Case Summary (G.R. No. 196171)
Key Dates and Legal Instruments
- Arbitration Tribunal issued various awards, including the Second Partial Award and the Final Award on June 16, 2010.
- Regional Trial Court (RTC) of Makati City issued orders confirming arbitration awards and issuance of writ of execution in 2009 and 2011.
- Court of Appeals issued decisions and resolutions between 2010 and 2011, reversing or affirming RTC decisions.
- The Philippine Supreme Court consolidated and decided related petitions on December 10, 2012, and subsequently dealt with motions for reconsideration and further petitions filed in 2013.
Applicable law is grounded on the 1987 Philippine Constitution given the post-1990 decision dates.
Nature of the Petitions and Issues Presented
There are three main related petitions:
- G.R. No. 196171: A petition for review under Rule 45 challenging the Court of Appeals decision that reversed the RTC's confirmation of the arbitration tribunal's Second Partial Award ordering BDO to pay RCBC Capital for a proportionate share in advance costs and dismissing counterclaims by BDO.
- G.R. No. 199238: A petition for certiorari under Rule 65 contesting the Court of Appeals’ denial of BDO’s request for a stay order, temporary restraining order (TRO), or preliminary injunction to enjoin RTC proceedings enforcing the Final Award.
- G.R. No. 200213: Another petition for review under Rule 45 seeking reversal of the Court of Appeals’ denial of BDO’s petition for certiorari and prohibition related to the RTC’s refusal to grant BDO access to Bankard’s computerized accounting system to verify facts used during arbitration.
Judicial Proceedings and Rulings Prior to Settlement
The RTC initially confirmed arbitration awards favoring RCBC Capital and dismissed BDO’s counterclaims. The Court of Appeals reversed the confirmation regarding the Second Partial Award but upheld the confirmation of the Final Award. The Supreme Court affirmed the Court of Appeals decisions in related petitions in December 2012, thereby confirming the validity and executability of the arbitration awards and related RTC orders. The issues involved enforcement of arbitral awards, access to proof and evidentiary sources used in arbitration, and procedural remedies regarding stay of enforcement.
Settlement Agreement and Joint Motion for Dismissal
After extensive negotiations, RCBC Capital, BDO, and Go/Shareholders mutually agreed to settle their disputes amicably, recognizing the importance of renewing their business relations and avoiding further litigation. They reached a complete, absolute, and final settlement of all claims, demands, counterclaims, and causes of action arising directly or indirectly from the facts that led to the petitions.
Accordingly, the parties jointly moved for the termination and dismissal of all pending cases with prejudice, signaling the end of litigation between them and the final resolution of issues relating to the arbitration awards, RTC decisions, and Court of Appeals rulings.
Final Supreme Court Resolution and Disposition
Pursuant to the joint motions and manifestations filed, the Supreme Court ordered the consolidation of G.R. No. 200213 with G.R. Nos. 196171 and 199238. Thereafter, the Court issued an order dismissing all three cases with prejudice and declared them closed and terminated. The dismissal with prejudice signifies that the parties have conclusively resolved their disputes and the cases may not be
...continue readingCase Syllabus (G.R. No. 196171)
Case Background and Parties Involved
- The case involves multiple petitions filed by and against RCBC Capital Corporation (RCBC Capital) and Banco de Oro Unibank, Inc. (BDO), now known as BDO Unibank, Inc.
- The disputes arose from arbitration proceedings initiated by RCBC Capital under an arbitration clause in a Share Purchase Agreement (SPA) dated May 27, 2000, involving EPCIB's shares in Bankard, Inc.
- EPCIB merged with BDO during the arbitration, and BDO assumed all of EPCIB’s liabilities and obligations.
- The petitions comprise:
- G.R. No. 196171: A petition for review under Rule 45 seeking reversal of the Court of Appeals decision that set aside a Regional Trial Court (RTC) order confirming a Second Partial Award by the Arbitration Tribunal.
- G.R. No. 199238: A petition for certiorari under Rule 65 challenging the denial of BDO’s application for a stay order and/or temporary restraining order against the enforcement of the RTC’s order.
- G.R. No. 200213: A petition for review under Rule 45 praying for the reversal of the Court of Appeals’ denial of petition for certiorari and prohibition with an application for a TRO against the RTC.
Nature and Progress of Arbitration and Judicial Proceedings
- Arbitration was conducted by a Tribunal under the International Chamber of Commerce-International Commercial Arbitration (ICC-ICA), focusing on disputes arising from the SPA.
- The Arbitration Tribunal issued various awards, including a Second Partial Award ordering BDO to pay RCBC Capital its proportionate share of advance costs and dismissing BDO’s counterclaims.
- The RTC of Makati City Branch 148 confirmed the Second Partial Award and later denied BDO's motion to access the computerized accounting system of Bankard, Inc., a fact and data source used by the Arbitration Tribunal.
- The Court of Appeals reversed the RTC’s confirmation of the Second Partial Award in G.R. No. 196171 but denied the stay order application in G.R. No. 199238.
- In G.R. No. 200213, the CA denied BDO’s petition for certiorari and prohibition, including its request for a TRO against the RTC.
- Subsequent writ of execution was issued by the RTC on August 22, 2011 to implement the final arbitral award.
Consolidation and Court Decisions Prior to Settlement
- In a decision dated December 10, 2012, G.R. Nos. 196171 and 199238 were consolidated, resulting in:
- Denial o