G.R. No. 87958 - National Union Fire Insurance Co. of Pittsburg vs. Stolt-Nielsen Phil., Inc.

On January 9, 1985, United Coconut Chemicals, Inc. (SHIPPER) shipped 404.774 metric tons of distilled C6–C18 fatty acid aboard MT “Stolt Sceptre,” owned by Stolt-Nielsen Philippines, Inc. (CARRIER), from Bauan, Batangas, Philippines, to Rotterdam, Netherlands, under Tanker Bill of Lading No. BAT-1.
The Bill of Lading contained a clause incorporating by reference the terms of a Charter Party dated December 21, 1984, between SHIPPER and Parcel Tankers, Inc., including all terms except freight rates and payment.

Upon discharge in Rotterdam, the consigned cargo was found discolored and contaminated; SHIPPER’s claim against the CARRIER was denied.
The shipment was insured under a marine cargo policy issued by National Union Fire Insurance Co. of Pittsburg, PA and American International Underwriters (Phil.), Inc. (INSURER). Pursuant to their indemnity obligation, the INSURER compensated SHIPPER and, as subrogee, stepped into the latter’s rights.

On April 21, 1986, INSURER, as subrogee, filed Civil Case No. 13498 before the RTC of Makati (Branch 58) for P1,619,469.21 plus interest.
The CARRIER moved to dismiss or suspend the suit, invoking the arbitration clause in the Charter Party incorporated in the Bill of Lading.
The RTC initially denied the motion (July 28, 1987), then on November 19, 1987 deferred resolution of the motion until trial on the merits.
The CARRIER secured a Petition for Certiorari and Prohibition before the Court of Appeals (CA), which on April 12, 1989 set aside the RTC’s November 19, 1987 order, directed INSURER to refer claims to arbitration, and suspended the RTC proceedings pending arbitration.
The Supreme Court, on August 21, 1989, gave due course to the petition, required memoranda, and ultimately took the case for resolution.

Whether the interlocutory RTC order deferring resolution on the CARRIER’s motion to dismiss or suspend proceedings may be challenged by certiorari and prohibition.
Whether, as subrogee, the INSURER is bound by the arbitration clause in the Charter Party incorporated by reference in the Bill of Lading.