Transfield vs. Luzon Hydro
Transfield vs. Luzon Hydro
Transfield vs. Luzon Hydro
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RESOLUTION
TINGA, J :
p
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While the ICC case thus calls for a thorough review of the
facts which led to the delay in the construction of the project, as well
as the attendant responsibilities of the parties therein, in contrast, the
present petition puts in issue the propriety of drawing on the letters
of credit during the pendency of the arbitral case, and of course,
absent a final determination by the ICC Arbitral tribunal. Moreover,
as pointed out by TPI, it did not pray for the return of the proceeds
of the letters of credit. What it asked instead is that the said moneys
be placed in escrow until the final resolution of the arbitral case.
Meanwhile, in Civil Case No. 04-332, TPI no longer seeks the
issuance of a provisional relief, but rather the issuance of a writ of
execution to enforce the Third Partial Award.
DHaEAS
the instant petition includes Security Bank and ANZ Bank, the
banks sought to be enjoined from releasing the funds of the letters of
credit. The Court agrees with TPI that it would be ineffectual to ask
the ICC to issue writs of preliminary injunction against Security
Bank and ANZ Bank since these banks are not parties to the
arbitration case, and that the ICC Arbitral tribunal would not even be
able to compel LHC to obey any writ of preliminary injunction
issued from its end. 16(16) Civil Case No. 04-322, on the other
hand, logically involves TPI and LHC only, they being the parties to
the arbitration agreement whose partial award is sought to be
enforced.
ACDTcE
Yes
"Question 32
Is TPI entitled to any acceleration costs? TPI is
entitled to the reasonable costs TPI incurred after
Typhoon Zeb as a result of LHC's 5 February 1999
Notice to Correct. 23(23)
ARTICLE 35.
Tribunal had indeed ruled that LHC wrongfully drew upon the
securities, yet there is no order for the payment or return of the
proceeds of the said securities. In fact, Paragraph 2142, which is the
final paragraph of the Third Partial Award, reads:
2142.All other issues, including any issues as to
quantum and costs, are reserved to a future award. 28(28)
Order
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General
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Declarations
168.
xxx
xxx
3.
LHC is liable to repay TPI the face value of the
securities drawn claimed by TPI in respect of the drawdown
of the securities.
EIDTAa
xxx
xxx
xxx. 32(32)
Footnotes
The fact that the ICC Arbitral tribunal included the proceeds
of the securities shows that it intended to make a final
determination/award as to the said issue only in the Final Award and
not in the previous partial awards. This supports LHC's position that
when the Third Partial Award was released and Civil Case No.
04-332 was filed, TPI was not yet authorized to seek the issuance of
a writ of execution since the quantification of the amounts due to
TPI had not yet been settled by the ICC Arbitral tribunal.
Notwithstanding the fact that the amount of proceeds drawn on the
securities was not disputed the application for the enforcement of the
Third Partial Award was precipitately filed. To repeat, the
declarations made in the Third Partial Award do not constitute
orders for the payment of money.
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SO ORDERED.
Puno, Austria-Martinez, Callejo, Sr. and Chico-Nazario, JJ.,
concur.
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Id. at 1741-1742.
Final Award, id. at 1768-1815.
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Endnotes
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Motion for Leave to Set Case for Oral Argument, id. at 1747-1751.
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Id. at 1763-1767.
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Id. at 1823-1829.
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Rollo, p. 1270.
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Id. at 1267.
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Id. at 680.
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Id. at 661.
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Id. at 1685-1743.
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Id. at 1665-66.
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Rollo, p. 672.
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Rollo, p. 663.
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Id. at 1685-1703.
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Id. at 1703-1705.
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Id. at 1741.
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Id. at 1741-1742.
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