Common use of Arbitration Committee Clause in Contracts

Arbitration Committee. All disputes, controversies or differences, which may arise between the parties herein, out of or in relation to or in connection with this Agreement, or for breach thereof shall be settled by the Construction Industry Arbitration Commission (CIAC) which shall have original and exclusive jurisdiction over the aforementioned disputes.[5] On November 20, 2009, Atty. ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, the counsel of Federal, submitted a letter to the CIAC manifesting that Federal agreed to arbitration and sought an extension of 15 days to file its answer, which request the CIAC granted. On December 16, 2009, Atty. ▇▇▇▇▇▇ filed his withdrawal of appearance stating that Federal had meanwhile engaged another counsel.[6] Federal, represented by new counsel (▇▇▇▇▇▇▇, ▇▇▇▇▇, ▇▇▇▇▇▇▇▇ and ▇▇▇▇▇▇▇▇ Law Office), moved to dismiss the case on the ground that CIAC had no jurisdiction over the case inasmuch as the Contract of Service between Federal and Power had been a mere draft that was never finalized or signed by the parties. Federal contended that in the absence of the agreement for arbitration, the CIAC had no jurisdiction to hear and decide the case.[7] On February 8, 2010, the CIAC issued an order setting the case for hearing, and directing that Federal’s motion to dismiss be resolved after the reception of evidence of the parties.[8] Federal did not thereafter participate in the proceedings until the CIAC rendered the Final Award dated May 12, 2010,[9] disposing: In summary: Respondent Federal Builders, Inc. is hereby ordered to pay claimant Power Factors, Inc. the following sums: 1. Unpaid balance on the original contract P4,276,6 14.75; 2. Unpaid balance on change order nos. 1, 2, 3, 4, 5, 6, 7, 8, & 9 3,006,97 0.32; 3. Interest to May 13, 2010 1,686,14 9.94; 4. Attorney’s Fees 250,000. 00; 5. Cost of Arbitration 149,503. 86; The foregoing amount shall earn legal interest at the rate of 6% per annum from the date of this Final Award until this award becomes final and executory, Claimant shall then be entitled to 12% per annum until the entire amount is fully satisfied by Respondent. Federal appealed the award to the CA insisting that the CIAC had no jurisdiction to hear and decide the case; and that the amounts thereby awarded to Power lacked legal and factual bases. On August 12, 2013, the CA affirmed the CIAC’s decision with modification as to the amounts due to Power,[10] viz.: WHEREFORE, the CIAC Final Award dated 12 May 2010 in CIAC Case No. 31-2009 is hereby AFFIRMED with MODIFICATION. As modified, FEDERAL BUILDERS, INC. is ordered to pay POWER FACTORS, INC. the following: 1. Unpaid balance on the original contract P4,276,6 14.75; 2. Unpaid balance on change orders 2,864,11 3.32; 3. Attorney’s Fees 250,000. 00; 4. Cost of Arbitration 149,503.

Arbitration Committee. All disputes, controversies or differences, which may arise between the parties herein, out of or in relation to or in connection with this Agreement, or for breach thereof shall be settled by the Construction Industry Arbitration Commission (CIAC) which shall have original and exclusive jurisdiction over the aforementioned disputes.[5] On November 20, 2009, Atty. ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, the counsel of Federal, submitted a letter to the CIAC manifesting that Federal agreed to arbitration and sought an extension of 15 days to file its answer, which request the CIAC granted. On December 16, 2009, Atty. ▇▇▇▇▇▇ filed his withdrawal of appearance stating that Federal had meanwhile engaged another counsel.[6] Federal, represented by new counsel (▇▇▇▇▇▇▇, ▇▇▇▇▇, ▇▇▇▇▇▇▇▇ and ▇▇▇▇▇▇▇▇ Law Office), moved to dismiss the case on the ground that CIAC had no jurisdiction over the case inasmuch as the Contract of Service between Federal and Power had been a mere draft that was never finalized or signed by the parties. Federal contended that in the absence of the agreement for arbitration, the CIAC had no jurisdiction to hear and decide the case.[7] On February 8, 2010, the CIAC issued an order setting the case for hearing, and directing that Federal’s 's motion to dismiss be resolved after the reception of evidence of the parties.[8] Federal did not thereafter participate in the proceedings until the CIAC rendered the Final Award dated May 12, 2010,[9] disposing: In summary: Respondent Federal Builders, Inc. is hereby ordered to pay claimant Power Factors, Inc. the following sums: 1. Unpaid balance on the original contract P4,276,6 14.75;contract 2. Unpaid balance on change order nos. 1, 2, 3, 4, 5, 6, 7, 8, & 9 3,006,97 0.32;9 3. Interest to May 13, 2010 1,686,14 9.94P4,276,614.75; 3,006,970.32; 1,686,149.94; 4. Attorney’s Fees 250,000. 00; 5. Cost of Arbitration 149,503. 86; The foregoing amount shall earn legal interest at the rate of 6% per annum from the date of this Final Award until this award becomes final and executory, Claimant shall then be entitled to 12% per annum until the entire amount is fully satisfied by Respondent. Federal appealed the award to the CA insisting that the CIAC had no jurisdiction to hear and decide the case; and that the amounts thereby awarded to Power lacked legal and factual bases. On August 12, 2013, the CA affirmed the CIAC’s decision with modification as to the amounts due to Power,[10] viz.: WHEREFORE, the CIAC Final Award dated 12 May 2010 in CIAC Case No. 31-2009 is hereby AFFIRMED with MODIFICATION. As modified, FEDERAL BUILDERS, INC. is ordered to pay POWER FACTORS, INC. the following: 1. Unpaid balance on the original contract P4,276,6 14.75; 2. Unpaid balance on change orders 2,864,11 3.32; 3. Attorney’s Fees 250,000. 00; 4. Cost of Arbitration 149,503.