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2 National Transmission Vs Alphaomega
2 National Transmission Vs Alphaomega
2 National Transmission Vs Alphaomega
a) it had conducted
Project).
5
Detailed Engineering prior to the conduct of the bidding; and
(b) it had obtained the necessary government permits and
Republic of the Philippines endorsements from the affected LGUs. It asserted that AIC
In the course of the performance ofthe contracts, AIC
SUPREME COURT was guilty of frontloading– that is,collecting the bulk of the
encountered difficulties and incurred losses allegedly due to
Manila contract price for work accomplished at the early stages of
TRANSCO’s breach of their contracts, prompting it to
the project and then abandoning the later stagesof the
surrender the projects to TRANSCO under protest. In
project which has a lower contract price –and that it
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Corporation (AIC) by increasing petitioner National· Tribunal, even if AIC itself made the requests for contract
Transmission Corporation's (TRANSCO) liability from Pl time extensions, this did not bar its claim for damages as a
1) BTRP 560 711 days 127%
7,495,117.44 to Pl 8,896,673.31. result of project delayssince a contrary ruling would allow
Schedule III days
TRANSCO to profit from its own negligence and leave AIC to
The Facts 2) BTRP 270 406 days 170% suffer serious material prejudice as a direct consequence of
Schedule I days that negligence leaving it without any remedy at law. The 13
Installation of 230 KV and 69 KV S/S Equipment and Various 6) Quiot 300 131 days 44% Final Award reads:
Facilities for Makban Substation under the Batangas Substation days
Transmission Reinforcement Project (Schedule II) (Makban 2119 days 7
Substation Project); (d) Contract for the Construction, WHEREFORE, Respondent, National Transmission
Erection & Installation of 138 & 69 KV S/S Equipment for Corporation [TRANSCO] is hereby ordered to pay Claimant,
Bacolod Substation under the Negros III-Panay III Alphaomega Integrated Corporation, the following sums:
AIC prayed for judgment declaring all six (6) contracts
Substation Projects (Schedule II) (Bacolod Substation rescinded and ordering TRANSCO to pay, in addition to
Project); (e) Contract for the Construction, Erection & what had already been paid under the contracts, moral
Installation of 138 & 69 KV Substation Equipment for the (a) For BTRP Schedule III - ₱6,423,496.67
damages, exemplary damages, and attorney’s fees at
New Bunawan Switching Station Project (Bunawan ₱100,000.00 each, and a total of ₱40,201,467.19 as actual
Substation Project); and (f) Contract for the Construction, (b) For BTRP Schedule I - 5,214,202.30
and compensatory damages. 8
1
not only in part but in their entirety, thus, permitting no work raise only questions of law which must be distinctly set
(c) For Makban Substation - 3,075,870.95
activity at all during such periods.
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forth." Dynamic’s contention is valid topoint as, indeed, the
matters raised by Hanjin are factual, revolving as they do on
(d) For Bacolod Substation - 1,362,936.77
the entitlement of Dynamic to the awards granted and
The CA upheld the Arbitral Tribunal’s Final Award as having
computed by the CIAC and the CA. Generally, this would be
(e) For Bunawan Substation - 820,481.72 been sufficiently established by evidence but modified the
a question of fact that this Court would not delve upon.
total amount of the award after noting a supposed
(f) For Quiot Substation - 598, 129.03 Imperial v. Jauciansuggests as much. There, the Court ruled
mathematical error in the computation. Setting aside
that the computation of outstanding obligation is a question
TRANSCO’s objections, it ruled that when a case is brought
TOTAL ₱17,495,117.44 of fact:
to a superior court on appeal every aspect of the case is
thrown open for review, hence, the subject error could be
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rectified. The CA held that the correct amount of the award Arguing that she had already fully paid the loan x x x,
Each Party shall shoulder its own cost of arbitration. should be ₱18,896,673.31, and not ₱17,495,117.44 as petitioner alleges that the two lower courts misappreciated
stated in the Arbitral Tribunal’s Final Award. Dissatisfied,
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the facts when they ruled that she still had an outstanding
TRANSCO moved for reconsideration but was, however,
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balance of ₱208,430.
The foregoing amount of ₱17,495,117.44 shall earn interest
denied by the CA in a Resolution dated August 27, 2008,
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at the rate of six percent (6%) per annum from the date of
hence, the instant petition.
promulgation of this Final Award until it becomes final and This issue involves a question of fact. Such question exists
executory. Thereafter, the Final Award, including accrued when a doubt or difference arises as to the truth or the
interest, shall earn interest at the rate of 12% per annum The Issues Before the Court falsehood of alleged facts; and when there is need for a
until the entire amount due is fully paid. (Emphasis 15
calibration of the evidence, considering mainly the credibility
supplied) of witnesses and the existence and the relevancy of specific
The essential issues for the Court’s consideration are
surrounding circumstances, their relation to each other and
whether or not the CA erred (a) in affirming the CIAC Arbitral
to the whole, and the probabilities of the situation. (G.R. No.
