QC court orders Busan Universal, DOTC to proceed with arbitration
The Quezon City Regional Trial Court has directed the Department of Transportation and Busan Universal Rail Inc. to proceed with arbitration proceedings to resolve the dispute over the management of the MRT3.
In an order dated Oct. 13, Quezon City RTC Judge Rosa M. Samson said this was in accordance with Republic Act 9825 otherwise known as an Act to Institutionalize the Use of An Alternative Dispute Resolution System in the Philippines.
Samson ordered the DOTr and BURI to proceed with the arbitration proceedings before the Philippine Dispute Resolution Center Inc. (PDRCI), an agency in charge of assisting and resolving contractual and legal disputes between government and private entities.
“We are calling on the DOTr to abide by the court order. We believe that at the end of the day, our actual performance and compliance with contractual obligations could help the DOTr see the light and avoid a protracted legal conflict”, BURI said in a statement.
BURI said the contract for MRT-3 maintenance could not be unilaterally terminated because of temporary stoppages, more so on the subjective opinion that such were the consequence of the company’s failure to “satisfactorily perform work obligations”.
The Korean firm maintained it has delivered and performed beyond its contractual obligations, met its key performance indicators, and delivered more than the required train availability to the system