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KOREA TECHNOLOGIES CO. LTD., LTD., VS. HON. ALBERTO A. LERMA, LE RMA, in his capacity as Prsi!in" #$!" %& Branch '() %& R"i%na* Tria* C%$rt %& M$ntin*$pa City Ci ty,, an! PACI+IC GENERAL STEEL MAN+ACTRING CORPORATION G.R. N%. -/(0-1 #an$ary 2, '330 +ACTS4 March 5, 1997 - PGSMC and KOGIES executed a Contract whereby KOGIES would et u! an "PG Cyl#nder Manu$actur#n% Plant #n Car&ona, Ca'#te( )he contract wa executed #n the Ph#l#!!#ne( *!r#l *!r#l 7, 1997 - the !art#e !art#e executed, executed, #n Korea Korea,, an *&end&ent *&end&ent $or Contract Contract +o( K"P-971 K"P-971 dated March March 5, 1997 a&end#n% the ter& o$ !ay&ent( October 1., 1997 - PGSMC entered #nto a Contract o$ "eae w#th /orth Pro!ert#e, Inc( 0/orth to houe the "PG &anu$actur#n% !lant( - Sube2uen Sube2uently, tly, the the &ach#ner# &ach#ner#e, e, e2u#!&e e2u#!&ent, nt, and $ac#l# $ac#l#t#e t#e $or $or the &anu$ac &anu$actur ture e o$ "PG cyl#nder cyl#nder were were h#!!ed, del#'ered, del#'ered, and #ntalled #n the Car&ona !lant( PGSMC !a#d KOGIES 3S4 1,.,( 6owe'er, %leaned $ro& the Cert#cate executed by the !art#e on 8anuary , 199, a$ter the #ntallat#on o$ the !lant, the #n#t#al o!erat#on could not be conducted a PGSMC encountered nanc#al d#:cult#e a;ect#n% the u!!ly o$ &ater#al, thu $orc#n% the !art#e to a%ree that KOGIES would be dee&ed to ha'e co&!letely co&!l#ed w#th the ter& and cond#t#on o$ the March 5, 1997 contract(
? 01 $or PhP .,5,@ and 0 and $or another PhP .,5,( Chec> Chec> were were d#honor d#honored ed $or the reaon reaon that !ay&ent !ay&ent to!!ed( to!!ed( KOGIES OGIES ent a de&and de&and letter letter to PGSMC PGSMC threaten#n% cr#&#nal act#on $or '#olat#on o$ Batas Pambansa Blg. Blg. #n cae o$ non!ay&ent( On the a&e date, the w#$e o$ PGSMC Pre#dent $axed a letter to KOGIES Pre#dent and co&!la#ned that not only d#d KOGIES del#'er a d#;erent brand o$ hydraul#c !re $ro& that a%reed u!on but #t had not del#'ered e'eral e2u#!&ent !art already !a#d $or( PGSMC re!l#ed that the two chec> #t #ued KOGIES were $ully $unded but the !ay&ent were to!!ed $or reaon !re'#ouly &ade >nown to KOGIES( PGSMC #n$or&ed KOGIES that PGSMC wa cancel#n% the#r Contract dated March 5, 1997 on the %round that KOGIES had altered the 2uant#ty and lowered the 2ual#ty o$ the &ach#ner#e and e2u#!&ent #t del#'ered to PGSMC( PGSMC led be$ore the O:ce o$ the Publ#c Proecutor an *:da'#t-Co&!la#nt $or Estafa a%a#nt Mr( 4ae 6yun Kan%, Pre#dent o$ KOGIES( KOGIES wrote PGSMC that #t could not un#laterally rec#nd the#r contract on &ere #&a%#ned '#olat#on by KOGIES( It alo #n#ted that the#r d#!ute hould be ettled by arb#trat#on a a%reed u!on #n *rt#cle 15, the arb#trat#on claue o$ the#r contract( PGSMC PGSMC a%a#n a%a#n wrote wrote KOGIES OGIES re#tera re#terat#n% t#n% the content content o$ the#r the#r !re'#ou !re'#ou letter( letter( )hen, )hen, KOGIES KOGIES #nt#tuted #nt#tuted an *!!l#cat#on $or *rb#trat#on be$ore the Korean Co&&erc#al *rb#trat#on Aoard 0KC*A #n Seoul, Korea !uruant to *rt( 15 o$ the Contract a a&ended( KOGIES OGIES led led a Co&!la Co&!la#nt #nt $or S!ec#c S!ec#c Per$or Per$or&anc &ance, e, a%a#nt a%a#nt PGSMC PGSMC be$ore be$ore the Munt#nlu Munt#nlu!a !a B)C( )he B)C %ranted a )BO wh#ch wa ube2uently extended( Ptiti%nr5s c%ntnti%n4 KOGIES KOGIES alle%ed that PGSMC had #n#t#ally ad&#tted that the chec> that were to!!ed were not $unded but later on cla#&ed that #t to!!ed !ay&ent o$ the chec> $or the reaon that the#r 'alue wa not rece#'ed a the $or&er alle%edly breached the#r contract by alter#n% the 2uant#ty and lower#n% the 2ual#ty o$ the &ach#nery and e2u#!&ent #ntalled #n the !lant and $a#led to &a>e the !lant o!erat#onal althou%h #t earl#er cert#ed to the contrary a hown #n a 8anuary , 199 Cert#cate( Cert#cate( KOGIES a'erred that PGSMC '#olated *rt( 15 o$ the#r Contract, a a&ended, by un#laterally rec#nd#n% the contract w#thout reort#n% to arb#trat#on( KOGIES KOGIES alo a>ed a>ed that PGSMC be retra#ned $ro& d#&antl#n% and tran$err#n% the &ach#nery and e2u#!&ent #ntalled #n the !lant wh#ch the latter threatened threatened to do on 8uly ., 199( KOGIES KOGIES den#ed #t had altered the 2uant#ty and lowered the 2ual#ty o$ the &ach#nery, e2u#!&ent, and $ac#l#t#e #t del#'ered to the !lant( It cla#&ed that #t had !er$or&ed all the underta>#n% under the contract and had already !roduced cert#ed a&!le o$ "PG cyl#nder( It a'erred that whate'er wa unn#hed wa PGSMC $ault #nce #t $a#led to !rocure raw &ater#al due to lac> o$ $und( KOGIES, rely#n% on Chung Fu Industries (Phils.), Inc. v. Court of Appeals, Appeals , #n#ted that the arb#trat#on claue wa w#thout 2uet#on 'al#d( Rsp%n!nt5s c%ntnti%n4 PGSMC led an o!!o#t#on to the )BO ar%u#n% that KOGIES wa not ent#tled to the )BO #nce *rt( 15, the arb#trat#on claue, claue, wa null and 'o#d $or be#n% a%a#nt !ubl#c !ol#cy a #t out the local court o$ ur#d#ct#on o'er the #ntant contro'ery(
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PGSMC led #t *nwer w#th Co&!ulory Countercla#& aert#n% that #t had the $ull r#%ht to d#&antle and tran$er the &ach#ner#e and e2u#!&ent becaue #t had !a#d $or the& #n $ull a t#!ulated #n the contract@ that KOGIES wa not ent#tled to the PhP 9,, co'ered by the chec> $or $a#l#n% to co&!letely #ntall and &a>e the !lant o!erat#onal@ and that KOGIES wa l#able $or da&a%e a&ount#n% to PhP .,5, $or alter#n% the 2uant#ty and lower#n% the 2ual#ty o$ the &ach#ner#e and e2u#!