Unconvinced, TRANSCO instituted a petition for review with 16
Tribunal’s findings that AIC was entitled to its claims for
149004, April 14, 2004, 427 SCRA 517, 523-524.)
the CA. damages as a result of project delays, and (b) in increasing
the total amount of compensation awarded in favor of AIC
despite the latter’s failure to raise the allegedly erroneous The rule, however, precluding the Court from delving on the
Before filing its comment to the petition, AIC moved for the
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computation of the award before the CIAC in a timely factual determinations of the CA, admits of several
issuance of a writ of execution, not for the amount of
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manner, that is, within fifteen (15) days from receipt of the exceptions. In Fuentes v. Court of Appeals, we held that the
17,495,117.44 awarded in the Final Award, but for the
Final Award as provided under Section 17.1 of the CIAC findings of facts of the CA, which are generally deemed
increased amount of 18,967,318.49. It sought correction of
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must be distinctly set forth." Thus, absent any of the existing (4) when there is grave abuse of discretion in the
Arbitral Tribunal’s factual findings that TRANSCOfailed to
exceptions impelling the contrary, the Court is, as a general appreciation of facts;
exercise due diligence in resolving the problems regarding
rule, precluded from delving on factual determinations, as
the right-of-way and the lack of materials before undertaking
what TRANSCO essentially seeks in this case. Similar to the
the bidding process and entering into the contracts with (5) when the [CA], in making its findings, goes
foregoing is the Court’s ruling in Hanjin Heavy Industries and
AIC. It found no merit in TRANSCO’s allegation that AIC
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beyond the issues of the case, and such findings
Construction Co., Ltd. v. Dynamic Planners and Construction
refused to perform the remaining workable portions of the are contrary to the admissions of both appellant
Corp., the pertinent portions ofwhich are hereunder quoted:
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2
(7) when the [CA] fails to notice certain relevant within fifteen (15) days from receipt thereof upon any of the may not obtain any affirmative relief from the appellate court
facts which, if properly considered, will justify a following grounds: other than what he had obtained from the lower court, if any,
different conclusion; whose decision is brought up on appeal. The disposition, as
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(8) when the findings of fact are themselves arithmetical error; (Emphasis supplied)
conflicting;
WHEREFORE, the petition is PARTLY GRANTED. The
xxxx
Decision dated April 8, 2008 of the Court of Appeals in CA-
(9) when the findings of fact are conclusions
G.R. SP No. 99454 is hereby AFFIRMED with
without citation of the specific evidence on which
Failure to file said motion would consequentlyrender the MODIFICATION. The compensation awarded in favor of
they are based; and
award final and executory under Section 18. 1 of the same Alphaomega Integrated Corporation in the amount of
rules, viz.: ₱17,495,117.44, as shown in the fallo of the ·construction
(10) when the findings of fact of the [CA] are Industry Arbitration Commission's Final Award dated April
premised on the absence of evidence but such 18, 2007, stands.
Section 18.1 Execution of Award – A final arbitral award
findings are contradicted by the evidence on
shall become executory upon the lapse of fifteen (15) days
record. (G.R. No. 109849, February 26, 1997, 268
from receipt thereof by the parties. SO ORDERED.
SCRA 703, 709)
1âwphi1
which have acquired expertise because their jurisdiction is in this case considering that the CIAC Rules provides for a
confined to specific matters, are generally accorded not only specific procedureto deal with particular errors involving "[a]n
respect, but also finality, especially when affirmed by the evident miscalculation of figures, a typographical or
CA. The CIAC possesses that required expertise in the field
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arithmetical error." Indeed, the rule iswell entrenched:
of construction arbitration and the factual findings of its Specialis derogat generali. When two rules apply to a
construction arbitrators are final and conclusive, not particular case, thatwhich was specially designed for the
reviewable by this Court on appeal. 33
said case must prevail over the other. 38
While the CA correctly affirmed infull the CIAC Arbitral Furthermore, it must be emphasized that the petition for
Tribunal’s factual determinations, it improperly modified the review before the CA was filed by TRANSCO. AIC never 39
amount of the award in favor of AIC, which modification did elevated before the courts the matter concerning the
not observe the proper procedure for the correction of an discrepancy between the amount of the award stated in the
evident miscalculation of figures, including typographical or body of the Final Award and the total award shown in its
arithmetical errors, in the arbitral award. Section 17.1 of the dispositive portion. The issue was touched upon bythe CA
CIAC Rules mandates the filing of a motion for the foregoing only after AIC raised the same through its Comment (With
purpose within fifteen (15) days from receipt thereof, viz.: Motion to Acknowledge Actual Amount of Award) to 40