MANILA — The Supreme Court (SC) has ruled that the Construction Industry Arbitration Commission (CIAC) has the authority to determine the recipients of a judgment award granted to a corporation that has already been dissolved.

In a decision written by Associate Justice Jhosep Y. Lopez, the SC’s Second Division upheld CIAC’s order directing Philippine Commercial and International Bank (PCIB), now Banco De Oro Unibank, Inc. (BDO), to pay individuals identified as stockholders—or their heirs or representatives—of the dissolved William Golangco Construction Corporation.

The case stemmed from a construction project in which the Corporation built PCIB’s tower extension. After the building began to deteriorate, PCIB hired another contractor for repairs and filed an arbitration case before CIAC to recover repair costs. The Corporation filed a counterclaim for adjustments in material costs.

CIAC granted both claims. Before enforcement, the Corporation informed CIAC that it had been dissolved after its corporate term expired and submitted a list of its former stockholders and their heirs or representatives entitled to receive the award. CIAC then ordered BDO to pay these individuals.

BDO challenged the order, arguing that CIAC lacked authority to determine the heirs of deceased stockholders who should receive the award.

The SC disagreed, citing Executive Order No. 1008, or the Construction Industry Arbitration Law, which grants CIAC authority to resolve disputes involving Philippine construction contracts when parties have agreed to arbitration. The Revised Rules of Procedure Governing Construction Arbitration also allow CIAC to issue necessary orders to enforce its awards, including identifying recipients.

The court noted that BDO had already made partial payments to some of the identified individuals, recognizing CIAC’s order. The SC consequently directed BDO to pay the remaining amount to those identified by CIAC, deducting partial payments already made, plus interest.