THE

ALTERNATIVE DISPUTE
RESOLUTION
AND
THE ARBITRATION LAW
(With Allied Laws, Rules and Regulations)
DEAN GEMY LITO L. FESTIN, LL.M.
Doan, Polytechnic University of the Philippmos, College ot Law;
Master of Laws. San Sehastinn CollegeRecoletos,
(confer1cd with recognition bene meritus»
Author; Spacial Praceedinge: A fresight
o to the bar exam
(2006, 2011. and 2015 editions):
Special Penal Laws: A foresight to the bar oxam sores, Volume I [2018 edition)
ad Volume II (2014 edition). Bar Review Guide in Criminal Law (215 edition)
to-author, The Judicial Affidavit Rule: Insights aud Features (2013 edtion)
Professor af Law handling Special P&ceedings and other Remedial Law suhjocts,
Criminal Law Review, Criminal Law I and II, Special Penal Laws
at Folyts&hnic University of the Philippines
and San Sebastian College--Recoletos
2. I'rofosor of Master ot Laws handling It~national Law and Comparative Law
nt. an Sahoastinn CollegeRecoletos, Institute of Graduate Studios;
.,.I [Link] Continuing Legal Education (MCL) Lecturer at U.E. Law Center,
Philippine Law School and
Al
· %me
Center for Global Best Practices;
Special Lecturer. atonal Burcau of Investigation Academy;

z Memnber, 2013 Criminal Law Expart Committee, U.P. Law Contor;

Former President, Integrated Ba of he Philippines, Manila I Chapter;
Former Asorinte Dann. f) ('llze f Ia-
 Philippine Copyright 2016
by

呸
4
1 :' r -, PREFACE TO THE FIRST EDITION
.
,, } +ttl
I ' I

·1' :'+t. ' The rlensa af this hook is timely ns rveent trend in the world
Io settle the parties' conflicting disputes is to avail of the alternative
ISBN 978-971-23-8267-3 fipute resolution and arbitration proceedings rather than through
the regular court. proceedings. As in the other hooks that the author
No portion of this book may be copicd or lad wrirten, the style is simplified yet comprehensive, and updated
d d 1n
roprotlucet . i....-.,..k._
Do0Mb,
,.ampb.b:lts '» outlmes Ol' notes, with relevant derisions of the Supreme Court,
·iecd
whether printed, mimeographed, typewritten, cpi
'The author hoes bat this humble book will serve ns n guide
in different electronic devices or in any other 1o" form. to tudonts ns well as to all those who find interest in altrnative
distribution or sale, without the written permission o lute resolution and arbitration proceedings. May they discover
the authorized representative of the publisher except th meaningful value these approuchos offer in resolving present-
brief passages iu books, articles, reviews. legal paper, ls contliets.
and judicial or ther official proceedings with proper
citation.
GEMY LITO L. FESTIN
Any copy of this book without the corres-
ponding number and the authorized signature of the ' +ril 2016
author on this page either proceeds from nn illegiti- Malt
mate source or is in possession af one who hs no
uauthority Lo dispose of the same.

ALL RIGHTS RESERVED

No,኏
109
------·
Rpried. Awl 2017

+nntec! by

Rt pRlnhnx comPay, Inc.

typography Cratlvs ththogaply
It44'It npi» ' Itri+A
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 CONTENTS
Part I
thapter One - Alternative Dispute Resolution
Act of 2004 ,................................................................ 1
t'hapter Two - Special Rules of Court on Alternative
Dispute Resolution......................0...................-................ 32
A. In General .......................................•........................... ._. 32
• Judicial Relef Before Arbitration Commences ........... 38
(', Judicial Relief Afler Arbitration Commences........6. 89
D Referral to ADR......·.s..............+8..................... 4l
h, Interim Measures of Protection.......................0....... 41
' Appointment af Arbitrators.........80....80.00........0..........., 4
t; Challenge to Appointment of Arbitrator...................... 44
H 'Termination of Mandate of Arbitrator........................ 45
I. ·Assistance in 'Taking Evidence.............................0..... 45
.I Confidentiality/Protective Orders............................ 47
I Confirmation, Correction or Vacation of Award .........
n Domestic Arbitration....-.--.....8........88...8...+..3806a..... 4
1, Recognition and Enforcement or Setting Aside
of an International Commercial Arbitration Award... 49
M Recognition and Enforcement of a Foreign
\rhital Award........9·+·+86,5.· +· · .· ...,,,6+· .0..066·.· .. Bl
N Provisions Specific to Mediation ................so...sos.. 51
t Referral to CIA\C.........8.............................. 52
I' uvisiors Specific to Other Forms of ADR................. 52
«) Motion lr Reconsideration, Appeal and Certiorari.... 52
t'apt«r 'Three Implementing Rules and Regulations
ol the Alternative Dispute Resolution At of 2004........... 56
t'hpter I General l'rovisions........8.8....................... 56
56
 Rule 1 -Offiee for Alternative Dispute Resolution Part II
(QADR) +‡‡āāā

ƇƇ‡ 0኏ toe ^H The Arbitration /DZ ....es· sos+-[Link],[Link] 158
Rule 2 - The Advisory Council.............so.........%. 68 ,

KDSWHU'Two • Construction Industry Arbitration Law......
Chapter 3 Medintion .......[Link]......so.... 68
Rule 1 -- General Provisions ......sos.s ·sos..[Link].%. 68 · +apter Three Construction Industry Arbitration
Rule - Selection RIn Medintor......................... ...- 69 ''omrissin & ,$&  5 HYLVHGRules RIProcedure
Rule 3 - Ethical Conduct of n Mediator...................-. 70 ' =ring Construction Arbitration.......-..ss..[Link]·.ssssss» 176
5 XOH 4 Role of Parties and their Counsels............--. 78 Rulo I - 3ROH\and Ohjextive9......-[Link]... ª 
5 XOH 5 - Conduct af Mediation.....sssssssssssss«om«..»as.+, 7. Rule; - Jurisdiction....sos.....+.+.++.+·+·sss++sass++»·· 176
Rule 6 Place nf Mediation ...... so.s.. 76 Rule ' +HWXHVWfor Arbitration:Complaint ........sos 
Rule Effect of Agreement to Submit Dispute to ... Rule 4 -- Efteet of Agreement to Arbitrate...........·s»+so 180
Mediation Under Institutional Rules ......ass.. 76 Rule 5 - Answer'Counterclaim........-.· »........... 
Rule -- Enforcement of Mediated Settlement ltule 6 - Sub:ssion nrd Communications/Notices.... 181
Agr0t1menl āāāā‡‡+‡‡āāāāāāāāāāāāāāāāā  77 Rule 7 - Confidentiality....--[Link]...s.«. 
Rule 9 -- Confidentiality of Infurmation ................-., '78 lRule 8 -- Gualit\cation of Arbitrators ........s»· .»·sos.. 
Rule 10 -- Fees and Cost of Mediation.......................... 80 Rule 9 Nomination and $SSRLQWPHQW
Chapter 4 -- International Commercial Arbitration ........ 8! of Arbitrators  =us. ·»sires»oms++ 
Rule I -- General Provisions........-.......+.[Link]..s.,,, 8l ule 10-- Appointment DQG Acceptance
Rule 2Arbitration Agreement...............-..........,, $4 of Arbitrators...........· s..so..» 187
Rule 3 -- Composition of' Arbitrl 'Tribunal................. 85 Rule 11 3 UHOLPLQDU\Conference/Terms
Rule 4 -- Jurisdiction af Arbitral Tribunal..-.....s..s.... 89 R/ Refei•ence --· . 189
Rule 5 - Conduct RIArbitral Proceedings........... ..., 91 O^OH l
HQXH ª +...+.............»· s++· ++++sos+· +++· ++ 191
Rule Hcogmton and Enfrcement o of Awards...... 100 Rule 13 -- Arbitration Proceedings.........................»8 
& KDSWHU<Domestic Arbitration.....................-.....0.......,  
ltul 14 Interim Relief ....-...... •. s· so· sos+..+.s+-
Rulo 1 ·General Provisions ......[Link]»sos.-. 10%+
lo Appointment of Experts........-........... ...,,, 196
Rule  Arbitration Agreement...........so..so..ass........ 11l
Ile 16 -- The Arbitration ward... . .so.................s. 196
Rule 3 - Composition of $UELWDOTribunal..............., 114
,QW17 lost-Award Proreeding......-..»...so+,,,,, HR
Rule 4 - Jurisdiction of Arbitral Tribunal......s..as.. 123
ate I Executive of Final Award...........................- 199
Rule 5 - Conduct of Arbitral Proceedings............80... 125
Rule 6 - Recognition and Enfarcement of Awards . . 142 ale 19 Relief Not & RYHUHG by the Hules.................. 201
Chapter 6 - Arbitration of Construction Disputes ..........., 148 le =5 6 PXOOClaims ....[Link].-· ..............6, · 2.02
Chapter 7 - Other ADR Forms.......................................... 14 {le-1 ¼UQUQ@ Matter.....»ass· s-· sos· moss· s.....+.. 202
Rule 1 - General Prosisions ......ss ...................... I44 ,4le )} 
WSOLāVHHāVR UV  ª

Rule 2- Neutral or Early Neutral Evaluation............ 150 Pare III
Rule 3 - Mini- Trial......[Link]..., I5l
5 XOH 4 - Mediation-Arbitration......[Link].-sos........  ,
$6 (  '( &,'( ' IY 7 +( 6 83 5 ( 0( COURT
Rule h --Costs DQG Fees.....sos. [Link]·. ·sos-o....... 1,l sol, Ie Makati [Link] Club Foundatinn, lnr,
Chapter Four - Collective Bargaining; nnd dmiintrntin U,5 N. 
@
ZSWHPKHU 013.........ss..· [Link]..-+,-.- 205
rvenwnt ..... ,OO I I'l Iw· lame·nt t'orpuralion v. Utility
lri-lent.l Jeers No 442... ..- Rt ones· ojurtion, ;lt. Na. 196i50J,
Artsel 
$ f
7LWOH 9,/RV KW us ''4, '/1[.A..as. 215

N
 3 Puromnes, Ine v. C'our of Appeals, GR. No, 91228,
19. Tran#field Philippines, Inc. (TPI) • Luzon Hydro
March z 19 ....s· .ss+.es+.· 6866»+.+0»»+, ••• • o.. 219
Corporation (LHC), Australia and New Zealand
Chung Fu Industries (Philippines), Inc. v. Court
Banking Grap Limited and Security Bank
of Appeals, G.R. No, 96283, February 25, 1992........... 221
Corporation, GR. No. 146717, May 19, 2006 . . ....... 263
California nd Hawaiian Dugar Company, et al. v.
20. Hutama-sea doint Operation, Inc. v. Ctra Metre
Pioneer Insuranee and Surety Corporation,
Manila Tollways Corporation, G.R. No. 180640,
G.R. No. 139273, November 28, 2000........................-- 223
April 24, 2009 ...................[Link]..sos 265
Asset Privatization 'T'rust v Court of Appeals,
225 21 Hi-precision Steel Center, Inc. v. Lim Kim Steel
[Link] No. 121171, December 29, 1998.......sass...as...... Builders, Inc. and CIAC, GR. No. 110434,
Agan, Jr., et al. v. Philippine International Air December 13, 1993.................................so........»..
Terminals Co., Inc., et al., G.. No. 155001,
22. Ruben N Barrameda, et al. v. Romeo Atienza, et al.,
May 5, 2003... . ·· ············· .. ···· .. --- 2::9
C.R. No. 129175, November 19, 2001............................- 270
8. Associated Bank v Court of Appeals, GK. No. 107918,
232
23. Eduardo J Marino, Jr., et al. • Gil Camilla, et al.,
hue 14,199d................. +us+s·+coo+so+sos··+
[Link]. No. 132400, January 31, 2005.........s................. 278
9. Heirs of Augusto La. Salas, Jr. v. Laperal Realty
24, A.D. Gothong Manufacturing Corporation Employees
Corporation, et al, GR. No, 185862, Decombor 13,
Union-ALU (The Union) v. Hon. Nieves Confessor.
1999 ... • ••• ••, ...... •, •• •••" •• ••-•,.. t
t •• Ƈ u• ••• • • • ., •,, ••,.,. • 285
•-4 • • • ••• • ••., , •• •
Secretary of DOLE and A.D. GothongManufaturing
10. Coca-Coca Bottlers Philippines, Inc. Sales Force Corporation (The Compan)y , G.. No. 113638,
Union- PTCWO.-BALAIS v. Coca-Cola Bottlers November 16, 199,..............................-...............,, 276
Philippines, Inc., [Link]. 1R 155651, July  2005 ......... 25. Capitol Medical Center, Inc. (T'he Company) v. NLRC,
11. National Steel Corporation v,
7 & /DQQRdel Norte et al., GR. No, 147080, April 26, 2005...................... 278
Branch 2, Iigan City, G.R. No. 127004, March 11,
呸` B 238 Appendices
12. Del Monte Corporation-USA v. CA, G.R. No. 136154,
February 7, 2200l ........................................o 241 Revised Rules of Procedure Governing Construction
,'\ rl,i tration . .. .. .. . . . . . .. .. ······-··· ··-· . 285
1. Jorge Gonzales and lanel of Arbitrators Y Ghmax
Mining Ltd., et al., G.R. No. 161957, January 22, l'executive Order No, 008.. ...· sos.......[Link]...sos· doss· ..ss» 313
2007 . 244
14. Oil and Nntural Gas Commission Y CA and Pacific epublic Act No, Bi6 ,~...,+·ssss»sos·sss.·sos+sss++· so+so%++-.. 318
Cement Company, Inc, G.R. No. 114823, - XO\ {IN(IT'RAJ Model Law on International Commercial
呸    247 1rltration ............................-..«..............-......-..-.....
15. DFA and BSP • Hon. Franco
7
 Falcon, residing
Judge of RTC Br. 71 RIPasig City, G.R. No. 176657,
Septemnber l, 2DD .....---.--·.--......·.......,+· .so·+.s·+».+ 250
16. Korea Technologies Co., Ltd. (KGIES) v. Hon. Alberto
A. /HUPD Presiding Judge of Br. 256, RTC Muntinlupa,
G.R. No. 143368), January 7, 2008..... ..............8.......... 253
17. MCC Industrial Sales Corporation v. SHsangyong
Corporation, G.R. No. 170633, October 17, 2007........--- 256
18 Magellan Capital Management Corporation 0& 0&
- 
and Magellan Capital Holdings Corp«ration 0&
7,& 
• Rolando M Zosn mnd Hon. Jose P Sobernna, Ar.,
G.R No. 129916, March 26, 2001..................- 261

LL 4l

c
 PART I
CHAPTER ONE
ALTERNATIVE DISPUTE RESOLUTION
ACT OF 2004

REPUBLIC ACT NO. 9285

1.00 WHAT IS THE POLICY OF THE STATE REGARDING ALTER-

NATIVE DISPUTE RESOLUTION (ADR)?
It is the declared policy of the State to actively promote party
autonomy in the resolution of disputes or the freedom of the party to
make their ownarrangements tor~solve their disputesTowards this
end, the State shall encourage and actively promote the use of Alter-
ratiyeDispute Resolution (ADR) as an important means to achieve
speed and impartial justice and dclog court dockets.'As such, the
St~e sball provide means for the use of ADR as an efficient tool and
an alternative procedure for the resolution of appropriate cases.
Likewise, the State shall enlist active private sector participation in
the settlement of disputes through ADR.

1.01 DOES R.A. NO. 9285 LIMIT THE POWER OF THE SUPREME
COURT TO ADOPT ANY ADR SYSTEM?
No, this Act shall be without prejudice to the adoption by the
Supreme Court of any ADR system, such as mediatio;n <onciliation,?
arbitration, vs any combination thereof as a me~ms of
achievingspeedy
and efficient means of resolving cases pending before all courts in the
Philippines which shall be governed by such rules as tho Supreme
Court may approve from time to time. (Section 2)

e
 THE ALTERNATIVE DIP'UTE ILES0LUTTON AT I 3
ANT THE ARBITRATION LAW Chapter One - Alternative Dispute esolution At of 20-4

court or an officer of n government ageney, as defined in this Act, in H) The "Court" referred to in Article 6of the Model Law
which a neutrul third party participates to ussist in the resolution of Court as referred ta in Article 6 of the Model Law shall mean a
issues, which includes arbitration, mediation, conciliation, early neu- Regional Trial Court. (Section 3)
ral evaluation, mni-trial, or any combination hereof. (Section )
I) Mediation
B) ADR Provider ; 3)
• means a voluntary process in which a mediator,
Mediation
{ADR Provider; means (stitutions af persons accredited as bywthedisputing parties, facilitates communication and ne-
selected
mediator, con@liator arbitrator, neutral evaluator, or any person gotation, and usist the parties in renching a voluntary agreement
exercising similar functions in any Alternative Dispute Resolution regarding a dispute. (Section )
system. This is without prejudice to the rights of tho parties to choose J) Mediation-Arbitration
on-accredited individuals to at as mediator, conciliator, arbitrator,
or neutral evaluator af their dispute, (Section 3) "Mediation-Arbitration" or Med-Arh is a step dspute resolution
process involving both mediation and arbitratiou. (Section 3)
Whenever referred to in this Act, the term ADR practitioners"
hall refer ta individuals acting ass mediator, conciliator, arbitrator or ) Mini-Trial
neutral evaluator. (Section ) "Mini-Trial"means a structured dispute resolution method
in which the merits of a cnse are argued before a panel comprising
C) Court-Annexed Mediation
senior decision makers with or without the presence of a neutral
r'Court-Annexed Mediation" means any mediation process con- third person after which tbe pnrties seek a negotiated settlement.
ducted under the auspices of the court, after such court has acquired (Section 3)
jurisdiction of the dispute, (Section 3}
L) Model Law
D) Court-Referred Mediation "Model Law" means the Model Law on lnternational Commer
"Court-Referred Medint ion' means medintion ordered by a cial Arbitration adopted by the United Nations Commission on Inter-
court to ba conducted m accordance with the agreement of the par- national Trade Law on 21 June 195 (Section 3)
ties when as action is prematurely commenced in violation of sucb M) New York Convention
agreement. (Section $)
"New York Conventio" means the United Nations Convention
E)
. Neutral Evaluation
Early on the Rogiton
~ andEnforcement of Foreign Arbiral Awards
"Farly Neutral Evaluation" mneane an ADR procos wherein approved in 158 and ratified by the Philippine Senate under Senate
parties an their lawyers arebrought together early in ua pre-trial Resolution Na. 71. (Section )
phase to present summaries of their cases and receive a nonbinding N) The proceeding under R.A. No, 9285
assessment by an experienced, neutral person, with cxpertiso in the
"Proceeding"means a judicial, administrative, ar other adju-
subject in the substance of the dispute. (Section)
dictive process, incluthing related pre-hearing motions, conferences
') Convention Award nut discovery (Section )
"Convention Award means n foreign arbitral award made in n
1.03 ARE THE PROVISIONS OF ELECTRONIC SIGNATURES IN
Convention State. {Section 3) GLOBAL AND E-COMMERCE ACT APPLICABLE?
G) Convention State Yes, the pruvions o!' the lertronic Signatures in Global and
@nvwntion Stnti" mwm n Stnts thnl n momhwr ofthe New , (omwrer Awl, ad its tplemenumn Rules d Ryultions shall
York tone# o, (Sertio • pply t pew+wwh eo+platesl thi et (rvtiu A)
 THE ALTERNATIVE DISPUTE SOLUTION
AND THE ARBITRATION LAW PART I 5
thpter One Altrrative Dispute Keeelution et af 2:004
1.04 WHAT IS THE LIABILITY OF ADR PROVIDER AND PRACT-
1.07 WHAT ARE THE GUIDELINES REGARDING INFORMATION
TONER? , .6 OBTAINED THROUGH MEDIATION?
__The AD providers nnd practitioners shall have the same civil Information obtained through mediation proceedings shall be
liability for the Acts done in the performance of their duties as that subject to the following principles and guidelines.
ofpublic officer as provided in Section 38 (1). Chapter 9, Book of the
Administrative Code of 1987. (Sectiun 5) (a) Information obtained through mediation shall be
privileged and confidential.
1.05 WHAT ARE THE EXCEPTIONS TO THE APPLICATION OF THIS (h) A party, n mediator, or a nonparty participant may
ACT? refuse to disclose and may prevent any other person from dis.
The provisions or this Aet shallpot appl yto resolution Gr«ele. closing n mediation communication
ment of tle following. () Confidential Information shall not be subject tu dis-
covery nnd shall be inadmissible in any adversarial proceeding,
'_ (a) labor disputes covered by .D, No. 44, otherwise
whether judicial or qunsi-judicial. However evidence or infor-
known as the Lnbor Code of the Philippines, ns amended ant
mation that is otherwise admissible or subject to discovery docs
its Implementing Rules and Regulations;
not. become inadmissible or protected from discovery solely by
€ t?) the civil status of persons, reason of its use in n mediation,
I
t) the validity of a muriae; tad) In such an adversarial preceding: the following per-
V
t
I - td) any ground for legal separation;
sons involved pr previously involved in a mediation may not be
compelled to,discose
l confidential information obtained during
, the jurisdiction of courts; mediation:{1) jho parties to the dispute, {2)the mediator or me-
." l)e
diators; (3) the counsel tor the parties: {4)the nonparty partici-
t «0 future legitime; pants;;(any persons hired or engaged in connection with the
¢
g) criminal liability; and mediation as secretar,y stenographer, clerk or assistant; and (6))

•
w
any other person who obtains ur possesses confidential inforra-
.h) tho which bylawcannot bwcompromised.(Section 6) tion by reason of his/her profession

1.06 GIVE THE CONSIDERATIONS IN APPLYING THE PROVISIONS (e) The protections of rhis Act shall continue to apply
even if a mediator is fund
o to have failed to st impartially.
ON MEDIATION.
(D) A mediator may
•. .
not be called totestfy
ta provide in-
In applyig and construing the provisions of this Chapter, con-
lormatism gathered in medi~ton. Amediator who is wrongfully
sidoration must. be given to:
ubpuenaed shall be reimbursed the full cost of hie attorney's
C (l) the need to promote candor of parties and meuialos fees nd related expenses. (Section 9)
through confidentinlity of the mediation process;
1.08 AS A RULE, THE CONFIDENTIALITY OF INFORMATION IS
j ( the policy af fostering prompt, economical, nud ami-
PRIVILEGE. MAY THE SAME BE WAIVED?
cable resolution of disputes in accordance with the principles of
integrity of determination by the parties; and Yes. n privilege arising from the confidentiality of information
mny hw· waived under the following circumstanus:
() the policy that the decision-mak; authority in the
rnwditinn process rot swith tle part ('ievtion ) 1) pwlee rising from the confidentiality of inf'or
hw wnivutl in n reorul, or orally drin n proceed-
[Link] ray
n hy th mulintqir ad the me«lintiun purl«
ll THE ALTERNATIVE DISPUTE RESOLUTION
AND THE ARBITRATION LAW Chapter One
PAN'T I
Alternative Di+put= Resolution Art nt U04
-
I

b) A privilege arising from the confidentiality of infor- (6) Bought or offered tu prove or disprove claim
mation may likewise be waived by a non-party participant if or complaint of profssional
e misconduct or mal-
the information is provided by such non-party participant. practice filed ugainst modiatox in a proceeding;
or
c) A person who discloses confidential information
shall be precluded from asserting the privilege under Section 8 (7) Bought or offered to prove or disprove a claim
of this Act to bar disclosure of the rest of the information of complaint of professional misconduet of mal-
necessary to a complete understanding of the previously dis. practice filed against n party, nonparty par-
closed information. If a person suffers loss or damages as a ticipnnt., or representative of a party based on
result of the disclosure of the confidential information, he shall conduct. oreurring during a mediation.
be entitled to damages in a judicial proceeding against the (b) There is no privilege uder Sectin o 9 if a court or
person who made the disclosure. administrative agency, tinds, after n hearing in camera, that
d) A person who discloses or makes a representation the party seeking discovery af the proponent of the evidence
about a mediation is preclude from asserting the privilege under has shown thnt the evidence is not otherwise available, that
Section 9 of this Act, to the extent that the communication there is a need for the evidence that substantinlly outweighs
prejudices another person in the proceeding and it is necessary the interest in protecting confidentiality and the mediaticn
for the person prejudiced to respond to the representalion of communication is sought or offered in;
disclosure. (Section 10) (l) n court proceeding involving a crime or felony; ar
1.09 WHAT ARE THE INSTANCES WHEREIN THERE IS NO (22) a proceeding to prove n claim or defense that
PRIVILEGE AGAINST DISCLOSURE UNDER SECTION 97 under the law is sufficient to reform or avoid a
liability on a contract arising out of the media-
(a) There is no privilege against disclosure under Sec-
Lion.
tion 9 if mediation c~mmunicntion is:
(l) in an agreement evidenced by a rcord authen- 1.10 MAY A MEDIATOR BE COMPELLED TO PROVIDE MEDIATION
ticated by all parties tu the agreement; COMMUNICATION?
(2) available to the public or that is made during No, a mediator may not be compelled to provide evidence of n
a session of a mediation which is open, or is mediation communication or testify in such proceeding.
required by law to be open, to the pubbc;
1.11 WHAT MAY BE ADMITTED WHEN A MEDIATION COMMUNI-
(3) a threat or statement of a plan ta inflict bodily
CATION IS NOT PRIVILEGED UNDER AN EXCEPTION IN
·<injury or commit a crime of violence;
SUBSECTION (a) or (b)?
(4) internationally used to plan n erime, attompt
If a mediation communication is not privileged under an
to commit, or commit a crime, or conceal an on-
[Link] in subsection (a) or (b), only the portion of the communica-
going crime or criminal activity;
tu necessary for the application of the exception for nondiaclosure
(5) sought or offered to prove or disprove abuse, nay be admitted. The admission of particular evidence for the
neglect, abandonment, or exploitation in a pro- luitel purpose of an exception does not render that evidence, or any
ceeding in which a public agency is protecting dlsr mw«dmtion communication, au\missible for any
uther purpose
the interest of an individuul protected by law; ertte 1t)
but this exception doe not upply where a child
protection matter in rfrred to mediation by 2.00 AS A RULE, A MEDIATOR MAY NOT MAKE A REPORT,
n tnurt or puhlir neuey p»[Link] in the ASSESSMENT, EVALUATION, RECOMMENDATION, FINDING,
child pt«wt inn moltfw, OR OTHER COMMUNICATION REGARDING A MEDIATION
 PAR'T I 3
TLIE ALTERNATIVE DISPUTE RESOLUTION Chapter One - Alternative Dispute esolutun Act. of 2Du4
AND TH ARBITRATION LAW

qualifications of a mediator are required in the mediation agreement

TO A COURT OR AGENCY OR OTHER AUTHORITY THAT r by the mediation parties. (Section 13)
MAKES A RULING ON A DISPUTE THAT IS THE SUBJECT OF
A MEDIATION. ARE THERE ANY EXCEPTIONS? 2.03 MAY A PARTY WAIVE HIS RIGHT TO PARTICIPATE IN
Yes, a mediator may nat make a report, assessment, evaluation, MEDIATION?
recommendation, finding, or other communication regarding a me- Yes, except as otherwise provided in this Act, a party may
diation to a court or agency or other authority that makes a ruling designate a lawyer or any other person to provide assistance in the
on a dispute that is the subject of a mediation, except: mediation. A lawyer of this right shall be made in writing by the
(a) Where the mediation occurrod or has terminated, or arty waiving it. A waiver of participation or logal representation
where a settlement was reached may be rescinded at any time. (Section t)
(b) As permitted ta be disclosed under Section 13 of this 2.04 WHERE IS THE PLACE OF MEDIATION?
Chapter. (Section 12)
The parties sro frae to agree on the place of mediation. Failing
2.01 WHAT ARE THE OPERATIVE PRINCIPLES ON MEDIATION? ch agreement, the place of mediation shall be any place convenient
d appropriate ta all parties.
The mediation shall be guided by the following operative
principles: 2.05 WHAT IS THE EFFECT IF THERE IS AN AGREEMENT TO
(a) Before accepting a mediation, an individual who is SUBMIT DISPUTE TO MEDIATION UNDER INSTITUTIONAL
requested to serve as a mediator shall: RULES?
(1 make an inquiry that is reasonable under the An agreement to submit a dispute to mediation by any inst:tu-
circumstances to determine whether there are tun +hall include an agreement to be bound by the internal media-
any known facts that a reasonable individual ion and administrative policies of such institution.
wold consider 'likely to affect the impartiality
of the mediator, including a financial or personal 'urther, an agreement to submit a dispute to mediation under
interest in the outcome of the mediation and ternational mediation rule shall be deemed iw include an agree-
apy existing or past relationship with a party wnt to have such rules govern the mediation of the dispute and
or foreseeable participant in the mediation; and for the mediator, the parties, their respective counsel, and nonparty
participants to abide by such rulos
t2) disclose to the mediation parties any such fact
known or learned as soon as is practical before
2.06 IN CASE OF CONFLICT BETWEEN THE INSTITUTIONAL
accepting a mediation.
MEDIATION RULES AND THIS ACT, WHICH WILL PREVAIL?
(hb) If a mediation learns any fact descrbi ed in paragraph
In rna of conflict. bet ween the institutional mediation rules and
(a) (1) of this section after accepting u mediation, the mediator
the- provisions of this Ac~,he lutter shall prevail ]Section 16)
shall disclose it as soon as practicable.
At the request of u mediation party, an individual who is 2.07 WHAT ARE THE DUTIES OF THE PARTIES UPON SETTLE-
requested to serve as mediator shall disclose his/her qualifications to MENT AGREEMENT?
mediate a dispute 'T'he fullowing are tho duties of the parties upon settlement
+y'rewrnl
2.02 IS IT REQUIRED THAT A MEDIATOR HAS SPECIAL QUALIFI-
CATIONS BY BACKGROUND OR PROFESSION?
n. A settlement greement following successful modi-
ntion shall bn prepared hy thu pnrtie with th· assistance of

.2
 10 THE ALT'RNATIVE DISPUTE RERSOLUTTON
AND THE ARBITRATION LAW PART I 11
Chapter One - Alternative Dispute Resolution At f 204

b. The parties and their respective counsels shall en- The parties may agree to refer one or more or all issues arising
deavor tu make the terms and condition thereof complete and
i a dispute or during its penency to other forms of AD sach es but
make adequate provisions for the contingency of breach to
uot limited to:
avoid conflicting interpretations of the agreement.
(a) the evaluation of a tbird person or
e. 'The parties and their respective counsels, if any,
shall sign the settlement agroament. (Section 17) (d) a mini-trial,
(e) mediation-arbitration, or a combination thereof.
2.08 WHAT IS THE DUTY OF THE MEDIATOR AFTER A SETTLE-
MENT AGREEMENT HAS BEEN MADE? For purposes of this Act, the use of other AD forms slzll be
v:verned by Chapter 2 of this Act except where it is combined with
The mediator shall certify that h/she explained the contents
titration in which case it shall likewise be governed by Chapter b
of the settlement agreement to the parties in a language known to
of this Act. (Section 18)
them. (Section 17)
JOO WHAT LAV GOVERNS INTERNATIONAL COMMERCIAL ARBI-
2.09 MAY THE PARTIES DEPOSIT THE SETTLEMENT AGREEMENT
WITH THE COURT?2 TRATION?

Yes. If tho parties so desire, they mny deposit such settlement International commercul arbitration shell be governed by the
agreement with the appropriate Clerk of a Regional Trial Court of Model Law on International Commercial Arbitration (the "Model
the place wlere one of the parties resides. (Section 17 l.w") ndopted by the United Nations Commission on International
T'rude Law on June 21, 1985 (United Natons Document A/40/17) and
2.10 WHEN AND WHERE MAY A PARTY FILE A PETITION TO +e+omended approved on December ll, 1985. (Section 19)
ENFORCE THE SETTLEMENT AGREEMENT?
O1 HOW SHOULD THE MODEL LAW BE INTERPRETED?
Where there is a need to enforce the settlement agreement,
a petition may he filed hy any of the parties with the same court l interpreting the Model law, regard shall be had to its
wherein the agreement was deposited, in which case, the court shall rrnntional origin nnd to the need fro uniformity in its interpreta-
proceed summarily to hear the petition, in accordance with such ton nd resort may be made to the travaux preparatories and the
rules of procedure as may be promulgated by the Supreme Court. +rt «f tho Secretary General of the United Nations Commission
(Section 17) ·n International 'Trade Law dared March 25, 1985 entitled, "Inter-
nttl Commercial Arbitration: Analytical Commentary on Draft
2.11 MAY A MEDIATOR BECOME THE SOLE ARBITRATOR FOR 'Tile identified by reference number A'CN. 9/264." (Section 20)
THE DISPUTE?
Yes, the parties may agree in the settlement agreement that 1 u2 WHAT IS COMMERCIAL ARBITRATION?
the mediator shall become a snle arbitrator for the dispute and shall n rbitrntion is "commercial" if it covers matters arising from
treat the settlement agreement as an arbitrnl award which shall be all +ltiunsbimps of n commercial mature, whether contractual or not.
subjeet to enforcement under R.A. No. 876, otherwise known as the ttionhips of truusactions: any trade transaction for the supply or
Arbitration Law, notwithstanding the provisions of E.O. No. 1008 far whe of goods or services; distribution agreements; construction
mediated dispute outside of the CIAC. (Section 17) of' work, vommereinl [Link] or g;ency: factoring; leasing,
volt in, vgesrim; lier, vwslmunt; financing; bnking;
.
 PART I 1'¥
12 THE ALTERNATIVE DMSPUTRESOLUTION Chupter One Alternti DspatRel»non Aet of 'a04
AND THE ARBITRATION LAW

3J.07 HOW SHOULD THE COURT INTERPRET THE ACT?7

3.03 WHO MAY REPRESENT A PARTY IN AN INTERNATIONAL
ARBITRATION? In interpreting the Act, the court shall have due regard to the
policy of tho law in favar of arbitration. Whore notion is commenced
In an mternational arbitration conducted in the Philippines, hiy or against multiple parties, one or more of whom are parties who
a party may be represented by any person of his chice. o Provided, are hound by the arbitration agreement although the civil action
that such representative, unless admitted o the practice of law in my continue as to those who nre not bound by sueh arbitration
the Philippines, shall not be authorized to appear as counsel in any :recment. (Section 25)
Philippine court, or any other quasi-judicial body whether or not
such appearance is in relution to the arbitration in which he appears. 4 00 WHAT IS MEANT BY "APPOINTING AUTHORITY"?
(Section 22)
- .. . ..,.__,_
Appointing Authority ~sused i the Model Law shall mean
tle person or institution named in the arbitration agreement as the
3.04 WHAT IS THE NATURE OF ARBITRATION PROCEEDINGS7
pointing authority; or the regular arbitration institution under
The arbitration proceedings, including the records. evidence whue rules the arbitration is agreed to be conduw:ted. Where tho
and the arbitral award, shnll be considered confidential
呸 . .. ~nd shall not rt is have agreed to submit their dispute toinstitutonnl [Link]
be published. le, nd unless they have agreed to a different procedure, they
.hall tw hemmed to have agreed to procedure undor such arbitration
3.05 WHEN MAY THE PROCEEDINGS BE ALLOWED TO BE PUB- lesn for the selection and appointment o!' arbitrators. In ad hoc
LISHED? arltrnt ion, the default appointment of nn arbitrator shall be made
h the National President of tho Integrated Bar of the Philippines
'I'he proceedings may be allowed to be published on the following
II'» « his duly authorized representative. (Section 26)
conditions:
(l) with the consont of the partioa, or «01 WHAT ARE THE FUNCTIONS THAT MAY BE PERFORMED BY
APPOINTING AUTHORITY?
() for the limited purpose of disclosing to the court
of relevant documents in cases where resort to the court is I'he functions referred to in Articles 11(3), 11(4). 136, and 14(1)
allowed herein. Provided, however, 'T'hat the court in which the t th Model Law shall be performed by the Appointing Authority,
action or tho appeal is pending may issue a protective order nlu the [Link] shall fail or refuse to act within 30 days from receipt
to prevent or prohibit disclosure of documents or information ·t the rvquet in which case the applicant may renew the application
wth the (ourt. (Section 27)
containing secret processes, developments, research and
other information where it is shown that the applicant shall Article I1(9), 11(4), 1363), and 14(1) of the Model Law refer to
he materially prejudiced by an authorized disclosure thereof. he· lllowmy;
(Section 2) Arte!e l1. Appointment of arbitrator s
Article 11() "Walin such agreement,
3.06 WHEN MAY A COURT REFER THE PARTIES TO ARBITRATION?
(nu in ens arbitration unth thre arbitrators each part
A court before which an action is brought in a matter which ht!l appont one arhitrutor, and the two arbitrators thus
is the subjeet matter of n arbitration agreement shall, if at least punter! hull appoint the third arhnrator; it a party fails tu
one party so requests not later that the pre-trial conference, or upon ppwnt the «nbitratur within thuty «drys of receipt nf a request to
the request of both parties thereafter, refre thc parties to arbitration to o [rou th ther purtv, r f th· t a hitrows {it to agree
unless it finds that the arbitration agreement is pull nod void, • tle thr«d whitrtor within thirty hys f their ppntment.
o

4'# 4Au [Link] t. e. + • t -a • .

4 TIE [Link]!VE DISPU'T RESOLUTION PART I 15
AND THE ARBITRATION LAW Chapter One - Alternative Dispute Resolution Aet of 2004

(is,) in an arbiratun with n sole arbitratur, if the parties 4.03 WHEN MAY A REQUEST FOR INTERIM MEASURE BE MADE?
are unable to agree on the arbitrator, he shall be appointed, por
request of prrty, by the court or other authority specified in
After constitution of the arbitral tribunal and during arbitral
Article 6. roceedings, a request for an interim measure of protection ormodi-
p

ieation thereof, may be made with the arbitral tribunal or to the

Article 11(4) "Where, under an appointment procedure
agreed upon hy the parties,
·rtent that the arbitral tribunal has no power to act or is unable to
et effectively, the request may be made with the Court. (Section 28)
(a) apurtyfailslouct«+required under surh prordure, or
(b) the parties, or two arbitrators, are unable to reach an 4.04 WHEN IS THE ARBITRAL TRIBUNAL DEEMED CONSTITUTED?
agreement expected of them urder suwh pruwrdur, or
'T'he arbitral tribunal is deemed constituted when the sole arbi-
(c) a third part. including an institution, fails to rator or the third arbitrator who has been nominated, has accepted
perform any function entrusted to it under such procedure, any he nomination and written cornmunication of said nomination and
party ray request the court or other authority specified in Article
6 to take the necessary tasture, unless the agreement on the
weptance has been received by the party makingrequest. (Section 28)
appointment procedure prouides other means for securing the
appointment. 405 WHAT ARE THE RULES ON INTERIM OR PROVISIONAL
Article 13, Challenge procedure RELIEF?
Artiele 13() "If a challenge under any procedure 'I'he following rules on interim or provisional relief shall be
agreed upon by the parties or under the procedure of paragraph ·hew·rved:
42) of tis article is mot successful, the challenging party may (1) Any party may request that provisional relief be
request, within thirty days after hating received rotie of the ranted against the adverse party.
decision rejectg the challenge, the court or other authority
p+ ificet in Article 6 ta deride or the challenge, which dcciion (2) Suh relief may be granted:
hail he hject tu no appeal: white such a request is pending.
he arbitral tribunal, including the challenged arbitrator, may
(i) to prevent irreparable loss or injury;
eontine the arbitral proceedings and make an auurd," (ii) to provide security for the performance of any
obligation;
Artale i4. Falure or impossibility to act
(iii) to produce or preserve any evidence; or
Article 14(1) "If an arbitrator becomes de jure or
de faeto urable to perform his functions or for other reasons (iv) to compel any other appropriate act or omission
fails to act withot undue delay, his mandate terminates
. if he withdraws from his office or if the parties agree on the (8) 'The order granting provisional relief may be condi-
termination. Otherwise, if a controversy remains concerning iuel upon the provision of' security or any act or omission
uny of these grounds, nay par!y muy request the court or other pwwified in the order.
~
authority specified in Article to decde on the termination of
(4) Interim or provisional relief is requested by written
the mandate, which decision shall be subject to no appeal,"
[Link] transmitted by reasonable means to the Court or
4.02 MAY A PARTY REQUEST FOR AN INTERIM MEASURE OF [Link] tribunal as the case may be and the party against
PROTECTION? who the relief is ought, describing in appropriate detail the
pr@rise relief, the party ngainst whom the relief is requested,
Yes It is not incompatible with an arbitration agreement for
tl rounds for tle rehof, md evidence supporting the request.
n party to request, before constitution of the tribunal, from a Court
..
 16 TIE AI 1ARNN'W DISPLTTE RESOLUTION
At» TH, AMIITRATION LAW
PART I 17
Chapter One Alternative Dispute Resolution Act f 2I0M

(6)Either pnrty my apply with the Court for assistance .-a

in implementing or onforcing an interirn measure ordered by to be used shall tie. Englishin internatiora] arbitration, and English
or Filipin~ for domestic arbitration; unless the arbitral tribunal shall
an arbitral trbuul
or
detern~ne different another language or languages to be used in
(7) A party who loss not comply with tbe order shall be the proceeding. This agreement or determination, unless otherwise
liable for all damages resulting from noncompliance, including specified therein, shall apply to any written statement by a party,
all expenses, and reasonable attorney's lees, paid in obtaining ny hearing and any award, decision or other communication by the
the order's judicial enforcement. (Section 28) nrbtral tribunal.

4.06 WHAT OTHER INTERIM MEASURE MAY AN ARBITRAL 'T'he arbitral tribunal may order that any documentary evidence
TRIBUNAL GRANT? hall be aeeonpanied by a translation into the language or languages
reed upon by the pnrties or determined in accordance with para-
Unless otherwise agreed by the parties, the arbitral tribunal :raph 1 of this section. (Section 3I)
may, at the request of a party, order uny party to tuke such interim
measures of protection as the arbitral tribunal ma y consider 5.00 WHAT LAW GOVERNS DOMESTIC ARBITRATION?
necessary in respect of tbe subject mater of the dispute following
tho rules in Section 28, paragraph 2. Such intorim measuros may Domestic arbitration shall continue ta be governed by R.A. No.
include but shall not be limited to preliminary injunction directed 76, otherwise known as "The Arbitration Law' ns amended by this
against a party, appointment of receivers or detention, preservation, t'hapter. The term "domestic arbitration" as used herein shall mean
inspection of property thnt. is the subect of tho dispute in arbitration. w arbitration that is not international as defined in Article (3) of the
Either party may apply with the Court for assistance in implementing Madel Law. (Section 32)
or enforcing an intorim measures ordered by an arbitral tribunal.
(Section 2) 5.01 IS THE MODEL LAW APPLICABLE TO DOMESTIC ARBITRA-
TION?
4.07 WHAT IS THE RULE ON THE VENUE OF THE ARBITRATION
PROCEEDINGS?
8,
Yes. Articles 10, 11, 12, 13, 14. 18. and 19, and 29 to 32 of the
Model Law and Sections 2 to 1 of the Chapter 4 of the Act shall
The parties are free to agree on the plHce af arbitration. Failing ·ppl to domestic arbitration. (Section 33)
such agreement, the place of arbitration sball be in Metro Manila,
Articles 8, 10, 11. 12, 13, 14, 18, 19, 29, 30, 31, 32 of theModel
unless the arlitral tribunal, having regard to the circumstances of law provide that:
the cnse, including the convenience of the parties shall decide on n
different place of arbitration. (Section 30) Article 8. (1) A curt befre whch ar etioat is brought in
or matter which is the au~ject of an arbitration agreement shall,
4.08 WHERE SHOULD THE MEMBERS OF THE ARBITRAL TRIBU- if a puriy au requeats ot later than when submitting hi first
statement on the substance of the dispute, refer the partes to
NAL HOLD THEIR MEETING? o
rbitratoe wntess it {rads that the agreement is nail an! uuad,
The urbitral tribunal may, unless otherwise agreed by the inoperative? or incapable of being performed.
parties, moot at any place it considers appropriate for consultation (2)
Where an action referred to in paragraph () of this
among its members, for hearing witnesses, expert, or the parties, heen hruught, arbitral procasdingta may neverthelasa
rtwele hu
ur for inspection of goods, other property or documents. (Section 30) hw· rammeneed or continued, and an award may be made, while
hr sue wudig be[are ihe court
4.09 WHAT IS THE LANGUAGE TO BE USED IN THE ARBITRAL
PROCEEDINGS? Article [0. {'The purtie are {roe t determine the amber
of utuwt,

j
I8 THE ALTERNATIVIL DISPUTE RESOLUTION ART I 19
AND THE ARBITRATION LAW Chapter One Altrive Dispnte Resoiuton Act of 2001

Article 11, {1) No person shall be precluded by reason of apointment

p of an independent and impartial arbitrator and, in
his nationality from acting ae an arbitrator, unless otherwise the case of a sole or third arbitrator, shall take into account as
agreed by the parties. well the advisability of appoiu:ing an arbitrator of a nationality
other than those of the parties.
(2} The parties are free to agree on a procedure of
cppointing the arbitrator or arbitrators. subjet
r to the prouisions Article 12. (1) When a person is approached in connectiur
af paragraphs (4) urd (5) of this article. with his possible appointment as an arbitrator, he shall disciose
any circumstances likely to giwe rise ta justifiable doubts as io
(3) Failing such agreement,
his impartiality or independence. An @rhtrator from the tne of
(a} in an arbitraton uth three arbitrators, each his appointment and throughout the arbitral proceedings, shall
party shall appoint ore arbitrator, and the without delay disclose any such circumstances to the parties
two arbitrators thus appointel shall appoint unless they haue already been informed of them by him.
the third arbitrator;: if a party fils
a to appoint
the arbitrator within thirty days of receipt of a (2) An arbitrator may bechalienged orly if circumstances
request to do so from the other party, or if the tuo exist that give rise to justifiable doubts as to his itnpcrtiality or
arbitrators fail to agree on the third arbitrator independence, or if he does nat possess qualifications agreed to
within thiriy days of their appointment, the by the parties. l party may challenge an arbitrator appointed
appointment shall be made, upon request af n by him, or in whose appointment he has participated, only for
party, by her curt or ather authority specifed reasons of which he becomes aware after the appointment has
in Article 6; been made
(b) in an arbitration ith a sole arbitrator, if he Article I3. (1) Te perties are free tu agree o a procedure
parties are unable tu agree on the arbitrator, he for challenging an arbitrator, subject to the provisions of
shall be appointed, upon rqe uest of a party, by paragrup (3) of this article.
the curt or other authonty specified in Article 6. (2) Failing sch agrement,
e party who intends to
a
(1) Were, under an appointment procedure cgreed day after heroaing
challenge an arbitrator shall, within fftecn.
upon by the parties, «care of the constitution of the arbitral tribunal ar after
becoming aware of any cireurstance referred to in Artele 1(2)
(a) a to art as requind nnder such pro-
a party fils send wntten statement uf the reasons for tie challenge to the
cadre, or arhtral tribunal. Unless the challenged arbitrator withadraus
(h the parties, or two arbitrators, are unable to from his office or the other party agrees to the challenge, the
receh an agreement expected of them uder arbitrul tribunal shalt decide on the ehalieng.
suc procedure, or (3) If a clallarge antler any procedure agreed upon by
{e) a third party, including an instituton, fails tu the parties or under the procedure of paragraph (2) of this articie
perform any function emrusted to it under sch is not successful, the challenguus party may request, within
procedure, any party may request the court ur thirty uya after uing received notice of the decision rejecting
other ethority specified in Article 6 to take the the challenge, the court or other authority sperife! in Article 6
necessary measure, unleas the agreement an the tu decide on the challenge, which decision shall be subject to no
appointment procedure provides other means appeal; while such a request is perdirg, the arbitral tribunal,
for securig the appointment. ineludmg the challenged arbitrator, may tontine the arbitral
prorelings and make an award.
(5) A dreinon on a matter entrste! by parugraph ()
ur (4} af this rtile tu tie tot or other authority specified Article 14, (1) If an arbitrator bcoes de jure or de facto
in Awtiele shall h hjer! t nu pent 'Th· rourt or other utblv tn perfort ht [urn or for ti reasons fails to art
fhrit, t ppouutun rb#mfr, halt hue «de rt'garul to ithul ml delv, hiss note twrmates if he rithadraus
 PART I 21
TIE ALTERNATIVE DISPUTE RESOLUTION
Chaptor Ce Alternative Dispute Reoltion Act f 200t
4NT THF ARBITRATION LAW

(3) The awarad shall sate its date and the place of
any pry mnay request the euuwt or ther authority spevifei rt in
arbitration as determined in accordance with Article 20(I). The
Article to decicie on the termination of the mandate, which aleci-
award shall be deemed to have been made at that place
8ion shall be styect ta no uppeul,
(4) After the award ts made, a copy signed by the arbi.
() If, under this Article or Article 18(2), an arbitrator
trators in accordance with paragraph (l) of thia article shall be
withdraws from his office or a party agrees to the termination
delivered to each party.
of the mandate of un arbitrator, this oea nut mply acceptance
of the validity of any ground referred to in thin Article or Article Article 32. (1) The arbitral proceedings are terminated
2r by the final award or by an order oaf the arbitrcl tribunal in
accorduuce with paragraph () of this artcie.
Article I8. The parties shall be treated with equality and
euch party skt be giver a full opportuit of presenting hs (2) The arbitral tribunal shall issue an order for the
cu8e. termiaton of the arbitrn! proceedings when:
Article 19. ( Subject to the provisions of this Law, the (a) the claimant withdraws hia claim, unless the
pries are free agree on the procedure tu he fallowed by he reapondent objects thereto and tle arbitral tri-
awbitral tribunal in conducting the proceedings bunal reoogizes a legitimate imterest on his part
i obtaining a final settlement of the dispute;
(2) Failing such agreement, the arbitral tribunal ma,
subjeet to the pratios uf this lat, cundei the arbitriion in (b) the purties agree on the termination of the
such manner as it considers appropriate. The power conferred proceeding8;
upon the arbitrl tr!bra! ineles the power to determine the (e) the arbitral tribunal finds that the continuation
art misstbilty, relevance, materiality and weight of any evidence. pf the proceedings has for any other reason
Article 29. In arhitral provevding ith more thon one become unnecessary or impoible.
rbrator, any decaon or the arbitral triaual shall be made, {3) The mandate of the arbitral tribunal terminates
Pless otherwise agreed by the urties, by a zuajority of all its with the termination of he arbitral proceedings, subject to the
members. Hou«er questions of procadur may be decided by prousion of Articles 3 and 34(4).
rt presidg
i arbitrator, if so authorized by the parties ar all
nrrbers of le arbitral tribunal, Sections 22 to 31 of Chapter 4 of R.A. No. 9285
Article 30. (i) If, during arbutru! proceedings, he parties provide that:
settle the dispute, the arbitrai tribunal shall terminate the
Section 22. Legal Reprevsentation in International
proceedings and, if requested tny the parie nnd not objected ta
Arbitration. In international arbitratinn orducted in the
hy the arbitral tbuul, record the settlement in the form of am
Philippes, a party may be presented by any person of his
arbtral award ·an agreed terms,
choice. Provided, That such representatiue, unless admitted to
(3) An award on agreed terms shall he made tn the practice of luu in the Philippines, ehall not be authorized to
accordance with tie provisions of Article 3l and shal! state that appear as counsel in any Philippine court, or any other quasi-
it is an award. Such an uward has the same status and effect as judicial body whether or not such appearance is in relation to the
urotler aurd on the marts of the case. arbitration in which he appears.
Article 1. t1) The auart shal! be made in uriting and Section 23. Confidential of Arbitration Proceedings.
shai be signed by the arbitrator or rbttratars. In arbitrcl pro The arbitration proceedings, including the records, evidence
ceedngs wth more than one arbitrator, the signatures of he and the urhitral award, ahall be considered confidential and
mnjarity of al! members of the arbitrul tribunal sail suffice, shall not be publushed except (1) uith the consent of the parties,
worded that the reason tor any omitted gnatre is stated. or (2) for the limited purpose of disclosing to the court of relevant
t??) Tte auuarrt shall state the rraan up wlish it ia lacunentw in cues where rrrort to the evurt is allowed herein
ii, news the uses lwr tu+wa tu n» ewuou re to bw lruteri, however, 'T'hot the curt in heh the ruin or the
yr'et st h vtl ts tn rm«l rt «grew+l tr+u+ noter Arlee ltl etppeof ta pending u tune et pro·ts ti and to urrvent tr
 22 THE AI'T'ENATIVJMFITE REOLA'TI1ON PART 23
AND T'HE ARBITRATION LAW Chapter One - Alternative Duupute Reoltton Act of 204

prohibit disclosure of documents or infornution containing seeret protection or modification thereof, may be made with the arbitra!
processes, «developments, reseaneh and other information where tribunal or to the extent that the arbitrta! tribunal ha no power
it is shouun that the applicant skal! be materially prejudiced by to act or is uable to act etfertied, the reques may be made th
ah corizd dsclosuure thereof the Cort. Te arbitral tnbunal is deemed eunsatuted uhen the
sole arbitrator or the third arbitrator who has been nominated,
Section 24. Referral to Arbitration. A tort be'ore
has accepted the nomination and written communcntion of
which an action ia brought in a matter which is the subjecr
said nomination and acceptance las been received by the party
matter nf an arbitration ugrvereru hall, if at lest one purl,y
making request
su requests not later than the pre-trial conference, or upon the
rqest of both parties thereafter, refer the partes to arbitration fb) The following rules on interim or pro~atonal relief
unless it find thau the arbitration agreement is mull and vod, shall be abs&rued'
inoperative or incapable of being performed,
[i) Any party may request that provision relief he
Section 2. Interpretation of the Aet. In interpretng granted against the adverse party:
the Act, the court shall hae due regard to the policy of the
(2) Such relief may be granted:
law ir favor of arbtratin. Where ac!ion is commenced by or
against muitipie parties, one or more of whom are parties he (l) to prevent irreparable lusss or injury:
are bound by the arbitration agreement although the citi action
(ii) to prouide security for the performance of
muy continue a to those trha are xot bound by such arbtrator any obligation;
agreement
(ii) to produce or preserve any evidence; or
Seetlon 26. Meaning of Appointing Authority."
"Appointing Authority"as used in the Mode Lau shail mean the (iu) to compel any other appropriate art ar
person or institution named tn the arbitration agreement as the mission
appointing authority; or tie regular arbitration intitii
s under (a) The order grunting provisional relief may be
whose rules the arbitration s agreed to be conducted. Where conditioned upon the prauision of security ur any art or
the parties hane agreed to submit their dispute to institutional omission specified in the urder.
arbitration rules, and unless they have agreed to a different
procedure, they «hail be deemed tu haze agreea ta procedure (4) Iterim or provisional relief is requested by
unuer sue! arbitration rules for the selection and ppoit muent written application transmitted by reasonable means ta the
of arbitrators. In ad hoc arbitration, the default appointment Court or arbitrl tribunal as the case may be and the party
of an arbitrator shall be made ty the atonal President of the against whom the relief is aught, describing in approp-
Integrated Bar of the Philippines (IBP) or his duty authorized riate detail th precise relief, he party against uhom the
representatite relief is requested, the grounda far the relief, and evidence
supporting the request,
Section 27. What Functions May be Perfurmed by
Appointing Authority. 7'he functions refarred ta in Article (5) The order shall be binding upon the paria.
!1(), 1164), 136) and 1461 af theModel La shall be performed (6) Either party may apply with the Court for
by the Appointing Authority, unless the latter shall fail or refuse assistance in implementing or enforcing an interim
to act wthi thirty (39) days from receipt of the request in hih measure ordered by an arbitral tribal.
case the applieunt may renew the application with the Court.
Section 2, Grant ofInterim Measure of Protection - (7) Apart who does not comply with the order shall
be liable for all damages resulting from noncompliance,
eluding all expenses, and reasonable attorneys fees, paid
(a) It is rat incompatible with an arbitration agreement
for a party to request, before constitution of the tribunal, from a n obtaintng tr order 'as judctul enfrcement.
o
Court an irtnrim muuaure ofprotection and fur {he Court o grunt Ntlon 9. Farther Authority for Arbitrator to Grant
uh nwnure. After tonsdttiun of the arbitral tribnmul rul Interlmt AM'rare of Protection. I'tear there agretl iry
turn? rhral prueei, rvwurst for an interim mun+ nf the purtir, the nhitral tribal muv, at the rrueut nf « rte,

t
.' 'TIU, AMT'ERNA'TV+ ANTWI#, I;Am 1l+t
'At" I _.,
el
NI T'TH. AHT'TON 1AW
I hpiter he Ater nnl+rs ,t le+ltut w f 'M}]

rrter anuy party to take sch inarimnt measures of protest «n the

Contretiun diputcss which tall within the original and
rbltral tribunal may consider necessary in respect uf the subj!
· swlave jarts«diction of the Construction Industry Arhirntion C'om-
muter cf the dispute folloumg the rules in Section 2, paragraph
! 'ch interim musres may include bt hall rot be limited tu u«ion (the "Commission") shall include those between or among
rlninnry n;unction directed against a party, appointment of pnrties Lo, or who are otherwise bound by, an arbitration agreement,
reeeiuers or deitenton, preservation, inspection of properly that is ·meetly or by reference whether such parties are project owner, con-
the subject of the dispute iarbitration. Either party may apply retor, subcontractor, quantity surveyor, bondsman or isuer of an
with the Court far assistance in implementing or en/uwcing an uuranee policy in a construction project
imerm measures ordered hy aarhiral tribunal
'he Commission shall continue to exercise original and exclu-
Section 30. Place of Arbitration. - The partes are although the arbitration
·ave jurisdiction over construction disputes
free to agree on the place of arbitration. Failing such agreement, u "ummercial" pursuant to Section 1 of this Aet. (Section 35)
tie place of arbitration hall be in Metro Maniia, nless the
arbirnl tribunal, having regard ta the circumstances of th .04 WHEN MAY AN ARBITRATOR ACT AS MEDIATOR AND A
case, including the convenience of ile parties shall decide on u MEDIATOR AS AN ARBITRATOR ?7
«different place of arbitration.
Te arbtral tribuai may, uric otherwise agreed by the
By wiitten agreement of the parties to
ispui, an arbitrator
a

y act asmeditor and a mediator may act as arbitrator. 'The parties

parties, mueet ct any place it ron
aiderappropriate for cursultatior
oey also agree in writing that. following a successful mediation. the
umang its members, far teuring witnesses. experts, or tie parties,
or {ar inspection of goods, other property ar documents. wliator shall issue the settlement agreement in the form of an
bttral award. (Section 36)
Section 31. language of the Arbitration. - The parties
ate free to gres on the language or languages to le used in the 5.05 WHEN MAY A FOREIGN ARBITRATOR BE APPOINTED?
•bird procerings. Fihngg such agreement, the language ta he
uet shall he English in international arbitration, and English The Construction Industry Arbitration Commission (CIAC)
, Flinn@ fr domestic arhlration, unless the arbitral tribunal hnll promulgate rules to allow for the appointment of n foreign
abull etrrmime t different or another language or language! 10 rhitrator or co-arbitrator or chairman of a tribunal a person who
lw used in the proceedings. This agreement or determination, hu not been previously accredited by CIAC: Provided, That:
antes therwise specified therein, shall apply tu any written
statecnt h a party, any heuring and any ward. decision ur (a) the dispute is a construction dispute in which one
nther communication by the urbiral tribunal. party is an international party;
The arbitrul tribunal may order that any documentary (b) the person to be appointed agreed to abide hy the
evidence shall be accompanied by a trzaslation into the languge arbitration rules and policies of CIAO;
or ianguges reed upon by the parties or determined in (c) he/she is either co-arbitrator upon the nominatiun of
awvordance rith paragraph l sf this section
the international party; or he/she is the common choice ct the
two CIAC-accredited arbitrators first appointed one of whom
5.02 WHAT LAW GOVERNS ARBITRATION OF CONSTRUCTION
was nominated by the international party; and
DISPUTES?
(d) the foreign arbitrator shall he of different rationality
I.0.'T'he arbitration of construction disputes shall be governed by
Ne. 1008, otherwise known nus the Constitution Industry Arbi-
Lrtan lw.
from the international parry. (Section 37)

5.06 WHAT PROVISIONS OF R.A. NO. 9285 ARE APPLICABLE TO

ARBITRATION OF CONSTRUCTION DISPUTES?
5.03 WHAT ARE THE CONSTRUCTION DISPUTES THAT FALL
WITHIN THE ORIGINAL AND EXCLUSIVE JURISDICTION OF THE The provisions of Section 17(d of Chapter , and Sections 28
CONSTRUCTION INDUSTRY ARBITRATION COMMISSION? and 29 of this Act shall apply to arbitration of construction disputes
covered by this Chapter. (Section 38)
 THE ALTERNATIVE DISPUTE RESOLU'TIUN
PAR'TI 27
AND TH ARB!'TATTON LAW Chapter (One Alternative Dispute Resolution Act. of 200M

() The order granting provisional relief may be

Section 17(d) of Chapter , and Sections 28 and 29 of this Act
conditioned upon the prouision of security or
refer to the following: any art or omission speeifiat in the order.
Section 17. Enforcement of Mediated Settlement
(4) Interim or provisioral relie fis requested by
Agreement. The mediation shall be guided by the following
written application transmitted by reasonable
operative principles: means to the Court or arbitrl tribunal as the
(a) xx case may be and the party against whom the
relief is soght, describing i appropriate detail
fb) xx
the precise relief, the party against whom the
(c) Nr relief is requested, the grounds for the relief,
(d) The parties may agree in the settlement agreement
and the evidence supporting the request
that the mediator shall become n sole arbitrator for the dispute (5) The order shall be binding upon he pariie.
and shall treat the settlement agreement as an arbitral award
which shall be subject to enforcement under Republic Act No. (6) Either party may apply uith the Court for assis-
876, otherwise knoun as the Arbitration Law, notwithstanding tance in implementing or etoreing an interim
the provisions of Executive Order No. 1003 for mediated dispute measure ordered by an arbitral tribunal.
outaide of the CLAC (7) A party who does not comply with the order
Section 28. Grant of interim Measure of Protection. shali he liable for all damages resulting from
--· (a) It is not incompatible wih an arbitration agreement far a noncompliance, including all expenses, and
party to request, before constitution of the tribunal, from a Court e paid in obtaining the
reasonable attorney 's fes,
an interim measure ofprotection and for the Court to grant such oder s judicial enforcement
measure, After constitution of the arbitral tribunal and during Section 29. Further Authority for Arbitrator to Grant
arbitral proceedings, a request for an interim measure of pro- Interim Measure of Protection• Unless otherwise agreed by
tection or modifcatior thereof, may be made with the arbital the parties, the arbtral tnbuna! may, at the request of a party,
tribunal or to the extent that the arbitral tribunal has no power order any party to take such interim measures of protection as the
ta act or is unable to aet etfectiely, the requeut may be made with arbitrul tribunal may consider necessary in respect of the subject
the Court, The arbitral tribunal is deemed constituted uhen the matter of the dispute fallowing the rules in Section 28, paragraph
sole arbitrator or the third arbitrator who has been nominated,
has accepted the nomination and written communication of
2. Such interim measures may include but shell not be limited to
preliminary injunction directed against a party, appointment of
said nomination and acceptance has beer received hy thew party
receivers or detention, preservation, insnaction of property that is
making request. the subject of the dispute in arbitration. Either pariy may apply
(b) The following rules on mterim or provisional relief with the Court for assistance in implementing or enforcing an
shall be observed.: interim measures ordered by an arbitral tribunal.
(!) Any party may request that provisional relief he
granted against the aderse party: 5.07 WHEN MAY A COURT DISMISS A CASE INVOLVING CONS-
TRUCTION DISPUTE?7
(2) Such relief may be granted:
A Regional Trial Court which a construction dispute is filod
(i) to prevent irreparahle loa or injury,
hll, upon becoming ware, not later than the pre-trial conference,
(ii) u provide security for the performance of thut the pnrtes hnd entered inta an arbitration agreement. dismiss
amy obligation; [Link] cme nnd refer the pnrties to nrltrution to be conducted by the
(iii) ta produce or pnesere any evidence; or t'IA(', unlo Iwth prtirs, assist+d hy their rswwtiva counsel, shall
uhmit.t the enl''il tort n writ tement exclusively for

i
2 TH. ALTERNATIVE DISPUTE RESOLUITI0N
AND THE ARBITRATION LAW PART I 2
Captor One Alternative Dispute Resolution Art af 20&4
5.08 WHAT LAW GOVERNS THE CONFIRMATION OF DOMESTIC
ARBITRAL AWARD? (@) Where there wus an evielen scalctulation of fgures,
or an evident mistake in the description of cay person, thing or
The confirmation of n domestie rbitral award shall be governed property referred t in the wurd; or
by Section 3 af R.A No, 876. (ection
S 40)
(b) Where the arbitrators have awarded pr matter
Section 2of R.A. No. 876 provides that "At any time wthin not submitted a them, not affecting the merits of the decision
one month after the uword ts made, any party to the controversy upon the matter submitted; pr
which uas arbitrated nay apply to the vourt hang jurisdiction,
aa provided in suwtinn went-eight, fro an order confirming the (c) Where the award is imperfect in a matter af form
award; cnad thereupon the court must grant surh order unless hot affecting the merit» of the controversy, and if it hcd been a
the award is tacatead, modified or corrected, as prescribed herein. commissioner's report, the defect cold have been amended or
disregarded by the court
'otice of 8eh motion must be served upon the aduerse party or
his attorney as prescribed iy law for the serice of such note The order may modify end correct the card so as to effect
po an attorney in acun in the same court." the intent thereof and promote justice between the partes

5.09 HOW SHOULD THE CONFIRMED DOMESTIC ARBITRAL 6.00 WHAT LAW GOVERNS THE RECOGNITION AND ENFORCE-
AWARD BE ENFORCED? MENT OF ARBITRAL AWARDS COVERED BY THE NEW YORK
A domestic [Link] award when confirmed shall be enforced CONVENTION?
n the same manner gs final and executory decisions of the Regional 'The New York Convention shall govern the recognition and
'T'rial Court. (Section 40) ·nlorcement of arbitral awards coorod by the sid Convention.
tction 42
5.10 WHAT COURT CONFIRMS DOMESTIC AWARD?
The confirmation of a domestic award shall be made by the 6.O1 WHERE MAY A PARTY FILE THE RECOGNITION AND EN-
Regional '[rial Court in accordance with the Rules of Procedure to be FORCEMENT OF ARBITRAL AWARDS?
promulgated by the Supreme Court. T'he recognition and enforcement of such arbitral awards shall
A CLAC arbitral award need not be confirmed by the Regional helled with the Regional 'Trial Court in aeordance with the rules
'Trial Court to be executory as provided under E.O. No. 1008. (
ection
S of procedure to be promulgated by the Supreme Court. (Section 42)
40)
6.02 WHAT ARE THE DOCUMENTS THAT A PARTY APPLYING FOR
5.11 MAY A PARTY TO A DOMESTIC ARBITRATION QUESTION THE ENFORCEMENT OF THE AWARD SHOULD PRESENT?
THE ARBITRAL AWARD? l'he party relying on tbe award or applying for its enforcement
Yes, a party to a «domestic arbitration may question the arbitrnl hell file with the court the:
award with the pproprinte Regional Trial Court in accordance with original or authenticated copy of the award; and
the rules of procedure to be promulgated by the Supreme Court only
or those grounds enumerated in Suction 25 of R.A. No. 876. Any other the arbitratian agreement.
ground raised against a domestic arbitral award shall be disregarded If' the nward or agreement is not made in any of the official
by the Regiona} Trial €ourt. (Section 41) rug, the perty shall supply n duly certified translation thereof
Section 25 refers to "Grounds for modifying or correct- ti ny ol wh luguat,
ing award."In any one of he flioing
o cases, the court must
'Tho ppient. nlll v+.tnhiesh thut. tho country in whih foreign
rake on order modifyig or correcting the award, tupun the · t

anrEieatio of any part to the controversy which was arhtrted vlt fun nwart wnn mhu· i party tu th Nus 'url t 'ventiut
+4. di
 30 TIIE ALTERNATIVE DISPUTE RESOLUTION PART I 31
AND TH AHUI'TRATION LAW Chup:er One - Alternative Dispute Resolution Art of 2of

