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    Fiesta Mall V Linberg

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    Katrina Sison
    The respondent, Linberg Philippines, Inc., constructed a power plant for the petitioner, Fiesta World Mall Corporation, at a cost of 130 million pesos. The petitioner disputed the amount owed and refused to pay despite demands from the respondent. Their agreement contained an arbitration clause requiring any disputed amounts to be resolved by a three-person arbitration panel before legal action could be taken. The respondent filed a complaint, which the petitioner argued was premature as arbitration had not yet occurred per their agreement. The court ruled the complaint was premature as the agreement mandated arbitration as the means to resolve any disputes over invoice amounts.

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    Fiesta Mall V Linberg

    Uploaded by

    Katrina Sison
    15 views2 pages
    The respondent, Linberg Philippines, Inc., constructed a power plant for the petitioner, Fiesta World Mall Corporation, at a cost of 130 million pesos. The petitioner disputed the amount owed and refused to pay despite demands from the respondent. Their agreement contained an arbitration clause requiring any disputed amounts to be resolved by a three-person arbitration panel before legal action could be taken. The respondent filed a complaint, which the petitioner argued was premature as arbitration had not yet occurred per their agreement. The court ruled the complaint was premature as the agreement mandated arbitration as the means to resolve any disputes over invoice amounts.

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    Fiesta Mall v Linberg

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    The respondent, Linberg Philippines, Inc., constructed a power plant for the petitioner, Fiesta World Mall Corporation, at a cost of 130 million pesos. The petitioner disputed the amount owed and refused to pay despite demands from the respondent. Their agreement contained an arbitration clause requiring any disputed amounts to be resolved by a three-person arbitration panel before legal action could be taken. The respondent filed a complaint, which the petitioner argued was premature as arbitration had not yet occurred per their agreement. The court ruled the complaint was premature as the agreement mandated arbitration as the means to resolve any disputes over invoice amounts.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Download as docx, pdf, or txt
    15 views2 pages

    Fiesta Mall V Linberg

    Uploaded by

    Katrina Sison
    The respondent, Linberg Philippines, Inc., constructed a power plant for the petitioner, Fiesta World Mall Corporation, at a cost of 130 million pesos. The petitioner disputed the amount owed and refused to pay despite demands from the respondent. Their agreement contained an arbitration clause requiring any disputed amounts to be resolved by a three-person arbitration panel before legal action could be taken. The respondent filed a complaint, which the petitioner argued was premature as arbitration had not yet occurred per their agreement. The court ruled the complaint was premature as the agreement mandated arbitration as the means to resolve any disputes over invoice amounts.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 2

    FIESTA WORLD MALL CORPORATION, 

    Petitioner, vs.
    LINBERG PHILIPPINES, INC., Respondent.

    Case Digest on Alternative Dispute Resolution

    Facts

    This is a case involving arbitration where in the respondent,


    Linberg Philippines ,Inc.,  constructed the power plant in Lipa City
    at a cost of about P130,000,000.00., and subsequently started
    billing petitioner, Fiesta World Mall Corpotation. However,
    petitioner questioned the said amount and refused to pay despite
    respondent’s repeated demands. 

    Respondent filed a Complaint for Sum of Money against


    petitioner, which the later found it to be premature taking into
    consideration the arbitration clause as provided in their
    agreement, to wit: 

    If FIESTA WORLD disputes the amount specified by any invoice, it


    shall pay the undisputed amount on or before such date(s), and
    the disputed amount shall be resolved by arbitration of three (3)
    persons, one (1) by mutual choice, while the other two (2) to be
    each chosen by the parties themselves, within fourteen (14) days
    after the due date for such invoice and all or any part of the
    disputed amount paid to LINBERG shall be paid together with
    interest pursuant to Article XXV from the due date of the invoice. 

    Issue

    Whether or not the filing with the trial court of respondent’s


    complaint is premature. 
    Ruling

    Yes. 

    The Contract, quoted earlier, mandates that should petitioner


    dispute any amount of energy fees in the invoice and billings
    made by respondent, the same “shall be resolved by arbitration of
    three (3) persons, one (1) by mutual choice, while the other two
    (2) to be each chosen by the parties themselves.” The parties, in
    incorporating such agreement in their Contract, expressly
    intended that the said matter in dispute must first be resolved by
    an arbitration panel before it reaches the court. They made such
    arbitration mandatory. 

    It should be noted that in this jurisdiction, arbitration has been


    held valid and constitutional. And to brush aside such agreement
    providing for arbitration in case of disputes between the parties
    would be a step backward 

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