National Irrigation Administration v. Court of Appeals, CIAC, et al., 318 SCRA 255, G.R. No. 129169, November 17, 1999

• National Irrigation Administration v. Court of Appeals, CIAC, et al. , 318 SCRA 255, G.R. No. 129169, November 17, 1999 Facts:

Hydro Hydro Resourc Resources es Contrac Contractors tors Corpora Corporatio tion n (hereaf (hereafter ter HYDRO) HYDRO) was awarded awarded Contract MPI-C-2 for the construction of the main cii! wor"s of the Ma#at Rier Mu!tiPurpose Pro$ect% HYDRO su&stantia!!y comp!eted the wor"s under the contract and fina! acceptance &y 'I% HYDRO thereafter determined that it sti!! had an account receia&!e from 'I representin# the do!!ar rate differentia! of the price esca!ation for the contract%  fter unsuccessfu!!y unsuccessfu!!y pursuin# pursuin# its case with 'I HYDRO HYDRO fi!ed with the CIC a Re*uest for d$udication of the aforesaid c!aim% 'I *uestioned the $urisdiction of the CIC a!!e#in# !ac" of cause of action !aches and estoppe! estoppe! in iew of HYDRO+s a!!e#ed fai!ure to aai! of its ri#ht to su&mit the dispute to ar&itration within the prescri&ed period as proided in the contract%

Isse:

whether or not there was #rae a&use of discretion on the part of the CIC when it dismissed the petition%

has $urisdiction oer the controersy% !e"#: ,he CIC no #rae a&use of discretion% It has It is undis undispu puted ted that that the the contra contracts cts &etw &etween een HYDR HYDRO O and and 'I 'I conta containe ined d an ar&itration c!ause wherein they a#reed to su&mit to ar&itration any dispute &etween them that may arise &efore or after the termination of the a#reement% Conse*uent!y the c!aim of HYDRO hain# arisen from the contract is ar&itra&!e% It is undenia&!e undenia&!e that 'I a#reed to su&mit the dispute for ar&itration to the CIC% 'I throu#h its counse! actie!y participated in the ar&itration proceedin#s &y fi!in# an answer with counterc!aim as we!! as its comp!iance wherein it nominated ar&itrators to the proposed pane! participatin# in the de!i&erations on and the formu!ation of the ,erms of Refer Referenc ence e of the ar&it ar&itrat ration ion proce proceed edin in# # and and eami eaminin nin# # the docu documen ments ts su&mitted &y HYDRO after 'I as"ed for the ori#ina!s of the said documents%  s to the defenses defenses of !aches and prescription prescription they are eidentiary eidentiary in nature which cou!d not &e esta&!ished &y mere a!!e#ations in the p!eadin#s and must not &e reso!ed in a motion to dismiss% ,hose issues must &e reso!ed at the tria! of the case on the the merits merits where wherein in &oth &oth parti parties es wi!! wi!! &e #ien #ien amp!e amp!e oppor opportun tunity ity to proe proe their  their  respectie c!aims and defenses% In the instant case the issue of prescription and !aches cannot &e reso!ed on the &asis so!e!y of the comp!aint% ,he court may either #rant the motion to dismiss deny it or order the amendment of the p!eadin#%