e trial co)rtK ober$atio# o# "!y t!e compoitio# of t!epa#el of arbitrator !o)ld be $oided, i#cii$ely correct o a to merit o)r appro$al.!),

IBrom t!e memora#da of bot! ide, t!e &o)rt i of t!e $ie" t!at t!e defe#da#t

petitio#erH 5&5& a#d 5&E& repree#t t!e ame i#teret. !ere i #o :)arrel t!at bot!

defe#da#t are e#tirely t"o differe#t corporatio# "it! pero#alitie diti#ct a#d

eparate from eac! ot!er a#d t!at a corporatio# !a a pero#ality diti#ct a#d eparate

from t!oe pero# compoi#* t!e corporatio# a "ell a from t!at of a#y ot!er le*ale#tity to "!ic! it may be related.

)t a t!e defe#da#t !erei# petitio#erH repree#t t!e ame i#teret, it co)ld #e$er bee=pected, i# t!e arbitratio# proceedi#*, t!at t!ey "o)ld #ot protect a#d preer$e t!eir

o"# i#teret, m)c! le, "o)ld bot! or eit!er fa$or t!e i#teret of t!e plai#tiff. !earbitratio# la", a all ot!er la", i i#te#ded for t!e *ood a#d "elfare of e$erybody. 4#

fact, "!at i bei#* c!alle#*ed by t!e plai#tiff !erei# i #ot t!e la" itelf b)t t!e pro$iio#

of t!e mployme#t +*reeme#t baed o# t!e aid la", "!ic! i t!e arbitratio# cla)e b)t

o#ly a re*ard t!e compoitio# of t!e pa#el of arbitrator.



Brom t!e fore*oi#* arbitratio# cla)e, it appear t!at t!e t"o 2' defe#da#t petitio#erH

25&5& a#d 5&E& !a$e o#e 21 arbitrator eac! to compoe t!e pa#el of t!ree 23

arbitrator. + t!e defe#da#t 5&5& i t!e 5a#a*er of defe#da#t 5&E&, it deciio# or

$ote i# t!e arbitratio# proceedi#* "o)ld #at)rally a#d certai#ly be i# fa$or of itemployer a#d t!e defe#da#t 5&E& "o)ld !a$e to protect a#d preer$e it o"# i#teretC

!e#ce, t!e t"o 2' $ote of bot! defe#da#t 25&5& a#d 5&E& "o)ld certai#ly bea*ai#t t!e lo#e arbitrator for t!e plai#tiff !erei# defe#da#tH.

+ccordi#*ly, t!e arbitratio# cla)e, i#ofar a t!e compoitio# of t!e pa#el of arbitrator

i co#cer#ed !o)ld be declared $oid a#d of #o effect, beca)e t!e la" ay, I+#ycla)e *i$i#* o#e of t!e partie po"er to c!ooe more arbitrator t!a# t!e ot!er i $oid

a#d of #o effectI

4# t!i co##ectio#, petitio#erK attempt to p)t repo#de#t i# etoppel i# aaili#* t!e

arbitratio# cla)e m)t be tr)c0 do"#. Bor o#e, t!i i)e of etoppel, a li0e"ie

#oted by t!e &o)rt of +ppeal, fo)#d it "ay for t!e firt time o#ly o# appeal. /ell

ettled i t!e r)le t!at i)e #ot raied belo" ca##ot be reol$ed o# re$ie" i# !i*!erco)rt.31 -eco#dly, employme#t a*reeme#t )c! a t!e o#e at bar are ))ally

co#tract of ad!eio#. +#y ambi*)ity i# it pro$iio# i *e#erally reol$ed a*ai#t t!e

party "!o drafted t!e doc)me#t.

/e #eed o#ly to emp!aize i# cloi#* t!at arbitratio# proceedi#* are dei*#ed to le$elt!e playi#* field amo#* t!e partie i# p)r)it of a m)t)ally acceptable ol)tio# to t!eir

co#flicti#* claim. +#y arra#*eme#t or c!eme t!at "o)ld *i$e )#d)e ad$a#ta*e to a

party i# t!e #e*otiati#* table i a#at!ema to t!e $ery p)rpoe of arbitratio# a#d !o)ld,

t!erefore, be reited.

G.R. No. 12031; !ctoer >, 1;;5

)(-!N D)!$MN# &AN/, petitio#er, $.A""!'IA#I!N !F )(-!ND)!$MN# &AN/ M$)!+" and A##+. "#R ". GAR'IA n 4er caactyas !)(N#AR+ AR&I#RA#!R, repo#de#t.

Brom a )bmiio# a*reeme#t of t!e L)zo# e$elopme#t a#0 2L a#d t!e

+ociatio# of L)zo# e$elopme#t a#0 mployee 2+L aroe a# arbitratio# caeto reol$e t!e follo"i#* i)e%

/!et!er or #ot t!e compa#y !a $iolated t!e &ollecti$e ar*ai#i#* +*reeme#t

pro$iio# a#d t!e 5emora#d)m of +*reeme#t dated +pril 199(, o# promotio#.

+t a co#fere#ce, t!e partie a*reed o# t!e )bmiio# of t!eir repecti$e Poitio#

Paper

+tty. ter -. Garcia, i# !er capacity a ol)#tary +rbitrator, recei$ed +LK Poitio#Paper



L, o# t!e ot!er !a#d, failed to )bmit it Poitio# Paper depite a letter from t!e

ol)#tary +rbitrator remi#di#* t!em to do o. /it!o)t LK Poitio# Paper, t!e

ol)#tary +rbitrator re#dered a deciio# dipoi#* a follo"%

/ERBOR, fi#di#* i !ereby made t!at t!e a#0 !a #ot ad!ered to t!e

&ollecti$e ar*ai#i#* +*reeme#t pro$iio# #or t!e 5emora#d)m of +*reeme#to# promotio#.

Ee#ce, t!i petitio# for certiorari a#d pro!ibitio# ee0i#* to et aide t!e deciio# of t!e

ol)#tary +rbitrator a#d to pro!ibit !er from e#forci#* t!e ame.

4)e% /N deciio# of a $ol)#tary arbiter ca# be appealed to t!e &o)rt of +ppeal

4# labor la" co#te=t, arbitratio# i t!e refere#ce of a labor dip)te to a# impartial t!ird

pero# for determi#atio# o# t!e bai of e$ide#ce a#d ar*)me#t pree#ted by )c!

partie "!o !a$e bo)#d t!emel$e to accept t!e deciio# of t!e arbitrator a fi#al a#d

bi#di#*.

+rbitratio# may be claified, o# t!e bai of t!e obli*atio# o# "!ic! it i baed, a

eit!er comp)lory or $ol)#tary.

&omp)lory arbitratio# i a ytem "!ereby t!e partie to a dip)te are compelled by

t!e *o$er#me#t to fore*o t!eir ri*!t to tri0e a#d are compelled to accept t!e reol)tio#

of t!eir dip)te t!ro)*! arbitratio# by a t!ird party. 1 !e ee#ce of arbitratio# remai#

i#ce a reol)tio# of a dip)te i arri$ed at by reort to a dii#tereted t!ird party "!oe

deciio# i fi#al a#d bi#di#* o# t!e partie, b)t i# comp)lory arbitratio#, )c! a t!irdparty i #ormally appoi#ted by t!e *o$er#me#t.

$ol)#tary arbitratio#, o# t!e ot!er !a#d, referral of a dip)te by t!e partie i made,p)r)a#t to a $ol)#tary arbitratio# cla)e i# t!eir collecti$e a*reeme#t, to a# impartial

t!ird pero# for a fi#al a#d bi#di#* reol)tio#.

4deally, arbitratio# a"ard are )ppoed to be complied "it! by bot! partie "it!o)tdelay, )c! t!at o#ce a# a"ard !a bee# re#dered by a# arbitrator, #ot!i#* i left to be

do#e by bot! partie b)t to comply "it! t!e ame. +fter all, t!ey are pre)med to !a$e

freely c!oe# arbitratio# a t!e mode of ettleme#t for t!at partic)lar dip)te. P)r)a#t

t!ereto, t!ey !a$e c!oe# a m)t)ally acceptable arbitrator "!o !all !ear a#d decide

t!eir cae. +bo$e all, t!ey !a$e m)t)ally a*reed to de bo)#d by aid arbitratorKdeciio#.

