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HUTAMA-RSEA JOINT OPERATIONS v. CITRA METRO MANILA TOLLWAYS CORPORATION

This case has been cited 2 times or more.

2011-04-04
BRION, J.
In HUTAMA-RSEA Joint Operations, Inc. v. Citra Metro Manila Tollways Corporation,[47] the Court declared that "the bare fact that the parties x x x incorporated an arbitration clause in [their contract] is sufficient to vest the CIAC with jurisdiction over any construction controversy or claim between the parties.  The arbitration clause in the construction contract ipso facto vested the CIAC with jurisdiction."
2010-08-09
PERALTA, J.
Clearly, the subject matter of petitioner's claims arose from differences in interpretation of the contract, and under the terms thereof, such disputes are subject to voluntary arbitration.  Since, under Section 4 of Executive Order No. 1008 the CIAC shall have original and exclusive jurisdiction over disputes arising from, or connected with, contracts entered into by parties involved in construction in the Philippines and all that is needed for the CIAC to acquire jurisdiction is for the parties to agree to submit the same to voluntary arbitration, there can be no other conclusion but that the CIAC had jurisdiction over petitioner's complaint.  Furthermore, Section 1, Article III of the CIAC Rules of Procedure Governing Construction Arbitration (CIAC Rules) further provide that "[a]n arbitration clause in a construction contract or a submission to arbitration of a construction dispute shall be deemed an agreement to submit an existing or future controversy to CIAC jurisdiction, notwithstanding the reference to a different arbitration institution or arbitral body in such contract or submission."  Thus, even if there is no showing that petitioner previously brought its claims before a Board of Arbitrators constituted under the terms of the contract, this circumstance would not divest the CIAC of jurisdiction. In HUTAMA-RSEA Joint Operations, Inc. v. Citra Metro Manila Tollways Corporation,[11] the Court held that: Under Section 1, Article III of the CIAC Rules, an arbitration clause in a construction contract shall be deemed as an agreement to submit an existing or future controversy to CIAC jurisdiction, "notwithstanding the reference to a different arbitration institution or arbitral body in such contract x x x." Elementary is the rule that when laws or rules are clear, it is incumbent on the court to apply them. When the law (or rule) is unambiguous and unequivocal, application, not interpretation thereof, is imperative.