&ent( Moreo'er, PGSMC a'erred that #t ha already !a#d PhP ,57,9 #n rent 0co'er#n% 8anuary to 8uly 199 to /orth and #t wa not w#ll#n% to $urther houlder the cot o$ rent#n% the !re&#e o$ the !lant con#der#n% that the "PG cyl#nder &anu$actur#n% !lant ne'er beca&e o!erat#onal( RTC DECISION4 *$ter the !art#e ub&#tted the#r Me&oranda, B)C #ued an Order deny#n% the a!!l#cat#on $or a wr#t o$ !rel#&#nary #nunct#on, reaon#n% that PGSMC had !a#d KOGIES 3S4 1,.,, the 'alue o$ the &ach#ner#e and e2u#!&ent a hown #n the contract uch that KOGIES no lon%er had !ro!r#etary r#%ht o'er the&( *nd nally, the B)C held that *rt( 15 o$ the Contract a a&ended wa #n'al#d a #t tended to out the tr#al court or any other court ur#d#ct#on o'er any d#!ute that &ay ar#e between the !art#e( KOGIES !rayer $or an #nunct#'e wr#t wa den#ed( *$ter KOGIES led a Su!!le&ental Me&orandu& w#th Mot#on to 4#&# anwer#n% PGSMC &e&orandu& o$ 8uly , 199 and ee>#n% d#&#al o$ PGSMC countercla#&, KOGIES, led #t Mot#on $or Becon#derat#on o$ the Order deny#n% #t a!!l#cat#on $or an #nunct#'e wr#t( In the &eant#&e, PGSMC led a Mot#on $or In!ect#on o$ )h#n% to deter&#ne whether there wa #ndeed alterat#on o$ the 2uant#ty and lower#n% o$ 2ual#ty o$ the &ach#ner#e and e2u#!&ent, and whether thee were !ro!erly #ntalled( KOGIES o!!oed the &ot#on !o#t#n% that the 2uer#e and #ue ra#ed #n the &ot#on $or #n!ect#on $ell under the co'era%e o$ the arb#trat#on claue #n the#r contract( B)C #ued an Order 01 %rant#n% PGSMC &ot#on $or #n!ect#on@ 0 deny#n% KOGIES &ot#on $or recon#derat#on o$ the 8uly , 199 B)C Order@ and 0 deny#n% KOGIES &ot#on to d#&# PGSMC co&!ulory countercla#& a thee countercla#& $ell w#th#n the re2u##te o$ co&!ulory countercla#&( KOGIES led an 3r%ent Mot#on $or Becon#derat#on o$ the B)C Order %rant#n% #n!ect#on o$ the !lant and deny#n% d#&#al o$ PGSMC co&!ulory countercla#&( )en day a$ter, w#thout wa#t#n% $or the reolut#on o$ ur%ent &ot#on $or recon#derat#on, KOGIES led be$ore C* a !et#t#on $or cert#orar# ee>#n% annul&ent o$ the B)C Order and !ray#n% $or the #uance o$ wr#t o$ !roh#b#t#on, &anda&u, and !rel#&#nary #nunct#on to eno#n the B)C and PGSMC $ro& #n!ect#n%, d#&antl#n%, and tran$err#n% the &ach#ner#e and e2u#!&ent #n the Car&ona !lant, and to d#rect the B)C to en$orce the !ec#c a%ree&ent on arb#trat#on to reol'e the d#!ute( In the &eant#&e, the B)C den#ed KOGIES ur%ent &ot#on $or recon#derat#on and d#rected the Aranch Sher#; to !roceed w#th the #n!ect#on o$ the &ach#ner#e and e2u#!&ent #n the !lant on October , 199( )herea$ter, KOGIES led a Su!!le&ent to the Pet#t#on ##n$or&#n% the C* about the October 19, 199 B)C Order( It alo re#terated #t !rayer $or the #uance o$ the wr#t o$ !roh#b#t#on, &anda&u and !rel#&#nary #nunct#on wh#ch wa not acted u!on by the C*( KOGIES aerted that the Aranch Sher#; d#d not ha'e the techn#cal ex!ert#e to acerta#n whether or not the &ach#ner#e and e2u#!&ent con$or&ed to the !ec#cat#on #n the contract and were !ro!erly #ntalled( On +o'e&ber 11, 199, the Aranch Sher#; led h# Sher#; Be!ort nd#n% that the enu&erated &ach#ner#e and e2u#!&ent were not $ully and !ro!erly #ntalled( CA DECISION4 C* a:r&ed B)C and d#&#ed the !et#t#on $or cert#orar# led by KOGIES( )he C* $ound that the B)C d#d not %ra'ely abue #t d#cret#on #n #u#n% the aa#led 8uly , 199 and Se!te&ber 1, 199 Order( - C* reaoned that KOGIES content#on that the total contract !r#ce $or 3S4 1,5, wa $or the whole !lant and had not been $ully !a#d wa contrary to the nd#n% o$ the B)C that PGSMC $ully !a#d the !r#ce o$ 3S4 1,.,, wh#ch wa $or all the &ach#ner#e and e2u#!&ent( *ccord#n% to the C*, th# deter&#nat#on by the B)C wa a $actual nd#n% beyond the a&b#t o$ a !et#t#on $or cert#orar#( - the C* a%reed w#th the lower court that an arb#trat#on claue wh#ch !ro'#ded $or a nal deter&#nat#on o$ the le%al r#%ht o$ the !art#e to the contract by arb#trat#on wa a%a#nt !ubl#c !ol#cy( ISSE6S4 /O+ )6E *BAI)B*)IO+ C"*3SE I+ *B)IC"E 15 O< )6E CO+)B*C) AE)/EE+ )6E P*B)IES IS DOI4
Artic* -( %& th C%ntract 4 +o, the *rb#trat#on Claue #n *rt 15 # 'al#d( *rt#cle 15( Arbitration(*ll d#!ute, contro'er#e, or d#;erence wh#ch &ay ar#e between the !art#e, out o$ or #n relat#on to or #n connect#on w#th th# Contract or $or the breach thereo$, hall nally be ettled by arb#trat#on #n Seoul, Korea #n accordance w#th the Co&&erc#al *rb#trat#on Bule o$ the Korean Co&&erc#al *rb#trat#on Aoard( Th a7ar! rn!r! 8y th ar8itrati%n9s: sha** 8 ;na* an! 8in!in" $p%n 8%th partis c%ncrn!( Etabl#hed #n th# ur#d#ct#on # the rule that the law o$ the !lace where the contract # &ade %o'ern( e! loci contractus( )he contract #n th# cae wa !er$ected here #n the Ph#l#!!#ne( )here$ore, our law ou%ht to %o'ern( +onethele, *rt( .. o$ the C#'#l Code anct#on the 'al#d#ty o$ &utually a%reed arb#tral claue or the nal#ty and b#nd#n% e;ect o$ an arb#tral award( *rt( .. !ro'#de, Any stip$*ati%n that th ar8itrat%rs a7ar! %r !cisi%n sha** 8 ;na*, is
*rt( , 9, and . abo'ec#ted re$er to #ntance where a co&!ro&#e or an arb#tral award, a a!!l#ed to *rt( .. !uruant to *rt( ., &ay be 'o#ded, rec#nded, or annulled, but thee would not den#%rate the nal#ty o$ the arb#tral award( )he arb#trat#on claue wa &utually and 'oluntar#ly a%reed u!on by the !art#e( It ha not been hown to be contrary to any law, or a%a#nt &oral, %ood cuto&, !ubl#c order, or !ubl#c !ol#cy( )here ha been no how#n% that the !art#e ha'e not dealt w#th each other on e2ual $oot#n%( /e nd no reaon why the arb#trat#on claue hould not be re!ected and co&!l#ed w#th by both !art#e( In "on#ales v. Clima! $ining td(, we held that ub&##on to arb#trat#on # a contract and that a claue #n a contract !ro'#d#n% that all &atter #n d#!ute between the !art#e hall be re$erred to arb#trat#on # a contract( *%a#n #n %el $onte Corporation&'A v. Court of Appeals, we l#>ew#e ruled that Fthe !ro'##on to ub&#t to arb#trat#on any d#!ute ar##n% there$ro& and the relat#onh#! o$ the !art#e # !art o$ that contract and # #tel$ a contract( Ar8itrati%n c*a$s n%t c%ntrary t% p$8*ic p%*icy
