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ARBITRATON IN GENERAL
By Atty. Gabriel Robeniol
CHAPTER 4 - ARBITRATON IN GENERAL
ARBITRATION
Kinds of Arbitration
Policy on Arbitration
ARBITRATOR
ARBITRATION AGREEMENT
ESSENTIAL ELEMENTS
ARBITRATION CLAUSE
DOCTRINE OF SEPARABILITY
HELD: Without any documentary evidence to show the extent of tax liability
assumed by Uniwide, the Tribunal holds that the parties is obliged to pay only
a share of the VAT payment upto P60,000,000.00 out of the total contract price
of 120,936,591.50. VAT is paid on the on labor oonly for construction contracts
since VAT had already been paid on the materials purchased. Since labor costs
is proportionately placed at 60%-40% of the contract price, simplified
accounting computes VAT at 4% of the contract price. Whatever is the balance
for VAT that ramins to be paid on Project 1 shall remain the obligation of Titan.
CASE 1 UNIWIDE SALES REALTY VS. TITAN-IKEDA CONSTRUCTION
G.R. No. 126619, 20 December 2006
3rd ISSUE: Whether Uniwide is entitled to liquidated damage for Project 1 and 3
HELD: No, the Court of Appeals found that the issue has never been made concrete
enough to make Titan and CIAC aware that it will be an issue. In fact, Uniwide only
introduced and quantified its claim for liquidated damages in its memorandum
submitted to the CIAC at the end of the arbitration proceeding.
As an arbitration body, the CIAC can only resolve issued brought before it by
the parties through the TOR which functions similarly as a pre-trial brief, Uniwides
claim for unliquidated damages was not raised as an issue in the TOR or in any
modified or amended version of it, the CIAC cannot make a ruling on it.
CASE 1 UNIWIDE SALES REALTY VS. TITAN-IKEDA CONSTRUCTION
G.R. No. 126619, 20 December 2006
4th ISSUE: Whether Uniwide is liable for deficiencies in project 2
HELD: Uniwide had the burden of proving that there was defective construction
in Project 2 but it failed to discharge his burden. Even the credibility of its own
witness was severely impaired. Further, it was found that the concrete slab
placed by Titan was not attached to the old columns where cracks were
discovered.
CHAPTER 4 - ARBITRATON IN GENERAL
International
NOTE:
An International Commercial Arbitration proceeding conducted in the
Philippines under the auspices of the ADR Act is domestic and
international in character. On the other hand, an International
Commercial Arbitration conducted outside the Philippines is a foreign
arbitration
CASE 2 KOREA TECHNOLOGIES CO. - versus - HON. ALBERTO A.
LERMA and PACIFIC GENERAL STEEL CORPORATION, 542 SCRA 1
The policy is to favor alternative methods of resolving disputes,
particularly in civil and commercial disputes. Arbitration along with
mediation, conciliation, and negotiation, being inexpensive, speedy and
less hostile methods have long been favored by this Court. The petition
before us puts at issue an arbitration clause in a contract mutually agreed
upon by the parties stipulating that they would submit themselves to
arbitration in a foreign country.
The Supreme Court reiterate the judicial policy on arbitration. Aside from
unclogging judicial dockets, arbitration also hasten the resolution of disputes,
especially of the commercial kind. It is thus regarded as the WAVE OF THE
FUTURE in international civil and commercial disputes.
CASE 2 KOREA TECHNOLOGIES VS. LERMA 542 SCRA 1 (2008)