4# t!e P!ilippi#e co#te=t, t!e partie to a &ollecti$e ar*ai#i#* +*reeme#t 2&+ are

re:)ired to i#cl)de t!erei# pro$iio# for a mac!i#ery for t!e reol)tio# of *rie$a#ce

arii#* from t!e i#terpretatio# or impleme#tatio# of t!e &+ or compa#y pero##el

policie.

partie to a &+ !all #ame a#d dei*#ate t!erei# a $ol)#tary arbitrator or a pa#el of

arbitrator, or i#cl)de a proced)re for t!eir electio#, preferably from t!oe accredited



by t!e Natio#al &o#ciliatio# a#d 5ediatio# oard 2N&5. +rticle '61 of t!e Labor

&ode accordi#*ly pro$ide for e=cl)i$e ori*i#al @)ridictio# of )c! $ol)#tary arbitrator

or pa#el of arbitrator o$er 21 t!e i#terpretatio# or impleme#tatio# of t!e &+ a#d 2'

t!e i#terpretatio# or e#forceme#t of compa#y pero##el policie.

+rticle '6' a)t!orize t!em, b)t o#ly )po# a*reeme#t of t!e partie, to e=ercie @)ridictio# o$er ot!er labor dip)te.

O# t!e ot!er !a#d, a labor arbiter )#der +rticle '17 of t!e Labor &ode !a @)ridictio#

o$er t!e follo"i#* e#)merated cae 2pro$ided e#)meratio#

!e tate of o)r pree#t la" relati#* to $ol)#tary arbitratio# pro$ide t!at I2t!e a"ard or deciio# of t!e ol)#tary +rbitrator . . . !all be fi#al a#d e=ec)tory after te# 21F

cale#dar day from receipt of t!e copy of t!e a"ard or deciio# by t!e partie,I 5 "!ile

t!e I2deciio#, a"ard, or order of t!e Labor +rbiter are fi#al a#d e=ec)tory )#le

appealed to t!e &ommiio# by a#y or bot! partie "it!i# te# 21F cale#dar day from

receipt of )c! deciio#, a"ard, or order.I > Ee#ce, "!ile t!ere i a# e=pre modeof appeal from t!e deciio# of a labor arbiter, Rep)blic +ct No. 671D i ile#t "it!

repect to a# appeal from t!e deciio# of a $ol)#tary arbitrator.

Aet, pat practice !o" t!at a deciio# or a"ard of a $ol)#tary arbitrator i, more ofte#

t!a# #ot, ele$ated to t!e -)preme &o)rt itelf o# a petitio# for certiorari , 9 i# effecte:)ati#* t!e $ol)#tary arbitrator "it! t!e NLR& or t!e &o)rt of +ppeal

a"ard of $ol)#tary arbitrator determi#e t!e ri*!t of partieC !e#ce, t!eir deciio#

!a$e t!e ame le*al effect a @)d*me#t of a co)rt.

a $ol)#tary arbitrator by t!e #at)re of !er f)#ctio# act i# a :)ai@)dicial capacity.I

;#der t!ee r)li#*, it follo" t!at t!e $ol)#tary arbitrator, "!et!er acti#* olely or i# apa#el, e#@oy i# la" the status of a 1uasi$<udicial agency b)t i#depe#de#t of, a#d apart

from, t!e NLR& i#ce !i deciio# are #ot appealable to t!e latter.

-ectio# 9 of .P. l*. 1'9, a ame#ded by Rep)blic +ct No. 79F', pro$ide t!at t!e

&o)rt of +ppeal !all e=ercie%

=cl)i$e appellate @)ridictio# o$er all fi#al @)d*me#t, deciio#, reol)tio#, order or a"ard of Re*io#al rial &o)rt a#d :)ai@)dicial a*e#cie, i#tr)me#talitie, board or

commiio#, i#cl)di#* t!e -ec)ritie a#d =c!a#*e &ommiio#, t!e mployee

&ompe#atio# &ommiio# a#d t!e &i$il -er$ice &ommiio#, e=cept t!oe falli#*

"it!i# t!e appellate @)ridictio# of t!e -)preme &o)rt i# accorda#ce "it! t!e&o#tit)tio#, t!e Labor &ode of t!e P!ilippi#e )#der Preide#tial ecree No. ((', aame#ded, t!e pro$iio# of t!i +ct, a#d of )bpara*rap! 21 of t!e t!ird para*rap! a#d

)bpara*rap! 2( of t!e fo)rt! para*rap! of -ectio# 17 of t!e J)diciary +ct of 19(8.

+)mi#* arguendo t!at t!e $ol)#tary arbitrator or t!e pa#el of $ol)#tary arbitrator

may #ot trictly be co#idered a a :)ai@)dicial a*e#cy, board or commiio#, till bot!

!e a#d t!e pa#el are compre!e#ded "it!i# t!e co#cept of a I:)ai@)dicial



i#tr)me#tality.I 4t may e$e# be tated t!at it "a to meet t!e $ery it)atio# pree#ted

by t!e :)ai@)dicial f)#ctio# of t!e $ol)#tary arbitrator !ere, a "ell a t!e

)be:)e#t arbitratorarbitral trib)#al operati#* )#der t!e &o#tr)ctio# 4#d)try

+rbitratio# &ommiio#, 11 t!at t!e broader term Ii#tr)me#talitieI "a p)rpoelyi#cl)ded i# t!e abo$e:)oted pro$iio#.

+# Ii#tr)me#talityI i a#yt!i#* )ed a a mea# or a*e#cy. 12 !), t!e term

*o$er#me#tal Ia*e#cyI or Ii#tr)me#talityI are y#o#ymo) i# t!e e#e t!at eit!er of

t!em i a mea# by "!ic! a *o$er#me#t act, or by "!ic! a certai# *o$er#me#t act or

f)#ctio# i performed

!e "ord Ii#tr)me#tality,I "it! repect to a tate, co#template a# a)t!ority to "!ic!t!e tate dele*ate *o$er#me#tal po"er for t!e performa#ce of a tate f)#ctio#

!e $ol)#tary arbitrator #o le perform a tate f)#ctio# p)r)a#t to a *o$er#me#tal

po"er dele*ated to !im )#der t!e pro$iio# t!erefor i# t!e Labor &ode a#d !e fall,

t!erefore, "it!i# t!e co#templatio# of t!e term Ii#tr)me#talityI i# t!e afore:)oted -ec.9 of .P. 1'9.

!e fact t!at !i f)#ctio# a#d po"er are pro$ided for i# t!e Labor &ode doe #ot

place !im "it!i# t!e e=ceptio# to aid -ec. 9 i#ce !e i a :)ai@)dicial i#tr)me#tality

a co#templated t!erei#

A fortiori , t!e deciio# or a"ard of t!e $ol)#tary arbitrator or pa#el of arbitrator !o)ldli0e"ie be appealable to t!e &o)rt of +ppeal, i# li#e "it! t!e proced)re o)tli#ed i#

Re$ied +dmi#itrati$e &irc)lar No. 19D, @)t li0e t!oe of t!e :)ai@)dicial a*e#cie,

board a#d commiio# e#)merated t!erei#.

!i "o)ld be i# f)rt!era#ce of, a#d co#ite#t "it!, t!e ori*i#al p)rpoe of &irc)lar No.191 to pro$ide a )#iform proced)re for t!e appellate re$ie" of ad@)dicatio# of all:)ai@)dicial e#titie 1< #ot e=prely e=cepted from t!e co$era*e of -ec. 9 of .P. 1'9

by eit!er t!e &o#tit)tio# or a#ot!er tat)te. Nor "ill it r)# co)#ter to t!e le*ilati$e

i#te#dme#t t!at deciio# of t!e NLR& be re$ie"able directly by t!e -)preme &o)rt

i#ce, preciely, t!e cae "it!i# t!e ad@)dicati$e compete#ce of t!e $ol)#tary arbitrator

are e=cl)ded from t!e @)ridictio# of t!e NLR& or t!e labor arbiter.

4# t!e ame $ei#, it i "ort! me#tio#i#* t!at )#der -ectio# '' of Rep)blic +ct No. 876,

alo 0#o"# a t!e +rbitratio# La", arbitratio# i deemed a pecial proceedi#* of "!ic!

t!e co)rt pecified i# t!e co#tract or )bmiio#, or if #o#e be pecified, t!e Re*io#al

rial &o)rt for t!e pro$i#ce or city i# "!ic! o#e of t!e partie reide or i doi#*

b)i#e, or i# "!ic! t!e arbitratio# i !eld, !all !a$e @)ridictio#. + party to t!eco#tro$ery may, at a#y time "it!i# o#e 21 mo#t! after a# a"ard i made, apply to t!e

co)rt !a$i#* @)ridictio# for a# order co#firmi#* t!e a"ard a#d t!e co)rt m)t *ra#t )c!

order )#le t!e a"ard i $acated, modified or corrected. 1;



4# effect, t!i e:)ate t!e a"ard or deciio# of t!e $ol)#tary arbitrator "it! t!at of t!e

re*io#al trial co)rt.

&o#e:)e#tly, i# a petitio# for certiorari from t!at a"ard or deciio#, t!e &o)rt of

+ppeal m)t be deemed to !a$e co#c)rre#t @)ridictio# "it! t!e -)preme &o)rt. + a

matter of policy, t!i &o)rt !all !e#cefort! rema#d to t!e &o)rt of +ppeal petitio# oft!i #at)re for proper dipoitio#.

Chapter 0 The Arbitration 'roceedings

A.M. No. R#%0015>< Feruary 15, 2001

H!N. R!&R# -. &AR&R", "ecretary o6 t4e Interor and )ocal Govern7ent,%(ANI#! D G(-MAN and )('I! MARGA))! I, petitio#er, $.%(DG$RF'#! A.". )AG(I!, %R., repo#de#t.

D )!N, %R., J .:

efore ) i a# admi#itrati$e complai#t for alle*ed $iolatio# of +rticle 'F( 2#o"i#*ly

Re#deri#* ;#@)t J)d*me#t of t!e Re$ied Pe#al &ode, ectio# 32e of Rep)blic +ct

No. 3F19 a#d ectio# (2b a#d 2c of Rep)blic +ct No. 6713, filed a*ai#t repo#de#t @)d*e i# co##ectio# "it! !i ac:)ittal of t!e acc)ed L+/RN& /+NG y &EN

complai#a#t ROR . +RR-,1 J;+N4O G;5+N a#d L;&4O

5+RG+LLO 4 filed a @oi#t complai#taffida$it "it! t!e Office of t!e Omb)dma#

c!ar*i#* repo#de#t J)d*e PRB&O +.-. L+G;4O, JR., of alle*edly $iolati#* +rticle

'F( of t!e Re$ied Pe#al &ode, ectio# 32e of Rep)blic +ct No. 3F19,' a#d ectio# (,)bectio# 2b a#d 2c of Rep)blic +ct No. 6713

t!e Office of t!e Omb)dma# e#doredD t!e cae to t!e Office of t!e &o)rt

+dmi#itrator

4t "a poi#ted o)t i# aid $al)atio# Report It!at repo#de#t i primarily acc)ed of

#o"i#*ly Re#deri#* ;#@)t J)d*me#t.I

!e admi#itrati$e complai#t temmed from t!e ac:)ittal by repo#de#t @)d*e of

La"re#ce /a#*, a Eo#* o#* #atio#al "!o "a appre!e#ded by eleme#t of t!e

P)blic +ita#ce a#d Reactio# +*ai#t &rime or P+R+&, 4LG, i# 5alate, 5a#ila 2for

poeio# of !ab) a#d firearm a#d poeio# of firearm o# &O5L& ba#

Prior to !i arrai*#me#t, /a#* filed a motio# for prelimi#ary i#$eti*atio# "!ic! "a*ra#ted by t!e trial co)rt i# a# Order

)ri#* t!e prelimi#ary i#$eti*atio# before t!e proec)tor, /a#* de#ied t!at ille*al

dr)* or )#lice#ed firearm "ere fo)#d i# !i poeio#. !e cae "ere later

rema#ded to t!e trial co)rt after +ita#t &ity Proec)tor 5ic!aela 5. &)a )bmitted aReol)tio#



fi#di#* probable ca)e a*ai#t /a#*. Beari#* t!at !i ob@ectio# to !i "arra#tle

arret a#d earc! "o)ld be "ai$ed by !i e#teri#* a plea, /a#* t!ro)*! co)#el filed a

5a#ifetatio# ma0i#* of record !i co#ti#)i#* ob@ectio# to !i "arra#tle arret a#d

prayi#* t!at t!e trial co)rt e#ter a plea of I#ot *)iltyI o# !i be!alf.

)ri#* t!e !eari#* t!e proec)tio# formally reted it cae. 4# t)r#, t!e defe#e filed amotio# for lea$e of co)rt to file a em)rrer to $ide#ce. !e trial co)rt *ra#ted t!e

defe#eK motio# i# a# Order of t!e ame date a#d *a$e /a#* a period of t"e#tyfi$e

2'D day from receipt t!ereof "it!i# "!ic! to file a em)rrer to $ide#ce, a#d t!e

proec)tio# a imilar period to file it oppoitio# t!ereto. +# )#dated em)rrer to$ide#ce "a t!e# filed by /a#*

-)be:)e#tly, +ita#t &ity Proec)tor /i##ie 5. dad filed a I5a#ifetatio# "it!

5otio#I tati#* t!at t!e proec)tio# i reti#* it cae a*ai#t t!e acc)ed, /a#*,

i#ofar a &rimi#al &ae No. 961(999F o#ly "a co#cer#ed b)t e=cl)di#* t!e t"o 2'

remai#i#* cae for ille*al poeio# of firearm a#d $iolatio# of t!e &O5L& *)#

ba#, "!erei# t!e proec)tio# claimed it !a #ot yet reted

t!e trial co)rt et f)rt!er !eari#* o# t!e t"o 2' remai#i#* cae

repo#de#t @)d*e i)ed a Reol)tio# *ra#ti#* /a#*K em)rrer to $ide#ce a#d

ac:)itti#* /a#* i# t!e aid t!ree 23 cloely related cae.

!e t!re!old i)e raied by acc)ed i# !i em)rrer to $ide#ce i "!et!er !i

"arra#tle arret a#d earc! "ere la"f)l a ar*)ed by t!e proec)tio#, or )#la"f)l a

aerted by t!e defe#e.

;#der -ectio# D, R)le 113 of t!e Ne" R)le of &o)rt, a peace officer may arret a

pero# "it!o)t a "arra#t% 2a "!e#, i# !i pree#ce, t!e pero# to be arreted !acommitted, i act)ally committi#*, or i attempti#* to commit a# offe#eC 2b "!e# a#

offe#e !a i# fact @)t bee# committed, a#d !e !a pero#al 0#o"led*e of fact

i#dicati#* t!at t!e pero# to be arreted !a committed it, a#d 2c "!e# t!e pero# to

be arreted i a prio#er "!o !a ecaped from a pe#al etabli!me#t or place "!ere

!e i er$i#* fi#al @)d*me#t or temporarily co#fi#ed "!ile bei#* tra#ferred from o#eco#fi#eme#t to a#ot!er.

No#e of t!ee circ)mta#ce "ere pree#t "!e# t!e acc)ed "a arreted. !e

acc)ed "a merely "al0i#* from t!e 5aria Oroa apartme#t a#d "a abo)t to e#ter

t!e par0ed 5/ car "!e# t!e police officer arreted a#d fri0ed !im a#d earc!ed !i

car. !e acc)ed "a #ot committi#* a#y $iible offe#e at t!e time of !i arret.Neit!er "a t!ere a# i#dicatio# t!at !e "a abo)t to commit a crime or t!at !e !ad @)t

committed a# offe#e. !e )#lice#ed +5 &al. 38F 9mm +)tomatic ac0)p Pitol

icH t!at t!e acc)ed !ad i# !i poeio# "a co#cealed i#ide t!e ri*!t fro#t poc0et

of !i pa#t. +#d t!e !a#d*)# "a ba#tam a#d lim i# ize t!at it "o)ld #ot *i$e a#

o)t"ard i#dicatio# of a co#cealed *)# if placed i#ide t!e pa#tK ide poc0et a "ado#e by t!e acc)ed.



!e arreti#* officer !ad #o i#formatio# a#d 0#o"led*e t!at t!e acc)ed "a carryi#*

a# )#lice#ed !a#d*)#, #or did t!ey ee !im i# poeio# t!ereof immediately prior to

!i arret.

itto o# t!e 3' ba* of !ab) a#d t!e ot!er )#lice#ed ae"oo &al. 9mm Pitol "it!

ma*azi#e t!at "ere fo)#d a#d eized from t!e car. !e co#traba#d item i# t!e car"ere #ot i# plai# $ie". !e 3' ba* of !ab) "ere i# t!e tr)#0 compartme#t, a#d t!e

ae"oo !a#d*)# "a )#der#eat! t!e dri$erK eat of t!e car. !e police officer !ad #o

i#formatio#, or 0#o"led*e t!at t!e ba##ed article "ere i#ide t!e car, or t!at t!e

acc)ed !ad placed t!em t!ere. !e police officer earc!ed t!e car o# mere )picio#t!at t!ere "a !ab) t!erei#.

Repo#de#t @)d*e t!e# i)ed o# t!e ame day etti#* t!e prom)l*atio# of !i

afore:)oted Reol)tio#

O# t!e day before t!e c!ed)led prom)l*atio#, -PO3 &ritobal claimed t!at !e

recei$ed a telep!o#e call from a pero# claimi#* to be t!e bra#c! cler0 of co)rt of R&5a#ila, ra#c! 18. !e caller, accordi#* to &ritobal, i#tr)cted !im to bri#* to co)rt t!e

#e=t day t!e mo#ey co#ficated from /a#*. &ritobal complied.

