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SEC. 25. Interpretation of the Act.-In interpreting the Act, the court shall
have due regard to the policy of the law in favor of arbitration. Where action
is commenced by or against multiple parties, one or more of whom are parties
to an arbitration agreement, the court shall refer to arbitration those parties
who are bound by the arbitration agreement although the civil action may
continue as to those who are not bound by such arbitration agreement.
Facts: The. BCDA entered into a Joint Venture Agreement with the PNR. The
said Agreement contained an arbitration clause. BCDA ordanized and
incorporated Northrail and was registered to SEC. BDCA invited investors for
the said project, and the Respondent was made an investor. BDCA and PNR,
including the Respondent entered into an Agreement.
Later, Northrail withdrew from the SEC its application for increased
authorized capital stock, and the DCMI-PCI started demanding the return of
its P300M deposit, which was not returned. Hence, DMCI filed a case before
the RTC a demand to arbitrate based on the arbitration clause included in the
Agreement previously entered into between BCDA and PNR. Petitioners filed
a motion to dismiss on the ground that DCMI was not a party thereto.
Issue: WON DCMI can demand arbitration based on the Agreement which it
was not a party.
Our policy in favor of party autonomy in resolving dispute has been reflected
in our laws as early as 1949 when our Civil Code was approved. Republic 876
later explicitly recognized the validity and enforceability of parties’ decision to
submit disputes and related issues to arbitration.
SEC. 25. Interpretation of the Act.-In interpreting the Act, the court shall
have due regard to the policy of the law in favor of arbitration. Where
action is commenced by or against multiple parties, one or more of
whom are parties to an arbitration agreement, the court shall refer to
arbitration those parties who are bound by the arbitration agreement
although the civil action may continue as to those who are not bound
by such arbitration agreement.
Rule (Title):
Section (Title):
Doctrine:
Facts:
Issue:
Ruling: