Philippine Gov't v PIATCO: Setting Aside Arbitral Award for Airport Terminal Construction Dispute

The Government of the Republic of the Philippines (GOP) applied to the High Court of Singapore to set aside a partial arbitral award in favor of Philippine International Air Terminals Co, Inc (PIATCO) concerning a dispute over the construction of a third terminal at Ninoy Aquino International Airport in Manila. The dispute arose from concession agreements, which GOP later claimed were null and void. PIATCO initiated arbitration, and GOP challenged the tribunal's jurisdiction. The High Court, Judith Prakash J, dismissed GOP's application, finding no breach of natural justice or exceeding the scope of submission to arbitration.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Application dismissed with costs.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Singapore court dismisses the Philippine government's application to set aside a partial arbitral award in favor of PIATCO regarding a construction dispute.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Government of the Republic of the PhilippinesApplicantGovernment AgencyApplication dismissedLostChandra Mohan, Celia Sia, Khoo Yuh Huey
Philippine International Air Terminals Co, IncRespondentCorporationPartial Award upheldWonLoo Ngan Chor, Mervyn Foo

3. Judges

Judge NameTitleDelivered Judgment
Judith PrakashJudgeYes

4. Counsels

Counsel NameOrganization
Chandra MohanRajah & Tann
Celia SiaRajah & Tann
Khoo Yuh HueyRajah & Tann
Loo Ngan ChorLee & Lee
Mervyn FooLee & Lee

4. Facts

  1. Dispute arose from a project involving the construction of a third terminal building at the Ninoy Aquino International Airport in Manila.
  2. PIATCO was awarded the right to build and operate the third airport terminal under Concession Contracts.
  3. GOP advised PIATCO that the award of the project and Concession Contracts were null and void ab initio.
  4. PIATCO issued a notice for arbitration, claiming GOP failed to fulfill its obligations.
  5. GOP challenged the jurisdiction of the arbitral tribunal, arguing the arbitration agreement was invalid.
  6. Philippine Supreme Court held that there had been serious violations of the Philippine Constitution.
  7. The Tribunal decided that Singapore law was the law governing the arbitration proceedings and the arbitration agreement.

5. Formal Citations

  1. Government of the Republic of the Philippines v Philippine International Air Terminals Co, Inc, OM 3/2005, [2006] SGHC 206

6. Timeline

DateEvent
Concession contract signed.
Amended and restated concession agreement (ARCA) signed.
PIATCO asserted terminal was practically ready.
GOP advised PIATCO that the award of the project and Concession Contracts were null and void.
PIATCO issued a notice for arbitration.
Philippine Supreme Court issued its decision on the petitions (the Agan decision).
Tribunal issued an order bifurcating the arbitration.
Partial Award on the Law Governing the Arbitration Proceedings and the Law Governing the Arbitration Agreement made.
Parties received the Award.
Judgment reserved.

7. Legal Issues

  1. Breach of Natural Justice
    • Outcome: The court found no breach of natural justice.
    • Category: Procedural
    • Sub-Issues:
      • Denial of fair opportunity to be heard
  2. Scope of Submission to Arbitration
    • Outcome: The court found that the award did not deal with matters beyond the scope of submission.
    • Category: Jurisdictional
  3. Validity of Arbitration Agreement
    • Outcome: GOP did not proceed with this ground in its submissions.
    • Category: Jurisdictional

8. Remedies Sought

  1. Setting aside of partial arbitral award

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Arbitration
  • Commercial Litigation

11. Industries

  • Construction
  • Aviation

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Michael Mustill & Stewart C Boyd, The Law and Practice of International Commercial Arbitration in EnglandN/AYesMichael Mustill & Stewart C Boyd, The Law and Practice of International Commercial Arbitration in England (Butterworths, 3rd Ed, 1998)EnglandAdopted approach for determining the law applicable to an arbitration agreement.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
International Arbitration Act (Cap 143A, 2002 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Arbitration
  • Arbitral Award
  • International Arbitration Act
  • UNCITRAL Model Law
  • Natural Justice
  • Jurisdiction
  • Severability
  • Concession Agreement
  • Lex Arbitri

15.2 Keywords

  • Arbitration
  • Singapore
  • Philippines
  • Airport
  • Construction
  • PIATCO
  • Government
  • Award
  • Setting Aside

16. Subjects

  • Arbitration
  • Construction Dispute
  • Contract Law

17. Areas of Law

  • Arbitration Law
  • International Arbitration