+fter t!e Reol)tio# "a prom)l*ated by t!e trial co)rt, &ritobal "a pree#ted "it! a

pecial po"erofattor#ey e=ec)ted by /a#* a)t!orizi#* !i co)#el, +tty. Oli$erLoza#o, to recei$e t!e co#ficated mo#ey. &ritobal !a#ded o$er t!e mo#ey to +tty.

Oli$er Loza#o, b)t !e firt re:)ired +tty. Loza#o to accompli! a receipt "ritte# o# t!e

pecial po"erofattor#ey itelf.

Not atified "it! /a#*K ac:)ittal, petitio#er arber et. al ., filed t!e aid Joi#t

&omplai#t+ffida$it a*ai#t repo#de#t @)d*e before t!e Office of t!e Omb)dma#.

!ey alo filed a# admi#itrati$e complai#t a*ai#t t!e trial proec)tor, +ita#t &ityProec)tor dad, for alle*ed *ro #e*lect of d)ty i# !i !a#dli#* of t!e /a#* cae.

Eo"e$er,

t!e epartme#t of J)tice i)ed it Reol)tio# dimii#* t!e admi#itrati$e complai#t

a*ai#t dad for lac0 of merit.

+fter t!e aid Joi#t &omplai#t+ffida$it of t!e complai#a#t a*ai#t repo#de#t @)d*e

"a e#dored by t!e Omb)dma# to t!e Office of t!e &o)rt +dmi#itrator, t!i &o)rt

re:)ired t!e repo#de#t to comme#t t!ereo#. +fter it receipt of t!e repo#de#tK

comme#t tro#*ly de#yi#* a#d dip)ti#* t!e admi#itrati$e c!ar*e a*ai#t !im a#d

)po# t!e recomme#datio# of O&+, t!i &o)rt referred t!e matter to t!e t!e# &o)rt of +ppeal +ociate J)tice 2#o" -)preme &o)rt +ociate J)tice &o#)elo A#are

-a#tia*o for i#$eti*atio# a#d report.

!e )bmitted !er Report recomme#di#* t!at repo#de#t @)d*e be reprima#ded a#d

meted a fi#e e:)i$ale#t to i= 26 mo#t! alary. Eer fi#di#* "ere adopted by t!e Office

of t!e &o)rt +dmi#itrator,



-ectio# 1D, R)le 119 of t!e Re$ied R)le of &rimi#al Proced)re pro$ide t!at%

I-ec. 1D. "emurrer to evidence. S +fter t!e proec)tio# !a reted it cae, t!e co)rt

may dimi t!e cae o# t!e *ro)#d of i#)fficie#cy of e$ide#ce% 21 o# it o"# i#itiate

2ic after *i$i#* t!e proec)tio# a# opport)#ity to be !eardC or 2' o# motio# of t!e

acc)ed "it! prior lea$e of co)rt.

4f t!e co)rt de#ie t!e motio# for dimial, t!e acc)ed may add)ce e$ide#ce i# !idefe#e. /!e# t!e acc)ed file )c! motio# "it!o)t t!e e=pre lea$e of co)rt, !e

"ai$e t!e ri*!t to pree#t e$ide#ce a#d )bmit t!e cae for @)d*me#t o# t!e bai of

t!e e$ide#ce for t!e proec)tio

!e r)le i #ot applicable if t!e proec)tio# !a #ot yet reted it cae

4# t!i cae, depite t!e tateme#t i# t!e reol)tio# i# :)etio# a "ell a repo#de#tKclaim to t!e co#trary, t!ere i ample e$ide#ce o# record t!at t!e proec)tio# !ad #ot

yet reted it cae i# &rimi#al &ae No. 961(9991 a#d 961(999' ===. Partic)larlyre$eali#* o# t!i poi#t i t!e I5a#ifetatio# /it! 5otio# to -et +bo$e#titled &ae for

B)rt!er Eeari#* a#d Bor 4)a#ce of -)bpoe#a to Proec)tio# /it#ee

Eo"e$er, t!ere i a# importa#t apect to t!i cae "!ic! "a !eretofore #ot co#idered.

!e repo#de#t @)d*eK Reol)tio# i# :)etio# dated 5arc! 13, 1997 i o#e of ac:)ittal.

4t i "ellettled t!at ac:)ittal i# a crimi#al cae i immediately fi#al a#d e=ec)tory )po#

it prom)l*atio#C accordi#*ly, t!e -tate may #ot ee0 it re$ie" "it!o)t placi#* t!e

acc)ed i# do)ble @eopardy.1F /!e# t!e 4#$eti*ati#* J)tice )bmitted !er Report

t!e :)etio#ed Reol)tio# of repo#de#t @)d*e ac:)itti#* /a#* "a already t!e )b@ect

of a pe#di#* petitio# for re$ie" o# certiorari "!ic! "a filed "it! t!i &o)rt. 4t appearedt!at after t!e -tate recei$ed a copy of t!e aid Reol)tio# of repo#de#t @)d*e

t!e Office of t!e -olicitor Ge#eral filed a I5a#ifetatio# a#d 5otio#I "it! t!i &o)rt

prayi#* for a# e=te#io# of t!irty 23F day 2or )#til 5ay (, 1997, a -)#day "it!i# "!ic!to file a petitio# for re$ie" o# certiorari . !e motio# "a *ra#ted by t!e Birt i$iio# of

t!i &o)rt

!e aid petitio# for re$ie" o# certiorari 2G.R. No. 1'8D87 "!ic! "a filed by t!e

-olicitor Ge#eral to*et!er "it! t!e epartme#t of J)tice, i till pe#di#* i# t!i &o)rt.

Bollo"i#* etabli!ed doctri#e, t!e pe#de#cy of t!e appeal i )fficie#t ca)e for t!edimial of t!e i#ta#t admi#itrati$e complai#t.

' 4t !a alo bee# !eld t!at t!e fili#* of a# admi#itrati$e complai#t i #ot t!e proper

remedy for t!e correctio# of actio# of a @)d*e percei$ed to !a$e *o#e beyo#d t!e

#orm of propriety, "!ere a )fficie#t @)dicial remedy e=it.13 iffere#tly e=po)#ded i#

a#ot!er cae,

4)e% /N may i)e dito Ee!e!e, /N co)rt ca# a0 clarificatory :)etio#



+ e$eryo#e 0#o", t!e la" pro$ide ample @)dicial remedie a*ai#t error or

irre*)laritie bei#* committed by a rial &o)rt i# t!e e=ercie of it @)ridictio#. !e

ordinary remedies a*ai#t error or irre*)laritie "!ic! may be re*arded a #ormal i#

#at)re, error i# appreciatio# or admiio# of e$ide#ce, or i# co#tr)ctio# or applicatio#of proced)ral or )bta#ti$e la" or le*al pri#ciple i#cl)de a motio# for reco#ideratio#

2or after re#ditio# of a @)d*me#t or fi#al order, a motio# for #e" trial, a#d appeal. !ee&traordinary remedies a*ai#t error or irre*)laritie "!ic! may be deemed

e=traordi#ary i# c!aracter 2i.e., "!imical, capricio), depotic e=ercie of po"er or

#e*lect of d)ty, etc. are inter alia t!e pecial ci$il actio# of certiorari , pro!ibitio# ormandamus, or a motio# for i#!ibitio#, a petitio# for c!a#*e of $e#)e, a t!e cae may

be.

No", t!e etabli!ed doctri#e a#d policy i t!at dicipli#ary proceedi#* a#d crimi#al

actio# a*ai#t J)d*e are #ot compleme#tary or )ppletory of, #or a )btit)te for,

t!ee @)dicial remedie, "!et!er ordi#ary or e=traordi#ary. Reort to a#d e=!a)tio# oft!ee @)dicial remedie, a "ell a t!e e#try of @)d*me#t i# t!e correpo#di#* actio# or

proceedi#*, are prere:)iite for t!e ta0i#* of ot!er mea)re a*ai#t t!e pero# oft!e @)d*e co#cer#ed, "!et!er of ci$il, admi#itrati$e, or crimi#al #at)re. 4t i o#ly after

t!e a$ailable @)dicial remedie !a$e bee# e=!a)ted a#d t!e appellate trib)#al !a$e

po0e# "it! fi#ality, t!at t!e door to a# i#:)iry i#to !i crimi#al, ci$il or admi#itrati$eliability may be aid to !a$e ope#ed, or cloed.

