Heungwa Industry vs. DJ Builders

Heungwa Industry Vs. DJ builders G.R. No. 169095 AUSTRIA-MARTINEZ,  J .: .:

F!"#: Heungh Heunghwa wa Indus Industr try y Co., Co., Ltd. Ltd. (pe (peoner oner)) is a Kore Korean an corpo corpora rao on n doing doing busin business ess in the the Phili Philippi ppines, nes, while while ! "uil "uilder derss Corpor Corpora aon on (resp (respond ondent ent)) is a corpo corpora ra on duly duly organi#ed under the laws o$ the Philippines. Peoner was able to secure a contract with the the e epa part rt%e %ent nt o$ Publ Public ic &or's or's and and High Highw ways ays (P& (P&H) H) to cons constr truc uctt the the oas oas** Langogan oad in Palawan. Peo Peoner ner ente entere red d into into a subc subcon ontr trac actt agre agree% e%en entt with with respo respond nden entt ! "uilders Corporaon to do earthwor', sub base course and bo cul+ert o$ said proect. -he agree%ent contained an arbitraon clause. -he agreed price was not $ully paid, hence,res hence,responden pondentt led be$ore the egional egional -rial -rial Court $or "reach "reach o$  Contract, Collecon o$ /u% o$ 0oney with applicaon $or Preli%inary Inuncon, Prel Preli% i%in inary ary *12a *12ach ch%e %ent nt,, and Pray Prayer er $or $or -e%por e%porary ary e est stra rain inin ing g 3rder 3rder and a%ages. Peoner a+erred that it was not obliged to pay respondent because the la2er la2er caused caused the stoppa stoppage ge o$ wor'. wor'. Peon Peoner er $urther $urther clai%e clai%ed d that that it $ailed $ailed to collect $ro% the P&H due to respondent4s poor e5uip%ent. Pares sub%i2ed to the -C that specic issues, such as %anpower and e5uip%ent standby %e, unrecouped %obili#aon epenses, retenon, discrepancy o$ billings, and price escalaon $or $uel and oil usage be sub%i2ed to the CI1C $or arbitraon. -he said %oon was granted by the -C.

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Peoner later led a %oon to recall the order which re$erred the case to CI1C, stang that their counsel was not gi+en the authority to sub%it the case $or arbitraon with the CI1C. espondent opposed by ling a %oon o$ dis%issal which the -C granted but the order was also recalled by the -C later. later. &ithout any intent $ro% the peoner to reply on the proceedings o$  arbitraon with the CI1C, the peoner led a case on the C1 5uesoning the  urisdicon o$ CI1C which was decided in against the peoner. peoner.

I##$%: &hether or not the C1 erred in conr%ing the urisdicon o$ the CI1C o+er the case6

H%&D: -he peon is de+oid o$ %erit and CI1C has urisdicon o+er the case. -he CI1C4s original and eclusi+e urisdicon o+er the construcon dispute was the %ere agree%ent o$ the pares and not the Court 4s re$erral order. order. -he recall o$ the re$erral re$erral order by the -C did not depri+e the CI1C o$ the urisdicon it had already ac5uired.

7urther it was held in the -esco -esco case that as long as the pares agree to sub%it to +oluntary arbitraon, regardless o$ what $oru% they %ay choose, their agree%ent will $all within the urisdicon o$ the CI1C, such that, e+en i$ they specically choose another $oru%, the pares will not be precluded $ro% elecng to sub%it their dispute be$ore the CI1C because this right has been +ested upon each party by law, i.e., 8.3. 9o. ;;