Title
Department of Foreign Affairs vs. BCA International Corp.
Case
G.R. No. 210858
Decision Date
Jun 29, 2016
DFA and BCA disputed an MRP/V Project agreement, leading to arbitration. DFA invoked deliberative process privilege to block evidence; SC ruled RA 9285 and ADR Rules apply, remanding to RTC to assess privilege claims.

Case Digest (G.R. No. 210858)
Expanded Legal Reasoning Model

Facts:

  • Agreement and Arbitration Clause
  • On 5 April 2002, the Department of Foreign Affairs (DFA) and BCA International Corporation (BCA) executed an Amended Build-Operate-Transfer Agreement for the Machine Readable Passport and Visa Project (MRP/V Project).
  • Section 19.02 of the Agreement provided that disputes unresolvable within 90 days by mutual discussion would be settled “with finality by an arbitrage tribunal operating under International Law” pursuant to the 1976 UNCITRAL Arbitration Rules, with the place of arbitration in Pasay City and proceedings in English.
  • Arbitral Tribunal and Petition for Assistance in Taking Evidence
  • On 29 June 2009, an ad hoc arbitral tribunal was constituted under the Agreement.
  • On 15 April 2013, the tribunal approved BCA’s request to apply in court for subpoenas, subject to non-interference with its October 2013 hearings.
  • On 16 May 2013, BCA filed in the RTC of Makati a Petition for Assistance in Taking Evidence under R.A. 9285 and its IRR, seeking subpoenas ad testificandum and duces tecum for DFA officials and voluminous documents relating to contract negotiations, implementation delays, site approvals, termination attempts, financial capability demands, and related agency opinions.
  • RTC Resolutions, Subpoenas, and Supreme Court Proceedings
  • On 2 September 2013, RTC Branch 146 granted BCA’s petition, ordering issuance of subpoenas for hearings on 14–17 October 2013.
  • DFA moved to quash the subpoenas; on 11 October 2013, the RTC denied the motion as a prohibited motion for reconsideration.
  • Subpoenas were served and three DFA officials testified before the tribunal in October 2013.
  • On 8 January 2014, the RTC denied DFA’s motion for reconsideration as moot. DFA then filed this petition before the Supreme Court, which issued a TRO on 2 April 2014 enjoining use of the testimony.

Issues:

  • Applicable Procedural Rules
  • Whether the 1976 UNCITRAL Arbitration Rules and the Rules of Court govern DFA-BCA arbitration, instead of R.A. 9285, its IRR, and the Special ADR Rules.
  • Deliberative Process Privilege
  • Whether the witnesses and documents compelled by subpoenas are protected by the deliberative process privilege and thus immune from compulsory disclosure.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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