!e admi#itrati$e cae at bar i#$ol$e a# ac:)ittal o# a# acc)ed by t!e repo#de#t

@)d*e i# t!ree 23 cloely related crimi#al cae "!ic! "ere earlier co#olidated i# t!e

co)rt preided by repo#de#t @)d*e. + a r)le, ac:)ittal i immediately fi#al a#d

e=ec)tory. &o#e:)e#tly, i# $ie" of t!e pe#de#cy i# t!i &o)rt 2Birt i$iio# of t!e

petitio# for re$ie" o# certiorari 2G.R. No. 1'8D87, supra, "e may #ot, ordi#arily, re$ie"!ere t!e aid @)d*me#t of ac:)ittal i# t!oe t!ree 23 crimi#al cae, t!e i#:)iry i# t!i

admi#itrati$e cae bei#* limited to t!e i)e of "!et!er t!e repo#de#t @)d*e i liable

for t!e c!ar*e bro)*!t a*ai#t !im.1D Eo"e$er, to reol$e t!oe c!ar*e i# t!e

admi#itrati$e cae, it i i#dipe#able t!at "e co#ider t!e repo#de#t J)d*eK )b@ectReol)tio#

*ra#ti#* acc)ed /a#*K em)rrer to $ide#ce a#d ac:)itti#* t!e latter i# t!e cloely

related &rimi#al &ae No. 961(999F, 961(9991 a#d 961(999'.-=wphi-.n>

4# appeali#* /a#*K ac:)ittal, t!e -tate i relyi#* o# a reco*#ized e=ceptio# to t!e

*e#eral r)le i# t!at "!ere t!e aailed @)d*me#t i $oid, #o do)ble @eopardy re)lt fromt!e refili#* of t!e crimi#al cae.16 4# $ie" of t!e pe#de#cy of t!e aid appeal, "e

!o)ld, ordi#arily, be co#trai#ed from reol$i#* t!e c!ar*e of $iolatio# of +rt. 'F( of t!e

Re$ied Pe#al &ode for alle*edly 0#o"i#*ly re#deri#* a# )#@)t @)d*me#t. Eo"e$er, i#

t!i admi#itrati$e cae, @)tice dema#d t!at "e reol$e t!e baic i)e relati$e to t!e

le*ality or ille*ality of /a#*K "arra#tle arret a#d earc!, a#d t!e i)e o# t!eadmiibility of t!e ba* of I!ab),I cale a#d )#lice#ed firearm "!ic! "ere

co#ficated d)ri#* t!e "arra#tle earc!. !ee are t!e $ery ame i)e bei#*



liti*ated i# t!e aid appeal.17 5ea#"!ile, t!ere i a yet #o defi#iti$e pro#o)#ceme#t by

t!i &o)rt

"!et!er repo#de#tK Reol)tio# of ac:)ittal of /a#* i pate#tly erro#eo). !e

@)ripr)de#tial r)le i t!at pe#de#cy of a# appeal from a :)etio#ed @)d*me#t re#der

t!e filing of admi#itrati$e c!ar*e premat)reNe$ert!ele, t!e fore*oi#* co#ideratio# do #ot pre$e#t ) from r)li#* )po# t!e

remai#i#* c!ar*e bro)*!t a*ai#t repo#de#t @)d*e. !e firt i#$ol$e a# alle*ed

$iolatio# of ectio# 32e of t!e +#tiGraft a#d &orr)pt Practice +ct

Corrupt practices of public officers.?%n addition to acts or omissions of public officers

already penali2ed by e&isting law, the following shall constitute corrupt practices of any

public officer and are hereby declared to be unlawful %

e &a)i#* a#y )#d)e i#@)ry to a#y party, i#cl)di#* t!e Go$er#me#t, or *i$i#* a#y

pri$ate party a#y )#"arra#ted be#efit, ad$a#ta*e or prefere#ce i# t!e dic!ar*e of !i

official, admi#itrati$e or @)dicial f)#ctio# t!ro)*! ma#ifet partiality, e$ide#t bad fait!or *ro i#e=c)able #e*li*e#ce. !i pro$iio# !all apply to officer a#d employee of

office or *o$er#me#t corporatio# c!ar*ed "it! t!e *ra#t of lice#e or permit or

ot!er co#ceio#.

Repo#de#t @)d*eK alle*ed tra#*reio# co#it pri#cipally of% 2a reol$i#* t!eem)rrer to $ide#ce "!e# t!e proec)tio# !ad #ot yet alle*edly reted i# all t!ree 23

crimi#al caeC 2b dimii#* all t!ree 23 crimi#al cae "!e# t!e em)rrer to

$ide#ce alle*edly referred o#ly to &rimi#al &ae No. 961(999F relati$e to t!e dr)*

c!ar*eC a#d 2c propo)#di#* :)etio# d)ri#* t!e clarificatory !eari#* "!ic! re$ealed

!i alle*ed partiality i# fa$or of t!e acc)ed. +fter re$ie"i#* t!e record, "e fi#d ca#t

e$ide#ce to )pport t!e c!ar*e a "ell a t!e ad$ere co#cl)io# of t!e Eo#orable4#$eti*ator.

+ cloe cr)ti#y of t!e record doe #ot )pport t!e co#cl)io# of t!e 4#$eti*ator t!at

repo#de#t @)d*e premat)rely reol$ed t!e em)rrer to $ide#ce "it!o)t *i$i#* t!e

proec)tio# ample opport)#ity to pro$e it t!ree 23 cae "!ic! "ere earlierco#olidated. !e *o$er#i#* r)le t!e#, -ectio# 1D, R)le 119 of t!e 198D R)le of

&rimi#al Proced)re

)ri#* t!e !eari#* !eld o# ecember 6, 1996, +ita#t &ity Proec)tor /i##ie 5.

dad tated t!at !e "a reti#* t!e PeopleK cae.'F 4t "a at t!i time t!at t!e defe#e

a0ed for, a#d "a *i$e#, lea$e of co)rt to file a em)rrer to $ide#ce. Per!apbelatedly realizi#* t!at it !ad reted premat)rely, t!e proec)tio# filed a I5a#ifetatio#

"it! 5otio# to -et +bo$e#titled &ae for B)rt!er Eeari#* a#d Bor t!e 4)a#ce of

-)bpoe#a to Proec)tio# /it#eeI'1 o# ecember 19, 1996. Repo#de#t @)d*e, i#

a# Order dated Ja#)ary 1(, 1997'' *ra#ted t!at motio# a#d et t!e t"o 2' remai#i#*

cae 2&rimi#al &ae No. 961(9991 a#d 961(999' for f)rt!er !eari#*. !i factbelie t!e petitio#erK claim t!at t!ey "ere de#ied t!eir day i# co)rt. "@n6cantly,



durn@ t4e 4earn@ 4eld on Feruary 11, 1;;9, t4e rosecuton rested n all t4et4ree 3 cases for the second time,'3 ncludn@ 'r7nal 'ase Nos. ;>18;;;1 and;>18;;;2. !e proec)tio# "a e$e# able to file a# oppoitio# to t!e em)rrer to

$ide#ce. #4e record s4o=s t4at t4e roceedn@s =ere astened =4en t4e de6ense6led a Man6estaton on Feruary 10, 1;;9 t4at t =as ad7ttn@ t4e estence o6

t4e 6rear7s and t4e lac o6 lcense t4ere6or. Hence, t4ere =as not even a need toa7end t4e De7urrer to vdence nas7uc4 as t4e De7urrer to vdence, as=orded, clearly rayed 6or t4e ds7ssal o6 all t4e t4ree 3 cases, na7ely,'r7nal 'ase Nos. ;>18;;;0, ;>18;;;1 and ;>18;;;2.

Neit!er do "e dicer# a#y impropriety "!e# repo#de#t @)d*e reol$ed to dimi all

t!e t!ree 23 crimi#al cae filed a*ai#t /a#*. Petitio#er claim t!at t!e em)rrer to

$ide#ce co)ld apply o#ly to &rimi#al &ae No. 961(999F i#am)c! a 21 t!e -tate

!a reted alle*edly o#ly i# t!at cae, a#d 2' t!e doc0et #)mber tated o# t!e firt

pa*e of t!e em)rrer to $ide#ce referred o#ly to &rimi#al &ae No. 961(999F. !atclaim i erro#eo). $e# if t!e captio# of t!e em)rrer to $ide#ce tated o#ly &rimi#al

&ae No. 961(999F, a plai# readi#* of t!e entire em)rrer to $ide#ce lea$e #odo)bt t!at it alo co$ered &rimi#al &ae No. 961(9991 a#d 961(999'. !e pri#cipal

ar*)me#t of t!e defe#e i# t!oe t!ree 23 crimi#al cae i t!at /a#* "a arreted

ille*ally, "it!o)t a "arra#t, )#der circ)mta#ce #ot falli#* "it!i# reco*#izede=ceptio#.'( +ccordi#*ly, t!e accompa#yi#* earc! a#d eiz)re "!ic! yielded t!e

pro!ibited article i alo ille*al a#d i#$alid. P)r)a#t to co#tit)tio#al dictate,'D aid

article are i#admiible i# e$ide#ce for bei#* Ifr)it of a poio#o) tree.I !at defe#e

i )#e:)i$ocally et fort! i# t!e em)rrer to $ide#ce.