6.03 WHEN MAY THE REGIONAL TRIAL COURT VACATE ITS appealed to the Court of Appeals in accordance with the rules of'
DECISION? procedure to be promulgated by the Supreme Court.
If' the application for rejection or suspension of enforcement of The lasing party who appeals from the judgment of the court
an award has been made, the Regional Trial Court may, if it considers confirming an arbitral award shall be required by the appellant court
it proper, vacate its decision and may also, on the application of the
to post coumter-band exerted in fvor
a of the prevailing party equal
party claiming recognition or enforcement of the award, order the
to the amount of the award in accordance wit.h thr rile to be pro-
party to provide appropriate security. (Section 42)
mulgated by the Supreme Court. (Section 46)
6.04 WHAT RULES WILL GOVERN THE RECOGNITION AND EN-
FORCEMENT OF FOREIGN ARBITRAL AWARDS THAT ARE 6.08 WHAT IS THE NATURE OF THE PROCEEDINGS FOR RECOG-
NOT COVERED BY THE NEW YORK CONVENTION? NITION AND ENFORCEMENT OF AN ARBITRATION AGREE-
MENT OR FOR VACATION, SETTING ASIDE, CORRECTION
The recognition and enforcement of foreign arbitra awards not OR MODIFICATION OF AN ARBITRAL AWARD, AND ANY
covered by the New York Convention shall be done in accordance APPLICATION WITH A COURT FOR ARBITRATION ASSIS-
with the procedural rules to be promulgated by the Supreme Court. TANCE AND SUPERVISION7
The Court may, on grounds, of comity and reciprocity, recognize and
enforce a non-convention award as a convention award. (Section 43) Proceedings for recognition and enforce;net of an arbitration
greement or for vacation, settingside, correction or modification af
6.05 IS A FOREIGN ARBITRAL AWARD CONSIDERED AS A 'u arbitral award, and any application wirh n court for arbitration
FOREIGN JUDGMENT?7 ·resistance and supervision shall be deemed as special proceedings.
No, n foreign arbitral award when confirmed by a court of a
foreign country, shall be recognized and enforced as a foreign arbitral t.09 WHERE SHALL THESE PROCEEDINGS BE FILED?
award and not a judgment of a foreign court. tt shall be filed with theegin«i
o Ti Cary) where arbitr-
Also, a foreign arbitral award, when confirmed by the Regional ' proceedings are conductod; {ij where tlc asset to be attached or
Trial Court, shall he enforced as a foreign arbitral award and not as le·vied upon, or tho act to be onjoined ie located; (iii whore any of the
a judgment of a foreign court. parties to the dispute resides or has his place of business; or (iv) in
th National Judicial Capital Region, at tbe option of the applicant,
A foreign arbitrnl award, when confrmod by the Regional Trial
Court, shall be enforced in the same manner as final and exocutory
decisions of courts of law of the Philippines, (Section 44) 6 10 WHEN AND WHERE SHALL THE COURT SEND THE NOTICE
OF PROCEEDINGS TO THE PARTIES?
6.06 MAY A PARTY OPPOSE AN APPLICATION FOR RECOGNI- ln n special prweuering tro recognition nnd enforcement of nn
TION AND ENFORCEMENT OF THE ARBITRAL AWARD? ltrnl awari, the Court shall send notice to the parties at thoir
Yes, a party to a foreign arbitration proceeding may oppose an vhtress of record in the arbitration, or if any parly cannot be served
application for recognition and enforcement of the arbitral award tire at Buch address, at such party's last known address. The
in accordance with the procedural rules to be promulgated by the sot iwe stall be sent at least 15 days before the date set for the initial
Supreme Court only mn those grounds enumerated under Article V he· rim of the application. (Section 48)
of the New York Convention. Any other ground raised shall be dis-
regarded by the Regional Trial Court. (Section 45) 11 DOES R.A. NO. 9285 REPEAL THE JURISDICTION OF THE
KATARUNGAN PAMBARANGAY UNDER R.A. NO. 7160?
6.07 WHERE MAY A PARTY APPEAL THE COURT DECISIONS ON
ARBITRAL AWARDS?7 t.A. Na, 925 shall not he interpreted to repeal, amend or .
fv I/w rnalielsn al lle· trunvn I'nharnuv ndor R A

d
 PART 1 33
Chaptar 'Two - Special Rutrs af Court an Alternative Dispute evolution

1.01 WHAT IS THE NATURE OF THE ADR PROCEEDINGS?

All proceedings under the Specinl ADR Rules are special po.
redings. (Rude 1.2)
CHAPTER TWO
1.02 WHAT MUST BE DONE BY THE PETITIONER PRIOR TO THE
SPECIAL RULES OF COURT ON ALTERNATIVE FILING OF THE PETITION IN COURT7
DISPUTE RESOLUTION The petitioner shall serve, either by personal service or courier,
vopy of the petition upon the respondent befre o the tiling thereof.
A.M. NO. 07-11-08 SC I'rnf of service shall be attached to thpetition fled in court. 'lRuie 1.3)

A. IN GENERAL 1.03J WHAT CONSTITUTE PROOF OF SERVICE?

-·1.00 WHAT ARE THE SUBJECT MATTERS COVERED BY SPECIAL n. For personnl service, proof of srvice of the petition
consists af the affidavit of the person who effected serviu
ADR RULES?7 stating the time, plate nnu manner of the service on the
Tha Special Rules of Court on Alternative Dispute Resolution respondent.
(the "Special ADR Rules") shall apply to and govern the following
h. For service by courier, proof of service consists af the
sigred courier prof o! delivery.
a. Relief on the issue of Fxistenee, Validity, or Enforce-
ability of the Arbitration Agreement; c If service is refused or has failed, the affidavit or
delivery receipt must state the circumstances of the attempted
b. Referral to Alternatise Dispute Resolution ("ADR");
+er&e und refusal or failure thereat (Rule 1.)
c. Interim Measures of Protection;
1 04 HOW MANY DAYS DOES THE COURT HAVE TO RESOLVE
d. Appointment of Arbitrator; THE MATTER?
e. Challenge to Appointment of Arbitrator; 'The court shall resolve tho matter within a period of 30 day»
£ Termination of Mandate of Arbitrator: o the day of the hearing. (Rule 1.3)

g. Assistance in Taking Evidence; I05 ARE PLEADINGS FILED UNDER THE SPECIAL ADR RULES
h. Confirmation, Correction or Vacation of Award in NEED TO BE VERIFIED?
Domestic Arbitration; Ye. Any pleading, motion, opposition, comment, defense or
i, Recognition and Enforcement or Setting Aide of an • n filed under the Special AD Ries by the proper party shall
Award in International Commercial Arbitration; l.· pported hy verified statements that the affiant has rend the
me zut that the factual allegations [Link] re true ard corret of
j. Recognition and Enforcement of a Foreign Arbitral hr; own pwrsal knowlele or based on authentic records and chnil
Award; ·tin n new· the snporting duwuments, (nude 1.4)
k. Confidentiality/Protective Orders; and
L06 WHAT MAY BE INCLUDED IN THE ANNEXES TO THE
I Deposit and Enforcement of Mediated Settlement PLEADINGS7
Agreements. (Rule 1.1)
'l'le tue·en t th help, wt ion, ojrif mi, +nwnl,
l·tweet +Hum hilel I thw prowr nit' min iwhh, le;l rwf,
'+-4 'HE. [Link]{N'TTWI, IW!J'T [Link] +At'I t
SNITH, AM&II'TR'T'(Ot4 w
'·l Huls n t uni is llr+Awe u:wt,· eltiw

duly verified by the lawyer submitting it, stating the pertment facts, I U9 I THE FILING AND SERVICE OF PLEADINGS BY ELECTRONIC
the applicable law and jurisprudence to justify the necessity for the TRANSMISSION ALLOWED UNDER THE ADR RULES?
court to rule upon the issue raised, (Rule 1.1)
filing ud service uf' pleadinga hy eleetronit transmissiou
Yes,,
a henllowed by the agreement of the parties approved by the
1.07 IS A CERTIFICATION AGAINST FORUM SHOPPING REQUIRED?
r· rt.. I the filing or service of a pleading or motion was done by
Yes, a Certification Against orum Shopping shall be appended electronic transmission, proof of filing and serviwe shall be mnatde in
to all initiatory pleadings except n Motion to Refer the Dispute to · or«dance with the Rules on Electronic Evidence. (Rule 1.8)
Alternative Dispute Resolution.
I I0 ARE THE TECHNICAL RULES ON SERVICE OF SUMMONS
A Certifeatin Against Forum Shopping is one made under APPLICABLE TG THE PROCEEDINGS UNDER THE SPECIAL
oath by the petitioner or movant: (a) that he has not theretofore ADR RULES?
commenced any action or filed any claim involving the same issues
in any court, tribunal or qust-judicial agency and, to the best of his No, the technical rules on service of summons do not apply to
knowledge, no such other action or claim is pending therein; (b) if
proceedings under the Special ADR Rules. In mstances where
the
l respondent, whether n natural or a juridical person, was not
there is such other pending action or claim, a complete statement of
rally served with a copy of the petition and notice of hesring in
the present status thereof; and (e) if he should thereafter learn that
the proceedings contemplated in the first paragraph of Rule 1.3(),
the same or similar action or claim has boon flod or is pending, he the motion in proceedings contemplated in the second paragraph
shall report. that fact within five days therefrom tu the court. wherein I Ile 1.3(B), the method of service resorted to must be such as to
his aforementioned petition or motion has been filed. (Rule 1.5) ten0ably ensure receipt thereof by the respondent to satisfy the
+[rement of due process.
1.08 WHAT ARE THE PROHIBITED PLEADINGS IN THE CASES
GOVERNED BY THE SPECIAL ADR RULES? I I1 WHAT ARE THE REQUIRED CONTENTS OF THE PETITION?
The following pleadings, motions, or petitions shall not be I'he initiatory pleading in the form of u verifiod petition or
allowed in the cases governed by the Special ADR Rules, and shall mot ion, in the approprinte case whore court proceodmgs have already
not be accepted for filing by the Clerk of Court. rotmenced, shall inelde the names of the pties, their addresses,
Motion to dismiss; the necessary allegetions supporting the petition and the reliefts)
g;ht (Rule 110)
b. Mation for bill of particulars;
Motion fur new trial or tor renpcning of trial; 1.12 WHAT IS MEANT BY "ADR LAWS?

d. Petition tor relie! from judgment; ADR Laws" refers to the whole body of ADR laws in the Phi-
hippies. (Rule [Link])
e. Motion for cxtension, except in cses where an ex-
parte temporary order of protection has been issued; 1.13 WHAT IS "FOREIGN ARBITRAL AWARD"7
f. Rejoinder to rep!:
"Foreign Arbitral wrd" is one made in a country ather than
g. Motion to declare a party in default, and the Philippines. (Rule 1.11)
h. Any other pleading specifically disallowed under
1.14 WHAT RULE WILL APPLY IN SITUATIONS WHEREIN NO
any provision of the Special ADR Rules.
SPECIFIC RULE IS PROVIDED UNDER THE SPECIAL ADR
The court eball motuu proprio order a pleading/motion that it has RULES?
determined to he dilatory in nature be expunged from the records.
In situations where no specific rule is provided under the
(Rule 1.6) {[Link] ADR Rues. the court shall resolve surh matter summarilv
 TH AL'!UN'TINE II!I'I'I IR+'4it 4w1!1
A NI 'TJ AKHA'T'ION 1AW

and be guided by the spirit and intent of the Special ADR Rules and ! WHAT IS MEANT BY THE PHRASE "THE SPECIAL ADR
the ADR Laws. (Rle 1.13) RULES RECOGNIZE THE PRINCIPLE OF COMPETENCE-
COMPETENCE" ?
1.15 WHAT IS THE POLICY OF THE STATE REGARDING ALTER-
NATIVE DISPUTE RESOLUTION?7 'I'he Special ADR Rules recognize the principle of competence-
· ·· potence, which means that the arbitral tribunal may initially rule
It is thc policy of the State to actively promote the uso of various it own jurisdiction, mcluding any objections with respect tu the
modes of ADR and to respect party autonomy or the freedom of the · mtunce or validity of the arbitration agreernent or any condition
parties tu make their ow arrangements in the resolution of disputes · evident to the filing of a request for arbitratio.n
with the greatest cooperation of and the least intervention from the
courts. 'To this end, the objectives of the Special AD Rules are to I 18 HOW IS THE COMPETENCE-COMPETENCE PRINCIPLE"
encourage and promote the use uf ADR, particularly arbitration and IMPLEMENTED?
mediation, as an important means to achieve speedy nnd offiemt
resolution of disputes, impartial jurrin, curb n litigious culture and 'The arbitral tribunal shall be accorded the first opportunity or
to de-clog court dockers. · ·.petence to rule on the issue f whetheror not ithas the competence
o risdietion to tdecido a dispute submitted to it for decision,
The court shall exercise the power of judicial review as provided wluding any cbjetion with respect to the existence or validity of
by these Special ADR Rules. Courts shall intervene only in the cases l arbitration agrecment, When a court is asked to rule upon issue's
allowed by law or these Special ADR Rules. Alerting the competence or jurisdiction of an arbitral tribunal in a
·hpute brought before it, either before or nfter the arbitral tribunal
1.16 WHAT SHOULD THE COURT DO WHEN THE PARTIES HAVE constituted, the court must exercise judiciai restraint and defer to
AGREED TO SUBMIT THEIR DISPUTE TO ARBITRATION? the vorupetenee or jurisdiction of the arbitral tribunal by allowing th¢
Where the parties have agreed to submit their dispute ta arhi- hitral tribunal the first opportunity to rule upon such issues.
tration, court shall refer the purtics to arbitration pursuant ta R.A. Where the court is asked to make a determination of whether
No. 9285 bearing in mind that such arbitration agreement i the law he arbitration agreement is null and void, inoperative or incapable
between the parties and that they are expected t abide hy it in gourd ol beng performed, under this policy of judicial restraint, the court
faith. Further, the courts shall not refuse ta rfer parties ta arbitra- must make no more than a prima facie determination of that iasue.
tion for reasons including, but not limited to, the following:
Urless the court, pursuant to such prma fce a determination,
a. The referral tends to oust a court of its jurisdiction;
rocludes that the arbitration agreement. is null and void, inoperative
b. The court is in a better position to resolve the dispute r incapable of boing performed, the court must suspend the
subject of arbitration; wtion before it and refre the parties to arbitration pursuant to the
c. 'Tha refrral
e would result in multiplicity of suits: arbitration agreement.
d. The arbitration proceeding has not couuenced; 1.19 IS THE SPECIAL ADR RULES APPLICABLE TO COURT-
e. 'The place of arbitration is in a foreign country, ANNEXED MEDIATION?
f One or more of the issues are legal and one or more No, the Special ADR Rules do not apply to courtannexed me-
of the arbitrators are not lawyers; diation, which shall be governed by issuances of the Supreme Court
g. Gne ar mnre of the arbitrators are not Philippine Where the parties have agreed to submit their dispute to me-
nationals; or diaion, a court before which that dispute was brought shall suspend
h. One or more of the arbitrators sre alleged not to the pmcodings nnd direct the parties to submit their dispute to pri
possess the required qualification under the arbitration agree- vnte mediation. If the parties subsecuentl aree however. te h mn
 'IHI AM 'TRNA''IWI IT'E Rial rT1I 'AM&Tl '+!
ANI THE ARBITRATION 1AW t hni+· Ten 'p ul Hulse st 4 mt on Matye l sis - lust um

1.20 MAY AN ARBITRATOR ACT AS MEDIATOR ? urt of the plnwe where any of the petitioners or respontents has his
rep plwo of busies ur residence.
No arbitrator shall act as a mediator in any proceeding in which
he is acting as arbitrator; and all negotiations towards settlement of
) 03 ON WHAT GROUNDS MAY THE PETITION BE GRANTED?
the dispute must take place without the presence of that arbitrator.
Conversely, no mediator shall act as arbitrator in uny proceeding in A petition may be ganted only if it is shown that the arbitration
which he acted as mediator. o,ye+ment is, under the applicable law, ivaid, void, unenforceable
·• existent.
1.21 MAY A SETTLEMENT AGREEMENT BE CONVERTED AS AN
ARBITRAL AWARD? » 04 IS FORUM SHOPPING ALLOWED?
Yes, where the parties to mediation have agreed in the writ- No, n petition for judicinl relief under this Rule may not be corm-
ten settlement agreement that the mediator shall become the sole unred when the existence, validity or enforceability of an arbitra
arbitrator for the dispute or that the settlement agreement shall 'on agreement has been raised as one af the issues in a prior action
become ar arbitral award, the sole arbitrator shall issue the settle- ta fire the same or nnother court.
ment agreement as an arbitral award, which shall be subject to
enforcement under the law. C. JUDICIAL RELIEF AFTER ARBITRATION
COMMENCES
B. JUDICIAL RELIEF BEFORE ARBITRATION
COMMENCES n0 WHO MAY FILE A PETITION FOR JUDICIAL RELIEF FROM THE
RULING OF THE ARBITRAL TRIBUNAL ON A PRELIMINARY
2.00 WHO MAY FILE A PETITION TO DETERMINE ANY QUESTION QUESTION UPHOLDING OR DECLINING ITS JURISDICTION?
CONCERNING THE EXISTENCE, VALIDITY AND ENFORCE-
Any party to arbitration may petition the appropriate conrt fr
ABILITY OF ARBITRATION AGREEMENT?
lieial relief from he ruling of the arbitral tribunal on a preliminary
Any party to an arbitration agreement may petition the appro- estion upholding or declining its jurisdiction. Should the ruling
printo court to dotorminc any queetion concerning tho existonco, of the arbitral tribunal declining its jurisdiction he reversed hy tho
validity and enforceability of such arbitration agreement serving a urt, the parties shall be free to replace the arbitrators ar any one
copy thereof on the respondent in accordance with Rule .4(A) al' them in accordance with the rules that were applicable for the
ointment of arbitrator sought to be replaced.
2.01 WHEN MAY THE PETITION FOR JUDICIAL DETERMINATION
OF THE EXISTENCE, VALIDITY AND/OR ENFORCEABILITY LO1 WHAT IS THE PERIOD FOR FILING THE PETITION?
OF AN ARBITRATION AGREEMENT BE FILED?
The petition zy be filed within 3 days after having received
The petition for judicial determiation of the existence, validity otice of that ruling by the arbitral tribunal
and/or enfrceability
o of an arbitraton agreement may be filed at any
time prior to the commencement of arbitration 1.02 WHERE MAY THE PETITION BE FILED?
Despite the pendeney of the petition provided herein, arbitral The petition may be filed hefore the Region»l Trinl Court of the
proceedings may nevertheless be commerced an continue to the place where arbitration is taking place,ur where any of the petitioners
rendition of an award, while the issue is pending before the court. r respondents has his principal place of business or residence.

2.02 WHERE IS THE FILING OF THE SAID PETITION? 3.03 ON WHAT GROUNDS MAY THE PETITION BE GRANTED?
' petition questioning the existence, validity and enforceability The petition may be granted when the court finds that the
......
 THE ALTERNATIVE DISPUTE RESOLUTION PARTI 41
AND 'THE ARBITRATION LAW Chaptar Tn -Spei! Rule al Court on Altrauuive Dispur Resolution

result af which the srbitral tribunal has no jurisdiction to rocolve the D. REFERRAL TO ADR
dispute.
4.00 WHO MAY MAKE A REQUEST TO REFER THE PARTIES TO
3.04 WHAT ARE THE REQUIRED CONTENTS OF THE PETITION? ARBITRATION?

The petition shall state the following: A party to a pending action filed in violation of the arbitration
agreement, whether vontainpd in an arbitrtion cluse or in a
a. The fnets showing that the person named as pet- bmission agreement, may request the court to refer the parties to
tioner or respondent has legal capacity to sue or be sued;
arbitration in accordance with such agreement
b. The nature and substance of the dispute between
the parties; 4.01 WHEN SHOULD THE REQUEST BE MADE?
c. 'The grounds and the circumstances relied upon by (A) Where the arbitration agreement exists before the action is
the petitioner; and filed. -The request for referral shall be mace not later thnn the pro-
d. The relief's sought. u1al conferenee. After the pre-trial conferenwe, tho court will only act
wn the request for referral if it is made with the agreement of all
In addition to the submissions, the petitioner shall attach to
parties to the case.
he petition a copy of the request for arbitration and the ruling of the
arbitral tribunal. (B) Submission agreement. If there is no existing arbitra-
o agreement st the time the case is filed but the prties sbe s -
The arbitrators shall be impleaded es nominal parties to the
case and shall be notified of the progress of the case. gently enter into an arbitration agreement, they may request. the
surt. to rofer their dispute to arbitration at anv ime during the pro-
rv+lugs,
3.05 MAY THE COURT ISSUE INJUNCTION OVER ARBITRATION
PROCEEDINGS?
·4.02 IS THE ORDER REFERRING THE DISPUTE TO ARBITRATION
No. 'The court shall not enjoin the arbitration proceedings
SUBJECT TO A MOTION FOR RECONSIDERATION, APPEAL
during the pendency of the petition.
OR PETITION FOR CERTIORARI?
Judicial recourse to the court shall not prevent the arbitral
tribunal from continuing the proceedings and rendering its award. No, at order referring the dispute to arbitration shall be imme·
·hatlv executory and shall not be subject to a motion for reconsidera-
3.06 WHEN IS THE DISMISSAL OF THE PETITION APPROPRIATE? on, appeal or petition for cerhiorar

The court shall dismiss the petition if it fails to comply with

1 0 WHAT IS THE PROPER REMEDY TO AN ORDER DENYING
Rule 3.16; or if upon consideration of the grounds alleged and the
THE REQUEST TO REFER THE DISPUTE TO ARBITRATION?
legal briefs submitted by the part is, the petition does not appear to
be prima facie meritorious. An order denying the request to refer the dispute to arbitration
hall wt le subject tu an appeal, but mny he the suhjeet uf motion
3.07 WHAT IS THE REMEDY OF THE AGGRIEVED PARTY ON THE tor rerwswert1on nnd/or a petition fr u certiorari.
ORDER OF THE COURT?
The aggrieved party may file s motion for reconsideration of E. INTERIM MEASURES OF PROTECTION
the order of the court. The decision of the court shall, however, not
be subject to appeal. The ruling of the court affirming the arbitral 'no WHO MAY ASK FOR INTERIM MEASURES OF PROTECTION?
tribunal's jurisdiction shall not be subject to a petition for certiorari.
[Link] 4 .4 .id • +
 THE, AM'TRNA'T[VJ, DINE'T'; It;IL 1IT1»1N II 4:5
ND THE AI&TIRA ION I,\W t'hepit+ T' g st tnl. v+at +'or us le-rtlvr 4pt I{ttin

5.01 WHEN IS THE FILING OF THE PETITION FOR INTERIM .04 WHAT ARF THE INTERIM MEASURES OF PROTECTION THAT
MEASURES OF PROTECTION? A COURT MAY GRANT?

A petition foe an interim measure of protection may he made: [The fllowing,

o among others, aro the interim measures oi pro-
twtion that a court may grant;
a. before arbitration is cummencvd; a. Preliminary injunction directed against n party to
afterrbitrtion is commenced, but before the onns-
b, rbtration;
titution of the arbitral tribunal; or h, Prehminary attachment aginst property or garnish-
c. after the constitution of the arbitrai tribunal and at ment of funds in the eustcd of s bank or a third person;
any tie during arhitral proceedings but. at this stnge, only to c. Appointment of a receiver;
the extent thnt the arbitra! tribunal has no power to act or is
unable tn aet effectively. Detention, preservation, delivery or inspection of
property or
5.02 WHERE IS THE FILING OF THE PETITION? e. Assistance in the enforcement of an interim measure
of protcction granted by the arbitral tribunal, which the latter
A petition for an interim measure of protection may be filed cannot enforce effectively.
with the Regional Trial Court. which has jurisdiction over any of the
following places: 5.05 WHAT SHOULD THE RESPONDENT DO IF HE WANTS TO LIFT
THE TEMPORARY ORDER OF PROTECTION?
a. Where the principal plaee of business of av of the
parties to arbitration ia located; The respondent has» the option of having the temporary order
of protection lifted by posting nn appropriate connter-bond as deter-
b. Where any of the parties who are individuals resides;
mined by the court.
c, Where any of the acts sought to be enjoined are being
performed, tlreateaed to be perlrned or not bcing perfarmed; 5.06 IS THE ORDER OF THE COURT GIVING RESPONDENT AN
ur OPPORTUNITY TO BE HEARD IMMEDIATELY EXECUTORY?
d. Where the real property subject of arbitration. or a Yes, if respondent was given nn opportunity to be heard on a
portion thereof is stunted petitio for an interim measure of protection, any order by the court
shall be immediately executory, but may be the subjert uf a motion
5.03 WHAT ARE THE GROUNDS THAT THE COURT MAY CONSIDER for reconsierntian and/ar appeal or, if warranted, a petition fro
IN GRANTING THE RELIEF? certiorari.
'The following grounds, whil nat limiting the reasons for the F. APPOINTMENT OF ARBITRATORS
court to grant an interim measure af protection, indicate the nature
6.00 WHO MAY REQUEST TO ACT AS APPOINTING AUTHORITY?
af the reasons that the vourt shall consider n granting the relief:
Any party to an arbitration may request the court tn act as an
a. 'T'he need to prevent irreparable loss or injury; nppointing authority in the instances specified in Rule 6.I above.
b. 'The need to provide security for the performance of
any [Link]: 6.01 WHERE IS THE FILING OF THE PETITION FOR APPOINTMENT
OF ARBITRATOR?
e. l'he need to produce or preserve evidence; or
I'he petition for appointment of arbitrator may be filed, at the
d. 'The need to compel any other appropriate at or option of the petitioner in the Regional Trial Court ta) where the
omission, principal place of busincse of any of the parties is lorated, (b) if any of
 PARTI 41
THE. ALTERNATIVE DISPUTE RESOLUTION Chapter Two - Special Rules of Court on Alternative Iipute IR
solution
AND 'THE ARBITRATION LAW
H. TERMINATION OF THE MANDATE OF ARBITRATOR
the parties are individuals, where those individuals reside, or (c) in
the National Capita! Region. 8.00 WHO MAY REQUEST FOR THE TERMINATION OF THE MAN-
DATE OF AN ARBITRATOR AND ON WHAT GROUNDS?
6.02 IS THE ORDER APOINTING AN ARBITRATOR IMMEDIATELY Any of the parties to an arbitration may request for the termi-
EXECUTORY?
nation of the mandate of an arltrator whore an arbitrator becomes
Yes, if the tour appoints an arbitrator, the order appointing de jure or de facto unable to perform hie function or for other reasons
un arbitrator sh he immediately executory and shall not be the fails to act without undue delay and that arbitrator, upon request of
subject of a motion for reconsideration, npponl or certiorari. any party, fails or refuses to withdraw from his office.

6.03 WHAT ABOUT THE ORDER DENYING THE PETITION FOR 8.01 WHERE IS THE FILING OF THE PETITION TO TERMINATE
APPOINTMENT? THE MANDATE OF AN ARBITRATOR?
An order of the court denying the petition for appointment of an
A petition to termate the mandate of an arbitraur may, nt
arbitrator may, however, be the subject of a motion fr reconsider that petitioner's option, be filed with the Regional Trial Court (a)
tion, appeal or certiorari.
where the principal place of business of nny of the parties is located
(b) where any of the parties who are individuals resides, or (c) in the
G. CHALLENGE TO APPOINTMENT OF ARBITRATOR
National Capital Region
7.00 WHO MAY CHALLENGE THE APPOINTMENT OF AN ARB-
TRATOR? 8.02 IS THE ORDER OF THE COURT RESOLVING THE PETITION
IMMEDIATELY EXECUTORY?
Any of the parties to anrbitration may challenge an arbitrator.
Yes, any order of the court resolving the petition shall be irme-
7.01 WHERE IS THE FILING OF CHALLENGE TO AN ARBITRATOR? be
diately executory and shall not subject of a motion for reconsidera-
tion, appeal or petition for certiorari.
The challenge shall bo filed with the Regional Trial Court (e)
where the principal place of business ofany of the parties is located,
(b) if many at tho parties are individuals, where those individuals I, ASSISTANCE IN TAKING EVIDENCE
reside, or (e) in the National Gapitu] egion.
9.00 WHO MAY REQUEST THE COURT FOR ASSISTANCE IN
7.02 WHAT ARE THE GROUNDS TO CHALLENGE AN ARBITRATOR? TAKING EVIDENCE?
An arbitrator may be challenged or any of the grounds fro Any party to an arbitration, whether domestic or foreign, may
challenge provided for in R.A. No. 9285 and its implementing rules, request the court to provide assistance in taking evidence
R.A No. 87& or the Model Law.
9.01 WHEN MAY ASSISTANCE BE SOUGHT?
'The nationality or professional qualification of an arbitrator is
not a ground to challenge an arbitrator unless th parties ave speel Assistance may be sought nt nny time during the course of the
fed in their arbitration agreement a nationality and/or professional arbitral proceedings when the need arises.
qualification for appointment as arbitrator.
9.02 WHERE IS THE FILING OF THE PETITION?
7.03 IS AN ORDER OF THE COURT RESOLVING THE PETITION A petition for assistance in taking evienwe mny, at the option
IMMEDIATELY EXECUTORY? ot' the petitioner, le· lied with Regional Tal Court wlee:
Ye, nnv ardor of the vnut resolving the petitian +hal he
---'-... ·..d uhll mot hw [lw ljgwt nf n ultuni uir (n) nrhit rntiot pr«wv«lings rs· taking platv,
 THE ALTERNATIVE DISPUTE RESOLUTION PARTI 47
4ND THE ARBITRATION LAW Chaptar Two --- Spegal Rules of Cur en Alternative Di»puts essoluton

(h) the witnesses reside ar may be found, or J. CONFIDENTIALITY/PROTECTIVE ORDERS

(c) where the evidence may be found. 10.00 WHO MAY REQUEST CONFIDENTIALITY?
A party, counsel or witness who disclosed or who was compelled
9.03 WHAT IS THE GROUND FOR GRANTING THE REQUEST FOR
to disclose information relative to the subject of ADR under
ASSISTANCE IN TAKING EVIDENCE?
cirumstancos that would create a reasonable expectation, an behalf
The court may grant or execute the request fro assistance in of the source, that the infrmation
o shall be kept confidential has
taking evidence within its competence and acoording to the rules of the right to prevent such formation from being further disclosed
evidence without the epress
x written cunsent of the source or the party who
made the disclasure.
9.04 FOR WHAT ACTS MAY A PARTY REQUIRING ASSISTANCE IN
THE TAKING OF EVIDENCE PETITION THE COURT? 10.01 WHEN IS THE PROPER TIME TO MAKE A REQUEST FOR A
PROTECTIVE ORDER?
A party requiring assistance in tho taking of evidence may
petition the court to direct any person, including a representative of A party may request a protective order at anytime there is a
n corporation, association, partnership or other entity (other than a need to enforce the confidentiality of the information obtained, or to
be obtained, in ADR proceeding3.
party to the ADR proceedings or its officers) found in the Philippincs,
for any of the following:
10.02 WHAT ARE THE GROUNDS FOR GRANTING A PROTECTIVE
a) To comply with a subpoena ad testificandnm and/or sub- ORDER?
poera duces terumn; protective order may bo granted only if it is shown that
b) To appear as a witness before an officer for the taking of the upplicunt would be materially prejudiced by an unauthorized
his deposition upon oral examination or hy written inter- disclosure of the information obtained, or to be obtained. during an
rogatories; ADR procccding.
e) To allow the physical examination of the condition of per- K. CONFIRMATION, CORRECTION OR VACATION
sons. ur the inspection oft things or premises and, when OF AWARD IN DOMESTIC ARBITRATION
ppvoprint¢, tz allow the recording and/or documentation of
condition of persons, things or premises (i.e., photographs, 11.00 WHO MAY REQUEST CONFIRMATION, CORRECTION OR
video, and other means of recording/documentation); VACATION OF AN AWARD IN DOMESTIC ARBITRATION?

d) To allow the examination and copving of documents; and Any party to n domestic arbitration may petition the court to
cunfirm, correct. or vacate dorostie arhitral award.
e) To perform any similar acts,
11.01 WHAT ARF THE PERIODS TO REQUEST CONFIRMATION,
9.05 WHAT IS THE AVAILABLE RELIEF TO A PARTY WHEN THE CORRECTION/MODIFICATION AND VACATION?
COURT DECLINES TO GRANT ASSISTANCE IN TAKING 'T'he following are the periods:
EVIDENCE?
(A) Confirmation. At any time after the lapse of 30 days
The order granting assistance in taking evidence shall be im.- from receipt. by the petitioner of the nrbitral award. he muy petition
mediately executory and not subject to reconsideration or appeal. the court to confirm that award

I! the court deelines to grant assistance in taking evidence, the (I) C'·rrertun/Modufication. Not later than 30 days from
petitioner may file a notion for reconsideration or appoal. the· rltrnl nw:rid, n party may petition th: court to correct!
rev1pt. of
wtlly thl nwrsl
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it) Vacation. Not lter th AR days frat revipt of the 'Flo zwarl my also le v:tenteat on any or all of the following
urbitral award. a party may pottion the court. lo vcute that aw:rd. trout: ± : : -
a. 'The arbitration agreement did nor exist, or is invalid
(D) A petition to vacate the arbitral award ray be filed, in for any ground for the revocation of a contract or is otherwise
opposition to a petition to confirm the arbitral award, not later than
unenforcenble; r
30 day from receipt of the award by the petitioner. A petition to
vacate the nrbitral award fled beyond the reglementary period shail b. Aparty tonrhitration is a minor or a person judicially
he dismissed. declared to be incompetent.
(E) A petition ta confirm the nrhitral award may be filed, in The petition to vacate an arbitral award on the ground that
judicially
opposition to a petition tu vacate the nrltral award, at any time after the party to arbitration is a minor or a person declared t
the petition to vacate sul arbitral award is fled. The dismissal of the be incompetent shall be tiled only on behalf of the minor or 1ncom
petition to vacate the arbitral award for having been filed beyond the petent, and shall allege that: (a) the other party to arbitration had
reglemeutary period shall nor result in the disznissal of the petition knowingly entered inta z submission or agreement with uch nor
for the confirmation of such arbitral award. or incompetent, or (h) the submission to arbitration was made by a

(F) The fling of a petition to confirm an arbital award shall guardian or guardian ad liem who was not authorized to do su by
not authorize the ~ling of n bulated petition to vacate or sot aside
competent ourl.
such award in opposition thereto In deciding the petition to vacate the nrbitral award, the court
shall disregard any ether ground than those enumerated above.
(G) A petition to correct an arbitrel award may he included
as part of a petition to confirm the arbitral award ar as a petition to (B) To correct/modify an arbitral award. -The Court ma5
confirm that award. correct'modify or order the arbitral tribunal to corract/nodly h
arbitral award in the following cases:
11.02 WHAT ARE THE GROUNDS FOR FILING THE PETITION? a. Where there was an evident miscalculation of fg i ures
(A) To vacate an arbitral award. The arbitral award may or an evident mistake in the description of any person, thing OT

be vacated on the fllowing

o grounds: property referred to in the award;
a, 'The arbitral award was procured through corruption, h. Where the arbitrators have awarded upon a matter
fraud ur other undue men3; net submitted to them, not affecting the merits of the decision
upon the matter submitted:
b. There was evident partiality or corruption in the
urbitra! tribunal or any of its members; e. Where the arbitrators have omitted to resolve an
issue submitted tu them for resolution; Dr
c. The arbitral tribunal was guilty of misconduct or any
form of misbehavior that has materially prejudiced the rights of d. Where the award is imperfect in a matter of farm
any party such es refusing to postpone a hearing upon sufficient not affecting the merits of the controversy, and if it had been a
cause shown or to hear evidence pertinent and material to the cGmmissioner's report, the defect could have been amended or
controversy; disregarded by the Court
d One or more of the arbitrators was disqualified to act L. RECOGNITION AND ENFORCEMENT OR SETTING
as such under the law and willfully refrained from disclosing ASIDE OF AN INTERNATIONAL COMMERCIAL
such disqualification; or ARBITRATION AWARD
_e. The nrbitral tribunal exceeded its powers, or so
imperfectly executed them, such that a complete, final and 12.00 WHO MAY REQUEST RECOGNITION AND ENFORCEMENT
definite award upon the subject matter submittod tn them was OR SETTING ASIDE OF AN INTERNATIONAL COMMERCIAL
not made. ARBITRATION AWARD?
tt# ttl1 I tr rt,t pt '1I', 4' 'AM'TN 'AMII l
Ii+ I'i, AK'[Link] 1,w rte 'I • +al Bile-a 4 'mer4 +s runuivw Ii+put Llwdtut

any part t an useful tommereial arbitration in the

ilipt my pwltiu Ile prop· r court. to recognize and enforce or
l
I
lion nv otlwr rs+re from the arbitrnl nwnrd, such as by appeal
ar petiltun for review or petition for certiorari or otherwise, shall be
呸 «tu»missed by the cvuurt.
set. aside an arbitraul wrd

12.01 WHEN IS THE FILING OF THE PETITION TO RECOGNIZE 12.04 WHAT IS THE PRESUMPTION WITH RESPECT TO AN ARBI-
AND ENFORCE OR SET ASIDE AN INTERNATIONAL COM- TRAL AWARD?
MERCIAL ARBITRATION AWARD? It is presumed that an arbitral award was made and released
(A) Petit lo recognize and enforce. The petition for en- j in due course and is subject to enforcement by the court, unless the

I
focerent and recognition of an abitral uward may be filed anytune advurse party is able u establish a ground for setting aside or not
from receipt of the award. If, however, a timeiy petition ta set aside enforcign an arbitral award.
un arbitral award is filed, the opposing party must file therein and in
opposition thereto the petition tor recognition and enforcement of the M. RECOGNITION AND ENFORCEMENT OF A FOREIGN
same award within the period for filing an opposition, ARBITRAL AWARD
() Petition tu set aside. The petition ta set. aside an arbitral 13.00 WHO MAY REQUEST RECOGNITION AND ENFORCEMENT
award mny only be tiled within three months fro the time the OF A FOREIGN ARBITRAL AWARD?
petitioner receives a copy thereof. lf n timely request is made with the
arbitral triburuul for correction, interpretation or additional award. Any party to a foreign arbitration ray petition the court tu
the three-month period shall be counten from the time the petitioner recognize and entare n foreign arbitral award.
receives the resolution by the arbitral triburnl of that request.
13.01 WHEN IS THE FILING OF THE PETITION TO RECOGNIZE
A petition to set aside can no longer bc fled after the lapse of AND ENFORCE A FOREIGN ARBITRAL AWARD?
the three-month period. The dismissal of a pettiwn to set aside an
arbitrl award for being time-burred shnil not automatically result At any time after receipt of a foreign arbitral award, any party to
arbitration may petitinn the proper Regional Trial Court to recognize
in the appron! of the petition filed therein and in opposition thereto
for recognition and enfrcement
o of the same award Failure to file a and enforce such award
petitian to set aside shall preclude a party from raising grounds to
resit tnfurcement f the award. 13.02 WHERE IS THE FILING OF THE PETITION TO RECOGNIZE
AND ENFORCE A FOREIGN ARBITRAL AWARD?
12.02 WHERE IS THE FILING OF THE PETITION TO RECOGNIZF The petition to recognize and enforce a foreign arbitral award
AND ENFORCE OR SET ASIDE AN ARBITRAL AWARD? shall be filed, nt tbe option of the petitioner, with the Regional Trial
A petition to recognize nnd enforce nr set asiule un arbitral Court: (a) where the aasets to be attached ur levied upan is located,
award may, at the option of the petitioner, he filed with the Regional tb) where the act ta b enjoined is being performed, ic) in the principal
Trial Court; (a) where arbitration proceedings were conducted; (b place of business m the Philippines of any of the parties (d if any af
where any of the nssets to be attached or levied upon is located; (c) the parties is an individuai, where any of those individuals resides,
where the act to be enjoined will be or is being performed, (d) where or (e) in the National Capital Judicial Region.
any of the parties tu arbitration resides or ha its place af business,
or (e) in the National Capital Judicial Region. N. PROVISIONS SPECIFIC TO MEDIATION

12.03 WHAT IS THE RECOURSE AGAINST AN ARBITRAL AWARD? 14.00 WHAT RULES SHALL BE APPLIED IN MEDIATION?

Recourse tu a court agaunst an arbitral award «hall be made Whenever applicable and appropriate, the pertinent rules on
only through a petition to set aside the arbtrs! award and on grounds arbitration shall be applied in proceedings before the court relative
prescribed by the law that governs international commercial arbitra- to a dispute subject to mediation
 ·t.' I. A'TRNA'TWI I:'T i,
IRED\Ar\'IN I'Ai?TI .l
NI THE, II'I&ATON 1.w
t 'hptr'Two 'seil Huls oA mitt [Link] pnte ltenlut inn

O. REFERRAL TO CIAC 18.01 HOW SHOULD AN APPEAL BE TAKEN?

15.00 MAY THE COURT DISMISS A CONSTRUCTION DISPUTE Appel shall be taken by filing a verifcd petition for review in
BEFORE IT? wven legible copies with the Court of Appeals, with proof of service of
_A Regional Trial Court before which a construction dispute is n copy thereof on the adverse party and on the Regional Trial Court
fled shall, upon becoming aware that the parties have entered into 'I'he original copy of the petition intended for the Court of Appeals
an arbitration agreement, mot proprio or upon motion made not hall be marked original hy the petitioner.
later than the pre-rial, dismiss the case and refre the parties to
arbitration to be conducted by the Construction Industry Arbitra- Upon the fling of the petition and unless otherwise prescribed
ion Commission (CIAC), unless all parties to arbitration, assisted by the Court of Appeals, the petitioner shall pay to the clerk of
by their reapeetive counsel, submit to he court a written agreement court of' the Court of Appeals docketing fees and other lawtul fees of
making the court, rather than the CIAC, the body that would exclu- P3.500.00 and deposit the sum of [Link] for costs.
sively resolve the dispute
Exemption from payment of docket and other lawful fees and
the deposit for costs muy be grunted by the Court of Appals upon
P. PROVISIONS SPECIFIC TO OTHER FORMS OF ADR verified motion setting farth valid grounds therefor. If the Court
16.00 IS THIS RULE APPLICABLE TO OTHER FORMS OF ADR? of Appeals denies the motion, the petitioner shall pay the docketing
Yes. Tbis
rule governs the procedure for matters brought before
and other lawful fees and deposit. for costs within 15 days from the
notice of the denial.
the court involving the following frms
o of ADR:
a. Farly neutral evaluation;
Special Civil Action for Certiorari
b. Neutral evaluation;
c. Mini·trial: 19.00 MAY A PARTY FILE A SPECIAL CIVIL ACTION FOR CERTIO-
d. Mediation-arbitration: RAR/?
e. A combination thereof;, or Yes. When the Regional Trial Court, in making a ruling
f. Any other ADR form. under the Special ADR Rules, has acted without or in excess of its
jurisdiction, or with grave abuse of discretion amounting to lack or
excess of jurisdiction, aud there is no appeal or any plain, speedy,
Q. MOTION FOR RECONSIDERATION, APPEAL
and adequate remedy in the ordinary course of lnw, a party may file
AND CERTIORARI
a special civil action for certiorari to annul or set aside a ruling of
Motion for Reconsideration the Regional Trial Court.
17.00 WHEN IS THE FILING OF A MOTION FOR RECONSIDERA- A special civil action for certiorari may be fled against the
TION? following orders of the court:
A motion for reconsideration may he filed with the Regional a. Holding that the arbitration agreement is inexistent,
Trial Court within a non-extendible period of i5 dnys from receipt of invalid or unenforceable;
the questioned ruling or order.
b. Reversing the arbitral tribunal's preliminary deter-
Appeals to the Court of Appeals miration upholding its jurisdiction;
18,00 WHEN IS THE FILING OF APPEAL? c. Denyingtherequosttoreferthe dispute to arbitration;

'The petition for review shall be filed within 15 days from d. Granting or refusing an interim relief;
notice of the decision of the Regional Trial Court or the denial oft the e. Denying a petition for the appointment of an arbi-
petitioner's motion for reconsideration. trator;
 1d
TI! A FER,TI'E TH'TIT'E u
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'I 'TH AMIT1A'THIN 1,
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tip+al lHule. 4 4out in Alt+rt· lhwput: lluewlatun
t,

£ ·
ohhrming, va&ti or correiip 4 g
tw'al award; 'r ' il
a
«unwute arb The more fact that the petitioner disagrees with the Court of
4pals' determmation of questions of fact, of law or both questions
g. S di
tions Den« ng the proceedings to set aside ar interna- of' fact nd law, shall not warrant the exercise of the Supreme Court's
a1 commercial arbitrnl award and referring tbs. .p
the arbitral tribunal; ' e Dack to lawretionary power. 'The error imputed to the Court of Appeals must
he rounded upon any of the above prescribed grounds fro review or
;%1
h, Allowing 'S
a party
't
to en!-
'Tioret I International turnmcr. be closely analogous thereto.
), ,
c±at arbitral award pending appenl;
A mere general allegation that the Court of Appeals bas
,' Adjourning or deferring a ruling on whether to set committed serious and substantial error or that it bas acted with
ete. recognize and or enforce an international comrnercial grave abuse of discretion resulting in substantial prejudice ta the
arbitral nward;
petitioner without indicating with specificity the nature of such
d?' Alowing a part .Y to ኏JUCJl'l•t..1 fi i.)r኏኏ru•[Link] sward error or abuse of discretion and the serious prejudice suffered by the
peneng appeal; an~i petitioner on account thereof, shall constitute sufficient ground tro
the Supreme Court to dismiss outright the petition.
k. Denying a petition [or assistance in toking evidence
20.1 WHO MAY FILE A PETITION WITH THE SUPREME COURT ?
Appeal by Certiorari to the Supreme Court
A party desiring to appeal by certiorari from a judgrent or final
20.00 IS REVIEW BY THE SUPREME COURT A MATTER OF RIGHT?
order or resolution of the Court of Appeals issued pursuant to these
ors~,"""" by te supreme Court is not a matter of might, hue
Uieial discretion, which will be granted vnl)' far serious
Special ADR Rules may file with the Supreme Court a verified petition
for review on certiorari. 'The petition shall raise only questions of law.
anu <l compelling reason lt :
re;

party. r reaurtng in grave prejudiwe to the aggrieved which must be distinctly set forth.

Th኏.follown,g whiJo neither rtmtroH1ng- nor n,Jl ..

Jn.f'[Link] g"
Online Dispute Resolution
tl e court's discrst , serious and
: eon, nu diRate the com; Ilia.
necessarily, restrictive nature nf the gr de t}, will Pe\Hug, ant 21.00 IS THE SPECIAL ADR RULES APPLICABLE TO ONLINE DIS-
exercise f ti S ' Tuns that warrant the PUTE RESOLUTION?
, se or e tiupreme Curt's discretionary pow
·ers, whh th
ers.

Court of Appeal; '' en the

Yes, whenever applicable and appropriate, the Special ADR
Rules shall govern the procedure for matters brought bofore the
. j,~,_"ailed
uu
to apply the appliesble standard or test for
cal review prescribed an these Special AD l :. court involving Online Dispute Resolution
ving at its do - . " 1uIRs 1n arri-
er1son resulting in substantial prejudice t th
grieved party; w te 21.01 WHAT IS THE SCOPE OF ONLINE DISPUTE RESOLUTION?

,,"Erred in upholding a final order or decision despite

rde1 uek Ct 1u_r1Sfuchon af the court that
Online Dispute Resolution shall refer to all electronic forms of
ADR including the use of the internet and other web or computetd
rendered such final
o ter or derision; based technologies for facilitating ADR.
c. Failed toapplyanyprove·
contained in these Sp«ial 5re
: CI Aul
'? It
~"""
.: .:.
Dreiple, poly or rule
le resulting in substantial
prejudice ta the aggrieved party; and 5 ' SnU4

d. Committed an error so egregious and harmful to a

party as to amount to nan uneninble excess of jurisdiction.
 PT1 5i
hp:l me·nnt Hals. nd Kvulatim- cf the Alternative
eputu Resolution Act u! 20OM

(d) 'lo enlist active private sector participation in the

settlement of disputes through ADR. (Article I.2)
CHAPTER THREE
1.02 WHAT ARE THE CASES WHEREIN THE ADR ACT DOES NOT
IMPLEMENTING RULES AND REGULATIONS APPLY?
OF THE ALTERNATIVE DISPUTE 'The provisions of the ADR Act shall not apply tu the resolution
RESOLUTION ACT OF 2004 or settlement of the following:

DOJ DEPARTMENT CIRCULAR NO. 98 (a) labor disputes covered by P,D, No. 442, otherwise
known as the "Labor Code of the Philippines, as a amended."
Pursuant to Section 52 of RA. No. 9285, otherwise known as and its Implementing Rules and Regulations;
the "Alternative Dispute Resolution Act of 2004 ('ADR Act"), the (b) the civil status of persons;
following Rules and Regulations (these Rules") are hereby promul
gated to implement. the provisions of the ADR Art (c) the validity af marriage;
(d) any ground for legal separatiun;
Chapter 1
(o) the jurisdiction of courts;
GENERAL PROVISIONS
(f future legitimate;
RULE 1 -- Policy and Application
(g) criminal liability;
1.00 WHAT IS THE PURPOSE OF THESE RULES?
(h) those disputes which by law cannot be compromised;
Article 1.I provides that these Rules are promulgated to pre- nnd
scribe the procedures and guidelines for the implementation of the
ADR Aet. () disputes referred to court-annexed mediation.
(Article 1.3)
1.01 WHAT IS THE DECLARED POLICY OF THE STATE?>
1.03 DOES THE ELECTRONIC SIGNATURE AND E-COMMERCE
It is the policy of the State: ACT APPLY TO ADR PROCEEDING?
() To promote party autonomy in the resolution of dis-. The provisions of the Electronic Signature an E- Commerce
putes or the freedom of the parties tu rake their own arrange- Act, and its implementing Rules and Reulations shall apply to
tents ta resolve their disputes; proceedings contemplated in the ADR Aet. (Article 1.4)
(b) Ta encourage and actively promote the use of
1.04 WHAT IS THE LIABILITY OF ADR PROVIDERS/PRACTITO-
Alterative Dispute Resolution ("ADR") as an important
NERS?
means to chicve speedy and impartial justice and declog court
dockets; Tho ADR providers/practitioners shall have the same civl
liability for acts done in the performance of their offeil duties us
(c) To provide means for the use of ADR as an efficient
that of public officers as provided in Section 38 (1), Chapter 9, Book
tool and an alternative procedure tor the resolution ot appro- 1 of the Administrative Code of 1987, upon clear showing of bad
priato cnses; and
faith, malice or gross negligence. (Article 1.5)
66

g
 '[It' AI,I+u'It pw4rt 1Re'M 1it
ND 'HI II"I;'TK, 1W I'I;1' 5Mi
I'lter T'ls ld+vent Hula .d Gelatin. st tho Altornutru
I)irat eobutun wt f zit·4
RULE 2 - Definition of Terms
• Authenticnte
1.05 DEFINE THE FOLLOWING TERMS. Ir menns to sign. execute, adopt u symbol or
F'or purposes of these Rules, the term shall be defined as encrypt n record or establish the authenticity cf a
follows: record or term.
A. Terms Applicable to All Chapter 6. Award
1. ADR Provider Any partial or final decision by nn arbitrator in
resolving the issue or [Link],
The institutions ur persors accredited ns
mediators, conciliators, arbitrators, neutral evu- 7. Confidential Information
luators or ny pcrson exercising similar functions Anvinformation, rolntive ta the subject of media
in any alternative dispute resolution system. This tion or arbitration, expressly intended hy the source
is without prejudice to the rights of the parties to not to be disclosed, or obtained under circumstances
choose non·accredited individuals to act as mediator that would create reasonable expectation on behalf
conciliator, arbitrator or neutral evaluator of their of the source that the information shall not be dis-
dispute, closed. IL shall inelude:
2, Alternative Dispute Resolution System ta) communication, ural or written, md in a dis-
pute resolution proceeding, including any me-
Any press or procedures used to resolve a dis-
moranda, notes or work product of the neutral
pute or controversy. other than by adjudication of n
party or nun-party participant;
presiding judge of a cuurt or an officer of a govern-
ment agency, as defined in the ADR Act, in which (b) oral or written statement made or which
neutral third person participates to assist in the res- occurs during mediation or for purposes of con-
olutinn of issnes, including arbitration. mediation, sidering, conducting, participating, initiating,
conciliation, early neutral evaluation, mini-trial or continuing or reconvemng medintion or retain-
any combination thereof ing a mediator, autd
(c) pleadings, motions, manifest»tions, witness
83. Arbitration statements, reports tiled or submitted in arbi-
A voluntary dispute resolution process in which tration or for expert evaluation.
one or more arbitrators, appointed in accordance
with the agreement of the parties or these Rules, 8. Counsel
resolve a dispute by rondaring an award. A iawyer dly admitted to the practice nf law in
tho Philippines and in good standing who represents
4. Arbitration Agreement a party in any AD process.
An agreement by the parties to submit to
arbitration nll or certain disputes which have arisen 9. Court
or which may arise between them in respect of a The Regional 'Trial Court except insofar as
defined legal relationship, whether contractual or otherwise defined under Model Law.
not. An arbitration agreement mnay be in tho form of
10. Government Agency
n arbitration clause in a contact or in the form aof' Any governmental entity, office or officor,
&eparte agreement.
other than a court that is vested hy law with quasi-
 ult P'HE I'T'EI&NA'T1NI 'IF'IT I(EI"ON
'AK'TI 6l
AND 'T'HI AWW'TWT[UN 1 AW
htuvr Threw hplee· ti 4l, al galtutiunus of th iterative
[put telntitin Act af '2OD
judicial power or the power to resolve or adjudicate 4. Court-Referred Mediation
disputes involving the government, its agencies and
instrumentalities or private persons, Mediation ordered by a court to be condueted in
accordance with the agreement of the pnrties when
11. Model Law an action is prematurely commenced in violation of
The Model on International Commercial Arbi- such agreement.
tration adopted by tho United Nations Commission 5. Certified Mediator
on International Trade Law on 2I June 196. A mediator certified by the office for ADR as
12. Proceedings having successfully completed its regular professional
training program
The judicial, administrative or other ndjudi.
cative process, including related pre-bearing or post 6. Mediation
hearing motions, conferences and discovery. A voluntary process in which a mediator, selected
13. Record by the disputing parties, faeihitates communication
and negotiation, and assist the parties in reaching a
The information written on a tangible medium voluntary agreement regarding a dispute.
or stored in an electronic or other similar medium,
7. Mediation Party
retrievable in a perceivable frm.
o
A porson who parheipatas m a medition and
14. Roster whose consenr is necessary to resole the dispute
A list of persons qualified to provide ADR cer-
8. Mediator
vices us neutrals or to serve ns arbitrators
A person who conducts mediation,
15. Special ADR Rules
9. Non-Party Participant
'The Specai l Rules of Court on Alternative Dispute Resolution A person. other than a party or mediator, who
issued by the Supreme Court on September 1, 2009.
participates in a mediation proceeding as a witness,
A. Terms Applicable to the Chapter on Mediation resource person or expert.
1. Ad hoe Mediation B. Terms Applicable to the Chapter on International
Commercial Arbitration
Any mediation other than institutional or court
annexed. 1. Appointing Authority
A used in the Model Law sallh mean the person
2. Institutional Mediation or institution named in the arbitration agreement as
Any mediation process conducted under the the appointing authority; or the regular arbitration
rules of a mediation institution institution under whose rules the arbitration is
agreed to be conducted. Where the parties hnve
3. Court-Annexed Mediation agreed to submit their uispute to institutional nrbi
A mediation process conducted under the aus- tration rules and unless they have agreed to a diffe-
pees of the court and in accordance with Supreme rent procedure, they shall be deemed to have agreed
Court approved guidelines, after such court has to the procedure under such arbitration rules for the
acquired jurisdiction of the dispute. selection and appointment of arbitrators. In ad hoc
arbitration, the default appointment of an arbitrator

=
 l it1 d
THE, ALT\RNA'TIW IMS'HT ILOArT'I'W
I hate Flss le nt lu le ul lHejlfwts of the Alternative
AND THE AHITRATION LAW
rue· i+[Link] et at (NL

shall be made by the National President of the Inte- (h) one of the following places is situated out-
tr
grated Bar of the Philippines (IBP) or his/her duly side the Philippines in which the parties
! have their plces of business

i
authorized representative. 7

(i) the place of arbitration if dotermine«d

2. Arbitral Tribunal (under the Madel Law) in, or pursuant to, the arbitration
A sole arbitrator or a panel of arbitrators. r
« ugeerent;
3. Arbitration (ii) an place where a substantial part
of the obligations of the commercial
Any arbitration whether or not administered by relationship is to be performed or the
a permanent arbitration institution. place with the subject matter of the
4. Commercial Arbitration dispute is most closely connected; or
An arbitration that covers matters arising from (e) the parties have expressly agreed that the
all relationships of a commercial nature, whether subject mntter of the arbitration agree-
contractual or not. Relationships of a commercial mont relates to more than one country.
nature include, but are not limited to, the following For this purpose:
commercial transactions: any trade transaction for
(a) if a party hns more than one place af busi
the supply or exchange of goods or services; distribu- ness, the place of business is that which
tion agreements; construction of works; commercial has th closest relationship to the arbilr-
representation or agency; factoring; leasing; consul- tion agreement;
ting; engineering; licensing; investment; financing;
banking; insurance; joint venture and other forms of (b) if n party does not have a plnce of business,
industrial or business cooperation; carriage of goods reference is to be made t his/ner habitual
or passengers by air, sea rail or road. residence,
5. Convention Award 9. New York Convention
A foreign arbitral award in a Convention State. The United Nations Convention of the Recog-
nition and Enforcement of Foreign Arbitral Awartde
6. Convention State approved in 1958 and ratifed by the Philippine
A state that is a member of the New York Con- Senate under Senate Resolution No, 7l.
vontion. 10. Non-Convention Award
7. Court A foreign arbitral ward made in a state, which
Under the Model Law, it moans a body or organ is not a Convention State.
of the judicial system of the Philippines (i.e., the 11. Non-Convention State
Regional 'Trial Court, Court of Appeals, and Supreme A state that is not a member of the New York
Court).
[Link].
8. International Arbitration C. Terms Applicable to the Chapter on Domestic Arbi-
An Arbitration where: tration
(a) the parties to an arbitration agreement L. Ad hoe Arbitration
have, at. the time of the conclusion of that
agreement, their places of business in An arbitration admins i tered by an nrbitrator
different states; or and'or the parties themselves. An arbitration admi-
t4 TI(E, AL'TERNTW STU'TE HES4LA'TON
irIt t
ANM TWF AHII'!KA'TTON 1AW t'hate '['ls l pl+rent i; Inho. +ul {vultius f th Altera1i
Jul IA+dt et t' 2of1

mistered by an institution shall be regarded as ad hoe rities end Exchange Commission (SEC) and engaged
arbitration if such institution is not a permanent or in, among others, arbitration of disputes in the Phi-
regular arbitration institution in the Philippines. lippines on a regular and permanent basis.

2. Appointing Authoriry in Ad Hoe Arbitration IL. Request for Appointment

In the absence of an agreement, the National The letter-request to the appointing authority
President of the IBP or his/her duly authorized repre- of either sr both parties for the appointment of arbi-
sentativc. trator's or of the two arbitrators first appointed by
the parties for the appointment of the third member
3. Appointing Authority Guidelines
of an grbitral tribunal.
'The set of rules approved or adopted by an
appointing authority for tho making of a Request for 12. Representative
Appointment, Challenge, Termination of the Man- A person duly authorized in writing b n party
date of Arbitrator!'s and for taking action thereon. to a dispute, who could he n counsel, a person in his!
her employ or any other person of his/her choice, duly
4. Arbitration
authorized to represent said psrty in the arbitration
A voluntary dispute resolution process in which proceedings
one or more arbitrators, appointed in accordance
with the agreement of the parties or these Rules, 13. Respondent
resolve a dispute hy rendering sn award. The person/s against whom the claimant com-
5. Arbitral Tribunal mencehs arbitration
A sole arbitrator or a panel, board or committee 14. Written communication
of arbitrators. 'Ibe pleading. motion, manifestation, notice,
6. Claimant ordor, award and any other document or paper sub
mitted or filed with the arbitral tribunal or delivered
A person/s with a claim against another and
to a party.
who commence/s arbitration against the latter.
7. Court D. Terms Applicable to the Chapter on Other AD
orms
Unless otherwise specified in these Rules, a
Regional Trial Court. 1. Early Neutral Evaluation
8. Day An AD process wherein parties and their
A calendar day. lawyers are brought together early in the pre-trinl
phase to present summaries of their cases and to
9. Domestic Arbitration receive a non-biding assessment by an experience d
neutral person, with expertise in tho subjoct matter
An arbitration that is not international as
defined in Article 1(8) of the Model Law. or substance of the dispute.

10. Institutional Arbitration 2. Mediation-Arbitration or Med-Arh

A two-step dispute resolution process involving
An arbitration administered by an entity, which
is registered as a domestic corporation with the Secu-
mediation and then fallowed bv [Link]
 GG TH AH'T'EI'NATIVE DIAM'TE +:ut 1tu
'NI» 'FIE AM{TI'TIWN 1,W PM;TI u7
tht+ 'T1er Ih equr lode. l It+utatos of th. iterusteve
b:paste llslt n
io et ' o!M
3. Mini-trial
I () 'To certify those who have successfully completed the
structured dispute resolution method in regular professionn training program provided hy the OADR;
which the mwrits of a ease are argued betore a panel 1
1
(f) To charge for service rendered such n8, among others,
comprising of senior decision·makers, with or without. I

the presence of a neutral third person, before which for training and certifications of AD providers;
Lhe parties seck a negotiated settlement. (Article [.6) (g) To aceept donation, grants and other assistance
from local and foreig sources; and
Chapter 2
th) To exercise such other powers as may be necessary
THE OFFICE FOR ALTERNATIVE DISPUTE RESOLUTION
and proper tu curry into effect the provisions of the ADR Act.
RULE 1 -- Office for Alternative Dispute Resolution (QADR) (Article 2.2)
1.00 WHAT IS THE OFFICE FOR ALTERNATIVE DISPUTE RES0. 1.02 WHAT ARE THE FUNCTIONS OF OADR?
LUTION?
The OADH shall have the following fictions:
The 0AD is an agency attached to the Department of Justice.
It shall have a Secretariat and hall he leaded by an Executive (a) To promote, develop and expand the use of ADR in
IJirector, who shall be appointed by the President of the Philippines, the private and puble sectors through infornation, education
taking into consideration the recommendation of tho Secretary of and communicnton;
Jstice. (Article 2.1)
(b) 'To monitor, study and evaluate the use of ADR by
the private and public sectors for purposes of, among others,
1.01 ENUMERATE THE POWERS OF THE OADR. poliey formulation;
The OADR shall have the following powers: (¢) 'To recommend to Congress needful statutory
(a} To act as appainting authority of mediators and arbi. changes ta develop, strengthen and prove ADM; practices n
tratars when the parties agree in writing that it shall be empo accordance with international professional standards;
wered to do so;
(d) 'To mnke studies on nnd provide Linkage for tie
(b) Ta conduet seminars, symposia, conferences and development, implementation, monitoring and evaluation of
other public fora and publish proceedings of said activities and government and private AD programs and secure information
relevant materials/intmtion that would promote, develop about their rospoctive administrauve rules/procedures, pro-
and expand the use of ADR: blems encountered nnd how they were resolved;

(c) 'To establish an ADR library or resource center (e) 'To compile and publish hist or roster of ADIR provi.
where ADI laws, rles and regulation, jurisprudence, hooks, ders/practitioners, who have undergone training by the 04DR,
articles ard other informntion about AD in the Philippines or hy such traiming prosiders/institutions recognized ur certified
and elsewhere may be stored and accessed; by the OADR as performing functions in any ADIR system. The
list or roster shall include the nddresses, contact numbers, e-mail
(d) To establish training programs fur ADR providers addresses, ADR service/s rendered te.g., arbitratian, mediation)
practitioners, hoth in the public nnu private seetors; 2nd to uu- antd experience in ADR of the ADR providers/practitioners;
dertake periodic and cantinuing training programs for arbitra
tion and modiation and charge fees on participants. It may do (f) To compile a list. ur roster of foreign or international
so in conjunction with or in cooperation with the IBP, private ADR providers'practitioners. The list or roster shall include the
AD organizations, nnd local and forcgn government offcee addresses, contact numbers, c-mail addresses, ADR service's
and agencies and interuationnl organizations; rendered (e.g., arbitration, mediation) and experience in ADR
of the ADR providers/practitioners; and
 ti
!'HE AETNA'TIVI DH{PIT' REO Th Pvt htl
ANT THE ARRI"TRATION LAW tp»ts· 'Tlsr lleft Mulr+ na Ilti ms l ffw lirtativw
lats Ii »tuts
+ t, l' ;otM
(g) To perform such other functions as may be assigmel te it 1.01 WHAT IS THE STATE POLICY ON MEDIATION?
(Article 2.3) 'Hns to ,

RULE 2- The Advisory Council j ln app?ying and construing tho provisions of these Rules,
vonsideration must be given to the need to promote candor of parties
and modiators through confidentiality of the mediation process, the
2.00 WHAT IS THE COMPOSITION OF THE ADVISORY COUNCIL?
oliey of fostering prompt, economical and amicable resolution of
An Advisor Council is composed of n representative from each disputes in accordance with principles of integrity of determination
of the folowing: by the parties and the poliey that the decision-making authority in
(a) Mediation profession; the mediation process rests with the parties.

