The arbitration concerned the role of historic rights and the source of maritime entitlements in the South China Sea. The arbitral tribunal ruled in favor of Philippines on virtually every substantive claim and on all of the major ones.Background of the Case. The tribunal's ruling will be legally binding only for the two parties to the disputethe Philippines and China. It was pursuant to Part XV of, and Annex VII to, the Convention that the Philippines commenced this arbitration against China on 22 January. This article attempts to provide a focused overview of the arbitration case and developments in the bilateral dispute between the two parties. This Agreement will then be filed as part of. Consent Judgments in the respective courts of each of the Settling States, pursuant to the terms. In the RECORD on Friday.