+#e#t t!e c!ar*e t!at repo#de#t @)d*e diplayed bia a#d partiality d)ri#* t!e trial

"!e# !e a0ed #)mero) clarificatory :)etio#, "e #ote t!at t!e participatio# ofrepo#de#t @)d*e i# t!e co#d)ct of t!e trial "a #ot by itelf co#dem#able.

iffere#tly tated, I:)etio# to clarify poi#t a#d to elicit additio#al rele$a#t e$ide#ce

are #ot improper. !e @)d*e bei#* t!e arbiter may properly i#ter$e#e i# t!e pree#tatio#

of e$ide#ce to e=pedite a#d pre$e#t )##eceary "ate of time

!e tra#cript of t!e clarificatory !eari#* reprod)ced belo" to !o" t!at t!e te#or of

repo#de#t @)d*eK clarificatory :)etio#, t!o)*! #)mero) did #ot really create t!e

impreio# t!at repo#de#t @)d*e "a biaed or t!at !e !a practically ta0e# t!e

c)d*el for t!e defe#e. 2ra#cript pro$ided i# f)ll te=t

!e abo$e:)oted :)etio# propo)#ded by repo#de#t @)d*e "ere #eceary for t!ep)rpoe of determi#i#* a#d clarifyi#* t!e bai for reol$i#* t!e all importa#t i)e of

t!e le*ality or ille*ality of t!e "arra#tle arret of /a#* a#d t!e "arra#tle earc! of

t!e latterK car. Eerei# repo#de#t @)d*eK afore:)oted :)etio# co#trat fa$orably

a*ai#t i#ta#ce i# ot!er cae "!erei# it "a clearly !o"# t!at t!e @)d*e t!erei#diplayed bia a*ai#t a party liti*a#t.



!), t!ere i a cae "!ere t!e :)etio# a0ed of a "it#e by t!e @)d*e t!erei# "ere

ad$erarial, malicio) a#d !otile i# c!aracter.31 !ere i a#ot!er cae "!ere t!e !eer

$ol)me of :)etio# a0ed by t!e @)d*e t!erei# te#ded to be leadi#*, mileadi#*, if #ot

baele a#d !ypot!etical.3' 4t !a alo bee# !eld t!at clarificatory :)etio# a0ed byt!e trial co)rt m)t #ot amo)#t to co#fro#tatio#, probi#* a#d i#i#)atio#, "!ic! are

c!aracteritic of a croe=ami#atio#

/!ere a )fficie#t @)dicial remedy e=it, t!e fili#* of a# admi#itrati$e complai#t i #ot

t!e proper remedy to correct t!e actio# of a @)d*e.

Chapter @ The Arbitral Award

BG.R. No. 15>25;. "ete7er 1<, 2003CGR!G(N, IN'!R$!RA#D, petitioner, vs. NA#I!NA) $!R '!R$!RA#I!N,respondent .

Natio#al Po"er &orporatio# 2N+PO&OR a"arded t!e pro@ect of re!abilitati#* t!e&aliraya Glory Eole -er$ice -pill"ay 2&GE-- at &aliraya Reer$oir, L)mba#, La*)#a

to GROG;N 4N&. 2GROG;N

+mo#* e$eral co#tractor, GROG;N offered t!e mot "or0able a#d $iable dei*# at

t!e lo"et price.

!e primary p)rpoe of t!e &aliraya Reer$oir "a to 0eep t!e la0e< "ater le$el "it!i#

t!e pecified limit #ot o#ly for t!e protectio# of t!e dam b)t alo to pre$e#t t!e floodi#*

of t!e to"# )rro)#di#* t!e dam.

N)mero) lea0, !o"e$er occ)rred i# t!e $ertical !aft of &GE--.

N+PO&OR e#*a*ed +L+ 4#d)trie &orporatio# to repair t!e &GE--. !e dei*# a#dmet!od, !o"e$er adopted by +L+ 4#d)trie &orporatio# "ere #ot "or0able. Lea0

rec)rred i# t!e $ertical !aft of t!e &GE-- immediately after t!e pro@ect "a accepted

by N+PO&OR.

N+PO&OR failed to pay for t!e cot of t!e re!abilitatio# depite t!e completio# of t!e

pro@ect.

GROG;N filed a re:)et for ad@)dicatio# before t!e &o#tr)ctio# 4#d)try +rbitratio#

&ommiio# 2&4+&,

Eo"e$er, fi#di#* #o tip)latio# i# t!e co#tract of t!e partie pro$idi#* for arbitratio# a a

mode of ettli#* dip)te, &4+& dimied t!e cae

GROG;N filed a# actio# for collectio# of )m of mo#ey a#d dama*e before t!e

Re*io#al rial &o)rt of )ezo# &ity,

N+PO&OR filed it +#"er "it! &o)#terclaim6H aerti#* t!at t!e poor :)ality of

GROG;N<- "or0ma#!ip led to #)mero) defect i# t!e pro@ect.



+fter t!e pretrial co#fere#ce, t!e partie filed a Joi#t 5a#ifetatio# a#d 5otio#7H

)bmitti#* t!eir dip)te to arbitratio# )#der Rep)blic +ct No. 8768H ta0i#* i#to

co#ideratio# t!e !i*!ly tec!#ical #at)re of t!eir co#tract.

t!e +rbitratio# rib)#al re#dered a deciio#% efe#da#t i directed to pay t!e Plai#tiff

GROG;N )bmitted a copy of t!e abo$e deciio# to t!e trial co)rt.

GROG;N filed before t!e trial co)rt a 5a#ifetatio# a#d 5otio# to 5odify t!e +rbitral

eciio#, alle*i#* t!at t!e +rbitratio# rib)#al did #ot i#cl)de i# it eciio# a pro$iio#

o# "!o !o)ld bear t!e cot of arbitratio# p)r)a#t to t!e partie< +*reeme#t o#

+rbitratio# =pe#e

4# it &omme#t, N+PO&OR ar*)ed t!at t!e fore*oi#* 5otio# i premat)re beca)e t!e

+rbitratio# rib)#al !ad #ot )bmitted it recomme#datio# to t!e trial co)rt a#d t!e

ame !ad #ot bee# appro$ed or adopted by t!e trial co)rt

4# t!e mea#time, GROG;N filed a#ot!er 5a#ifetatio# 1'H a0i#* t!e trial co)rt to *ra#tit 5a#ifetatio# a#d 5otio# to 5odify t!e +rbitral +"ard i#ce N+PO&OR did #ot file a

motio# to $acate, modify or correct t!e ame "it!i# o#e mo#t! from t!e time it "a

re#dered, p)r)a#t to -ectio# '3 of t!e +rbitratio# La"

O# -eptember 1D, 1998, t!e trial co)rt i)ed a# Order tati#*% t!e +rbitrator< Bee of

P('F,836.'8 !all be !ared by defe#da#t N+PO&OR a#d plai#tiff GROG;N i#proportio# to t!eir repecti$e claim, i.e., 69.9( a#d 3F.F6, repecti$elyC

N+PO&OR< 5otio# for Reco#ideratio# of t!e aid Order "a de#ied.

!), N+PO&OR appealed to t!e &o)rt of +ppeal

E RG4ON+L R4+L &O;R RR 4N +BB4R54NG E &4-4ON OB E

+R4R+L R4;N+L -P4 E B+& E+ + &OPA OB E +R4R+L

&4-4ON + 5+A 1(, 1998 -;54 A GROG;N /+- NO R4B4.

4#tead of fili#* a# +ppellee< rief, GROG;N filed a 5otio# to imi

&o)rt of +ppeal re#dered a deciio#, 18H re$eri#* t!e Order of t!e Re*io#al rial &o)rta#d rema#ded t!e cae to t!e trial co)rt for f)rt!er proceedi#*.

