G.R. No. 136154 February 7,
2001
DEL MONTE CORPORATION-USA, PAUL E. DERBY, JR., DANIEL COLLINS and LUIS HIDALGO, vs.
MONTEBUENO MARKETING, INC., LIONG LIONG C. SY and SABROSA FOODS, INC.
DEL MONTE CORPORATION-USA, PAUL E. DERBY, JR., DANIEL COLLINS and LUIS HIDALGO, vs.
MONTEBUENO MARKETING, INC., LIONG LIONG C. SY and SABROSA FOODS, INC.
RULING:
The Court ruled the validity of the
arbitration clause in the Contract between the contracting parties. However, the
Court held that provisions in a contract are binding only between the
contracting parties, their assigns and heirs. In the present case, arbitration
as provided in the contract can therefore be called for only as to petitioners
DMC-USA, Paul Derby and respondents MMI and Lily Sy, and not to other parties.
Only the assigns and heirs can have the right to arbitrate.
Citing the case of Salas Jr. vs. Laperal
RealtyCorporation, the splitting of the proceedings to arbitration as to some
of the parties on one hand and trial for the others cannot be allowed. Otherwise,
it would result in a multiplicity of suits, duplicitous procedure and unnecessary delay.
To effect
a speedy and efficient resolution of the issues and claims of the parties, a
full blown trial must be had. Only then can the interest of justice be served.