(h) Arbitration profession, party may peuton n court befare which ar action is prema-
turely brought. in a matter which is the subject of a mediation agree-
(c ) ADR organizations; ment, if at east one party so requests, not later than the pre-trial
(d) IBP; and conference or upun the request of both parties thereafter. to refer the
parties to mediation in accordance with the agreement of the parties.
(o) Academe. (Article 3.2)
l'he members of the Couneil, who shall be appointed by rhe RULE 2-- Selection of a Mediator
Secretary of Justice upon the recommendation of the OADRR Fee
eutive Director, shall choose a Chairman from among themselves 2.00 DO PARTIES HAVE THE RIGHT TO SELECT A MEDIATOR?
(Article 2.5) ' ' Yes. the purties have the freedom to select. mediator. 'The parties
may request the 0ADR to provide them with a list or roster or the
2.01 WHAT IS THE ROLE OF THE ADVISORY COUNCIL? r~sum~s of its certifed meditors. The O\DH may be requested to
inform he mediator of his/her seiertion. (Article 3.3)
The Council shall a&vise the Executive Director on policy, opera-
tonal and other relevant matters. The Council shall meet regularlv 2.01 WHEN MAY A MEDIATOR BE REPLACED?
at least once every two months, or upon call by the Executive Director.
(Article 2.6) ' If the mediator selected is unable to act as such for any renson,
the parties may, upon being informed of such fact, select another
Chapter 3 mediator. (Article 3.4)
MEDIATION
2.02 WHAT ARE THE GROUNDS WHEREIN A MEDIATOR MAY
RULE 1 -- General Provisions REFUSE OR WITHDRAW AS SUCH?
1.00 WHAT IS THE SCOPE OF APPLICATION OF THE IMPLEMEN- A mediator may refuse from acting as such, withdraw or may
TING RULES? be compelled to withdraw fror mediator proceedings under the
following circumstances:
'These Rules apply tu voluntary mediation, whether ad hoe or
institutional, other than court-annexed mediation and only in default ta) If any of the parties so requests the mediator to with-
of an agreement af the partes on the applicable rules. draw;
These Rules shall also apply to all cases pending before an (b) The mediator does not have the qualifications, train-
administrative or quasi-judicial ageney that are subsequently agreed ing and experience to enable him/her tu meet the reasonable
upon by the parties to be referred to mediation. (Artieie 3.1) expectations of the parties:
(c) Where the mediator's impartially is in question;
 Tw1I 1 I
I'HE, ALT'iNNTIVF BISI'HJ' HI'NOH IW'TH+l
NI 'T'HE IR'TRATKIN LAW l It@nuts td the ltv±at-wt'
lo+lent+ nty; I{ulo
I pt Iteulutiuet of 2004

(d) If continuarion of the process would violate any ethi- herself out or give the impression that helshe does
cal standards; not bsve.
(e) If the safety of any of the parties would be jeopardized; Upon the request of a mediation par, an indi-
vidual who is requested to serve a radiator shall
(f)y If the medintor is unable to provide effective services; disclose his/her qualifications to mediate a dispute
(g) ln case of conflict af interest; and (Artele.6)
(d) In any of the following instances, if the mediator is B. Impartiality
satisfied that:
A mediator shall maintain impartiality:
(i) one ar more of the parties is/are not acting in (a) Before accopting a mediation, an individual whu i
good faith;
requested to serve as methitar shall:
(i) the parties' agrcement would be illegal or in- (i) make n inquiry that is reasonable under the
volve the commission of a crime: circumstances to determine whether there aro
(ii] continuing the disputo resolution would give known facts tht a reasonable individual would
rise to an appearance of' impropriety; consider likely to affect the impartiality af the
mediator, including a financial or personal
(iv) continuing with the process would cause signifi- ·lerest in the outcome of the mediation antd
cant harm to a non-participating person or to any 1.. ~%, wtith a p artyJ
nu existing or past relation&hp
the public; or of farceeeable participant in the mediation; and
(v) continuing discussion would not be in the best (i) disclase to the mediation parties any such fact
interest uf tho parties, ther minor children or known or learned as soon as practical before
tbe dispute resolution process. (Article 3.5) accepting n mediation,
(b) If a mediator learns any fact descrihod in paragraph
RULE 3 - Ethical Conduct of a Mediator (a) (i) of this Article after accepting a mediation, the
mediator shall disclose it as soon as practicable to
3.00 EXPLAIN THE FOLLOWING TERMS AS ETHICAL CONDUCT
the mediation parties. (Article 3.7)
OF A MEDIATOR
A. Competence C. Confidentiality
A mediator shall keep in utmost confidence all con-
It is not required that a mediator shall have special
[Link] information obtained in tle course of the media
qualifications by background or profession unless the
special qualifications of a mediator shall: tion process
A mediator shall discuss issues of confidentiality
(a) maintain and continually upgrade his/her profe. and the extent of confidentiahty provided in any private
ssional competence in mediation skills; sessions or caucuses that the modiator holds with a par!y
(b) ensure that his/her qualifications, training and expe- (Article 3.8)
rience nre known to and accepted by the parties; and
D. Consent and Self-Determination
(c) serve only when his/her qualifications, training ard
(a) A mediator shall make reasonable efforts to ensure
experienee enable hi/her to meet the reasonable ex- that each party understands the nature and cha-
pectations of the parties and shall not hold hirslf/ ractr of the mediation proceeding including private
 'J ; AL 'TENA'!TV TISH'HT, R;RI 'e1 1Aw'l' I t
NI 'TH KT{A'TIN 1,AW 'lpts 'Threw lple'my Kole t Hr· ltr t p+ \l! .ltv+'
bus;ulu lilt w1 al' ''944

(d) If continuation of the prowess would violate any othi herself out or give the prvssun that he#she does
cal standards; not have.
(e) Ifthe safety of any of the parties would be jeopardized; Upon the request of n mediation party. an indi-
idunl who is requested ta servo ns mdiator ehatl
(f) If the mediator is unable to provide effective services; disclose his/her qualifications to mediate n dispute.
(g) In case of conflict of interest; and {Article 3.6)
(h) In any of the following instances, if the medintor is B. Impartiality
satisfed that.
A mediator shall maintain impartiality:
() one or more of the parties is/are not acting in
(a) Befreo accepting a mediation, an individual who is
good faith; rquested to serve as a mediator shall:
(ii) the parties' agreement would be illegal or in- 6) make an inquiry that is reasonable under the
vulve the commission of' a crime; circumstances ta determine whether there are
(iii) continuirg tbe dispute resolution world give known facts thnt a reasonable individunl would
rise to an appearance of impropriety; consider likely to affect the impartiality of the
mediator, including a financial or personal
(iv} continuung with the process would cause signili- interest in the outcome of the mediation and
cant harm to a non-participating person or to any existing or past relationship with a party
the public; or of foreseenble participant. in the mo&intian; and
(v) continuing discussion would not be in the best (ii) disclose ta the mediation parties any such fact
interest of the parties, their minor children or known or learned as soon as practical before
the dispute resolution process. (Article 3.5) accepting a mediation.
0) If amediator learns any fact descrihed in paragraph
RULE 3 -- Ethical Conduct of a Mediator (a) () of this Article after accepting a mediation, the
mediator shall disclose it us eoon a8 practicable to
3.00 EXPLAIN THE FOLLOWING TERMS AS ETHICAL CONDUCT
the mediation parties. (Article 3.7)
OF A MEDIATOR.
A. Competence C. Confidentiality
A metiaor shall keep in utmost confidence all eon-
It is not required that a mediator shall have special
fidential information obtained in the course of the mcha-
qualifications by background or profession unless the
sperial qualifications of a mediator shall tion process.
A mediator shall discuss issues of confidentiality
(a) maintain and continually upgrade hie/her profe- and the extent of confidentiality provided in anv private
ssional competence in mediation skills; sessions or caucuses that the mediator holds with n pnrty.
(h) ensure that his/her qualificationss, ruining and expe- (Article 8.8)
rience are known to and accepted iy the parties; and
D. Consent and Self-Determination
(c) serve only when his/her [Link], training and
(a) A mediator shall make reasonable eftts to ensure
experience enable him/her to meet the rcasonahle ex-
that each party mderstands the nature and cha-
pertations of the parties and shall nut. hold himself/ racter of the mediation proceeding including private

i
 1Ht, AI'T'TI;NA'IIWE IHI'WTE It;ArriuN
NI'T'HE ART'ILA'T'JAN 1.W t'lusr 'Thus I lee ts
''rt
lh ad Isl:litotes of 1l Mira'1et
'I
I I°[Link]» \et sf 24l

caucuses, the issues, the available options, the alter- without the vnsent. of all parties, and for u reason-
natives to non-settlement, and that each party is free able tire under the particular circumstance, me
and able to make whatever choices he'she desires diator who also practices another profession shall
regarding participation in medintion generally and not establish a professional relationship in that other
regarding specific settlement options. profession with one of the parties, or any person or
If a mediator believes that a party, who is not entity, in a substantially ant factually related ma-
represented by counsel, is unable to understand, or tter. (Article 3.1t)
fully participate, the mediation proceedings for any
reason, a mediator may either: F. Charging of Fees
I With respect to charging of fees:

i
(i) limit the scope of the mediation proceedings in
a manner consistent with the party's ability to (a) A mediator shall fully disclose and explain to the
participate, and/or recommend that the party parties the basis cl cost, fees and charges.
obtain appropriate assistance in order to con- The mediator who with&raws from the mediation
tinue with the process; o l ()
shall return to the parties any unearned foe und un-
(ii) terminate the mediation proceedings. t used deposit.
(b) A mediator shall recognize and put in mind that the
primary responsibility of resolving a dispute and the
l (e) mediator shall not enter into a fee reemcnt,
which is contingent upon the results of the mediation
shaping of a voluntary and uneaerced settlement or the amount of the settlement. (Article 3.11)
rests with the parties. (Article 3.9) Promotion of Respect and Control of Abuse of Process
G.
E. Separation of Mediation from Counselling and Legal The mediator shall encourage mutual respect
Advice between the parties, and shall take reasonable steps, sub-
(a) Except in evaluative mediation ar when the parties iect to the principle of sel-determination, to limit abuses
so request, a mediator shall: of the mediation process. (Article 3.12)
(i) refrain fror giving legal ar technical advice snd H. Solicitation or Acceptance of any Gift
oterwise
h engaging in counseling or advocacy; No meriatur or any member of n medintor's immedi-
nnd
ate family or his'her agent shall request, solicit, receive or
(ii) abstain from exprssing his/her peronal opi- accept any gift or any type of compensation other than the
ion on the rights and duties of the parties and agreed fee and expenses in connoction with any matter
the merits of any proposal made. coming before the mediator. (Article 3.18)
(b) Whore appropriate and where either or both parties
are not represented by counsel, a mediator shall RULE 4 - Role of Parties and their Counsels

(i) recommend that the parties seek outside pro 4.00 MAY A PARTY DESIGNATE A LAWYER TO ASSIST MEDIA-
fessional advice to help them make informed TION?
decision and to undorstand the implication of
any proposal; and Yes, except as otherwise provided by the ADR Aet or by these
Rules. a party may «designate a lawyer or any other person to provide
(ii) suggest that the parties seek independent legal assistance in the mediation, A waiver of this right shall be made mn
and/or technical ndvice before a settlement .-...A.. L a+. rhe l id vwoieu at veutovukuv v level
 ''It
TH' Al''BNTtv I4t :+nt'Tott t'lust, '.«« lgd o st· llo.
lru
al +ls
rt A 114
uf if· \4tor4wr
N 'THI A4RIA'THAT'I0N 1.w put &

ttd 'T'he use-ihle options fur settlement but

4.01 ENUMERATE THE ROLES OF A COUNSEL IN MEDIATION stress:ang the need to be open-rinded about
PROCEEDING. other possibilities; and
The roles of a counsel are as follows: (ve) 'T'he best, worst and most likely alterratrve
(a) 'The lawyer shall view his/her role in the mediation to a non-negotiated settlement. (Article
as a collaborator with the other lawyer in working together 3.15)
toward the comm goal nf helping their chents rsolve their
differences ta their mutual advantage 4.02 WHAT OTHER MATTERS MUST A COUNSEL DO TO ASSIST
MEDIATION?
b) The lawyer shall encournge and assist his/her client
to actively part:pate in positive disussions and cooperate in ; 'Te assist mediation, the lawyer:
crafting an agreement tn rsalve their dispute ta) shall give support to the mediator so that his/her
(c) The i.-,.,;er muF.<t, ,i኏,;;st his/her elienl w comprehend 1 client will fully undertand the rules and procosaes of mediation;
and appreciate the mediation process and its benefits, as wel tb) shall impress upon his'her client the importance
as the client' sgrater personal responsibility for the success of of speaking for himself/horself an taking responsibility for
mediation in resolving the dispute, decisions during the negotiations within the mediation
making
(d) In preparing for participation in mediation, the law process,
yer shall confre and discuss with his[her client the following: fc) may ask for a recess in order to give advice or suge-
() The mediation process as essentially a nego- tions ta his/her client in private, if he/she perceives that his/her
tiation between the parties assisted by their client is unable ta bargain effectively;
respective lawyers. and facilitated by a media-
(d) shall assist his/her client and the mediator put in
tor, stressing it its ~difference frnm litigation, its
writing the terms ot the settlement agreement that the parties
advantages and benefite, the clients heightened
have entered into. That lawyers shall see a it that the terms ol
rule in mediation and responsibility far its suc.
the settlement agreement are not contrary to law, morn ls, good
cess and explaining the role of tbe lawyer in
mediation proceedings, customs, publie order tr public policy. (Article 33.I6)

(ii) 'T'he substance of the upcoming mediation such RULE 5- Conduct of Mediation
as:
(aa) 'I'he substantive issues invulved in the 5.00 WHAT ARE THE ARTICLES TO BE CONSIDERED IN THE
CONDUCT OF MEDIATION?
dispute and their prioritization in terms
of importuuce to his/her client's real into- The articles to be considered in the conduct of mediation are
rests and neetd; the following:
(bb} The study al other party's position in re. (a) The mediator ahnll not rake untruthful or exagge-
ltiwn to the issues with a view to under ratad claire about the dispute resolution process, its costs
standing the underlying interests, fears, and benefits, its outcome or the mediator's qualifications and
concerns and needs; abilities during the entire mediation prueeei.

(cc) The information or facts to be gathered (b) The mediator shall held the parties reach a satisfac-
r sought from th other side or to be ex- tory resolution ta their dispute hut has no authority to impose
changed that are recesssry tro informed a settlement on the parties.
decision-making;
 re i t. [Link]'II I mi:ruT ie;:+4 4+41+l
Puri t
Ni F1It AI!T'HA'Tit1 [Link]
I+oh wot+; I%le+ ul I~ult inf ls ltwutie
l+gt+ is htw e st 'tit
() 'The parties shall personally appear tu mediation
tion nnd adminrtrtvvt policies ot' such institution. Further, an
and may be assisted by a lawyer. A party may be represented bv t
y;reement to ubnuit a dispute to mediation under institutional me-
an agnt who must have full authority to negotiate and settle
the dispute. ° l liton rules shall be deemed to include an agreement ta have such
mules govern the mediation of the dispute and for the mediator, the
(d) 'l'he mediation praces shall, in general, consists of J ties, their respective counsels and non-party participants to abide
the following stages:
(i) opening statement of the medintor; I hy such rules. (Article 3.1')

RULE 8 -- Enforcement of Mediated Settlement

(i individual narration by the parties;
Agreement
(ii) exchange hy the parties;
(iv} summary af issues; 8.00 WHAT ARE THE OPERATIVE PRINCIPLES TO GUIDE MEDIA-
TION?
(v) generation and evaluation of optiots: and
(vi) closure The mediation shall be guided by the following operative
principles:
(e) The mediation proceeding shall be held in private (a) A settlement agreement following successful media-
Feron, other than be parties, their representatives and mc-
tion shall be prepared by the parties with the assistance of their
dintor, ma attend only with the consent of all the parties,
respective counsels, if an, and by the medintor. The parties
(f the mediation shall be closed: and their respective counsels shall endeavor to make the terms
fi) by the «xecution of a settlement agreement by and condition of the settlement agreement complete and to
the parties; rake adequate provision for the contingency oaf breach to avoid
conflicting interpretations of the agreement.
fi) by the withdrawal of any part y from mediation;
and (b) The parties and their respective counsels, if any,
shall sign the settlement agreement, The mediatur shall certify
(iii) by the written declaration of the mediator that
that he/she explame} the contents of the settlement agreement
any further effort at mediation wold not be
helpful. (Article 3.17) to thc partics in a language known to them.
(c) If the parties agree, the settlement agreement may
RULE 6 --Place of Mediation be jointly deposited by the parties or deposited by one party with
prior notice to the other party!ties with the Clerk of Court of the
6.00 WHERE IS THE PLACE OF MEDIATION? Regional Trial Court (a) where the principal place of business
T'he parties are free ta agree on the place of mediation. Failing in the Philippines of any of the parties is located; (b) if any of
such agreement, the place of medintion shall be any place convenient the parties is an individual, where any of those individuals
and appropriate to all parties. (Article 3.18) resides; or (c) in the National Capital Judicial egion. Where
there is a need to enforce the settlement. agreement, a petition
RULE 7 - Effect of Agreement to Submit Dispute nay be filed by any of the parties with the same court in which
to Mediation Under Institutional Rules case, the court shall proceed summarily to hear the petition, in
accordance with the Special ADR Rules.
7.00 WHAT DOES AN AOREEMENT TO SUBMIT A DISPUTE TO
MEDIATION BY AN INSTITUTION INCLUDE? (d) The parties may agrec in the settlement agreement
that the mediator shall become a sole arbitrator for the dispute
An agreement to submit a dispute ta mediation by an institu.
and sball treat the settlement agreement ns z arbitral award
tion shall include an agreement to be bound by the internal media
which shall be subject to enforcement under R.A. No. 876,

e
 t, AL'TE'MN'I'IVI, 1MI, tr1,
AND 'THI ARI!TIRA4WN LAW ·I
t'1gt 'I' log«lo·ult l4uh nl le lat ow. el th· 4ts-runt iw'
ml+ lt-· lofw wt. st .u»4
otherwise known e "The Arbitration Law," 4 u1,4;
th :.: 1, [Link] It.nrc1n (r) 'The rot rt+on of the ADR Act shall contmue to
·ne proiians of I,O. No. 1008, s. 1985, otherwi. ,, •
iCIWle known ue Lhle
(', ± '' ' apply event if n mwli:tu i found to have fled to act impartially.
oustruction '.Industry Arbitration Law" for medint d di
·id the -
he Construction i nae I1spute
mediator may not be malled to testify to provide
+

outside Industry Arbitration Ce _ (f)

(Article 3.20) ommson. confidential information gathered in mediation A mediator
who is wrongfully subpoenaed shall be reimbursed the full cost
RULE 9 - Confidentiality of Information of his/her attorney'a fees and related expenses. (Article 3.21)

9.00 WHAT ARE THE PRINCIPLES AND GUIDELINES ON INFOR. 9.01 MAY THE PRIVILEGE OF CONFIDENTIALITY OF INFORMA-
MATON OBTAINED THROUGH MEDIATION? TION BE WAIVED?
Information obtained through mediation proceedings shall be Yes, under the following circumstances, a privilege of confiden-
subject tw the following priceiples and guidelines: " talit of information is deemed waived:
(a) Information obtained through mediation shall be; i.
(a) A privilege arising from the confidertinlity of infor-
vileged and confidential. pr mation may be waived in a record or orally during a proceeding
by the mediator and the mediation parties
() party, mediator, or ncn-prty participant mav
refuse to disclose and may prevent any other person from disclo. (b) With the conent of the mediation parties, a privilege
sing a confidential information, arising from the confidentiality of information may likewise be
waved by a non-party participant if the information is provided
(c) Confidential information shall not be subject to dis- by such non-party participant.
covery and stall be inadmissible in any advoraarial procedin
(c) A person who discloses contidentinl information shall
whether judicial or quasi-judicial. However. cvid «. ,_'f'
i

t th Iaence or 1for- be precluded from asserting the privilege dcr Article 8.221
mnton at is otherwise admissible or subject to discovery does (Confidentiality of Information) tu bar disclosure of the rest of
not become inadmissibie or protected from discovery solely b
reason of its use in a mediation. 4Y yY
the information necessary to a complete undentanding of the
previously disclosed information. If a person suffers loss or
(d) In such nn adversarial proceeding, the tollo damage as a result of the disclosure of the confidential informn-
sons in h d
oIe ar ' wng per.
previously involved in a mediation mav not b tion, hc'she sha!l be entitled to damages in a judicnl proceeding
against the person who made the disclosure.
compelled to disclose confidential information obtained d.
the mediation: rung (d) A person who discloses or makes a representation
ti) the parties to the dispute; about a mediation is precluded from asserting the privilege
mentioned in Article 3.21 to the extent that the communication
(ii) the mediator or mediators:.. prejudices another person in the proccoding ard it is necessary
(ii) the counsel for the parties; for the person prejudiced to respond to the representation or
disclosure. (Article 3.22)
(iv) the non-party participnnts;
() any person hired or engaged in connection with 9.02 WHAT ARE THE EXCEPTIONS TO THE PRIVILEGE OF CONF.
the mediation as secretary, stenographer, clerk DENTLALITY OF INFORMATION?
or assistant; and
Thore is no privilege against disclosure under Article 3.21 in
(vi) any other the following instances:
person who obtains or possesses
confidential informntion by reason af
his/her () in an agreement evidenced by n record authenticated
proteesion
by all parties to the agreement;

i
 ti'I Hi
.tlf• Ill N TN'TW ;wrr He,v t in1; lupvr 'Tl
ls nt I+le+ l lie· le, sf th Mt rt+v
IN'II AI;BHTIHT'I4 4, In put 1{+ lt Aet r'4M

(ii) available to the public or made durin I' swwuono}

e. f' +lwiule of rut al fr- to he nproved by the OADR shall be
met dati ion wivhi
ncchh s open, or is required hy lew t be I tl tllowel (Aenele:2)
' oe open. 4oIn
public;
10.01 IN INSTITUTIONAL MEDIATION, WHAT DOES MEDIATION
(iii) a threat or statement of' a plan to inftict bodily injury COT INCLUDE?
or commit a crime uf violence;
In institution] mediaton, i mediation rust. shall include the
fiv) intentionally used to plan a crime, attempt to com- of the mediation institution under which
duinistratve charges
mit, or commit a crime, or conceal an ongoing crime or criminal
" rl· parties have agreed to be bound, mediator' fees and associated
activity;
expenses, if any. In default af agreement of the parties as to the
(v) sought or oflered to prove or disprove abuse. neglect
hieijij;' .amount and manner of payment of mediation's cost and fees, the same
abandonment or exploitation in a proceeding hail be determined in accordance with the applicable internal rules
agency is protecting the interest of an individual protected , f the mediation service providers under whose rules the mediation
law: but this exception does not apply where a child pro:cuio is conducted. (Article 3.26)
matter is referred to
mediation by a court or where a public
agency participates in the child protection mediation;
10.02 WHAT ARE THE FACTORS IN DETERMINING MEDIATION
{vi) sought or offered to prove or disapprove a claim or FEE?
complaint of professional misconduct or malpractice tiled against
A mediation servioe provider may determine such mediation
a par',on·arty participant, or representative of a party based
on ooduct occurring during a mediation. (Article 8.23) fee as is reasonable taking into consideration the following factors,
among others:
9.03 MAY A MEDIATOR BE ALLOWED TO MAKE A REPORT OR ( the complexity of the case;
COMMUNICATE MATTERS REGARDING MEDIATION?
(ii) the number of hours spent in mediation; and
As a rule, no, a mediator may not make report, assessmert
evaluation, recommendation. finding or other"9Hmn commnn;~;, (ii) the training, experience nnd stature of mediators. (Article
D "nt:on re-
3.26)
""

garding; amcacdihiation Lo a eotrt or agency or other authority that

'i

make a ruing on dispute that is ite sbrt of a medias»,~,, "Z[";' Chapter 4

{n) to staie that the mediation occurred or bas termi- INTERNATIONAL COMMERCIAL ARBITRATION
nutod, or where a settlomen was rencled; qt
RULE 1- General Provisions
(b) as permitted to be disclosed under Article 3.23
Exception to the Privilege of Conde»tafitof Ito+kact#j 11.00 WHAT IS THE SCOPE OF APPLICATION OF CHAPTER 4 ON
,"e
parties may,by an oroemeat in writing. stipulate that th
settlement agreement shell b¢ scaled and not di-closed to anit[i
INTERNATIONAL COMMERCIAL ARBITRATION7
(a} 'This Chapter apples
to international commerinl arhitra-
party including the court. Such stipulation, however, shall applynut [Link]. subject to any agreement in force between the Philippines and
[,t,}";";"" none or «erase m +mo-moat ·snarii ctber state ar states.
(I) 'This Chapter applies only if the place or seat. of nrbiration
RULE 10 - Fees and Cost of Mediation
is the Philippines and in default of any agreement of the parties on
10.00 IN AD HOC MEDIATION, WHAT ARE THF RULES ON FEES the applicable rules.
AND COST? This Chapter shall not affect any other law of the Philip
(¢y
In ad hoc mediation, the puartics are fr to make their own pire by virtue
of which certain disputes may not be submitted to
arrangement as to mediation cost and tees, Im default thereof, the
 TE, ALI AI II I al +ti '4tI
NI+'THE AM!'TI A'Tl0! 1 AW t'hgt Is ls to Note- l lier;[Link] f 1le · Meli
a u4. ts· +Aun Awwt +fl

arbitration or may be submittec

tted t Io rhit
arburaton only @tor«dg Lu pro- 1.02 WHEN IS A VWRIT TEN COMMUNICATION DEEMED RECEIVED?
is.

s1oms other than those of the D Act. (Article 4.1

11.01 CITE THE RULES OF INTERPRETATION IN INTERNATIONAL

I
I
a) Uhles ollwrwe reed by ihe purlies.:
{i) any written communication is deemed to have been
received if it is delivered to the addressee pmrsonlly
COMMERCIAL ARBITRATION.
or at hia'her place uf business, habitual residence or
The following are the rules of interpretation in international mailing address; if none of these can be found after
eounmervial arbitration: making a reasonable inquiry, n written communica-
tion is deemed tu have been received if it is sent to
(a) luternntonal eomreruial arbitration shall be »

vered by the Model Law :, E? the addrossee's last known place of business, hut-
. las
on [einternational Commercial Arbi.
lruion. ?Jl tual residence or maling address by registered letter
or any other means which provides n record of the
(b) In interpreting this Chapter, regard shall be had at'mpt to delver it;
to the international arigin of the Model Law and to the need {ii) the communication is deemed to have been received
for uniformity in its interpretation. Resort may be made to the
on tdre day it is so lelivered.
traaux prepartoires and the Report of the Secre
t .Ge
retary-iener
o1
f the Ur· » Ni.
e [Link] iatiuns Commission on International Trade (') 'The provisions of this Artivle do nut appl y to comnmunica-
Law dated March 1985 entitled, "Internationnl Commercial tiuns in court proceedings, which shall he governed by the Rules of
Arbitration: Analytical Commentary un Draft Text identifed Court. (Article 4.3)
by reference number A'CN. 9/264."
11.03 MAY THE RIGHT TO OBJECT BE WAIVED?

shall
(e) Moreover, in interpreting this Chapter, the court
have due regard to the policy of the law in favor of arbitrs-
Yes, the right to object. may be wived. Ary party who knows
tion and the policy ti «l promote pnrty
to actvely that any provision of' this Clapter from which the parties my
. ' of the Philippines
"l derogate ur any requirement urler the arbitration agreemcrt has
autonomy in the resolution of disputes or the freedom of the
not been complied with and et proveeds with the arbitration without
pa'lies to make their own arrangement to resolve their dispute.
stating the objections for such non-cornplience without undue «delny
(d) Whre n provision of this Chapter, exerpt the Rules or if a time limit i provided therefor, within such period of time,
applicable ta the substance of the dispute, leavee the parties free shall be deemed to have waived the nght to object. (Article 4.4)
to deterine a certain issue, such freedom includes the right of
he parties to authorize a third party, including an institution 11.04 WHAT IS THE EXTENT OF COURT INTERVENTION?
to make that determination. ' In matters governed by this Chpter, no court shall intervene
(e) Where n prvision of this Chapter refers to tho fact except when so provided in the ADR Aet. Resort to Philippine courts
that the parties have agreed or that they may agree or in any for matters within the scope of the ADR Aet shall be governed by the
other way refers to an agreement of the parties, such agreement Special ADR Rules. (Article 1.5
inehides an y arbitration rules referred to in that agreement,
11.05 WHAT OTHER FUNCTIONS MUST BE PERFORMED BY THE
(D Where a provision of tis Chapter, other than in APPOINTING AUTHORITY?
paragraph ts) of Article 1.25 (Default of a Prey) and paragraphs
(a) Te functions referred to in paragrphas (c) and (d) of Article
claim it als so apple
o
(b) (i of Article 4.32 (Trmination Proceedings), refers t
"" it refers
'Stoa 4.11 (Appointment of' Arbitrators) and paragraph tc} of Article 4.13
lie s to a couter-claim, and where to (Challenge Procedure) and paragraph (a) of Article 4.14 (Failure or
a defense, it also applies to a defense to such cm it :l Impossibility to Act) shull be performed by tho appointing authority
(Article 4.2) " ' counter-ciamm.
as defined in Article 1.6CI, unless the latter shall fail or refuse to act
 «f fl# LT IN1NI pH'At' :M,TH;
NI'IJ¥ I{WAT11N 1,W +Ir'f +
t'/pit '1 hpleo st Al l lisp«alto: al 1le \Hurn»tiw»
qui+ I%, Aton wj al pit4
within tirtv (It duy from resvipt of the request. in wheh ease [Link]
applicnnt may reuew the pphcation with the court. least une rly on request- af hath pnrties thereafter, refer
the purties tu rbitrtion unless it finds that the arbitration
The appoinutment. of n arbitrator is not, subject to appeal or agreement is null and void, inoperative or incapable of hoing
motwn for reconsidernt ion, performed.
{b) The furtions referred to in paragraph (c) of Article 4. 16(¢) b) Where an action referred to in the previous paragraph
(Competence of Arbitrat Tribunal to Rule on its Jurisdiction), second has been brought, arbitral proceedings may nevertheless be
paragraph af Article 1.34 (Application for Setting Aside an Exclusive commenced or continue, nnd an ward may be made, while
Recourse Aainsi Arbitral Award), Article 4.%5 (Recogmiton and tho issue is pending before the court
Enforcement), Arirle 4.38 (Venue nd Jurisdiction), shall be per- Where the action is commenced hy or against mul-
(c)
formed by the appropriate Regional Trial Court. tiple parties, one or more of whom are parties to nn nrhitrn-
(c) A Court may not refuse to grant, implement or enforce tion agreement, the court shall refer to arbitration those parties
a petition for an interim measure, including those provided for in who are bound by the arbitration agreement although the civil
Article 4.9 (Arbitration Agreement and interim Measures by Court), action may cortinue ns to those who are not bound by such
Article 4.11 (Appointment of Arbitrators), Article 4.13 (Challenge arbitration agreement. (Article 4.8)
Procedure), Article 4.27 (Cort Assistance in Taking Evidence), on
the sole ground that the Petitian is merely an ancillary relief and the 12.02 MAY A PARTY REQUEST FOR AN INTERIM MEASURE OF
principal action is pending with the arhitral tribunal (Article. 4.6) PROTECTION BEFORE OR DURING THE ARBITRAL PRO-
CEEDINGS?
RULE 2- Arbitration Agreement Yes, it is not incompatible with an arbitration agreement for a
party to requast from a court, before the constitution of the arbitral
12.00 EXPLAIN THE FORM OF AN ARBITRATION AGREEMENT. tribunal ur during nrbitral proccedings, an interim measure of pro-
The Arbitration Agreement, as defined in Articles 1.6 A4, shall tection and for a court to grant such measure.
be in writing. An agreement is in writing if it is contained in a doe. To the extent that the arbitral tribunal has nu power to act or is
ment signed by the parties or in an exchnnge of letters, telex, tele- unable to act effectively, a request for interim measure of protection,
grams r other mens of telecommunication which provide a record or modification thereof as provided for, and in the manner indicated
of the agreement, or in an ex:hnnge of statements of claim and in Artiele 4,17 (ower ot 'Tribunal to Order Interim Measures), may
defense in which the existence of an agreement, er in an exchange of be made with the court
statements of claim and defense in which the existence of an agran
ment is alleged by one party and not denied by another. 'The refe-. The rules of Interim or provisional relief provided for i para-
rence in a contract to a doeumont containing an nrbitration clause graph (c) of Article 4.I7 af these Rules shall be observed.
eunistitutes nn arbitration agreement provided that the contracts is A part ymay bring a petition under this Article balure the court
writing znd the reference is such as tu make that. elauso part of the in accordanee with the Rules of Court. or the Special ADR Rules.
cnrtract. (Aricle 4.7)
(Article 4.9)
12.01 WHAT ARE THE RULES WHEN A SUBSTANTIVE CLAIM IS RULE 3 - Composition of Arbitral Tribunal
BEFORE THE COURT?
13.00 HOW MANY ARBITRATORS MAY THE PARTIES AGREE
The following are the rules on subtnntive claim before the UPON?
court:
(a) court hetore which an action i brought in a matter The parties are free to determine the number of arbitrators.
which is the subject of an arbitration zrvemwnt nhnll, if' at Failing such determination, the number of arbitrators shall be
three (3). (Article 4. 10)

t
 H#, ATTN'IIWI, DE'TI I'u+111,
NI TH III@I0N t I'Aw'i ,
up+lee· tug Rule nl 4+ulatint l the ltertntiw
lusts He»dution et a! /HJ4
13.01 EXPLAIN HOW ARBITRATORS ARE APPOINTED. J extwuLory mud not. be subjcct to a motion for reconsideration
'I'h, e appointment
· +
of arbitrators nre governed by tl or appenl. The appointing authority shall have in appointing
procedure; '· lull»wing
an arbitrator, due regard to any qualifications required of the
(a) Na person shall be produced by reason uf hither arbitrator by the agreement of the parties and to such conei-
nationality frot acting as an arbitrat, unless atherwiee
agrecd hy the parties. j dorations as are likely to secure the appointment of an indepen-
dent and impartial arbitrator and, in the case of n sale or third
(b) The parties are free to agree on a procedure of ap- arbitrator, shall take into account as well the advisability af
pointing the arbitrator or arbitrators, subject to provisions of appointing an arbitrator of a nationality other than the Rules
paragraphs (d) and (e) of this Article. of Court of the Special ADR Rules. (Article 4.1I)
(c) Failing sch agreement:
13.02 WHAT ARE THE GROUNDS TO CHALLENGE AN ARBITRA-
ti) in an arbitration with three arbitrators, each TOR?
party shall appoint one arbitraar, aud the two
arbitrators thas appointed shall appoint the The grounds for challenge are as follows:
third arbitrator; if any party fails 4 27int (a) When a person is approached in connection with his/
the arbitrator within 30 days of met ct a ro her possible appointment as an arbitrator, he/sbe shall disclose
quest to do so frm the other party, or if the two
any circumstance likely to give rise to his/her impartiality or
arbitrators fail to agee on the third arbitrator independence. An arbitrator, from the time of his/her appoint-
within '0 days of thoir appointment shall be
rent and throughout the arbitrl proceedings shall, without
made, upon request of a party, by the appoint-
Ing authority; delay, disclose any such circumstance to the parties unless they
have already been informed of them by him/her
(ii) inan arbitration with s ale arbitrator, if the
parties are unable to agree an the arbitrator () An arbitrator ray be challenged only if eireums-
he/she shall be appointed, upon reqeat of' a tances exist that give rise to justifiable doubts as to his/her im-
party, by the appointing authority. partiality or independence, or if he/she does not possess quali-
(d) Where, under nn appointment procedure ngreed upon fications agreed to by the parties. A party my challenge n
by the parties, arbitrator appointed by him/her, or in whose appointment hel
she has participated, only for reasons of which he!she becore
() a party fails to act as required under such po.
cedure, or aware after the appointment has been ruade (Article 4.12)
(ii) the parties, or two arbitrators, are unable to rwach 13.03 WHAT IS THE PROCEDURE IN CHALLENGING AN ARBI-
an agreement experted of them under such pro. TRATOR?
cecdure, or
(jji) a third
l.! ... The challenge procedure is as fllows:
o
party, including an institution, fails
to perform nny function entrusted to it under (a) 'The parties are free to agree on a procedure for chal-
such procedure, lenging an arbitrator, subject to the provisions of this Article;
Any party may request the appointing authority to take (b) Failing such agreement, a party who intends to chal-
the necessary measure to appoint an arbitrator, unless tu lenge an arbitrator shall, within 15 days after becoming aware
agreement an the appointment proc~re provide other means of the constitution of the nrbirrn! tribunal or alter becoming
for securing the appoinrment
aware of any circumstances referred to in paragraph (b) of
(e) A decision on a matter entrusted by paragraphs (c) Article 4.12 (Grounds for Challenge.) send a written statement
and (d) of this to the appointing authority shall he immediate of the reasons for the challenge to the arbitral tribunal. Unless
 IHI4, MW'TINT#, DH4f' [Link]
w'it
A NI THE NII'TATION 1W
( uptr Thus [Link] • tln llnrl l4stat putt, t' le· Ah4 wmtrwr
Inept I+ Auto 'wt ol {tu4
tie challenged arbitrator withdraws from his/her afties r the be:wusses of' tlw· rvvatie uf ht#her mandate, a substitute arbitrator
other party agrees tu the challenged arbitrator withdraws LroI ·hnll be pouted :worthing to the rules that were applicable to the
his/hor offee or the party agrees to the challenge, the arbitrnl appointment uf the arbitrator being replaced. (Article ·A. 15)
tribunal shall decide on the challenge; and
(e) If n challenge under an procedure agreed upon RULE 4- Jurisdiction of Arbitral Tribunal
by the parties or under the procedure of' purgraph (b) of this
Article is not successful, the challenging party may request 14.00 DISCUSS THE COMPETENCE OF ARBITRAL TRIBUNAL TO
the appointing authority, within 0 days after having received RULE ON ITS JURISDICTION.
ootice of the decision rejecting the challenge, to decide on the (a) The arbitral tribunal may rule on its own jurisdiction,
challenge, which decision shall be immediately executory and inchding any objections with respect to the existence or validity of
not subject to motion for reconsideration or appeal. While tho arbitration agreement or any condition precedent to the fling of
such a request is pending., the arbitrnl tribunal, icluding the the request for arbitration. For that purpose, an arbitration clause,
challenged arbitrator, may continue the arbitral proceedings which fors part of a contraet shall be treated as an agreement inde-
and make an award. pendent of the other terms of tle contract. A decision by the rbitral
party may bring a petition under this Article before the court tribunal that the contract is null and void shall not entail ipso jure
n accordance with the Rules of Court or the Special ADR Rules the invalidity of the arbitration clause.
(Article 4.13) 8.
db) A plea that the arbirral tribunnl does not have jurisdic-
hon shall be raised not later than the submission of the statement of
13.04 WHAT IS THE CONSEQUENCE IF THERE IS FAILURE OR defense ti.e., in an Answer or Motion to Dismiss). A party is not pre
IMPOSSIBILITY TO ACT AS AN ARBITATOR? cluded from raising sueh plen by the tact that he/she has appointed,
(a) If an arbirutur becomes de jure or de fauto unable ta per.
or participated in the appointment af, an arbitrator. A plen that the
foemn his/her functions or fir other reasons fails to act without undue arbitral tribunal is exceeding the swope of its authority shall be raised
delay, his/her mandate terminates if he/she withdraws from his/her as soon as the matter alleged to be beyond the swope of its authority
oflice r if the parties agree on the termination. Otherwise. it' the is raised during the nrbitra! proceedings. The arbitral tribunal may,
controversy remains concerning any of these grounds, any party mav in either case, admit a later plea if it considers the delay justified
request the appointing authority to «decide on the termination of the () The arbirral tribunal may rule on a plea referred to in
mandate, which derision shall be immediately executory and not paragraph (b) of this Article either as a preliminary question or in an
subject fr motion for reconsideration or appeal. award on the merite. If the arbitral tribunal rules as a preliminary
question that it has jurisdiction, any party may request, within 30
th) II, under this Article or paragraph (b) of Article 4.1(Chal.
lengte Procedure), an arbitrator withdraws from his'her office or a
days after having received notice of that ruhng, the Regional Trial
porty agrees for termination of the mandate of an arbitrator, this does
Court to decide the matter, which decision shall he immediatoly exe-
cutory ard not subject to motion for reconsideration or appeal. Wile
not imply acceptance af the validity of any round referred to in this
such request is pending, the arbitral tribunal may contribute the
Article or in paragraph (b) of Article 4.1 (Grounds jor Challenge)
a

(Article4.14) arbitral proceedings and make an award. (Article 4.16)

14.01 DOES AN ARBITRAL TRIBUNAL HAVE THE POWER TO

13.05 WHAT IS THE CONSEQUENCE IF THE MANDATE OF AN
ARBITRATOR IS TERMINATED? ORDER INTERIM MEASURES?
(a) Unless otherwise agreed by the pnrties, the arbitral
Where the mandate of an arbitrator terminates under Articles tribunal may, at the request of the party, order any party to take
413(Challenge Procedure) ad 4.14 (Failure or Impossibility to Act)
such interim measures of protection as the urbitral tribunal may
or because of bis'lor withdrawal from offies for any other reason or
consider necessary in respect of the subject to matter of the dispute
 'THE, IT'E'NATIVE pl; r] t:+Mr[ti
ND 'TH% AI'T 'Te LAW 'Ar L
t'lute- 'Tu. huh+ t Ile l Heultium of 1ln Alternative
I «ts Ar [Link] it td '!
following parraph tr) of this Article. Such interim mer:sre may
include, but shall nr be limited tn, preliminary injunction directed tvi» pt.y who does not curply with the order shall be
agninst a part, appointment of receivers, or detention, preservation, iablo for nl damages, resulting fromnoncompliance,
inspection of property that is the subject of' the dispute in arbitration. including all expenses, and reasonable attorneys
fees, paid in obtaining tle order's judicial enforce
(b) After constitution of the arbitral tribunal, and during ment. (Article 4.17
urbitral proceeding, n request for interim measures of protection, or
modification thereof shall he made with the arbitral tribunal. The
RULE 5 -- Conduct of Arbitrat Proceedings
arbitral tribunnl is deemed constituted when the sole arbitrator
or the third arbitrator, who has been nominated, has accepted the 15.00 DISCUSS THE CONDUCT OF ARBITRAL PROCEEDINGS.
nomination and written communication of said nomination and
acceptance hae been received by the party making the request. 1. On Treatment of Parties.
The nrbitral proceeding s is governed by the Equal
(c) 'The tallowing rules on interim or provisional relief shall
be observed: Treatment of Partie.s It states: "The parties shall be treated
with equality and each sha!l be given a full opportunity of
(i) Any party may request that the interim or provisional presenting his/her case." (Article 4.18)
reliefhall be observed.
2, On Determination of the Rules of Procedure.
(ii) Such relief' may be granted:
(a) Subject tu the provisions of this Chapter, the parties
(aa) To prevent irreparable loss or injury;
nre froe to agree on the procedure to be followed by
(bb) 'To provide security for the performance of an the arbitral tribunal in conducting the proceedings.
obligation; (Article 4.19)
(cc) To produce or preserve evidence; (h) Failing such agreement, the arbitrl tribunal may,
(dd) To compel any other appropriate acts or omis- uhjort to this Chapter, conduct the arbitration in
8ions such manner as it considers appropriate. Unless the
arbitral tribunal considors it inappropriate, the UN.
(iii) 'The order granting provision] relief may bo condi- CTTRAL Arbitration Rules adopted by the UNC}-
tione upon the provision of secumty or any act or TRAL on 28 April 1976 and the UN General
omission specified in order, Assembly on 15 December 1976 hall apply subject
(iv) Interim or provisional relief is requested by written to the following clarification: Al references to the
appiication transmitted by rensonablo menns ta the "Secretary-General of the Permanent Court of Arbi-
nrbitrl tribunal and the party against whom relief tration at the Hague" shnll be deemed to refer to the
is sought, describing in appropriate details of tho appointing authority.
precise relief, the party against wham the relief is
(c) The power conferred upon tbe arbitral tribunal
requested, the grouud for the relief, and the evidence,
inelades the power to determine the admissibility,
supporting the request,
relevance, materinlity and weight of any evidence.
(v) The order granting or denying an application for the
interim elief shall be bdmg pun the parties 3. On Venue of Arbitration.
(vi) Either party may apply with the curt for assistance (a) T'he parting are free to agree on the place of arbitra-
in implementing or enforcing nn interim measure tion. Failing such agreement, the place of arbitration
ordered by an arbitrnl tribunal. shall be in Metro Manila unless the arbitral tribu-
nal, having regnrd ta the circumstarees of the case,
 IH A4TN'I'IN DIS'Ti, « trT'Io P'I'TL
AT ''HI ARB'\UT'IHN 1AW d'hits 'T'he lu hunt tulen ml Ito r,ult- of tl Altertstiv«
It+ Ate+ du Aet t 'Ii.4

including the convenience of the parties, shall decide 'The· ties may submit with their statements,
on different place of arbitration. nll laments they consider to be relevant or may
() Notwithstanding the rule stated in paragraph (a) add a reference to the documents or other evidence
of this provision, the arbitral tribunal may, unless they will submit
otherwise agreed by the parties, meet at any place (b) Unless otherwise agreed by the parties, either party
it considers appropriate for consultation among its mey amend or supplement his/her clsim or defense
members, for hearing witnesses, experts or the par- during the course of the arbitral proceedings, unless
es, or for inspection of goods, other property or doc- the arbitral tribunal considers it inappropriate to
uments. (Article 4.20) allow such amendment having rogrd tn the delay in
making it, (Article 4.23)
4. On Commencement of Arbitrl Proceedings.
Unless otherwise agreed by the parties, the arbitral
7. On Hearing and Written Proceedings.
proceedings in respect of n particular dispute commence on (•a.) S b" •t w anv c."Ontnuy a኏ment by zhe parties.
uDJeCL .¥
ther to, le
it)

the date on which a request for that dispute to be referred the arbitral tribunal shall decide wheth
,] to bold

to arbitration is received by the respondent. (Article 4.21) oral hearings for the presentation ol evidence or [or
oral argument, or whether the proceedings shall be
5, On Language to be used.
conducted on the basis of documents and otter mate-
(a) The parties are free to agree on the language or rials. However, unless the parties have agreed that
languages to be used in tle arbitral proceedings. Fai- no henrings nt an pproprinte ste uf the proceed.
ling such agreement, the language to be used shall be igs, if so requested by a party.
English. This agreement, unless otherwise specified (b) The parties shall he given sufficient advance notice
therein, shall apply to any written statement by a of any hearing and of any meeting of the arbitral
party, any hearing and any award, decision or other tribunal for the purposes of inspection goods, other
communication by the arbitral tribunal. property or documents.
(b) 'The arbitral tribunal may order that any documen. (c) All statements, documents or other information
Lary evidence shall be accompanied by a translation supplied to the arbitral by one party ahall be commu
into the language or languages agred upon by the icated to the other party. Also. an expert report or
pnrtieg or determined by the arbitral tribunal in evidentiary document on which the arbitral tribunal
accordance with paragraph (a) of this Article. (Article may rely in mnking its decision shall be communi-
1.22) cated to the parties. (Article 4.24)
6. On Statements of Claim and Defense. 8. On Default of a Party.
(a) Within the period of timc agreed by the parties or Unless atherwise agrad by the parties, if, without,
determined by the arbitral tribunal, the claimant showing sufficient cause,
shall state the facts supporting his/aer/its claim, (a) the claimant fails to commumicnte his statement of
the points at issue and the relief or remedy sought, claim in accordance with paragraph (a) Article 4.23
and the respondent shall state his/hcrfits defense in (Statement of Claim and Defnse),
e the arbitral tribu-
respect of these particulars, unless the parties have nal shall terminate the proceedings;
otherwise agreed as to the requirod elements of such (b) he respondenr fails to communicate his/her'its
statements,
~t sent of defense in accordance with paragraph ()
 wt'I
f THI AH'l'RNAT'VI II]'UT HP+.""WM i t , Nu· tl l{+lats sf tl- lterna1tr»
phw
AND THI ARI'ILA TON 1AW I,s Re»hon he+ f 22Uk1

party aw hring a petition under this Section

Article 4.28 (Statement of Claim and Defense, the
hfor the curt in aexordance with the lules of Court or
arbitral tribunal hall continue be proceedings with- ADR Rules. (Article 4.27)
the peril
out treating such failure in itself as an admission of
the claimant's allegations; 11. On Rules Applicable to the Substanee of Dispute.
(c) any party's fails to appear at a hearing or to produce ta) The arbitral tribunal shall decide the dispute um
documentary evidence, the arbitral tribunal may accordance with such rules af law as are chosen
continue the proceedings and make the sward on the by the prties as applicable to the substance of the
evidence before it. (Article 4.25) dispute. · ny designation of the law or legal system
of a riven state shall be construed, unless otherwise
9. On Expert Appointed by the Arbitral Tribunal.
expressed, as directly referring ta the aubetnntve
Unless otherwise agreed by the parties, the arbitral law of that state nnd not its conflict of laws rules.
tribunal:
(h) Failing any designation by the parties, the arbitrnl
(a) may appoint one or more experts to report to it on ! tribunal shall apply the lw determined by the con-
I
specific issues to be determined by the arbitral tri- tliet of law srules, which it considers applicable.
bunal; or F
I
(e) The arbitral tribunal shall decide ex aeqo et bono
(b) may require n party to give the expert any relevant
information or to produce, or to provide access to. any
rolevnnt documents. goods or other property for his/
i or as amiable compositeur only if the parties have
expressly authored it to do so

her inspection.
Unless otherwise agreed by the parties, if a party so l (d) In all eases, the arbitral trihunl shall decide in
accordance with the terms of the contract and shall
tke into account the uages of the trade applienble

I
requests or if the arbtral tribunal considers it necessary, tu the transaction. (Articie 4. 2)
tho expert shall, after delivery of his/her written or oral
report, participate in a horing where the parties have the 12. Decision-Making by Panel of Arbitrator.
opportunity tw put questions to him and to present expert In arbitral proceedings with more than one arbitra-
witnesses in order ta testify on the points at issue. (Article \ tor, any levision of the nrbitrnl tribunal shall be made,
4.26) I unless otherwise agreed by other parties, hby n majority
10. On Court Assistance in Taking Evidence.
Th arbitral tribunal or a party with the approval
of the arbitrul tribunal may request from a court of the
' of all its members. However, questions of procedure ma
be decided by a presiding arbitratar, if so authorized l
the parties tr all members of the arbitral tribunal. (Article
4.29)
Philippines assistance in taking evidence. The court may
execute the request within its competence and according 13. Settlemenl
to its rules on taking evidence If, during arhital proceedings, the parties settle the
Tho arbiral tribunal shall have the power to require dispute, the arbitral tribunal shall terminate the proceed
ings and. if
any person to attend a heuring as a witness. 'The arbitral requested by the parties and not objected to by
tribunal shall have the power to subpoena witnesses and the arbitral tribunal, record the settlemonr in the form ol
documents when tho relevancy of the testimony and th an arhitral award on agreed terms-
materiality thereof has been demonstrated to it. The on agreed terms shall be made in aceo-
r award
An
artitral tribunal may also require the retirement of any s
the
r'
of Article 4.31
,
{/rzn
a€'con-
anad
dance with provisions
witness during the testimony of nny other witness.
 Ht A 'RN 'I'
VI S]'I'E ('M 1I1+t4
'ND 'T'TH AMI'TRAN'TION 1,Aw
Mr'T1
o,he i+tap lulu, awl iKej,tat u l l A/sat ne
j I. ts· 1% tut et of zr4
tents of Award), an ahall state that it is an award. Such (c) T'he mandate of the arbitral tribunal ends with ter-
an award has the same status and effect as aw other
award on the merits aft the case. (Article 4.30)
4. On Form and Contents of Award.
provisions of Articles 4.
minatom of the artntrel prcccdipgs subject to the
(Correction cmn Irterpre
tation of Award, Additionai Auard) and paragraph
(d) of Articles 4.34 (Application for Setting Aside an
(a) The ward shall be made in writing and shall he Exclusite Recourse against Arbitra! Award).
signed by the arbitrator or arbitrators. In arbitral
td) Notwithstanding the foregoing. the arbitral tribunal
proceedings with nor than one arbitrator, the aig-
may, for speciul reascn. reserve in the final award
a" hearing to quantity costs and determine
natures of the majority of all members of the arhinal ' ·
tribunnl shall suffice, proded that tho reason for
or order,
which party shall bear the costs or the division there-
any omitted signature is stated.
of as mav be determined u be equitable. Pending
(b) The award shall state the reasons upon which it is determination of this issue, the award shall not be
based, unless the parties have agreed that no rensons deemed final for purposes of appeal, vacation, correc-
are to be given or the award is an award on agreed tion, or any post-award pnceedings. (Article 4.32)
terms under paragraph (a) of Article 4.220 (Place of
Arbitration). 16. On Correction and Interpretation of Award, Addi-
tional Award.
(c) The award shall state its date and the place of arbi-
tration as determined in aoeardance with paragraph ta) Within thirty (30) days from receipt of the awurd.
(a) ol this Article. 'The award shall he deemed to have unless another period of time has been agreed upon
been made at that. place. by the parties:
(d After the award is made, a copy signed by the arbi- () A party may, with notice to the other partly,
rators in accordance with paragrapb (a) of this request the arbitrul tribunal to correct in the
Article shall be delivered to ench party. 'Article 4.31) award any errors in computation, any cleriral
or typographical errors or any errors of simil
15. On Termination of Proceedings. nature;
(a) 'The arbitral proceedings nre terminated by the (ii) A party may, if so agreed bs the parties and
final award or by an order of the arbitral tribunal in with notice tu the other parts, request the arbi-
accordance with paragraph (b) ot this Article. tral tribunal to give an interpretation of a se-
(b) The arbitral tribunal shall issue an order for the ter. cific point or part of the awnrcd.
minarion of the arbitral proceedings when: If the arbtra! tribunal considers the request to be jus-
(b)
~) 'The claimuent withdraws his/her/its claim, un- tted, it shall make the correction ur give the nter-
less the roepondont objects thereto and the ar. pretation within 30 days from receipt of the request.
bitral tribunal recognized a legitimate interest The interpretation shall form pat af the award
on hi/her~its part in obtaining » final settle- (c) The arbitral tribunal may correct any error of the
ment of the dispute;
type referred to in paragraph {a) of this Article on
{ii) The parties agree the termination of the pro- its own imtintive within W days from the dnte of the
cecding; award.
(iii) The arbitrnl tribunal finds that the continua- Unless otherwise agreed by the parties, n party may,
tion of the proceedings has for any othor reason with notice to the other party. request, within 330
become unnecessary or impossible, days receipt of the award, the arbitral tribunal to

i
 LA4I'I I 9
H' AMI'HNTIE IM It HE' +LA'i'MI Hole, ul %+plntavwf t/ Alter+al4
f'letsr Th l»pd a ut
NI TIE, MII'TA'TIN 1AW it tte+ft u 'et. f' {tH

take an auditional award as to claims» prsw:turd 1n provided that, if the eeisions on mntters
submitted to arbitration can he separated
the nrbtral proceedings hut nritend from the ward
from those not so submitted, only the part
If the arbitral tribunal considers the request to be
of the award wlich vontins decisions on
justified, it shall make the additional ward within
6t days, matters not submitted to arbitration may
bo set aside, or
(e) 'The arbitral tribunal may extend, if necessary, the
period of tire within which it shall make a correc- (dd) the composition of the arbitral tribunal or
the arbitral procedure was not in aeoor-
ion intorprettion or an additional award under
paragraphs {a) and {b of this Article. dance with the agreement of the parties,
unless such agreement was in conflict with
if) T'he provisions of Article 4.31 (Form and Contents of a provision of ADR Act from which the par-
ward) shali apply to a curreetiun or interpretation ties cannot derogate, or, falling such agree-
of the award or to an additional ward. (Article 4.813) men.t, wns not in accordnnce wth AD
17. On Application for Setting Aside an Exclusive Re- Act or
course against Arbitral Award. (ii) the Court finds that:
ta) eoure to a cotut against an arhirral award may (a) the subject-matter of the dispute is not
be mude orly by application for setting aside in capable of settlement. by arbitration under
ncordancn with second and third paragraphs of this the law of the Philippines; or
Article,
fbb) the sward is in conflict with the public
(l) An arhitra] awnrd may be stet aside by the Regional
policy of the Philippines.
Trial Court only if:
() the party making he application furnisbos (c) An applieation far sotting aside may not be made af-
proof that.: ter three months have elapsed from the date on which
the party making that application had received the
(as) party to the arbitration agreanent was award or, if n request had been made under Article
under some incapacity, or the said agree- 4.33 (Correction and Interpretation of Award, Addi-
ment is not valid nder the law to which tional Award) from the date on which that request
the parties have subjected it or, failing has been disposed of by the Arbitrnl tribunal.
nn inlienton thereon, under the law of
tle Philippines; or (d) 'The court, when asked to sot aside nn award, may,
where appropriate and so requested by a party, sus-
(bb) the party making the application was not
pend the setting aside proceedings for a period of
given proper notice of the appointment of time determined by it in order lo give the arbitral
an arbitrator or of the [Link] proceed- tribunal an opportunity to resume the arbitral pro.
ings or was otherwise unable to present
ce~dings or take such other action as in the arbitral
his case; or
tribunnl's opinion will eliminate the grounds for set-
(ce} the award doals with a dispute not eon- ting aside.
templated hy or not failing within the
(e) A party may bring a petition under this Article be-
terms of the submission to arbitration
fore the court in accordance with the Special ADR
or contans decisions on matters beyond
tbw: wope of the ubmisson to arbitration, Rules. (Article 4.4)

i
 It THE [Link]'TIVE DI''TE H 4 u In1
IM;I I I0!
AMI TH tr'tuA'ttN 1Aw
d'lpler Tl lrsh+ et , Iin lee, ul Kw;ulatt m- f {he iterate
I)e put 1er·lut et. of 'I1f
RULE 6 - Recognition and Enforcement of Awards
(f I/ the I&egional 'Trial Court ha& recognized the arbi-
16.00 WHAT ARE THE RULES ON RECOGNITION AND ENFORCE tral award but an applicntion for rejection and/or suspension of
MENT? • enforcement of that award is subsequently made, the Regional
The rules an recognition and enforcement are a £UL0WS,
FI,
Trial Court may, if it considers the application to be proper,
'' it
vacate or suspend the decision to enforre that nwart and may
(a) A foroign [Link] award shall be recognizod ss bind also, on the application of the party claiming recognition or on-
ing and, upon petition in writing to the regional trial court, forement of that award, order the other party seeking rejection
shadi be enforced subject to the provisions of this Article and of ar suspension to provide appropriate security. (Article 4.3)
Article 4.36 (Grounds for Refusing Recognition or Enforcement).
The petition for recognition and enforcement of scb
(b) 16.01 WHAT ARE THE GROUNDS FOR REFUSING RECOGNITION
arbitral awands shall be fled with the RRerional trial Court in OR ENFORCEMENT OF CONVENTION AWARD AND NON-
accordance with Special ADR Ruleg, CONVENTION AWARD?
(i) C'onvention Award The N&w York Convention The grounds for refusing rorognition or enforcement are as
shail govern the recognition and enforcement follows:
of arbitral awards covered by said Convention A. With Respect to Convention Award.
The petitioner shall establish that the country
Recogition or enforcement of an arbitral award,
in which the foreign arbitration award was
made in a state, which is a party to 1he New York Conven-
made is a party to the New York Convention
tion, may be refused, at the request of the party against
(ii} Non-Convention Award The recognition whom it is provoked, oniy if the party furnishes to the
and enforcement of foreign arbitral awrds not Regional 'l'rial Court proof that:
covred by the New York Convention shall bo
{a) The parties to the arbitration agreement are, under
done in accordance with procedural rules tu b the law applicable to them, under some incapacity;
promulgated hy the Supreme Court. 'The court
or he said agreement i not valid undor the law to
may, on grounds oaf comity and reiprocity,
which the parties have subjected it or; failing any
recognize and enforce a non-conventiuin award
indication thereon, under the law of the country
as a convention award
where the awar d was made; or
(c) The party relying on an award or applying lro its en-
(h) the party against whom tho award is invoked was
forcement shall file with the Regional 'T'rial Court the original
not given proper notice of the appointment of an
or duly authenticated copy of the award and tho original arbi-
arbtrator or of the arbitral proceedings or was other.
ration agreement or a duly authenticated copy thereof, If the
awart! or agreement is not made in au offcial language of the
wise in able to present his ease; or
Philippines, the party shail supply n duly certified translation (c) the award deals with dispute not contemplated by
thereof into such language. or not failing within the terms of the submission
to arbitration, or it contains decisions on matters
(d) A foreign arbitral award when confirmed by a cout
of n foreign country, shall be recognized and enforced as g beyond the scope of the submission to arbitration;
foreign arbitral award and not as a judgment of n foreign court. provided thnt. if the decisions on matters submitted
to arbitration can bo separated from those not so
(o) A foreign arbitral award when confirmed by the submitted, that part of the award which contains
Regional Trial Court, shall be enforced in the ame manner as derisions on matters submitted to arbitration may
final nnd executory decisions of court of law of the Philippines be recognized and onforcod; ar

i
4l.- TI4 AM IRA'IV [TI I&ULT1+HJ rt l

(.:!/
d, 呸
1.L
NI THI AKI'HA'TON 1,AW

•
the composition of the arbitral tribunal or the arbi
t
'iu I'lore as·le
lh
in,
tt ·st·
I'et d lie,lali@vet. al lw
Jet t 'MJ

·liming; recognition or enforcement of' tbat award,

· Iterative

Ira? procedure was not in accordance with the agree- order the other party seeking suspension to provide
ment of the purties, or failing such agreement, was appropriate securty.
not in accordance with the law of the country where (c) If the petition for recognition ar enforcement of the
the arbitration took place; or nrbitral award is fled hy n party and a counter-pet-i
(e) the award has not become binding on the parties or tion for the rejection of the arbitral award in filed by
has been set aside or suspended b y a court of the coun- [Link] other party, the Regional Trial Court may. if it
try in which, ur under the law of which, that awnrd considers the counter-petition to be proper hut the
we made. objections thereto may be rectified or cured, remit
the award to the arbitrni tribunal for appropriate
Hecognition and enforcement of an arbitral award nction and in the meantime suspend the recognition
may also be refused if the Regional Trial Court where and enforcement proceedings and may also on the
rce ognition and enforcement is sought finds that:
application of the petitioner order the counter-poti
t) the subject matter of the dispute is not capable of set- uiorer to provide appropriate security. {Article 4.6)
tlement by arbitration under the law of Philippines; or
16.02 WHAT IS THE REMEDY OF THE LOSING PARTY FROM AN
(b) the recognition or enforcement of the award would be
ARBITRAL AWARD RENDERED BY THE REGIONAL TRIAL
contrary to the public policy of the Philippines.
COURT?
party ta aa fforeign
- .4,;
arbitration proceeding my A decision of the Regional Trial Court recognizing, enforcing.
an
'

opr
ppose
s

application for recognition nnd enforcement of

the arbitral award in accordance with the Special ADR veating or setting aside an arbitral award may be appealed to the
Court of Appels in accordance with the rules of praeetdre to be
Rules only on the grounds enumerated under paragraph
ta) and (e) of Article 4.95 {Recognition and Enfrcement).
promulgated by the Supreme Court. (Article 4.87)
o
Any other round raised shall be disregarded by the 16.03 IS THE APPELLANT REQUIRED TO POST A BOND?
Regional [rin. Court. (Article 4.36)
Yes, the losag party who appeals from the judgment of tbe
B. With Respect to Non-Convention Award, o recognizing and enforcing an arbitral award shall bo required
curt
(a) A foreign arbitral award rendered in a state which by the Court of Appeals to post a counter-bond executed in favor of
is not s party to the New York Convention will be the prevailing party equal to the arount of the awnrd in accordance
recognized upon proof of the existence of comity with the Special AR Rules. (Article 4.37)
and reciproity and may be treated as a convention
If
award. not ao treated and if no comity or recip- t6.04 IS A STIPULATION THAT THE ARBITRAL TRIBUNAL'S AWARD
OR DECISION SHALL BE FINAL VALID?
rocity exists, the nor convention award cannot be
recognized and/or enforced but may be deemed as Yes, any tipulntion hy the parties that the arbitral tribunal's
presumptive evidence of a right as between the parties award or decision shall be final, and therefore not appealable, is
in accardance with Section 48 of the Rules of Court. valid. (Articte 4.7)
(b) If the Regional Trial Court has recognized the arbi-
tral award but a petition for suspension of enforce- 16.05 WHAT IS THE CONSEQUENCE IF THERE IS A STIPULATION
THAT THE ARBITRAL TRIBUNAL'S AWARD OR DECISION
ment of that award is subsequently made, the Re.
gional Trial Court may. if it con»ides the
petition SHALL BE FINAL?
to be proper, suspend the proceedings ta enfrce
o the Such stipulation carries with it a waiver of the right to appeal
award. and may also, on the application of the party from an arbitral award. (Article 4,37)
 o. 'PI AMT'KNA'TIVIS DI~HI
AND» 'THI AKITH'THIN I,AW
Lr+t
t'hpt 'Its+
+KT 1
tale wntvy {lo; ml IRelat ir af the lerntve
tn it I«alt m wt, af '4up»]

16.06 IS THE REMEDY OF CERTIORARI UNDER RULE 65 AVAIL- 16.10IS A PARTY ENTITLED TO LEGAL REPRESENTATION IN
ABLE IF APPEAL IS DEEMED WAIVED BY VIRTUE OF THE NTERNATIONAL COMMERCIAL ARBITRATION CONDUCTED
AFORESAID STIPULATION? (Article 4.37) IN THE PHILIPPINES?
'es, the implementing rules expressly provide that it is ·ith J Yes. in international commercial arbtaon conducted in the
prejudice to· · de ,] 18 wt out \
Ju«cal review by way cf certiorari under Rule 6; f th Philippines, party ray he represented by any persor of his/her
Rules cf Court. (Article 4.387) o o1 tne choice: Provided, Tst such representative, unless admitted to the
practice of law in the Philippines, shall not be authorized to appear
16.07 WHAT IS THE NATURE OF THE PROCEEDINGS INVOLVING us counsel in any Philippine court or any ther quasi-judicial body
THE FOLLOWING? whether or not such appearance is in relation to the arbitration in
(a) recognition and enforcement of an arbitration agroe which ho'she appenrs. (Article t.10)
ment or '8

(b) 16.11 MAY THE ARBITRATION PROCEEDINGS BE DISCLOSED TO

vacation or setting aside of an arbitral award, and THE PUBLIC?
(c) any application with a court for arbitration assi
tance and supervision, except appeal 3sis-
No, the arbitration proceedings, including the records, evidence
mnd the arbitral award, shall be considered confidential and shall not
Under Article 4.38, proceedings for recognition and %a# be published except:
ment of'an ·it - niorce
a nrturnton agreement or for vacation or getti: ·id o ¢
a arbitral rd, vng as«de (a} with the consent of the parties; or
awara, an«d any application with a court for arbitration
t.. s,
.
ass1stance and supervision, except appeal, shall be deemed as, e
;4 (b) foe tho limited purpose af disclosing to the court relevant
proceedings. speca
documents in cases where resort to the court is allowed herein.

16.08 WHICH COURT HAS JURISDICTION TO TRY THESE CASES?7 Provided, houweuer, That tho court in which the action or the
CITE THE VENUE THEREOF. appeal is pending mazy issue a protective order to prevent or prohibit
disclosure of documents or information eontaiming secret processes,
These cases may be fled with the Regional Trial Court where: developments, research and other intormation where it is ±shown
(a) the arbitration proceedings are conducted; that the applicant shall be materinily prejudiced hy an authorized
(b) where the asset tu be attached or levied pan, or the disclosure thereof (Article 4.4i)
l to
be enjomed is located; ' eac
16.12 IS A PETITION FOR RECOGNITION AND ENFORCEMENT OF
(c) where any af the parties to the dispute resides or he its AWARDS SUMMARY IN NATURE?
place of business; or r 1as ts
Yes, n petition for recognition and enforcement of wnrds
(di)in the National Capital Judicial Region at the ti, %44,
brought before the court ehall be heard and dealt with summarily in
applient. (Article 1.38) ' oPnon o fthe
accordance with the Special ADR Rules. (Article 4.4)
16.09 IS NOTICE OF PROCEEDINGS TO PARTIES MANDATORY7 16.13 WHAT IS THE CONSEQUENCE WHEN A PARTY DIES AFTER
'IF a special proceeding for recognition and enforcement MAKING A SUBMISSION OR A CONTRACT TO ARBITRATE?
ot an arbiani award, the court shall send notice to the arties at
their address of record in the arbitration. or if any 'tat Where s party dies after making a submission or a contract to
pant e arbitrate as prescribed in these Ruics, the proceedings may be begun
served notice at such ndress, at auch part's last k dd
'Th, : -"· RII S IFtKnown ad« "ess or continued upon the application af, or notice to, his/her executor or
e notice shall be sent at least 15 days before the dato set far the
initial hearing of the application. (Article 4.39) administrator. or temporary administrator of his'her estate,

,
 it, AL'TEI4N''!IVE, IlSF'TE, I; Ar1ti1 +'Ail't 14
AND 'IHI, Hi'TAT0N 1w I{le l egudatn of the Alternatir
t'Ip·ts'TI lw· h + ot
! Impui Helt±on \el. of 2t-4
ln any such ease, the court. may issue an order vxteding the J
(iw) 'T'he travel and other expenses of witnesses to
tame within which rotice of a motion to recognize or vacate an award the extent such expenses zure approvad by the
must be served. Upon recognizing an award, where a party has died rbtral tribunal;
since it was tiled or delivered, the court must enter judgment in the
name of the original party; and the proceedings thereupon are the (v) The costs fro legal representation and assis-
same as where a party dies after a verdict. (Article 4.43) tanee of the successful party if such coats wero
claimed during the arbitral proceedings, and
16.14 WHAT RULES SHALL GOVERN A MULTI-PARTY ARBITRA only to the extent that the arbitral tribunal
TI0N? - determines that the amount of such costs is
reasonable; and
When a single arbitration iuvolres more than two parties, the
foregoing rules, to the extent possible, shall be used, subject to such (vi) Any fees ad expenses of the appointing autho-
modifications consistent. with this Chapter ns the arbitral tribunal I rity.
shall deem appropriate to address possible complexities of a multi- t (b) The fees of the arbitrul tribunal shall be reasonable
party arbitration (Article 4.44)
in amount, taking into account the amount in dispute, the com-
plexity of the subject matter, the time ±pent by the arbitrators
16.15 MAY THE PARTIES AGREE TO CONSOLIDATE PROCEED.
and any other relevant circumstances of the case.
INGS AND CONCURRENT HEARINGS?7
-
I
If an appointing authority bas been agreed upon by the

I
Yes, the parties and the arbitral tribunal may agree
parties and if such authority has issued a schedule of fees for
(a) that the arbitration proceedings shall be consolidated arbitrators in international cases which it administers, the
with other arbitration procoedings; or arbitral tribunal in fixing its fees shall take that schedule of
(b) that concurrent hearings shall be held, on such term
fees into account to the extent that it considers appropriate in
may be agreed. " er ts as the circumstancos f tho case,

Unless the parties agree to confer such power on the arbitral If such appointing authoriy has not issued a scedule h
tribunal, the tribunal has no power to order consolidation of arbitra- of fees for arbitrators in international cases, nny party may,
ton proceedings or concurrent hearings. (Article 4.45) at any time request the appoiniing authority to furnish a
attement setting forth the basis for establishing fees which is
16.16 DISCUSS THE COSTS OF ARBITRATION IN THE ARBITRAL customarily followed in internatiunnl cases in which the autho
TRIBUNAL'S AWARD. rity appoints arbitrators. If the appointing authority consents
Article 4.46 provides: to provide such a statement, the arbitraul tribunal, in fixing its
fees, shall take such information into account to the extent
"(a) The arbitral tribunal shall fx the costs of arbitra- that it considers appropriate in the circumstances of the case,
tion in its [Link] term "costs" include only:
(e) In cases referred to in the second and third sub-
(i) The fees of the arbitral tribunal to be stated paragraphs of paragraph (h) of this Article, when a party so
separately as to each arbitrator and to be fixed requests and the appointing authority consents to perform the
by the tribunal itself in accordanee with the function, the nrbitral tribunal shall fix its fees only after con-
paragraph (b) af this Article; sultation with the appointing authority which may make any
(i1.' ) T1be travel and ather expenses incurred by the comment it deems appropriate to the arbitral tribunal concern-
arbitrators; ' ing the fees.
(ii) The costs of expert advice and of other sssis- (d) Except as provided in the next sub·paragraph of this
tance required by the arbitral tribunal:t paragrapb, the cost3 of arbitration shall, in principle, be borne
 TH AM'!IHNAT'IVE AMIT IKE{+H,+ Tu1l ' w'II
ANI+ TH ARITA1\0N 1,AW ('/pits 'l'hush· he- no I(hr l ltlof tl- lu ttt
I pt. Ii 4it ts wt 4t 'ft

by the . unsuccessful part· , Hoowever, the e arltral

y,
r.
·j, ,
trill may I
1
Chapter 5
apportion each of such costs between the partie ; ; 4 DOMESTIC ARBITRATION
m .: Wies l 1l «eier-
Ines th at apportionment is reasonable. tali·
the $. 'R IR, aatng :mtn account RULE 1 -- General Provisions
tie circumstances of the case.

With respect to the costs of legal representation and 17.00 WHAT IS THE SCOPE OF APPLCATION OF DOMESTIC ARBI-
TRATION IN CHAPTER 5?
"Stance retrod to in paragraph te) of paragraph (a (iii) of
this Article, the abitral tribunal, taking into account the cir. The scope of application of Domestic Arbitration in Chapter 5
· cumstan&es af the case, shall be free to determine ·hi:h party eludes
shall be: 'Imme w/cl
a such costs or may- apportion such costs at
Ru ueiween the tie (a) Domestic arbitration, which is not international as
purtes jf·'it determines that gppointment is reasonable. defined in paragraph C8 of Article 1.6 shull continue to be go
When the arbitral tribunal issues an order for the termi- verned by R.A. No. 876, otherwise know as "The Arbitration
nation of the arbitrul proceedings or makes an r%4 Law." as amended b y the ADR Act. Articles 8, 10, 11. 12, 13,
te :. ,. e. " test award oh agree
erms, it shall fix the costs: af arbitration M :
d to in para- 14, 18, and 19, and 29 to 32 of the Model Law and Sections
hs , 't+IOI To[erred
grapl (b), (c) and (td) of this Article in the context f th
or award. r
TOI that order
22 to 31 of the ADR Aet are specifically applicable to domestic
arbitration.
(c) The arbitral tribunal, on its establishment, In the absence of a specifit applicable provision, all other
may
to
request each party deposit an equal amount as an advance for rules applicable to international commercial arbitration may be
the costs referred to in paragraphs (). (ii) ad (iii) of applied in a suppletory manner to domestic arhitration.
(a) of this Articlo. +. anc au) u:paragraph
(b) 'This Chapter hall apply to domestic arbitration
~,,'ie the course of the arbitral proceedings. the arbitra whether the dispute is commercial, as defined in Section 2I of
nal may request supplementary deposits from the parties. the ADR Act, or non comcrcial, by an arbitrator who is a pri
vate individual appointed by the parties to hear and resolve
If' an appointing authority has been agreed upon by the
parties and when a party so requests and the a .,,' their dispute by rendering an award; Provided 'That, although
thorjtv co ·. or ·9point1ngy au a construction dispute may be commerciai, it shall continue to
.y nets to perform the function, tie arbit tl ttib
shall fi th • . " ar ra tr mum be governed by E.O. No. 1008, s.1985 and the rules prorul-
I e amounts of any deposits or supplementary depo-
sits only after consultation with tho appointing authority which gated by the Construction Industry Arbitration Commission.
may make any comments to the arbitral tribunal which it (c) 'Iwo or more persons or parties may submit. to 8rbi-
deems appropriate concerning the amount of such deposits d -tration by one or more arbitrators any controversy existing
supplementary deposits. 3113 an
between them at the time of the submission and which may be
the subject of an action; or the parues to any coutract may in
Ifthe required deposits are not paid in full within 39 davs
""eeipt of the request, the arbitral tribunal shall so [Link] m such contract agree to settle by arbitration a controversy there-
parties in order that the ruquired payment may be made. f after arising between them. Such submission or contract shall
such payment is not mnde, the arbitral tribunal may orde th be valid, enforceable and irrevocable, save pun euch grounds
suspension or termination of the arbitral prvwvedinc, "·e as exist at law for the revocation of any contract.