GROG;N filed a 5otio# for Reco#ideratio#'FH of t!e aid deciio# "!ic! "a de#ied by

t!e &o)rt of +ppeal

Ee#ce, t!i petitio# for re$ie" o# t!e follo"i#* ai*#me#t of error%

E &O;R OB +PP+L- P+NLA RR 4N NO 4-54--4NG E +PP+L,

-P4%



1. E B& OB NO E+4NG B4L + R&OR ON +PP+L /E4&E 4-

R;4R 4N -P&4+L PRO&4NG- -;&E +- +R4R+4ON ;NR

RP;L4& +& NO. 876C

4 E+4NG B+4L O RP;4+ E +R4R+L +/+R /4E4N E

RGL5N+RA PR4O OB 3F +A- ;NR RP;L4& +& NO. 876CE +R4R+L &4-4ON A 4R; OB + JO4N -;54--4ON A E P+R4-

/+- BB&4LA ON OB + >J;G5N A &ON-N?, +- -;&E 4 -EO;L

E+ N B4R- RP;4+ BOR E +R4R+L R4;N+L. B+4L4NG O

RP;4+ E -+5 BOR E +R4R+L R4;N+L, 4- &ONB4R5+4ONA E RG4ON+L R4+L &O;R &+5 54N4-R4+L. E;- E RG4ON+L

R4+L &O;R<- &ONB4R5+4ON EROB 4- NO +PP+L+LC

4)e% /N actio# "a co#$erted to pecial proceedi#*. OR /N arbitral a"ard #eed

to be $erified

!e petitio# lac0 merit.

-)preme &o)rt &irc)lar No. '9F, "!ic! i baed i# a Reol)tio# of t!e &o)rt # a#c

i# ;97(8

pro$ide

4f a# appeal )#der R)le (1 i ta0e# from t!e re*io#al trial co)rt to t!e &o)rt of +ppeala#d t!erei# t!e appella#t raie o#ly 1uestions of law , t!e appeal !all be dimied,

i)e p)rely of la" #ot bei#* re$ie"able by aid &o)rt

!i "a reprod)ced i# R)le DF, -ectio# ' of t!e 1997 R)le of &i$il Proced)re.

+# appeal )#der R)le (1 ta0e# from t!e Re*io#al rial &o)rt to t!e &o)rt of +ppeal

raii#* o#ly :)etio# of la" !all be dimied, i)e p)rely of la" #ot bei#*

re$ie"able by aid co)rt.

t!ere i a :)etio# of la" "!e# t!e i)e doe #ot call for a# e=ami#atio# of t!e

probati$e $al)e of e$ide#ce pree#ted, t!e tr)t! or fale!ood of fact bei#* admitteda#d t!e do)bt co#cer# t!e correct applicatio# of la" a#d @)ripr)de#ce o# t!e matter

!e i)e raied by N+PO&OR i# it appeal to t!e &o)rt of +ppeal are #ot p)rely

:)etio# of la".

!e#, too, t!e mere fili#* of t!e #otice of appeal i )fficie#t

R)le (1, -ectio# ' of t!e 1997 R)le o# &i$il Proced)re cate*orically tate%

2a Ordi#ary appeal. !e appeal to t!e &o)rt of +ppeal i# cae decided by t!e

Re*io#al rial &o)rt i# t!e e=ercie of it ori*i#al @)ridictio# !all be ta0e# by fili#* a

#otice of appeal "it! t!e co)rt "!ic! re#dered t!e @)d*me#t or fi#al order appealedfrom a#d er$i#* a copy t!ereof )po# t!e ad$ere party. No record o# appeal !all be



re:)ired e=cept i# pecial proceedi#* a#d ot!er cae of m)ltiple or eparate appeal

"!ere t!e la" or t!ee R)le o re:)ire. 4# )c! cae, t!e record o# appeal !all be

filed a#d er$ed i# li0e ma##er.

!i petitio# ori*i#ated from a# action for collection of a sum of money filed "it! t!e

Re*io#al rial &o)rt,

'DH

"!ic! i a# ordi#ary ci$il actio#.

'6H

!e deciio# of t!e partie to)bmit t!eir dip)te to arbitratio# d)ri#* t!e proceedi#* did #ot c!a#*e t!e #at)re of

t!e ori*i#al actio# to o#e of pecial proceedi#*, )#der "!ic! a# appeal !all be by

record o# appeal. -ectio# '' of t!e +rbitratio# La",'7H "!ic! pro$ide t!at arbitratio# i

i# t!e #at)re of a pecial proceedi#*, i #ot applicable.

GROG;N ar*)e t!at t!e &o)rt of +ppeal !o)ld !a$e dimied t!e appeal

beca)e N+PO&OR filed it +ppella#t< rief more t!a# o#e year from t!e fili#* of t!e

Notice of +ppeal.

!e ar*)me#t i te#)o). R)le ((, -ectio# 7 of t!e 1997 R)le of &i$il Proced)repro$ide t!at t!e appella#t !all file !i brief "it!i# fortyfi$e 2(D day from receipt of

#otice from t!e &o)rt of +ppeal

4# t!e cae at bar, N+PO&OR recei$ed #otice from t!e &o)rt of +ppeal to file it rief

"it!i# (D day o# October '6, 1999. O# ecember 1F, 1999, it filed a 5otio# for=te#io# of forty fi$e day, or )#til Ja#)ary 'D, 'FFF, "it!i# "!ic! to file it rief, "!ic!

"a *ra#ted.'9H Ee#ce, N+PO&OR< +ppella#t< rief filed o# Ja#)ary '(, 'FFF "a o#

time.

/e come #o" to t!e i)e of "!et!er t!e copy of t!e arbitral a"ard )bmitted by

GROG;N to t!e trial co)rt "a $alid.

GROG;N admit t!at t!e copy of t!e arbitral a"ard it )bmitted to t!e trial co)rt "a#ot $erified. Eo"e$er, it ar*)e t!at t!e lac0 of $erificatio# i a formal defect "!ic! i #ot

fatal, a#d may be "ai$ed or dipe#ed "it!. 4t cite cae "!ic!, !o"e$er, refer to t!e

effect of lac0 of $erificatio# i# t!e pleadings.

!e "ord verified , i# co##ectio# "it! tat)tory report, !a a ettled or "ell 0#o"#

mea#i#*C a#d refer to a# affida$it attac!ed to t!e tateme#t a to t!e tr)t! of t!e

matter t!erei# et fort!, "it!i# t!e pero#al 0#o"led*e of t!e affia#t, a#d it !a bee#

!eld t!at t!e "ord mea# >"or# to? a#d ordi#arily import a $erity atteted by t!e

a#ctity of a# oat!.

4# t!e cae at bar, t!e copy of t!e arbitral a"ard did #ot meet t!e re:)ireme#t of-ectio# 'F of t!e +rbitratio# La", a#d co#e:)e#tly, t!erefore ca# #ot be t!e bai of

t!e aailed Order of t!e trial co)rt.

GROG;N ar*)e t!at N+PO&OR did #ot raie a i)e t!e lac0 of $erificatio# of t!ecopy of t!e arbitral a"ard i# t!e trial co)rt. Neit!er did N+PO&OR rep)diate t!e arbitral

a"ard before t!e +rbitratio# rib)#al a#d t!e trial co)rt.



!e ar*)me#t i #ot "ellta0e#. Ordi#arily, poi#t of la", t!eorie, i)e a#d

ar*)me#t #ot bro)*!t to t!e atte#tio# of t!e lo"er co)rt ca##ot be raied for t!e firt

time o# appeal.

4# t!e cae at bar, !o"e$er, N+PO&OR co)ld #ot !a$e raied t!e lac0 of $erificatio# of

t!e copy of t!e arbitral a"ard )bmitted by GROG;N i#ce it "a aaili#* t!ea)t!e#ticity a#d d)e e=ec)tio# of t!e copy itelf. 4t "a o#ly after t!e trial co)rt )p!eld

t!e aid copy a a $alid arbitral a"ard t!at N+PO&OR "a able to raie t!e i)e,

"!ic! "a d)ri#* t!e fili#* of it appella#t< brief before t!e &o)rt of +ppeal.

GROG;N alo ar*)e t!at t!e &o)rt of +ppeal !o)ld !a$e firt decided t!e5otio# to imi filed by t!e N+PO&OR before reol$i#* t!e merit of t!e appeal. 4t

alo alle*e t!at t!e &o)rt of +ppeal did #ot re:)ire it to file a# +ppellee< rief.

!e co#te#tio# i "it!o)t merit. !e *ra#t or de#ial of t!e 5otio# to imi "a "it!i#

t!e o)#d dicretio# of t!e &o)rt of +ppeal. 4t reol)tio# of t!e appeal o# it meritmea#t t!at it fo)#d t!e 5otio# to imi to be "it!o)t merit. O# t!e ot!er !a#d, R)le

((, -ectio# 8 of t!e 1997 R)le of &i$il Proced)re, 3(H pro$ide t!at t!e appellee !all file

!i brief "it!i# fortyfi$e day from receipt of t!e appella#t< brief. Ee#ce, t!ere "a #o

#eed for t!e &o)rt of +ppeal to re:)ire GROG;N to file it appellee< brief.

