Case Summary (G.R. No. 235878)

Petition Overview

• The case involves a Petition for Review on Certiorari filed by Busan Universal Rail, Inc. (petitioner) against the Department of Transportation-Metro Rail Transit 3 (respondent).
• The petition challenges the Orders of the Regional Trial Court (RTC) that denied the issuance of interim measures of protection, including a temporary restraining order.
• The RTC's Orders were dated October 13, 2017, and December 11, 2017.

Contractual Background

• The MRT3 Contract was established through negotiated procurement under Republic Act No. 9184.
• The contract involved a Joint Venture, including Busan Transportation Corporation and others, for the maintenance and overhaul of the MRT3 system.
• The total contract amount was P3,809,128,888.00, divided into four packages, covering maintenance, overhaul of light rail vehicles (LRVs), signaling system replacement, and additional maintenance works.

Payment Disputes

• After initiating work under Package 1, the petitioner submitted multiple billing statements, with Billing Nos. 1 to 8 being paid.
• Billing No. 9 was not settled due to a directive from the DOTr requiring additional documentation and withholding of payments.
• Subsequent communications indicated ongoing disputes regarding the performance of the contract, leading to unpaid billings from Nos. 9 to 18.

Arbitration Proceedings

• The petitioner sought to resolve disputes through mutual consultation and subsequently notified the respondent of its intention to commence arbitration.
• A Petition for Interim Measures of Protection was filed with the RTC to maintain the status quo and prevent contract termination.
• The RTC denied the petition, noting that the case had been referred for arbitration.

RTC's Rulings

• The RTC ruled that it lacked jurisdiction to issue the requested interim measures based on RA 8975, which prohibits lower courts from issuing restraining orders against government infrastructure projects.
• The RTC concluded that the issues raised were arbitrable and that the petitioner had not demonstrated a valid basis for the requested relief.

Legal Arguments

• The petitioner argued that the RTC had the authority to issue interim measures under RA 9184 and that the arbitration clause in the MRT3 Contract should allow for such measures.
• The respondent countered that RA 8975 explicitly prohibits lower courts from issuing injunctions against government projects, asserting that the issues were to be resolved in arbitration.

Relevant Statutory Provisions

• RA 9184 and its Implementing Rules provide for arbitration as the mode of dispute resolution for contracts covered by the Act.
• RA 9285 allows for interim measures of protection from courts before the constitution of an arbitral tribunal.
• RA 8975 prohibits lower courts from issuing temporary restraining orders or injunctions against national government projects, with limited exceptions.
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Case Syllabus (G.R. No. 235878)

Case Background

• The case revolves around a Petition for Review on Certiorari under Rule 45 with an application for the issuance of a Status Quo Order and/or Preliminary Mandatory Injunction.
• Busan Universal Rail, Inc. (petitioner) challenges the Orders dated October 13, 2017, and December 11, 2017, issued by Branch 105 of the Regional Trial Court (RTC) in Quezon City.
• The RTC denied the petitioner's request for interim measures of protection against the Department of Transportation (DOTr)-Metro Rail Transit (MRT) 3 (respondent).

Antecedents of the Case

• The MRT3 Contract, resulting from a negotiated procurement under Republic Act No. (RA) 9184, involves a Joint Venture including Busan Transportation Corporation, Edison Development and Construction, Tramat Mercantile, Inc., TMICorp, Inc., and Castan Corporation.
• The total value of the MRT3 Contract is P3,809,128,888.00, divided into four packages:
  1. Package 1: Maintenance of the MRT3 system (P1,962,000,000.00).
  2. Package 2: General overhaul of 43 light rail vehicles (P907,369,561.81).
  3. Package 3: Total replacement of the MRT3 signaling system (P888,000,000.00).
  4. Package 4: Additional maintenance works (P51,759,326.19).
• The petitioner submitted multiple billing statements, but Billing No. 9 was not settled due to requests for additional documentation from the DOTr.
• Following communications regarding potenti...continue reading