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Realty and Mining Corp. Benguet filed petition for certiorari under Rule
65 seeking annulment of the MAB decision.
Facts:
Issue:
Benguet and J.G. Realty entered into a Royalty (1) Should the controversy have first been
Agreement with Option to Purchase (RAWOP), submitted to arbitration before the POA
wherein J.G. Realty was acknowledged as the took cognizance of the case?
owner of four mining claims with a total area of
288.86 hectares situated in Camarines Norte. Note: Before we dwell on the substantive issues,
we find that the instant petition can be denied
J.G. Realty sent a letter to the President of outright as Benguet resorted to an improper
remedy.
Benguet informing the latter that it was
terminating the RAWOP for failure to perform
The last paragraph of Section 79 of RA 7942 or
the obligations set forth in the RAWOP.
the Philippine Mining Act of 1995 states, A
petition for review by certiorari and question of
In response, Benguets Manager for Legal
law may be filed by the aggrieved party with the
Services, wrote J.G. Realty a letter, therein Supreme Court within 30 days from receipt of the
alleging that Benguet complied with its order or decision of the (MAB).
obligations under the RAWOP. Thus, Benguet
posited that there was no valid ground for the However, this Court has already invalidated such
termination of the RAWOP. It also reminded J.G. provision in Carpio v. Sulu Resources
Realty that it should submit the disagreement Development Corp. ruling that a decision of the
to arbitration rather than unilaterally MAB must first be appealed to the Court of
terminating the RAWOP. Appeals, before recourse to this Court may be
had for the following reasons:
RAWOP provides that "Any disputes, (1) Section 30 of Art. VI of the Constitution
differences or disagreements between provides that no law shall be passed increasing
BENGUET and the OWNER with reference to the appellate jurisdiction of the SC without its
anything whatsoever pertaining to this advice and consent. On the other hand, RA 7942
Agreement that cannot be amicably settled by provides that decisions of MAB may be reviewed
them shall not be cause of any action of any by the SC on petition for review by certiorari and
kind whatsoever in any court or administrative this law expanded the SCs appellate jurisdiction,
agency but shall, upon notice of one party to to which the SC has not consented;
the other, be referred to a Board of Arbitrators (2) the SC, in the exercise of its rule-making
consisting of three (3) members, one to be power, transfers to the CA pending cases
selected by BENGUET, another to be selected involving review of a quasi-judicial bodys
by the OWNER and the third to be selected by decision, such transfer relates only to procedure,
the aforementioned two arbitrators so hence does not impair substantial and vested
appointed. rights;
(3) Under Rule 43 of the ROC, appeals from
J.G. Realty filed a Petition for Declaration of judgments and final orders of quasi-judicial
Nullity/Cancellation of the RAWOP with the agencies are now required to be brought to the
Legaspi City Panel of Arbitrators (POA). CA on a verified petition for review;
(4) CA has more elbow room to resolve questions
of fact;
POA issued a Decision, declaring the [RAWOP]
(5) judicial policy of observing the hierarchy of
and its Supplemental Agreement cancelled and
courts.
without effect.
Petitioner having failed to properly appeal
Benguet filed a Notice of Appeal with the
to the CA under Rule 43, the decision of the MAB
Mining Adjudication Board (MAB). MAB upheld
has become final and executory. On this ground
the POA decision.
alone, the instant petition must be denied.