PHILIPPINES Trends and Developments Contributed by: Rowena L Garcia-Flores, Patricia Kay L Tysmans-Clemente, Joseph Anthony I Malaya and Roslyn Bianca R Mangaser, Angara Abello Concepcion Regala & Cruz
In the case of Pioneer Insurance & Surety Cor- poration v the Insurance Company, Successor by Merger to Clearwater Insurance Company, GR No 256177, 27 June 2022 ( Pioneer ), the Supreme Court expounded on the requirement for raising such ground. A party asserting the violation of public policy is now required to: • identify the State’s fundamental tenets of justice and morality; • prove the illegality or immorality of the award; and • show the possible injury to the public or the interests of society. In Pioneer , the Supreme Court denied the peti- tion to vacate the arbitral award as Pioneer failed to prove the illegality or immorality of the award. The Supreme Court further found that, while the final award would significantly affect Pioneer, it would not injure the public or compromise soci- ety’s interest.
While there is still no ruling by the Supreme Court refusing the enforcement or recognition of a foreign arbitral award due to public policy considerations, this could change in light of the Supreme Court’s rulings in Maynilad and District of Benguet .
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