CHRISTY NGALOY

LAW-2C

ARBITRAL AUTONOMY PRINCIPLE IN PHILIPPINE JURISPRUDENCE

Kristofer James E. Purisima

The root of Law is the interaction between individuals that necessitates the
regulation of legal relationships in order to realise a normative milieu where the Rule of
Law governs and is similarly applied to all individuals of the same class.
Under the Arbitral Autonomy it discuss the PIATCO case that Arbitral
proceedings can only be applied to the contracting parties because if the dispute
involves non-parties to the contract, splitting the proceedings in order to have arbitration
for the parties and trial for the non-contracting parties would result in multiplicity of
suits, duplicitous, proceedings, and unnecessary delay. Thus, the interest of justice
would be best served if the court hears and adjudicates the case in a single, complete
proceeding which the was properly the subject of arbitral proceedings as the contracting
parties to the MAIA IPT III Contract so stipulation, substituted its own judgment over and
above the parties clear and unequivocal intent. However, it should be borne in mind that
stipulations of contracting parties as regards to arbitral proceedings, should respected
by the judicial instrumentalities of jurisdiction. Anything short of respect towards a licit
stipulation as regards arbitral remedies will cause instability in commercial practice. By
taking cognizance of PIATCO the court invoked its expansive power of judicial review to
deprive a contracting party of its right to avail of arbitral proceedings pursuant to a valid
and binding arbitral agreement. As the Author noted that this doctrine has been an
instrument of jurisprudential regression. He further said, "Its is unfortunate that the
concept of transcendental importance has made the court envision itself as a
governmental messiah." It should not be forgotten that the purpose of an arbitral
agreement is to avoid the unnecessary danger that a contractual dispute might be
submitted to a forum that is hostile to the interest of one of the parties or that is
unfamiliar with the problem area involved.