After the award has been made, tho rbitral tribunal shall Such submission or contract may include questions arising
render an accounting to the e part·ti
ies offth . received
tie deposits
out of valuations, appraisals or other controversies which may
o and
return any unexpended balance to the purtie. be collateral, incidental, precedent or subsequent to any dispute
between the parties.
 it \t,TR!TI DE:.4'l rt i u+ in+ rt'I Itl
+NI IHI, AM'W'TWA'TI+», lpMer lhs lop+le ts Hue l lKegtnfwm l Ile lletwtvr
lots felts wt ut 46A

controversy cannot. h [Link] whwre «w »! the prties

to the controversy i an iufant, ur a person judicially «declared tu
I 17.02 WHEN IS A PARTY DEEMED TO HAVE WAIVED HIS RIGHT
TO OBJECT?
be incompetent, unless the appropriate court having jurisdiction 'The following constitutes a waiver of right to object:
approved a petition for permission to submit such controversy to
arbitration made by the general guardian or guardian ad 'item of (a) A party shall be deemed to bave waived his righu
the infant or of the incompetent, to object to non-complunc with any non-mandatory prov1son
of these Rules (from which the parties my derogate) mr any
But. where a person capable of entering into a submission or requirement under the arbitration agreement wbent
contract has knowingly entered into the samo with a person inea-
pable of so doing, the objoction on the ground of incapacity can be () he/she/it knows of such nun-compliance; and
tnken only in behalf af the parson s incapacitated. (Article 5.) (i) proceeds with the arbitration without stating
his/her/its objections to such non-compliance
17.01 HOW SHOULD THE DELIVERY OF WRITTEN COMMUNICA- without undue delay or if a time-limit u pr-
TION BE MADE? vile~d therefor, within such period of time.
The delivery of written comrnunication can be made through (b) If an nct is required or allowed to be done under
the following: this Chapter, unless the applicnhle rule or tho agreement uf
(a) Except as otherwise agreed by the parties, a written the parties provides a different period for the act to be done,
communirtion from one party to the other or to the arbitra- it shall be done within a period of 30 days from the date when
tor or to an arbitration insitution
t or from tho arbitrator or sucb act could have been done with legal effect. (Article 5.3)
arbitration institution to the parties shall be delivered to the
addressee personally. by registered mail or hy courier service. 17.03 DOES A COURT HAVE THE RIGHT TO INTERVENE?
Such communication shall be deemed to have been received In matters governed by this Chapter, no court shall intervene
on the date it is delivered at the addressee's address of record, except in accordance with the Specinl ADR Rules, (Article 5.4)
place af business, residence or last known address. 'The com-
mancaton, as appropriate, shell be delivered to each party 17.04 WHAT OTHER FUNCTIONS MAY BE PERFORMED BY THE
ta the arbitration and to each arbitrator, and, in institutional APPOINTING AUTHORITY?
arbitration, one copy to the administering institution. Article 5.5 entitled "Court or Other Authority for Certain Fune-
ib) During the arbitration proceedings, the arbitrator tions of Arbitration Assistance and Supervision" provides:
may order a mode of delivery nnd a rule fur roceipt of written "The functions referred to in paragraphs t¢) ad (dy of
communications diffcrnt from that provided in paragraph (a) Article 5.10 (Appointment of Arbitrators), paragraph (a) of
ol this Article
Article 5.11 (Grounds for Challenge), and paragraph (a) of
(e} If n party is represonted by counsel or a represent.a Article 5. 13 (Failure or Impossibility to Act), shall be performed
trve, written communications for that party shall be delivered by the appointing authority, uless the latter shall fail or
to the addresa of record of sueh counsel or representative. refuse to act within thirty (3l)) daye from receipt of the ruquet
in which case, the applicant may renew the application with
(d) Except as the parties may agree or the arbitrator
may direct otherwise, a written communicntion mnv be deli- the court." {Article 5.5)
sered by ekvtronir mal or facsimile transmission or bw such
other means that will provide a record of the sending and RULE 2- Arbitration Agreement
receipt thereof at the recipient's mailbox (electronic inbx).
18.00 WHAT IS THE FORM OF AN ARBITRATION AGREEMENT?
Sura cormunicalion shall be deemed to lave been received
on the sue date of its transmittal and receipt in the mailbox An arbitration agreement shall be in writing. An agreement is
(electronic inboxi. (Article 5.2) in writing if it is contained in a documnent signed by the parties or
 l' I'i ET'ARN'WE IE :t 1ti1+ +A 1
ANf T'Ht, IT44\44 4.A lu µ:\1h,኏111nr1 of the J\ltct'l\l'.UV8
1,,,111• 1111 1,111,,• 1(1111•11 Jlllli
tuts+ 'Th+
I+put I+ewltun Ac.t 1f 404

in an exchange of letters, telex, telegrams or otlwr mem of tele- After the [Link] of the arrb-itral1 trib 0' n1 and during s;

communicntion which provide a record oaf the agreement, or in an . tic · terim measure ot , protection,
.rtitral proctvdits, a request tor an mne ·'rul zjl al or to
exchange at statements af claim and defense in which the existence .r o«sication ihercot. may be
made witthe a-bi?[;""tale
of an agreement. is alleged by one party and not denied by the other. hes extent that the arbitral tribunal has no power to :;_
The reference in a contract to n document containing nn arbitration et effectively, the request may he made with the court. (Article
clause constitutes an nrbitrntion gruement provided thnt the con. •, pars. a and b)
tract is in writing and the reference is such as to make that clause
part of tho contract. (Article .6) 18.04 WHAT ARE THE RULES ON INTERIM OR PROVISIONAL
RELIEF THAT MUST BE OBSERVED?
18.01 MAY A PARTY REQUEST THE COURT TO STAY THE ACTION The following rules on interim or provisional relief shall be
AND REFER THE DISPUTE TO ARBITRATION? alerve:
A party to an action may request the court bofore which it is () Any party may request that interim or provisional relief
pending to stay the action and to refer the dispute to arbitration in be granted ginst the adverse party.
accordance with their arbitration agreement not later than the pre-
(i) Such relief may be granted:
trial conference. Thereafter, both parties may make a similar request
with the cout, 'I'he parties shall be refrred
e to arbitration unless the (aa) To prevent irreparable loss or injury;
court finds that the arbitration agreement is null and void, inopera- (b) To provide security for the performance of an obli-
tive or incapable of being performed. (Article 5.7a) aton;
Where an action referred to in paragraph (a) of this Article bas (ce) To produce or preserve evidence; or
been brought, arbitral proceedings may nevertheless be commenced (dd) To compel any other appropriate act or omissions.
or continued, and an awart may be made, whiic the issue is pending
before the court. (Article [Link]) (i) The order granting provisional relief mny be conditioned
upon the provision of security or any act ar omission 8pe-
18.02 WHAT MUST THE COURT DO WHEN THE ACTION IS cilied m the order.
COMMENCED BY OR AGAINST MULTIPLE PARTIES, ONE
(iv) Intarim or provisional relief is requested by written apPli
OR MORE OF WHOM ARE PARTIES TO AN ARBITRATION • ·itted by reasonable means to the arbitra
caton tra
transnu '' lits. zht, des
AGREEMENT? tribunal and the pary against whom relief s souEI, "
Where the action is commenced by or against multiple parties, eribing in appropriate detail of tho procise relief. the par'Y
one or rare of whom are partios to an arbitration agreement, the against whom the relief is requested, the ground for the
court shall refre to arbitration those parties who are bound by the relief, and the evidence supporting therequest.
arbitrtion agreement although the civil action may continue as to (e) 'The order either granting or denying an applicatoi n lo
those who are not bound by such arbitration agreement. (Article 5.7) inter relief shall be binding upon the parties.

18.03 MAY A PARTY REQUEST FOR AN INTERIM MEASURE OF (vi) Either party may apply with the court for assistance i
PROTECTION? implementing ar enforcing an interim measure ordered by
an arbitral tribunal
Yes, it is not incompatible with an arbitration agreement for a
(vii) A PepartyY who does not comply with the order shall be liable
party to request fem n court, bafore the constitution of the arbitral inchding
fr all damages, resting from noncom]pliance, " . -
(I) :. ¢

tribunal or during arbitral proceedings, an interim measure of •኏-...1 [Link] attorney'& fees, paid in ob-
protection and for a cuurt Lo grant such measure. ll expense8, +IU
taining the order's judicial enforcement.
 IL%
TI
it M'EHN'IHVI II;I'TE ;M.A rPJ Ir 1c,
1 •• 11, .. t
1•11t11l1ui11111fUJ, i\11, t111111'•1•
I 'hasp+ ls+ I ii1+ I I ltl.t•
AND TH' AKI'TA'TIO» [Link] tiow wt t kM
tot+- Ke

18.05 WHAT ARE THE MATTERS DEEMED INCLUDED IN THE I ailint · wh nprvwurd,
INTERIM MEASURES OF PROTECTION? () in an arbitration with three arbitrators, each party shall
int one turbitrator, and the two arbitrators thus
Unless otherwise agreed by the parties, the nrbitral tribunal appott 4' • . if
third arbitrator; 11 a party
4,: ,t,,
amwointed shall appoint the
'is
a
may, al the request uf a party, order any party to take such interim
measures of protection as the arbitral tribunal may consider neces- t appoint the arbitrator within 30 days of receint
sary in respect of the subject matter of the dispute following the of a request to doI so f•from t'-
e ORI! ">7' 00' tf tn(). two
• l-ul •r1.1rt.v
Rules in this Article. such interim measures may include but shall arbitrators fail to agree on the third
arbitrator wthin 39
not be limited to preliminary injunction directed against a party, a of their appointment, the appointment shall be made,
dvs
appointment of receivers or detention, preservation, inspection af upon request of a party, by the appointing authority}
property that is the subject of the dispute in nrbitration. Either in an arbitration with u cle arbitrator, if the parties r
(ii) appointed.
party may apply with the court for assistance in implementing unable tu agree on tho arbitrator, he/she shall be
or enforcing an interim meaure ordered by an arbitral tribunal. party, by the appointing uuthurity.
upun request tof a
st
i '·
(Article 5.8)
(Article 5.10, par. c)
RULE 3 - Composition of Arbltral Tribunal
Where, mder an appointment procedure agreed upon by thc
19.00 HOW MANY ARBITRATORS MUST CONSTITUTE AN ARBI- parties,
TRAL TRIBUNAL? a party fails to act or appoint an arbitrator as required
(
The parties are free to determine tho number of arbitrators. under such procedure;
Failing such determination, the number of arbitrators shall be tbrve. the parties, ar two arbitrators, are unable to appoint. 8n
(Article 5.9) (~)
arbitrator or racb an agreement expected of them under
such procedure;
19.01 WHO MAY BE APPOINTED AS ARBITRATOR? :. ;t4; r;le to appointan

'ny person appointed to serve as an arbitrator must be of legal (ii a third party, ineluding an insttunon, 1a1s ,,

arbitrator or tn perform auy function entrusted to it under

age. in full enjoyment of his/her civil rights and knows how to read
and write. No person appointed to sorve as an arbitrator shall be
such procedure, or
related by blood or marriage within the sixt hdegree to either party (iv the multiple claimants or the multiple respondents is/are
to the controversy. No person shall serve as an arbitrator in any pro- unable tu appoint ita/their respective arbitrator, any par
ceeding if he/she has or has had financial, fiduciary or other interest may request the nppointing authority to appoint an nrhi
in the controversy or cause to be decided or in tho result of the pro- trator
ceeding, or bas any personal bias, which might prejudice the right of
any party to a fir and impartial award. I making the appointment, the appointing authority snull
. d ..I h呸u· r኏ pective t"ounscl to Llppe-8.l' h0fo1኏
summon tnh partes art those
No party shall select as an arbitrator any person to act as his/ said authority on the date, time and place set by it, for 1e purpe
her champion or to advocate his/her ause. (Article 5.I0, par. a) :. · t? a sole nrhitrtor. If a sole arbitrator 1
of selecting and appoint2n """ not. take place s,

not appointed in such meeting, or the meeting ao ' ;

19.02 WHAT IS THE PROCEDURE IN THE APPOINTMENT OF ARBI- wzause of tbe absence ot either vr both parties despite due no!me,
TRATOR OR ARBITRATORS? the appointing authority shall appoint the sole arbitrator. (Article
Under paragraph b of Article 5. 10, the parties are free to agree 5.10. par. d)
on a procedure of appointing the nrbitrtar or arbitrators. If, in the If' the default appointment of' an arbitrator is objected to by a
contract for arbitration or in the submission, a provision is made for
arty on whose behalf the defult a appointment is to be made, and
a method of appointing nn arbitrator or arbitrators, such method , the appointing authoriw for additional
defaulting party requests
ahall be followed.
 rtII Il
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time to appoint his/her arbitrator, the appointing authority, Irving upun or, in tetnult t/wreaf, by the arbitrators appointed. (Article
10, par- )
regard to the circumstances, may give the requesting party not more
than N days to make the appointment Any clause giving one of the agreement, if otherwise valid, shall
hw construed as permitting the appointment of one arbitrator by all
Ii the abjection of a party is based on the ground that the party claimants and one arbitrator by all respondents. The third nrhitrntor
did not fail tu rhooe and appoint an arbitrator for the arbitral tri-
hall be appointed as provided nbove.
bunnl, there shall be attached to tle objection the appointment of
an arbitrator together with the latter'a acceptance thereof and If all the claimants ur all the respondents canot decide among
crnelum vitae. Otherwise, the appointing authority shall appoint themselves on an arbitrator, the appointment shall be made for them
by the appointing authority. (Article 5.10, par. j)

l
the arbitrator for that party. (Article 5.10, par. e)
In making n default gppointment, the appointing authority The appointing authority may adopt guidelines for the making
shall have regard to such considerations a are likely to secure the of a Requeat for Appointment. (Article 5.10, par. k)
zppointmnent of an indeperdent and impnrtial arbitrator. In order Except as otherwies provided in the guidelines of the appoint-
to achieve speedy and impartial justiee nd to moderate the cost of' ing authority, if any, a Request for Appointment shall include, as
arbitration, in choosing an arbitrator, the appointing authority shall applicable, the following:
give preference to a qualified person who has a place of residence
(i) the demand for arbitration;
or business in the same general locality ns the agreed venue of the
arbitration and who is likely to accept the arbitrator's fees agreed (ii) the name's and curricula vitae of the appointed arbitr-
upon by the parties, or as fixed in accordance either with tle internal tor's;
guidelines or tle schedule of fees approved by the administering (iii) the acceptance of his'her/its appointment of the appointed
institution or by the appointing authority. (Article 5.10, par, f) arbitrator's;
'The appointing authority shall give notice in writing to the (iv) any qualification or disqualification of the arbitrator as
parties nf the appointment made or its inability to comply with the provided in the arbitration agreement;
Request for Appointment and the reasons why it is unable to do so, in (v) an executive summary of the dispute which should indicate
which later case, the procedure described under Article 5.5 (Court or the nature of the dispute and the parties thereto;
Other Authority for Certain Functions of Arbitration Assistance and
Superuison) shall apply. (Article 5.I0. par. g) (vi) principal office and officers of a corporate party;
(vii) the person's appearing as counsel for the party/ies; and
A decision on a matter entrusted by this Article to the appointing
authority shall be unmediauely executory and not subject to appeal (viii) information about arbitrator's fees where there i3 an
or motion for reconsideration. The appointing authority shall be agreement between the parties with respect thereto.
deemed to have been given by the parties discretionary authority in I institutional arbitration, the request shall include such
making the appointment but in doing so. the appointing authority further information or particulars ns the ndministering institution
shall have due regard to any qualification or disqualification of an sball require. (Article 5.10, par.I)
arbitrator#s under paragraph (a) of Article .10 (Appointment of
Arbitrators) as well as any qualifications required of the arbitrator/s A copy af the Request fro Appointment shall be delivered to the
by the agreement of the parties and to such considerations as are adverse party, Proof of such delivery shall he included in, and shall
likely t secure the appointment of an independent and impartial form part of, the Request for Appointment filed with the ppointing
arbitrator {Article 5.10, par. h) authority. (Article 5.10, par- m)
A party upon whom a cpy of the Request fro Appointment is
The chairman of the arbitral tribunal shall be selected in
accordance with the agreement of the parties and/or the rules agreed communicated may, within seven days of its receipt, file with the
 II 'I'I AM,TIN''TI Ii+rt it± tu t .AMI I
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appointing authority his/her'its ahjeton/s to tw et ·vtk tor an

extension of rime, not exceeding t days from rvetit »i th ••juext,
il {hr hat rntor my be challenged only if:
. : thDMl
at zivs rise to justifiable
{ii eiweuml atucos east L' ' +

to appoint an arbitrator r act in accordaner with the osedure doubt as to his/her impartiality or independence;
agreed upon or provided ly these Rules. (Article 5.1Mi gr. r
ti} he/she does not possess qualifications as provided tro
Within the afrementioned
o periods, the party seeking the in this Chapter or those agreed to by the parties;
extension 8hull provide the appointing authority and the adverse
() he/she is disqualified to act as arbitration under
party with a copy of the appointment of his/hr arbitrator. the latter's these Rules;
curriculum uitae, and the latter's accptnnee of the appointment. In
the event that the said party fails to appoint an arbitrator within said (iv) he refuses u respond to questions by a party regard-
ing the nature and extent of his professional dealings
r

I
period, the appointing authority shall mako the default nppointment.
(Article 5.10, par n) with a party or its counsel.
An (e) If, after appointment but before or during hearing, a person
arbitrator, i accepting an nppointment, shall include, in
his/her acceptance letter, a statement that:
wot«ai serve ii a »riiaor iii isower ap
likely to create a presumption of bias, or
whic hhe/she belie',,',
gr"""" f;
(i)
arbitration rules agreed upon by the partics,r·
he'she agrees to comply with the applicp!l: !ww, the
He?ault
thereof, these Rules, and the Code of Fthies for Arhi-
;' disqualify him/her as an impartial arbitrator, the arbitrator she ir-
aedataly disclose such information to the parties. Thereafter, the
par ties ray agree in writing:
trutors in Domestic Arbitration, if any:
(i) to waive the presumptive disqualifying circum-
(ii) he/she accepts as cumpensntion the arbitrator's fees tances; or
agreed upon by the parties or ns determined in accordance
(ii) to declare the office of such arbitrator vacant ny
with the rules agreed upan by the parties, or in default such vacaney sball be filed in the same manner the
thereof, these Rues. nnd
original appointment was made.
(iii) he agrees to devate as much time nnd nttuntion tu the
arbitration as the crcut1stances mny mquire in r«ei r to
(d) After initial disclosure is made nnd in the of the course
;. : A;as. when the arbtrator
i discovers circumstance#
achieve the abjective of a speedy, effective and fnir r€so nrbtraton proceeon· "I •
tall
that are ukaly to create a presumption of bias, he'she sh""""
lution of th dispute. (Article 5.10, par. o)
ditely disclose those circumstances to the parties. A writ" ''
closure is not required where it is made during the arbitratiuu ant t
19.03 WHAT ARE THE GROUNDS TO CHALLENGE AN ARBITRA-
TOR? appears in a written record of the nrbisration proceedings.
(e) An arbitrator who has or has had financial or professional
(a) When a person is approached in connection with his/her den!ings with a party to the arbitration or to the counsel u! either
possible appointment as an arbitrator, he/she shall disclose any
party shull disclose in writing such fact to the parties, and shall,
circumstance likely to give rise tu justifiable doubts as to his/her in good faith, promptly respond to questions from a party regarding
impartiality, independence, qunlifictions and disqunhfictions. An the nature, extent and age of such financial or professional dealings.
arbitrator, from the time of hie'her appointment and throughout
(Article 5.)
the arbitral proceedings, shill without delay, disclose any such
circumstances to the parties unless they have already been informed 19.04 WHAT IS THE PROCEDURE TO CHALLENGE AN ARBITRA-
of them by him/her.
TOR?
A person, who is appointed as an arbitrator notwithstanding The procedure to challenge an arbitrator is as follows
the disclosure made in aecordace with this Article, shall reduce the 'Te parties are free to agree on a procedure for chal-
disclosure to writing and provide a copy of such written disclosure to arbitrator, subject to the provisions of paragraph (c)
all nrties in the arbitration. lenging an
of this Article.

_
 Ti, ALT'#IHNAT'IW JM'A IR: 4 t'tut
AND 'TT, AI{H'TIRA'TiN I,AW
'A t't L 1'I
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tr· H lutior et af 20(4
(b) F'ailing such agreement, a partywhr tsd. to haul-
lenge an arbitrator shall, within I5 days after becuin; ware (i) Notwithstanding the rejection of the challonge by the
of the constitution of the arbitrnl tribunal or after becoming arbitrator, the parties may, within the same I5 days period
aware of any circumstance referred to in paragraph (b} of agree to the challenge.
Artici 5.11 (Ground sfor Challenge), send a written statement (j) In default of an agreement af the parties to agree on
of the reasons for the challunge to the nrbitra! tribunal. Unless the challenge thereby replacing the arbitrator, the arbitral tri-
the challenged arbitrator withdraws from his/her office or the bunal shall decide on the challenge within '0 dnys from receipt
other party agroos to the challenge, the arbti ral tribunal shall of the challenge.
decide on the challenge.
(k) If the challenge procedure as agreed upon by the
tc) If challenge under nny procedure agreed upon parties or as provided in this Article is not successful, or a party
by the parties or under the procedure of paragraph (b) of this or the arbitral tribunal shall decline to act, the challenging
Article is not successful, the challenging party may request party may request the appointing authority in writing to decide
the appointing authority, within 30 days after having received on the challenge within 30 days after having received notice of
notice of tbe decision rejecting the challenge, u decide on the the decision rejecting the challenge. The appointing authority
challenge, which decision shall be immediately shall decide on the challenge within 15 days from receipt of
executory and
not subject to appeal or motion for reconsideration. While the request. If the appointing authority shall fail to act on the
such a request is pending, the arbitral tribunal, including the challenge within 30 days from the date of its rcceipt or within
challenged arbitrator, may continue the arbitral proceedings such further tire as it may fix, with notice to the parties, tho
and rake an award. requesting party may renew the request with tho court.
td) If n request for inhibition is made, it shall be deemed The request made under this Aricle shall include the
as a challenge. challenge, the reply or explanation of the challenged arbitrator
and relevant communication, if any, from either party, or from
(e A party may challenge nn arbitrator appointed by the arbitral tribunal.
him/her/it, or in whose nppointment he/she/it bas participated,
only for reasons of which he'she/it becomes aware after the (l) Every communication required or agreement made
appointment has been made. under this Article in respect of a challenge Ehall be delivered,
as appropriate, to the challenged arbitrator, to the pnrties,
(D 'The challenge shall be in writing and it shall state to the remaining members of the arbitral tribunal and to the
specific fncts [Link] provide the basis for the ground relied upon institution administering the mrbitration, if any.
fur the challenge. A challenge shall be made within 15 days
from knowledge by a party of the existence of a ground for a
challenge or within 15 days from the rejection by an arbitrator
'I (m) A challenged arbitrator shall be replaced if'
() he'she withdraws as arbitrator. or
of a party's request for his'hor inhibition. () the parties agree in writing to declare the office
· (g) Within 16 days of receipt of the challenge, the cha-
lenged arbitrator shall decide whether he/she shall accept tho
l of arbitrator vacant, or
ii) the arbitral tribunal de«ides the challenge and
challenge or reject it, If he'ste accepts the challenge, be/she declares the office of the challenged arbitrator
shall voluntarily withdraw as arbitrator, Lf he/she reej cts it, ha/ vacant, or
she shall communicate, within the same period of time, his/her (iv) the appointing authority decides the challenge
rejection of the challenge and state the facts and arguments and declares the office of the challenged arbi-
relied upon for such rejection, '
trator vacant, or
(l) An arbitrator who does not accept tho challenge shall (v) in default of the appointing authority, the court
be given an opportunity to be heard decides the challenge and declaros tho offiee nf
the challenged arbitrator vacant.
 'I'H, [Link]'I'VI DI+tr[' RE«t+tu+
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N {HI AI'TH'TINN [Link]
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(n) The decision of the parties, the urbtrnl tribunal, the hnuse of his withdrawal from office for any other reasan or because
appointing authority, or in proper cases, the euurt, tw accept or f the revocation of his mandate by agreement of the parties or in any
eject a challenge is not subject to appeal or motion for reconei other case of termination of his'her mandate, a substitute arbitrator
deration.
·ball be ppointed according to the rules applicablc to the arbitrator
(o) Until a derision is made to replace the arbitrator being replaced. (Article [Link])
under this Article, the arbitration proceeding shall continue
notwithstanding the challenge, and the challenged arbitrator RULE 4-- Jurisdiction of Arbitral Tribunal
shall continue to participate therein as an arbitrator. However,
20.00 WHAT ARE THE GROUNDS FOR OBJECTION OVER THE
if the challenge incident is raised before the court, because the
parties, the arbitrl tribunal or ppointing authority failed JURISDICTION OF THE ARBITRAL TRIBUNAL?7
or refused to act within the period provided in paragraphs (a) When a demand for arbitration made by a party to a dis-
() and () of this Article, the arbitration proceeding shall be pute is objected to by the adverse party, the arbitrai tribunal shall,
suspended until after he oourt shall have decided the incident. in the first instance, resolve the objection when made on any of the
The arbitration shall be continued immediately after the court following grods:
has delivered an order on the challenging incident. It' the court ()j the arhitration agreement is in existent, void, unen-
agrees that the challenged arbitrator shall be replarod, the forcable or not, binding upon a person for any rea-
parties shall immediately replace the arbitrator concerned son, including the fact that the adverse party is not
(p) 'The appointment of a substitute arbitrator shall be privy to said agreement,
made pursuant to the procedure applicable to the appointment (ii) the dispute is not arbitrable or is outside the scope of
of the arbitrator being replaced. (Article 5.12) the arbitration agreement; or
(ii) the dispute is under the original and exclusive juris-
19.05 WHAT ARE THE CONSEQUENCES IF THERE IS FAILURE OR diction of a court or quasi-judicial body. (Article 5.15
IMPOSSIBILITY TO ACT? par.a)
(a) it' an arbitrator becomes de jure or de facto nablo to
perform his/her functions or for other reasons fails to act without
f (o) If a party rises any of the grounds for objection, tho same
shall mot preclude the appointment of the arbitrator!a ns such issue
undue delay, his/her mandate terminates if he'she withdraws from s for the arhitral tribunal to decide
his/her office or if the parties agree on the termination. Otherwise, The participation of a party in the selection and appointment. of
if' a controvery remains concerning any of these grounds, any party an arbitrator and the fling of appropriate pleadings before the arbi-
tay request the appointng authority to decide on the termination of tral tribunal to question its jurisdiction shall nat be construed as a
the mandate, which decision shall be immediately executory and not submission to the jurisdiction of the arbitral tribunal or of n waiver of
subject tu appeal or motion fro reronsidorntion,
his/her/its right to assert such grounds to challenge the jurisdiction
(b) If, under this Article or Articl 5.12 (Challenge Procedure) of the arbitral tribunal or the validity of tho resulting awsrd.
an arbitrator withdraws from hishor office or a party agrees to the (e) [he respondeut in the arbitration mas invoke any such
termination of the mandate of n arbitrator, this does not imply grounds to question before the court the existence, validity, or en-
acceptance of the validity of any ground referred to in thi Article frceability
o of the arbitration agreement, or the propriety of the arbi-
5. 12. (Article 5.13) ration, or the jurisdiction of the arbitrtor and invoke the pendency
of such action ns ground fr suspension of the arbitration proceeding.
19.06 WHEN IS THE APPOINTMENT OF A SUBSTITUTE ARBITRA- The arbitral trihunal. having regard to the circumstances of the case,
TOR PROPER? and the need for the cnrly nd expeditious settlement of the dispute,
Where the mandate of an arbitrator terminates under Articles in light of the facts and arguments raised to question its jurisdic-
5.L2 (Challenge Procedure)or 5.13 (Failure or Impossibility) or tian, my decide either ta suspend the arbitration until the court has
made a decision on the issue or continue with arbitration.

s
 ''HIE, AE.TRNA1IVE IH-I'ET', [Link]\et
I! 'THIE. AITT'KATI9N [Link] 'AI''I 125
op.b+rt nt ; l~he al lteelntnss af th+ Alternative
I t+ Ket wt of 2DOM
(d) If a dispute is, under an arbitration agreement, to he sub-
ve) 'To prutduce or preserve evidence; or
mitted to arbitration. but before arbitration is commenced or while
it is pending, a party files an action before the court which embodies (dd 'To compel nny other appropriate act or omissions.
or includes as a cause of action the dispute thnt is to be submitted to (ii) The order granting provisionnl relief may be conditioned
arbitration the fling of such acrion shall not prevent the commence- upon the provision of security or any act or omission
ment of tho arbitration or the continuation of the arbitration until specified in the order.
the award is issued. (Article 5.15)
Interim or provisional relief is requested by written ap-
20.01 CAN AN ARBITRAL TRIBUNAL ORDER INTERIM MEA- plication transmitted by reasonable means to the arbitral
SURES? trihunal and the party against whom relief is sought, des-
cribing in appropriate detail the precise relief, the party
Unless otherwise agreed by the parties, the arbitral tribunal against whom the relief is» requested, the ground for the
may, at the request of a party, order any party to take such interim relief and the evidence supporting the request.
measures of protection as the arbitral tribunal may consider nece-
ssary in respeet of the subject matter of the dispute following the rules (v) The order either granting or denying an application for
interirn relief shall be binding upon tho parties.
in this Article, Such interim measures may include, but shall not be
limiied tw preliminary injunction directed against a party, appoint- (vi) ither party muy apply with the court for assistance in
ment of receivers or detention preservation, inspection of property implementing or enforcing an interim measure ordered by
that is the subject of the dispute in arbitration. (Article 5.15, par. a) an arbitral tribunal.
(ii) A parts who does not comply with the order shall be liable
20.02 WHEN MAY A REQUEST FOR INTERIM MEASURES OF fur all damage, resulting from noncomplinnce, including
PROTECTION BE MADE? all expenaes, and reasonable attorney's fee paid in obtain-
Alter the constitution of the arbitral tribunal, and during ing the order's judicial enforcement . (Article 5.16. par. c)
arbitral proceedings, n request for interim measures of protection,
or modification thereof. shall be made with the arbitral tribunal. RULE 5- Conduct of Arbitral Proceedings
'The arbitral tribunal is deemed constituted when the sole arbitrator
or the third arbitrator, who has been nominated, has accepted the 21.00 DISCUSS THE CONDUCT OF ARBITRAL PROCEEDINGS.
nomination anl written communication of said nomination and a. On Equal Treatment of Parties
acceptance has been received by the party making the requost.
The parties shall be treated equally und each pnrly
(Article 5.15. par. b
shall be given a full opportunity of presenting his/her/its
20.03 WHAT ARE THE RULES ON INTERIM OR PROVISIONAL case. (Article [Link])
RELIEF THAT MUST BE OBSERVED? b. On Determination of Rules of Procedure
The following rules on interim or provisional relief shall be (a) Subjected to the provisions of these Rules, the parties
observed: are free ta agree on the procedure to be followed by
( Ans party may request that the provisional or interim the arbitral tribal in conducting the proceedings.
relief be granted against the adverse party, Failing such agreement, the rbitral tribunal may
05)
(i) Such relief may be grarted: subject to the provision of the AL Act, conduct the
arbitration in such manner as it considers appropn-
(a) To prevent irreparable loss or injury;
ate. The power conferred upon the arbitral tribunal
{bb) To provide security for the performance of an obliga- includes the power to determine admissibility, rele
tion; vance, materially nnd [Link]. (Article5. 18)
 TH ALT'EIKNTIWI IISTU 'TI I;AIL Ht AN'TI 137
ANI 'I'TH AHUITIL'TI0N L,AW «'h,upon 'I, Ile untin luulo amt vulat lens f tha Alternnriwvo
l+pita l~snlr:ten Art of Y»,

c. On Place of Arbitration .d dare stated therem whch shnll not be lass than
(a) The parties are free ta agree on the place of arbitra- 30 days from receipt of the demand.
tion. Failing such agreement. the place of arbitration (e) If the rhitration agreement provides for the estah-
sball be in Metro Manila unless the arbitral tribu- lishment of n rbitral tribunal of three arbitrators,
nal, having regard to the circumstances of the case, the demd shall mare the arbitrator appointed by th
including the convenience of the parties, shall decide claimant. It shall include the curriculum vitae ef the
on a different place of arbitration. arbitrator appointed by the claimant and the latter's
(b) The arbitral tribunal may, unless otherwise ngreed acceptance of the appointment.
by the perties, meet at any place it considers appro- (d) Where there is no prior aurbtratiou agreement, aur-
priate for consultation among its members, for hear- biration may be initiated by ono party through a
ing witnesses, experts pr tho partie, or for inspection demand upon the other to submit their disputo to
of goods, other property or documents. (Article 5.19) arbitration. Arbitraton shall be deemed commenced
upon the agreement by the other party to submit the
d. On Commencement of Arbitral Proceedings dispute to arbitration.
(a) Where there is a prior arbitration agreement bet.
(e) T'he demand ahnll require the respondent to name
ween tbe parties, arbitration is deemed commenced
bis'hvr'its arbitrator within a period which shad! not
ns follows:
be less than 15 days from receipt of the demand. This
(i) In institutional arbitration, arbitration is com- period my be extended by the agreement of the par-
mened in accordance with the arbitration rules ties. Within said period, the respondent shall give a
of the intitution
s agreed upon by the parties. written notice to the claimant of the appointment of
(i) In ad hoc arbitration, arbitration is commenced the respondent's arbitrator and mttach to the notice
by the claimant upon delivering tu the respon- the arbitrator's curriculum vitae and the latter's
dent a demand for arbitration. A demand may nccepranco of the appointment. (Article 5.20)
be in any form stating e. On Language
(aa) the name, address and description cf each (a) The parties are free to agree on the language or lan-
af the parties; !uages to be used in the arbitral proceedings. Fail-
(bl a description of the nature and circumstan- ing ouch agreement, the language to be used shall
ces of the dispute giving rise to the claim: be English or Filipino. 'The Language/s agreed, unless
(cc) a statement of the relief sought, including otherwis spooifiod thorin, shall he in nil haring
the amount of the clnim; and all written statements, orders or other wormu-
nication by the partie sand the arbitral tribunal.
(dd) the relevant agreements, if any. including
the arbitration agreement, an copy of which (b) The arbitrnl tribunal mny order that any documen-
shall be attached: ad tary evidence shall be accompanied by a translation
into the language or langages agreed upon ty tbe
(ee) appointment of arbitrators and/or demand parties in nccordnnce with paragrnph (a} of this
to appoint.
Article. (Article 5.21)
(b) If the arbitration agreement provides for the appoint-
rent of u sole arbitrator, the demand shall include t. On Statement of Claim and Defense
an invitation of the clir:mt to the respondent to ta} Wthin the period nl time agreed by the parties or
meet and agree upon sueh nrhitrtor, the place, time determined hy tho arbitral tribunal, the claimant
l' l'It AM,IAN''II' "{H'HI E,4 tin 1
1AT't :
ANI 'I'HE AMUWTA'Ti(N 1 .w t'hp+ 'le luted in, lKulr+ d elatiws of' tlw At+rnt4vi
tmuh ·ultinn wt f ;4Kt

hnll state tbc facts supporting hillerht. vlim, thu () 'The icfinition of the issues submitted to the nr-
points at issue and the relief or remedy suught, and bitral tribunal for determination and the sum-
the respondent. shall state his/her defense in respect mary of the claims and counterclaims of [Link]
of these particulars, unless the parties may have parties;
otherwise agreed as to the required elements of such (v) 'The manner by which evidence may be offered
statements. 'The parties may submit with their state- if an oral hearing is required, the submission
rents all documents they consider t be relevant or of sworn written statements in hiou of oral
may add u reference to the documents or other evi- testimony, the cross-examination and further
dence they will submit. examination of witnesses.
tb) Unless otherwise agreed by the parties, either party (vi) 'The delivery of certain typos of communications
may amend or supplement his/herfits clsim or de- such as pleadings, terms of reference, order
[Link] durng the course of the arbitral proceedings, granting interim relief, final award and the hike
unless the arbitral tribunal considers it. inappropri- that, if made by electronic or similar means
ate to allow such amendments hnving regard to the shall require further confirmation in the form
delay in making it. (Article 5.22) of a hard copy or hard copies delivered person
ally or by registered pot.
g. On Hearing and Written Proceedings (vii) Thoe issuance of subpoena or subpoena duces
(a) In ad hoe arbitration, the procedure determined by tecum by the arbitral tribunal ta compel the
the arbitrator, with the agreement of the parties, production of evidence if either party shall or is
shall be followed. In institutional arbitration, the Likely to request it;
applicnble rules of procedure of th arbitration in. tviii The manner by which expert testimony will bu
stitution shall be fllowed.
a In default of agreement received if a prty will ar is likely to request the
of the parties, the arbitration procedure shall be as arbitrnl tribunal to appoint one or more experts,
provided in this Chapter. and in such case, the period for the submissior
(b) Within 30 days from the appointment of the arbitra- tu the arbitrator by tha rcqusting party of the
tor or the constitution of an arbitral tribunal, the ar- proposed tems r of reference for the expert, the
hitral tribumal shall call the pnrtios and their respec-j fees to be paid, the manner of payment to the
' l

tive counsels to n pre-hearing conference to discuss expert and tha deposit by the parties or the
the following matters: requosring party of such amount necessary tno
cover all expenses associated with the referrul
(i) The venue or place/s where the arbitration pro- of such issues to the expert before the expert is
ceeding may be conducted in an office space, a appointed;
business center, a function room or any suitable
(ix) The possibility of either party applying for au
pince agreed upon by the parties and the arbi. j order grang interim relief either with ar
tral tribunal, which may vary per session/hear. J bital tribunal or with the court, and. in such
ing'conference;
case, the nntre of the relief to be applied for;
(ii) The manner of recording the proceedings; () The possibility of a site or ocular inspection, be
(iii) The periods far the communication of the state- purpose of such inspeetion, and in such case,
ment uf claims with or without counterclaims the date, place and time of the inspection and
and answer to the counterclaim/s an the form the manner of conducting it, and the sharing
and contents of such plendings: and deposit of sny associated fees and expenses;
 A
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ANSI'THE AIU!'TIRA'TIM1N 1,AW Id lier»lufun et f le)f

() Iv raised during the arbitration proceeding rela-

fi) The nmaunt. t be paid to the aritral ihunal ling tu (a) rho jurisdiction of' the arbitral tritmnnl over
as fees and the associated costs, larges and one or more of the cl1ms or counter claims, or (b} the
expenses of arbitration and the manner and arbitrability of' a particular claim or counter claim,
timing of such payments; nd shnll be resolved by the arbitral tribunnl as thresh-
«xii) Such other rolovant matters as the pnrties and old issues, if the pnrtits so request, unless the ynre
the arbitral tribunal may consider necessary to intertwined with factual issues that they cannat he
provide for a speedy and efficient arbitration of resolved abead of the hearing on the merits of the
th :dispute. dispute.
ie) To the extent possible, the arbitral tribunnl and the (j) Each witness shall, before giving testimony, be re
parties shall agree upon any such matters and in de- quired to take an oath/affirmation before the arbitral
fault of agreement, the arhitral tribunal shall have tribunal. to tell the whole truth and nothing but the
the discretion and authority to rake the decision, truth during the hearing.
although in making decision, regard shall he given to () Tho rbit:al tribunal sball arrange fr the transerip
the views expressed hy both parte i s. tion of the recorded testimony of each witness and
td) 'The arbitral tribunal shall, in consultation with the require eaet party tu share the cost of recording and
parties, fix the dntels and the tire of hearing, regard transcriptian oaf the testimony of cnch witness.
being given tu the desirability of conducting and con- (I) Each party shall provide the othor party with a copy
cluding an arbitration without undue delay, of each statement or document submitted to the ar-
bitral tribunal and shall have an opportunity tu reply
(e) 'l'he hearing set shall not bo postponed except with
in writing to the other party's statements and proofs
the coulrmity
o of the arbitrator and rht parties and
only for » gootd and sufficient cause. The arbitral tri- (m) The arbitral tribunal may require the parties to pro-
bunail may deny u request to postpone or to cancel duce such other documents or provide such informa-
n scheduled hearing an the ground that a party has tion as in ita judgment would be necessary for it to
requested or is intending to request from the court or render a complete, fir and impartial uwurd
from tho arbitrator an order granting interim relief. (n) 'The arbitrul tribunal shall receive as evidence all
(f) A party ray, during the proceedings. represent him- exhibits submitted by a party properly marked and
self/herself/itsolf or through representative, et such identified at the time of submission
hearing. (o) AL the close of the hearing. the rbit:al tribunal shall
(g ) 'IT'he hearing may proceed in the absence of a party specifically inquire uf all [Link] whether they have
who fails to obtain an adjournment thereof or who, further proof or witnesses to present; upon receiving
a negative reply, the arbitral tribunal shall declare
despite due notice, fnil to be preset, by himself
herselfftself or throgb a representative, at such the hearing closed.
hearing. (p) Aiter a hearing is declared closed, no further mo-
tion or manifestation or submission may he allowed
(h) Only parties, their respective representatives, the
witnesses und the administrtive staff of the arh- except for post hearing briefs and reply briefs that
tbe parties havo agreed to submit within fixed pe
tral tribunnl shnll have the right to be present if the riod after the hearing is declared closed, or when the
parties, upon being informed of the presence of such arbitral tribunal, motu proprto or upon request of 8
person and the reason for his/her presence, interpose
party, allows the reopening uf the hearing.
no objuction thereto,
 TI, MI'CNN'IV DE AT'W (:4+ 14+
ANI» TH#, HIT'IR'TIN 1,AW I'AtT I
t'hut+r Th Ile ent Iles ail kpuLtious pf the ltrnova
Dew lReultion t uf 2004
(q Leeisiors on interlocutory matter, t hull h· he hw
the sole rbitcator or by the majority uf the nrbitrl materiality thereof has been shown to the arbitral
tribunal The arhitral tribunal ray authorize it tribunal 'The arbitral tribunnl may aleo require the
chairman to issue or release, on behalt of the arbitral exclusion of any witness during tle testimony of any
tribunal, its decision on interlocutory mattere. other witness, Unless the parties otherwise agree,
all the arbitrators in nny controversy must attenc all
tr) Except as provided in Section 17() of the ADR Aet,
the hearings and hear the evidence af the parties.
no arbitrator shall act ns medintor in any prucued-
(Article 5.23)
1ng in which he/she is acting as arbitrator even if re-
quested by the parties; and all negotiations towards . 21.01 WHEN MAY THE TRIBUNAL ORDER INTERIM MEASURES
settlement of the dispuro must take place without $

the presence of the arbitrator 呸 OF PROTECTION?

j

'The Arbitnl Tribal my order interim measures of protection

(s) Before assuming the duties of his/her office, an ar-
bitrator must be sworn by any officer authorized by
to an party under tbe fallowing cireumstances:
law to administer an oath or be required to make an (a) unless otherwise agreed by the parties, the arbitral tribu-
affirmation to faithfully and fairly bear and examine nal may, at the request of a party and in accordance with the this Ar-
the matters in controversy and make n just award ticle, order any party tu take such interim measures of protection as
according to the best his·her ability and understand- the arbitral tribunal may consider necessary in respect of the subjoct
ng. copy of the arbitrator's oath or affirmation outter of the dispute of the procedure. Such interim measures msy
shall be furnished each party ta the arbitration. , include, but shall not be limited, to preliminary injunction directed
(t) Either party may object tu the commencement or against a party, appointment uf receivers or detention of property
continuation of an arbitration proceedng unless the that is the subject of the dispute in arbitration or its preservation or
arbitrator takes an oath or affirmation as required in inspection.
this chapter. If the arbitrator stall refuse tr take an (b) Ater the constitution of the arbital tribunal, and during
oath or affirmation as required by law nnd this rule, the arbitration proceedings, a request for interim measures of pro-
he'she shall be replaced. The failure ta object to the tection, or modification thereof, may be made with the [Link] tribu-
absence of an oath or affirmation ehull be decmed a nal. 'The arbitral tribunal is deemed constituted when the solo arht-
waiver of such objection nnd the proceedings shall trntor or the third arbitrator, who has been nominated, has accepted
continue in de course and may not later be used as [Link] nomination and written communication of said nomination and
ground to invalidate the proceedings acceptance has been received by tho party making the reuuest.
(u) The arbitral tribunal shall have the power to ndmi. (c) The following rules on interim or provisional relief shall
niter onths to, or require affirmation from, nll wit. be observed:
nesses directing them to tell the truth, the whule
truth and nothing but the trath in any teatimony, (i) Any party may request that provisional or interim
oral or written, which they may give mr ofl'er in anv relief be granted against the adverse party.
arbitration hearing 'The oath or affirmation shall be (ii) Such relief may be granted:
required of every witness before his/her testimony, (aa} To prevent irreparable loss or injury;
oral or written, is heard or considered.
(oh) To provide security for the performnnc of an
() 'The arbitral tribunal shall have the power to require
obligation;
any person to attend a hearing as a witness. It shall
have the power to euhpoena witnesses, to testify (cc) To prouduce or preserve evidence; or
and'or produce document when the relevancy and (d) 'To compel any other appropriate act or omi-
ssinns,
 'TH fl, ALT'EI&'N TI, IP"IE, IR:4Wei2 Tl
A'NI 'T'HI, AH'HR+»N t,Aw I,o+ Ii u th w tu lh irrulwmo, ol 1He·,l

'
I +u lir ml lw \wt sfll

(iii) The order granting provisional

relief tay I· votht- tr) my wt fails Lu ppear at a hearing or tu prrues
tioned upon the provision of security or any aet or doemwntry yitlenct, the arbitral tribuni my contnue the
omission specificd in the order. ocvethings and make the award based on the evidence before
it. (Aricie 5.26)
(iv) Interim provisional relief is requested by written
application transmitted hy reasonable means to the 2L03 MAY THE ARBITRAL TRIBUNAL APPOINT AN EXPERT
arbitral tribunal and the party agairst whom relief is
WITNESS?
sought, describing in appropriate detail af the precise
relief, the party against whom relief is requested, the Yer, an arbitral tribunal may appoint un expert witness under
ground for the relief, and the evidence supporting the le· following circumstances:

I
r€quest, (al Unless athewwise agreed by the parties, the abitral
(v) 'The order ither granting or denying an application ritunal,
for interim relief sbnll be binding upon the pnrties. () nay appoint one or more experts to report to rt
on specific issues to be determined by the nrbi-
(vi) Either party may apply with the court. for assistance
in implementing or enfrcing
o an interim measure
' trnl trihunnl; or

I
:.
may require u party ·es th 0yet
·t t gr uIy relr-
ordered hy an arbural tribunal. i it .
ant informnntion or to prolue, tr to provide
(vii) A party who does not comply with the order shall be nczoss to, any relevant documents, goods or
liable for nli damages, resulting from noncompliance, other property for his/her insporion

'
including all expenses, and resonnbly torey's
th Unless otherwise greed by the pnrties, if a party so
fees, paid in obtaining the order's judicial enforce.
ment request qr if the arbitral tribunal considers it newesnry, tle
expert shall, after delivery of bisher written or oral veport.
(d) The arbitral tribunal shall have the power at any time, participate in a hearing where the parties have the opportrni!
o rendering the award, without prejudice to the rights of any
befre to put questions to bim'her and to present epert witnesses
party to petition the court to take measures ta safeguard and/ar con- ore to testify on the points at issue.
serve any matter which is the subjeet of the dispute in arbitration.
(c} Upon agreement of' the parties, the finding of the
21.02 WHAT ARE THE POSSIBLE CONSEQUENCES WHEN THERE expert engaged by the arbitral tribunal on the tatter/s referred
to him shall be binding upon the parties and the arbtra trihu-
IS A DEFAULT ON EITHER PARTY?
al. (Article 5.26)
Unless otherwise agreed by the parties, if, without showing
sufficient causes, 21.04 MAY THE ARBITRAL TRIBUNAL REQUEST ASSISTANCE IN
TAKING EVIDENCE AND OTHER MATTERS?
(a) the claimant fails to communicate hialher'its atate-
ment. of' claim in accordance with paragraph (a) of Article 5.222 Yes. the erbitral tribunal may request the following tom the
(Statement of Claim and Defense), the arbitral tribunal shall court:
terminate the proceedings; (a) 'The arbitral tribunal ar a party. with the npproval
of the tbitral triannl may request from a court, ussustanee
(b) the respondent fails to communicate his/herits state- in tkng evidence such as the issuance of subpoena ad testifi
ment of defense in accordance with paragraph (a) of Article 5.222 candm nd subpoena duces tecum, deposition taking, $te 0"
(Statements of Claim and Defense), the arbitral tribunai shall ocular inspection, and physical examination of properties 'The
continue the procediugs without treating such failure in itself court nun grant the request within its competence and accord-
ns an admission of the claimant's allegations; ing to its rules on taking evidence.
 PKT\ I;
I'Ai THI AM 'TINT1Wt ;Pry\, Ii:6l,Arr thats T'Io,, Ide»wpto. a Mute
id ellionf tl \it+r11vs
AI» 'TH AKITA'TT~N LAW pt+ ialuf uni rt al 'oil

21.07 WHAT IS IHE CONSEQUENCE IF DURING THE ARBITRAL

tb) The rbitral tribunal or a party to the dispute intc PROCEEDINGS, THE PARTIES SETTLE THE DISPUTE?
rested in enforcing an order of the arbitrl tribunal may request
from a competent court, assistance in enforcing orders of thr If. during arbitral proceedings, the parties settle the dispute,
arbitral tribunal, including but nat limited, to the following: the arbitral trbi unal, hall record the settlement i the form of an
rbitral award on agreed terms, consent award or award based on
(i) Interim or provision relief;
em promise
(ii) Protective orders with respect to confidentiality;
An award as rendered above shall he made in accordance with
iii) Orders of the arbital tribunal pertaining to the the provisions of Article 5,31 Form and Contents of Auard) and shall
subject matter of the dispute that may affect state that ir is an award. Such an award has the same status and
thirud persons end/or their properties; and/or fTect ns any other ward on the merits of the case. (Artirle '.3}, pars.
(iv) Examination af debtors. (Article 5.27) a and b)

21.05 WHAT ARE THE RULES APPLICABLE TO THE SUBSTANCE 21.08 CITE THE REQUIRED FORM AND CONTENTS OF AWARD.
OF DISPUTE? (a) The award shall be made in writing and shall be signed by
The srbitrui tribunal shall decide the dispute in accordanco
(a) the arbitral riburl. In arbitration proceedings with more than one
with such law as is chosen by the parties. In the absence of' such arbitrator. the signatures of the majority of all members of the arbi-
agreement, Ph~ippine I»w shall apply tral tribunal shall suffice. provided that the reason for nny omitted
(b) The rbitral tribunal may grant any remedy or relief which signature ie stated.
it deems just and equtable and within the scope of the agreement. of (B) T'he award shall state the reasons upon which is basad.
the parties, which shall include, but not be limited to, the specific unless the pnrties have agreed that no reasons are to he given or the
performance of n contract. award on agreed terms, cons&mt award hard on compromise under
In all enses, the arbitral tribunal shall decide in accordance
(c) Article 5.J0 (Settlement)
with the terms of the contract and shall tnke into account the usages fe) The award shall state it= date nnd the placed of arbitr-
of the trade applicable to the transaction. (Article 5.28) tion as determined in accordance with the paragraph (a) of Article
5,19 (Puce uf Arbitration). 'The award shall be deemed to have made
21.06 EXPLAIN HOW THE ARBITRAL TRIBUNAL RENDERS ITS
t that plnco.
DECISION.
(d ) After the award is made, copy signed by the arbitrators
ln arbtration proceedings with more than one arbitrator,
(au)
in accordance with the paragraph (u) of his Article shall be delivered
any decision of the arbitral tribunal shall be made, unless otherwise
tw each party.
agreed by the parties, by a majority of all its members. However
questions of procedure ray be decided hy the chairman of the arbitral (e} The nwrd of the arbitral tribunal need not be acknow-
tribunal, if so authorized by the parties or all members of the arbitral ledged, swnm to under cath, or affirmed by the arbital tribunal nn-
tribunal. less so required in writing by the parties. If despite such requirement,
(b) Unless otherwise agreed upon by the parties. the arbitral the arbitral tribunnl shall fail to do as required. the parties may,
tribunal shall render its writton award within 3O davs after the within 0 days from the receipt of snid award, request. the arbital
closing of all hearings and/or submission of the parties' respective tribunal to supply the omission. The failure of the parties to make
briefs or if the oral hearings shall have been waived, within 30 day an objection or make such request within the said period shall bc
after the arbitral tribunal shall have declared such proceedings in deemed a waiver or such requirement and may no longer be raised
lieu of' hearing closed. This period may be further extended bv mutual as a ground to invalidate the award. (Article 5.l)
consent of the parties. (Article 5.29) 7
 Ii呸 Tit, Al I'tu;wTW pl; I'Tt I;« tr+1tI
A NI HIE IHI'TIRA'It, 1,W

21.09 HOW IS THE ARBITRAL PROCEEDINGS TERMINATED? T'he parties agree on the termination of the pro
di)
The arbitration proceeding are terminnted by the final award ceedings; or
or by an order of the arbitral tribunal in accordance with paragrph
a
(b) of this Article. @Articte 5.32, par. a) (ii) 'The arbitral tribunal finds thnt tho cvotinua.
ion of the proceedings has for any other reason
become unnecessary or impossible; t
21.10 WHEN SHOULD THE ARBITRAL TRIBUNAL ISSUE AN
ORDER OF TERMINATION? iv) 'The required deposits are not paid full in in
accordance with paragraph (d of Article 5.48
a the termination of
'f'he arbital tribunal shall issue an order fr ,
t
(Fees un C'osts).
the arbitration proceedings when:
(e) 'The mandate of the arbitral tribunal onds with the
ti) The climant withdraws bis claim. unloss the respondent
fermat·. tiom oi f' the arbitration
ne <r· to
proceedings,
"
subjeet to the pro
d
objects thereto for the purpose of prosecuting his counter- ..:. - \-1ee 5.33 (Correction and Interpretation of Award,
VIS1On O TUC • ·' • • .
claims in the same proceedings of the arbitral tribunal Additional Award) and Article 54 (Application fr Settings
recognizes a legitimate interest on bis part in obtaining a Aside an Exclusive Recourse Against Arbitral Award).
final settlement af the dispute; or
(d) Except as otherwise pruvidod in the [Link]
(ii) The pnrties agree on the termination of the proceedings: or ' .-I0r tt,:=oru-i<lo-rat1<Jn, corrarl1nn and inter-
'""·oti A.-.
agreementt, no mM
proration of award or additional award shall he mude wit ith thth
On

(~) The arbitral tribunal finds tht the continuation of the e

proceedings has for any other reason become unnecessary arbitral tribunal, ' T'he arbitral tribunal, by releasing its final
or impossible; or ኏ward,
f'
loses jurisdiction over the dispute and the parties to
fu.·b1trat1un, However, where it is shown that the arbitral
(iv) The required deposits are no paid in full in accordance
tribunal failed to resolved an issue submittod to him for deter-
with paragraph (d) of Article 5.46 (Fees and Costs). (Article
5.32, par b) mination, n verified motion tu complete a final award may be
made within 30 days from its receipt.
21.11 WHEN DOES THE MANDATE OF THE ARBITRAL TRIBUNAL (e)Notwithstanding the foregoing, the arbitral tribunal
END? . ኏ 1a· 1 ኏
may, J IOr Su7KI
኏c:,on ' re:se1.,,c w rhe final i1ward Ol' order. a
'..]
44
be
Article 5.32. Termination of Proceedings. hearing to quantity costs and determine which party shall ·ar
the costs or apportionment thereof as may be determined to
(a) Tho arbitration praceedings are terminated by the ~
I e etua ·t ... h1"'"
If,
l'endino'F <lt t኏·,rminalion of this issue, the [Link]
,
final award or by an order of the arbitral tribunal in accordance shall not be deemed final for purposes of appeal, vacation,
with paragraph tb) af this Article. correction, or any post-award proceedings. (Article 5.32
(by 'The arbitral tribunnl shall issue an order for tle Article 5.3. Correction cd Interpretation of Aword, Additional
termination of the arbitration proceedings when:
Award. 1nl
() The claimant withdraws his elm, unless the Within 30 days from receipt of the award,d. ur less
(a)
respondent objects thereto for the purpose of another period of time has been agreed upon by the parties
prosecuting his counterclaims in the same (i A party may, with notice to the other party,
proceedings or the arbitral tribunal recognizes request the arbitral tribunal to correct in the
a legitimnte intereet on his part in obtsting n nwrd any errors in computation, any clerical
final settlement af the dispute; or or typographieal errors or any errors of eimilar
nature.
 ti
r' I
4n THE! ALT#{NYI'Wt HS{PUT IOI t" 'lt 'Ile lph rt ink nl It+,nlalol ts lter:ti»wit
ANI 'T'[IE AMITRT'ION 1.W • wuss· N hutvn et. .i6ht

(ii) If so agreed by the parties, a party, with notice

the other party, may request the arbitrl
tribunal to give nn interpretation of a seo»tic
I (j)

(ii)
'I'he- rbtrnd award was procured by corruption, fraud or
otler undue means; or
There was evident partially or corruption in the erbitrul
point ur part of the award, i tribunal or any of its members; or
(iii) I'he arbitral tribunal was guilty of misconduct or any form
·-. ·the· rbitral tribunal ! considers
d the request to b
justified, it shall make the correction or give the inter- of misbehavior that has materially prejudiced the rights of
pretation within 30 days from receipt of the rec Th any party such as refusing to postpone the hearing upon
interpretatiou shall form part of the awar4 "Hest, e sufficient enuse shown or tu hear evidence pertinent and
material to the controversy or
(b) The arb1itras] tribunal
- may correct any errur of th
type referred tu in pamgraph a) of this Atiel e (iv) One ar more of the arbitrturs ws disqualified to act as
tis rncle on ts own
D

initinti » :. '''
iintive within 3O days of the date af the award. " such under this Chapter nnd willfully refrained from dis-
closing such disqualification; or
(c) Unless otherwise agreed by the parties, •
with notice te th e other "i,a parts ray, The arbitrnl tribunal exceeded its powers, or so 1mperfectly
. Io
th party, may request, within thirty (w)
days of receipt of the award, the arbitral tribunal to mt~i exeruted them, such that a complete, final und definite
additional award us to claims preseted in th ubitalPree! award upon the subject matter submitted to it was not
gs but emitted from .he awar w us.
sider» th le request to be justified, it shall make
~; '
~if,E?'
&Eal tribunal co-
made.
the additior il
+, :.