G.R. No. ;8;>0 Marc4 <, 1;;3

IM$RIA) #?#I) MI))", IN'., petitio#er, $.H!N. )ADIMIR $.). "AM$ANG andIM$RIA) #?#I) MI))"M!N#H)+ M$)!+" A""!'IA#I!N I#MMA,repo#de#t.

petitio#er 4mperial e=tile 5ill, 4#c. a#d repo#de#t 4mperial e=tile 5ill5o#t!ly

mployee +ociatio# e#tered i#to a collecti$e bar*ai#i#* a*reeme#t pro$idi#* acrot!eboard alary i#creae a#d ot!er be#efit retroacti$e to No$ember 1, 1986.

t!ey e=ec)ted a#ot!er a*reeme#t o# t!e @ob claificatio# a#d "a*e ta#dardizatio#

pla#. !i "a alo to ta0e effect retroacti$ely o# No$ember 1, 1986.

+ dip)te )be:)e#tly aroe i# t!e i#terpretatio# of t!e t"o a*reeme#t. !e partie

t!e# )bmitted it to arbitratio# a#d dei*#ated p)blic repo#de#t ladimir P.L. -ampa#*a t!e ol)#tary +rbitrator. !e )#derta#di#* "a t!at !i deciio# "o)ld be fi#al,

e=ec)tory a#d i#appealable.

!e &ompa#y mai#tai#ed t!at t!e "a*e of a partic)lar employee )b@ect of poiblead@)tme#t o# bae pay !o)ld be t!e pay "it! t!e firt year &+ i#creae alreadyi#te*rated t!erei#.

!e ;#io# ar*)ed t!at t!e &+ i#creae !o)ld #ot be i#cl)ded i# ad@)ti#* t!e "a*e

to t!e bae pay le$el, a it "a eparate a#d diti#ct from t!e i#creae re)lti#* from

t!e @ob claificatio# a#d ta#dardizatio# c!eme.



t!e ol)#tary +rbitrator re#dered a deciio# )p!oldi#* t!e form)la )ed by t!e

&ompa#y.

!e ;#io# filed a motio# for reco#ideratio# "!ic! "a oppoed by t!e &ompa#y.

t!e ol)#tary +rbitrator re#dered a#ot!er deciio#, t!i time i# fa$or of t!e ;#io#.

&ompa#y appealed to t!e NLR&. !e appeal "a dimied for lac0 of @)ridictio#. !e

reao# "a t!at t!e ori*i#al r)le allo"i#* appeal if t!e ol)#tary +rbitratorK a"ard "a

more t!a# P1FF,FFF.FF !ad already bee# repealed by P 13F. 5oreo$er, )#der +rticle

'6'+ of t!e Labor &ode, a ame#ded, a"ard or deciio# of $ol)#tary arbitrator

become fi#al a#d e=ec)tory after cale#dar 1F day from #otice t!ereof to t!e partie.

!e &ompa#y t!e# came to t!i &o)rt i# t!i petitio# for certiorari

4)e% /N +rbitrator ca# c!a#*e !i deciio# after re#deri#* !i 1t

!e ;#io# erred i# fili#* a motio# for reco#ideratio#

-o did t!e repo#de#t ol)#tary +rbitrator i# e#tertai#i#* t!e motio# a#d $acati#* !ifirt deciio#.

/!e# t!e partie )bmitted t!eir *rie$a#ce to arbitratio#, t!ey e=prely a*reed t!at t!e

deciio# of t!e ol)#tary +rbitrator "o)ld be fi#al, e=ec)tory a#d i#appealable. 4# fact,

e$e# "it!o)t t!i tip)latio#, t!e firt deciio# !ad already become o by $irt)e of +rticle

'63 of t!e Labor &ode ma0i#* $ol)#tary arbitratio# a"ard or deciio# fi#al a#de=ec)tory.

t!e ol)#tary +rbitrator lot @)ridictio# o$er t!e cae )bmitted to !im t!e mome#t be

re#dered !i deciio#. !erefore, !e co)ld #o lo#*er e#tertai# a motio# for

reco#ideratio# of t!e deciio# for it re$eral or modificatio#

y modifyi#* t!e ori*i#al a"ard, repo#de#t arbitrator e=ceeded !i a)t!ority a )c!, a

fact !e "a "ell a"are of, a !o"# by !i pre$io) Reol)tio# of 4#!ibitio# "!erei# !e

ref)ed to act o# t!e ;#io#K motio# for reco#ideratio# of t!e a"ard or deciio#.

4t "o)ld be "ell to remi#d t!e Partie i# t!i cae t!at t!e arbitratio# la" or

@)ripr)de#ce o# t!e matter i e=plicit i# it ta#d a*ai#t re$ocatio# a#d ame#dme#t oft!e )bmiio# a*reeme#t a#d t!e arbitratio# a"ard o#ce )c! !a bee# made.

!e ratio#ale be!i#d t!i i t!at%

+# a"ard !o)ld be re*arded a t!e @)d*me#t of a co)rt of lat reort, o t!at all

reao#able pre)mptio# !o)ld be acertai#ed i# it fa$or a#d #o#e to o$ert!ro" it.

Ot!er"ie, arbitratio# proceedi#*, i#tead of bei#* a :)ic0 a#d eay mode of obtai#i#*

@)tice, "o)ld be merely a# )##eceary tep i# t!e co)re of liti*atio#, ca)i#* delaya#d e=pe#e, b)t #ot fi#ally ettli#* a#yt!i#*. Not"it!ta#di#* t!e #at)ral rel)cta#ce of

t!e co)rt to i#terfere "it! matter determi#ed by t!e arbitrator. t!ey "ill do o i#

proper cae "!ere t!e la" ordai# t!em.



!e po"er a#d a)t!ority of t!e ol)#tary +rbitrator to act i# t!e cae comme#ce from

!i appoi#tme#t a#d accepta#ce to act a )c! )#der t!e )bmiio# a*reeme#t of t!e

Partie a#d terminates upon his rendition of his decision or award "!ic! i accorded t!e

be#efit of t!e doctri#e of res <udicata a i# @)d*me#t of o)r re*)lar co)rt of la".-i#ce t!e po"er a#d a)t!ority of t!e arbitrator to re#der a $alid a"ard, order or

reol)tio# ret )po# t!e co#ti#)i#* m)t)al co#e#t of t!e partie, a#d t!ere i #o#e!o"# !ere, t!e ol)#tary +rbitrator !a #o c!oice b)t to decli#e to r)le o# t!e

pleadi#* )bmitted by t!e partie.

4t i tr)e t!at t!e pree#t r)le ma0e t!e $ol)#tary arbitratio# a"ard fi#al a#d e=ec)toryafter te# cale#dar day from receipt of t!e copy of t!e a"ard or deciio# by t!e partie. 8

Pre)mably, t!e deciio# may till be reco#idered by t!e ol)#tary +rbitrator o# t!e

bai of a motio# for reco#ideratio# d)ly filed d)ri#* t!at period

-)c! a pro$iio#, bei#* proced)ral, may be applied retroacti$ely to pe#di#* actio# a

"e !a$e !eld i# a #)mber of cae. 5 Eo"e$er, it ca##ot be applied to a cae i# "!ic!

t!e deciio# !ad become fi#al before t!e #e" pro$iio# too0 effect, a i# t!e cae atbar.

R.+. 671D, "!ic! i#trod)ced ame#ded +rticle '6'+ of t!e Labor &ode, became

effecti$e o# 5arc! '1, 1989. !e firt deciio# of t!e ol)#tary +rbitrator "a re#dered

o# J)ly 1', 1988, "!e# t!e la" i# force "a +rticle '63 of t!e Labor &ode,

ol)#tary arbitratio# a"ard or deciio# !all be fi#al, i#appealable, a#d e=ec)tory.

!e abo$e:)oted pro$iio# did #ot e=prely fi= t!e time "!e# t!e ol)#tary

+rbitratorK deciio# or a"ard "o)ld become fi#al. /e !a$e !eld, !o"e$er, t!at it "o)ld

a)me t!e attrib)te of fi#ality )po# it i)a#ce, )b@ect o#ly to @)dicial re$ie" i#appropriate cae.

!e p)blic repo#de#t e=ceeded !i a)t!ority "!e# !e acted o# t!e ;#io#K motio# for

reco#ideratio# a#d re$ered !i ori*i#al deciio#. &orollarily !i eco#d deciio# dated

ecember 1(, 1988, !a$i#* bee# re#dered i# $iolatio# of la", m)t be co#idered #)ll

a#d $oid a#d of #o force a#d effect "!atoe$er

Adr 3-4asd Digest Consolidated (1)

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