8/10/2019 Asset Privatization Trust vs. Court of Appeals 300 SCRA 157

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JURISDICTIONOF ARBITRAL TRIBUNAL

8/10/2019 Asset Privatization Trust vs. Court of Appeals 300 SCRA 157

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Article 5.15. Competence of Arbitral Trib nal to R le on it! J ri!"iction.Article 5.1#. $o%er of Arbitral Trib nal toOr"er Interim &ea! re!.

8/10/2019 Asset Privatization Trust vs. Court of Appeals 300 SCRA 157

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CONDUCT OF

ARBITRAL$ROC''DIN(S

8/10/2019 Asset Privatization Trust vs. Court of Appeals 300 SCRA 157

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Article 5.1). '* al Treatment of $artie!.Article 5.1+. Determination of R le! of $roce" re.Article 5.1,. $lace of Arbitration.Article 5.- . Commencement of Arbitral $rocee"in/!.Article 5.-1. Lan/ a/e.Article 5.--. Statement! of Claim an" Defen!e.Article 5.-0. earin/ an" 2ritten $rocee"in/!.Article 5.-3. $o%er of Arbitral Trib nal to Or"er Interim &ea! re!.Article 5.-5. Defa lt of a $art4.Article 5.-#. ' pert Appointe" b4 t6e Arbitral Trib nal.Article 5.-). Co rt A!!i!tance in Ta7in/ '8i"ence an" Ot6er &atter!.Article 5.-+. R le! Applicable to t6e S b!tance of Di!p te.Article 5.-,. Deci!ion &a7in/ b4 t6e Arbitral Trib nal.Article 5.0 . Settlement.Article 5.01. Form an" Content! of A%ar".Article 5.0-. Termination of $rocee"in/!.Article 5.00. Correction an" Interpretation of A%ar"9 A""itional A%ar".Article 5.03. Application for Settin/ A!i"e an ' cl !i8e Reco r!e a/ain!t Arbitral A%ar".Article 5.05. (ro n"! to :acate an Arbitral A%ar".

8/10/2019 Asset Privatization Trust vs. Court of Appeals 300 SCRA 157

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8/10/2019 Asset Privatization Trust vs. Court of Appeals 300 SCRA 157

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Fact!>

T6e Rep blic of t6e $6ilippine! /rante"&&IC t6e e cl !i8e ri/6t to e plore9 "e8elopan" e ploit mineral! in t6e S ri/ao mineral

re!er8ation. T6e $6ilippine (o8ernmentn"ertoo7 to ! pport t6e ?nancin/ of &&IC.On J l4 109 1,+19 &&IC9 $NB an" DB$e ec te" a &ort/a/e Tr !t A/reement%6ereb4 &&IC9 a! mort/a/or9 a/ree" tocon!tit te a mort/a/e in fa8or of $NB an"DB$ a! mort/a/ee!9 o8er all &&IC@! a!!et!.

8/10/2019 Asset Privatization Trust vs. Court of Appeals 300 SCRA 157

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8/10/2019 Asset Privatization Trust vs. Court of Appeals 300 SCRA 157

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Fact!>

Je! ! S. Cabarr !9 Sr.9 to/et6er %it6 t6e ot6er!toc76ol"er! of &&IC9 ?le" a "eri8ati8e ! it a/ain!tDB$ an" $NB for Ann lment of Foreclo! re!9 Speci?c$erformance an" Dama/e!. In t6e co r!e of t6e trial9t6e partie! m t all4 a/ree" to ! bmit t6e ca!e toarbitration b4 enterin/ into a GCompromi!e an"Arbitration A/reement. T6e Compromi!e an"Arbitration A/reement limite" t6e i!! e! to t6e

follo%in/> a propriet4 of t6e plaintiH! ?lin/ t6e"eri8ati8e ! it b t6e re/ larit4 of t6e foreclo! reprocee"in/!. T6e trial co rt appro8e" t6e a/reementan" or"ere" t6at t6e complaint be "i!mi!!e".

8/10/2019 Asset Privatization Trust vs. Court of Appeals 300 SCRA 157

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Fact!>

After con" ctin/ !e8eral 6earin/!9 t6e ArbitrationCommittee ren"ere" a maEorit4 "eci!ion in fa8or of&&IC. &otion! for recon!i"eration! %ere ?le" b4 bot6partie!9 b t t6e !ame %ere "enie".