" '>
award within 6 days. na Any other ground raised to question, vaente or set aside the
· rttral award shall be disregarded by the court. {Article 5.35, par. a)
(d) The arbitral tribunal may extend, if ner s«r th
period of tire within which it shall maken '_Stsary. the 21.14 WHAT MAY THE PARTIES DO WHEN A PETITION TO AWARD
tation correction, iterpre-
,"""" adiddi'
r i.

ditional award under paragraphs (a) and (c) of OR SET ASIDE AN AWARD IS FILED?
4:.
Li. 'tIcIe.
Where a petition to vacate or set aside an award is tiled, the pe-
(e) The provisions of Article 5.31 (Form and C +
titiorer may simultanoously, or the oppositor may in the alternative,
of ward) +hall apply Iy too a vvrreution
s. ;' a contenis
or interpretation of th petition he court to remand the same to the arbitral tribunal far the
nwrd or an additional wward. (Article 5.33)
purpose of making a new or revisod final and definite ward or tu
dirswt a new hearing before the same or new urbitral tribunal, the
21.12 WHAT MUST THE COURT DO UPON APPLICATION FOR members of which shall be chosen in the manner originaly provided
SETTING ASIDE AN AWARD ?
in the arbitration agreement or submission, In the latter enee, any
The cout wher nsked to set nsid¢ an aw re provision limiting the tme in which tbe arbitral tribunal may make a
appropriate and so &quested by amay, where
a~.,"Rrts, suspend the setting aside
art decision shall be deemed applicabie to the new nrbitral tribunal and
proceedings tor a periot or
or to take such others»so«a«
[Link]»ta actic i»
,,";""ns
in
.'~"Z
the
I'{{:«; " ra proceetmngs
eliminate the grounds fur setting uside an award, {Articleopinion will
the arbtral tribunal's
ta commence from the date of the court's order. (Article 5.5, par, b)

21.15 WHERE A PARTY FILES A PETITION WITH THE COURT

5.534) TO VACATE OR SET ASIDE AN AWARD BY REASON OF
OMISSION'S THAT DO NOT AFFECT THE MERITS OF THE
21.13 WHAT ARE THE GROUNDS TO VACATE AN ARBITRAL CASE AND MAY BE CURED OR REMEDIED, WHAT MAY THE
AWARD? ADVERSE PARTY DO?
th኏-኏tt Lubi኏ al nwna-d. may b኏qu኏ im,኏d. vw.:at<..'Ci i'll" ኏Pt a኏itlc Where a party files» a petition with the court to vacate or sot
%' ~~"{""?";pt
h r-
-
"rt in accordance wit uhspec! ADR ales
e following grounds,
aside an awurd hy reason of omission/s that do not affect the merits
 4.%
It. AI,I' It, II; J'IP'E HI 111 rl'I
I» 'HE A![Link] I» I'/pt lus lhs '
I very 1•,,1,
l'
i ,m,I l኏•኏1•HI
'·
,1 '""' ttl • I,,• ,\II ·f'1t'1U.-'኏
those Ike-rdtw 'et t HMM

al the case and may le vuretd or remedied, the lver pwrty my

j 22.03 WHAT IS THE NATURE OF THE PROCEEDINGS FOR THE
opoe that petition and instead request the court Lu spwnd th FOLLOWING?
vacnton or setting aide the proceedipg for u period of time to give (a,) ·t·
recogion n1ld Anforccrneut r.r an arbitration
the arbitral tribunal an opportunity to cure gr remedy the aw:rd a agreement or
resume the arbitration proceeaings or take such other action as will vacation or setting aside of an arbitral award, and
(b)
chiminate the grounds fr o vaction or getting aside. {Article 5.35.
par c) te)
any aplice lication with a court for arbitration assis-
tnnce and supervision, except appe.
RULE 6 - Recognition and Enforcement of Awards
cuedi·gs for recognition and enforcement of an arbitration
Pro""",[;
22.00 WHAT MUST THE PARTY MOVING FOR AN ORDER CON- acation or setting aside of an arbitral award, and
agreement or tor ,:, .: ee and supervi
FIRMING, MODIFYING, CORRECTING, OR VACATING AN my a lication with a cuurt for arbitration assistance .,
AWARD 00? • Ip9i
+ snll be deemed as special proceedings. (Article
sin. exeept app, Si1all De
~snl, 'HT-'r

5.39)
T'he party moving foe an order contrming. modifying, correcting. «
or vacating an award, shall, mt the time that such motion ia filed with
the court for the entry of judgment thereon, also file the original or
1 22.04 WHERE IS THE VENUE OF THE SAID PROCEEDINGS?

verified copy of the ward, the arbitration or settlement ageerent, tt The same shall be filed with the court:
nnd such papers as mny b required by the tlpecial ADI Rules. t (a) where he arbitration proceedings are conducted;

,
(Article 5.86) t where the nct,:,At 1o be at,l..a<'bt-:d or lesved upon, or ኏b4t ac:i fl)
I (b) l kt

be enjoined is located;
22.01 WHEN MAY THE COURT ENTER ITS JUDGMENT?
(e) where any of the parties to the dispute resides or has its
Upon the grant of an order eonfirming. modifying or unrrecting place of business; or
an ward. judgment my be entered in conformity therewith in tho
(d) in the National Capitrl Judicial Region a the option of the
court where aid application is fled, Cost of the applicaten and the
proceedings srbsequent thereto my be awarded by the court in its applicant. (Artie!e 5.89)
discretion, If awarded, the amount thereof must be included in the
22.05 IS NOTICE TO PARTIES REQUIRED IN A SPECIAL PROCEED-
judgment. Judgment will he enforced like court judgments, {rwle ING FOR RECOGNITION AND ENFORCEMENT OF AN ARBI-
5.37)
TRAL AWARD?
Sr recgnition and enforcement of an
22.02 WHERE MAY A DECISION OF THE COURT CONFIRMING, In ;J
specinl , ;,
prcee(ding TR AL'
the eIr
VACATING, SETTING ASIDE, MODIFYING OR CORRECTING ·bitral rard, the court shall send notice to the parties at
arlntr aw; he served
nddress of' record in the arbitration, ort;E nny party cannot ;
I, _

AN ARBITRAL AWARD BE APPEALED TO? 'T

notce at such nddross, at such party's tast known address. e notice
A decision of the court confirming, veating, setting aside ghall bee sen t·in a t lest
Ieus'
I5 days
•
before the date Bet for the initial
modifying or varrex:ting an rhitral award may bo appealed to the hearing of the application. (Article 5,40)
Court of Appeals m accordance with Spwrinl AD)R Rules.
0
22.16 jfJ DOMESTIC ARBITRATION, IS A PARTY ENTITLED TO LEGAL
The losing party who appeals from the judgment of the Court Iv

confirming an arbitrel award shall be rsquired by the Court of' Ap- REPRESENTATION?
pen le to post a counter-hod executed in fyr of the prwvmuling party · domestic arbitration conducted in the Philippines, a
equal ts the mount of the award in accordanes with the Special
AD Raloe. (Article 5.38) ·»
es, 1
puw 1·..-呸· CD ... V he ,e r',1•C:,en
1
.gt

ded, that sueh reprontative, untess

1ted Dy
..
J} any
le
perun nf his/her'its choice: Provi-
r• ኏ t-"" li1

a dmitted
'
.
to the• practice at 1 law
t. •

i
II TIE' AM T'IRINA'I!VI [IT'WT I3Mt4ti rt! "Air'l I
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኏
in the Philippines, slll not be authorized to appear as counsel in any ln UQāK 

14titn1tlio11኏WRXVW6 WHF/ ,.._ith 呸QLFORV  (1'.l ncit)

Philippine Court, or any other quasi-judicial body wtether or such tent of larties) DQG 5.18 (Determination of Rules RI HF ure
appearance is in relation to the arbitration in which he/she appears. as the arbitral tribunal shall deen appropriate to address pos-
No arbitrator shall act as mediator in any proceeding iu which sible complexities of a multi-party arbitration; and
he'she is acting as arbitratar and ali negotiationtowards settlement
() When a claimant includes persons who are not
of the GLVSXWH must tnke without the presence of the arbitrators.
rtics to ar otherwise bound by the arbitration agreement,
(Article 5.41) SDUHV āLPKHer ant dtbe QGHQW as
directly or by reference, EHWZHHQ hi «ye resp
DGGLWLRQDO claimants or the additional respondents unless no'
22.07 IS THE ARBITRATION PROCEEDINGS PRIVILEGED?
later than the date communicating his/her answer to the reque!
Yes, the arbitration SURFHHGLQJV including the records, evidence for arbitration, either by motion or by a special defnse e ir his
and the arbitral award and other confidential information, shall be answer, he objects, on [Link] grounds, to the ictus»i""2"
considered privileged and confidential, DQG shall not EH SXEOLVKHG ,44e; l respondents. The additional respondents VKD
Xƒ,., DG 2KL ~pis . . :
H[FHSW- d኏ ed Rluwe [Link](;'(i  lht•1rmdwuon m ihe arb1trauon
b e.¢, .: ,tr@ their answer /R
(l) with consent of the parties; or unless. not later than WKHdate of FRPPXQDQ.  
s t for arbitration, wither by PRWLRQ or n sperinl defense
WOhe
te requesl de, to their
(2) for the limited purpose DI disclosing ta the court relevant ± '

object, on jurisdictional grouns

in their answer, they 

documents in cases where resort to the court is allowed herein;

inclusion (Article 5.44)
Provided, houeter, 'That the court in which the actian or the
appeal is pending may isne a protective order WX prevent or prohibit  0$<  7+(  3$5 7,( 6  $*5 ( (  21 & 216 2/,'$7,21 2) 35 2
disclosure RIdocuments or LQIRUPDWLRQ containing secret SURFHVVHV & ( ( ',1*6 $1' +2/',1* 2) & 21& 85 5 ( 17 +( $5 ,1*6 " 
developments, research and other information ZKHUH it LV shown Yes, WKHSDUWLHV PD\agree that
WKDWthe applicant shall EH materially prejudiced E\an authorized
disclosure thereof. (Article 5.42) (a) the arbitration proceedings shall be consolidated
with other arbitration proceedings; or
22.08 WHAT IS THE CONSEQUENCE OF THE DEATH OF A PARTY? h) that concurrent hearings shall be KHOGon such terms
Where a party dies after making a submission or a contact to Dmay be agreed.
nrbitrate as SUHVFULEHG in these Rules, the proceeding PD\ be begun Unless the parties agree to confer such power on the arbitrnl
or continued upon the application of, or notice to, his'her executar  @
OH WULEX l has no power to order consulidation of arbitra-
uibuntl, WLH ‡ ‡ H
or administrator, or WR temporary administrator of hia'her estate. tion proceedings or concurrent. KHULQJV (Article '.d5)
Jn any such cuse, the court PD\ issue an order extending the time
within which notice of a PRWLRQ tu UHFRJQL]H or YDFDWHDQDZDUGPXVW 22.11 WHAT ARE THE RULES IN FEES AND COSTS?
EHVHUYHG /OSRQrecognizing DQ award, where a party has died since
it was filed or delivered, tho court must enter judgment in the name The following are the rules in IHHVDQGcnsts.:
of the arigual party; and the proceedings thereupon are the snme QV (a) The fes e of the arbitrators shall be agreed upon by the
where a party dies after a verdiet (Artele 5.43) nrbi•··[Link]/s
parties an FO t QRD W
'L in writing prior to the nrbitraton

22.09 WHAT ARE 7+(  RULES IN MULTI-PARTY ARBITRATION? In default of agreement of the parties as to the amount
y .; t '· fees, the DUELWUDWRU
Vfees
DQGPDQQHr RIpayment ol arbitrator V 1ee 5, ,
al
The rules in multi-·party arbitration are as follows: hall be determined in accordance ZLWKthe applicable inter~
(a) When a single arbitration involves more thnn two
parties, these XOHVto the extent possible, shall be used subject
HWFXH r«ear a-bianon ins«tauQDGLUwhoe""",""";
arbitration is conducted; or in ad hoc arbitration, the sch
 T4# AU'I'EI,NAI!I Si ' itt:ls+it1 \Ml't 4
NI TH, RIFT'&'l10N L.'W t'ht Tl+ hp+he o nt my lulu l l+plat sf ' tertdvr
Du«ts le ultn et ofuo4
af fees approved by the IBP. if any, or in default thereof, thu f au ppuinting authority has been agreed upon by
schedule of fees that may be approved by the OADR the parties and if such appointing authority has issued
scheule of foes tor arbitrators in domestic cases which it
(b) lr addition tw arbitrator's fcs.
e the parties shall be administers, the arbitral tribunal, in fixing its fees shall
responsible fur tbe payment of the administrative fees of an take that schedule ot fees into acount to 1he extent that it
arbitration institution administering an nrhbitration and cost of considers appropriate in the circumstances of the case
arbitration. The latter shall include, as appropriate, the fees of
an expert appointed by the arbitra! tribunal, the expenses for If such appointing authority has not issued a
conducting a site inspection, the use of ruem where arbitration schedule of fees for arbitrators in inrornational caseE, n'
proceedings hall be or have been conducted, the expenses for party may, at any time request the appointing authority to
the recording and transcription of the arbitration proceedings. furnish a statement setting forth the basis for establishing
fees which is customarily followed in international cases
(e) The arbitral tribunal shall fix tho costs of arbitration in which the authority appoints arbitrators. If the
in its award. The term "costs" include onlv:
"" appciting authority consents to provide such a statement,
ti) 'I'he fees of the arbitral tribunal to be stated the rbitral triburul, in fixing its fees shall take such
separately as to each arbitrator and to he fixed infrmation
o into account to the extent hat it considers
by the arbitral tribunal itself in uccordanco appropriate in the circumstances af the case.
with this Article;
In cases referred to in paragrnph td) of this Article,
(ii} The travel and other expenses incurred by the when a party so requests and the appointing authority
arbitrators consacnts to perform the function. the nrbitral tribunal
(ii) The costs of expert advice and of other assis-
shall fix its fees ol after consultation with the appoint-
tance required by the arbitrnl tribunal. such as ing authority which may make any comment it deems
site inspection and expenses for the recording appropriate to the arbital tribunal concerning the fees.
and transcription of the arbitration proceed- Except as prvided in the next paragraph, the costs
1ng; of arbitration shall, in priciple, be borne by tLe nur-
i) The travel and other expenses at witnesses to cessful party. However, tha arltral tribunal may appor-
the extent such expenses are provided by the tion each of such costs between the parties if it determines
arbitral tribunal; that apportionment is reasonable, taking into account the
circumstances af the case.
(v) The costs for legal representation and assis-
tance of the successful party if such costs were With respect to the coets of legal representation and
claimed during the arbitrnl pruceeadings, and usietance referred to in paragraph (c) (iii) of this Article,
only to the extent that the arbitral tribunal the arbitral tribunal, taking into account the circums-
determines that the amount of such costs is tances of the cnse, shall be free to determine which party
reasonable; shall bear such costs or may apportion such costs between
the parties if it determines that appointment is reason-
(vi} Any fees and expenses of the appointing au-
able.
thority.
When the arbitral tribuul issues an order for the
(d) Te fees of the arbitral tribunal shall he reasonable termination of' the arbitra proceedings or makes an
in amount, taking into account the amount in dispute, the com- award on agreed terrs, it shall fix the costs pf nrbitration
plexit of the subject matter, the time pent by the nrhitrators referred tin paragraph {a) of this Article in the context of
and ny other relevant circumstances of [Link] ease. that order or award.
 ;I'I I +!
IM A 'I'JNNIV Ir'I' w4 rruJ oh+ e · tu Rule i {rd iw u' 1e- [Link]
VD l'I ARI'II\''IN 1W
t'huts Te+
t A{us lot wt t 'I

Chapter 7
(e) Excopt otherwise agreed by the parties, mo auddt-
tional fees may be charged hy the rbitral tribunal fur inter- OTHER ADR FORMS
pwelation or correction or completion of its award under these RULE 1 -- General Provisions
Rules.
(f The arbitral tribunal, on its establishment, may re. 24.00 WHAT IS THE SCOPE OF APPLICATION OF THIS CHAPTER?
quest each purty to deposit au equai mount as nn ndvanco for I
Except as otherwise agreed, this Chapter shall apply and supply
l
the costs referred to in paragraphs {i), (it and (ii) of paragraph [Link] deficiency in tle agreement of the parties for matters involving
(e) of this Article. he following forms of' AD!
During the course of the arbitral proceedings, the arbitral tri- (a) early neutral evuluution;
bunal ray request supplementary deposits from the parties.
(b) neutral evaluation:
!fan appointing authority has hoen agreed upon by the parties, (e) mini·trial;
nd when a purty su requests and the appointing authority consents
to perform the function, the arbitral tribunal shall fix the amounts (d) mediation-arbitration;
of any deposits or supplementary deposits orly after consultation (e) n combination thereof; or any other ADR firm. (Article 7.1)
with the appointing authority which may make any comrents to tho
arttral tribunal which it deers appropriate concerning the amount 24.01 WHEN DOES CHAPTER 3 WHICH GOVERNS MEDIATION
of suwh depasits and supplementary deposits HAVE SUPPLETORY APPLICATION?
if tho reutired deposits nre not paid in full within 30 days atter If the other ADR form/process is more akin to arbitration i.e.,
receipt of the request, the arbitral tribunal shall so infrm o the par- he neutral third-person merely nssists the pnrten in reaching a
ties in order that one of them may make the required payment within voluntary agreement), Chapter 3 governing mediation hall have
auch a period ar reasonable extension thereof as may be determined suppletory application to the extent that it is not in conflict with the
b y the arbitral tribunal. If auch payment is not mnde, the arbitral agreement of the parties or this Chapter. (Article 7.2)
tribunal may order the termination of the rbitrnl proceedings
24.02 WHEN DOES CHAPTER 5 WHICH GOVERNS DOMESTIC
After the award has been made, the arbitral tribunal shall ARBITRATION HAVE SUPPLETORY APPLICATION?
render an accounting to tho parties of the deposits received and
return nny unexpended balance tn the parties. (Article 5.46) If the other ADR tozm/process is more ukin to arbitration (i.e.,
the neutral third-person has the power to mako a binding resolution
Chapter 6
of the dispute), Chapter S governing domestic arbitration shall have
in
suppletory application to the extent that it is not conflict with the
ARBITRATION OF CONSTRUCTION DISPUTES agreement of the parties or this Chnpter. {Article 7.3)
23.00 WHAT AGENCY GOVERNS ARBITRATION OF CONSTRuC-
24.03 IF A DISPUTE IS ALREADY BEFORE A COURT, MAY A PARTY,
TION DISPUTES?
BEFORE AND DURING PRE-TRIAL, FILE A MOTON TO
The Construction Industry Arbitration Commission (CIAC), REFER THE PARTIES TO OTHER ADR FORMS/PROCESSES?
which has orignal and exclusive jurisdiction over arbitration ot con Yes. if a dispute is already before a court, either party my,
struction disputes pursuant to Executivo Order No. 1008, s. 198, hefore and during pre-trial, flo a motion for the court to refer the
otherwise known as the "Construction Industry Arbitration Law,"
parties to other ADR forms/'processes.
shall promulgate the Implementing Ruls and Regulations govern.
ing arburation of construction disputes, incorporating therein the However, at any time during rourt proceedings. even after pre-
pertinent provisions of the ADR Act. trial, the parties may jointly rove for suspension'dismissal of the
 1ht
l'}Hi, AI,RN'It, I;arT + + +Rt t
'NI THI' AA»IT'TWA 1 4 'i+ '',
le· » t, I4 ten d lelatiuu, f' ho Alt+rhe
I put+e- It dutu et etIi(t
actian pursuuntt to Article 20o ot the Civil Co. ),Hempe
1]J (e 'The· w· teal third person mny structure the evaluation
(Article 7.4) 6
process in any manner he#she deems appropriate. In the
course thereof, the neutral third person may identify
24.04 MAY A PARTY SUBMIT A SETTLEMENT · ,-EM£NT areas of agreement, clarify the issues, define those that
FOLLOWING A NEUTRAL OR AN EARLY EVA;LATH4, MINI are contentious, and encourage the parties tu agree on
TRIAL OR MEDIATION- ARBITRATION? " ' ·" a definition of issues and stipulate on facts or admit the
Tither party may submit tu the court before which the genuineness and due execution of documents
Ube case 1s
pending
+" settle
nny selement agreement fllowing;
oe
a neutral or ar
4, ;,

I
neutral vntaton, mu trial or ruediotion-arbitration. (Ares
",; (f) 'The neutral third person shall issue a written evaluation
or assessment within 30 days from the conchsimn af the
evaluation process. 'le opinion shall be non-binding and
RULE 2- Neutral or Early Neutral Evaluation
shall set forth how the neutral third person would have
25.00 CITE THE RULES IN THE APPOINTMENT OF A NEUTRAL OR ruled had the matter been subject to a binding process.
EARLY NEUTRAL EVALUATION. The evluntian ar nssussment shall indicate the relative
(a) T'he neutral or early neutral evaluation sha!' i wrwernd strengths and weakness of the positions af the parties, the
by the rules and proche greed upon hy t hes. ! basis for the evaluation or assessment, and an estimate,
the absence of said agreement, this le shall apply when feasible, af the amount for which a party may be
If the parties cannot agree on, or fail to provide for:
liahle to the other if the dispute were made subject to a
binding process.
ti) 'The desired qualification of the neutral third person;
(g) 'There shall be no ex-parte communication between the
fji) The manner of his/her selection; neutral third porson and any party to dispute without the
(iii) The appointing authority (at IBI who stall have con9on: of all parties
the authority to make the appointment al'a neutral
Luru person; or (h) All papers and written presentations communicated to the
neutral third person, including any paper prepared by s
fiv) i despite -. agreement
:, on the foregoing
'''i and [Link] 1t\pt'. party to be communicated ta the routral third person or
at fth period of time
the stipulated for the appointment, to the other party as part of the dispute resolution pro-
the parties are unable to select a neutral third perssm cess. nnd the neutral third person's written non-binding
or appointing authority, then, tine either er'
pa:·ty my
• e'
assessment ar evaluation, shall be treated as confidential.
request the defalt appointing authority, ns defined
under paragraph CI of Article (Definition of'Terms) (Article 7.6)
to make the appointment taking intu consideration
the nature of tbe dispute and the experience and
expertise of the ncutral tlrd person. i RULE 3 - Mini-Trial

26.00 HOW IS A MINI-TRIAL CONDUCTED?

The parties shall
s
contain
.%,

the
th
•
.
submit and exchange
issues and statement of
4ui
''

witneeses· tn nsaist the neutral third person

aosit'
Fi10n paper
the {
I reievflt

and zppeuding supporting documents and affidavits of

j
rats
+,

'
•
1 (a) A mini-trial shall be governed by the rules and procedure
agreed upon by the parties. In the absence of said agree-
ment, this Rule shall apply
' nevniuatung!
ox assessing the dispute. (b) A mini-trin] shall be conducted either as: (i) a separate
« The neural third person may reuuet either party t :d
h ess additionni
i. '"W} Iv tu u-
ddit. 4l issues that. he/she may consider "
dispute resolution process; or (ii) n continuation of media-
tion. neutral or early neutral evaluation or any other ADIR
thr neces-
sary for a complete evaluation/assessment of the dispute. prowess
 '' Tit AW 'TRNA'II Dir R 4l 1le 16J
AMI THE HT'U'TIN 1 I'A'II
t'#yurt+ lee • ,•1 ,1,·i, ... nl 1111: lt,:k•:11ltk) H,·኏
...•ul1tlH)llil c.d lht- ,'\lt.c,1u.d1\f+.:
ipte Resolution et uf 2004
tc) 'The partes mny agree thnt a mini-twin\ hw duetsl with
or without the presence and participation of a neutral In cases where neural third pcrson is appointed, the neutral
third person. If a neutral third person is agreed upon third person shall assist the parties/mini-trial panel members in
and chosen, he'sho shall preside over the mini-trial The . ••ttlmg the diEpute and, unlass otherwise agreed by the [Link]
parties may agree to appoint one or more (but equal in rucendings shall be governcd by Chapter 3 of Mediation. (Article
number por party) senior executivets, nn its behalf, to sit 7 T)
as mini-trial panel members RULE 4 - Mediation-Arbitration
(d) The senior executive/s chosen to sit as miui-trial panel 27.00 WHAT ARE THE RULES ON MEDIATION-ARBITRATION?
members must oe duly authorized to negotiate and settle
the dispute withtheother [Link] appointment ofa mini- The rules are as fallows:
trial panel member!s shall he communicated ta the other (a) A Mediation-Arbitration shall be governed by the
party. 'IT'his appointmcnt shall constitute n representation · procedure
rules and d agreec:d upon by·, the A'
parties. " In the absence
ta the other party that the mini-trial panel member/s has! of said agreement, Chapter 5 on Mediation shall first apply and
hve the authority to onter into n settlement agreement thereafter, Ghapter 5 an Domestic Arbitration.
binding upon the principal without any further avton or
(b)No person stall having been engage and having
ratification by the latter.
acted ns mediator of a dispute between the parties, following a
(e) Each party shall submit a brief executive summary of failed mediation, act as arbitrator of the same dispute, unless
the dispute i sufficient copies as to provide one copy to the parties, in a written agreement, expressly authorize the
eneh mini-trial panel member nnd to the adversc party. mediator to hear and decide the case as an arbitrator.
The summary ghnll identify the powific tactual or legal t
issue or issues. Each party may attach to the summary a t (e) The mediator who becomes an arbitrator pursuant
I to this Rule shall rake an appropriate disclosure to the parts
mare exhaustive recital of the facts of the dispute and the
applicable law and jurisprudence. if the arbitration proceeding had commenced and wil
::oc0cd es o. new
[Link].e re-solution jJ\.'<.x'኏኏኏' irntl .,:Juul, b኏101-c
(fy Ar the date time and place aged upon, the parties shall entering upan his/her duties, execute the appropriate oath
appear before the mini-trial panel member. 'The lawyer or affirmation of office us arbitrator in atordsnee with these
of each party nu/or authorized representative shall pre Rules. (Article 7.8)
sent hither case starting with the claimant followed by
the respondent. The lawyer andiur representutiv al each RULE 5 --Costs and Foos
party may thereafter offor rebuttal or sur-rebuttal argu-
men18, 28.00 WHAT ARE THE RULES ON COSTS AND FEES?
Unless the parties agree on a shorter or longer The following are the rules on costs and fees:
period, the presentation-in-chief hall ho made, without
(a) Before entering his/hor duties as AD provider,
interruption, for one hour und the rebuttal or sur-rebuttal ኏
be'she shall agree with the partic኏ on the cost ot the AD
shall be 80 minutes.
procedure, the fees to be paid and manner of payment for bis
At the end of each presentation, rebuttal or sur- her services.
rebuttal, the mini-trial panel memberls my ask clarif-
catory questions from auy of the presentors.
(b) In the absence of such agreement, the fees for the
:, ADR provider/practitioner shnll be determined
gerttes tl fth' if I' '

(g) tter the mini-trial, the min-trial panel members shall as follows:
negotiate a settlement of the dispute by themselves.

i
 H ITEFRNA'TWE DH}I TE wl,'tL
AND THI' AI&ITHA ION 1w

(i) If the ADR procedure is conducted under the

i
rulee nndle administered hy an institution CHAPTER FOUR
regularly providing ADservices to the general
public, the fees of the ADR professional shall COLLECTIVE BARGAINING
be determined in accordance with schedule af AND ADMINISTRATION AGREEMENT
fees approved by such institution, if any;
PRESIDENTIAL DECREE NO. 442
(ii) Ln ad hoc AD, the fees shall be determined in
accordance with the schedule of foes appruvrd ,
4 ARTICLES 250-254 OF TITLE VII
by the OADR:
(iii) Inthe hsence of a schedule of fees approved by
the ADR institution or by the OADR, tbe Tes
shall be determined iy the AD institution or by
tt 1.00 UNDER ARTICLE 250, TITLE VII OF THE LABOR CODE OF THE
PHILIPPINES, WHAT ARE THE PROCEDURES THAT MUST BE
OBSERVED IN COLLECTIVE BARGAINING?
the OADR, as the pnse my be, and complexity 'The following procedures shall be observed in collective bar-
of the process, the amount in dispute and the gaining:
professional standing of the ADR professional. a. When n party desires tu negotinte an agreement, it shail
(c) A contingoncy fee arrangement shall not. be allowed. serve a written notice upon the other party with a state-
The amount that ray be allowed to an ADR professional may ment of its proposals. The other party shall make a reply
not be made depondent upon the success of his/her effort in thereto not later than 14 calendar days from receipt of
helping the parties t settle their dispute. (Article 7.9) such notice.
b. Should differences arise on the basis of such notice nnd
repl,y either party may request for a confrence
e which
shall begin not later thnn 10 calendar days from the date
of' request;
c. If the dispute is not settled, the Board sball intervene upon
request uf either ar both parties or at its own initiative nnd
immediately call the parties to conciliation meetings. 'The
Board shall have the power to issue subpoenas requiring
the attendnnce of the parties to such meetings. It shall be
the duty af the pmrties to participate fully und promptly in
the conic liation meetings the Board may cal
d. Daring the conciliation proceedings in he Board, the par-
ties are prohibited from doing any act which may disrupt
ox impede tho oar.y selement ef the disputes; and
e. The Board shall exert all efforts to settle disputes ami-
cably and encourage the parties to submit their csn tu a
voluntary arbitrator. (As amended by Section 2. .A. No
6715, March 21, 1989)
 'I'THE AM''I N'TIWI DI'rT E;·tt,rTt
..
4
AND 'T'HI{ AI{WT'WA''(N 1,AW
t Ide n
FM!'t I
1tow+ linrrau wl lmust au gr+el
''
1.01 EXPLAIN THE DUTY TO BARGAIN COLLECTIVELY IN THE
the date l vxpry of sch five yexr tern of the Collective Brgaining
ABSENCE OF COLLECTIVE BARGAINING AGREEMENTS
UNDER ARTICLE 251 OF THE LABOR CODE. greemwt.
Ali other provisions of the Collective Bargaining Agreement
In the absencc of an agreemcnt or other voluntary arrangement hall be renegotiated not later than three years after its execution
providing for a roe expeditious manner of collective bargaining, it
shall he the duty of employer and the representatives of the employees Any agreement on such other provisions of tha Collective Bargaining
to bargain collectively in accordance with the provisions of this Code, Agreement entered into within six months from the date nf expiry cl
the term ot' such otter provisions as fixed in such Collective Bargain
1.02 WHAT IS THE MEANING OF DUTY TO BARGAIN COLLEC- ing Agreement, shall rotroaet to the day immediately following such
TIVELY UNDER ARTICLE 252 OF THE LABOR CODE? date

The duty to bargam collectively means the performance of a

mutunl obligation to meet and convene promptly and expeditiously
in good faith for the purpose of negotiating an agreement with res-
l [f any such agreement is entered inta beyond six months, the
parties shall agree on the duration of retroactivity thereof. In case of
a dealack in the renegotiation of the Collective Bargaininggroe
rent, the parties may exercise their rights under his Cade. (A
peet to wages, hours of work and all other terms and conditions of
amended by Section 21, R.A. N. 6715, March. 21, 1989)
employment including proposals for adjusting any grievances or
qoetiona arising under such agreement and executing a contract 1.05 CAN INJUNCTION BE ISSUED IN ANY CASE INVOLVING OR
incorporating such agreements if requested hy either party but such UNDER
GROWING OUT OF LABOR DISPUTES ARTICLE 254
duty does not compel any party to agree to a proposal or to make any
eocesSIOT.
OF THE LABOR CODE?
Na temporary or permanent injunction ur restraining order 1n
1.03 EXPLAIN THE DUTY TO BARGAIN COLLECTIVELY WHEN nnv ce irvalving nr growing out of labor dspues hall be issuo
THERE EXISTS A COLLECTIVE BARGAINING AGREEMENT by any court or other entity, except as otherwise provided in Articles
UNDER ARTICLE 251 OF THE LABOR CODE. 218 and 264 of this Code. (As amended by B.P. Blg.27, lune 1, 1982)
When there is a collective bargaining agreement, the duty to
-End of Part 1-
bargain collectively shali also mean that neither party sha}l terminate
nor modify such agreement during its lifetime. However, either party
can serve a written notice to terminate or modify the agreement at
ienst 60 dnys prior to its expiration date. It shall be the duty of bott
parties to keep the status quo and to continue in full force and effect
the terms and conditions of the existing agreement during the 50-day
period and/or until a new agreement is reached by the parties

1.04 EXPLAIN THE TERMS OF A COLLECTIVE BARGAINING

AGREEMENT UNDER ARTICLE 253-4 OF THE LABOR CODE.
Any collective hargning agreement that. the parties may enter
into shall. insofar as the representation aspect is concerned, be for
a term of five years. a petition quetionmng the majority tst.u13
of the incumbent bargaining agent shall be entertained and no
certification election shall be conueted by the Department of Labor
and Employment outside of tho 60-day period immediately before
 4'it ti
t tqpfi 4 'It+ all n l2+»

1 02 WHAT ARF THE CONTROVERSIES OR CASES NOT SUBJECT

5 TO R.A. NO. 876?2
l'his Aet hall not apply to controversies nnd to cases which
PART II
re subject to the jurisdiction of the Court of ludustrial Relations o
which have been subnutteud to it as provided ly Comtonwealth Act
CHAPTER ONE Nnmher@d One Hundred snd 'Three, s amended. {Section 3)

THE ARBITRATION LAW

2 00 WHAT IS THE FORM OF THE ARBITRATION AGREEMENT ?
contract to nrbirmte a controversy thereafter arising batween
REPUBLIC ACT NO. 876
tbe partes, as well as submission to arbitrate an existing contro»
wrsy shall be in writing arud subscribed hsy the party sought tn he
1.00 WHAT ARE THE SUBJECT MATTERS OF ARBITRATION?
charged, qr by hie lawful agont.
Two or mare persons or parties may submit to the arbitration
The making of a contract or submission fro arbitration described
of one or more arbitrators any controversy existmy between them at
» Section two hereol. providing for arbitration of any controversy,
the tine af the submission and which may be the suhjet of an etion,
-hall be leered a onset of the parties to th jurssccton of the
or the parties to any contract may in such cnntraet agree to settle teurt of First Instnnee of the p»wince or ity where any of the parties
by arbitration a contrvarsy thereafter arising between them. Such rides, to enforce such eontrnrt or submission, (5ertion 4)
submission or contract slall he valid, enforceable and irrevocable,
save upon such grounds as exist at law for the revocation of any 2.01 DISCUSS THE PRELIMINARY PROCEDURE OF ARBITRATION.
contract. '
An arbitration shall he instituted by.
Such submission or contract my include question arising out of'
(a) lr the cie of a contract to nrhitrate future contra-
valuations, appraisals or other controversies which mav be callateral, versics, by the service by either party upon the other of a
incidental, precedent or Buhsequent to sny issue between the parties, demand for nrhitration in nceard9nee with the enrtraet Such
(Section 2)
demand eball set forth the nature of the controversy, the amount

\l
involved if any, and the relief sought, together with s true copy
1.01 WHO ARE DISQUALIFIED TO ARBITRATE? af the contract providing for arbitration. The demand shall he
A controversy ennnot. be arbitrated where one of the parties ta sorved upon any part either in person or by registered mail
the controversy is an infant, or a persan judicially declared ta be in In the event that the contract between the parties provides fer
competent, unless the appropriate court having jurisdiction mpproe the appointment of u single arbitrator, the den:and shall be set
呸 forth n specific time within which the nnties shall agree tpon
a petition [or permission to submit such euntrovers to arbitration
made by the general guardian or guardian ad item of the infant or such arbitrator lt the contract between the parties provides
af the inenmpetert. tor the nppaitmant of three arbitrators, one to be selected by
each party, the deranui shall name the [Link] appointed by
Fut where a person capable of entering into n submission ur tho party making the demand; and shall require that the parts
crtruet hns knowingly entered into the same with a person incapxbhe upon whom the demand is mnude shall within 15 days after
of so doing. the ubjcrtion on the ground of incapacity can he taken receipt. thereof advise in writing the party making sueh demanud
only in behalf of the person so incapacitated. (Serttn 2) of the name of the person appointed bv the second party; such
l natire shall require tht the two arbitrators so appointed must
agree upon the third arbitraur within 10 days from the date ot

I 158 such notice

'
I
.ii
 PW IH it
'I'H, ALT'EI{MA'I' DE1'I!'TI; Rv 1I+»
4 TIE, AI!IT'KA'T'MN LAW
4'tu + + ll ''nu rhrudtont Lat

'I'he· curt hull de ile sl motuns, petitions ur applications filed

th) In the ever that one party do:alts auswering
under the pries of this Art within ten dny after such motions,
the derand, the aggrieved party may file with the Clerk of
tv·[Link], nr appwntions hnv heen lenrd by it. (Section 6)
the Court of First Instance having jurisdiction over the pnrtie,
a copy of the demand for arbitration under the contract to
2.03 WHEN MAY A CIVIL ACTION BE STAYED?
arbitrate, with notice that the original demand was sent
by registered mail or delivered in person to the party against If any suit or proweeding be brought upon an issne arising out of
whom tho claim is scrtod. Such demand shall set forth the n agreement providing for the [Link] theroof, tho court in whicb
nature of the controversy, the amount involved, if any, and the uch quit or preeding 16 pending, upon being satisfied that the
relief sought, and shall be accompanied by a true copy of the sue involved in such suit or proceeding is referable to arbitration,
contraet providing for arbitration, ·hnll stay the action or proceeding until an arbitration hss been
(c} In the case of the submission or
an cxisling cuntro. had in aceurdance with the terms of the agrcevent: Provided, That
versy by the fling with the Clerk of the Court of First Instance the applicant, for th st& is mot in default in proceeding with such
having jurisdiction, of the submission agreement, setting forth arbitration. (Section 7)
the nature of the controversy, and the amount involved, if any.
Such submission may be filel hy any party and shall be duly 3.00 HOW ARE ARBITRATORS APPOINTED?
executed by both parlies. If, in the contract for arbitration or in the submission described
(d) In the event that ore party neglects, fails or refuses in Section two, provision is mde for method of nnming ur appoin-
to arbitrate under a submission agreement, the aggrieved party ng an arbitrator or arbitrators, such method shall be followed; but
shall follow the procedure prescribed in subparagraphs (a} and if no method be provided therein the Court of First Instance shall
(h) of thi+ section. (Section 3) designate an arbitrator or arbitrators.
The Court of Firat Instance (TC) chall appoint an arbitrator
2.02 HOW IS THE HEARING BY COURT IN ARBITRATION CON-
DUCTED? or arbitrators, ns the case may be in the following instances;

A party aggrieved hy the failure, neglect or refusnl of nnother (g) If the parties to the vontrct or submission are unable
o under an agreement in writing providing for arbitration
to perfrm to gree upon Bingle nrbitrntor; ar
may petition the court for an order directing that such arbitration (b) If an arbitrator appointed by the parties is unwilling
prucued in the manner provided for in such agreement. Five day8 or unable to serve, and his successor has not been appointed in
notice in writing of the hearing of such application shall be served the manner in which he was appointed; or
either personally or by registered nail upon the party in default. Tho
court shall hen« the parties, and upon being sutistied that the making (c) If either party to the contract fnils ar refuses to name
of the agreement or sueh failure to comply therewith is not in issue, his arbitrator within 15 days nfter receipt ot the demand fox
shall mako an order dieting the parties 1o proowd tu arbitration arbitration; or
in accordance with the terms of the agreement. If the making of the
id) If the arbitrators appointed by each party to the eon-
agreement or default be in issue the court shall proceed to summarily
a and by the proper
tract, or appointed by one party to the contrct
hoar such issue. If the finding he thnt nu agreement in writing
providing fur arbitration was made, or that there is no default in Court, shall fail to agree upon or to select the third arbitrator.
the proceeding thereunder, the proceeding shall be dismissed. If the (e) 'The court. shall, in its discretion appoint one or three
finding be that a written provision for arbitration was made nnd arbitrators, according to the importance of the controversy
there is a default in proceeding thereunder, an order shall be mado involved in any of the preceding cases in which the agreement
summarily directing the purties to proceed with the arbitration in is lent as ta the number of arbitrator;
aceordance with the terms thereof.
 ! 'IiI A;TAN'TIE I!'ITT En It
AND 'T'I, MT'TI'WN1 1W ,, apter tw
AT'
I'ho bitraliu ttw
ii'l

(t) Armitrators appointed under this sstion shall j (b) tu «declare the office of such arbitrator vacant Any such
either accept or decline their appointments within seven davs
of th rocoipt of their appointmonts. In case of decliration or
.
4
vacancy shall be filled in the same manner as the original appointment
was made. (Section 1@)
the failure of an arbitrator or arbitrators tu duly accept their
appointments the pnrties or the court, as the case may be, shall 3.04 DISCUSS THE CHALLENGE OF ARBITRATORS.
proceed to appoint a substitute or substitutes for the arbitrator
or arbitrutors who decline or failed to accept his or their 'The arbitrators mny be challenged only for the reasons men-
appointments. {(Section 8) tioned in tbe preceding section which may bave arisen after the nrbi
[Link] agreement or were unknown at the time of arbitration.
3.01 MAY ADDITIONAL ARBITRATORS BE APPOINTED? 'The challenge shall be made before them
Yes, Section 9 provides: "Where a submission or contract pro- If they do not yield to the challenge, the challenging party may
ides that two or more arbitrators therein designate or to be there- renew the challenge before the Court of First Instanceof the province
after appointed by the parties, may solect or appoint a person as an or city in which the challenged arbitrator, ur, any of them, if there ho
additional arbitrator, the selection or appointment must be in wri- more than one, resides. While the challenging incident is discussed
ting. Such additional rhitrator must sit with the original arbitrators before the court, the hearing or srbitration shall he suspended and it
upon the hearing." hall be continued immediately after the court has delivered an order
on the challenging incident. (Section 1I)
3.02 WHAT ARE THE QUALIFICATIONS OF AN ARBITRATOR?
Any person appointed to serve as n arbitrator mst be of legal 3.05 WHAT IS THE PROCEDURE TO BE FOLLOWED BY THE ARBI
age, in full-enjoyment of his civil rights and know how to read and TRATOR?
write, No person appointed to serve as an arbitrator shall be related Subject to the terms of the submission or contract, if any are
by blood or marriage within tho sixth degree to either party to the specified thcrein, are arbitrators selected as prescribed herein must,
controversy, No parson shall serve as an arbitrator in any proceeding within five days after appointment if the parties to the controversy
if he has or has had financial, fiduciary or other interest in the con- reside within the same cit or province, or within fifteen days after
troversy or cause to be decided or in the result of the proceeding, or appointment if the parties roside in differnt provimwes, set a time
has any personal bias, which might prejudice the right of any party and place fur the hearing of the matters submitted to them, and must
to u fair und impartial awand. cause notice thereof to be given to each of the parties. 'T'he hearing
can be postponed or adjourned by the arbitrators only by agreement
No party shall select as an arbitrator any person to act as his of the parties; otherwise, adjournment ray be ordered hy the arbi
champion or to advocate his catue.
trators upon their own motion only at the hearing nnd for good and
sufficient cause. Na adjournment shall extend the hearing beyond
3.03 WHAT MUST THE ARBITRATOR DO IF, AFTER APPOINTMENT the day fixed in the submission or contract for rendering the award,
BUT BEFORE OR DURING HEARING, A PERSON APPOINTED uless the time so fixed is extended by the written agreemeut of the
TO SERVE AS AN ARBITRATOR SHALL DISCOVER ANY CIR- partias to the submission or contract or their attorneys, or unless the
CUMSTANCE LIKELY TO CREATE A PRESUMPTION OF BIAS, parties have continued with the arbitraton without objection to such
OR WHICH HE BELIEVES MIGHT DISQUALIFY HIM AS AN adjournment.
IMPARTIAL ARBITRATOR?
Tho hearing ma proceed in the absence of any party who,
ln this case, the arbitrator shall immediately disclose such infor-

j
after due notice, fais to be present at such hearing or fails to obtain
mation to the parties. Thereafter, the parties ray agree in writing: an adjournment thereof. An award shnll not be made solely on the
(a) to wive the presumptive disqualifying circumstances; or default of a party. The arbitrntors shall require the other party 1o
submit such evidence ns thcy may requiro for making an award,

i
 It·l THI, SL''EHN1'IV »MS!MT' RE; mt41+ 'Mr'l 1H
NI 'TH Al«BIT\HON [Link] 'hpt Tl rlft mi lat

Na one other than n party to said arbitration, or at person in 31.08 DO ARBITRATORS HAVE THE POWER TO TAKE MEASURES
the regular employ of such party duly authorized in writn i g by said TO SAFEGUARD AND/OR CONSERVE ANY MATTER SUB-
party, or pacticing
r attorney-at-law, shali be permitted by the JECT OF THE DISPUTE IN ARBITRATION?
arbitrators to represent before him or them any party to the arbi- Yes, the arbitrator or arbitrators shall have the power at any
tration. Any party desiring to be represented by counsel shall notify lime, before rendermg the award, without prejudice ta the rights of
the other party or parties of such intention at least five days prior to any party to petition the court to take measures to safeguard and/or
the hearing. onservc an matter which is the subject of the dispute in arbitration.
(Section I4)
T'he arbitrators shall arrange for the taking of a stenographic
record of the testimony when such a record is requested by one or 3.09 HOW IS THE HFARING OF ARBITRATORS CONDUCTED?
more parties, and when payment of the cost thereof is assumed by
Arbitrators may, at the commencement of the hearing, ask both
such party or parties.
parties for brief statements of the issues in controversy and/or an
Persons having a direct interest in the controversy which is the greed statement of facts. Thereafter the parties may offer such evi-
subject of arbitration shall bave the rigbt to attend any hearing; but dence as they desire, and shall produce sueh additional evidence as
the attendance of any other person shall be nt the discretion of the the arbitrators shall require or deem necessary to an understanding
arbitrators. (Seion I2) nud determination of the dispute. The arbitrators shall be the sole
judge of the relevancy and materiality of the evidence offered or pro-
3.06 ARE ARBITRATORS REQUIRED TO TAKE AN OATH? duced, and shall not he bound to conform to the Rules of Court per-
raining ta evidence. Arbitrators shall receive as exhibits in evidence
Yes, before hearing ry testimony, arbitrators must be sworn, anv document which the parties may wish to submit and the exhibits
by any officer authorizad by law to administer an oath, faithfully and shall be properly identified at the time of subraission. All exhibits
fairly to hear and examine the matters in controversy and to make a shall remain in the custody of the (lerk of Court during the course
just award according ta the best of' their ability and understanding. of the arbitration and hall be returned to the parties at. the time
Arbitrators shall have the power to administer the oaths to all the award is made. The arbitrators may make an ocular inspection
witnsse
e requiring them to tell the whole truth and nothing but of' any matter or premises which nre in dispute, but such inspection
the truth in any testimony which they may give in any arbitration shall be made only in the presence of all parties to the arbitration,
hcaring. This oath shali be required of every witness before any of his unless any party who shal have received notice thereof fails to
testimony is heard. (Section 1) appear, in which ovent such inspection shall be made in the absonce
of such party. (ection
S 15)
3.07 DO ARBITRATORS HAVE THE POWER TO ISSUE SUBPOENA
DUCES TECUM AND AD TESTIFICANDUM? 3.10 WHEN MAY THE PARTIES' BRIEFS BE FILED?

Yes. Arbitrators shall have the power to require any person to At the close of the hearings, the arbitraiors shall specifically in-
attend a honring ss n witness. They shall have the power to subpoent quire of all parties whether they have nny further proof ar witnesses
witnesses and documents when the relevancy of tbe testimony and to present; upon the receipt of a negative reply from all parties, the
arbitrators shall declare the hearing closed unless the parties have
the materiality thereof has been demonstrated to the arbitrators.
Arbitrators may also require the retirement of any wimess during signified an intention to file briefs. Then the hearing shall be closod
hy the arbitrations after the receipt of briefs and/or reply briefs.
the testimony of any other witness. All of the arbitrators nppointd Definite time limit for the tiling of such briefs must be fixed by the
in any controversy mast attend all the hearings in that matter and
arbitrators at the close of the hearing. Briefs may filed by the parties

I
hear all the allegations and proofs of the parties; but an award by within 15 days after the close of the orul hearings; the reply briefs,
the majority of them is vald unless the concurrence of all of them is if any, shall be filed within five days fllowing
o such 15-day period.
expressly requred in the submission or contract to arbitrate, (Section 16)

s
 l'\r'i 1l
tr
I4i 'H SL'TIPNTI Dpt'T IE. M T++ 'l'[Link] Lauw
d /wet i
NI T'HF, AMII'IHI'ION I

3.11 MAY A HEARING BE RE-OPENED? owl tht re+went. of the purties, which +hall mrlude, bt not be
Butel tu, thw sf:ifit performance of a contract.
Yes, the hearing may be reopened by the arbitrators on their
own motion or upon the request of any party, upon good cause, showr In the event that the parries to nn nrhitration he, uring the
at any time before the award is rendered. Whan hearings are thus we f sueh arbitration, settled their dispute, they may reuue!
reopened the effective date for the closing of the hearings shall he the • the arbitrutar that such sattlerpent. he embodied in n award
date ol the closing of the reopened hearing. (Section 17) lie h shall be signed by the arbitrators. No arbitrator shall act as a
·lintor in any proceeding in which he is acting us arbitrator; and
ll negotiations toward settlement of the dispute must take plat
3.12 MAY PARTIES SUBMIT THEIR DISPUTE TO ARBITRATION
OTHER THAN BY ORAL HEARING? without the presence of the arbitrator.

Yes, the parties to a submission ar contract to arbitrate may,

t
The arbitrators shall have the power to decide only those
by written agreement, submit their dispute to arbitration by other ratters which have been submitted to them The terms nf the award
than oral hearing. 'The parties may submit an agreed statement of :hall he confined to such dispute
facts. They may also subruit their respective contentions to the duly Th rbitrntos shall have the power to assess in their award the
appointed arbitrators in wrti ing; this shall include n statement of esp@nses of any party against another party, when such assessment
facts, together with all documentary proof. Parties may also submit :hul be deemed necessary. (Section 2
a written argument. Each party hall provide all other parties to
the dispute with a copy af all sraterents and documents submitted 4.02 I ARBITRATION A SPECIAL PROCEEDING?
ta the arbitrtors, Each party shall have an opportunity to reply in
Yea, arbitration under a contract or submission ehall be deemed
writing to any other party's statemnents and proofs; but if such party a special proceeding, of which the court specified in the contrCt OF
fails to do so within seven davs afer
t receipt of such statements and :ubmission, or if nune be aperifend, the Court af First Instnnre for the
proofs, he snall be deemed to have waived hi» right to repiy. Upon weovince or city in which one af the parties reside3 ar is doing bl-
the delivery to the arltrators of all statements and documents, es, or in wheh the arbitration was held. shall have jurisdiction.
together with any reply statements, the arbitrators shall declare the .ny applicatiun tu the court, or a judge thereof. hereunder shall be
proceedings in lieu of hearing closed. (Section 18) nade in manner provided fr the mking nnd hearing of moon,
-xcept as otherwise herein expressly provided. (Setinn 2)
4.00 WHEN IS THE PROPER TIME TO RENDER THE AWARD?
Unless the parties shall have stipulated by written agreement 4.03 WHEN MAY THE ORDER OF CONFIRMATION OF AWARD BE
the time within which the arbitrators must render thoir award, the MADE?
written award of the arbitrators shall be rendered within 30 days At any time within one month after the award is made, an
after the closing of the hearings or if the oral hearings shall have been pauty to the controversy which was arbitrated may apply tu the court
waived, within 30 days afer the arbitrators shall have declared such having jurisdiction, as provided in Section twenty-eight, for an order
proceedings i lieu of hearing closed. 'This period may be extended by <untiring the awad, and [Link] th curt must grant such order
mutual cuusent af the parties. (Section !9) unless the award is vacated, modified or corrected, as prescribed
herein. Notice of sueh motion must be sewed upon the alvwrt pa
4.01 WHAT MUST BE THE FORM AND CONTENTS OF THE AWARD? or his attorney as prescribed by law for the eervise of such notice
upun n attorney in action in the same court, (Section 2
The swnra must be made in writing andeigned and acknowledged
by a majority of the arbitrators, if more than one; and by the sole 4.04 WHAT ARE THE GROUNDS TO VACATE AN AWARD?
arbitrator, if there is only one. Each party shnll be furnished with
a copy of the award. The arbitrators in their award may grant any '
I In any ane of the following cases, the court must make an order
reedy or relief' which they deem just and equitable and witnin the vaeating the waru upon the prtition af nny party to the onntrovers

t
 'THE, AL#RNA'IV III{YT, A'wt,1+Tu t if'l iI
ANI» 'THE ARRI'IHA'TION LAW lope + 'Tu'biraltnt law

when such party proves affirmnzively that in the arbitration pro- (h) Whors the arbitrators have awarded upon a matter
ceeding:
not submitted Lu them, not affecting the merits of the decision
(a) 'I'he award was procured by corruption, fraud, or other upon the matter submitted; or
uudue mane; or
(e) Where the award is imperfect in n matter of form
(b) 'That there was evident partiality or corruption in the not affecting the merits of the controversy, and if it had been &
arbitrators or any of them; or commissioner's report, the defect could have been amended ur
disregardcd by the court
(c) That the arbitrators were guilty of misconduct in
refusing to postpone the hearing upon sufficient cause shown, The order may modify and correct the award so ts to effect the
or in rofuaing to hcnr evidence pertinent and material to the intent thereof and promote justice between the parties, {Section 25)
i

controversy; that one or more of the arbitrators was disqua- 呸

lifed to act as such under Section nine hereof, and willfully r 4.06 WHEN SHOULD A NOTICE OF A MOTION TO VACATE, MODIFY
OR CORRECT THE AWARD BE SERVED?7
refrained from disclosing such disqunlifications or of any other
misbehavior by which the rights of any party have been mate. 1 Notice of a motion to vacate, modify or correct the award must
rially prejudiced; or + be served upon the adverse party or his counsel within 3O days after
award is filed or delivered, a prescribed by law for the service upon
(d) That the arbitrators exceeded their powers, or so im- an attorney in an action. (Section 26)
perfectly executed them, that a mutual, final and definite awnrd J
upon the subject matter submitted to them was not made. 4.07 WHEN MAY THE JUDGMENT BE MADE?
Where an award is vacated, the court, in its discretion, may
direct a new hearing either before the same arbitrators or before a
Upon the granting uf en order confirming, modifying or cor-
.1 rocting an award. judgment may be cntcrd in conformity therewith
new arbitrator or arbitrators to be chosen in the manner provided in in the court wherein said application was filed. Costs of the appli-
the submission or contract for the selection of the original arbitrator cation and the proceedings subsequent thereto may be awarded by
or arbitrators. and any provision limiting the time in which the the court in its discretion. If awarded. the amount thereof must be
arbitrators may make a decision shall be deemed applicable to the included in the judgment. (Section 27)
new arbitration and to commence from the date of the court's order
4.08 WHAT ARE THE PAPERS THAT MUST ACCOMPANY THE
Whero the court vacates an award, costs, not exceeding fifty MOTION TO CONFIRM, MODIFY, CORRECT OR VACATE THE
pesos and disbursements may be awarded to the prevailing party and AWARD?
the payment thereof may be enforced in Like manner as the payment
of costs upon the motion in an action. (Section 24) The party moving lor an order confirming, modifyin.g correct-
ng. or vacnting nn award, shnll at the time thnt such motion is filed
with the court for the entry of judgment thereon alsa file tle follow-
4.05 WHAT ARE THE GROUNDS TO MODIFY OR CORRECT AN
AWARD? ing papers with the Clerk of Court:
(a) The submission, or contract to arbitrate; the appoint-
In any one of the [ullowing cases, the court must make an order ment of the arbitrator or arbitrators; and each written extension
modifying or correcting the award, upon the application of any party of the time, if any, within whuh to make the award.
to the controversy which was arbitrated: il
j (b} A verified of the award.
(a) Where there was an evident miscalculation of figures,
(c) Each notice, affidavit, or other paper used upon the
or an evident mistake in the dascription of any person, thing or
application to confirm, modify, correct or vacate such award,
property referred to in the award; nr
J and a copy of ench of the court upon snch application,
 170 'TIE AL'T'IHNAT'WE, IM''rT r'+n 41el
ANI+ TH AMI'TWA TIWN LAW

Tho judgment shall be docketed as if it were rendered in an

action.
CHAPTER TWO
The judgment so entered shall have the same force and effect in
all respects, as, and be subject to all the provisions relating to, a judg- CONSTRUCTION INDUSTRY ARBITRATION LAW
ment in an action; and it may be enforced as if it had been rendered
in the court in which it is entered. (Section 28) EXECUTIVE ORDER NO. 1008

4.09 WHEN MAY AN APPEAL BE TAKEN? 1.00 WHAT IS THE TITLE OF EXECUTIVE ORDER NO. 10087
An appeal may be taken frorn an order made in a proceeding This Executive Order shall bo known as the "Construction
under this Act, or from a judgment entered upon sn award through Industry Arbitration Lau." (Section )
certiorari proceedings, but such appeals shall be limited to questions
of law. The procoedings upon such an appeal, including the judgment 1.01 WHAT IS THE DECLARED STATE POLICY UNDER E.O. NO.
thereon shall be governed by the Rules of Court in so far s they are 1008?
applicable. (Section 29) The policy of the State is to encourage the early and expeditious
settlement of disputes in the Philippine construction industry. (See-
4.10 WHAT IS THE CONSEQUENCE IF A PARTY DIES AFTER +ion. 2)
MAKING A SUBMISSION OR A CONTRACT TO ARBITRATE?
Where a party dies after making a submission or a euntract to 2.00 WHAT IS THE BODY CREATED UNDER E.0. NO. 1008?
arbitrate as prescribed in this Act, the proceedings may he begun or There is hereby established in the CIAl a body to be known
continued upon the application of, or notice to, his executor or admi- as tho Construction Industry Arbitration Commission (CIAC). 'The
nistrator, or temporary ndministrator of his estate. In any such case, CIAC shall be under the administrative supervision of the PDCB.
the court may issue an order extending the time within which notice (Section. 3)
of a motion to confirm, vacate, modify or correct an award must be
served. Upon confirming an award, where n party has died since it 2.01 WHAT IS THE JURISDICTION OF THE CIA?
was filed or delivered, tho court must enter judgmncnt in the name af ' The CEAC shall have original and exclusive jurisdiction over
the original party; and the proceedings thereupon are the same as disputes arising from, or connected with, contracts entered into by
where a party dies after a verdict. (Section 30) parties involved in construction in the Philippines, whether the
dispute arises before or after the completion of the contract, or after
the abandonment or breach thereof, These disputes may involve
or
,
if
government. or private contracts. the Board to acquire jurisdic-
tion, the parties to a dispute must grcc to submit the same to volun-
try arbitration. (Section 4)
i
I
The jurisdiction of the CIAC may include but is not limited to
violation of specifications for materials and workmanship; violation
of the terms of agreement: interpretation and/or application of con-
tractual provisions, amount of damages and penalties; commence-
ment time and delays; maintenance and defects; payment, default
of employer or contractor and changes in contract cost.

171
 T'HF,I'!EN'TIV, DIP"T, tu rte+ l'wt' l T
AMT 'TIHE ARI''II'TIN [Link]
('/opt+ 'lwn tow· di w liw · ltnwn law

2.02 ARE DISPUTES ARISING FROM EMPLOYER-EMPLOYEE

RELATIONSHIP COVERED BY THIS LAW?
t t. Quorum
T'he presence of a majority of the members of the
No, excluded from the coverage af this law are disputes rising Commission shall constitute a quorum for the transaction
from employer-employee relationships which shall contnue to be of business. (Section 9)
covered by the Labor Code of the Philippines,
d. Deliberations
2.03 WHAT IS THE COMPOSITION OF THE COMMISSION? 'T'he decisions of the Commission shall be arrived at
'T'he Corission hall consist of a Chairman and two members by majority vote (Section 10)
all to be appointod hy the CIAP Board npon recommendation
members of the PD)CB. (Sectton 5} by te e. Secretariat
'The Commission shall have a Secretnrt to be headed
2.04 WHAT ARE THE FUNCTIONS OF THE COMMISSION? by an Executive Director who shull b responsible for
receiving reuuests for arbitration, and other pleadings, for
'The Commission shall perform, among others thnt may be notifying the parties thereto; and, for fixing and receiving
conferred by law, the following functions:
filing fees, deposits, costs of arbitration, administrative
I) 'To formulate and adopt an arbitration program for the charges, and fees. It shall be the duty of the Executive
construrtion industry; Director to notify the parties af the awnrde made by the
arbitrators.
) To enunciate policies and prescribe rules and procedures
for construction arbitraticn; The Secretariat shall have among others a Publica-
tion and a Training Division. (Section 1H)
3) Ta supervise the nrbitration program, nd exorcise such
authority related thereto as regards the appointment, f. Authority to appoint
replacement or challenging of arbitrators; and
T'he Commission is hereb y authorized to appoint the
4) 'To direct its officers and employees tu perform such fune- Executive Director, the consultants, the arbitrators, as
tons as may be assigned to them from time to time (So. well as personnel nd staff. (Section 12)
tion 6) '·IC

g. Authority to Collect Fees

2.05 DISCUSS THE FOLLOWING RELATED SUBJECT MATTERS. The Commission is empowered ta determine and
a. Compensation of the Commission collect fees, dcposits, costs of arbitration, as well as admin-
istrative and other charges as may be necessary in the per
The memhers» ot the Commission shall receive such formance of its functions nd responsibilities. The CLAC is
pcr diems and allowances as may be fixed by the CIAP also authorized to use its receipts and deposits of funds to
from time ta time. (Section 7)
finance its operations subject to the approval of the PDCB,
b. Term the provisions of any law to the contrary notwithstanding.
(Section 13)
The term of o£fee af the members of the Commission
shall be six years; Provided, however, 'That of the Com- 3.00 HOW ARE ARBITRATORS APPOINTED?
mseon members first appointed, the chairman shall hold
offre for six years; the other member for four years: and A sole arbitrator or three arbitrators may sottle n cispute.
The third for two years. 'T'be appointment toany vaancy
c Where the parties agree that the dispute shall be settled by a
1 the Commission shall only he for the unexpired portion sole arbitrator, they may, by agreement., nominate him from the list of
of the term ot the predecessc (Section 8J
arbitrator accredited by the C'IAC for appointment and confirmation.
 IHA; t'TR4Tt pl4TE, ++i
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lf the parties laul to agree as to the nrbitrntr, the+« th tu The «dip»·sit. shall he paid to the secretariat before arbitration
consideration the complexitios and tricawies ot the dnutei h.
proceedingslll commence. Payment shall either be shared equally
tho option to appoint a single arbitrator or an Arbitral Tribunal t hy the parties or be paid by any oaf them. If one party fails t contri-
1
If the CIA€ daciules to appoint an Arbitral Tibmnl. each part. hute his share in the deposit, the other party must pay in full If both

I
ray nominate one arbitrator from the list nf' nrhit cators aceeuditod parties fail tu tender the required deposit, the case shall be oonsid-
by the CIAC for appointment nd for confirmation. The third arb vrel dismissed bur the parties shall till be liable to pay one half of'
trator who is acceptable to both parties canfirmed in writing shall L. the agreed administrative charge. (Section 17)
appointed by the CIAC nnd shall preside over the Tribunal

Arbitration shol] be men of distinction in whom the business 4.00 WHAT REPORTS MUST THE COMMISSION SUBMIT TO THE
sector and the governrnent can have confidence. 'They shall not bu CIAP?
permanently employed with the CIA\C. Instead, they shall render 'The Commission sball, within three months after the end af the
services only when called to arbitrate. For each dispute they settle fiscal year, submit its annual report to the CIAP. It shall, likewise,
they shall be given fees. (Setion 14)
submit such poriodic reports as it mya he re@uureud from tie to time.
(Section 18)
3.01 MAY EXPERTS BE APPOINTED?
Yes, theservices uf thnieal or legal experts may ho tilied in 4.01 IS AN ARBITRAL AWARD FINAL AND UNAPPEALABLE?
the settlement of disputes if requested by any of the parties or hy th The arbitral award shall he binding upon the psrties. It shall
Arbitral Tribunal. If the r&quest for nn expert is dare hy either ar by be final and unappealable except on questions of law which shnli bc
both of the parties, it is necessary that the appointment of the xpert
be confirmed by the Arbitral Tribunnl. appealable to the Supreme Court, (Section 19)

Whenever the pnrtips requegt for the services of an expert, they 4.02 WHEN MAY A WRIT OF EXECUTION BE ISSUED?
&hall equally shoulder the expert'a foes nnd expenses, half of which
As soon as a deision, order to award has become final and exe-
shall he deposited with the Secretariat before the expert renders cuory, the Arbitral Tribunal or the single arbitrator with the occur-
scrice. When only on party makes tho request, it shall deposit the
whole amount required. (Section 15) rence of the CIAC shall mot propio, or on motion of any interested
party, issue a writ af execution requiring any beriff or other proper
3.02 WHAT DO ARBITRATION EXPENSES INCLUDE7 officer to execute said decision, order or award. (Section i)

Arbitration expenses shall include the filing fee; administrative 4.03 DOES CIAC HAVE A RULE-MAKING POWER?
charges, mhbitrntar's fres; fee and expenses of the expert, and othors
which may be imposed by the CLAC Yeas, the CIA(' shnll formulate and adopt necessary rules and
procedures for construction arbitration. (Section 2I)
'The administrative charges and the arbitrntor's fees shall Le
computed on the bsi of percentage of the sum in tlipute tor he [ixed
1 accordnce with the 'T'able of' Administrative Charges ard Arbi
trator's Fees. (Section 16)

3.03 TO WHOM MAY PAYMENT OF THE EXPECTED ARBITRATION

EXPENSES BE DEPOSITED?

The CIAC' shall be authorized to fix the amount ta be deposited

which must be equivalent ta the expected arbitration expenses,
 Mt'I IH
+'
I+at! ulies ultralun
('Ehppe whether he ti,pule arose before or after the eurnpletion
f h contract, ur ntto the abandonment or breach thereof. 'These
CHAPTER THREE dispute rruy involve government ar private contracts, (Section 2.I)

CONSTRUCTION INDUSTRY ARBITRATION

T'he jurisdivtiun af he CIAC mny include but is not limited to
violation of specifications for material and workmanship; violation
COMMISSION (CIAC) REVISED RULES OF al' the terms of ngreement; incrprotation an/or application of con-
PROCEDURE GOVERNING CONSTRUCTION watual provisions mount of damages and penltias; commence
ARBITRATION ent time and delnys: maintenance and defects; payment default of
employer or contractor and changes in contact
r cost. (Section 3.1I)
(s amended by C{AC Resolution Nos. 15-2006, 16 2006, 18-
2006, 19-2006, 02-2007, 07-2007, 13-2007, 02-2008, 03-2008, 11-2008, 2 01 WHAT IS THE COVERAGE OF A CONSTRUCTION DISPUTE?
01-2010, 04-2010, ad 07-2010)
Construction dispute shall include those bewen or among par-
RULE 1- Policy and Objectives ties to, or who are otberwise bound by, an arbitration ngreement,
·directly or by reference, wtether such partes are project owner,
1.00 WHAT IS THE POLICY AND OBJECTIVE OF THESE RULES? entvactor, +ubeantractor, fabricator. projtrt manager, design pr-
fessioncl, cunaultant, quantti y surveyor. bondsman or issuer of an
It is the policy and objective of these Rules to provide a fnir and
insurance poliey in a construction project. (Section 2.2)
expeditious resolution of construction dispute s as nn nlternative to
judicial proceedings, which may restore the disrupted harmonious
2.02 WILL CIAC CONTINUE TO EXERCISE JURISDICTION OVER
and friendly relationships between or nmong the parties. (Section 1.1)
CONSTRUCTION DISPUTES ALTHOUGH THE ARBITRATION
IS COMMERCIAL?
1.01 IN WHAT PROCEEDINGS ARE THESE RULES APPLICABLE?
The CIAC ahall continue to exercise original aad exclusive juris.
These Rules are applicable to proceedings in arbitration before
an Arbitrnl Tribunal of one or more Arbitrator/. (Section 1.2)
hetion over construction disputes although the arbitration is cur-
mercl pursuant ta Section 21 of .A. No, 28H5 or the Alternative
1.02 ARE THE JUDICIAL RULES OF EVIDENCE CONTROLLING IN Dispute Resolution Act ct 2004. (Section 2.2.1)
ARBITRATION PROCEEDINGS?
2.03 WHAT ARE EXCLUDED FROM THE COVERAGE OF THESE
In any arbitration proceedings under those Rules, the judicial RULES?
rule of evidence need not be controlling, nnd it is the spirit and
intention af these Rules tu ascertain the facts in each case by every xluded frm the covernge of this Rules are disputes arising
fro emploser-employee relatwmnships, which shall canrmnue to be
and all reasonable menns without regurd to technicalitiea of law or
procedure. (Section 1.32) covered by the Labor Code of the I'lulppes, (Section 22.2)

RULE 2 - Jurisdiction
2.04 WHAT ARE THE CONDITIONS BEFORE CIAC MAY ACQUIRE
JURISDICTION? '
2.00 WHAT IS THE JURISDICTION OF CIAC?7 For the CIA(' t acquire jurisdiction, the parties to n dispute
The CLAC shall have originnl and exclusive jurisdiction over must be bound by an urbtratiou agreement in their contract or sub-
construction disputes, which arose from, or is connected wit.h con- scquently agree to submit the same to voluntary arbitration. {eetion
tracta entered into by parties involved in construction in the 2.3)
a, Such arbitration agreement or subsequent submission
7 must be alleged in the Complaint. Such submission may

;
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t'[Link]'w [Link]

b) pnvup tr tension af tire to file appropriate pleading'

be an exchange of communication between thw prtic or
some other form showing that the parties have agreed to [Link] tu di8miss;
submit their dispute to arbitration. Copies of such commu-
t_ t, " " "

c) opposing an application for interim relief;

nicatiun or other form shall be atachod to the Complaint.
(Section 2.3.I) d) fling of n motion to diamiss/suspend. (Section 2.5)

b. If the Complaint is tiled without the required arbitration RULE 3 -- Request for Arbitration/Complaint
clauso or subsequent submission, the CLAC Secretariat
shall within three days from such filing, notify the Respon- 3.00 WHAT MUST A PARTY TO A CONSTRUCTION CONTRACT WHO
dent that, if he/it is willing to have the dispute be resolved DESIRES TO AVAIL OF ARBITRATION DO?
by arbitration, such agreement must bo alearly expressed
Any part to a construction contract desiring to avail of arbitra-
in the Answer.(Section 2.3.2)
Lion shall fe its Request fr Arbitration in the prescribed form and
c. Respondent's refusal to answer the Complaint or the fling number of copies te the serrtarint of the CLAC. (Section 8. A)
of a Motion to Dismiss for lack of jurisdiction shall be
deemed a refusal to subrit to arbitration, In either case 3.01 WHAT MUST BE STATED IN THE COMPLAINT/REQUEST FOR
the Commission (CIAC) shall dismiss the Complaint with- ARBITRATION?
out prejudice to its refiling upon a subsequent submission. 'T'he claimant against the government, in government con
(Section 2.83.) traction contrnt, shall state in the Corplaint/Request for Arbitra
[Link] that: 1) all administrative remedies have been exhausted, or )
2.05 MAY THE APPOINTED TRIBUNAL RESOLVE A MOTION TO
there is unreaunable delay in acting upon the claim by the govern-
DISMISS BASED ON LACK OF JURISDICTION?
ment office or officer to whom appeal is made, or 3) due tu the appli
Yes, a motion to dismiss based on lack of jurisdiction shall be cation for interim relief exhaustion of administrative remedies is not
resolved by the appointed arbitral tribunal. (Section 2.4) practicable. (Section 3.2)
The Arbitral 'Tribunal ahal! have full authority to resolve all The claimant in a private oonstruction contract has the same
issues raised in the Motion to Dismiss for lack of jurisdiction on the obligation as the above to show similar good faith compliance with
grounds that the dispute is not a construction dispute, or that the all preconditions imposed there or exemptions therefrom. (Section
Respondent was represented by one without capacity to enter into a 3.2.7)
binding arbitration agreement, or that aaic agreement or submission
is nut valid for some other reasons, or daess not cover the particular case of non·compliance with the precondition contractually
In
dispute sougth to be arbitrated, or other issues of interpretation imposed, ahsent a showing of justifiable reasons, exemption. or a
or [Link] of pre-conditoi ns to arbitration that are raised waiver thereof, the tribunal shall suspend arbitration proceedings
therein. (Section 2.4.1) pending conplinnce therewith within a reasonable period directed by
the Tribunal. (Section 3.2.2)
2.06 DO THE FOLLOWING ACTS CONSTITUTE AS A WAIVER OF
JURISDICTIONAL CHALLENGE? 3.02 WHAT MUST BE DONE AFTER THE FILING?
A party does not waive its right to challenge the jurisdiction of The CIAC Secretariat shat! within three daya from ling, trans-
CIAC by any of the following acts: mit to the respondent request for his Answer attaching thereto n
copy of the Complaint and the Request far Arbitration togethor with
a) participating in the nomination process including challen-
£mg the qualifications of n nominee;
t the annexed documents, (Section 3.3)
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3.03 WHAT IS DEEMED TO BE THE DATE OF COMMENCEMENT ln the +vet 1hut. br-lu mwad. the respondent who had not
OF THE PROCEEDINGS?
earlier quest id th jurisdietion of the Tribunal, appears and offers
The date when the Request fur Arbitration is fled with CLAC o present his evidence, the rbitral Tribunal may, for reasons that
shall, for nll intents nd purposes, be doemed ta be the date of com. - EI.1tI1CS
es the failure to appear', reopen the proceedings,. require
,
him
tucncement of the proceedings. (Seetio 3.4) lo file his answer with or without counterclaims, pay the foes, where
required under these Rules, and allow him to present his evidence,
RULE 4 - Elect of Agreement to Arbitrate
witb limited right ta cross examine witnesses already presented
the discretion of the Tribunal. Evidence already admitted shall
4.00 WHAT IS DEEMED TO BE AN AGREEMENT TO SUBMIT TO remain. 'The Tribunal shall decide the effect af such controverting
CIAC JURISDICTION? evidence presented by the responont on evidence already admitted
prior to such belated appearanee (Section 4.2.I)
An nrhitration clause in a construction contract or submission
to arbitration of a construction dispue shall be deemed an agreement 4.02 IS THERE AN INSTANCE WHEREIN ARBITRATION CANNOT
to submit sn existing or future controversy to CLAC jurisdiction, PROCEED?
notwithstanding the reference to a different arhitrntion institution
or [Link] body in such contract or submission, (ection 4I)
Yes, where the oontrwt between the parties docs not provide for
arbitration and the parties crnot agree to submit the dispute(s) to
n. When a contract contains a clause for the submission of arbitration, the arbitration cannot proceed aud the claimant's shall
a future controversy to arbitration, it is not necessary for be infrmed
o of that fact. (Section 4.3)
the parties to enter into a submission agreement before
the claimant may invoke the jurisdiction of CIAC. (Section RULE 5- Answer/Counterclaim
M.1I)
5.00 WHAT IS THE PROCEDURE IN FILING AN ANSWER?
b. An arbitration agreement or n submission to arbitration
shall be in writing, but it need nat be signed by the par- T'he respondent shall, within 15 days from receipt of tho
hies, as long as the intent is elear that the parties ngree
Request for Arbitration/Complaint, file its
Answer thorato including
-uch counterclaim/s as it may tsert, For justifiable renson/s, respun-
to submit a present. or future controversy arising from a
dent may apply to CIAC for an extension of time to file its Answer. If
construction contract to arbitration It may be in the form
respondent fails to da so, the arhtration shall proceed in accordance
of' exchange of letters sent by pots ar hy telefax, telexes, with these Rules, (Sertion 5.I)
telegrams, electronic mail or any other mode af communi-
cation. (Section 4.1.2) copy of the answer shall be transmitted in sufficient copies to
the claimant nnd to CIAC. {Section 5.2)
4.01 WHAT IS THE CONSEQUENCE IF THERE IS FAILURE OR
REFUSAL TO ARBITRATE? 5.01 WHEN MAY A REPLY BE FILED?
Where the jurisdiction of CIAC is properly invoked by the fling The claimant stall ale a reply to the counterclaim with C1AC
of a Request for Arbitration in accordance with these Rules, the and shal furnish the respondent a copy thereof within 15 days from
failure despite due notice which amounts to a refusal of the raspot. date of receipt. of the answer with counterclaim (5ertin 5.3)
deut to arbitrnte, shall not stay the procccdings notwithstanding
the absence or lack of participation of the respondent. In such case, RULE 6 - Submission and Communications/Notices
CLAC shall appoint the arbitrator/s in accordance with theee Rule.
6.00 CITE THE RULES ON SUBMISSION AND COMMUNICATION.
Arbitration proceeding shall continue, and tho award shll be made
after rcwiving the evidence of the claimant. (Section 4.2) ±Al! pleadings and written statements submitted by the
partics,
? as well as all documents attached thereto, shall be in sufficient copies

