6 Frabelle Vs Phil American
6 Frabelle Vs Phil American
6 Frabelle Vs Phil American
Facts:
On 8 May 1996, respondents entered into a MOA [1996 MOA]
agreeing to contribute cash, property, and services to
construct and develop Philamlife Tower, a 45-storey office
condominium. On 6 December 1996, respondents assigned
[1996 DOA] to Frabelle Properties Corporation their rights and
obligations under the 1996 MOA with respect to the
construction, development, and ownership of Unit No. 38-B at
the 38th floor. They stipulated that the assignee shall be
deemed a co-developer of the construction of Unit No. 38-B.
Issues:
1. Whether or not HLURB has jurisdiction over complaint for
reformation of instruments, specific performance and
damages. [NO. Jurisdiction is in RTC]
2. Whether or not the parties should initially resort to
arbitration. [YES]
Ruling:
Petition is Denied.
I.
As the records show, the complaint filed by petitioner with the
HLURB is one for reformation of instruments. Petitioner
claimed that the terms of the contract are not clear and prayed
that they should be reformed to reflect the true stipulations of
the parties. Petitioner prayed:
SECTION 1. Who may file petition. - Any person interested under a deed,
will, contract or other written instrument, whose rights are affected by a
statute, executive order or regulation, ordinance, or any other
governmental regulation may, before breach or violation thereof, bring
an action in the appropriate Regional Trial Court to determine any
question of construction or validity arising, and for a declaration of his
rights or duties thereunder.
II.
With regard to the second and last issue, paragraph 4.2 of the
1998 MOA mandates that any dispute between or among the
parties "shall finally be settled by arbitration conducted
in accordance with the Rules of Conciliation and
Arbitration of the International Chamber of
Commerce." [14]
Petitioner referred the dispute to the PDRCI
but respondents refused to submit to its jurisdiction.
It bears stressing that such arbitration agreement is the law
between the parties. They are, therefore, expected to abide by
it in good faith.[15]