)he arb#trat#on claue wh#ch t#!ulate that the arb#trat#on &ut be done #n Seoul, Korea #n accordance w#th the Co&&erc#al *rb#trat#on Bule o$ the KC*A, and that the arb#tral award # nal and b#nd#n%, # not contrary to !ubl#c !ol#cy( PGSMC has r=!is t% pr%tct its intrsts
)hu, baed on the $ore%o#n% $eature o$ B* 95, PGSMC &ut ub&#t to the $ore#%n arb#trat#on a #t bound #tel$ throu%h the ubect contract( /h#le #t &ay ha'e &#%#'#n% on the $ore#%n arb#trat#on done #n Korea by the KC*A, #t ha a'a#lable re&ed#e under B* 95( It #nteret are duly !rotected by the law wh#ch re2u#re that the arb#tral award that &ay be rendered by KC*A &ut be conr&ed here by the B)C be$ore #t can be en$orced( /#th our d#2u##t#on abo'e, !et#t#oner # correct #n #t content#on that an arb#trat#on claue, t#!ulat#n% that the arb#tral award # nal and b#nd#n%, doe not out our court o$ ur#d#ct#on a the #nternat#onal arb#tral award, the award o$ wh#ch # not abolute and w#thout exce!t#on, # t#ll ud#c#ally re'#ewable under certa#n cond#t#on !ro'#ded $or by the 3+CI)B*" Model "aw on IC* a a!!l#ed and #ncor!orated #n B* 95(
<#nally, #t &ut be noted that there # noth#n% #n the ubect Contract wh#ch !ro'#de that the !art#e &ay d#!ene w#th the arb#trat#on claue(
ni*atra* rscissi%n i=pr%pr an! i**"a*
6a'#n% ruled that the arb#trat#on claue o$ the ubect contract # 'al#d and b#nd#n% on the !art#e, and not contrary to !ubl#c !ol#cy@ cone2uently, be#n% bound to the contract o$ arb#trat#on, a !arty &ay not un#laterally rec#nd or ter&#nate the contract $or whate'er caue w#thout rt reort#n% to arb#trat#on(
Iss$ %n %7nrship %& p*ant pr%pr &%r ar8itrati%n -
RTC has intri= >$ris!icti%n t% pr%tct th r i"hts %& th partis
*nent the 8uly , 199 Order deny#n% the #uance o$ the #nunct#'e wr#t !a'#n% the way $or PGSMC to d#&antle and tran$er the e2u#!&ent and &ach#ner#e, we nd #t to be #n order con#der#n% the $actual &#l#eu o$ the #ntant cae(
<#rtly, wh#le the #ue o$ the !ro!er #ntallat#on o$ the e2u#!&ent and &ach#ner#e &#%ht well be under the !r#&ary ur#d#ct#on o$ the arb#tral body to dec#de, yet the B)C under Sec( o$ B* 95 ha ur#d#ct#on to hear and %rant #nter#& &eaure to !rotect 'eted r#%ht o$ the !art#e(
*rt( 170 o$ the 3+CI)B*" Model "aw on IC* dene an #nter#& &eaure o$ !rotect#on a? Article *. Po+er of arbitral tribunal to order interim measures xxx xxx xxx 0 *n intri= =as$r # any te&!orary &eaure, whether #n the $or& o$ an award or #n another $or&, by wh#ch, at any t#&e !r#or to the #uance o$ the award by wh#ch the d#!ute # nally dec#ded, the arb#tral tr#bunal order a !arty to? (a) Ma#nta#n or retore the tatu 2uo !end#n% deter&#nat#on o$ the d#!ute@ (b) )a>e act#on