.
 TI AL'Tt INN'TI IN!{JI'TE I{A
AN 'HE AIIT' 'WI++; 1
Ju

to provide one copy for encl parts, plus one fur vrh italur, and
1I ', + lit
+· Mr' tl
v14' bet ltnlu»cf Ir
t'A Ii lutrt ion
vlurt tlv +,
If ti volatu is a lwyor, administrative action ar proceeding
I't

ore for the secretariat. (Sertian 6.1) t • { be voniuetwd by CIAC, with proper notice and hearing, for
Insofar as notices are concerned, notifications or «zmnica- inhibition or prohibition from appearing as counsel for any party
ions from the secretariat and/n the arbitrator(s) shsii be validly • ty arbitration case before CLAC for a period not exceeding six

made if they are delivered againat receipt or forwarded by registered out hs; without prejudice to suspension or disbarment action before
maul to the ndress or last known address of tho party/iee tro whom i Integrated Bar of the Philippines (IBP, at the instance of C1AC.
the same are intended as notified by the party/es in queetion or by (iection 7.2.I)
the other party/ies as appropriate.
If the violator is a duly licensed and registered professional,
If the Notice to Respondent/Request to Answer the Complaint administrative/disciplinary action may be filed before the rofes-
under Section 3.3 hereof is not received by the respondent due to ·nonal Regulation Commission (PRC), at the instance of CLAC. (Sec-
wrong address or because respondent. ha moved out from, or cnnnot tion 7.2.2)
be fund
o at, the last known address provided by the claimant, the RULE 8 - Qualification of Arbitrators
CIAC Secretariat shall inform the claimant of the non-lelirry.·ion.
receipt of tho notice an require the claimant to prai I;st rt
.90 WHAT ARE THE GENERAL QUALIFICATIONS OF ARBITRA-
respondent's correct/now nddress within fifteen_(l~±days trom rergipt TORS?2
of advice lf claimant fails to romply, the Commission shall dismiss 'The arbitrators shall he men of distinction in whum the husi-
the case without prejudice to its refiling once the whereabouts of ness sector anl the government can have confidence, Thcy shall
respondents are known to claimant/s. (Section 62 . ) be technically qualitied to resolve any construction dispute expodi
tiously and equitably. The arbitrators shall come from different pro-
Notification or communication shall be deemed tu have heen
fssions.
e 'T'hey may include engineers, architects, construction mn-
effected on the date when actually or constructively received. (Section
62. .1) nagera. engitouring consultants, nnd businessmen familinr with the
construction industry and lawyers who are experienced in construc-
RULE 7 -- Confidentiality tion disputes. (Seztion 8.I)
7.00 IS THE ARBIRATION PROCEEDINGS CONFIDENTIAL?
8.01 MUST THE ARBITRATORS BE CIAC-ACCREDITED?
The arbitration proceedings shall be considered confidential
and shall not be published except: (i) with the consent of the parties, Yes, only CIAC-accredited arbitrators may be nominated by
or (i) when neeasary in zaso resurt to the Court is made under the parties r by the first two arbitrators appointed as the third member
Rules of Court. 'The term "arbitration proceedings shall include com of a Tribunal and appointed hy CIAC as arbitrator. A replacement
[Link] to or tom CIAK, the pleadings, applications and other arbitrator shall likewise be a CL\t-accredited arbitrutor. However, as
papers filed with CIAC, sworn statements, documentary nnd testi. an exception to this rule, CIAC may appoint to an Arbitrnal Tribunal an
rnorial evidenoe, reports and minutes taken of the proceedings, and arbitrator who is not (LAC-accredited PROVID»ED) thnt the nominee:
other orders, derision, award or resolution issued by the arbitrator(s).
l) is the parties' common nominee; ') possesses the technical/legal
(Section 7.1) competence to hrdle the construction dispute involved; and a) as
signified his availability/acceptance of his possible appointments.
(ection
S &.2)
7.O1 WHAT ARE THE SANCTIONS IN CASE OF VIOLATION OF
CONFIDENTIALITY?
8.02 ARE ARBITRATORS PERMANENT EMPLOYEES OF CIAC?
Any person who violates the immediately preceding contiden-
No, arbitrators shall render service only when called upon to
iality provision shall be subject to thefollowing sanctions:(Section 7.2)
arbitrate a construction dispute, (Section 8.3)
 T', ATAN Al#, Instr'Ti t!et 4rs
THE ITU'TIN 1A .Mr 4
t'ii' (lei le od l'rs odur Cir-rin
tart n rhitrtiu
8.03 ARE ARBITRATORS CIVILLY LIABLE FOR THEIR OFFICIAL
ACTS7 lied or is nut nvuluhlu, ('IAC shall return the lists af nominees to the
pnrties and ask them to make an agrcement on a common nominee/ s
.No, arbitrators shall not be civilly liable fox acts done in the within 48 hours. If the parties still fail to agree on a common nomi-
performance of their official «dutics except in a clear case of bad faith nee, CLAC may appoint a Sole Arbitrator or an Arbitrul Tribunal. It
nalie or gross negligence ns provided ir Section 38(1), Chapter 9, CIAC decides to appoint a Sole Arbitrator, it may select an arbitrator
Book 1 of the Administrative Code of 1987. (Section 8.4) who is not a nominee of any one of the partics and who is not dis-
qualified and is available far appointment. (Section 9.2.1)
RULE 9 - Nomination and Appointment of Arbitrators
9.02 HOW IS AN ARBITRAL TRIBUNAL CONSTITUTED?
9.00 CITE THE PROCEDURE IN THE APPOINTMENT OF ARBITRA.
TORS. Where the parties agree that the dispute shall be resolved hy
an Arbitral Tribal, each party shall have the might to nominate six
A Tribunal of one or three arbitrators mny be appointed to settle
a dispute in accordance with the provisions hereunder. (Section 9.1) arbitrators from the list ot CIAC-accredited arbitrators. If thore 1s no
common nominee, CIAC shall choose and appoint, as members ot' the
a The parties shall submit the name's of not more than 'Tribunal, one arbitrator from the claimant's nominees and another
aix nominees from CIA-accredited arbitrator in the arbitrator from respondent's nominees. 'The third arbitrator shall
order of their preference for appointment as arbitrators. be selected by the two arbitratrs first chosen within l5 days from
The common nominee/s of the parties shall be appointed, acceptance of their appointment. The three arbitrators shall decide
subject to their availability and other considerations. from among themselves who will be the chairman. lu case of failure
(Section 9.1.1)
to agree on the third member within aueh period, C'LAC shall, within
b. In the absence of an agreement on the mumber of arbitra. 15 days thereafter, appoint the tbird member from its list of acere-
tors, C'LAC taking into consideration the complexities and hted arbitrators, (Section 9.3)
intricacies of the dispute's or the sum involved, has the If there is a common nominee, ('IAC shall nppoint the common
option to appoint a Sola Arbitrator or n Arbitral 'Tribunal
(Sction 9.1.2) I
nominee and one from each list submitted by the parties. T'he three
arbitrators appointed shall designate their chairman. f there are two

I
c. la case of multiple parties, whether as claimant or as common nominees, CIAC shall appoint them and the third member
respondent including three or more parties in the arbi- who shall be sclected by th first two appointees within the period
tration, where all parties are unable to @gee to a method prescribed above, If there are three common nominee, all of them
fr constitution of the Tribunal within 10 days from notice shall be appointed. The appointees shall designate their chairman
CIAC shall appoint the arbitrators. (Section 9.1.3) ' (Section 9.3.1)
9.01 WHEN MAY A SOLE ARBITRATOR BE APPOINTED? 9.03 WHAT ARE THE CONDITIONS IN THE APPOINTMENT OF
Where the parties hnve agreed that the dispute(s) shall be FOREIGN ARBITRATOR?
[Link] by a Sole Arbitrator, each party shall hsve the right to A forein arbitrator not acredited by CLAC may be appointed
uommnate six arbitrators, If any or both of the parties fnil to subms;t a8 a co-arbitrator or chairperson ot' an [Link] tribunal fur u cons-
the names of their nominees within the period/s prescribed by CLAC' truction dispute under the following conditions:
a Sole Arbitrator hall be appointed by CIAC. (Seeton 9.2) "
a) the dispute is a construction dispute in which one party
CIAC shall appoint as Sole Arbitrator the common nominee of is an international party, i.e., one whose place af business
the parties who is available and not disqualified. [n tho absence of a is outside the Philippines, For this purpose, the term
common nominee or in cases where the common nominee is disqli- international party shall not inelude a domestic subsidiary
 run, T[If. 4W'·1;'{£I ·if4 TE • it
ti'i; r'rt suit I'rl 1l
1pee lbu
fni I+lw ,lit tn
of such iuternatol party qr r inter t a joint
wt may ho request the inhibition of' an arbitrntnr upon
venture with a part whwh hus its ulaes of h;inas in th uthes just wt vahid reasons alerting independence, integrity, im-
Philippines;
uttality nd tereat (ectian 6) 'i
b) the freign
o arbitrutor to be nppointed is nat n national of
th& Fhilipines and is not ot th same nationality s the 9.07 IS A MOTION FOR INHIBITION OR A REQUEST FOR THE DIS-
internntionl purr in the dispute, (Secttan 9.4j QUALIFICATION AND REPLACEMENT OF AN ARBITRATOR
TREATED AS A CHALLENGE?
9.04 WHAT IS THE PROCEDURE IN THE APPOINTMENT OF Yes, a moon fur inhibition or a request for the disqualificntion
FOREIGN ARBITRATOR? and replacement of an arbitrator shall be treated as a challenge
The foreign arbitrator must be nominated by the international (Seeton 96.)
party or is the common choice of the two [Link] nrbitr@ T'he challenge motion ur request. +hall he in the form of a Com-
tors, one of wham was nominated by the internatiml prt The plaint uder uath, stntmg «hatingy and concisely the fcts a con-
nomnation must be uerompanind by a r~sun~ ar bio-data cf the plained ot. supported by affidavits, if nv, af persons having personal
nominee relevant to qualification ns n eustwurtian arbitrator nnd knowledge af the tacts therein alleged and shall be accompanied with
e signed undertaking of the noninee to nbida hw (LAC arbitrtiun Cop±es af such documents a may suh-1untiate snid facts, (Section
rules and policies. (Section 9,4.1 9.8.2)
The arbitrator concerned shall be given by CIAC' an opportunity
9.05 WHAT IS THE CONSEQUENCE IN CASE OF DISQUALIFICA- to he heard. He may, without adnutting the existence of the ground
TION OF OR NON-ACCEPTANCE BY NOMINEES?7 of the chnllenge, motion or request, choose to inhibit himself bt his
If the nominee#s) of a party a«hall be disquahfie! or fail or refuse decision shall be subject to nppruval by CLAC. {Section 9.6.3)
'accept the appointment, C1At ±hall choose n appoint any quali- Ir cn the challenged arbitrator is llowed to inhibit himself
fie] arbitrator whe + willing tu be so appointed. (Section 9.5J or is emovwd. C'IAC shull promptly appoint his replacement If the
arbti rator concerned is the third membor ofthe Arvitral'Tribunal, the
9.06 WHAT IS THE PROCEDURE TO CHALLENGE AN ARBITRA. flrst two members thereof'shall stl+rt his replacement. (Sectiar 9.6.4)
TOR?
The decision of CIA( to retain ar replace nn arbitrator shell he
An Arbitrator may be challenged by a pty at any time utter final (Seeti 96.{)
his appointment but before the lapse of the original 10-day period
tor submission of memoranda or drant derision under Section 13.16, 9.08 IS A CONCILIATOR/MEDIATOR DISQUALIFIED TO ACT AS
Rule 13 hereof. Any extensions of time tu file memoranda or drant ARBITRATOR?
decisions will not FXTEND the ID-day period to tile a
challenge or Yes. an arbitrator who artel as cnri'tor'mediator in a case
motion fur inhihiticn. 'The challenge ehall be baaed pon the following previously bruught here him for cancilintiorvmedintion cannot act
grounds:
ns arbtntor for the sare- case when bought to arbitration, unless
n) relationslp by blood or mnrriase within the sixth degree both parties consent to his ppunt went in writung (Section 97)
of either party ta the controversy, or to cur-els within the
fourth degree, cumpud ncear«ding to the rules of civil lnw. RULE 10 - Appointment and Acceptance of Arbitrators

b) financial, fiduciary tr other interest in the controversy; 10.00 DOES THE SECRETARIAT HAVE THE DUTY TO COMMUNI-
c) partiality or bins; CATE APPOINTMENTS7

d) incompetence, or professional misconduct Yes, the secretariat =hail communicate to tho arbitrators their
appointment (ertin 10.i)
I4ii» T'It MT'HNAT'IV, I!I' Kt;u1 r11, Mt II
'Nd TH IIWTHAT'ION LAW
K Artie'in +lutalet

10.01 EXPLAIN THE DUTY OF ARBITRATOR TO DISCLOSE DISQUA- f arbitrator; te, for the substitute/s. 'The CIAC may, if it tnde it
LIFICATON. necessary, appoint n substitute/s. If the CIAC finds the request to
be unnecessary (e.g., for Motions for correction of final uwnrd under
Upon acceptance of his appointment, the arbitrator shall dis
Rule 17,1; Motions fro execution or stay of execution under Rules
close in writing to CLAC any circumstance likely to create in either
18.5 and 18.6; Motions for relief nor covered by the Rules under Rule
party a presumpto i n of bias or which he believes might disqualify
lir as an impartial nrhitrator. I9.1: cases wher the appellate court merely directsa re-computation
of the award or a clarification thereof, or other matters which do not
Such written disclosure shall be communicated to the parties entail a re-hearing of the nae, or a hering on the merits of any
immediately by the secretariat, The purpose of such disclosure shall issue. or would not disturhinlter the findings in the final award; and
be to enable either party tu investigate and ascertain whether there other similar instances as determined by the CLAC), it shall deny the
is a substantial legal basis ta file a motion for ithibition of the arbi- same, refund the deposit made, and direct the remaining/surviving
Lrator ·unearned or eek his replacement.. (Section 10.2) arbitrator/s to act on pending matters.
10.02 WHAT IS THE CONSEQUENCE IF AN ARBITRATOR FAILS The decision of the CIAC on vacancies shall be final. (Section
TO COMMUNICATE HIS ACCEPTANCE OR REFUSAL OF HIS 10.4)
APPOINTMENT? RULE 11 -- Preliminary Conference/Terms of Reference
The arbitrator mast communicate to CIAC the acceptance ar
11.00 WHAT MUST BE CONSIDERED DURING THE PRELIMINARY
refusal of his/her appointment within five days from receipt thereof.
CONFERENCE?
If no cummunication is received within the prescribed period,
'Ihe Arbitrator'Arbiral Trihunal shall set the ease for prelimi-
CIAC shall appoint a replacement from the list of the party who
nominated him/her or, if none is available or qualified, from the list nary conference not later than 1% days alter ppuiutuuet ol :urli-
of CLAC-accredited arbitrators. (Section 10.) tratuor(s}, and a notice to the parties thereof shall forthwith be sent to
finalize the Terms of Reference as provided in RULE 1.4, n draft copy
of which is attached thereto and ta consider the fllowing,o am1ung
10.03 WHAT IS THE CONSEQUENCE IF THERE IS VACANCY
DURING THE PROCEEDINGS BUT BEFORE AN AWARD? others:
If, at any time during the proceedings but before an award has
a. possibility of amicable settlement;
been rendered. any arbitrator should resign, be incapacitated, refuse b. necessity or desirability of amendments to pleadings;
or be unable, or be disqualified for any reason to perform the duties of c. obtaining stipulations or admission o facts and/or docu
his office, GLAC may, within five days from the occurrence of a vacancy ments to avoid unnecessary proof;
or refusal/inability to accept appointment, appoint a substitute(s) to limitation of the number of witnesses;
d.
be ehosen from a list of alternatives previously agreed upon by the
parties. Ir the ahsenre of such a hist, the CLAC shall fill the vacancy suggested formulation of issues by the parts;
from the list of accredited nrtntrators. application fro interim relief, appointment of experts and
If the vacancy occurs after the award has been rendered but necessity of site insprclian; and
befare the jurisdiction of the arbitrator's over the dispute is term- such other matters as may aid in the just and speedy dis-
nated under Section 16.0 of ule 16 hereof, the CLAC may, on its position of' the case. (Section 11.I
own initiative, or upon written request of any of the parties, appoint
a replacement fror tbe list of alternatives previously agreed upon by 11.01 WHAT MUST THE ARBITRATOR DO AT THE START OF THE
thr parties or the list of accredited arbitrators. PRELIMINARY CONFERENCE?
The request shall state the justification/s for the nod for a At the start of the prelminary conferenre, the arbitrator/s shall
replacement and shall be filed together with the required deposit introduce themselves to the parties paying particular attention to
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matters related to professional training nd experience, (Seeton 'Th· 'Te·[Link] et'rec t'CR) shall he signed on eh und ever
11.2) page: thereof, by he parties together with there respective counsol
and the Arbrtral 'Trbunul immediately after finalization thereof. In
11.02 WHO IS REQUIRED TO MAKE A DISCLOSURE DURING THE any ease, the TOR rust be finalized and signed not later than five
PRELIMINARY CONFERENCE? lays from inception. (Section 11,4.)
During the preliminary conference, the arbitrator wha had
failed to make his ur her written disclosure required in the previous 11.04 CAN ARBITRATION PROCEED EVEN WITHOUT A TOR?
section shall disclose any circumstance likely to gv
i e rise to justifiable Yes, in the exercie of the sound discretion of the Arbitral
doubts as to impartiality or independence, including financial or Tribunal, arbitration shall proceed even without. the TOR on the
personal interost in the outcome af the arbitration and any existing hasis of the issues formulated by the pleadings filed by the parties
or past relationships with any individual or corporate party together (Section 11,5)
with their respective relatives or principal stockholders/officers or
foreseeable participant in the proceedings. On the basis of such dis- 11.05 WHEN MAY A CASE BF DEEMED SUBMITTED FOR DECISION?
closure, either party may ask clarificatory questions thereon that ray
lead to a decision tu move for inhibition or accept the appointment. Ne factual issue being in dispute, the case may be deemed sub-
(Section 11.3) mitted for decision without an oral hearing and on the basis c doeu-
entry evidence already submitted. (Section 11.6)
11.03 EXPLAIN THE IMPORTANCE OF THE TERMS OF REFERENCE
(TOR). RULE 12- Venue
This document functions like a pre-trial order in judicial pro- 12.00 WHO MAY SET THE VENUE, DATE AND TIME OF HEARING?
ceedings and controls the arbitration proceedings unless corrected 'T'he venue, date and time of the arbitral proceedings shall be
for manifest errors by motion fled not later than the hearing date, mutually agreed upon by the parties and the Arltrnl Tribunal. I
(Section 11.4) the event of disagreement. the choice of venue made by the Arbitral
The TOR shall include the following particulars: 'Tribunal shall prevail. (Section 12.t)
a) the full names of tho partiee, and their respective counsels,
if any; RULE 13 - Arbitration Proceedings

b) the addresses and contact numbers of the parties/counsels, 13.00 WHAT IS THE ORDER OF PROCEEDINGS IN ARBITRATION?
to which notifications or communications arising in the
A hearing shall be opened by recording of the place, time and
course of the arbitration may validly he made;
date af hearing, the presence of the Arbitral Tribunal, parties, and
c) a summary of the parties' respective claims; witness. if y. The nnmes and addresses of all witnesses and ex.
d) full statement of admitted facts and documents: hibita in the order received shall he made part of the record. (Section
e) the issues to be resolved in question form; 13.1
a. Quorum
f) the arbitrators' full names;
'Two members of a tribunal shall comprise a quorun
g) the place where arbitration poceedings
r shall be held;
for the purpose of conducting a hearing. (Section 1.1.I)
h) the breakdown, schedule of payments, and ehuring of
arbitration fees; b. Briefing on rules and procedures
i) such other particulars as may be required by the Arbitral At the initial bearing, the Arbitral Tribunal shall
Tribunal for the proper and speedy adjudication of the inform the parties of the general rules and procedures
case. (Section 11.4.1 on arbitstion prococdings, stressing peculiarities front
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judicial proceedmgs. its striet adherent tu time hars. its 13.01 MAY AN AFFIDAVIT BE SUBMITTED IN LIEU OF DIRECT
policies agamnst postponements and other matters to insure TESTIMONY?
a speedy and fair disposition of the issues. (Section 13.2)
Yes, the Arbitral Tribunal shall require the simultnneous sub-
c. Order ofpresentation missior af affidavits of' witnesses in lieu of their direet testimonies
It shall be within the discretion of' the Arbitral Ti. [Link] thorora pertinent documents supportive of their respective
bunal to determine the order of presentation of evidence. declarationg. These documents shall be properly marked tor purposes
Generally. the party who seeks to enforce a right or of identification. (Section 13.6)
estnbFish a claim shall be required to present its evidonco
first, followed by the other party. (Section 13.3) 13.02 MAY THE ARBITRAL TRIBUNAL ASK CLARIFICATORY QUES-
d. Expeditious procedures TIONS?
Yes, the rbita] Tribunal may ask clarificatory questions of
Tho Arbitrnl Tribunal shall at all times adopt the
mot expeditious procedures fro the introduction and re- the witnesses at any stage of the proceedings (ection
S 13.7)
cepton of evidences, and ehll have compicte control over
the proceedings, b in any case shall afford full and equal 13.03 MAY A DOCUMENTARY EVIDENCE BE REJECTED?
opportumity to all parties to present relevant evidence As a general rule, no documentary evideucefs) presented and
(Section 13.4) offered shall be rejected nrless the same is found by the Arbitral
e. Evidence Tribunal ta ba completely irrelevant. {Section 13.8)

The parties ray offer such evidence as they desire and 13.04 WHEN MAY THE OFFER OF DOCUMENTS BE MADE?
shall produce such additional documents and witnesses
ns tho Arbitral 'Tribunal may deem necessary to clear un- All documents not offered with the Arbitral Tribunal at the
derstanding of facts and issues for a judicious detormi- hearing but which nre arranged nt the hearing aubaequently by
nation of the dispute(s.) The Arbitral 'Tribunal shall act grooment af th parties to be submitted, shall be fiicd within five
according to justice and equity and merits of the case dye from the termination af thc hearing. l parties shall be afforded
without regard to technicalities or legal forms and need opportunity to exmine such documents. (Section 13.9)
not be bound by any technical rule of evidence. Evidence
shall be taken it the presence of the Arbitral Tribunal and 13.05 MAY THE ARBITRAL TRIBUNAL CONDUCT A SITE INSPEC-
all of the parties, except where any of the parties is absent, TI0N?
or has waived his right to he present. (Section 13.5)
Yes, the Arbitral Tribunal may, motu proprio after notice to the
f Order to produce documentary evidence parties, or upon motion of a party, conduct a ste mspection of any
Upon motion of either or both of the parties, or on building. place or premises, including any work, material, implement,
its own initiative, the Arbitral 'Tribunal may direct any machinery, appliance or any objnct therein. The Tribunal in deiding
person, board, body, tribunal, or government office, agency on the necessity of a site inspection, may consider whether n video or
or instrumentality, or curporation to proauce real or docu- pictorial presentation may suffice. (Sectior 13.I0)
mentary evidences necessary for the proper adjudication
of the issues. (Scetion 13.5.1) Costs including transportation, accommodations. mcals, rental
fee for the video/still camera, services, video tape recording. copy of
g. Order to give testimony. 1 I pictures and other expenses shall be equally shared by bot.h parties.
I
The Arbitral Tribunal may, likewise, direct any per. ;>
1
..
1
In special cases upon tho order of the Arbitral Tribunal, the party
son to give testimony at any proceedings for arbitration. • 1 who seeks this video and will benefit from it shall bear the expenses
'...4>. n ± s ± (etion 1R ? 1

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13.06 ARE ADJOURNMENTS OF PROCEEDINGS ALLOWED? from the triation of the hearing or from the date ofthe filing of
lditional umtents as previously agreed upon, whichever is later.
The Arbitral Tribunal far good cause shown. ma yadjourn tl
hexing upon his~ts own initiative or upun the request of ont of thu ertion 13.16)
parties. djonment shall nut be more than five working days. T both parties agree to submit memoranda or draft decisions,
(Section 13.11) the fling shall be simultaneous. (Section 1.76.1)
Hearing may be adjourned for more than five working days
when such have been upended due to payment deflts of any or 13.12 MAY PARTIES AGREE TO SUBMIT RESOLUTION BASED ON
both of the parties. 'The Arbitral Tribunal shall order the suspension PLEADINGS INSTEAD OF A FORMAL HEARING?
of hearings upon advice by CIA€ of nor-pytent of arbitration foe Instead of a formal hearing, the parties mav agree tu submit
by one or both parties. Hoarings shall resume upon notice by CLAC of the issues for resolution after the fling of pleadings, evidence, memo-
compliance by the defaulting party'ies (Section. 13.11.1)
rarda or draft decisions. (Section 13.17)
13.07 CAN ARBITRATION PROCEED INTHE ABSENCE OF THE PARTY?
13.13 WHEN IS THE START OF THE PERIOD TO MAKE A FINAL
The arbitration may proceed despite the absence of any party AWARD?
who after due notice fails to be present or fails to obtain an adjourn-
ment.. An award, however shall not he made solely on the default The number of days within whieh an ward shall be made will
of n party It shall be made on the hasis of evidence submitted and star. from the date af the termination of' the hearing, or from the filing
proven. (Section 13.12) of additional documents, or from the submission date of memoranda,
pleadings, documents or evidences whichever is latr. (Section 13.18)
13.08 WHEN IS THE PROCEEDINGS CONSIDERED CLOSED?
Attor the submission of the draft decision/fnal memorandum RULE 14 - Interim Relief
of arguments undtor the lapse ot the period given for the submission
14.00 WHEN MAY THE INTERIM MEASURES BE AVAILED OF?
thereof, the proceedings is considered clascd and no further pleadings
papers shall be filed nor accepted for filing. (ection 13.13) In the course of the proceedings, the Arbitrl Tribunal may.
upor the request of either or both parties or upon its own initiative,
13.09 IS RE-OPENING OF HEARING ALLOWED? issue orders as is necessary tu attain the following objectives:
'T'he hearing may be reopened b ythe Arbitral Tribunal on their • to ensure the enforcement of the ward;
own motion or upon the request of any party, upon good cause shown,
at any time befare the award is rendered. When hoaring are thus
reopened, the effective date for the closing of the hearing shall be the
• to preveut irreparable loss or injury or deterioration of
property;
date of closing uf the reopened hearing. (Section 13.11) c. to minimize or avoid undue delays in project or contract
implementation;
13.10 MAY THE ARBITRAL TRIBUNAL REQUIRE PARTIES TO d. to provide security for the performance af any obligation;
MAKE ORAL SUMMATION?
0. to produce or preserve any evidence;
'The Arbitral Tribunal nay direct the pnrties ta make u brief
oral summation at the end of the oral hoaring. (Section 13.15) such other measures deemed by the Arbitral Tribunal to
be necessary to prevent a miscarriage of justice or abuse ul
13.11 IS SUBMISSION OF MEMORANDA OR DRAFT DECISION rights of any of the parties. (Section 14.1)
ALL OWED? The order granting provisional rlief may he conditioned upon
Yes, if any or both of the parties so desire, written memoranda 4
provision of security for any act or omission specified in the order.
or draft decisiore may be submitted not later than ten calendar days I (Section 14.1.I)
•
f.
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Such interim measures may include but. shall not le Initil

to preliminary irjunction directed against a party, ppuintmnent of
receivers or detention, preservation, inspection of property, that is
I of the
t'tuts 'Ile,

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n purtan 1lreof shall be i writing specifying the

portion/s dissented framn with a statement of the reason/s thereof and
signed by the dissenting member. (Section 16.2)
1aw

the subject of dispute in arbitration. ither party may apply to the

Court for assistance in implementing or enforcing an interim mea- 16.02 WHAT MUST BE THE CONTENTS OF THE FINAL AWARD ?
sure oricred by an Arbitrul Tribunal. (Section 14.1.2)
Generally, the final award shall contain the issues involved, a
brief statement and discussion af the facts, and the authority relied
RULE 15 --Appointment of Experts upon fr the resolution or disposition of the issues. (Section. 163
. )
15.00 MAY EXPERTS BE APPOINTED?
16.03 MAY THE PARTIES SET FORTH THE AGREED SETTLEMENT
Yes, the service of technical or legal experts may be utilized if AS AN ARBITRAL AWARD?
requested by any of the parties or if deemed nocvssary by the Arbitral
If the parties settle their disputei)s during the course of the
Tribunal If the request for an expert is made by either or hy both of
arbitration. the Arbitral Tribunal, upon their request, mayet. forth
the parties, the necessity of such appointment must be confirmed by
the Arbitrnl Tribunal before issuing nn appointment. (Section 15.1) the agreed settlement as an arbitral award. (Section 16.4)

Whenever the parties request for the services of an expert, they 16.04 WHEN IS A COMPROMISE AGREEMENT SETTLED BY ME-
shall equally shoulder the expert's fees and expenses. ball' of which DIATION TREATED AS ARBITRAL AWARD?
shall be deposited with the Secretariat before the expert renders
A compromise agreement settled by mediation in the course
service. When only one party mnkes the request, it shall deposit the
whole amount required If the request for an expert is by the Arhitral
of arbitration or by direct negotiation between the parties shall be
treated as an arbitrul award if so moved by the parties ansubject tu
Tribunal, tho cost of such service[s) shall be considered part of the
the approval of the Arbitral Tribunal, after a suumnmary hearing, that
arbitration expenses which may be ordered to he paid by the losing
the same is not contrary to law, morals, good customs, public order,
party or by both parties as the Arbitrnl 'Tribunal in his/their ward
or public policy. {Section 16.4.1J
may adjudge, in the absence of e provision in the TOR signed by the
parties relative to the sharing of these expenses; Provided, however,
both parties consented to the hiring of an expert. (Section 75.1.1) 16.05 MAY THE FINAL AWARD FIX THE COSTS OF ARBITRATION?
In the case of non-monetary claims or where the parties agreed
RULE 16 -- The Arbitration Award that tho sharing of fees shall be determined by the Arbitral Tribunal,
the final award shall, in addition to dealing with the merits of the
16.00 WHEN MUST THE AWARD BE RENDERED? case, fix the costs of the arbitration, rd'or decide which af the parties
The award shall be rendered promptly by the Arbitral Tribumal shall bear the cost(s) or in what proportion the costks ) shall be borne
within 30 days from the time tho case is submitted fro resolution by each of them. (Section 16.5)
but not more than six months from the date of signing of the TOR,
or in cases where a TO is absent, not more than six months from 16.06 WHEN IS THE JURISDICTION OF THE ARBITRAL TRIBUNAL
the date of the last preliminary conference called for the purpose af OVER THE DISPUTE DEEMED TERMINATED?
finalizing and/or signing of the TOR There shall be no extensions of Except for execution or post award proceedings, the jurisdiction
time unless approved by the CIAC, (Section 16.1)
of the Arbitral 'Tribunal aver thc disputc is terminated upon the
finality of the final award or Decision. Where an appeal is taken
16.01 WHAT IS THE FORM OF THE AWARD?
from a decision or final award, and the appellate court. directs a
'The final award shall be in writing and signed by the Arbitral re-hearing or a hearing on the merits on any issue arising in the
Tribunal or a majority of its members. A dissent fro the decision case, jurisdiction terminates only upon a final dipoaition of th cane
J
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17.01 WILL IHLE FILING OF THE MOTION FOR CORRECTION

matters thereto. (Setion 16.6)
INTERRUPT THE RUNNING OF THE PERIOD TO APPEAL?

16.07 WHEN IS A PARTY ENTITLED TO NOTIFICATION OF AWARD7 Yes, the fling of the motion for correction shall interrupt the
running of the period for appeal (Section 17 1.1)
Once a final award bas been made, provided that the costs of
the arbitration have been fully paid to the secretariat by the parties 17.02 WILL A MOTON FOR CORRECTION BASED ON OTHER
or by one of them, the secretariat shall provide the parties through GROUNDS INTERRUPT THE RUNNING OF THE PERIOD TO
their respective counsel u copy of the final award signed by the APPEAL?
Arbitral Tribunal. (Section 16.7)
No, a motion fur carreclion pon grounds other then those men-
Additional copies corrified true by the executive director of the tioned in this section shall not interrupt the running of ths period for
secretarint shall bemade available, on request and at nny time, to appeal. (Section 17.1.2)
the parties or their counsel but to no one else. (Section 16.7.1)
17.03 IS A MOTION FOR RECONSIDERATION OR NEW TRIAL A
16.08 WHERE MUST THE ORIGINAL OF AN ARBITRAL AWARD BE PROHIBITED PLEADING?
FILED? Yes, a motion for reconsideration or new trial shall be considered
u prohibited pleadig. (Section 27.2)
The original of an arbitral aw»rd shall be fled with the Secre.
uiat. (Section 16.8
RULE 18 -- Executive of Final Award

RULE 17 -- Post-Award Proceedings 18.00 WHEN IS A FINAL ARBITRAL AWARD EXECUTORY?

17.00 WHAT ARE THE GROUNDS FOR CORRECTION OF FINAL A final arbitral nwnrd shell become exarutory upon the lapse of
AWARD? Li days from receipt thereof' by the parties. (Section 1.1)

Any of the parties may file n motion far correction of the final 18.01 IS THE FILING OF A PETITION FOR REVIEW FROM A FINAL
award within 15 day from receipt thereof upon any of the following AWARD ALLOWED?
grounds: "
Yes, petitian for review from a final award may be taken by
a. an evident miscalculation of figures, a typographical or any of the parties within l5 days from receipt thereof in accordance
arithmetical error; with the provisions of ule 43 of the Rules of Court. (Section 18.2)
b. un evident mistake in the description of any party, person
J • ' rt ' 18.02 WHEN IS A FINAL AWARD (IN WHICH A PETITION FOR
tato, maunt, thing or property referred to in the award;
REVIEW AND A TRO IS ISSUED) BECOME EXECUTORY?
c. where the arbitrators have awarded upon a matter not
submitted to them, not affecting the merits of the decision If petition fro review is filod from a final award and a tempo-
upon the mutter submitted: rary restraining order (TRO) is issued by the appellate court, such
award shall become executory only upon the issuance of the entry of
d. where the arbitrators have failed or omitted to resolve judgment of the appellte a court, or upon the lapse/lifting of the I'RO
certain issue's formulated by the parties in the Terms of or lifting of the preliminary injunetion. (Section 18.3)
Reference (TOI) snd subnitted to them for resolution; and
e. where the award is imperfect in a matter of form not 18.03 WILL A PETITION FOR REVIEW STAY THE EXECUTION OF
lfecring the merits of the controversy. THE FINAL AWARD?

The motion shall be acted upon by the Arbitral Tribunal or the No, the petition for review shall not stay the execution of the
surviving/remaining members. final award sought to be reviewed less tho Court of Appeal3 directs
us vow eeh tu»vows • i lcarve itat wk'eta TIN l
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18.04 WHAT MUST THE ARBITRAL TRIBUNAL DO AS SOON A8 accredited hy the Snupweme Court and mnust comply with the require-
A DECISION, ORDER OR FINAL AWARD HAS BECOME ments set by Lhe CIAC for bond approval, concurrence, ad/or accep-
EXECUTORY? [Link], such as, but not limited to, the prescribed 'Surety U'ndertaking'
formn. If there are na remaining/surviving appointed arbitrators, the
As soon as a decision, order or fnal award ha sbecome execu- Commission may approve the required bond.
tory, the Arbitral Tribunal (or the surviving remaining member/),
shall, motu proprio or on motion of the prevailing party issue n writ The concurrence of the Commission to the approval by the arbi-
of execution requiring any sheriff or proper offeer to execute said trator/s oj the hond to slay execution is orly fro the purpase of en-
decision, order or fmal award. Ij there are no remaining/survitin sriag compliance uith the requremans set by the CIAC for bond
appointed arbitrator/s, the Cmmission
o shall issue the writ prayed approval. (Section 18.6)
for. (Section 18.5)
18.07 WHAT IS THE EFFECT OF REVERSAL OF AWARD?
18.05 WHEN IS THE RELEASE OF WRIT OF EXECUTION BY THE Where an award is partinlly or totally reversed on uppeni, the
COMMISSION PURELY MINISTERIAL? Arbitrnl Tribunal (or the surviving/remaining members, or the Com-
Notwithstanding the Commission's disagreement with the sub- mission if there are no remaining/surviving appointed arbitrators)
staneo or morit f tho nwardioeision, if oxocutian is ripe or proper may, on proper motion, issue such order of restitution or repar11on
under the CIAC Rules, it shall release the writ of execution issued f damages as equity and justice may warrant under the circum-
by the arbitrator's. Hence, one an award/decision becomes exeu- stances. (Section 18.7)
tory, the release of tho writ of execution by the Commission is purely
ministerial, regardless of whether or rot the arbitrator's considered 18.08 WHAT ARE THE EXECUTORY POWERS OF THE ARBITRAL
the comments of the Commission, or any of its members, on points of TRIBUNAL7
substance in the award during scrutiny. (Section 18.5) The Arbital Tribunal (or the surviving/remaining member/s,
The writ of execution shall direct the sheriff or other officer to or the Commission, if there nre no remaining/surviving appointed
conduct the sale of property on execution in accordance with Section arbitrators) shall have the authority and power to decide matter
15 of ule 39 of the Pulos of Court. In the case of sale of real property and issue appropriate orders which are necessary and related to the
or personal property not capable of manual delivery, the auction sale execution of the award, including but not limited to the determinatiou
shall be held at the office of the sheriff serving the writ. Upon proper of suffciency of the bond, approval nf the surety or bondiug company,
application by the sheriff, with notice to the parties, CLAC may nu- satisfaction of the award. quashal of the execution, partial exerution,
thorize the sale to be held in the place where the property is located issuance of alas writs, assessment of properties levied, appointment
(Section 18.5.1) of a quantity surveyor or as=cssor, examination of, and issuance
of subpoena ad testificandum and subpoena duces tecum to banks,
18.06 MAY AN EXECUTION BE STAYED? debtors of the judgment debtor and any person holding properties or
Execution issued under the preceding section may be stayed assets of the judgment debtor. (ection
S 18.)
upon approval by the Arbitral Tribunal (or the surviving/remaining
member/'s). with the concurrence of CIAC, of a bond posted by the
RULE 19 - Relief not Covered by the Rules
petitioner in an amount equal to the award, conditioned upon the 19.00 IS THERE A FILING FEE REQUIRED FOR A MOTION FILED
performance of the judgment of the appellate court in case it upholds IN CONNECTION WITH THE EXECUTION OF AN AWARD NOT
the award in whole or in part. Such bond shall be posted within such EXPRESSLY AUTHORIZED BY THE RULES?
peril of time, which shall in no case he less than 15 days, as may be
granted by the Arbitral Tribanal during the hearing on the motion Every motion or other paper filed in connection with the ex-
for execution and the opposition thereto. The Surety Company post- oeution of ar award not expressly authorized by the Rules shall be
ing the bond must be included in the latest list of surety companies charged a fling fee of 3,000.00 or as may be prescribed by CIAC.
 'Ir'T IH
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21.01 DOES THE ARBITRAL TRIBUNAL HAVE CONTROL OVER

The motion +hall be acted upon by the Arbitrad 'Tribunal (or
ALL PROCEEDINGS?
the surviving/remaining members, or the Cammision if there are
remaining/surviving appointed arbitrators). (Section 29.1) The Arbitral 'Tribunal shall exercise complete control over all
proceedings o insure a speedy, adequate and justifiable disposition of
RULE 20 - Small Claims the disputes and csee submitted to them for resolution. (Section 2I.2)
In al arbti ration proceedings before or after an award has
20.00 WHAT IS CATEGORIZED AS A SMALL CLAIM? been rendered but prior to tho termination of the jurisdiction of
Cases where the claim does not exceed Pl million shall be cate- .he arbitrator/s over a case puraunnt to Section 16.6 hereof, the
gorized as a small claim thereby entitled to special procedures of rbitratorls shall have the power to issue subpoena and/or subpoena
disposition and reduced fees. (Section 20 1) duces tecum requiring any person to attend the hearing as a witness
r to produce relevant documents. (Section 21.2.)
21.00 WHAT IS THE PROCEDURE IN SMALL CLAIM?
21.02 WHAT IS THE EXTENT OF THE POWER OF ARBITRAL TRI-
A small claims case shall be handled hy a sole arbitrator
whose fces shall be nt a fixed rate of 3% of the claim but not less BUNAL?
than r10,000.00 or as may be prescribed by CIAC. The expenses of The Arbitral Tribunal shall decide only such issues and related
the Sole Arbitrator and CIAC staff consi»ting of actual cxperses for tatters as are submitted to them for adjudication. They have no
travel, accommodations, and administrative costs for at most two power to add, tu subtract from, modify, or amend any of the terms of
days incurred for hearing if held outside of Metro Manila shall be he contract or any supplemontary agreement thereto, or nny rule,
borne by CIAC. (Seetion 20.1.1) regulation or policy promulgated by the CLAC. (Section 21.3)
All prescribed periods under normal procedure shall whenever
21.03 HOW SHOULD THE ARBITRAL TRIBUNAL INTERPRET AND
practicable, be abbreviated to fifty percent (50%) of that required
APPLY THESE RULES?
(Section 20.1.2)
RULE 21 -- General Matters The Arbitral 'Tribunal shall interpret and apply these Rules in
so far as they relate to his/its powers and duties, Where there is a
21.00 HOWIS THE RECORDING OF PROCEEDINGS CONDUCTED? difference of opinion among the Arbitrators in an arbitral tribunal
Proceedings hefore an Arbitral Tribunsl may be recorded by concerning the meaning or application of these Rules, the same shali
means of any audio and'or audio-visual recording equipment such he decided by a majority vote. (Section 21.d)
as. but not lirited to, tape recorders and video cameras, ar if n steno-
grapher is available, either through sterogaphie notes or minutes 21.04 WHO ARE ENTITLED TO ATTEND THE HEARINGS?
taken of the proceedings All recordings on tapes, films, cassettes, Porsons having direct interest in the arbitration are entitled
disks, or diskettes shall be done by CIAC and shall remain in its cus. Lo attend the hearings. It shall be discretionnry upon the Arbitral
tody for safekeeping and eventual diepoal after the resolution of the 'Tribunal to determine the propriety of the attendance of any other
case. Copies of sueh recordings including transcripts and minutes of person. The Arbitral 'Tribunal shall have the power to require the
the proceedings shall be mnde available to the parties upon request exclusion of any witness. (Section 21.5)
for a nominal fee.
T'he Arbitral Trihunal may opt to dispense with the use of 21.05 WHAT IS DEEMED AS A WAIVER OF RIGHT TO OBJECT?
recording devices or stenographic services and take down notes of
t
Any party who proceeds with the arbitration after knowledge
the proceedings. Such notes taken shall be filed with CLAC and shall w that any provision or requirement of these Rules has not been
be part of the records of the case. C'opies of the notes filed shall be complied with and fail to state bis objection thereto in witng, shall
made available to the parties, upon request, at reproduction cost.
(Section 21.1)
I be deemed ta have waived his right to object. (Section 21.6)
 'TH. AA.Tt4'TIy i;it it, st1 Tiu,
I 1Ht, UT'TUT'IN 1 Aw

21.06 ARE PARTIES FREE TO SETTLE DISPUTE DESPITE ARBI-

TRATION?
T'he parties shall he free to settle the dispute(s) anytime ever PART III
if the same is under arbitration. In such case, the actual expense
incurred for arbitration ahall be charged ngainst the deposit. If the CASES DECIDED BY THE SUPREME COURT
deposit is insufficient, the parties shall squally shoulder the balance.
(Section 21.7) 1. KOPPEL, INC. V. MAKATI ROTARY CLUB FOUNDATION, INC.
Thparties may either jointly withdraw or moue that their com G.R. No. 198075, September 4, 2013
promise agreement be tu basis fur rendering an award by the Arbi-
tral Tribunal, if the latter have already been appointed. Where the FACTS:
registered owner
arbitrators have been appointed nd proceedings have commenced, Fedders Koppel, Incorporated (FKI). was the
the arbitration fces to bx: charged the parties shall be in accordance of a arcel of [Link] 1975, F'KI bequeathed the subject land in favor
with the stage of proceedings. (Section 21.7.1) riaaui Rotary Chub Foundation, Incorporatad by way of condi
'The Arbitral 'Tribunal shall act upon the motion after conducting tonal donation. The respondent accepted the donation with all of its
conditions On 26 May 1975, FKI and the respondent executed a Deed
a summary bearing (Section 2'.7.2)
af Donation evidencing their consensus.
RULE 22 - Costs One of the conditions of tho donation required the respondert
to leuse the subject land bnck to EKI under terms specified in their
22.00 WHAT DO ARBITRATION EXPENSES INCLUDE? Deed of Donation which the respondent accepted.
Arbitration expenses shall include the filing af administrative In October of 1976, FKI and the respondent executed an
fees, arbitrator's fees, ADF charges and fee and expenses of the Amended Deed of Donation that reiterated the provisions of the Deed
expert, and others which may be impoed s by CLAC. (Section 22. 1) contained in the
of Donation. Verily, by virtue of the lease agreement-
The tiling and ndministrative fees, ADF charges, and arbitrator's Deed af Donation and Amended Deed of Donation, FKI was able to
fees for monetary, non-monetary and small claims and the schedules continue in its possession and use of the subject land.
of payment therefor shall be in accordance with the CIAC-approved Two days before the expiration of the lease, FI and respondent
Table of Administrative Charges and Arbitrator's Fees. (Section executed another eontrat of lease (200o Lease Contract) overug
22 1.1) the subject land. In this 2000 Lease Centrer, FKI and respondent
Expert's fees shall be determined and paid for in accordance greed on a new five-year lease. The 2000 Lease Contract also cop·
rbitration clause enforceable in the event the parties
with Section 15 1.I of the Rules. (Section 22.1.2) raneesd an arnn and
<.,

• . licati
come to disagreement about the "interpretation, appl cat1oh
22.01 MAY THE CIAC FIX FEES OF THE ARBITRAL TRIBUNAL
· DIFFERENT FROM THE APPLICATION OF THE TABLE OF
FEES?
1.
execution" of the lease, viz.:
Goverai:Jaw Te prov»stop of hi,2"","""
Contract shall be governed, interpretet ant cul
Yes, the CIAC mny fix the lees of the Arbitral Tribunal at a figure trued in all aspects in accordance with the laws of
higher or lower than that which would result from tho application of the Republic of the Philippines.
the Table of Fees if in the exceptional circumstances of the case, the
Any disagreement as to the interpretation, applica-
same appears to be necessary. {Section 22.2) tion or execution of this 2000 Lease Contract shall
End of Part II-
205
 t
ITH. \IT'NI, DR4 T- teA +rt
lul'II '4l
I+'IE AI{II'T'I;\''1+, 1L..A
us, Ito ll h le +mite 'rl

be submitted to a hoard of three (})y rbitrntors con

E'or petitioer then, the rental stipulations af both the 200U
stituted in accordance with the arbitration law r
leas C'ontract nd #uh Lease Contract cannot be enforced us bey
the Philippines, The decision of the majority of th
are clearly, in view of their exorbitant [Link], in violation nf the
arbitrators shall be binding upon KI and respon-
dent. (Emphasis supplied) aforementioned threshold in item 2(g) of the Deed of Donation and
Amended Deed of Donation. Consequently, petitioner insists that. the
After the Zoo Lease Contract expired, F'KI and reaponrent amount of rent it has to pay thereon is and must still he governed
&greed to rnaw their lease for another five years. 'Thie new leas by the limitations prescribed in the Deed of Donntion and Amended
(2005 Lesssu Contract) required FKI to pay a fixed annual rent snd Deed of Donation.
to make a yearly "donation" of money to the respondent. Notably, the
22005 Lease Contract. contained an arbitration cinuse similar ta that On June 2009, respondent sent its first demand letter u
in the 2000 Lase Contract. petitioner notifying the latter of its default "per Section 1? of the
2005 Lease Contract" and demanding for the settlement of the rent
In June of 2008, P'KI sold all its rights and proportioa relative and "donation" due for the year 2009. Respondent, in the same letter,
to ita husmess in favor of herein petitioner Koppel, Incorporated further intimated of canceling the 2005 Lease Contract should peti-
On 29 August 2D08, FK! and petitioner executed an Assignment tioner fail to settle the said obligations
and Assumption of Lenee nd Donation wherein KL with the
conformity of the respondent, formally assigned all of is interests On 22 September 2009, petitioner sent a reply to respondent
and obligations under the Amended Deed of Donation and the 22005 expressing its disagreement over the rental stipulations of the 2005
Lease Contract in favor of petitioner. Lease Contract cailing tncm
h " 'severely .,i: - ti . '· 'J ''unc()n•
1 disproportionate,
scionable and "in clear violation to the nominal rentals mandated
T'he tallowing year, petitioner discontinued the payment of the by the Amended Deed of Donation. In lieu of the amount demanded
rent aud "donation" nder the 2005 Lcasc Contract by the respondent, which purportedly totaled ta P8,394,000.00,
exclusive of interests, petitioner offered to pay only P80,502.I, in
Petitioner'n rafsl to pay such rent and donation" emnnted
from its belief that the ronta] stipulations of the 2005 Lease Contract accordance with the rental provisions of the De ot Donation and
and even of' the 2000 Lease Contrnct, cannot be given effect because
Amended Deed of Donation. Respondent refused this offer.
thoy violated one of the "material conditions" of the donation of the On 25 September 20U9, respondent sent its second demand
subject land, as stated in the Deed of Donation and Amended Deed lotter to petitioner, asking for the payment of the obligations already
of Donation. due under tho 2005 Lanae Contraet. The second demand letter also
contained n demand for petitioner to "immediately vacate the lensed
According to petitioner, the Deed of Donation and Amended
premises' should it fail to pay such obligations within seven days
Teed of Donation actually established not only one bat twu lease
from its receipt of the letter.
agreements between FKI and respondent, ie,, . one ease for the fir4t
25years or from 1975 tw 2000, and nnother lease fro the next 25 years Petitioner refused to comply with the demands ct the respondent.
thereafter or from 2000 ra 202. Both leases are material cunditions Instead, on 30 Scptomber 2009, petitioner filed with the Regional
of' the donation at the subject land. Trial Court (Tt) ot Parnraque City a complaint for the rescission or
cancellation of the Deed of Donation and Amended Deed of Donation
Petitioner points out that while a definite nmout of rent for
against the respondent.
thr second Z5 year lease was uot fixed in the Deed of Donation and
Amended Deel of Donation, both deeds nevertheless prescribed
rules and limitations by which the same may be deteruinod. Such
On 5 October 2009, respondent filed an unlawful detainer
against the petitioner before the Metropolitan Trial Court (MeTC)
ca
rules and limitations ought to be observed in any succeeding lease of Paraaque City.
agreements between petitioner and respondent for they are, in them-
On 4 November 2009, petitioner in its Answer with Compulsory
selves, material raditions of' tha donation of the subject land.
Counterclaim reiterated is objection over the rental stipulntione of
 I'[I, AM'TAN'Iv# IM'rT W: 4+1tel II
NI» TH AMI(IV'W'TN AW
ul# shill l- 'tr-{ct

the 2005 Lease Contract fc .. ..

-,nrive
f'the ' or berg viol of th al+rial editions of sh splat ou, whereas, petitioner, in substance, repudiates
of the Deed of Donation nnd Amended Leed ot Donation
them. It is fro petitioner's npparent breach of the 2005 Lease
On 27 April 2010, the MeTC rendered judgment in tavor of
the petitioner. While the MT • :
[Link] that rcspondent filed the instant unlawful detainer acon
• nie MO U refused to d lisrise the action on the
I 'The arbitration clause of the 2005 Leaso Cortret stipulates
""nd that the dispute is subject to arbitration, it nonetheless sided that "any disagreement" as to the "interpretation, application or
with the petitioner with respect. to the issues regaurding the insuff. execution of the 2005 Lcaso Contract ought to be submitted to
cency of the respondents demand ard the nullity of tho 90y3 ;~,, arbitration. To the mind of the Court, such stipulation is clear and is
Contract. - <JD LU
comprehensive enough so as to include virtually any kind of conflict
The respondent appealed to the Regional Trial Court (RT(J or dispute that may arise from the 2005 Lease Cont ract including the
one that presently besets petitioner and respondent.
On 29 October 2010, the RTC reversed the MeTC decision and
n fro the subject land:
ordered the eviction of the petitioer 'l'he application of the arbitration clause of the 200~ Lease Con-
tract in this case carries with it certain legal effects. However, be-
ggrieved, the petitioner appealed to the Court of Appeals, fore discussing what these legal effects are, the Court shall first dcal
with the challenges posed against the application of such arbitration
ISSUES:
clause
1.
Whether or not the disagreement between the peti-
4ioner and respondent is non-arbitrable as it will FIRST ISSUE:
inevitably touch upon the issue of the validity af the The disagreement between the petitioner and respondent falls
2005 lease contract. within the all-encompassing terms of the arbitration clause of the
2005 Lease Contract. While it may be conceded that in the arbitration
Whether or not the petitioner can validly invoke the
of such disagreement, the valdity of the 2005 Lease Contract, or
arbitration clause of the 2005 lease contract while at. least, of such contract's rental stipulations would have to be
impugning the contract's validity.
determined, the same would not render such disagreement non-
Whether or not the arbitration clause can be opera- rhitrable. T'he quotation from Gonzales t. Climax Mining. Ltd. that
tional despite the faet that petitioner did not file was used to justify the contrary position was taken out of context.
formal application before the MeTC to render sue rereading of Gorzales would fix its relevance to this case
arbitration clause operational.
In Gonzales, a complaint for arbitration was filed before the
4. Whether or not petitioner and respondent already Pane! of Arbitrators of the Mines and Gensciences Bureau (PA-
underwent Judicial Dispute Resolution (JDR) pro- MGB) seeking the nullification of a Financial Technical Assistance
ceedings before the RTC. Agreement and other mining related agreements entered int b
private parties. 'The grounds invoked for the nullification of such
SUPREME COURTS RULING: agreements include fraud nnd unconstitutionality. The pivotal
issue that confrontd the Count then was whether the [Link] has
The Court granted the petition. The Me'TC, RTC and Court of jurisdiction over that particular arbitration complaint.
Appeals all erred n overlooking the significance of the arbitrtion
clause incorporated in the 205 Lease Contract. As the Court sees it Gonzales deeded the issue jn the negative. In holding that the
that is a fatal mistake. '' PA-MB was devoid of any jurisdicrion to take cognizance of the
cornplaint for arbitration, the Court pointed out to the provisions af
It is discrnable that the dispute between the petitioner and .
I iR.A. No. 7942. or the Mining Act of 1995, which granted the PA-MCB
respondent emanates from the rental stipulations of the 2005 Lease with exclusive originl jurisdiction only over mining disputes, ie,
Contract, The respondent insists upon the enforceability and validity

.I disputes involving rights to mining areas," "miner agreer:ents or

 :11
ti 4+l
+pt I'It M'[Link]'I Ht!T'HJ l Itt Lt1 full t lu 'pr net'rt
l
· ND'III, 4III'KT'N 1,

• eds that assuming that the existence of the

permits,"and "surface owners, ocupants, chin alders r concv- went otenu '
I; i concrxheul, thRe s
,t,4_ ('A' decision
"
sionoire" requiring the technical knowledge and +xwrience of mi contract. and the arbitration claue _ , tic is still currect
:. ··rrnl of the pares' dispute tu arbitration 1 t

ning nuthorilies in order ta he resolved. Accordingly, since the cm- declining reer! ' ., :. e HTC' the issue of whether
plaint for arbitration in Gonzales did not raise mining disputes as l .
l t clame [Link] it..Q cumplmnt tn L e ..r:\. """ presents •t1..
኏ alle኏ Pd ;
en 4;tlee tou reeeind the contract w1th
contemplated under R.A. No. 794 but only issues relating to the va- under the } facts t lt L' - 4 b኏ u ••
=; ...
licil question or one
Lidity of certain mining related agreements. the Court held that such ie.a id that. issue constitute a Ju: ml I "
damages; an f ad ] firetion and cannot be the
complaint could not be rbitrated before ths PA-MGB. It is in this . : the exercise 0l juhmn IuC ~.
that requres cites the ruling
)n pl'ocee,1lng. L"1.., ,..sondet
,,
R,
"-
b. ,uq
3'

1..a. \
context that we mde the pronouncement now in disession: subject ol f an a'tu"" s,
]
1f arbitrator 's
·" he the Court held that a panel O
Arbitration before the Panel of Arbitrators is proper only in Gonzales, wherem , laint for declaration of nullity/
bereft of jurisdiction over the vorpia1n 'l of fraud and
when there is a disagreement between the parties as to some tion of the subject • tr ct on the
contract gour«is
contract. an d
t, » t''
or turmm9T "" : he addendum
provisions of the contract between them, which needs the in- da t to the execution o1 f +
t

oppression attoncau
t 1
d tbut the complaint aho , Id
uld
terpretation and the application of that particular knowledge ,..mO ኏ \a' •fitl [, 1"')111 \it, t 00
the ot'er b contreCI Cts GI '' it oled issues which
and expertise possessed by members of that Panel. It is not ul • w l th the reulnr
i·

[Link] lS, ne. l Ul''\ 0 V

proper when one of the parties repudiates the existence or have b ieen fi1IUt v
validity of such contract or agreement on the ground of fraud are judicinl in nature.
or oppression as in this case. The validity of the contract can- Such u«
argument is misplaced and respondent cannot
[Link] argument, (Emphasis ours
Tel'
not be subject of arbitration proceodings. Allegations of fraud on the Gonzales case to suppo
and duress in the execution of a contract are matters within
the jurisdiction of the ordinary courts of law. These questions SECOND ISSUE:
rbitration clause of the 200:
-
re legal in nature and require the application and interpre- • .. 3k¢ t
Petitioner may still invoke the aro1 .· th
tation of laws and jurisprudence which is necessarily a judi-
cial function. (Emphasis supplied) Lew .. CollUact notwith.኏t. andinff the fact that 1t V'
validity of
t i,呸呸呸 '-
such contract. This is «due to the doctrine of separabihi-
'['he Court in Gonzales did nat simply base its rejection of the agreemem!
Under the doctrine of acparability, an arbitration separ!
complaint for arbitration on the ground that the issue raised therein, . :, · de ndent af. the main contract. Being a
i.e., the vuhdity of contracts. is per se non-arbitrable. TLe real is conidered as intepe mn thus he invoked
: lf. the arbitration agreement m
consideration behind tho ruling was the limitation that wns placed contract in its0l6, ' :. lidity of the main contract.
by RA. No. 7942 upon the jur»diction of the [Link] as an arbitral regardless of the possible nullity or ivalt I'
body. Gonzales rejected the complaint for arbitration because tbe
issue raised therein is no a mining dispute per R.A No. 7942 and it
o»es as»»
i«see t· dctrineof 'ke ca@."he""";""""""""""
+epara ility even Le 'J
as a further consequence of the 10€ ' rbitration
is for this reason, and only for this reason, that such issue is rendered party who repudiates the min contract may invoke 1Ls Lr
non arbitrable before the [Link] As 6tnted beforehand, .A. No. clnuse
7942 clearly limited the jurisdiction of the PA-MG only to mining
disputes THIRD ISSUE:
no"""
Much more instructive for our purposes, on the other hard, is The operation of the arbitration clause in this case j

the recent case of Cargal Philippines v. San Fernando Regal Trading, falure of the petitioner to fle a formal 'reues!

~,
defeated by the ., MeT'C The Court. finds tat the fling
Inc. I Cargill, the Court answered the question of whether issuos application therefor with thc ie not the scle
involving the rescission of a contract are nrbitrable. The ropondent [.A. • Ne 4o. g285
!'
fr ""Test" pursuant to Section 24 of zod '
in Cargill argued against arbitrability, also citing therein Gonzales. ot s an arbitration clause may he validly invoke in a
means y wIICJ « <
After dieectig Gonzales, the Court ruled in favor of arhitrllity,
ponding suit.
T'bus. the Court held:

.
 I'i, AM'TNTI DH:'II
N TH, AIt/II&'T'IN t,A
WI:Lt/ti»u
r~I It
' st- lh +le ie le,pv t'ol

Section 24 of R.A. No. 9285 reads:

heard. The party making the request shall serve it pon the res
SEC. 24. Referral to Arbitration. A cou tu4 pondent to give him the opportunity to file a comment or oppo-
whr·h 'io ww before
"" an aetin is brought in a matter which is the sub- sition as provided in the immediately succeeding le before
Ject matter of an arbitration agreement shall, if at least the hearing. [Emphasis ours; italics original]
one party so requests not later that the pre.4r• ,
renee, or e-rrai confe-
upon ttth
w
• e request of both parties thereafter Attention must he paid, towever, to the salient wordings of
f
be artier to arbitratton unless ii ads n ta ~',,""";" Rule 4. 1. It reads: "u party to a pending action filed in viointion of the
on agreement is null and vold, inoperative or incapable arbitration agreement x xx mny request the court to refer the parties
to arbitration in accordanwe with such agreement."
of being performed. [Emphasis ours; italics original]
. Th e "request" referred to in the abav provision is. · In using the word "may"to qualify the art of fling a request"
implemented by Rules 4.1 to 4.3 of AM. N 07. ! turn, under Section 24 f R.A, No. 9285, the Special ADR Rules clearly did
Special Rules of Court .:... 'o. 1-11-08-SC or the not intend to lmit the invocation of an arbitration agreement in a
ADR Hales): on Alternative Dispute Resolution (Special
pending suit solel y via such request.' After all, non-compliance wth
an arbitration agreement is a valid defense to any offending suit and,
RULE L. REFERRAL 'TO ADR
as such, may even he raised in an newer as providvd in our ordinary
Rule L.1. Who makes the request. A party to a endi rules of procedure.
action filed in violation of the arbitr ztic ' pen«mg
·.=[Link].~a.."AL:I.Z";
may request the court to refer the parties to arbitratior :,
In this case, it is conceded that petitioner was not able to file
a separate request" of arbitration hefor the Me'TC, However it ia
equally conceded that the petitioner, ns early as in its Answer with
accordance with such agreement. a r
Counterclaim, had already apprised the MeTC of the existence of
Rule 4.2, When to make request. -- (A) Whe ·, arbitra- the arbitration clause in the 2005 Lase Contraet and, more signifi-
tio .: ore the cant/y, of its desire to have the same enforced in this case. This aet of
agreement exiet before the nction is Glad
n1
for »fe h
'I'e
aea. -le request
Ic reterral ' shall be made not later than the pre-trial corf petitioner is enough valid invocation of his right to arbitrate.
rence. Afer the
-- w
.trial conference,
pre-trt
~r,
the court will nl le·
upon the request for referral if it ide orly act FOURTH ISSUE:
all parties to the case. I mace wit·ith the agreement of
The fact that the petitioner and respondent already underwent
(D) Submission agreement. -If the :. through JD proceedings before thr TC, swill not make the subse-
," "seuuent
traton a • " ere is no existing nrbi-
at the time tho caso is filed but the parties
utaequently enter into an arbitration agreement, t ,,
uuent conduct of arbitration between the parties unnecessary or cir-
cuitous. The JDR system is substantially different from arbitration
request the court to rofe ;:he· di ney may proceedings.
•
chzurng ,, Ier tIer·dispute to arbitration at any time
the proceeding8.
The JDR framework is based on the processes of mediation,

..
"l"",'?}";;pa
" motion,-Tr
orm ol a
e
dispute is cuvered by an rbite+,,
air
which shrll state th
Sate 4
at the
«« concilintion or early neutral evaluntion which entsls the submission
uf a dispute before a DR judge" who shall merely "facilitatu settle-

• ..","~""?
·' r77on agreement.

m«baas.e as»a«a»an aaon .o

mont" between fhe parties in conflict or make a "non-binding evalua-
tion or assessment of the chances of each party's case." Thus in
the JDR judge lacks tbe authority to render a resolution of the dis-
JD,
entc copy of the arbitration agreement. pute that is binding upon the parties in contlict. In arbitration, on the
The request shall contain a notice of heari other hand, the dispute is submitted to an rbitrator/s a neutral
to all parties specifying the date
-'
u tng addressed
tare aru time when it would be
·»,
third person or a group of thereof whu shall have the authority to
render a resolution bin&ding upon the parties.

i
 'AN l
'It 'tI t'RNA'T'IV II; IT• RE!WAIF'ill
'..Ir piul i tl· 'iprve tot
A.N TM AH'I'RA'TIUJN LAW

Clearly, tho mere submission of a dispute to JD& proceeding K.A. No. 92'
would not necessarily render the subsequent conduct af rhtration Section 24. Referral to Arbitration. A court befre o
mere 8urplusage. The failure af the parties in confliet to reach an which an action is brought in a matter which is the subject
umirablo settlement before the JD may, in fact, be supplemented matter nf an arbitration agreement shall, if at least one
by their resort to arbitration where a biding resolution to the dis. party so requests not later that the pre-trial conference,
pute could finally be achieved. This situation precisely finds applica- or upon the request of both parties thereafter, refer the
tion to the case at bench. parties to arbitration unless it finds that the arbitration
Neither would the u:nmry nature of ejectment cases be a agreement is null and void, in operative or incapable of
ald reason to disregard the enforcement of the arbitration clause being performed. [Emphasis supplied]
of the 2005 Lease Contract. Notwithstanding the summmry nature of It is clear that under the law, the instant unlawful detainer
ejectment cnaes, arbitration still remains relevant as it aims not only action should have been stayed; the petitioner and the respondent
to afford [Link] parties an expeditious method of resolving their dispute. should have been referred ta arbitration pursuant to the arbitration
pivotal feature of arbitration as an alternative mode af dispute clause of the 2005 Lease Contraet. 'The Me'TC, however, di not do
resolution is that it is, first and rerost, a product of party autonomy in violation of the law which violation was, in turn, affrmed by the
or tho foodom of the partin to "make their own arrangement» to RTC and Court oft Appeals on appeal.
resolve their own isputee." Arbitration agreements manifest not The violation by the MeTC of the clear directives under R.A
oaly the desire of the parties in conflict fro an expeditious resolution of renders invalid ell proceedings it undertook in
Nos. 876 and 9285
their dispute. They also represent, if not more so, the parties' mutunl
the ejectment case afer t the fling by petitioner of its Answer with
aspiration to achieve such resolution outside of judicial auspices, in Counterclaim the point when the petitioner and the respondent
a more informal and less artagonistie environment under the terms
should have been referred to arbitration. This case must, therefore,
of their choosing. Needless to state, this critical feature can never
be remanded to the Me'TC and be suspended at said point, Inevitably,
be satisfied in an ojcctment cnan no matter how summary it may be
the decisions of the Me'TC, RTC and the Court of Appeals must all be
Legal E{feet of the Application of the Arbitration Clause vaeatend and 8etaside.

