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LAPERAL
REALTY
CORPORATIONG.R.
No.
135362December 13, 1999(320 SCRA 610)
FACTS:
Petitioner Salas Jr. and Respondent Laperal
Realty Corporation entered into anagreement
for the latter to develop and provide complete
construction services on formersland. Petitioner
executed a special power of attorney in favor of
Respondent Corporation toexercise general
control, supervision and management of the
sale of his land. On June 10,1989 Petitioner left
his home for a business trip in Nueva Ecija but
never returned again.
Petitioners wife filed a petition for presumptive
death of her husba
nd after seven years of absence. The trial court
granted her petition.On the otherhand,
Respondent Corporation already subdivided the
property owned by SalasJr. to different lot
buyers. The heirs of Salas Jr. filed in the RTC of
Lipa City a Complaint for nullity of sale,
reconveyance, cancellation of contract and
damages against Laperal RealtyCorporation and
lot buyers. Laperal Realty Corporation filed a
motion to dismiss on theground that the heirs
of Salas Jr. failed to submit their grievance to
arbitration as stated inthe agreement executed
by Salas Jr. and Laperal Realty Corporation. The
lot buyers alsofiled a motion to dismiss based
on the same ground.
HELD:
(1) A submission to arbitration is a contract. As
such, the Agreement, containing thestipulation
on arbitration, binds the parties thereto, as well
as their assigns and heirs. Butonly they.
Petitioners, as heirs of Salas Jr., and respondent
Laperal Realty Corporation arecertainly bound
by the agreement.(2) The arbitration agreement
is valid, binding and enforceable and not
contrary to publicpolicy so much so when there
obtains a written provision for arbitration which
is not compliedwith, the trial court should
suspend the proceedings and order the parties
to proceed toarbitration in accordance with the
terms of their agreement. However it would be
in theinterest of justice if the trial court hears
the complaint against all herein respondents
andadjudicates petitioners rights as against
theirs in a singles and complete proceeding.The
petition is granted the trial court must proceed
with the hearing of the case
BF CORPORATION V. CA, 288 SCRA 267 (1998)
Facts:
Petitioner
and
respondent
Shangri-la
Properties,
Inc.
entered
into
an
agreementwhereby the latter engaged the
former to construct the main structure of the
"EDSA PlazaProject," a shopping mall complex
in Mandaluyong. Petitioner incurred delay in
the constructionwork that SPI considered as
"serious and substantial."
ISSUE:
(1) Whether or not the arbitration clause in the
agreement between Salas Jr. andLaperal Realty
binds the heirs of the former.(2) Whether or not
the trial court must dismiss the case or must
hear the casesimultaneously.
Held:
Yes. The rule that the special civil action of
certiorari may not be invoked as a substitute
for the remedy of appeal. The Court has
likewise ruled that " certiorari will not be issued
to cure errors in proceedings or correct
erroneous conclusions of law or fact. As long as
a court acts within its jurisdiction, any alleged
errors committed in the exercise of its
jurisdiction will amount to nothing more than
errors of judgment which are reviewable by
timely appeal and not by a special civil action of
certiorari .