that would !re'ent, or re$ra#n $ro& ta>#n% act#on that # l#>ely to caue, current or #&&#nent har& or !reud#ce to th e arb#tral !roce #tel$@ (c) Pro'#de a &ean o$ !reer'#n% aet out o$ wh#ch a ube2uent award &ay be at#ed@ or (d) Preer'e e'#dence that &ay be rele'ant and &ater#al to the reolut#on o$ the d#!ute( *rt( 17 8 o$ 3+CI)B*" Model "aw on IC* alo %rant court !ower and ur#d#ct#on to #ue #nter#& &eaure? Article * . Court&ordered interim measures * court hall ha'e the a&e !ower o$ #u#n% an #nter#& &eaure #n relat#on to arb#trat#on !roceed#n%, #rre!ect#'e o$ whether the#r !lace # #n the terr#tory o$ th# State, a #t ha #n relat#on to !roceed#n% #n court( )he court hall exerc#e uch !ower #n accordance w#th #t own !rocedure #n con#derat#on o$ the !ec#c $eature o$ #nternat#onal arb#trat#on(
It # thu beyond ca'#l that the B)C ha author#ty and ur#d#ct#on to %rant #nter#& &eaure o$ !rotect#on(
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Secondly, con#der#n% that the e2u#!&ent and &ach#ner#e are #n the !oe#on o$ PGSMC, #t ha the r#%ht to !rotect and !reer'e the e2u#!&ent and &ach#ner#e #n the bet way #t can( Con#der#n% that the "PG !lant wa non-o!erat#onal, PGSMC ha the r#%ht to d#&antle and tran$er the e2u#!&ent and &ach#ner#e e#ther $or the#r !rotect#on and !reer'at#on or $or the better way to &a>e %ood ue o$ the& wh#ch # #neluctably w#th#n the &ana%e&ent d#cret#on o$ PGSMC(
)h#rdly, and o$ %reater #&!ort # the reaon that &a#nta#n#n% the e2u#!&ent and &ach#ner#e #n /orth !ro!erty # not to the bet #nteret o$ PGSMC due to the !roh#b#t#'e rent wh#le the "PG !lant a et-u! # not o!erat#onal( PGSMC wa lo#n% PhP,5= a &onthly rental or PhP(7M $or 199 alone w#thout con#der#n% the 1H annual rent #ncre&ent #n &a#nta#n#n% the !lant(
<#$th, KOGIES # not unutly !reud#ced a #t ha already been !a#d a ubtant#al a&ount baed on the contract( Moreo'er, KOGIES # a&!ly !rotected by the arb#tral act#on #t ha #nt#tuted be$ore the KC*A, the award o$ wh#ch can be en$orced #n our ur#d#ct#on throu%h the B)C( Ae#de, by our dec##on, PGSMC # co&!elled to ub&#t to arb#trat#on !uruant to the 'al#d arb#trat#on claue o$ #t contract w#th KOGIES(
DISPOSITIVE PORTION4 ?HERE+ORE, th# !et#t#on # PARTL@ GRANTED, #n that? 01 )he May , C* 4ec##on #n C*-G(B( SP +o( .9.9 # REVERSED and SET ASIDE@ 0 )he Se!te&ber 1, 199 and October 19, 199 B)C Order #n C#'#l Cae +o( 9-117 are REVERSED and SET ASIDE@ 0 )he !art#e are hereby ORDERED to ub&#t the&el'e to the arb#trat#on o$ the#r d#!ute and d#;erence ar##n% $ro& the ubect Contract be$ore the KC*A@ and 0. PGSMC # hereby ALLO?ED to d#&antle and tran$er the e2u#!&ent and &ach#ner#e, #$ #t had not done o, and ORDERED to !reer'e and &a#nta#n the& unt#l the nal#ty o$ whate'er arb#tral award # %#'en #n the arb#trat#on !roceed#n%( +o !ronounce&ent a to cot( SO ORDERED.