Since there really are to legal impediments to the application of Te petitioner and the respondent must then be referred to
the arbitration clause of the Z(% Contract af Lease in this case, the arbitration pursunnt to the arbitration clause of the 2005 Lease
Court finds that the instant unlawful detainer action was instituted Contract.
in violation of such clause. The Law, therefore, should have governed
the fate at the parties and this suit: 2. J PLUS ASIA DEVELOPMENT CORPORATION V.
UTLTY ASSURANCE CORPORATION
R.A. No. 876
Section 7. Stay of Civil Action, If any suit or pro- G.R. No. 199650, June 26, 2013
ceeding be brought upon an issue arising out of an agree- FACTS:
ment providing for the arbitration thereof, the court in
On Decanter 24, 2007. J Plus Asia Development Corporation
which such suit. or proceeding is pending, upon being
satisfied that the issue involved in such suit or proceed- represented by its Chairman, Joo Han Lee, and Martin E. Mabunay,
ing is referable to arbitration, shall stay the action or doing business under tho name and style of Seven Shudes of Blue
proceeding until an arbitration has been had in aecor- Trading and Services, entered into Construction Agreement whereby
dance with the terms of the agreement: Provided, That the latter undertook to build the former's T2 room condominiurn'
P42,000,000.00, i5
the applicant for the stay is not in default in proceeding hotel ([Link] Building 25). The project, costing
with such arbitration. [Emphasis supplied] ta be completed within one year or 365 daya reckoned from the hist

es
 THE AL'IN,'I1KW, pH'TIT i;; 4+4t
N'TH WIT&TIN 1.A l'wt IHI 'It
d'is 4t tel he lo, nit+

calendar day afur signing of the Notice of wrd it Natier· to Pr. i Lion uf the C decision while
cec and rcoeipt of' down payment {20% uf ontrart pries). 'I'ho down et itistwt ruwvsl tit resuuulrntte. ;~,,
, • aJ rccoul'l 1deratw!l 呸 3oth motions
Puent was fully pi on Jnuury 14, 2008. Payment of' the hew lane. repondant filed motion I•fat parti 'Ni..

of the contract price will he based on actual work finished within 1 were denied.
days from receipt of the monthly progress billings. Per the
agreed ISSUES:
wok schedule, the completion date af the project will be on Decom-
bar 2008. Mabunny also subitted the required Per'ormonens Bond
issued by respondent Utility Assurance Corporntion
1.
S""",f a
whether or not the ice Rest-
C Appeals seriously erred
a notate","",,""[ii". snrat«. pie
{TAB5CO; e Dispute
the amount equivalent to 20% down payment or 8.4 rillio. h
tion Act and the Speci
patuti·
pute esol unon have stripped
'l the Court ofof Appeals
- e
Mabuna commenced work st the project sie on January , ta review arbitral awarrds ·.
ofjurist
•diotia
ic7on o 'E
2008. Petitioner paid up to the 7th monthly progress
billing sent by
Mabunay. As nf Septernher 16, 2008, petitioner had paid the :cal Whether or not the Court , f Appeals seriously erred
of App ;
mount of P15,979,472.0inclusive uf the 20% down payment LHo. i ta.. - ttrb itr'fl l award on an tsse that was
in rversing the t
d in the terms
ever, as of said date, Mabunay had accomplished only 27.5% of the raised in the answer, not iden~,t;fe
% ;, ir

inee
pryeet.
ot•
of otassigned
reference , not 088?
as an error, and not argued
:n
. any0jf tha
«e pleadings
Kt '$ fled the courr,
before tie
On November 19. 2008, petitioner terminated the contract
and sent demand letters toMabunay and respondent surety. As its
SUPREME COURT'S RULING:
demands went unheeded, petitioner filed a Request for Arbitratios
before the Construction Industry Arbitration Commission titioner's contention that with the
Th::. C t fin<hl DO mer1t m pew,
(CIA€, etourr dispute resolution under 1 R••
A 'o
Petitioner prayed that Mabunay and respondent be ordered to tie

pay
the sums of P8,980,575.89 as liquidated damages and P2.379,441.53 g_4,, ·
ate"?""" ;
known as he t _',,, • piepute Resolution Aet or
institutionalization of ern0'
9285, otherwise' ,
risdiction te review the decisiuns or
corresponding u the unrecouped down payment or 204, the CA was divested of jurisdie" ~, ie onon the provision
petitioner made ta Mabunay, ovorpayrent ouu, 1 pa«iii erroneously relied
~

awards of' the CIAG. etitiono "',, ~stic arbitration to file in tho
Respondent, on the other hand, filed a motion to dismiss on the in said law allowing any parts to"",
Regional Trial Court (RTC) a petition eit» es correct or conirm.
ground thnt petitioner has no cause af nction and the complaint states vacate a domestie arbitral award.
no cause of' action ngnst it. The (LAC cnied the motion to
dismiss. not confer on Regional
Respondent's motion for reconsideration was likewise denied. The Court holds that R.A. N, o. 9285 did,_;
. - . - wards or udecions ~arutheCLACin ol

On February 2, 2010, he CIAC rendered its Decision which T'rial Courts jurisdiction to revie"",, gaction 40 thereof
" disputes. On the contrary, . expressly
ordere Mabunay nnd U'PAS5CO to jointly nnd severally pay claimant construction ~_ tic
declares that confirmation .by
by' the R'TC is not required, thus:
liquidated damages and unrecouped down payment plus interest
.ail oe overaed by see-
ti of 'The confirmation
therecn. It likewise orders Mahunny tu pay tu claimant zhe
af arbtration cost which the claimant advanced with legal
auunt of a domestic Comfy""""
sC. 40, nrbitral aw "-~[aAward. 1
interest, tion 23 of R.A. 876.
an« to indemnify LT'AS8CO of the amount which the latter will have
paid to claimant.
· rbitral award when confirmed shall [be
domestic ar
enforced in the same manner as final and executory deei-
rts

Dissatisfied, respondent tiled in the CA n petition for review

1s of the legional Trial Court.
under Rule 43 of the 1997 Rules of Civil Procedure, ns amended. sons 'tr
firmv .tion of a domestic award shall lber maade
In the assailed decisian, the CA granted the petition and
o

The conf
by the Regionalaa t
Trial ; accccordance with the Rules
Court in
reversed and set side the Decision rendered by the CIA€
of Procedure to be he proomulgated by the Supreme Ce ourt.t
 Ttf AT ''I{NA'VR DM' If'E' tt t» 111 ·1l II'T All
AND TT AIII'I'IT'ON 1 AW ult duly Ile nprv Court

A CIAC arbitral award necd not he confirmed hy the 3. PUROMINES, INC. V COURT OF APPEALS
Regional Trial Court to be executory as provided under No. 91228, March 22, 1993
G.R.
E.O. No. I008. (Emphasis supplied.)
Executive Order (EO) No. 1008 vests upon the CIAC original FACTS: :. hr
and exclusive jurisdiction over disputes arising from. or connected
. ,a. (Puromaines) and Makati Agro Trading, nc.
Puromines, Inc. , Philipp Brother Oceanic,
with, contracts entered into by parties involved in construction in the i
A ts edintua contract wti 'I
GMakati Agro enter ,, .,J Urea in bulk. In their sales contract,
Philippines, whether the dispute ariaes before or nfter the completion Lne. (hilpp)fur the salenf prle ire e4%. te arising
., : · · oided which says thnt any d1spur
of the contract. or ufter the abandonment or broach thereof. By ex an arbitration clause is pre '
hall be e",''y, a:,
ettied by arbitration. 8'
,j u
. 'Thereafter,
"+
M/V
press pruvision of Section LS thereof, the arbitral wsrd of the CIAC frorr said contract sha USSR a shipment of
. .. " j, Aed on board nt Yurziahny U
is final and unappealalle, except on questions of law, which are Liliana Dimitrov1oaaes 2
1u di good ordcr
r'[Lo Lr,re8 in bulk complete ant 1
appealnble tu the Supreme Court. With the amendments introduced J5,50D mctrie tons [Link] .: be delivered ta
and condition for transport to toil and Manila, it;the
by R.A. No. 7902 and promulgation of the 1997 ules of Cvil Pro.
Thre bills of lading were issued by the ship-er ,
cedure, as amended, the CIAC was included in the enumeration of Purominos.
:.
•
re
... M኏
, j~
r1ti..mc. 1:1otors. "኏.• ~~A>. (Ma±time). 'The shipment coverer
loilo City' complete ant d i
"኏l.l\ •
quasi·judicial agencies whose decisions or awards may be appealed PL:t.
huppie>,
II] f fading No. 2 was discharged in 1o1
to the CA in a petition for review under Rue 43. Sucb review of the by Bi ot Lt ',,, the shipments covered by Bi
oad order and condition. He[awever, &
CIAC award may involve either questions of faet, of law, or of fact
and law.
;ti.
ot audmng>
Nos. 1 ad were discharged in Manila in had ore'
id h
' • :.

discolored and contaminated

rder and
,
condition, caked, hardened ac ImP>;__, 1 P683,056.29 including
Petitioner misread the provisions of A.M. No. 07-11-08-SC [Link]:. wru·呸 va [Link] , ,
with rust ant d l-.-+ HT 'i As result, Puromines fled a
(Special ADR Rules) promulgated bv this Court and which took effect additional discharging expenses. • "!'~ before he trial court
on October 30, 2009. Since RA. No. 9285 explicitly excludcd CLAC pl . t l<.w b1·ec1ch ot c1.mtr11ct OL '-=s 1.1'lt:UtO ,. h
com Lan1 , .:, was impleaded as charterer of the
awards trom domestic arbitration awards that need to be confirmed against Maritime and Fnil? i ,,bilipp filed a motinn to dismiss
to be executory, said awards are therefore not covered by Rule LL of vessel. Maritime filed its ans"""e ee arbitration clause Philipp
tho Special ADR Rules, as they continue to be governed by E.O. No. on the ground of failure to comply.w',that the cause of action did
I00, as amended and the rules of procedure of the CIAC. 'The CLAC oed the motion to dismiss assertny ',e
0pu of the terms of the eales contract but on
Revised Rule s of Procedure Governing Construction Arbitration uot arise
claims of cargo damages (cont"
.: ,J,4+-
from the viola11on""__,t of carriage). The trial court ruled
th trial courts
provide for the mnmner and mode of nppeal from fIAf decisions or eal the (A .A rever>en I
in favor Puromies, th 'pan apPe
Wm
d nough to include
awards in Section 18 thereof, which rends:
SEU['ION 18.2 Petition for review. -A petition for review
ruling contending that the sale contract
the claima for damages arising from the crr1age
is""; livery sf the
from n final award may he taken by any of the parties within goods. Thus. the case reached the 5G.
fifteen (15) days from receipt thereof in accordance with the
provisions of Rule 43 of the Res of Cort. ISSUE: ;),,ion elause in the sales
Whether or not the arbitrator ·t
As to the alleged error committed by the CA in deriding the case ;, 44; ble in the claims for damages subbi.
j@e
contract is [Link] e

upon an issue not raised or litiguted before the CIAC' this assertion matter of the case.
has no basis, Whether or not [Mabunay had incurred delay in the
perfrmance
o oaf his obligations under the Construction Agreement SUPREME COURTS RULING: ..
was the very first issue stipulated in the Terms of Reference (TOR), : ., ·· the sales contract is applci able in the
'The arbitration clause m corret is
which is distinct from the issue of the extent of respondent's liability ;, mntter of the case. The e CA 8
claims far de lamage8 ut
es subject
enot th to include
C

1
under the Performance Bond. >-

saying that the sales contract is comprehensive 314K

 I ALT'ERNA']IW 'I I'I WE' + i41
NI I'HI AI'II'THEA'TIN L.\ tau4 [n+lo
P'ART' LL
l h Ile tun»wv 4rt

claims for damages arising from carriage and deliwry al' the goods, look favor upun such amicable arrangements and will only interfere
As a general rule, the seller has the ob»ligation to transmit the good with great reluctance to anticipate or nullify the action of the arbi-
to the buyer, and concomitant thereto, the contracting of a carrier tu trator.
deliver the same (Art. 1523 of the Civil Code). 4. CHUNG FU INDUSTRIES (PHILIPPINES), INC. V.
COURT OF APPEALS
ramines derives his right to the cargo from the bill of lading
which is the oontract of affreightment together with the sales G.R. No. 96283, February 25, 1992
contract. Hence, Purvmines is bound by the provisions and terms of
smid bill of lading and of the arbitration clause incorporated in the FACTS:
Chung Fu Industries (Philippines), Inc. (Chung u) and
sales contract.
Assuming that thc liability of Philipp is not based on the sales Robleeor Philippines, Inc, (Roblecor) forged a construwlion agreement
contract but rather on a contract of' carriage, it is matrial to distin- whereby Roblecor committed to construet Chung Fu its corpara:om
guish what kind of charter party, i.e., demise or bareboat charter of industrial/factory complex. It was stipulated that in the event
submitted for resolution
the vessel or contract of affreightment Philipp is to determine its disputes arise from the contraet, it shall be
liability, Under the first one, the charterer will generally be consi- before a single arbitrator chosen by the parties. Apart from the
dered as owner for the voyage or service stipulated. Hence, subject construetion agreement, another ancillary contracts, ie., construct1on
tu liability tu others for damages caused by negligence. In tho second of a dormitory and support taelities and installation of electrical,
one, the owner of the vessel leases part or all of its space to haul water, and hydrant systems at the plant site were entered into by
goods for others and the general ownor retains the possession, om- the same partiesu Rohlecor failed to umpiete the work despite of
mand and navigation of the ship, the charterer or freighter merely axtension f time allowed by Chung Fu which prompted the latter to
having use u! the space in the vessel in return for bis payment of the take ovwr the construction when it hnd become cvident that Robernr
charter hire. 'Thus, the charterer is usually tree from liability to third wns not in a position to fulfil its obligation. Claiming an unsatisfied
acrout of P10.500),000 and unpaid progress billing of r2,370,178,
persons in respect of the ship.
Roblepsr filed a petition for Compulory Arbitration with prayer for
Assuming that Philipp is a demise or bareboat charter, then, it TRO before R'TC Makati Br. 57 puruant s to the arbitration clause in
is liable to Puromines subject to the terms and conditions of tho sales the corstrucaon agreement. Subsequent negotiations between the
contract. If tha contract. between Philipp and owner of M/V Liliana parties eventually
led to the formulation of an ageem r nt
e arbitration
Dimitrova was merely that of nffreigbtment, then it cannot be held agreement which states inter alia that the decision of the arbitrator
liahle for the damages caused by the breach of contract of carriage, shall be [Link] and unappealable nnd there shall be no further judicial
the evidence of which are the bills of lading. recourse if' either party disagrees with the whole or any part of the
nrbitrator's award, The arbitration agreement was approved by
In any case, whether Philipps liability should be based on the the RTC and appointed Engr. Willardo Asurcion as sole arbitrator-
sales contract or that of the bill of lading, the parties are nevertheless Asuncion ordered Chung Fu to pay RcblecorI6,108,801. He further
obligated to respect the arbitration provisions on the sales contract declared that the award is final and unappealable, pursuant to the
ad/or bill of lading. Purominos being a signatory and party to the Arbitration Agreement precluding judicial review ot the award
ales [Link] cnnot. ec pe from bis obligation under the arbitration Roblocor moved to confirm the nward but Chung Fu moved to
clause as stated therein. read the case for further hearing and asked for reconsideration of
Arbitration bas been held valid nnd constitutional. Even before the judgment award stating that Asuncion committed 1 instnncvs
the enactment of RH A. No. 876, the SC has countenanced the settle-
ment of disputes through arbitration. The rule now is that unless
of «error by disregarding the provisions of the parties contract. Tbe
lower court granted Roblecar's motion and denied Chung Fur's motion
the agreement is such as absolutly to closo tho danrs of the courts and eventually granted the motion for the issuance of the wrii at
against the parties, which agreement would be void, the courts will execution. Upon appeal, the CA affirmed lower court's decision
 I'IH# I'TIN'I'IV DINI"T, Apt 'Tu41 +At IHI
NI 'THE AKIN'TUA TIN LAW ti Ill b th upwwn {'it

vensoning that being signatories tu the arbitration arvent, ('hung 1 not be euuuted with appellate jurisdiction. In a special civil ution
Fu and its afficers are bound to observe the stipulations uf the said of certiorari, the Court will not engage in a review of the faeta found
agreement. 'The denial of the MR prompted Chung Fu to bring the nar even of the law are so patent and gross and prejudicial as tu
mater before SC. amount to a grave abuse cf discrerion or an exces de pouoir on the
part of arbitrator
ISSUE;
It should be stressed, too, that voluntary arbitrators, by the
Whether or not Chung Fu is precluded to seek judicial nature of their functions, uct in u uuusi-judicial capacity It stands to
review of the judgment awarad. renson, therefore, that their dccisions should not be beyond the acope
uf the power of judicial review of the Court
SUPREME COURTS RULING:
From the hist of rrrs and Chung Fu's discussion of the same,
Chung Fu is not precluded to seek judicial review af the judg- Chung Fu has amply mado out a case where the voluntary arbitrator
mctt ward A clause in a contract providing that all matters in failed to apply the terms and provisions of the Construction Agree-
dispute between the parties shall be referred to arbitrators end to ment which forms part of the law applicable between the parties,
them alone is contrary to public policy and cannot oust the courts of thus, committing grave abuse of discretion. Mureover, in granting
jurisdiction. But certainly, the stipulation to refer nll future disputes unjustified extra compensation to oblecar for several items, he
lo an arbitrator ur to submit an ongoing dispute to one is valid. Being exceeded his powers all of which ould havo constituted ground
part of s contract between the parties, it is binding and enforceable for vacating the award under Section 24(d) of he Arbitration Law.
in court in case one of them neglects, fails or refuses to arbitrate.
Going a step further, in event that they declare their intention to The trial court's refusal toook intw the merits of the case, despite
refer their differences to arbitration first before taking court action, prima facie showing of the existence of grounds warranting judicial
this constitutes a condition precedent, such that where a suit has review, effertively deprived Chung F of their opportumity to prove
been instituted prematurely, the court shall suspend the same and or substantiate their allegations. In so (doing, the trial zaurt itself
the parties shall be directed forthwith to proceed to arbitration committed grave abuse of discretion. Likewise, the appellate court,
in not giving due course to tho petition, committed grnve abuse of
It is stated eplicitly
x undor Art. 2044 of the Civil Code that discretion. Respondent courts should not shirk from exercising their
the finality of the arbitrators' award is not absolute and without power to review, where under the applicable laws and jurisprudence,
exceptions. Where the conditions described ir Arts. 2208, 2039, and such power may be rightfully exercised; more so where the objections
2014/) applicable to both compromises and arbitrations are obtaining, raised against an arbitration award ray properly contrtui+ proud+
the arbitrators' award may be annulled or rescinded. Additionally, for annulling, vacating or modifying said award under the laws on
under Sees. 24 and 25 of thu Arbitration Law, there are rounds for arbitration,
vacating, modifying or rescinding an arbitrators' award. 'Thus, if
and when the factual cirurstances referred to in the above-cited 5. CALIFORNIA AND HAWAIIAN SUGAR COMPANY, ET AL. V.
provisions are present, judicial review of the award is properly PIONEER INSURANCE AND SURETY CORPORATION
warranteud
G.R. No. 139273, November 28, 2000
If courts refuse or neglect to inquire into the factual milieu cf an
arbitrators award to determine whether it is in accordance with law FACTS:
or within the scope of his authority, the proper remedy is certiorari MV Sugar Islander arrived at Port ofManila carrying a cargo of
under Rule 65 or the RRC. This action will lie only where a grave soybean meal in bulk consigned to several consignees, one of which
abuse of discretion or an act without, or in excess of jurisdiction on was theMetroManila Feed Millers Association (Metro). The shipment
the part of the voluntary arbitrator is clearly shown. The writ of was insured with ioneer Insurance and Surety Corporation (PISC)
certiorari is an extra-ordinary remedy and that certiorari jurisdiction in the amount uf PI9,976,404, The cargo was discharged from the
2rt I'FIE, AM,TINNTWI IS'I!I 'OMrTDt Aw'T
NII THI Tl'RAT'ON AW '[Link]«.dent hy th krie- [Link]

vessel to barges and fror barge, the ergo wnss offloaded, vehnggod, ftirnative efses once a motion to dismiss has been filed because
and reloaded to consignees delivery trucks. Respondent claims tht such defense should have already been resolved. In the present case,
when tho cargo was weighed an a licensed truck scale a shortage of the trial eourt did not categorically resolve petitioners motion to
255.051 metric tons valued at TL,62I,I71.16 was discovered. Due to dismiss but merely deferred resolution theroof. Indeed, the present
the alleged refusal of petitioners to settle tber respective liabilities, Kules are consistent with Section 5, Rule 16 f the pre-1997 Rules of
PIC paid consignee Metro. Thereafter, as alleged subrogee of Court, because both presuppose that no motion to dismiss hnd ben
Metro, PISC filod a complaint for @damages against petitioners before filed; or in the case of' the pre-1997 Rules, if one has been tiled, it has
RTC Makati. Petitioner fled a motion to dismiss on the ground not been conditionally denied. Hence, the ground invoked may be
prematurity. The lower court issued an order deferring the hearing of still pleaded as affirmative defense even if the defendants' motion
the motion to dismiss and directing petitioners to file an answer. 'The to dismiss has been filed but. not definitely resolved, or if it has been
MR was likewise denied considering that the roason relied upon by deferred as it could be under the pre-1997 Rules.
the petitioners was a matter of defense. Petitioners filed au answer
with counterclaim and eroaseleim alleging tbat the respordent did 2 The arbitration clause is applicable to subrogee as PLSC
not comply with the arbitration clause of the charter party The in tins case. Citing Pan Malaya Insurance Corp. • CA, it ruled
rial court set the case for pre-trial which tbe petitioners moved to that the right of respondent insurance company as suhbrgme was not
be deferred and further moved tu sot for preliminary hearing the based on the charter party or any other contract; rather, it accrued
affirmative defense of lack of eaua of action for filure
a to comply upan the payment of the insurance claim by private res;on&dent to tho
with the arbitration clause. 'The motion was denied as well as the insured consignee. There was nothing u /n Malayan, however, that
subsequent MR, 'The CA sustained the RTC'a ruling. Thus, the case prohibited the applicability of the arbitration clause t the subrogee.
was brought to SC That case merely discussed, inter alia, the accrual of the nght of
subrogation and the legal basis therefor. This issue is completely
ISSUES: different from that of the consequences of such snhragion: that is,
the rights thnt the insurer acquires from the insured upon payment
I. Whether or not a preliminary hearing of the affrma- of the indemnity.
tive defense can be done despite the fact that a motion
to dismiss had been already filed.
6. ASSET PRIVATIZATION TRUST V. COURT OF APPEALS
2, Whether or not the arbitration clause is applicable to
a subrogee like PISC in this case. G.R. No. 121171, December 29, 1998
FACTS:
SUPREME COURTS RULING:
By virtue of existing lawsthat time (R.A. Nos. L528, 2077, and
I. Preliminary hearing of the affirmative defense can be 4167), MO4 was drawn whereby the RP through Surigao Mineral
a

done despite the fact that a motion ta dismiss had been already filed Reservation Bord granted Marinduque Mining and Industrial C'or-
Any of the grounds for dismissal provided for in this Rule, except poration EfMIC') the exclusive right to explore, develop, and crloit
improper venue, may be pleaded as an affirmative defense, and a nickel, cohals, and other mineral in tho Surigao mineral reservation.
preliminary hearing ma be had thereon s if a motion to dismiss The Philippine Government undertook to support the financing
had been fled (Section • Rule 16, pre-t997 Rules o; Court). True, the of MMIC hy purchase af MMIC debenture bonds and extension
said provision specifically provides that a preliminary hearing on the of guarantees. MMIC, PN, and DBP executed a Mortgage Trust
affirmative dofenses may be allowed only when no motion to dismiss Agreement whereby MMIC agreed to constitute u mortgage in favor
has been fled. Section t however must be waived in the light of of PNB an DBP over all MMC's assets; subject of' real estate and
Swction S of the sare Rule, which requires courts to resolve n motion chattel mortgage executed by the mortgagor and additional assets
to dismiss and prohibits them from deferring its resolution on the described and identified, including assets ol' whatever kind, nature
ground of indubitahilty. Section 6 disallows a preliminary bearing of or description, which the mortgagor may acqre whether in substi-
 I
I'll I'TE'HNI\VF Ii, It in rt T I cl
ANI}'HIE AHTW'TIA'TIN 1,w 4'+sltenld I fl -prom, 4 'i
tution of, in replenishment, or in addition thereto, Tne has coue th pnrti, 'The· Hule of Court is specific on how a new cnse mny be
wher MMIt' finds it diftwult. tu reet t finctal oblgutons. 'TEt»,
a FP was drafted by SGV and opproved MMIC Board of Director»
but the came was not formally adopted, approod, or rntific& by NH
and DBP. By virtue of PD 385, DBP and PNB decided to exercise
l
t
I
uitiat+ud znl such i nut don by uuert motion in a particular branch
uf the TC, Cons&quentl as there was no pending action' to spank
al, the petition to confirm the arbitral award should lave been filed
as new case and raffled accordingly to one of the branches of RTC,
their right to extra;judicially foreclose the mortgages in accordance
with the MTA. The foreclose assets were sald to PNF as lone bddor 2. T'he APT i not estopped to question the jureriction of
and were assigned t Nonor Mining Corporation, Maricalum Mining the lower court. The rule is that. "Where the court itself clearly has
and Industrial Corporation, end Island Cement Corporation. But the no jurisdiction Dver the subject mntter or the nture at
the action,
assets were transferred to AP'T n 1986, Jesus S. Cabarrus, Sr. and the invocation of this defense may be done at any time. It is neither
ther tuakholders ot MMIC filed a derivative st against Dbl and for the courts nor for the parties to violate or disregard that rule,
PNB before RTC Maka:i Br. 62 for annuhmnt of foroclosures, ope let alone tu confer that jurisdiction. this mavtzr being legislative in
cifc performance, and damnges 'Civil Case No, 900). In the course ·hnrcter. As a rule then, neither waiver nor estoppel shall npply
nf the trial, the parties reed tn submit. the cse to arbitration by to confer jurisdiction upon a court burring highly meritorious and
entering into a Compromise and Arbitration Agreement. As a result, eaceptirl cirrstances. Cne such exception was enunciated in
the trial court issued an order dismissing the complaint. The Arbi- Tijam v. Sibonghanuy. where it wus held thut "after voluntarily
tratiun Committee ruled in fvor of Cabarrus et al who subsequently .[Link] a causc and encountering n adverse decision on thc
fled in the same Civil Case No. BO0 and application/motion for con. merits, it is too late lir the loser to question the juisdic~on or power vf
frmation of arbitration award. APT opposed the same for being filed the court." Peritioner's situation is ifferent because from the outset,
improperly considering that the said motion was neither a part nor t. has consistently held the positinn that the HTC', ranch 6 had no
a continuation of the said civil ense, 'The lower court confirmed the jurisdiction to confirm the arbitral award; consequently, it cnnnot be
nward. Thus, APT fled a speril civil action for certiorari before GA said that it was +stopped from questioning the R'Tt's jurisdiction.
but the same was denied due cuursve and dismissed, 'Thug, the case Petitioner's prayer for the setting usido of the arbitrl award was not
reached the 8C. consistent with it.s disavowal of the court's jurisdiction.

ISSUES: 3, 'The arbial award in this case is reversible. The urbi

trntors came out wth an award in excess of their powers nnd palpably
1. Whether or not the trial court has jurisdiction to tevoid of faetual end tegal basis. In the case at bur, the foreclosure
confirm the arbitral award. made was fully just±fed considering that there was no financil
2. Whether or not AIT is estopped from questioning the restructaring program. If the loans are restruturuble, because they
jurisdiction of the lower court. were already due and unpaid, they were likewise forecloseable. It
is at the option of PNB and DBP whether to foreclose the mortgage
8. Whether or not the arbitral award in the case at bar adopt s 'RP. When they chose Lo forrln, they did it only »s
is reversible.
[Link] by PD 385. The arbiters exceeded their authority in awar
ding damages ta MMIC which is not impleaded ns a party to the
SUPREME COURTS RULING: derivative suit. Likewise, it exceeded its authority in warding moral
I, 'T'he trial curt has no jurisdiction to confirm tho arbitral tams;es tu lesua f'brruas, Sr.
ward. When it disaiased the ve instead of suspending it, itmade
a fatal mistake. While Brunch 62 should have merly suspended the NOTE:
case and not dismissed it, neither parties questioned said dismissal. Accordingly, Section 20 of R.A No. 876 provides:
Hence, both parties as well as the court are bound by such error.
The trial court has lost its jurisdiction. It could not have validly Sec.. 20, Form and contents of ward. The award must be
reacquired jurisdiction over the said oas on more motion of one af made in [Link] and signed and ncknowledge by a inajority of [Link]
 'T'Ht, AI 'I'IN'IV DSIHT It et+1tit +"T
AN TF. AKiTILT'ION I AW

arbitrators, if more than one; and by the sole arhitr;tor, if thorn i S@tin '! whiwh vertes tho grods tor modifying the
only one. Each party shall be furnished with a cpy of the award ·ward provides:
The arbitrators in their award may grant any remely or relief wheh See. 25. Grounds fur modifying or correcting ward Tn
they deem just and equitable and within the scope af the agreemenl anyone oaf the following cases, the court must make an order
of the parties, which shall include, but not be limited to, the spocifit modifying or correcting thr award. upon the application of any
performnnce of n contract. party to the controversy which was abitravetd
XXX XXX XX (a) Where there was an evident miscalculation of tigures, or
The arhitrators shall have the power ta decide only those matters an evident mistake in tho description of any person, thing
which have been submitted to them. The terms of the award shall he or property referred to in the award;
confined to such disputes. (Emphasis our). th) Where the arbitrators have awarded upon a matter not
submitted tu them, not affecting tbe merits of the decision
xUx XXX XX upon the matter submitted; or
Section 24 of the same law enumerating the grounds for vaca- (e) Where the award is imperfect in a matter cf form not
ing an award states: affecting the merits of the controversy, and if it had
been a commissioner's report, the defect could have been
Se, 24. Grounds for vacating award I any one of the amended or disregarded by the court.
following cnses, the court must. make an order vacating the nward
upon the petition of any party to the controversy when sueh party
7. AGAN, JR., ET AL. V. PHILIPPINE INTERNATIONAL AIR
proves affirmatively that in the arbitration proeeehug:
TERMINALS CO. INC., ET AL.
(a) The award was procured by corruption. fraud, or other
G.R. No. 155001, May 5, 2003
undue mean8;
FACTS:
(b) That there was evident pnrtility or corruption in the
arbitrators or any of them; This is one af the three consolidated cases regarding the
PIATCO conrrovorsy on NALA IPT IHI. In 1989. Aeroport de Paris
(c) That the arbitrators were guilty of miscunduct in refusing (ADP) wa+ engaged by DOYTC to conduct a comprehensive study
to postpone tbe hearing upon sufficiont cause shown, or of the NALA and determine whether the irport can cupe with the
in refusing to hear evidence pertinent and material to traffic development up to the year 2010, ADP submitted the Draft
the controversy, tbat one or more of the arbitrator was Final Report in December 1989. In 1993, six business leaders, i.e..
disqualified to act as such under Section nine hereof, and John Gokongwei, Andrew Gotianun, Henry Sy, Sr., Lucio Tan,
willfully retrained from disclosing such «disqualifications George 'Ty and Alfonso Yuchengo met with Pres. Ramos to explore
oany other misbehavior by which the rights of nny port.y the possibility of investing in the construction and oporation of 2
have been materially prejudiced; or new international airport terminal. Said business leaders formed
Asia's Emerging Dragon Corp. (AEDC) which was registered to
(d) 'That the arbitrators excccdcd their powers, or so imper- SEC to signify their commitment to the project AEDC submitted
feetly executed them, that a mutual, final and definite an unsolicited proposal to the Glovorment through the DO'I'CY
award upon the subject matter submitted to them was not MIA4 for the development of NAIA II II under a build-operate-
made. (Emphasis ours) and-transfer arrangement pursuant to R.A No. 6957 as amended hy
R.A. No, 7718 (BOT Law). On December 2, 1994, the DOTC issued
Dept. Order No. 94-82 constituting the lrequalificaton Bids and
Awards Committee (PBAC) for the implementation of the NALA LT

I
 PIT Ill .:
TI, AI,IF4NTiV EI\W' H'4 1IT1«1R4
A 'H, AM&IT'KATIN [Link] nw. l · isl he, the pre·ts· 'er1

Iil project. Aside from AEDC, Paireargo Consortium consisting of will nol. ut IHn court of its jurisdiction over the cases at bar. It
People'e Air Car and Warehousing Co., Ine. irnrgo), Phil. Air i. v·stablish«d that petitioners in the present cases who have
aunt Grouncs Services, Inc, (PAGS) and Security Bank Corp. also presented legitimate interests in the resolution of the controversy are
join the bidding process. Despite abection
j from AEDC regarding not parties to the PLATCO Contracta. Accordingly, they cannot be
the financial capability of the Paireargo. the latter won the bidding hound bv the arbitration clause provided for in the ARCA and hence,
because it offered to pay the government a guaranteed payment of nnnot be compelled to submit to arbitration proceedings. A speedy
PI7.75 billion fr 27 years while AEDC only offered Pl5 million and decisive resolution of all the critical issues in the present
for the same period. Honce, the project was awarded to laircargo controversy, including those raised by petitioners, cannot
who subsequently incorporated to Philippine Internationnl Airport be made before an arbitral tribunal. The object of arbitration
Terminals Co., Inc, {PLATCO). AEDC fled a Petition for Declaration is precisely to allow an expeditious determination of n dispute. This
of Nullity of the Proceedings, Mandamus and Injunction against the objective would nat be met if this Court were to allow the parties to
Secretary of the DOYTC, Chairman of PAC, voting member of PBAC, ettle the cases by arbitration as there nre certain issues involving
and Pantaleon Alvarez. Chairman of PBAC Technical Committee non-parties to the PI4T(O Contracts which the arbitral tribunal will
before the RIC Pasig. However, the government tlroug;h DOTC not be equipped ta resolve.
See. Arturo 'T Errile and PIATCO President Henry T. Go signed
the Concession Agreement for the Build-Operate-and-Transfer NOTE:
Arrangement of the NATA IPT III (1997 Concession Agreement) The PIATCO Conracts are null and void:
Subsequently, the Amended and Restatod Concession Agreement
(ARCA) was signed by the same parties. Section 10,2 of ARCA 1) 'The predecessor of PLATCO is not a qualified bidder for
pmvides the ventof the arbitration proceedings in case a dispute or failure to comply the financial capability to undertake the project in
controversy arises between the parties to the agreement. Thereafter, the mimun amount of {0% of the project cost. It is because, un-
three Supplements to ARCA were signed by the government nd der tho law (.A. No, 337 as amended by General Banking Act), the
PIATCO. In the yoar 2002, different petitions assailing the said Security Bank cannot invest the entire amount of its et worth n a
agreements fled by the workers of the international uirline service single urdertaking or enterprise, whether allied or non-allied.
providers, Cong. Bateria, Martinez, and mnun more who were not.
parties to the agreement reached the SC. During the pendency of the 2) The 1997 Concession Agreement is not valid. It allows
amendments that cover items that would not materially affect. the
case, Pres. GM\ in one of her speeches stated that the government
will not honor the PIA'TCO contracts for being null and void. On preparation of the proponent's proposal. A close comparison of the
draft Concession Agreement attached t the Bid documents and the
March 6, 2003, PIATCO informed the Court that on March 4, 2003,
they commented arbitration proceedings before the International 1997 Concession Agreement reveals that the documents differ in at
least two material aspects. First, modification on the public utility
Chamber of Commerce, International Court of Arbitration ([CC) by
filing n Request for Arbitration with the Secretariat of'the ICC against
revenues and non-public utility revenues that may be collceted by
the Government of the RP acting through the DO'TC and MLAA PIA'TCO. When tnken as n whole, the changes under the 1997 Con-
cession Agreement with respect to reduction in the types of fees that
se subject to MIA regulation and the relaxation of such reguin-
ISSUE:
ton with respect to other fees are significant amendments thnt sub
Whether or not the proceedings shall be suspended to
stnntially distinguish the raft concession agreement from the 1997
give way to arbitration, concession agreement. Second, assumption by the government of the
liabilities of PIATCO in the event of the latter's default thereof.
SUPREME COURTS RULING:
3) There is a provision in the 1997 Concession Agreement
The proceedings shall not be suspended just to give way to
which contravenes Article 1, Soction 17 of the 198 Constitution
arbitration. 'Though, arbitration proceedings have been filed at the
instance o! PLAT€O pursuant to See 1D.0 of the ARCA, such step (temporary takeover of public utility in case of national emergency).

s
 T'TH#, I,T'ARNA'iW, DI'I'IT He@ I+tut Ar I
AND THI, AKI'TIA'TWJN 1AW wlh le! hr lw up+et'rt

Part of the provision of the 1997 Concession Agreement says, "Con. o resorwt ts arltration a provided for in Section 336 of the Clearing
cessionaire shall be entitled to reasonable compensation for the dura- louse Rules and Regulations of the PCHC. Associated Bank cour-
tion of the temporary take over by GRP, which compensation shall wred that the court has jurisdiction over the suit as the provisions
take into account the reasonable cost for the use of the terminal and/ of the Clearing House Rules and Regulations are applicable only if
or terninal complex...
he suit or action is between participating member banks, wherens
4) 'The 1997 Concession Agreement and ARCA contravene the plaintiffs are private persons and the third-party complaint
the Constitutional provision regarding prohibition and regulation of between participating member banks is only a consequence of' the
monopolies (Article 12, Section I9). The 1997 Concession Agreement original action initinted by the plaintiffs. The trial court dismissed

I
nnd ARCA provide that in view of the exclusive right granted to he third party complaint for lack of jurisdiction Lpon appeal, the
PIATCO, the ccncession contracts of the service providers currently L'A dismissed the appeal Hence, the case reached the SC.
!
servicing termnals I and would no longer be renewed and those
concession ontrnets whose expiration are subsequent to the in- f ISSUE:
service date would cease to be effective on the said date. ' Whether or not the arbitration provision of the Clear-
ing House Rules and Regulations of the PCHC (Section
8. ASSOCIATED BANK V. COURT OF APPEALS 36) is applicable in the case at bar.
G.R. No. 107918, June 14, 1994
SUPREME COURTS RULING:
FACTS;
The nrbitration provision of the Clearing House Rules and
l'hilippine Commercial International Bank (PCIB), Far East Regulations of the PCHC (Sectin 86) is applicable in the case at bar.
Bank nd Trust Company (EBTC), Security Bank and Trust Com- Under the rules and regulations of the Philippine Clenrig House
pany (SBTC), and Citytrust Banking Corportion a (CBC) filed a Corporation (PCIIC), the mere act of participation of the parties
complaint for violation of the Negotiable Instruments Law and Da- cunwerued in it operatons in effect amounts to a manifestation of'
mages against. Associated Bank seeking the recovery of 900,913.60 agreement- by the parties to abide by its rules nnd regulations. As a
which the later charged against their current account by virtue of 16 consequence af such participation, a party cannot invoke the jurie-
cheeks drawn by them despite the apparent alterations therein with diction ut' the courts aver disputes and controversies which fall under
respect to the name of the payee, i.e., Filipinas Shell was erased and the PCHC Rules nnd Regulations without first going through tho
submitted with Ever Trading nnd DBL Trading by their supervisor arbitration prowesses laid out. by the holy. Since claims relating Lo
Jeremias Cabrera without their knowledge and consent. Associated
the regularity of checks lard by banking institutions are among
Bank argued that the checks were regularly issued and the proxi-
those claims which should first be submitted for resolution by the
mate cause of the plaintifls' loss was thoir own laxity, negligence and
PC'HCs Arbitration Committee, petitioner Associated Bank. having
lack of control, due care and diligence in the conduct of their business
voluntarily band itaolf ta nhide hy such rules nnd regulation, is
affairs. With leave of court, Associated Bank filed a third-party com-
estopped from seeking relief from the Regional Trial Court on the
plaint gainst PCI, FEBTC, SBTC, and CBC for reimbursement,
coattails of a private claim and in the guise of a third party complaint
contribution, indemnity from said third-party defendnnts for being
without first having obtained a decision adverse to its claim from the
the collecting banks of the subject checks and by virtue of their bank
aid body. It cannot bypass the arbitration prnces& on [Link] basis of its
guarantee for all checks sent for clearing to the Philippine Clearing
House Corporation (CHC), In the answer of the PCIB, one of its averment that its third party complaint is inextricably linked to the
arguments is that RTC Br. 81 of Quezon City has no [Link] over original complaint in the Regional Trial Court.
the suit as it and third-party plaintiff ars members of the PCH and Pursuant to its function involving the clenring of checks and
bound by the Pules and Regulations thereof providing for arbitration. other clearing items, the PCHC has udopted rues and regulations
Likewise. SBT€ fled a motion to dismiss on the ground of fu~lure designed to provide member hanks with n procedure whereby dis-

i
 'AHrT IHI
'IIE, I IN'TIWI, DI<I'IT II,Al1 Fu4 t a lid-d h le vs kiri
\4I TH, AMK!'HI'1N [Link]

9. HEIRS OF AUGUSTO L. SALAS, JR.

putes involving the clearance of checks and other neotbl instr. V LAPERAL REALTY CORPORATION, ET AL.
mens undergo a process of arbitration prior tu submission to the
courts below. 'T'his procedure not. only ensures a uniformity of ruling G.R. No. 135362, December 13, 1999
relating to factual disputs ivolvngchecks and other negotibie ins
trumenta but also provides a mechanism for settling minor disputes FACTS:
among participating and membcr banks which would otherwise go Salas, Jr. was the registered owner of a vast tract of land in
direcly to the trial courts. While the PCHC Rules and Regulation Lipa City, Datangas spanning ,44,3354 square meters. He entered
allow appeal to the Regional Trial Courts only on questions of law, into an Owner-Contractor Agreement {Agreement.) with laperal
his does not preclude our lower courts from dealing with questions Realty Corporation (-aperal Realty) to render and provide complete
of fnct already dcded by the PCHC arbitration when warranted and construction services on his land. He also executed a SPA in favor of
appropriate. Lnarsl Realty to exercise generrl control, supervision and manage-
metn of the sale of bis land. for eesh or on installment basis. Salas,
In Baneo de Or Savings and Mortgage Banks v. Equitable
Jr. lett his home for business trip to Nueva Eeija and never returned.
Banking Corporation, this Court had the occasion to rule on the
'I'bus. Teresita Laz Salas fled with the RTC Malati City a veri
validity of those rules as well as the jurdiction of the PC'HC as a
forum for resolving disputes and controversies involving checks
fied petition for the declaration of presumptive death of her husband
which the lower court granted. Laperal Realty subdivided the land
and other clearing item when it held that "the participation of two
banks... in th Cleaning Operatons of the PCHC (was) a manifesta- and sold subdivided portions to Rockway Real state Corporation
and South Ridge Village, Ic, and to several lot buyers. Hence, tho
tion of its submission to its jurisdiction."
heirs of Salas, hr. filed before the RTC Lipa Ciry n complaint for
Section 6.6. 'The mere fact. that au bank participates in the declaration of nullity of sale, reconveyance, cancellation al contract
clearing operations of PCHC shall deemed its written ad subscribed accounting and damages agminst Laperal Realty et al. Laperal Realty
኏---t.,a the oon1nlaii኏t tor [Link] LCJ comply with the arbi-
consent to the binding effect of this arbitration agroentent ns if it had OVE d t LO Ii~
done so in accordanee with Section 4 of the R.A. No. 876 (Arbitration
H .]
th
tration provision of the agreement. 'The lower court isniased the
Law), 'Thus, not only do the parties manifst e by rare participation complaint. Thus, the heirs of Salas, Ir, filed n petition fr revicw on
their consent to these rules, bt such participaton is deemed (their) certiorari before SC.
written and subscribed consent to the binding effect of arbitration
agreements under tbe PCHCt rules. Moreover, a participant subject ISSUE:
to the Clearing House Rules and Regulations of the PCHC may go Whether or not Rockway Real Estate Corporation,
on appeal to any of' the Regional Trial Courts in the National Capital
South Ridge Village, Inc, and the buyers of the lot are
Region where the head otfice of any of the parties is located only after bound by the arbitration provision of the Agreement,
a decision or award has been rendered by the arbitration committee
or arbitrator on questions of law,
SUPREME COURTS RULING:
Clearly therefore, petitioner Associated Bank, by its voluntary Rockwav Real Estate Corporation, South Ridge Village. Inc.,
participation nnd its conacnt to the arbitration rules cannot go and the buyers of the lot are bound by the arbitration provision of
directly to the Regional 'Trial Court when it finds it convenient to do the Agreement. A submission to arbitration is z contract. As such,
so. 'The jurisdiction of the PCHC under the rules and regulations is the Agreement, containing the stipulation on arbitration, binds the
clear, undeniable and is particularly applicable ta all the pnrties in
parties thereto, as well as their assigns and heirs. But only they
the third party complaint under their obligation to first eek redress
petitioners, us heir of Suls, Jr., nd respondent Laperal Realty are
of' their disputes and grievances with the PCHC before going to the
certainly bound by the Agreement If respondent Laperal Realty had
trial court.

i
 TIHL AI'TEIN'HV# JE#HT Iwwl 41tu-
AN[ 'IHI; AM{WTIRATON I,,' 'u..in led l tte !pwt wont

assigned its rights urder the Agreement to, n th rl party, making 10. COCA-COCA BOTTLERS PHILIPPINES, INC. SALES FORCE
the former, the assignor, and the latter, the nssi;nee, such assigner UNION-PTGWO-BALAS V COCA-COLA BOTTLERS
would also be bound by the arbitration provision inwe assignment PHILIPPINES, INC.
involves such transfer of rights as to vest in the assignee the power tu
G.R. No. 155651, July 28, 2005
enforce them to the same extent as the assignor could have enfrced o
them against the debtor or in this case, against the heirs of the FACTS:
original party to the Agreement. However, respundents IRorkwav The Urion ~led u Notice to Strike with th NCMB raising cer-
Real state Corporation, South Ridge Village, Iuc.. Mahnrami tin tasucs for conciliation. As a result ol' the snid dispute, the Union
Development Corporation, spouses Abrajano, spouses Lava, Oscar taged a strike. 'I'hereafter, NCMB succeeded in making thc parties
Dacillo, Euurdo Vacuna, Florante de la Cruz and Jesus Vicente agree to a voluntary settlement of the case vin n [O\ signed by then
Capellan are not assignees of the rights of respondent Laparal Rea!ty which provides that the company shli grent all those covered by
under the Agreement to develop Salas, Jr.'+ land and sell the same the bargaining unit represented hy the union an amount equivalent
They are, rather, buyers af the land that respondent Laperal Realty to 50% of their avergo commission for the last six months in the
was given the authority to develop and sell under the Agreement. A4$ Christmas bonus, which the union knowledges as a management
such, they are not "assigns" contemplated in Art. 1311 ol' the New prerogative. In December 1999, the company granted n fixed amount
Civil Code which provides that "contracts take effect only between of P4,000 eliminating the said 50%. Thus, claiming that the same
the parties, their assigns and heirs." was a violation of the MO\, the union submitted its grievance to
CCBPI. No settlement was reached, thus, the case wns then refrred e
lt is the contention of the heirs of Salas, Jr. that they instituted to a Panel of Voluntary Arbitrator. After hearing and the submi-
action against both respondent Laporal Realty und respondent lot ssion af evidence and position papers, the Arbitration Fane! ruled
buyers for rescission of the sale transactions and reconveysnce to that the P4.000 ex gretia is not n bonus, thus, the 5Un claim is de-
them of the subdivided lats. 'l'hey argue that rescission, being their nied. The ruling was signed by Apron langahnt and Noel Sanchez
cnuse of action, falls under the exception clause in Seczion 22 of R.A. as chairman and member With respect to Arnel Dolendo, intead s
No. 876 which provides that "such submission [to] or contract [of of signature, he noted on the ruling that he dissented on deliber-
arbitration] shall bo valid, enforceable and irrevocable, cave upon tion and will file a Repnrare opinion, Ihe Decision was received by
such grounds as exist at law for the revocation of any contret." SHnid [Link] Union without the attached dissenting opinion on February 222,
contention is without merit. 2001. Hence, they filed an Lhrgent Ex Pare Manifestation with Motion
assailing the decision to be incomplete and premature and moving
Laperal Realty, as a contraetin party to the Agreement, has that the Decision be held in abeyance tho preseriptve period for a
the right to vorpel petitioners to first arbitrate before seeking judi- legal remedy be suspended. 'The panel did not act on the motion, On
cial relief, However, to split the proceedings into arbitration for March 2, 2001, the union wan furnished witb a copy af the dissenting
responoient Laperul Realty and trial fro the respondent lat buyers, opinian of Dolendo. Thus, on March 12, 2001, the uniontiled a MR of
or to hold trial in abeyance pending arbitration between petitioner the January 21, 2001 Decsion. The order of denial wus received by
und respondent Lapcral Realty, would in effect result in multiplicity the union on duly 9, 200I. Thus, the union filed a petition for review
of suits, duplicitous procedure and unnecessary delay. On the other before the CA on July 24, 2001. The CA dismissed the petition as well
it.
hand, would be in tho interest of justice if the trial court bents tbe as the subsequent M for being Liled out of time
complaint against ali herein respondents and adjudicates petitioners'
rights as against theirs in a single and complete proceeding. ISSUE:
Whether or not the Decision of the Panel of Arbitra-
tors attained its finality even without the dissenting opi-
nion of one of its members.

.l
 TE AL'T'ENA'TIE iM:rrtj :a4 Tu PAI!' HI
AND 'THI, AI\'IS'IN 1,AM
I u ls«le! hw ls itntt -ft

SUPREME COURTS RULING:

lortusk t vomuruet the latter its lntegrated lron and Steel Mills
'The Decision of the Panel of Arbitrators attuined its finslit omplex to he established at Iligan City 'Thereafter the servies of
even without the dissenting opinion of one of its membes, r Ruty] 1tmiru Construction was terminated and EWEI took over its con-
Section 1 of the Procedural Guidelines in the Canhct of Voluntary ractual obligation. NC granted EWEI extensions of time for the
Arbitration Proceedings provides, "T'he final arbitral disposition of termination of the project. Differences later arose which prompted
1suets submitted to voluntary arbitration is the Derision. The dispo. o RTC Lan@o Br. 6 praying essentially for
WEI to file civil case befre
sition may take the form of a dismissal of a claim or grant af s;eili the payments of P458,381.001 with interests from the time of delay;
remedy, either by way of prohibition of particular acts or specific per- the price adjustment as provided by P.D No 1584; und exemplary
formance of particular acts, Ln tbe latter case, th& decision is called damages in the amount o! r50,000 ad attorney's fees NS€ filed its
an \ward," ·nswer with counterclairn to the complnmts. Upon joint motion of
In herein rase, the Decision of the Panel was in the frm of the parties, the lower court dismissed the complaint and counter-
a dismissal of petitioner's complaint. Naturally, this dismissal was claim in view of the desire of both parties ta implement See. 18 of
contairod in the main decision and not in the dissenting opinion. the contract, providing tr o a resolution of ary conflict by arbitration.
Subsequently, the Arbitration Board was corposed and after hear
Thus, auder Section 6, Rule VII of the same guidelines imple. ings, rendered decision dirocting NSC to pay EWEI: (a.) P458,381.00
menting Article 262-A of thc Labor Code, this Disio, as a matter representing EWEI's last billing No. 16 with interest thereon at the
af course, would become final and executory after ten (10) calendar rate of 1-1/4% per month from January 1, 1985 to actual date of pay-
days from receipt of copies of the decision by the parties even without tent; (b.) 11,330,514.0 representing price escalation adjustment
receipt of the dissenting opinion unless, in the meantime, » motion under .D. No. 1594. with interest thereon at the rate of 1-1/4% per
fur reconsideration or petition tor review to the Court ot Appeals month from January 1, 19: to nctunl date of payment; (c.) r50.000
udor Rule 43 of the Rules of Court is filed within the sure 10-day as and for exemplary damages; (d.) P350,000 for attarney's fees,
period, Ag correctly pointed out by the Court of Appeals, a dissenting
and (d.) P35,000 for the cost of arbitration. RTC Br. 2, Tligan City
opinion ia nnt binding on the parties as it is a mere oxpression o f the affirmed and confirmed in toto the award of tbe Board af Arbitrators
individual view of the dissenting member from the conclusion held
Upon denial of the MR. NBC brought the case to SC via petition for
by the majority af the Court, following the ruling in Garia v. Perez
certiorari with prayer for preliminary injunction and 'TO
s riterated in Natin@] Union_of Workers ir_Hts,
Restaurants
and Allied Industries •NLRC.
ISSUE:
F'rescinding from the foregoing, the Court of Appeals Whether or not the lower court committed grave
correctly
dismissed the petition before it gs it no longer had ary appellate abuse of discretion in not vacating the award of the Board
jurisdiction to alter or nullify the decision of the Panel. T'he Panel's of Arbitrators.
Deeision bad become final and executory, hence, unchallengeable.
SUPREME COURT RULING:
11. NATIONAL STEEL CORPORATION V RTC
Tho lswer did not commit grave abuse of discretion in not
LANAO DEL NORTE
vacating tho awnrd ot the Board of Ab»tratars. It. should he stressed
BRANCH 2, ILIGAN CITY
that voluntary arbitrutors, by the nature of their functions, act in a
G.R. No. 127004, March 11, 1999 quasi-judicial capacity. As n rule, findings of facts by qunsi-judicial
FACTS: bodies, which have aequired expertise because their jurisdiction is
confined to specific matters, are accorded not only respert but even
Edward Willkom Enterprises, Inc. (EWEI) together with finality if they are supported by suhstantinl evidence, even if not
Ramiro Construction executed a Contract for Site
Developeut overwhelming or preponderant. As the petitioner las availed of Rule
with National Steel Corporation (NSC) whereby the former jointly 65, the Court will not review the facts found nor even of the law as
 It. Ai,IMA'Twt ; +'» 1RI;4
NI THI AMHWTRFW4 [Link]
t11I

interpreted or applied by the rblrtor unless tls·;uwsd error of

facts or of law re so patent and gross and prejudicial as tu around
呸l I'AXT IHI
lhuhsl l th itprtnu furl

to contrnetor [Link] within seven (7 days after completion of the

wctio tr city the objections thereto. NC failed to comply with
to a grave abuse of discretion or an excess de potuvoir on the part uf ·uch requirement, and therefore it would be unfair to refuse payment
to [WEL considering that tbe latter had faithfully submitted Final
the arbitrators.
Idling No. 16 believing thut its work had been completed because
In tho case at bar, NSC posited evident partiality in the assailed NSC did not ell its attention to any objectionable aspect of their
decision of he arbitrators n favor of FWEI and mistaken apprecin prujeet..
ion of facts and application of the law by the arbitrators as ground
The price escalation is likewise justified in accordance with the
far vacnting the award. As ruled in Adamson v. CA, proofs other than
enrdinnl rule in the interpretation of contracts that 'if the terms of a
mere inference are needed to establish evident partiality. Here, NS(
contract nre clear and leave no doubt upon the intention of the con-
merely averred evident partiality without any proof to back it up. NSC
tracting parties, the litoral moaning of its stipulations shall control"
was never deprived of the right to present evidence nor was there any
Also price esenlation is allowed under P.D. No. 1594. However,
showing that the board showed signs of any lias in favor of EWEL the I-1w4% interest rate per month frozn January 1, 1985 to actual
The derision must be sustained for it is n well-scrtled rule that the date of payment shall be changed to 6% per annum being the legal
actual findings of an administrative body should be affirmed if thero rate of interest. The award of exemplary damages are Likewise not
is substantiai evidenco to support them and the conclusions stated wnrranted considering that the requirements for the award of said
in the decision are rot clearly against the law and jurisprudence,
damages nre not present in the case nt bar. Attorney's fees are nlso
similar to the instant case. Henceforth, every reasonable intendmcnt not justified, it ia n conclusion without a premise, its basis being
will be indulged to give effect sch proceedings and in favor of the
Improperly left tu speculation and conjecture.
regulatory and integrity of the arbitrators' act.
The ground of mistaken appreciation of' tacts and lw of the 12. DEL MONTE CORPORATION-USA V CA
case is likewise not meritorious. NSC failed to prove that there was G.R. No. 136154, February 7, 2001
failure on he part of FWFI to complete the work agreed upon which
will determine whether Final Billing No. 16 can be made chargeable FACTS:
to the cost differential paid by NSC to another contractor. NSC ailed DMC-U8A entered into Distributorsbip Agreement with Mon-
to substantiate such allusion of completion by another contractor tebena Marketing. Inc. (MMI making the latter as the sole and
three unfinished items of works, actual quantities accomplished and exclusive distributor of the former's Del Monte products in the Phi-
unit cost diffrential
e paid chargeable against EWEI. 'There is no such lippines for a period of five years. Said agreement provides for an
report of mention of unfinhed work al £0,000MT of dumped riprap, arbitration clause. With the approval of DMC-USA, MMl appointed
100,000cu m of site grading and 300,{DX eu m of spreading common abrosa Foods, Ine. (SFI as its marketing arm. However, MMI, SI,
excavated materials in the EWEI contract alluded to by the NSC and MMTs Managing Director Liong Liong C Sy (Lily Sy) fled a
as unfinished work otherwise BWFI Hilling No. 16-Final would not complaint against DMC-USA, Paul E. Derby, Jr., Daniel Collins, ard
have passed processing for payment unless there is really no such Luis Hidulgo, and Dewey Ltd. hefore R'TC Melaban. The complaint
unfinished work NSC evaluation report with no adverse findings of ie prelienteri on Arts. 20, 21, and 23 of the Civil Code. 'The complain-
unfinished work consider the contract as completed. If at all, this ants alleged that DMC-USA products continued to be brought into
unfinished work may be additional/extra work awarded in 1984 to tbe country by parallel importers despite the appointment of MMI
nnother contractor at priwe higher thnn the uit price tendered by with the Distributorship Agreement thereby causing them great em-
EWEI in 1982 nndior the discrepancy between actual quantities of barrussment and substantial damage, DMC-USA filed a motion to
work accomplished per plans versus estimated quantities of work suspend proceedings invoking the arbitration clause in the agroe-
covered hy separate contract as expansion of the original project. ment. The lowor court deferred to consider the same as the grounds
Moreover, under the contract. it is incumbent upon the owner to send alleged therein did not constitute the suspension of the proceedings
 PW'T IL +
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AND 'THE MI'TKN'TI~W t - rlelh 4le!it+ f'rt

considering that the action was tor dammge with pruyor for the i-- [.. on, ·Jr t luwval Realty Curportion, wheh supursueded that of
suance of' writ of preliminary attachment aud not an the Distributor- Toyota Mota Philippines Corp. u. Court ofAppeals.
ship Agreement 'The complainants fled Urgent Motion for Leave 1o fn Toyota, the Court ruled that [t/he contention that the
Admit tupplemental Pleading whieb the lower court [Link] · rltration clause has beeme dysfunctionsl because of the presence
the admission of the Supplemental Complaint, DMC-USA filed n ot third parties is untenable" ratiocinating tlat "[cjontracts are
[Link] adopting their motion to suspend proceedings. Upon rtsptend ns the law between the contracting parties und that lale
appeal to CA, the appellate court at~irmd the trial court'e ruling uch, the parties are theroby expected to abide with good faith in
on the ground that the interpretation of Art. 2I would require a full their contractual commitments." However, in Salas, hr. orly parties
blown trii making arbitration out of the question. Hence, the case ta the Agreement, their nssigns or heirs have the right to nrtitrate or
reached the SC via petition for certiorari. vuuld be compelled to arbitrate 'The Court went further hy derlrinp
that in recognizing the right af' the contracting parties w arbitrate tr
ISSUE: to compel arbitration, the splitting of the proceedings to arbitration
Whether or not the parties in the case at bar can be as ta some of the parties on one hand and trial fur the others on the
compelled to submit their disputes to arbitration. other hand, pr tho suspension of trial pending arbitration between
same of the parties, should not be allowed as it would, in effect. result
SUPREME COURTS RULING: in multiplicity of sits, duplicitous procedure and unnecessary del

No, the pnrtie in the case at bar cannot be compelled tu submit 'The object of arbitration is to allow the expeditious determinu-
their disputes tu arbitration. Thongh, a careful xaminntion af the ion of n diaputo, C'early, the iasue hnfore us could not be speedily
instant case shows that the arbitration clause in the Distributorship ad efficiently resolved in its entirety if we allow simultaneous arbi-
Agreement between DMC-USA and MMI is valid and the dispute tration proceedings and trial, or suspension of trial pending arbitra-
is arbitreble, the parties in this ease cannot bu compelled to utilize Lion. Accordingly, the interest of justicr would only be served if the
such provison. 'I'he Agreement borwean petitioner DMC USA and trial court hears und adjudicates the care in a single and complete
private respondent MMI is a contract. The provision to submit to proceeding.
arbitration any dispure arising therefrom and the relationship of the
parties is part ot that contract and is itself a contract. 18 a rule, NOTE:
contracts re respected s the law between the contracting parties T'here is no doubt that arbitration is valid and constitutional
and produce effect as between therm, their assigns and hoirs Clearly, ir our jurisdiction. Even before the enactment of RA. No. 876, the
only parties tu the Agreement, i.e., petitioners DMC-USA and its Court has countenanced the settlement of disputes through arhi-
Managing Director far Export Sales Paul E. Derby, Jr., nnd private tration. Unless the agreement ie such as absolutely to cloee the douts
respondent MMI and its Nanaging Iirecur LILY SY are bound of the rourts aginst the parties, which agreemeni. would he void,
by the Agreement and its arbitration clause as they are the only the courts will luok with favor upon such nicable arrangement
signatories thereto. Ptitianers Daniel Collins an Luis Hidalgo, and and will only interfere with great reluctance to anticipate or nullify
private respondent SFI, not parties to tho Agreement and cunnot the action of the arbitrator. Moreover. as R.A. No. 78 expressly
even be considered nsaigns or heirs of the parties, nre not bound hy the authorizes arbitration of comestir disputes, foreign arbitration as
Agreement and the arbitration clause therein. Consequently, referral a sy9tem of settling commerciul disputes was likowise recognized
to arbitration in the State of California pursuant to the arbitration when the Philippines adherer! to the United Natins "Convention on
clause and the suspension of the proceedings in Civil Case No, 2637- the Recognition and the Enforcement of Foreign Arbitral Awords of
MN ponding the return of the arbitral award could be called for but 1958" under the 10 Mas 1965 Resolution No. 71 of the Philippine
only as ta petitionerg DMC'.USA umnd Paul E. Derby, Jr, and private Senate, giving reciprocal recognition nnd allowng enforcement of
respondents MMI and LILY SY, and not as to the other parties in international arbitration agreements between parties of different
I
this case. Thia is consistent with the rerent case of Heirs of Augusto I nationalities within n contracting state.
t

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13. JORGE GONZALES AND PANEL OF ARBIIRAIORS V IsSUF:

CLIMAX MINING LTD., ET AL Whether or not the arbitration clause (Clause 19.1)is
G.R. No. 161957, January 22, 2007 separable from the main contract (Addendum Contraet).

FACTS: SUPREME COURTS RULING:

This ease was consolidated in G.R. No, 167994, Jorge Gonzales The arbitration clause (Clause 19.1) is separable from the maim
v ·Judge Oser Pimentel of RTC Br. 148 ofMakat City. Both cases contract (Addendum Contract). Implicit in the summary nature of
rooted in the sme dispute Addendum Contract entered into by both the judicial proceedings is thc scparable or independent character
parties. In GR. No. 161957, the Court held that the DENR Pane! of of the arbitration clutee or agreement 'The doctrine of separability,
Arbitrators had no jurisdiction over the complaint for the annulment or severability as other writers call it, enunciates that an arbitra
of the Addendum Contract on grounds of fraud and violation of the tion agreement is independent of the main contract. The arbitration
Constitutiun and that the netion should have boon brought before agreement is to he treated as a separate agreement and the arbitra-
the regular courts as it involved judicial isues. Both parties file&d tion agreement does not automatically terminate when the contract
an MR. Clrax Mining Ltd., et al. filed their Motion fo» Partial of which it is part romcs to nn end. The separability of the arbitration
Reconsideration and/r Clarification seeking reconsideration of that agreement is especially significant ta the determination of whether
part of the Decision holding that the case should not be brought for the invalidity of the main contract also nullities the arbitration
arbitration under RR.A. N. 876 also known as the arbitration law. clause. Indeed, the doctrine denotes that the invalidity of the main
Climax Mining Ltd.. et al.. citing American jurisprudence and the contract, also referred tu as the "container" contract, does not affect
UNCITRAL Model Law, argue that the arbitration clause in the the validity of the arbitration agreement. Irrespective of the fact thnt
Addendum Contraet shculd be trented as an agreement independeut the main onntrnct is invnlid, the arbitration clause'agreement still
of the other terms of the contract, and that a claimed rescission remains valid and enforceable. 'The separability of the nrhitration
of' the main contract does not avoid the duty to arbitrate. Climax clause is confirmed in Art. 16(1) of the UNCITRAL Model Law and
Mining Ltd., et al add that Gonzales's argument relating to the Art. 21(2 of the UNCIIRAL Arbitration Rules.
alleged invalidity of the Addendum Contract still has ta be provon
nnd adjudicated on in a proper proceeding; that i=, an action separate
NOTE:
trom tho motion ta compel arbitration Pending judgment in such
sepurate nctior, the Addendum Contract remains valid nnd binding The case was re-raffled to the sala af Judge Pimentel from the
nnd so does the arbitration clause therein. Climax Mining Ltd., et sala Judge Benito at the instance af Climax-Amrico @due to the ab-
al. add that the holding in the Decision that the case should ot sence of the cold neutrality of an impartial judge.
be brought under the ambit of the Arbitration Lawappears to be This brings us bark to CR. No. 16195. The ndjudication oftho
prernised on Gonzales's having "impugned the existence or validity"
petition in G.R. No. 167984 effectively modifies part of the Decision
of the addendum contract. If so, it supposedly convesy the idea that
dated 28 February 2005 in GR. No. 161957. Hence, we now hold that
Gonzales's unilateral repudiation of the contrut or mere allegation
the validity of the cantrart containing the agreement to submit to
of iis invalidity is all it takes to avoid arbitration. Hence, respondents
arbitration does not affect the applicability af the arbitration cluse
sabmit that the curt'a holding that "the case should not be brought
itself, A contrary ruling would suggest that a party's mere repudiation
under the nmbit of the Arbitration Law" be understood or clarified
a3 operative only where the challenge to the arbitration agreement of the main contract is sufficient to avoid arbitration. 'That is exactly
has been sustained by final judgment. GR. No 167994 is a Rulo the situatinn that. the separability doctrine as well as jurisprudence
65 petition flod while MR ir the other cane is pending wherein applying it, secks to avoid. We add thut when it was declared in [Link].
Garzales challenged the orders of the RTC requiring him to proceed No. 161957 that. the case should not he brought for arbitration, it
should be clarified that the case referred to is the case actually filed
with the arbitration proceedings as sought hy Climax-ArimcoMining
Corporation (Climax-Arimco) by Gonzales before the DENR Panel of Arbitrators, which was for

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the nullification of the main contract on the ground l' tr«l, as it I'e tr! sat lied Sl's mtion for reconsideration and ordered
had already been determined that the case should have hen Fraught it to file its respanive pleading. Instead of filing an nnwer, PI fled
before the regular courts involving as it did judicial issue pw1ition for certiorari under Rule 65, wbich the Court of Appeal.
We address the Rule 6 petition in G. Na. 167994 fr. from the lrnhly acted upon. In n petition for review before this Court, B
remedial law perspective. It deserves to be dismissed on procedural ('arporation alleged, among others, that the Court ot Appeals should
grounds, as it was filed in lieu of appeal which is the prescrihed remedy have ds i missed the petition for certiorari since the order of the trial
and at that far beyond the reglementary period. It is elementary in court denying the motion to suspend proceedings "is a resolution
remedinl law that. the use of an erroneous mode of nppesl is cause of an incident on the merits and upon the continuation of the
fur dismissal of the petition for certiorari and it hns been repeatedly proceedings, the trial court would evcntually render decision cn
&tressed that n petition for certiorari is not a substitt for lost the merits. which decision could then be elevated to n higher court
ppei. As its nature, a petition for certiorari lies only where tiere 'in nn ordinary appeal,"
is "n appeal," and "na plain, speedy and adequate remedy in the
ordinary course of law." 'The Arbitration Law specifiea!ly provides 14. OIL AND NATURAL GAS COMMISSION V. CA
Ir an uppenl by certiorari i.e., a petition for review unde certiorari AND PACIFIC CEMENT COMPANY, INC.
urder Rule 45 f the Rules of Court that raises pure aw s af
law. 'There is no merit to Gonzales'a argument that the use of the G.. No. 114323, July 23, 1998
permissive term may in Section '2, R.A, No. 87G in the fiiing of FACTS:
appends does not prohibit nor discount the tiling of a petition for
certiorari under Rule 65. Proper interpretation of' the aforesaid Foreign corporation, Oil and Natural Gas Commission (ONGC)
mrovision of law shows that the torm "mny" rafers only to the filing of entered into a contract with the local corporation, Pacific Cement
au appeal, not to the mode of review to be employed. Indeed, the &o Company, Ine. (PCCI whereby the latter undertook to supply the
of "may" merely reiterates the principle that the right to eppeal is frmer
o 4300 metric tone of oil well cement In considration
e thereof
not part of due procos of lw but is a mere stututory privilege to be ONG( bound itself to pay PCCI the amount of $477,300 by opening
exercised only in the manner and in accordance with law an irrevocable, divisible, aud confirmed lettor of eredit in fvor of the
latter. However, due to dispute between PC'CI and the shipowner
Neither can BF Corporation v. Court of Appeals cited by Gcnzales MV Surutana Nava, the oil well cement to be delivered to Bombay
support his thenry, Gonzales argues that Eid case recognized and and Calcutta, India was held up in Bangkok and did not reach its
lowed a petition for certiorari under Rule +: "appealing the order point of destination. Despite the fart that PCCI had already received
of the Regional Trial Court disregarding; the arbitration agreement payment and despite several demands, PCCI failed to deliver the ail
a8 an acceptable remedy." The BF Corporation case had itsorigins in well cement. After negotiations betwaen the parties, it was ngreed
a complaint fro collection of sum of money filed by therein petitioner that PCCI will replace the 4300 metric tons of oil well ement with
BF Corporation against Shangri-la Properties, Ine. (SPI, Pi moved Class G cement cost free, However, upor inspection, the Class G did
to suspend the preeedin> alleging that the construction agreement nat conform to the ONGC's specifications. ONGC informed PCCI
or the Articles of Agreement. between the parties contained a clause that it wll refer its claim to an arbitrator pursuant t Clause 16 of
requiring prior resort to arbitration before judicial intervention. The the contract The arbitrator resolved the dispute in favor of ONGC.
trial esurt found that an arbitration elsuse was incorporated in the To execute tho arbitrator's award, ONG€ fled a petition befora the
Conditions of Contract appended to and deemed an integral part of Court of Civil Judge in Dehra Dun praying that the arbitrator's
the Articles of Agreement. Still, the trial court denied the motion to decision be made the "Rule of Court" in India The foregn court
suspend proceedings upon a finding that the Conditions of Contract notified PCCI Lo file its objections and pay the necessary fling fees so
were not «duly executed and signed by the parties. The trial court that the objections will be considered. P€CI President Jose C'ortes,
also fouud that SPI hnd fniled tu le any written notice ot demand Jr wrote the freign
o court inquiring about the amount of the fling
for arbitration within the period specified in the arbitration clause. fees. Without responding to the PCCT's query, the foreign did not

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consider PCCl' objections and ruled in fvor

u of ON«(:, twspite notier
hold ;rrtua only to mntters involving the technical aspects of the
af the order and several demands, PCCI refused t comply with
runtract i But a logical inference cnnsideriug that. the underlying
the decision, Hence, GNGC filed a complaint for the enforcement
trpose of a referral to nrbitration is for such technical matters to be
of foreign judgment before RTC Br. 30, Surigao City. PCCI moved
deliberated upon by person possessed with the required skill wnd
to dismiss the complaint. The lower couut ruled in favor of PC
expertise which ma be otherwise absent in the regular courts.
Upon appeal. the CA affhrmed lower court's decision. Hence, the case
reached the sC. " Also, if non-delivery of the ail well cement will he included
within the arbitration clause, ir will render nugatory Clause 15 which
ISSUES: says, All questions. disputes, difforancos, arising under out of or in
connection with this supply order, shall be subject to the excisive
1, Whether or not the non delivery of the oil welt cement
jurisdiction of the court, within the local limits of whose jurisdiction
is within the ambit of the arbitration clause (Clause
16). and the place from which this supply order is situated." Thus, viola-
ting the canon of construction that in interpreting a statute (or a
2. Whether or not non-compliance of Claes G cement contract as in this case). care should be taken that every part thereof
with ONGC's specifications is within the ambit of be given effect, on the theory that it was enacted ns nn integrated
arbitration clause (Clause 16), meaaue and not as a hodge-podge of conflicting provisions The
3. Whether or not the foreign judgment can be recog- rule is that a construction that. would render a provision inoperative
nized in this jurisdiction. should be avoided; instead, apparently inconsistent provisionsbould
he reconciled whenever possible as parts of s coordinated and harmo-
SUPREME COURTS RULING: nious wholo.

