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JORGE GONZALES & PANEL OF ARBITRATORS v. CLIMAX MINING LTD.,CLIMAX-ARIMCO MINING CORP., & AUSTRALASIAN PHILIPPINE MINING INC.,16195, February 28, 2005

J. Tinga

FACTS

Petitioner Jorge Gonzale, a !lai" o#ner o$ "ineral %e&oit lo!ate% #it'int'e A%%en%u" Area o$ (n)uen!e in *i%i&io, in t'e &ro+in!e o$ uirino an% -ue+aiz!aya, entere% into a !o/&ro%u!tion, oint +enture an%or &ro%u!tion/'aring letter/agree"ent %eignate% a t'e ay 13, 1984 etter o$ (ntent #it' Geo&'ili&&ine (n!.,an% (n"e t%. 7n%er ai% agree"ent &etitioner grante% bot' !o"&anie!olle!ti+ely, t'e e!lui+e rig't to e&lore an% ur+ey "ining !lai" $or a &erio% o$6 "ont' #it'in #'i!' t'e latter !oul% tae an o&erating agree"ent on t'e "ining!lai" an%or %e+elo&, o&erate, "ine an% ot'er#ie e&loit t'e "ining !lai" an%"aret any an% all "ineral t'at "ay be %eri+e% t'ere$ro". :n February 28, 1989,t'e a"e &artie to ai% etter o$ (ntent renegotiate% t'e a"e #'ereby t'ee&loration o$ t'e "ining !lai" #a eten%e% $or anot'er &erio% o$ t'ree year. :nar!' 9, 1991, Petitioner, toget'er #it' t'e a"e &artie in t'e ;rt a%%en%u" an%

Ari"!o ining Cor&oration an% Au"e P'ili&&ine (n!. igne% anot'er A%%en%u"!ontra!t #'i!' tate% t'at Ari"!o ining Cor&. #oul% a&&ly to t'e Go+ern"ent o$t'e P'ili&&ine $or &er"iion to "ine t'e !lai" a t'e Go+ern"ent. :n-o+e"ber 8, 1999 Petitioner Gonzale ;le% be$ore t'e Panel o$ Arbitrator, ?egion((, ine an% Geo!ien!e @uereau o$ t'e *e&art"ent o$ n+iron"ent an% -atural?eour!e a !o"&laint againt Cli"a/Ari"!o, Cli"a an% AP( eeing t'e%e!laration o$ nullity or ter"ination o$ t'e A%%en%u" Contra!t, t'e FTAA, t'e:&erating an% Finan!ial A!!o"o%ation Contra!t, t'e aign"ent, a!!eionagree"ent, an% t'e "e"oran%u" o$ agree"ent. Be $urt'er &raye% $or anun&e!i;e% a"ount o$ a!tual an% ee"&lary %a"age &lu attorney

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(SS7S1. E'et'er t'ere #a $oru"/'o&&ing on t'e &art o$ re&on%ent $or t'eir

$ailure to %i!loe to t'e Court t'eir ;ling o$ a Petition to !o"&el $orarbitration be$ore t'e ?TC o$ aati City, #'i!' i !urrently &en%ing.

2. E'et'er !ounel $or re&on%ent Cli"a 'a% aut'ority to ;le t'e &etition

$or !ertiorari be$ore t'e CA.. E'et'er t'e !o"&laint ;le% by t'e &etitioner raie a "ining %i&ute o+er

#'i!' t'e Panel o$ Arbitrator 'a uri%i!tion.3. E'et'er t'e %i&ute bet#een t'e &artie 'oul% be broug't $or arbitration

un%er ?A -o. 846.

?7(-G

1. #'et'er or not t'ere #a $oru" 'o&&ing !o""itte% by re&on%ent

(t !annot be %eter"ine% $ro" &etitioner

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"ining %i&ute #'i!' raie t'e uetion o$ $a!t or "atter reuiring t'e

a&&li!ation o$ te!'nologi!al no#le%ge an% e&erien!e. T'e +ali%ity o$ t'e

!ontra!t !annot be ube!t o$ arbitration &ro!ee%ing. Allegation o$ $rau%

an% %ure in t'e ee!ution o$ a !ontra!t are "atter #it'in t'e uri%i!tion o$

t'e or%inary !ourt o$ la#. T'ee uetion are legal in nature an% reuire t'e

a&&li!ation an% inter&retation o$ la# an% uri&ru%en!e #'i!' i ne!earilya u%i!ial $un!tion.

3. E'et'er t'e %i&ute bet#een t'e &artie 'oul% be broug't $or arbitration

un%er ?A -o. 846.T'e SC agree% #it' t'e &etitioner t'at t'e !ae 'oul% not be broug't

un%er t'e a"bit o$ t'e arbitration la#, but $or %iHerent reaon. T'e uetion

o$ +ali%ity o$ t'e !ontra!t !ontaining t'e agree"ent to ub"it to arbitration

#ill aHe!t t'e a&&li!ability o$ t'e arbitration !laue itel$. A &arty !annot rely

on t'e !ontra!t an% !lai" rig't or obligation un%er it an% at t'e a"e ti"e

i"&ugn it eiten!e or +ali%ity. (n%ee%, t'e litigant are enoine% $ro" taing

!onitent &oition. T'e !o"&laint 'oul% 'a+e been ;le% be$ore t'e regular!ourt a it in+ol+e iue #'i!' are u%i!ial in nature.

EB?F:?, t'e Petition $or ?e+ie# in Certiorari un%er ?ule 35 #a *-(*

an% t'e or%er o$ t'e Panel o$ Arbitrator #ere ST AS(* #it' !ot againt

&etitioner.