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DISCSSION4 RA '0( inc%rp%rat! th NCITRAL M%!* *a7 t% 7hich 7 ar a si"nat%ry Con'ent#on on 8une 1, 195, the Ph#l#!!#ne co&&#tted #tel$ to be bound by the Model "aw( /e ha'e e'en #ncor!orated the Model "aw #n Be!ubl#c *ct +o( 0B* 95, otherw#e >nown a the *lternat#'e 4#!ute Beolut#on *ct o$ . ent#tled *n *ct to Int#tut#onal#e the 3e o$ an *lternat#'e 4#!ute Beolut#on Syte& #n the Ph#l#!!#ne and to Etabl#h the O:ce $or *lternat#'e 4#!ute Beolut#on, and $or Other Pur!oe, !ro&ul%ated on *!r#l , .( Sec( 19 and o$ Cha!ter . o$ the Model "aw are the !ert#nent !ro'##on? CHAPTER INTERNATIONAL COMMERCIAL ARBITRATION SEC( 19( *do!t#on o$ the Model "aw on Internat#onal Co&&erc#al *rb#trat#on( Internat#onal co&&erc#al arb#trat#on hall be %o'erned by the Model "aw on Internat#onal Co&&erc#al *rb#trat#on 0the Model "aw ado!ted by the 3n#ted +at#on Co&&##on on Internat#onal )rade "aw on 8une 1, 195 03n#ted +at#on 4ocu&ent *J.J17 and reco&&ended $or enact&ent by the General *e&bly #n Beolut#on +o( .J7 a!!ro'ed on 4ece&ber 11, 195, co!y o$ wh#ch # hereto attached a *!!end#x *( SEC( ( Inter!retat#on o$ Model "aw(In #nter!ret#n% the Model "aw, re%ard hall be had to #t #nternat#onal or#%#n and to the need $or un#$or&#ty #n #t #nter!retat#on and reort &ay be &ade to the tra'aux !re!arator#e and the re!ort o$ the Secretary General o$ the 3n#ted +at#on Co&&##on on Internat#onal )rade "aw dated March 5, 195 ent#tled, Internat#onal Co&&erc#al *rb#trat#on? *nalyt#cal Co&&entary on 4ra$t )rade #dent#ed by re$erence nu&ber *JC+( 9J=.( /h#le B* 95 wa !aed only #n ., #t nonethele a!!l#e #n the #ntant cae #nce #t # a !rocedural law wh#ch ha a retroact#'e e;ect( "#>ew#e, KOGIES led #t a!!l#cat#on $or arb#trat#on be$ore the KC*A on 8uly 1, 199 and #t # t#ll !end#n% becaue no arb#tral award ha yet been rendered( )hu, B* 95 # a!!l#cable to the #ntant cae( /ell-ettled # the rule that !rocedural law are contrued to be a!!l#cable to act#on !end#n% and undeter&#ned at the t#&e o$ the#r !aa%e, and are dee&ed retroact#'e #n that ene and to that extent( * a %eneral rule, the retroact#'e a!!l#cat#on o$ !rocedural law doe not '#olate any !eronal r#%ht becaue no 'eted r#%ht ha yet attached nor ar#en $ro& the&( *&on% the !ert#nent $eature o$ B* 95 a!!ly#n% and #ncor!orat#n% the 3+CI)B*" Model "aw are the $ollow#n%? 01 )he B)C &ut re$er to arb#trat#on #n !ro!er cae 0
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