I. No, the non-delivery of he oil well cement is within the 2. Yes, non-compliance of the Class G cement with the
ambit of the arbitration clause (Clnse 16). First, applying the gram 0)NGU's specifications is within the ambit of the arbitration cinuse
matical rules of construction, ONGC has misquoted the phrase in following the ruling in the first issue.
Clause 16, shrewdly inserting a comma between the wards supply 3. Yes, foreign judgment can be enfored in this jurisdiction.
order'contract!' and "design" where none actually exists. It is thus T'he recognition tu be accorded a foreign judgment is not necessarily
clear that to fall within the purview of this phrase, the "claim. right or affected by the fact that the procedure in the courts of the country
tbing whatsoever" must arise out of or relate to the design, drawing, in which such judgment was rendered differs from that. of the courts
specification, or instruction of the supply order/conrct. Likewise, of the country in which the judgment is relied on. This Court has
applying the principles of-nascirur a soriis. it reveals that Clue 16 held that. mutters of' remedy und pracelure are governed hy the lex
covers three (8) matters: (l.) allquestions and disputes, relating to jpri or the internal law of' the forum. 'T'hue, if under the procedural
the meaning of the specification designs, drawings and instructions Kies 6rrh& fiviCount'? Tera Dun, India, a valid judgment may
herein before mentioned and as to quality of workmanship of the be rendered by adopting the arbitrator findinge, then the same
items ordered; (2.)yy other right gr thing [Link]-
question, claim, must be acgmnrded respect. In the same vein, if the procedure in the
ever, In uy way arising out of or relating to the supply order/contract foreign court mandates that an Order of the Court becomes final and
design, drawing, specification, instruction or these conditions; snd exerutory upon failure to py the necessnry docket fees, then the
(3.) otherwise concerning the materials or the execution or failure courts in this jurisdiction cannot invalidate the oruder of the foreign
e xecute the same iring stipulated/extended period or after the court. simply because our rules provide otherwiae.
completion/abandonment thereof. Thus, the nan-delivery of the oil
well cement is definitely not in the nature of a dispute arising from NOTE:
the failure to execute the suppiy order/contract design, drawing, 'The constitutional mandate that no derision shall be rendered
Instructions, specifications or qulty of the mnteriuls. 'That Clause 16
by any court without expressing therein clearly and distinctly tle
 THE ALTERNATIVE DISPLTE RESOLUTION
ANDY 'TIH ARBITRATION LAW 7AT III 251
Cnsea Doridsel by the apreue Court

facts and the law on which it is based does nat preclude the validity
of "memorandum decisions' which adopt by reference the findings
delays in the conpition of the phases permeated the MRiV Project
due to the submission of deficient documents as well as intervening
of fact. nnd conclusions of iaw contained in the decisions of inferior
i-sue regarding BCA'PPCs supposed financial incapacity tu fully
tribunals.
implement the project. BCA contends that the DFA failed to perform
irg reciprocal oblgation to issue to BCA a Certificate of Acceptance of
15. DFA AND BSP V HON. FRANCO T. FALCON, PRESIDING
Phase l within 14 working days of operation purportedlrequired by
JUDGE OF RTC BR. 71 OF PASIG CITY
Section 14.0 of the Amended BOT Agreement. BCA bewailed that
G.R. NO. 176657, September 1, 2010 it took almost three years for the DFA to issue the said Certificate
allegedly because every appointee tu the position of DA Secretary
FACTS: wanted to review the award of the projcct to BCA. HCA further alleged
In line with the DFA's mandate o improve the passport and that it was the DFA's refusal to approve the location of tbe DFA
i val of its
visa issuance system, as well as the storage and retre ('antral Facility which prevented BRCA from proceeding with Phase 2
related application recorda, and pursuant to our government's f the MHP'V Project. After getting an opinion from DO.J regarding
International Civil Aviation Organization's (ICA0) commitments, the matter, DA required BCA ta submit documents which will show
rhe DFA secured the approval of the President of the Philippines ts financil capacity to implement the project, BC terminated the
as Chairman of the Board of NEDA for the implementtton of the Assignment Agreement with PPE and notified DF'A that it would
Machine Readable Passport and Visa Project. (MRIV Project) under directly implement the MRP/' Project. Thereafter DFA terminated
the Build-Operate-and-Transfer (BOT) scheme, provided far by R.A. the agreement with BCA nd PP€ via Notice of Termination. BOA
No. 6957 as amended by IR.A. No. 7718 (OT Law) and its IRR. Thus, et a letter to D)FA asking the latter tu reconsider its previous
twrnnation When DEA fi a led to respond, BCA sent a Notice af
PAC published an invitation to pre-qualify and bid far the supply
of the needed machine readable passports rd viass, and conducted Default. BCA's request for mutual discussion under section 19.01 of
the Amended BOT Agreement was purportedly ignored by the DFA
p,ihli<: [Link]' the1VIRPJ'V Prujert. 8CJ\ lntemauowtl Corx,oration
was among those who pre-qualified and submitted its technical and J: and left the dispute unresolved through amicable means within 90
financial proposals. PBAC found CA as the sale complying bidder days. As a result, BHCA fled request fur arbitration with Philippine
ad permitted DFA to engage in direct negotiations with HCA PBA( ! Dispute Resolution Center, Inc. (PDCi) pursuant to Section 19.02
al' the Ameuded BOT Agreement. PDRC'I requeeted DFA to submit
also recommended to DF Secrety to award the MP/Project to its nnswer and requested both parties to nominate thoir chosen
BCA on BOT arrangement, In compliance with th Noice of Award '
arbitrator, The DFA declined the request for arbitration stating
and Section 11.3, Rule 11 of the BOT Law, BC± incorporated with
that there was no mention of specific body in the arbitration clause
Philippine Passport Corporation (PPC) to undertake and implement
theMRP/V Project. Thereafter, BO'T' Agreement was signcd by DFA
al arbitration +hold be done before the ad hc arbitration body.
(Acting Secretary Lauro Baj Jr.} and PPC (President Bonifacio
h aexordunce with the opinion of the DOI again sought by DF A,
he latter and the BP entered into a MO for the latter to provide
Sumbilla). Subsequently, DFA Sac Teofisto Guingon and Sumbilla
Ihw former passports compliant with international standards. BS
as BCA President signed an Amended OT Agreement with the
lieited bids for the supply delivery. installation and commissioning
conformity of PP€ in order to reflect the change in the designation
of a system for thw production of Electronic Passport Booklets or
of the parties and ta harmonize Secton 11. with Section II8 of + lusspurts. On the hwy that th e-Passpurt will veplee MRP'V
the IRR of the BOT Law The two agreements contain substantially
'roject Jenee, mh mos It'A's remedies, BCA flo a petition
the same provisions except for even ndditiann! paragraphs in
lir interim rvhef' for. the W'Te Ir, TI Pasi City presided by
the whereas clauses and twa new prviion Section !+,0'
lu«de F'less punt to; t '/ f \H Aet ol 2604, DPA filed
on Performance nd Warrant, vrits al Sectiu 0).1! on
mn qpwlu ln th pleat l 'I'IR4 mntd npplieaiun r writ
Miscellaneous Provisins 'Therits DEA d It'A impute hrnrh
if' pr·linmr » ttf tut lhul Ih tw pus+l:t nre wl th
uf the· nenll Ii']'\eye wnl mu! ·ne lolls I]'\ tt. 1ht
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the parties oral arguments, the lower court isuwl th 'It) against Z Yes, an itesim measuro s allowad before the constitution
DFA and BS. 'The lower court also granted tho application for writ of f' an arbitral tribunal. 'This is pursuant to Secion 2 or ADR Act of
preliminary injunction. The DA and BSP invoked SC's jurisdiction 2004, The relief may be granted: (a.) tu prvnt irreparable loss or
via Petition for Certiorari and Prohibition under Rule 65 Injury; (b.) to provide security fur the perfrmance
o of any obligation;
te.) to produce or preserve any evidence; and (c.) to compel any other
ISSUES:
appropriate act or omission.
1. Whether or not the e-Passport Project is within the 3, No, the granting of the lower of the interim relief n the
ambit R.A. Na. 8975 prohibiting lower courts to issue casc nt bar i not prper. BCA will suffer no grave and irreparable
TO.
injury so as to justify the injunctive relief. The BOT Law as amended
2. Whether or not an interim measure is allowed before by RA. No. 7718 as well as the amended BOT agreement lay down the
the constitution of an arbitral tribunal. mensure of compensation to be paid under the appropriate circum-
stances. 'Thus, the requisite that to he entitled to injunctive relief,
• Whether or not the granting of the lower of the inte- the party seeking such relief must be able to show grave, irreparable
rim relief in the case at bar is proper. injury that is not capable of compensation, is wanting in this cnse.
Likewise, the only circumstance under which a court may grant
SUPREME COURTS RULING:
injunctive relicf is teh existence of a matter of extrme urgency
1. 'The ePassport Project is nut within the ambit of R.A No, involving a constitutional issue, @uch that anless a TRO or injunctive
975 prohibiting lower courts to issue TO. In ruling in this issue, the writ is issued. grave injustice nnd irreparable injury will result
SC harmonized the provisions of R.A No. 8975, BOT Law, an& R.A lowever. BC failed to demonstrate that there is a vunstitutiorl
No. 911 (Government Procurement Reform Act). Linder the BO'T is3u involved in this case, much less a constitutional issue of extreme
Law, wherein the project are to be privately funded. the entire infor- urgency. Thus, the trial court's issuance of a writ of preliminary
ration technology project, including the civil work component and iujunction despite lack of sufficient legal justification for tbe same. is
tantamount to grave abuse of discretion.
he technological aspect thereof, is considered an infrastructure or
development projrt and treated similarly as traditional "infrastruc.
NOTE:
turc" projects. Under A. No. 9184, which contemplates projects
ta be funded by publie funds, the term "infrastructure project" was During the pendeney of this case, PDRCI Case No. 30-2006¢
limited to only the "civil works component" of information technology BGF was dismissed by PDRCI for lack of jurisdiction in view of the
projects. The non-civil works component of information technology lack of agreement between parties to arbitrate before PDRC}, 'Thus,
projects would be treated as an acquisition of goods or consulting the dismissal of the principal action results ta the denial of the writ.
services a the case may be. DF and BSP presented no proof that
the e-Passport Project. was a BOT Project On the contrary, evidence 16. KOREA TECHNOLOGIES CO., LTD. (KOGIES) V
adduced by both sides tended to show tbat the e-Passport Project HON. ALBERTO A. LERMA, PRESIDING JUDGE OF BR. 256,
wns a procurement contract under R.A. No. 9184. Thus, only the civil RTC MUNTINLUPA
works componont uf the e-Passport Project would be considered G.R. No. 143581, January 7, 2008
infrastructure project that may not be the subject of the lower-court
issued writ of injunction under R.A. No. 8975. Likewise, it cannot also FACTS:
be considered servie contract since to be considered as such, DF'A KOGLES and Paci/ic General Seel Manufcturing
a Corporation
and BSI zuast show thnt the e-I'assport. Proipet is nn infrastructure (PGSMC) executod a Contract wherby thn former would set up an
project or necessarily related to an infrastructure project which the LPG Cylinder Manufacturing Plant in Carmona, Cavite. In Korea.
DFA and BSP filed to do the parties executed an Amendment for Contract No. KLP-970301
amending the terms of payment. 'The contract and its amendment
 'THE AU'EN'TIN, III'TE Rt Te1 Ai il
ANI HI AMT'TN 1M ' rs Ihevlel hv l pr· rt 'rt
etpulated that KOGIES will ship tho maehwry ud facilities
necessary fre manufacturing LPG cylinders for which !GMC would L. Whether or not the arbitration clause in the cuse at
pay USD 1,224,000. KOGLES would install and initiate the operation bar is against public policy.
of the plant for which PMC bound itself to pay USD 306,000 upon
the plant producton of the 11 kg. LPG cylinder smples. Thus, the Whether or not the stipulation in the arbitration
total contract price mounted to UD 1,530),000. Thereafter, PGSMC clause that foreign urbitral award shall be final and
entered into a Contract of Lease with Worth Properties, Ine tra binding ousts the courts ofjurisdiction.
use of the later's property to house the LPG manufacturing plant.
Subsequently. the machineries, equipment, and facilities for the SUPREME COURTS RULING:
mounufucture of LPG cylinders were shipped, delivered, and installed I. Ihe rbtration clause in the case at bar is mot ngainst
in the Carmona plant PGSMC paid KOGIES USD 1,224,000. public pohc. Established in this jurisdiction is the rule that the law
However, gleaned from the Certifieute issued by tho parties, after af the place where the contract is made governs. Lex lomi contrae
the installation of the plant, the initial operation could not he ts. 'The cortract in this case was perfected here in the Philippines.
conducted as PGSMC encountered financial difficulties affecting the Therefore, our laws ought to govern, Nonetheless, Article 2044 of the
supply of materials, thus, forcing the parties to agree that K~GIES Civil Code sanctions tho validity of mutually agreed arbitra clause
would be deemed to have completely complied with the terms and or the finality and binding effect of an arbitrnl award. Article 2041
canditors of the Contract. For the remaining balance of $3306,000, provides, "Any stipulation thut the arbitrators' award or deci-
PGM€ issued tw post-dated chocka. When KOGIES deposited the 6ion shall be final, is valid, without prejudice to Articles 2038,
checks, the same was dishonored for reason payment sopped. Thus, 2039 and 2010." Articles 2088, 20398, and 2040 abovecitd refer to in-
KOGA'ts sent a demand letter to PGSMC with a thrent of criminal stances where a compromise or an arbitrnl award, as applied to Art,
cTon of BP 2! in case of non-payment. PGSMC replied that the 2044 pursuant to Art. 20143, may bo voided, rescinded. or annulled,
cherks were fully funded but payment stopped for reasons previously but these would not denigrate the finality at the arbitralaward. The
known ta KOGIES. PGSMC informed KOGIES that PGSMC was arbitration clause was mutually and voluntarily agreed upon hy the
canceling their Contract on the ground that KOGIES had altered the parties, li has not been shown to be contrary ta any Jaw, or aguunst
quantity ant lowered the quality of the machineries and equipment morals, good customs, publie «rder, or public policy. 'There hna been
it delivered to PGSMC, and that PGSMC would dismantle and no showing that the parties have not dealt with each other on euual
transfer the machineries, equipment, and facilities installed in the We find no reason wh y the arbitration clause should not be
foting.
o
Carmona plant. Five days later, PGSMC led before the Offlee of the respected and complied with b yboth parties. In Gonzales v, Climax
Public Prosecutor an Affidavit-Complaint for staf adocketed as IS.
Mining Ltd., we held tlat subnssicn to arbitration is a vontract anr
No, 96-033813 against Mr. Dae Hyun Kang, President of KOGTES. that a clause in a contract providing that all matters in dispute he-
KOGIES informed PGSMC that the latter cannot do the same and tween the parties shall be referred to arbitration is a contract. gain
insisted that their disputes should be settled by arbti ration pursuant in DelMonte Corporation-USA v. Court of Appeals, we likewise ruled
to Article 15 of the Contract. PGSMC reiterated its stnd. Hence. that "[tJhe provision to vubwit to arbitration any dispute ring
KO6TES [Link] an Application for Arbitration before he Korean therefror and the relationship of the parties is part of that contract
Commercial Arbitration Board (KCAB) in Seoul, Korea. 'Thereafter,
KOGIES filed a complaint for specific performance against PGSMC
and is itself a contract."'
before RTt Muntirlupa BR 256. 'The lower court issued a TO. T'be arbitration clause which stipulates tht the arbitration
PGSMC opposed the I'RO on the ground that the arbitration clause must be done in Seoul, Korea in accordree with he Commercial
was null nnd void for being against public policy as it ousts the local Arbitration Rules of hn KCAB, and that the arbitrnl award is final
courts of jurisdiction over the instant controversy The lower court and binding, is not contrary to public pohey. 'This Court has sanctioned
ruled in favor of PGSMC which was affirmed by CA. Thus, the case the validity of arbitration clauses in a cutena af cases. In the 1957
reached the SC via petition for review an certiorari under Rule 45 case of' Eastbard Navigation Lad. v. Jan smael and Co.. Int..

i
 Ii LT#H' Di'+ +MAT« PH'lT IHI
ANI ME. AMITUT'IAN [Link] t'tea weeded I tle prime +rt

this Court had ocuaion to rule that an arbitration clause to resolvu duet+d hies- through telephone calls and facsimile or telecopy
differences and brenches of mutually ngreel contractunl terms is transmissions, Sisangyong would send the pro frma invoices
valid la BF Corporation v. Cort of Appeals, we held that [i] thi containing the details of the steel product order to MC; if tho latter
jurisdicton, arbitration has beer held valid and constitutional. Even conforms thereto, its representative affixos his signature on the
before the pproval on June 19, 1953 of R.A. No. 876, this Court bhns taxed copy and sends it back to Ssangyong, again by fax. >sangyo1g
countenanced the settlement of disputes through arbitration. R.A. Manila Office sant, hy fax, a letter addressed to Gregory Chan,
No. 57@ wnR adopted to supplement the New Civil Code's provisions
MCC Manager and also President o f Sanyo Seiki Stainless Steel
on nrbirnfion
Corporation to confirm MCC's and Sanyo Seiki's order cf 220 MT of
• No, the stipulation in the arbitration clause that foreign hot rolled stainless steel under a preferential rate of $1,860 per MT.
arbitral award shall be final and binding does not oust the courts Chan on behalf' of the corporations assented and atfxed his signnture
of jurisdiction. It is because RA. No. 92&5 which incorporated the on the confarme portion af the letter. Tie cones where MCC met
UNCITRAL Model Law and should be given retroactive effect being financial difficulty. Hence, its previous order of 2U M'T of steel was
remedial in nature provides on how to enforce a foreign arbitral split into two, one for 110MT covered by Pro-Forma Ivwwice No. ST2
award in thin jurisdiction. These are as follows: (a.) The RTC must POSTS0401 I and another for 110 MT cavered by ST POSTS0401-2.
refre to nrbitration in proper cses; (b.) Foreign arbitrul awards must 'The splitting was because MCC could open only a partial letter of
he confirmed by tho TC When cofirmed hy the RTC, it is deemed credit. Despite sevoral letters of demand and granting of extensions,
not as a judgment of the foreign court but as a foreign srbitral award MCC was unable to open its second and last letter of credit. Hence,
and enforced as final and executory decisions of our courts af law; (c.) Ssangyong through counsel wrote a lettor to MCC cancelling the
PT'has jurisdiction to review foreign arbitral awards; (d.) Grounds sales contract under ST2-POSTS0401-1 and ST2-POE'TS0401-2 and
for judicial roview different in domestic (Section 25 of' R.A. No. 876) lemanding payment of $97.317.37 representing losses, warehousing
ad foreign arbitral awards «Art 34j2] of the UNCI'TRAI, Model expenses, interests and charges. Thereafter, Ssangyong filed a civil
Law); (e.) TC decision of assailed foreign arbitral award appealable. action for damages due to breach of contract against MCC, Sanyo
Seiki and Gregory Chan before RTC Mkati. Ssngvong alleged that
OTE:
defendants breached their contract when they refused to open the
Lnilnral rescission, improper and illeal. Having rulad that LC in the amount af US$170,000.00 fr the reraining 100MT of
the arbitration clause of the subject contract is valid and binding on steel under Pro Forma Invoice Nos. ST2 POSTS0401 1 and ST2-
the parties, and not contrary to public palicy; consequently, being POS'TS04012. After Ssanyong rested its case, defendants filed
bound to the contract of arbitration, a party may not unilaterally a Demurrer to Evidence alleging that the original copies af the
rescind or terminate the contract for whatever cause without first pro fnrma invoices on which the civil action was based wero not
resorting to arbitration. presented. The lower court denied the same stating the documentary
R'I'C has interim juriedietion to protect the rights of' the parties evidence was already admitted and its admissibility finds support
under Section 28 of R.A. No. 9285 and Article17(2) of the UNCITRAL in R.A No. 79 (Electronic Commerce Aet of 200(). Alter trial. the
Model Law on 1CA. lower court rendered decision if favor of Ssangyong, Upon appeal,
the CA affirmed rhe trial court's ruling but absolved Gregory Ghan
17. MCC INDUSTRIAL SALES CORPORATION V. from liability. Hence. the case reached SC via petition for review on
SSANGYONG CORPORATION certiorar.

G.R. No. 170633, October 17, 2007 ISSUE:

FACTS: Whether or not the photocopies of facsimile printouts
One of the suppliers of MCC in its business of importing and of Pro Forma Invoice Nos. ST-POSTS0401-
2 and ST2-
wholesaling stainles steel products is the Ssangyong. They con- POSTS0401-2 ore within the coverage af R.A. No. 8792.

2g
 '
'I AI'TERN'TI EI 'n +flt virr pt
NM 'TH, HIW'I; 4HJMI w I'un le tat hrw ti· pres t'rt

SUPREME COURT'S ULLNG: change (BJ, etetronie natl, telegram, telexor telecopy." 'The inclu
The photocopies of facsimile printouts of Pro Forma Invoiee -ion of this pbrse mn the IRR offends a hnsie tenet in tho exercise
f the rule-making power of administrative agnwies. After all, the
Nos. SP-POTS4(1-1 and T2-POST401-2 are not. within
the coverage of R.A. No. 8792. Hence, it cnnnar be considered a power of administrative officials to promulgate rules in the imple-
electronic evidence. It is not the functional equivalent of an original mnentaon of a statute is necesal limited to what is found in the
under the Best Fvidence Rule and is not admissible as electronic legislative enactment itself. The implementing rules and regulations
evidence. A perusal of the doliburutions in the «rafting of .A No. of a law cannot extend the law or expand its coverage, as the power
8792 patiuiarl the ndoptal f Sen, Miriam Dufensor-Santingo to nmend or repeal a statute ia vested in the Legislature. Thus, if a
which cre adopted in the law will lead to a conclusion that when discrepancy occurs between the basic law and an implementing rule
Congress formulated the term "electronic data message it intended or regulation, it is the former that prevails, because the law cannot
the sume meaning ns the term electronic record" in the Canada be broadened by a mere administrative issuancean administrative
Law, Thi construction of the term "electronic data message" which agency certainly connar amend an act of Congress, Had the Legisla-
excludes telexes or fxes, except computor-generated fnxes, is in ture ranally wanted ordinary fax transmissions to be covered by the
harmony with the Electronic Commerce law's focus on paperless mantle of the Electronic Commerce Act of 2000, it could have easily
commumientons and the "functional equivalent ppronch' that it lifted without hit of tntter the entire wordings of the UNCITRAL
espouses. In fct,
a the deliberations of tho Legislature re replete Model Law.
with discussions on paperless and digital transactions.
NOTE:
I an ordinary facsimile transmistun, there exits an original
paper-based information or data that is scanned, eent through a However, mn this cnse, even though the pro forma invoices in
phone line, and re-printed at the receiving end Be it noted tht in question are inadmissible, the S(' ruled that Ssanyong was able to
provo that there was a breach of contract on tbe part of MCC.
enacting the Electronic Commerce Act ot 2000, Congress intended
tirtuul or paperless writings to be the functional equivalent and to In an action for darages due to beach of a contract, it is
hve the ssme legal funetion as paper-based documents, Further, in essential that the claimant proves: (l) the existence of a perfected
a virtual or paperless environment, technically, there is no original contract, (2) the breach thereof by the other contracting party, and
copy to speak of, as all direct printouts of the virtual reality are the (3) tho damages which he/she sustained due to such breach. Actori
same, in all respects, and are considered as originals. Ineluctably, the incumbt onus probandi. 'The burden cf proof rests on the party who
law's definition of electronic data message," which, as aforesaid, is advances a proposition affirmatively. I other words, a plaintiff in a
interchangeable with "electronic document," could not bave included civil action must establish his case by a preponderance of evidence,
facsimile transmissions, which have an original paper-based copy that is, evidence that has greater weight, or is more convincing than
as sent and a paper-bused facsimile copy as reveied. 'These two that which is ot'fared in opposition ta it.
copies are distinct from ouch ather, and have different legal effects.
While Congress anticipated future developments in communications In general, contracts are perfected by mere consent, which is
and computer technology when it drafted the law, it excluded the manifested by the meeting of the offor and the acceptance upon the
early forms of technology, like wlegrapl, telex and telecopy (ox&opt thing and the cause which are to constitute the contract. 'The offer
computer-generated Laxes, which is a newer development as must be certain and the acceptance absolute. lhey are, moreover, obli-
compared to the ordinzry fax machine ta fax machine transmission'), gatory in whatever form they may have been entered into, provided
when it detined the term "[Link] data message all the essential requisites for their validity are present. Sale, being
a consensual contract, follows the general rule that it is perfected at
Cleal then, the IR «went beyond the parameters of the law the moment there is a meeting of the minds upon the thing which is
when it adopted verbatim tle UNIT'RAL Model Law'a dfinion of the object. of tho contract and upon the price, From that moment, the
data message," without considering the intention of Congress when parties may reciprocally demand performance, subject to the provi-
the latter deleted the phrase"but nut limited tu. electronic data inter- sions of the law governing the form of contract.

2
 I'1 IHI t
'I'IE MIRNA'T'IN DIST\T u.» 1u
NI 'TH MFHTK'TU 1,Aw ' ·n Aul-l hr, b· 'pr trl

The essential elements of a contract of al art: tl) voment st rems, inwlule the loss of profit which the seller would reasonably
meeting of the minds, that is, to ransfer ownership in exchange fut have mnde haul the transaction been carried out
the price, (22) object certain which is the subject matter of the contrawl The rules on offering of secondary evidence were also discussed
and (3) cause of the obligation which is established. n this case. The award of actual damages was changed to nominal
As to Pro Porma Invoice No. ST2-PO8TS080-2 (Exhibits 1-4 damages
and 2-C), which was certified by PCIBank ns a true copy of its orii-
nal, it was, in fact, petitioner MCC which introduced this document 18. MAGELLAN CAPITAL MANAGEMENT CORPORATION
in evidence Petitioner MCC paid for the order stated in this invoice. (MCMC) AND MAGELLAN CAPITAL HOLDINGS
Its admissibility, therefore. is not open to quostion. CORPORATION (MCHC) V. ROLANDO M. ZOSA
AND HON. JOSE P. SOBERANO, JR.
These invoices (ST2-POSTS0401, ST2-POSTS080-1 and ST2-
POSTS080-2), along with the other unchallenged documentary evi G.R. No. 129916, March 26, 2001
dence of' respondent Ssangyong, preponderate in favor of the claim FACTS:
that a cuntract of sale was perfected hy the pnriies
Under a management agreement, MCHC appointed MCMC as
'The logical chain of events, as gleaned from the evidence of both manager for the operation af its business and affairs. In accordance
parties, started with the petitioner and the respondent agreeing on with the management agreement, MGHC mnd MCMC entered an
the sale and purchase af pMT of stainless steel at U8$1,860.00 per employment agreement with Rolando Zosa designating the latter
MT. This initial contract was perfected. Later, as petitioner asked as President and CEO of MCHC. The employment agreement
for several extensions to pay, adjustments in the «delivery dates, and contains au arbitration clause which states inter alia that tho panel
discounts in the price as originally agreed, the parties slightly varied of three nrbitratars shall be designated by the Manager, Employee,
the terms af their contract, without necessarily nuvating it, to the and Corporation. Thereafter, the majority of the MCHC's Board
effect that the original order was reduced to 2200MT split into two of Directors decided not to re-elect Zoea as President and CEO of
deliveries, and the price discounted to U8$1,700 per MT Petitioner MCIC on account of loss of trust and confidence arising from alleged
however, paid only half of its obligation and tiled to open an LWC for violation of the resolution issued by MCHC's board of directors and
the other L~0MT. Notably, the conduct of both parties sufficiently non-completion clause of the employment agreement but elected
established the existence of g contract of sale, even if the writings him to a new position as MCHC's Vice Chairmar/Ghairman for New
of the parties, hecnuse of their contested admissibility, were not as Ventures Development. Subsequently, Zosn vesigmed from his new
explicit in establishing a contract. Appropriate conduct by the parties post stating that said position had less scope nnd responsibility and
may be sufficient to establish nn ngreement, and while there may be demanded that. he he given benefits as provided for Section 8(c)(i)
instances where the exchunge of correspondence does not disclose the and (iii) of the agreement. MCHC did not accept Zosa's resignation
exact point at which tho deal was closed. the actions of the parties and informed him that the employment agreement is terminated due
may indicate that a binding obligation has been undertaken. to his breach of Section l? and that he has no further rights under
With our finding tbat there is a valid contract, it is crystal-clear it except the amounts starod in Section &(a)(i) and (i). As a result
that when petitioner did not open the LWC for the first half of the Zoea invoked the arbitration clause and designated his brother Atty
transaction (100MT), despite numerous demands from respondent Francis Zea ns his representative in the arbti ration panel. However,
Ssangyong, petitioner breached its contractual obligation. It is a instead of submitting the dispute tn arbitration, Zasn fled an action
well-entrenched rule that the failure of a buyer to furnish an agreed for damages against MC[C and MCMC before RTC Cebu to enfrce o
letter af credit is a hreach of the contract between buyer and seller. his benefits under the employment agreement. MCHC and MCMC
Indeed, where th buyer fails to open a letter of credit as stipulated, filed motion to dismiss considering that Zasa's claims should be
the seller ar exporter is entitled to claim damages for such breach. resolved through arbitration pursuant to the arbitration clause
Damages for failure to open a commercial credit may, in appropriate T'be lower court denied the same considering that the validity and
 THE AI'FAN Irr tr't tit
NI 'TIE ABIT1LT0N 1Aw I''! IHI
're ltd hi tho nprvm· Cont

legality of the arbitration clause can be determinel ate trial on the Victoria Abri. w had the occasion to stress that "where contract
merits. UJpon denial o? MCHC's and MCMCs suhscent motion, f' employmunt, being a contract of acdhsion, is ambiguous, any
they went to CA. The CA ruled that the trial court is directed to
ambiguity therein should be construed strictly against the parry who
resolve the issue of validity and effectivity of the arbitration clause,
prepared it." And, finally, respondent Zosa nover submitted himself
The subsequent MR was denied. In compliance with the CA's ruling,
to arbitrntion proceedings (as there was none yet) before bewailing
tbe TC thereafter rendered a decision declaring partially void and
the composition at the panel of arbitratur. He in fact, lost no time
no effect the arbitration clause insofar as the composition of the panel
in assailing the "arbitration clause" upon realizing the inequities
of arbitrator is concerned. Hence, cnsc roached SC via petition for
review on certiorari under Rule 46. that may mar the arbitration proceedings if tho existing line-up of
arbitrators remained unchecked
ISSUE: Furthermore, the decision of the Court of Appeals in CA.G.R.
Whether or not the arbitration elause in question is SP No, 43059 affirming the trial cour's assumption of jurisdiction
void insofar as the composition of the panel of arbitrators over the case has becorue the law of the case" which now binds the
is concerned. petitioners. The "law of tho case doctrine has heen defined as "a term
applied to an established rule that when an appellate court passes
SUPREME COURTS RULING: on u question and remands tae cause to the lower court for further
The arbitration clause in qucstion is void insofar as the com- proceedings, the question there settled becomes the law of the case
position of the panel of arbitrators. As curreetly pointed out by the upon suhsequent ppeal." To note, the CA's derision in CA-G.R. S
trial court, MCMC and MCHC represent the same interest. Hence, No. 43059 has already attained finality as evidenced by a Resolution
the panel of arbitrators they will appoint will surely act in their favor of this Court ordering entry of judgment of said cnse
giving little opportunity for Zosa to obtain justice from the award
that the panel of arbitrators will render. As provided for in Article 19, TRANSFIELD PHILIPPINES, INC. (TPI) V. LUZON HYDRO
2045 of the Cii] Code, Any_clause giving one of the parties power CORPORATION (LHC), AUSTRALIA
to choose more arbitrators than the other is void and of no effect." AND NEW ZEALAND BANKING GROUP LIMITED
We nccd only to erplasize in closing that arbitration prucodings AND SECURITY BANK CORPORATION
are designed to level the playing field among the parties in pursuit
of a mutually acceptable solution ta their conflicting claims. Any G.R. No. 146717, May 19, 2006
arrangement or scheme that would give undue advantage to a party FACTS:
in the negotiating table is anathema to the very purpose of arbitration
LHC claimed that TPI is guilty af forum shopping wban it fled
and should, therefore, be resisted.
the following suits: (1.) Civil Case No. 04-332 filed on 19 March 2004,
NOTE: pcnding before the Regional 'Trial Court (RTC) of Makati, Branch 5G
fur confirmation, recognition and enforcement of the Third Partial
In this connection, petitioners' attempt to put respondent in Awar in case 11264'[Link], ICC International Court of Arbitration,
estoppel in assailing the arbitration clause must bn struck down. For entitled Transfield Philippines, Inc. v. Luzon Hydro Corporation; (2.)
one, this issue of estoppol, as likowise noted by the Court of Appeals, ICE Case No. 112G4/TE'MW, Transfieid Philippines. Inc. v. Lusun
found its way for the fnst time only on appeal. Well-settled is the rule Hydro Corporation filed before the International Court of Arbitration
that issnna not raised below cannot be resalved on review in higher International Chamber of Commerce ICC} a request for arbitration
courts. Seendly,
a employment agreements such as the one at bar dated 3 November 200 pursuant to the Turnkey Contract between
are usually contracts of adhcsion. Any ambiguity in its provisions LHC and TPI; and (3.) G.R. No. 1467\7, Tansfcid Philippines, Inc.
is generally resolved against the party who drafted the document. • Luzon Hydro Corporation, Australia and Neu Zealand Banking
Thus, in the relatively recent case of Phil. Federation of Credit Group Limited ard Security Bank Corp. fled on 5 February 2001,
Cooperates, Inc. (PCCI) and Fr, Benedicto Jayomu • NLRC and whicb was an appeal by certiorari with prayer for TRO/preliminary
 IT II
'tH#' AI TE(NA'TI, [H>-V'U!'TI IR!HM 1+1' N
WI» 'T# MIL TIN 1.w
u I rd toy tleiueu &»ur

prohibitory and mandatory iuuntion, of the Court of Appeal ervatary meuures. Likewise. Section 14 of R.A. No, 876 (The Arbi-
Decision dated 31 January 200I in CA-GR SP No. 61901; (3u.) traton Law) recognizes the rights of any party to petition the court
CA-GR. S! No. 61901 was a petition for review of the Decision i tu take measures to safegunrd nnd'or conserve any matter which is
Cisill Case No. (0 112, wherein TPI claimed thnt LHC'call on the the subject of the dispute iu arbitration. I addition, R.A No. 9285,
securities was premature considering tbnt the issue of default ha» otherwise known as tbe Alternative Dispute Resolution Act of 2004,"
not yet been rsolvcd with finality; the petition was however denied allows the filing of provisional or intorin moasumas with the regular
by the Court af Appeals AND (3b.) Civil Case No. 00-1312 was courts whenever the arbitral tribunal has no power to act or to act
complaint for injunction with prsyer for temporary restraining order effectively.
ad'or writ of preliminary injunction dated 5 November 2000, which R.A. No. 9825 provides that international commercial arbitra-
sought to restrain LHC' frum calling on the securities and respondent tions shall be governed by the Model Law an Internationnl Com-
banks from transferring or paying of the securities, the complaint mercisl Arbitration (Made! Lnw) adopted by the Urited Nations
was denied by the RTC. Commission on International 'Trade Law (UN(TTRAL. Mareoer,
the New York Convontion. to which the Philippines is a signatory,
ISSUE:
governs the recognition and enforcement. of foreign arbitral awards.
Whether or not there is a forum shopping in the case The applicability of the New York Convention in the Philippines was
at bar. confirmod in Section 42 of R.A. No. 9285, Said law also provides that
the npplicntion for the recognition and enforcement of such awards
SUPREME COURTS RULING: +hail be filed with the proper RTC.
T'here is no forum shopping in the case at bar. The essence of
forum-shopping is the fling of multiple suits involving the same par- 20. HUTAMA-RSEA JOINT OPERATIONS, INC. V.
ties for the same cause of action, either simultaneously or succes- CITRA METRO MANILA TOLLWAYS CORPORATION
sively, for the purpose of obtaining a favorable judgment. Forum-
G.R. No. 180640, April 24, 2009
shopping has likewise been defined as the act of n party against
whom an adverse judgment has been rendered in one forum, seeking FACTS:
and possibly getting a favorable opinion in another forum, other than
by appeal or the special civil action of certiorari, or tho institution of [Link]-RSA Joint Operations, Inc. (Hutama) and Cita Metro
two nr more actions ar proe@dings grounded on the same cause on Manila Tollways Corporation (Citra) entered into an Engineering
the supposition that one or the other court would make e favorable Procurement Construction Contract (PCC) wherehy Hutu ma would
disposition. undertake the construetion of Stage I of the South Metro Manila
Skyway Project (Skyway Project) which stretched from the junction
Thus, for forum-shopping to exist, there must be: (a) identity of' Buendia Avenue, Makati City up to Bicutan Interchange, Tguig
of parties, or at least such parties ns represent the same interests City. A8consideration, Citra obliged itself under EPCC to pay Iuramn
in both actions; (b) entity of rights asserted and relief prnyad for a total amount of $369.510,304. During the constructio, Hutama
the relief heing loud on the amne facts; nnd (e) the identity of th e wrote Citra or several acrcnsions requesting payment of the former's
two preceding particulars is such that any judgment rendered in the interim billings pursuant to the provisions of FPCC. Citra partially
other action will, regardless of which party is successful, amount to paid the interim billings, thus, prompting Hutama to demand that
res judicata the action under consideration. None of these elements Citra pathe outstanding halance thereon, but Citra failed to do so.
are preseut in the case at bar. Thereafter, the Skyway Project was openod for public use and toll
As fundamental point, the pendency of arbitral proceedings fees were collected accordingly. Thus, Htnma reiterated its demand
does uot foreclose rsurt to the courts for provisional reliefs. The that Ciru pay the outstanding balance an the interim billing as well
Rules cf the ICC, which governs the parties' arbitral dispute. allows s the "early completion bonus" agreed upon in the EPCC but [Link]
the application of a party to a judicial authority for interim or eon refused to comply with Hutama's domnmds. 'Thus, Hutama, through
 HK AI'T'INA'TY DIST'I Wien+ 1 I'Al' HI
AND 'THI AMI'TIA'TIU!N 1,AW tw lpf hi 4le 'igtne l rt

counsel sent another demand letter to Cirra. 'Thor·after, Huta utinlly referred to the D for decision, and only when the parties
and Citra through their respective officer and representatives hod · rt distialiod with the decision of the DAB should arbitration
several meetings to discuss the possibility of amicably settling tlw manence. 'This does mot mean. however. that the CIAC is barred
dispute which lasted for almost one year but they failed to reach an ram assuming jurisdiction over the dispute if such clause was not
amicable settlement. As a result, Hutama filed with Construction complicd with.
Industry Arbitration Commission (CIAO) a request for arbitration
Under Section I, Article III of the CIAC Rules, an arbitration
seeking to enforce its money claims against Cits. Citra filed n motion
clause in a construction contract shall be deemed as an agreement
to dismiss on ground of prematurity since the cnse was» referred
to submit an existing or future controversy to C1AC jurisdiction,
first to Dispute Adjudication Board as provided for by Clauso 20.4
"notwithstanding the reference to a different. arbitration institution
of the EPCC, CIAC denied the motion considering that compliance
or arbitral body in such contract x x x." Elementary is the rule that
with Clause 20.4 was a fctuala issued to be determined during the
when laws or rules are clear, it is incumbent on the court to apply
trinl. After tbe preliminary conference, Citrn filed an Urgent Motion
them. When. the law (or rule) is unambiguous and unequivocal, appli-
requesting CLAC to refrain from proceeding with the trial proper
cation, not interpretation thereof, is imperative,
without resolving first the issue of compliance with the condition
precedent. CIAC denied the motion stating that prior resort to DAB Hence, the bare fact that the parties heroin incorporated an
was not a condition precedent for CIAC ta assume jurisdiction. A a arbitration clause in the EPCC is sufficient to est the CIAC with
result, Citra filed a potition before CA and the latter ruled in favor of jurisdiction over any construction controversy or claim between the
the former. Upon denial of MR. Hutama went to SC via petition to purties. The arbitration clause in the construction contract ipso facto
review on certiorari under Rule 45. vested the CIAC with jurisdiction. This rule applies, regardless of
whether the parties specifically choose another forum or make refe-
ISSUE:
rnce to another arbitral body. Since the jurisdiction of CLAC is
Whether or not prior referral to DAB as provided far conferred by law. it ennot be subjected to any condition; nor can
in Clause 20.4 of EPC€ is a condition precedent before it be waived or diminished by the stipulation, net or omission of the
CEAC can assume jurisdiction over the dispute in the case parties, as long as the parties agreed to submit their construction
at bar contract dispute to arbitration, or if there is an arbitration clause
in the construction contract. The parties will not be precluded from
SUPREME COURTS RULING: electing to submit their dispute to CIAC, because ths right has been
vested in each party by law.
Friar referral to DAB s provided fro in Clause 20.4 f EPCC is
not a condition precedent before CIAC can assume jurisdiction over
NOTE:
the dispute in the case at bar. A perusal of the provisions of F.O No.
1008 shows that CIAC shall have jurisdiction over a dispute involving The ling of SC in this cnse has a procedent in the case of
a construction contract if said contract contains an arbitration else China Chang Jiang Energy Corporation (Philippines) t. Rosal Infras-
(notwithstanding any reference by the same contract to nother trcture Builders nnd National Irrigation Administration v. CA.
arbitration institution or arbitral boly): or, even in the absence of
It. bears to emphasize that the mere existence of an arbitra-
such a clause in the construction contract, the parties still agree
tion clause in the construction contract is considered by law as an
to submit their dispute to arbitration. It is undisputed that in the
case at bar, the EPCC contains an arbitration clause in which the agreement by the parties to submit existing or future controversies
between them t CIAC jurisdiction, without any qualification or con
petitioner and respondent explicitly agree to submit to arbitration
any dispute between them arising from or connected with the EC€, dtion precedent. 'To affirm a condition precedent in the construc-
tion contract, which would effectively suspend the jurisdiction of the
lt is true that Clause 20.4 of the EPCC states that. a dispute
between petitioner and respondent as regards the PCC' shall be
C[AC until compliance therewith, would be in conflict with the recog-
nized intention of the law and rules to automatically vest CIAC with
 tt l
fl# L'EHN TW DR:.JP[F [II 'IL A+tot - I'ts lh+lat» ho'woe 4 ourl
AN'M M{HTRT'IAN I,w

jurisdiction over a dispute should the construetu ntret vontnm ndjudientiun with t1AC. In 1ts complaint, Lim Kim sought payment
of its unpaid progress buildings, alleged unearned profits end other
an arbitration clause.
rvcevables. Hi Precisiun in its answer and amended answer climesl
a
Moreover, the CIAC' was crated in recognition of the com ·etual and liquidated damages, reimbursement ut alleged additional
ribution of the construction industry to national development goals, costs it had incurred in order to complete the projoct and attorney s
+Hen
Renliring that delays in the resolution of construction industry fees. CIAC ruled in favor of Lim Kim in a unanimous award.
disputes would also hold up the development of the country, EO Hi Precision seeks review of both under Rule 45 and Rule 6~ of the
No. 1008 expressly mandates the CIAC to expeditiously settle con Rules of Court.
struction industry disputes and, for this purpose, vests in the CIA(C
original and exclusive jurisdiction over disputes arising from, or ISSUE:
connected with, contract entered into by the parties involved in con. Whether or not the arbitral award in the case at bar
8ruction in the Philippine. can he reviewed by the SC
'T'he dispute between petitioner and respondent has been lin-
gering for almost five years now. Despite numerous meetings and SUPREME COURTS RULING:
negotiations bet ween the parties, which took place prior to petition 'l'he arbitral award in the case at bar eannot be reviewed by
er's fling with the CIAC uf its Request. fro Arbitration, no amicable or
the SC, Section 19 E.0. No, 1008 ns amended says, "The arbisral
settlement was reached. I ruling requiring the parties to still ap- nwul_sall upon
h be binding the purtjes, It shall be firal and irap-
point. n DAB, to which they shouid first refer their dispute before the pealable excepton questions of law which shall be nppealable to the
same could be submitted ta the CIAC, would merely be circuitous SC," Section I1 9 makes it crystal clear that questions of fact cannot
and dilatory at this point. It would entail unnecessary delays and be raised in procoedings before the Supreme Court -which is no'
expenses on both parties, which .O. No. 1008 preciselyseeks to pre- n trier of facts in respect of an arbitral award render under
vent. It would, indeed, defeat the purpose for which the CIAC was the aegis of the C'LAC. Consideration of the animating purpose of
created. voluntary arbitration in general, nnd nvhitration under the aegis
ef the CIAC in particular, requires ua to apply rigorously tbe nboe
21. HI-PRECISION STEEL CENTER, INC. V LIM KIM STEEL principle embodied in Section 19 that tbe Arbital 'Tribunal's fndings
BUILDERS, INC. AND CLAC a shall be final and inappealable.
of fct
G.R. No. 110434, December 13, 1993 Voluntary arbitration involves the reference of a dispute to
an impartial body, the members of :hich are chosen by the parties
FACTS: themselves, whicl parties freely consent in advance to abide by the
Hi Precision entered inta a contract with Lim Kim under which arbitral award issued after proceeding= where both parties hd a the
the latter as contractor was to complete a P1 million construction opportunity ta be heard. The basic ob jective is to provide n speedy
project owned by the former within n period of 153 days (rom
f May an inexpensive method of settling disputes by nllowing the parties
id tle fertnlities. delay,'+ expense ad aggravation which
8,1990 to October 8, 1990). The project completion date was frst Lt) aAvut' tt I€IE>, '-· ·" . ", •
commonly accompany ordinary litigation. <specially litigation which
moved to November 4. 1990 but on said date, only 75.8674% of the
gues through the entire hierarchy of courts. E.O, No. 1008 created
project was actually completed. Hi Precision attributed this non- e

nr gm . - th
completion to Lim Kim which allegedly had frequently incurred a arbitration facility to which the construction industry 1 n
delays during the original contract period and the extension period. Philippines can have recours. The Executive Order was enacted to
However, Lim Kim insisted that the delays in the project were either encrage the early and expeditious settlement of dpuis in the
excusable or due to Hi Precision's own defauit and issuance of change construction industry, public policy tbe implementation of whic his
orders. Hi Precision took over the projewt un November 7, 1990 and necessary and important for the realization of' national development
eventually completed an February 1991. Lim Kim filed n request for goals.
 I AA'TRNTIVE {1th, IE, 1H 1'AI,I IL
AN THE' ATTN t lewis hy tl runt «'rt

Aware of the objective of' voluntary nrlitrutin in th labor field, obligations s they fell due. I'hus, a= of March 1, 195, CANORECO's
in the construction industry, and in any other nrvn for that mntwr, outstanding; loan with NE\ amounted to,74 million pesos. NEA en-
the Court will not assist one or the other or even both parties in ay forced the provisions of the mortgage euntract by designating an act-
effort to subvert or defeat that objective fr their private purposuw, ing genera} manger of CANORECO to prutet state funds invested
The Court will not review the factual findings of an arbitral tribunal therein. During the annual general membership assembly 'of €ANO-
upon the artful allegation that such body had "misapprehended th ECO on May 28, 1995, the_membersolerte @neiset of members
facts' and will not pass upon issues which are, at bottom, issues ol of the board of directors. NEA appointed a new general mare"
fact, nu matter how cleverly disguised they might be as legal ques- Felix Rolando G. Zak±a and dee)rod,former manager Reynaldo
tions." The parties here had recourse to arbitration and chose th A5undo'
V. as persona non gratd Abundocontested the authority of
arbitrators themselves; they must have had confidence in such arbi- NEA to supervise and contra] CAN~ECO vi filing of several cases
tratars. 'The Court will rot, therefore, permit the parties to relitigat with Cooperative Development Authority. CD declared void abti-
before it the issues of fcts previously presented and argued before tio the May 28, 1995 board meeting fur lack of quorum considering
the Arbitral Tribunal, save only where a very clear showing is mad th~t there were only three incuriibent members who were present.
that, in reaching its factual conclusions, the Arbitral Tribunal com- Thereafter, Abund resigned as general manager and NE recog-
mitted an error so egregious and hurtful to one party as to constitute nized the appointment of acting general munger,[Link] _
a grave abuse of diserotion resulting in lack or loss of jurisdiction. Irabon replaced Zaldua on September 23, 1996. CD issued g writ
Prototypical example would be factual conclusions of the Tribunal and
of execution order
to vacate thereby enabling Baramcda et al.
which resulted in deprivation of one or the other party of a fair op. to resume control of CANORECO In response ta the letters of Cam.
portunity ta present its position before the Arbitral Tribunal, and an Norte Governor and SP, President Ramos issued Memorandum Or-
award obtained through fraud or the corruption of arbitrators. Any de+· Na. 49,constituting an d hoe cmift&e to temporarily tak
other, more relaxed, rule would result in setting nt naught the basic over andmanage the affairs fANORECO. The ad hoc commti tee
objective of a voluntary arbitration and would reduce arbitration to a called a special membership meeting to determine whether there is
largely inutile institution, n need to change the composition of CANORECO's board of directors
Examination of the Petition at bar reveal that it is essentially which resulted in the affirmative. Hence, CANORECO conducted a
a attempt to re-assert and re-litigate before this Court the detailed general election of directors and elected Atienzn et al, as now board
or itemized factual claims made before the Arbitral Tribunal under members. 'The new board issued aresolutin o declaring theposition
a general averment that the Arbitral 'Tribunal had misapprehended of gen&rnl manager vacna t and another resolution appointing Mary
tho facts" submitted to it. In the present Petition, too, Hi-l'recision Ain C. Aor as general manager Thus, a petition for quo warrunto
claims that the Arbitral Tribunai had committed grave abuse of dis- before SC was filed by Burrameda et al.
cretion amounting tu lack of jurisdiction in reaching its factual and
legal conclusions. ISSUE:
Whether or not Memorandum Circular No. 409 is the
22. RUBEN N. BARRAMEDA, ET AL. V ROMEO ATIENZA, ET AL. proper remedy to resolve the dispute in the case at bar.

G.R. No. 129175, November 19, 2001 SUPREME COURT'S RULING:

FACTS: ' Memorandum Circular 409 is not the proper remedy tn resolve
National Electrification Administration (NA and Carnarines the dispute in the case at bar. Said memorandum circular_is jrival.
Norte Electric Cooperative (CANORECO) entered into a Contract of Having registered itself with the (DA pursuant to ton T8 af .A.
Loan and First Mortgage of CANORECO. Ore of the signatrios o to No. 6938 and Section 17 of R A. No. 6939, CANORECO was brought
the loan contract was Reynaldo Abundo. general manager of CANO- under tho coverage of said laws. In he case at bar, the dispute which
RECO at that time. During his incumbency, he filer to pay the loan resulted to the issuanceof Memorandum Circular 409 is an intr>

o
 '
TH LT'FIRS'TI MW,T IE 4+ L
Aw'I 1HI
NI Ti. AIi#TI'iN 1
4n le+alol hy tle tirenw· ('rt.

cooperative dispute. Article 1I of the toopet· tad provdes, hewn perfestel. One motion for reconsideration is allowed. A nal
"Dispntes amoug members, ofticors, dircetors. ad cummttee mem- resolution or «deesio of an administrative agency also binds the
berg, nnd intra-cooperative disputes shall, as far as practicable, be. lice of the President even if such agency is under the administrative
settled nmicably in nocordance with the conciliation or r~rliation apervison snd contrul of the latter.
mechnnisrus embodied in the by-laws of the cooperative, and in appli-
cable laws Should such conciliation/mediation pre&dig fail the While Memo No. 409 is unconstitutiona?}, tho lotion of Ation7a
matter shall be settled in a purt of competent jurisdiction.' Com. al. before such event is prs~red val@duntil nullified.
plementing seid article, Sertion 8 of RA. No 699 pryides, "Upon Without prejudice to the holding of a general assembly for the
reuest of ether or both or both parties. ·CD~ sha
the IL_cjsi¢ %a rrpos of [Link] another election of directors since the terr of
conciliate disputes with the cooperative or beiw~en cooperatives: office of the directors expired sometime in 1996. Atienza shall hold
Provided, Thnt if no mediation or conciliation succeeds wthin three tfce until their successors sball have been elected and qualified.
months from request thereof, n certilicate of non-resolution shall be
issued by the commission prior to the filing an appropriate action
before tho proper courts." 23. EDUARDO J. MARINO, JR., ET AL. V GIL GAMILLA, ET AL.
G.R. No. 132400, January 31, 2005
NOTE:
FAC'TS:
'Even granting for the snke of argument that the party
US'T Faculty Union (USTU) entered into an initial collective
aggrieved by a decision of the CDA could pursue an administrative
bargaining agreement with the US'T wherein UST undertook to
appeal to the Ofhce of the President or the theory that the CDA i
provide USTFU with tree office space at Room 302 of' its Health
an gem under its direct supervision nd control, still the Office of
the President could not in this case, mot proprio or tpon request Center Building. 'The officers and directors of UST FU schedulod n
general membership meeting on October 5, 1996 for the election of
of a party, supplant er overturn the decision of the CDA. The record
the anion officers. However, Camilla and some faculty members fled
does not disclose that the gr~up ~jNorberto Ochoa appealed from
the decision of the CDA in CDA-CO Case No. 95-010 to the O/fee a petition with the Med-Arbitration Unit of th DOLE socking to stop
of the President as the head of the Executive Department exercising
the holding of the UTFU election. Med-Arbiter Tamas Fnlconitin
supervision and control over said agency. In foct the CDA had already issued a TRO enjoining the holding of the election of the USTFU
issued a C'ease and Desist Order dated 14 August 1996 rderin officers and directors. Nevertheless, Camilla and some of the faculty
.fn tar Obics, Norberto Ochoa, Lie Pascua, Felicita llan and their present in the October 4, 1996 faeulty convocation procecdod with
flowers to cease and desist from actiag as the Board [Link] tho election of the UST'U officers. Hence, Marino. Jr.. et al. filed
and Officers,ofC@marines Norte Electric Cooperative (CANORECO) with the DOLE a petition for prohibition, injunction, with prayer for
and to refrain from implementing their Resolution calling for the preliminary injunction and TRO seeking to invalidate the election
District'V Election on August 17 and 24. 1996." Consequently, the held on October 4, 1996. On December 4, 1996, UST and USTFU
said decision of' the CDAhad long become final and executory when rcprosontod by Gamilla and his co·officers entered into a collective
Memorandum Order No. 40 was issued on 3 December 19967¢ bargaining agreement for a period of fve years whichwas ratified
on December 12, 1996. The Med-Arbiter issued a TRO enjoining
Memorandum cannot then be considered as one retersing the decision
of the CDA which had attained finality. Camilla and his fellow officers to cease an daiat from performing
any and all acts pertaining to the duties and functions of the officers
"Under Section 15, Chapter III of Book VII of the Administrative and directors of UST'FU. 'Thereafter, Gamilla, Cardenas, and Aseron
Cod& of 1987 (Executive Order Na. 292), decisions of administrative with some other persons served n letter to Marino and Alam1s
agencies become finnl and executor [ifteon days after receipt of demanding that the latter vacate the premises located at loom 30,
copy thereof by the party adversely affected unless within that Health Center Building, UST-the Office of USTFU. After coercing the
period an administrative nppeal or judicial review. if proper, has officer messenger who was there to step out, Camilla and company
 AMT HI {'lo
'HIE, AMI'#RNA1II W:tr;t wt:wn +flit;
4Ni 'THI AW'TI{'TKN [Link] t'Le+l h tl· #gee «'»t

padlocked the door leading to the union's ·flier IH«nee, Marino, Med liter dated II February 1997, declaring the supposed union
et al. filed with the RTC of Manila a complaint for injunction nnd officers' [Link] void ab iritio and ordering respondents to cease and
damages with a prayer for preliminary injunction nnd 'I'RO or the desist from discharging the duties nd functions of the legitimate
use of US'TFLU office. The Med-Arbiter rendered a decision declaring officers af the USTFU, The trial court even obtained a copy of the
October 1, 1996 election null and void ab initio which was affirmed aid decision two (2) days after its promulgation. Still, it continued
by the BLR. Wen brought to SC via special evil action for certiorari, the hearing on the application for injunction and eventually isued
the SC dismissed the petition. 'The TC ruled in favor of Marina. et the assailed orders.
al. However, via petition for certiorari before CA, the latter reversed At this juncture, the Court notes that a key question in this
the R'TC's ruling and denied the subsequent MR. Hence, Marino, et case has already been settled by the Court in its decision in UST
al. went to SC via petition for review under Rule 45 Paelty Union, et al. v. Bitonio, Jr., et al. In that case. it was ruled
that the 04 October 1996 election was void for having been conducted
ISSUE: in violation of the union's constitution and by-laws. Nevertheless, the
Whether or notTC's issuance ofpreliminary injunc- complaint a quo could not have validly proceeded at the time af its
tion and TRO in favor of Marino, et al. ls correct. fling of the said case due to petitioners' lack of cause of aetion.

SUPREME COURTS RULING: NOT'E:

'The RTC's issuance af preliminary injunction and TRO in favor The petition is partially granted na fars the claims fro damages
of Marino, et al. is not correct. 'The dispute in the case at bar is an nre concerned. 'The case wns remanded to the trial for further in this
intrs-union dispute, The propriety of padlocking the uniou's office, aspect.
the relief sought by the petitioner in tho civil re, is interwoven with The Bureau of Labor Relations and the Labor Relations Divisions
the issue of legitimacy of the assumption of office by the respondents in the regional offices of the Department of Labor shall have original
in light of the violator of the union's cunstitution and by-laws, which and exclusive authority tu act, ut their own initintive or upon request
ws then pending before the fed Arbiter. Necessarily, therefore, the of either or both parties. on all inter-union znd intra-union conflict=,
trial eourt has no jurisdiction over the case insofr a as tbe prayer far and uull disputes, grievances or problems arising from or affecting
the removal of the padlocks and the issuance of an injunctive writ is labor-management relations in all workplaces whether agricultural
concerned. or non-agricultural, exwept those arising from the implementation or
It is a settled rule that jurisdiction, once acquired, continues until interpretation of collective bargaining agreements which shall be the
the case is finally terminated. The petition with the Med-Arbiter was subject of grievance procedure and/or voluntary arbitration.
filed ahead of the complaint in the civil case before the RTC. As such, Thus, unlike the NLRC which is explicitly vested with tho
when the petitioners filed their complaint- a quo, jurisdiction over the jurisdiction over claims for actual, moral, exemplary and other forms
injunction and restraining order prayed for had already been lodged of damages, the BIR is not specificall y empowered to adjudicate
with the Med-Arbiter. The remuval of padlocks and the access to the claims ofsuch nature arising from intra·mion or inter-union disputes.
office premises is necessarily included in petitioners' prayer to enjoin In fact, Art. 241 of the Labor Code ordains the separate institution
respondents from performing acts pertaining to union officers and before the regular courts of criminal and civil liabilities arising
on behalf of the union. In observance of the principle of adherence from violations of tho rights ant conditions of union membership.
of jurisdiction, it is clear that the R'IC should not have exercised The Court has consistently held that where no employer-employee
jurisdiction over tho provisional reliefs prayed for in the complaint. A exists between the parties and no issue is involved which may be
review of tha complaint shows that petitioners disclosed the existence resolved by reference to the Labor Code, other lahor statutes, or any
of the petition pending before the Med-Arbiter and even attached n collective bargaining agreement, it is the regional trial court that hn
copy thereof. The trial court was also nware of the decision of the jurisdietion.
 THE, INN I4I'i IR'l I+I FAM'T I
NT'I'H AMT'TI+M 1,}w I'u- Irle he le upnene 'rt

24. A.D. GOTHONG MANUFACTURING CORPORATION these nr+ matters within their technical expertise. l'hey are binding
EMPLOYEES UNION-ALU (THE UNION) V. an tls Court as we nre satisfied that they nre supported by subeta.n-
HON. NIEVES CONFESSOR, SECRETARY OF DOLE tial evidence, and we find no capricious exercise of' judgment war-
AND A.D. GOTHONG MANUFACTURING CORPORATION ranting reversal by certiorari
(THE COMPANY)
NOTE:
G.R. No. 113638, November 16, 1999
In this petition, petitioner Union elaims that the documentary
FACTS: evidenc was "misapprehended'' by public respondent. Petitioner
Union reiterates that.(1)in minutes of the staff meeting ofrespondent
The Union fled a petition for certification election in its bid
ta represent the unorganized regular rank-and-file employees of Company on August 13, 1989, duly siged by the President Albino
the company excluding ita office staff and personnel, The company Gothong nnd attested by Jose F. Loso presiding ofticer/VP and Ger-
trudo Lao, Assistant General Manager. Paul Michnel Yap wns listed
opposed tho petition as it excluded otfice personnel who are rank
and fles. In the inclusion-exciusion proceedings, the parties agreed
as one of the staff; (2) in the regular quarterly meeting on January
4. 1991, the names of Yap and Plaza are listed under the heading
to the inclusion of Romnuls Plaza and Paul Michael Yp a in the list Department Heads'Supervisors duly signed by President/General
of eligible voters on condition that their votes are considered chal
Manager Albino Got hong and Asst. (General Manager Gertrudo Lao;
lenged on the ground that they were supervisury employces. 'The
and (3) in the staff mooting of Ma:ch 5, 1993, Plaza was assigned a
certification election yielded a result of: Yes, 20; No, 19; Spoiled, 0;
officer-ir ·charge of the company's branch in Davao.
nnd Challenged. 2. The Med-Arbiter declared that the challenged
voters Yap nd Plaz aare rank-and file employees. UJpon appeal to T'he Court finds no cogent reason to disturb the finding of
the SOLE, the latter attired the decision af the Med-Arbiter. Thus, the Med-Arbiter and the Secretary of Labor that the copies of the
the casc reaclued the SC, minutes presented in evidence do not prove that Yap and ±Laza
were managerial or supervisory employees. The Court has examined
ISSUE: the documentary evidence, und nowhere is there a statement
Whether or not the decision of the Med-Arbiter therein about any instance where the challenged voters effectively
affirmed by SOLE is reversible. recommendod any managerial action which would require the use of
independent judgment. The last pee of evidence was not dicssetd
SUPREME COURTS RULING: by the Med-Arhiter; however a perusal thereof would show that while
one J. Chua of the Sales Department reported that "omy Plaza was
The decision of the Med-Arbiter affrmod by SOLE is not in Davao right now acting as OIC," the same document states that
reversible. It has also been established that in the determination of the Davao operations still had to be finalized. On the other hand, the
whether or not certain employees are managerial employees, this claim of respondent Company that Plaza is the head of the Davao
Cort neurds due rcspet and therefre
o sustains the findings of fnct branch is belied hy tho artificatiun o the City Treasurer of Iavao
made by qunsi-judicial agencies which nre supported by [Link] and of the Bureau of Internal Revenue of Mandaue City that the plan
n considering their expertise in their respective fields.
eviece to open a branch in Davao City did not materialize.
'Ihis Court is not a trier of facts., As earlier stated. it is not the Tho reliance of petitioner on the affidavit of Jose Loseo, Per-
function of this Court to examine nnd evaluate the probative valuc sonnel Manager, tht. Plaza and Yap were hired by bim as department
of all evidence presented to the concerned tribunal which formed the head and supervisor of the respondent Company cannot. be sustained
basis af its impugned decision or resolution. Foll owing established in light of the uffdavit of said Loseo dated September 28, 1993,
precedents, it is inappropriate to review that factual findings of the attesting that he was "forced to sign the earlier memorandum on
Med-Arbiter regarding the issue whether Romulo Plaza and Paul the job assignment of Yap and Plaza. 'I'his affidavit is sought to
Michael Yap are or are not rank-and-file employees considering that he discarded by respondent Company for being perjurious and ill-
 '+@N
Ii!E. A,T'k&NAT I'+rT+ it + 11+nf AT HI
AN II, MW'It'TIM}W LA t'iu liell h tle· iprrn· Cort

motivated. Petitioner Union however reiterates thut laaeo's affidavit jurisditi. Hence, i obedience with the order of the SOLE, the
is corroborated by the other public documents indicating that. Plz officer and members of the Union stopped their strike and returned
ad Yan are not rank-and.-file empioyoos
to wurk. 'The company filed a petition with NLRC asking to declare
the strike illegal. Labor Arbiter Facundo Leda ruled in favor of tho
25. CAPITOL MEDICAL CENTER, INC. (THE COMPANY) V. company declaring the strike illegal. Upon appeal to the NLRC, the
NLRC, ET AL. latter reversed the ruling of the LA and denied the subsequent MR.
G.R. No. 147080, April 26, 2005 T'he company filed n petition fro certiorari before CA but the latter
affirmed NLRC's ruling. Hence. the case reached the SC via petition
FACTS: for review.
Capitol Medical Center Employees Association-Alliance of
Filpino Workers (Union) had to contend with another union --- ISSUE:
Capitol Medical Center Allianco of Concerned Employees (CMC Whether or not the strike in the case at bar is illegal.
ACE) -which demanded for u certification election among rank-
and-fie employees of the company. Med-Arbiter Bridido Fadrigon SUPREME COURTS RULING:
granted the petition and the matter was appealed to the SOLE
The strike in the case at bar is illegal. The union failed to comply
Use. Bienvenido Laguesma rendered a resolution granting rhe
with the procedures mandated hy law.
appeal and denied the subsequent motion af the company and CM€
ACE 'The latter brought the matter to SC and the Court rendered Section 10of Rule 22of the Omnibus Rules of the NLRC provides,
judgment affirming the decision of the Undersecretary. Instead of "A decision to declare a strike must be approved by a majority of the
filing a motion with the SOLE r the enforcement of the resolutions total union membership in the bargaining unit concerned obtained
of Undersecretary LnguesIna as affrmod by this Court, the Union by secret ballot in meetings or referenda called for the purpose. A
filed a Notice of Stike on October 29, 199' with the National dceision to declare a lockout must be approved by a majority of the
Conciliation and Mediation Board (NCMB), serving a copy thereof to Board of Directors of the employer, corporation or association or
the company. The Union alleged as grounds for the projected strike the partners obtained by a secret ballot in a meeting called for the
the following acts of' the petitioner: (a) refusal to bargain; (b) coercion purpose."
n employees; and (c) interference! rastrint to self-organization. A The regional branch of the Board may, at its own initiative or
eries ot conferences was conducted before NC}MB but no agreement upon the request of any affected party, supervise the contduet of the
was rached. 'The company filed with the board a letter requesting for secret balloting. In every case, the union or the employer shall furnish
the dismissal of the notice to strike since the Union had apparently the regional branch of th Board and notice af meetings referred to in
failed to furnish the Heioa:a! Branch of the NCM with a copy of
the preceding paragraph at least twenty-four (24) hours before such
a notice of the meeting where the strike vote was conducted. The meetings ns well as the rosults of the voting at least seven (7) days
Union submitted to the NCMB the minutes of the alleged strike before the intended strike or lockout, subject to the cooling-off period
vote purportedly held an November 10, 1997 at the parking lot in provided in this Rule.
front of the petitioner's premises, at the corner of Scout Magbnua
Street and Panay Avenue, Quezon City. It appears that 178 out of Although the second paragraph of Section 10 of the said Rule
the 300 union members participted a therein, and the results were is not provided in the Labor Code of the Philippines, nevertheless,
as follows: 156 memhers voted to strike; 14 members cast negatve the same was incorporated in the Omnibus Rules Implementing the
votes; nnd eight votes were spoiled. Thereafter, the officers and Labor Code and has the foree and effect of law.
members of the Union staged a strike. Subsequently, the Union filed Aside from the mandatory notices embedded in Article 263,
an ex parte motion with the DOLE, praying for its assumption of paragraphs (c) and (f) of the Labor Code, a union intending to stage
jurisdiction over the dispute. The SOLE issued an Order assuming a strike is mandated ta notify the NCMB of the meeting for the
"7
 T'HJ, AI I'ENT'Vi :+Ji+, It'w Ir u I I;I' 4I
AN T'THE , AI'HAT\ON AW t'.welt hey lie in-t'rt

conduct. of strike vote, at least twenty four (4) ho»tr» prior to uel f' strike · urturm-. that Tn the event
strike vote was, indesl, Laken.
meeting. Unless the NCMI is notified of the date, le and timu of that. the report is false, the seven-day period affords the members
the meeting of the union members for the conduct of a strike vote, the an opportunity to take the appropriate remedy before it is too late.
NCMB would be unable ta supervise the balding ot' the same, if and 'The 15 tu 30 day cooling-off period is designed to afford the parties
when it decides Lo eeruse 1ts pwwer ol supervision. the opportunity ta amicably resolve the dispute with the assistance
In Nationui Federation of Labor v, LRRC, the Court enumerated of th NCNB conciliator/mediator, while the seven-day strike bar
the notices required by Article 263 af the Labor Code snd the is intended to give the DOLE an opportunity to verify whether the
projected strike really anrries the imprimatur ct the majority of the
Implementing Rules, which include the 24 -hour prior notice ta the
uion members.
NC'MB:
'The requirement of giving nonce of the can~duct. of strike vote
1) A notice of strike, with tho required contents, should be
to the NCMB at least 24 hours before the meeting fur tle soipurpose
fed with the DOLE, specifically the Regional Branch of the NCM1,
is designed to: (n) inform the NCMT of the intent af the union to
copy furnished the employer of the union;
con«duct strike vote; (b) give the NC'MB ample time to docide on
2) A cooling-off period must be observed between the fling of whether or not there is a need to supervise the conduct of the strike
notice and the actual execution of the strike thirty (30) days in rase vote to prevent any acts of violence and/or irregulnrities attendant
of bargnining deadlock and fifteen (15) days in case of unfair labor thereto; and {e) should th NCMB dide an its own initiative or
practice. However, in the case of union busting where the urion's upon the request af an interested party ineluding the employer, tu
existence is threatened, thc cooling-off period need not be observed. supervise the strike vote, to give it ample time to prepnre fro the
deployment af the requisite personnel, including peace officers if need
3) Before n strike is acially commenced. a strike vote should
be. Unless and until the NCM is notited at least 24 hours of the
be taken by secret balloting, uith a 24-hour prior notice to NCMB. union's decision to conduct a strike vote, and the date, place, and time
T'he derision to declare a strike requires the secret-ballot approval
thereof, the NCME cannot determine for itself whether to supervise
of majority of the total union membership in the bargaining unit a strike vote meeting or not anrd inure its peaceful nd regulnr
concerned. conduct 'The failure nf n union tocomply with the requirement of the
4) The result of the strike vote should be reported to the giving of nutice tu the N('MB At least 24 hours prior to the holding
NC'MB at least seven (7) days before the intended strike or lockout, of a strike vote meeting will render the subsequent strike staged by
subject to the cooling-off period. the union illegal.
A union is mandated ta notify the NCMB of' an impending dispute In this case, the respondent Union fa~led to comply with the 24
in a particular bargaining urit via a notice of strike. Thereafter, the hour prior notice requirement to the N€MB before it eonducted the
NC'MB. through its conciliator-mediators, shall cnll the parties to a alleged strike vote meeting an November 10, 1997 As a result, the
conference at the soonest possible time in order to actively assist them petitioner complained that no strike vote mceting ever took place and
in exploring all possibilities for amicahio cttlomont. In the event auerred that the strike staged by the respondent union uas illegal.
of the failure in the conciliation/mediation proceedings, the parties Conformably to Artclei 26+ of the Labor Code of the Philippines
shall be encouraged to submit their dispute for voluntary arbitration. and Setton 7, Rule Ll of the Omnibus ulee Implementing the
However, if the parties refuse, the union may hold n strike vote, and [Link] Code, no labor organization shall declare n strike unless
if the requisite number of votes is obtained, a strike may ensue. The supported hy a majority vote af the members of the union obtained by
purpose of the strike vote is to ensure that the decision to strike secret ballot in a meeting called for that purpasa. The requirement
broadly rests with the majority of the vrion members in general and is mandntoy and the tailurc of a union to comply therewith render
not with a mere minority, and at the same time, discourage wildcat the strike illegal. The union is thus mandated to allege and prove
strikes, union bossism and even corruption. A strike vote report compliance with the requirements of the law
submitted. to the NCMB at least seven days prior to the intended date