Busan International Rail vs. Department of Transportation-Metro Rail Transit 3, G.R. No. 235878, 26 February 2020 (Philippines)

Petitioner and the Department of Transportation (DOTr) entered into a contract where Petitioner was engaged as the Maintenance Service Provider of the Metro Rail Transit-3 (MRT-3), and for the general overhaul and total replacement of the signaling system of MRT-3, through a negotiated procurement under the Government Procurement Reform Act. The DOTr sent a letter requesting for an explanation why the contract should not be terminated allegedly due to Petitioner's failure to perform the obligations set therein. 

In response, Petitioner invoked the arbitration clause and filed a petition for the issuance of a Temporary Order of Protection under the Special Arbitration Dispute Resolution rules (ADR rules) before the lower court which was denied by the latter, as the case had already been referred to the Philippine Dispute Resolution Center, Inc. 

The Supreme Court held that the ADR rules prohibit the issuance of a temporary restraining orders and preliminary injunctions against national government projects. The rationale of the prohibition is that if a project proponent is allowed to enjoin the termination of a contract based on its contention as to the validity of the termination, the government will be unable to enter into new contract with any other party pending the litigation of the controversy. Thus, a court's grant of the injunctive relief is prejudicial to the public interest since the government will be hampered in its duty to provide vital public goods and services to preserve the private proprietary rights of the project proponent.