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Puromines v. CA, 220 SCRA 281

FACTS:Puromines, Inc. (Puromines for brevity) and Makati Aro Tradin, Inc. (not

a !arty in t"is case) entered into acontract #it" !rivate res!ondent P"i$i!!

%rot"ers &ceanic, Inc. for t"e sa$e of !ri$$ed 'rea in bu$k. T"e Sa$es

Contract o. S*.+.+ !rovided, amon ot"ers an arbitration c$ause #"ic" states, t"us: -Any

dis!utes arisin under t"is contract s"a$$ be sett$ed by arbitration in ondon in

accordance #it" t"e Arbitration Act /*and any statutory amendment or

modification t"ereof. 0ac" !arty is to a!!oint an Arbitrator, and s"ou$d t"eybe

unab$e to aree, t"e decision of an 'm!ire a!!ointed by t"em to be fina$. T"e

Arbitrators and 'm!ire area$$ to be commercia$ men and resident in ondon. T"is

submission may be made a ru$e of t"e 1i" Court of 2ustice in 0n$and by eit"er

!arty.3 &n or about May 44, /++, t"e vesse$ M56 7i$iana 8imitrova7 $oaded on

board at 9u"ny, 'SS; a s"i!ment of *,* metric tons !ri$$ed 'rea in bu$k

com!$ete and in ood order and condition for trans!ort to I$oi$o andMani$a, to be

de$ivered to !etitioner. T"ree bi$$s of $adin #ere issued by t"e s"i!<aent in t"e

P"i$i!!ines,Maritime Factors Inc., name$y: %i$$ of adin o. dated May 4, /++

coverin , metric tons fordisc"are in Mani$a= %i$$ of adin o. 4 of even

date coverin >, metric tons for un$oadin in I$oi$o City= and%i$$ of adin o. ?,

a$so dated May 4, /++, coverin ,* metric tons $ike#ise for disc"are in

Mani$a. T"es"i!ment covered by %i$$ of adin o. 4 #as disc"ared in I$oi$o City

com!$ete and in ood order andcondition. 1o#ever, t"e s"i!ments covered by %i$$ of

adin os. and ? #ere disc"ared in Mani$a in badorder and condition, caked,

"ardened and $um!y, disco$ored and contaminated #it" rust and dirt. 8amaes#ereva$ued at P@+?,*@.4/ inc$udin additiona$ disc"arin e!enses. ConseBuent$y,

!etitioner fi$ed acom!$aint #it" t"e tria$ court for breac" of contract of carriae

aainst Maritime Factors, Inc. (#"ic" #as notinc$uded as res!ondent in t"is

!etition) as s"i!<aent in t"e P"i$i!!ines for t"e o#ners of t"e vesse$ M67i$iana

8imitrova,7 #"i$e !rivate res!ondent, P"i$i!! %rot"ers &ceanic, Inc., #as im!$eaded

as c"arterer of t"esaid vesse$ and !ro!er !arty to accord !etitioner com!$ete

re$ief. Ans#er to t"e com!$aint, #"i$e !rivateres!ondent fi$ed a motion to dismiss,

dated February /, /+/, on t"e rounds t"at t"e com!$aint states nocause of

action= t"at it #as !remature$y fi$ed= and t"at !etitioner s"ou$d com!$y #it" t"earbitration c$ause int"e sa$es contract. T"e motion to dismiss #as o!!osed by

!etitioner contendin t"e ina!!$icabi$ity of t"earbitration c$ause inasmuc" as t"e

cause of action did not arise from a vio$ation of t"e terms of t"e sa$escontract but

rat"er for c$aims of caro damaes #"ere t"ere is no arbitration areement. T"e

Court rendered a decision in favor of t"e !etitioner. 'nsatisfied #it" t"e

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 udment, t"e res!ondent a!!ea$ed and t"e $o#erDscourtDs decision #as reversed by t"e

a!!e$$ate court. 1ence t"is !etition.ISS'0:E"et"er t"e !"rase 7any dis!ute arisin

under t"is contract7 in t"e arbitration c$ause of t"e sa$es contractcovers a caro

c$aim aainst t"e vesse$ (o#ners and5or c"arterers) for breac" of contract of

carriae

;'I:9es. An eamination of t"e sa$es contract o. S*.+.+ s"o#s t"at it

is broad enou" to inc$ude t"e c$aimfor damaes arisin from t"e carriae and

de$ivery of t"e oods subect<matter t"ereof. Considerin t"at t"e!rivate

res!ondent #as one of t"e sinatories to t"e sa$es contract . . . a$$ !arties are

ob$ied to res!ect t"eterms and conditions of t"e said sa$es contract, inc$udin t"e

!rovision t"ereof on 7arbitration.7 Arbitration "asbeen "e$d va$id and

constitutiona$. 0ven before t"e enactment of ;e!ub$ic Act o. +G@, t"is Court

"ascountenanced t"e sett$ement of dis!utes t"rou" arbitration. T"e ru$e no# ist"at un$ess t"e areement issuc" as abso$ute$y to c$ose t"e doors of t"e courts

aainst t"e !arties, #"ic" areement #ou$d be void, t"ecourts #i$$ $ook #it" favor

u!on suc" amicab$e arranements and #i$$ on$y interfere #it" reat re$uctance

toantici!ate or nu$$ify t"e action of t"e arbitrator. Premises considered, #e u!"o$d

t"e va$idity and a!!$icabi$ityof t"e arbitration c$ause as stated in Sa$es Contract

o. S*.+.+ to t"e !resent dis!ute. E10;0F&;0,!etition is "ereby

8ISMISS08 and t"e decision of t"e court a quo is AFFI;M08.