Case Summary (G.R. No. 250539)
Facts and Background
On June 24, 2014, DHY Realty entered into a construction contract with Wing-An, under which Wing-An was to construct a facility in Pasig City. Disputes related to the construction ensued, particularly regarding payment for additional work. While initial fees were agreed upon, complications arose when DHY Realty delayed payments, which led to Wing-An imposing interest and demanding further compensation after additional work was performed. Following a series of correspondences and unsuccessful negotiations, Wing-An initiated arbitration proceedings with the Construction Industry Arbitration Commission (CIAC) in June 2016.
CIAC Arbitration Proceedings
Wing-An filed a Request for Arbitration with CIAC, claiming a substantial amount for additional works not paid by DHY Realty. The CIAC issued notices to DHY Realty at what was believed to be its last known address, located in Makati. However, subsequent notices were undelivered, prompting the CIAC to request Wing-An to verify DHY Realty's address. Eventually, arbitration proceeded in absentia after multiple attempts of service were deemed unsuccessful.
CIAC Final Award
On May 9, 2017, the CIAC ruled in favor of Wing-An, ordering DHY Realty to compensate for the work completed, plus interest and fees. The CIAC held that due service was properly executed based on the address provided in DHY Realty’s last General Information Sheet (GIS) filed with the Securities and Exchange Commission. Following this, Wing-An executed the proceedings to collect the awarded amount, leading to further disputes regarding the validity of the CIAC's decisions.
Court of Appeals Involvement
DHY Realty challenged the CIAC's Final Award in the Court of Appeals (CA) through a Petition for Review. However, due to issues with service of motions and notices, which were returned as undelivered, the CA allowed for substituted service. Ultimately, DHY Realty's contention that it was denied due process was dismissed. The CA affirmed the CIAC's Final Award and resolved that service was adequately conducted as required under existing rules.
Legal Issues Presented
The issues focalized on whether DHY Realty was properly served the relevant notices and whether their petition for certiorari was the correct remedy to challenge the CIAC’s and CA's decisions. It questioned the sufficiency of service of process and allegations of grave abuse of discretion against both the CIAC and CA.
Court's Ruling
The Supreme Court ruled against DHY Realty's Petition for Certiorari, emphasizing that the remedy sought through Rule 65 of the Rules of Court was inappropriate in light of available appeal mech
...continue readingCase Syllabus (G.R. No. 250539)
Overview of the Case
- Petitioner: DHY Realty & Development Corporation
- Respondents: The Honorable Court of Appeals-Special Sixth Division, Construction Industry Arbitration Commission, Sheriff of the Construction Industry Authority of the Philippines, Wing-An Construction Development Corporation
- Date: January 11, 2023
- Case Reference: G.R. No. 250539
- Nature of Petition: Petition for Certiorari under Rule 65 of the Rules of Court
Background Facts
- DHY Realty and Wing-An entered into a Construction Contract Agreement on June 24, 2014, for the construction of a warehouse building in Pasig City, which included an arbitration clause.
- Construction commenced on January 10, 2014, with a completion expected by August 2014. Wing-An proposed additional work for a high fence, which DHY Realty accepted.
- Disputes arose regarding payment for the additional works, leading Wing-An to send multiple demands for payment, including interest due to delays.
- A series of meetings occurred between the parties to address payment issues, but an agreement was not reached, culminating in Wing-An filing a Complaint and Request for Arbitration with the Construction Industry Arbitration Commission (CIAC) on September 29, 2016.
CIAC Proceedings
- Wing-An filed a Complaint seeking payment from DHY Realty, which included claims for additional work, exemplary damages, and arbitration fees.
- CIAC sent notices of the arbitration proceedings to DHY Realty's address as provided in the Comp