In 1,,39 pri8ate re!pon"ent! ?le" in t6e !ame Ci8ilCa!e No. ,, an GApplication &otion for Con?rmation ofArbitration A%ar". $etitioner co ntere" %it6 anGOppo!ition an" &otion to :acate J "/ment.$ri8atere!pon"ent! ?le" a Grepl4 an" oppo!ition ar/ in/ t6at a"i!mi!!al of Ci8il ca!e No. ,, %a! merel4 a G* ali?e""i!mi!!al to pa8e t6e %a4 for t6e ! bmi!!ion of t6econtro8er!4 to arbitration9 an" operate" !impl4 a! Gamere ! !pen!ion of t6e procee"in/!.

8/10/2019 Asset Privatization Trust vs. Court of Appeals 300 SCRA 157

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Fact!>

In an Or"er "ate" No8ember -+9 1,,39t6e trial co rt con?rme" t6e a%ar" of t6eArbitration Committee.

T6e petitioner ?le" it! motion forrecon!i"eration !pecial ci8il action forcertiorari petition for re8ie% on certiorari.

8/10/2019 Asset Privatization Trust vs. Court of Appeals 300 SCRA 157

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ISSU'>

26et6er or not t6e RTC of &a7ati9Branc6 #-9 6a! E ri!"iction to con?rm t6earbitral a%ar"

26et6er or not t6e ArbitrationCommittee can re!ol8e i!! e! be4on"t6e !cope of t6e arbitration a/reement

8/10/2019 Asset Privatization Trust vs. Court of Appeals 300 SCRA 157

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RULIN(>

A"mitte"l4 t6e correct proce" re %a! for t6e partie! to /obac7 to t6e co rt %6ere t6e ca!e %a! pen"in/ to 6a8e t6ea%ar" con?rme" b4 !ai" co rt. o%e8er9 Branc6 #- ma"et6e fatal mi!ta7e of i!! in/ a ?nal or"er "i!mi!!in/ t6e ca!e.B4 it! o%n action9 Branc6 #- 6a" lo!t E ri!"iction o8er t6e

ca!e. It co l" not 6a8e 8ali"l4 reac* ire" E ri!"iction o8ert6e !ai" ca!e on mere motion of one of t6e partie!. T6eR le! of Co rt i! !peci?c on 6o% a ne% ca!e ma4 be initiate"an" ! c6 i! not "one b4 mere motion in a partic lar branc6of t6e RTC. Con!e* entl49 a! t6ere %a! no Gpen"in/ actionto !pea7 of9 t6e petition to con?rm t6e arbitral a%ar" !6o l"6a8e been ?le" a! a ne% ca!e an" raKe" accor"in/l4 to oneof t6e branc6e! of t6e Re/ional Trial Co rt.

8/10/2019 Asset Privatization Trust vs. Court of Appeals 300 SCRA 157

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RULIN(>

A! a r le9 t6e a%ar" of an arbitrator cannot be !et a!i"efor mere error! of E "/ment eit6er a! to t6e la% or a! to t6efact!. Nonet6ele!!9 t6e arbitrator!@ a%ar"! i! not ab!ol tean" %it6o t e ception!. T6e arbitrator! cannot re!ol8ei!! e! be4on" t6e !cope of t6e ! bmi!!ion a/reement. T6epartie! to ! c6 an a/reement are bo n" b4 t6e arbitrator!@a%ar" onl4 to t6e e tent an" in t6e manner pre!cribe" b4t6e contract an" onl4 if t6e a%ar" i! ren"ere" in conformit4t6ereto. T6 !9 Section! -3 an" -5 of t6e Arbitration La%pro8i"e /ro n"! for 8acatin/9 re!cin"in/ or mo"if4in/ anarbitration a%ar". 26ere t6e con"ition! "e!cribe" inArticle! - 0+9 - 0, an" - 3 of t6e Ci8il Co"e applicable tocompromi!e! an" arbitration are atten"ant9 t6e arbitrationa%ar" ma4 al!o be ann lle".

8/10/2019 Asset Privatization Trust vs. Court of Appeals 300 SCRA 157

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T6e arbitrator! !6all 6a8e t6e po%er to"eci"e onl4 t6o!e matter! %6ic6 6a8ebeen ! bmitte" to t6em. T6e term! of

t6e a%ar" !6all be con?ne" to ! c6"i!p te!. Ot6er%i!e9 t6e arbitrationa%ar" ma4 be 8acate"9 re!cin"e"9mo"i?e" or ann lle".