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PRUDENTIAL GUARANTEE v. ANSCOR LAND

This case has been cited 5 times or more.

	GR No. 204689 2015-01-21	STRONGHOLD INSURANCE COMPANY v. SPS. RUNE LEONEN, J.
This court has previously held that a performance bond, which is meant "to guarantee the supply of labor, materials, tools, equipment, and necessary supervision to complete the project[,]"[59] is significantly and substantially connected to the construction contract and, therefore, falls under the jurisdiction of the CIAC.[60]
	GR No. 204689 2015-01-21	STRONGHOLD INSURANCE COMPANY v. SPS. RUNE LEONEN, J.
Prudential Guarantee and Assurance Inc. v. Anscor Land, Inc.[61] involved circumstances similar to the present case. In Prudential, property owner Anscor Land, Inc. (ALI) entered into a contract for the construction of an eight-unit townhouse located in Capitol Hills, Quezon City with contractor Kraft Realty and Development Corporation (KRDC).[62] KRDC secured the completion of the construction project through a surety and performance bond issued by Prudential Guarantee and Assurance Inc. (PGAI).[63]
	GR No. 204689 2015-01-21	STRONGHOLD INSURANCE COMPANY v. SPS. RUNE LEONEN, J.
In the case at bar, the performance bond was silent with regard to arbitration. On the other hand, the construction contract was clear as to arbitration in the event of disputes. Applying the said doctrine, we rule that the silence of the accessory contract in this case could only be construed as acquiescence to the main contract. The construction contract breathes life into the performance bond. We are not ready to assume that the performance bond contains reservations with regard to some of the terms and conditions in the construction contract where in fact it is silent. On the other hand, it is more reasonable to assume that the party who issued the performance bond carefully and meticulously studied the construction contract that it guaranteed, and if it had reservations, it would have and should have mentioned them in the surety contract.[76] (Emphasis supplied)
	GR No. 204689 2015-01-21	STRONGHOLD INSURANCE COMPANY v. SPS. RUNE LEONEN, J.
j. Appendices A & B (respectively, Surety Bond for Performance and, Supply of Materials by the Developer)[78] (Emphasis supplied)
	GR No. 179628 2013-01-16	MANILA INSURANCE COMPANY v. SPS. ROBERTO AND AIDA AMURAO DEL CASTILLO, J.
Based on the foregoing, in order for the CIAC to acquire jurisdiction two requisites must concur: "first, the dispute must be somehow connected to a construction contract; and second, the parties must have agreed to submit the dispute to arbitration proceedings."[54]