DFNN seeks review of arbitration ruling

Gaming technology solutions provider DFNN Inc. has asked the local arbitration tribunal that ruled favorably on its wireless lotto dispute with the state-controlled Philippine Charity Sweepstakes Office (PCSO) to increase the amount of damage award by 11 times to more than P310 million.

Arguing that the arbitration court’s order for PCSO to pay DFNN only P27 million as liquidated damages was a “miscalculation,” the technology firm filed for a petition of correction of the arbitral award.

“In the last few weeks, the DFNN board has assessed and evaluated the possible legal remedies to ensure that maximum restitution is effected with respect to the arbitral ruling announced last May. This petition for correction of arbitral award is a step closer to securing and protecting the interests of our shareholders,” DFNN president and chief executive Ramon Garcia Jr. said in a disclosure to the Philippine Stock Exchange Monday.

DFNN cited a provision in the arbitration rules stating that the court could “correct/modify or order the arbitral tribunal to correct/modify the arbitral award if there was an evident miscalculation of figures or an evident mistake in the description of any person, thing or property referred to in the award.”

The company said the arbitration tribunal should have computed the damages it awarded to DFNN for the PCSO’s illegal termination of a lotto equipment lease agreement during the Arroyo administration at P310,095,149.70.

The arbitration panel ruled that the PCSO had erred when it rescinded DFNN’s equipment lease agreement covering systems design development and upgrade for lotto betting through personal communication devices such as text, GPRS, BlueTooth, 3G, wifi protocols and other wireless devices. Doris Dumlao-Abadilla