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  • (G.R. No. 96283) Chung-Fu Industries vs. Court of Appeals (Digest)

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    Ryan Leocario
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    Chung-Fu Industries and Roblecor Philippines entered into a construction contract that included an arbitration clause. When a dispute arose, they signed an arbitration agreement stating the arbitrator's decision would be final and unappealable. The arbitrator ruled in favor of Roblecor. Chung-Fu appealed but courts ruled it was precluded from appealing per the agreement. The Supreme Court upheld the validity of agreements making arbitration awards final, but noted they are still subject to judicial review and annulment if legally warranted.

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    [G.R. No. 96283] Chung-Fu Industries vs. Court of Appeals (digest)

    Original Title

    [G.R. No. 96283] Chung-Fu Industries vs. Court of Appeals (digest)

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    Chung-Fu Industries and Roblecor Philippines entered into a construction contract that included an arbitration clause. When a dispute arose, they signed an arbitration agreement stating the arbitrator's decision would be final and unappealable. The arbitrator ruled in favor of Roblecor. Chung-Fu appealed but courts ruled it was precluded from appealing per the agreement. The Supreme Court upheld the validity of agreements making arbitration awards final, but noted they are still subject to judicial review and annulment if legally warranted.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Download as pdf or txt
    419 views1 page

    (G.R. No. 96283) Chung-Fu Industries vs. Court of Appeals (Digest)

    Uploaded by

    Ryan Leocario
    Chung-Fu Industries and Roblecor Philippines entered into a construction contract that included an arbitration clause. When a dispute arose, they signed an arbitration agreement stating the arbitrator's decision would be final and unappealable. The arbitrator ruled in favor of Roblecor. Chung-Fu appealed but courts ruled it was precluded from appealing per the agreement. The Supreme Court upheld the validity of agreements making arbitration awards final, but noted they are still subject to judicial review and annulment if legally warranted.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    of 1

    CHUNG-FU INDUSTRIES vs.

    Court of Appeals
    [G.R. No. 96283] 25 February 1992

    Facts

    Chung-Fu Industries (Chung-Fu), herein petitioner, and Roblecor Philippines, Inc. (Roblecor),
    herein private respondent, entered into a construction agreement whereby the latter undertakes
    to build the former’s industrial complex.

    In the event of disputes arising from the performance of the subject contract, it was stipulated
    therein that the issue(s) shall be submitted for resolution before a single arbitrator chosen by
    both parties.

    When Roblecor failed to perform its contractual obligation, Chung-Fu took over the construction.
    Hence, Roblecor filed a petition for Compulsory Arbitration to claim its unpaid billings.

    Subsequent negotiations between the parties eventually led to the formulation of an arbitration
    agreement, which stipulates that the parties mutually agree that the decision of the arbitrator
    shall be final and unappealable. Therefore, there shall be no further judicial recourse if either
    party disagrees with the whole or any part of the arbitrator's award. The Regional Trial Court
    approved the Arbitration Agreement and selected an arbitrator.

    The arbitrator ruled in favor of Roblecor. Aggrieved, Chung-Fu moved for further hearing but
    was denied by the trial court. Its motion for reconsideration was also denied. The Court of
    Appeals affirmed the trial court’s decision. The trial court and the appellate court both determined
    that Chung-Fu is precluded from challenging the decision in accordance with the Arbitration
    Agreement.

    Hence, this petition.

    Issue:

    Whether or not the parties may stipulate that the arbitration award shall be final, unappealable
    and executory.

    Ruling

    Yes. The Civil Code recognizes the validity of a stipulation where the arbitration award shall be
    final, unappealable and executory. However, this does not mean that the arbitration award is
    beyond the ambit of judicial review. The finality of an arbitration award is not absolute; it may
    be annulled or rescinded based on grounds provided by law.

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