1.

Governing Laws, Rules, Regulations Whenever reffered to in this Act, the term "ADR
practitioners" shall refer to individuals acting as
Republic Act No. 9285 April 2, 2004 mediator, conciliator, arbitrator or neutral
evaluator;
AN ACT TO INSTITUTIONALIZE THE USE OF AN
ALTERNATIVE DISPUTE RESOLUTION SYSTEM IN THE (c) "Authenticate" means to sign, execute or
PHILIPPINES AND TO ESTABLISH THE OFFICE FOR adopt a symbol, or encrypt a record in whole or
ALTERNATIVE DISPUTE RESOLUTION, AND FOR OTHER in part, intended to identity the authenticating
PURPOSES party and to adopt, accept or establish the
authenticity of a record or term;
Be it enacted by the Senate and House of Representatives
of the Philippine Congress Assembled: (d) "Arbitration" means a voluntary dispute
resolution process in which one or more
CHAPTER 1 - GENERAL PROVISIONS
arbitrators, appointed in accordance with the
SECTION 1. Title. - This act shall be known as the agreement of the parties, or rules promulgated
"Alternative Dispute Resolution Act of 2004." pursuant to this Act, resolve a dispute by
rendering an award;
SEC. 2. Declaration of Policy. - it is hereby declared the
policy of the State to actively promote party autonomy in (e) "Arbitrator" means the person appointed to
the resolution of disputes or the freedom of the party to render an award, alone or with others, in a
make their own arrangements to resolve their disputes. dispute that is the subject of an arbitration
Towards this end, the State shall encourage and actively agreement;
promote the use of Alternative Dispute Resolution (ADR)
(f) "Award" means any partial or final decision by
as an important means to achieve speedy and impartial
an arbitrator in resolving the issue in a
justice and declog court dockets. As such, the State shall
controversy;
provide means for the use of ADR as an efficient tool and
an alternative procedure for the resolution of appropriate (g) "Commercial Arbitration" An arbitration is
cases. Likewise, the State shall enlist active private sector "commercial if it covers matter arising from all
participation in the settlement of disputes through ADR. relationships of a commercial nature, whether
This Act shall be without prejudice to the adoption by the contractual or not;
Supreme Court of any ADR system, such as mediation,
conciliation, arbitration, or any combination thereof as a (h) "Confidential information" means any
means of achieving speedy and efficient means of information, relative to the subject of mediation
resolving cases pending before all courts in the Philippines or arbitration, expressly intended by the source
which shall be governed by such rules as the Supreme not to be disclosed, or obtained under
Court may approve from time to time. circumstances that would create a reasonable
expectation on behalf of the source that the
SEC. 3. Definition of Terms. - For purposes of this Act, the information shall not be disclosed. It shall
term: include (1) communication, oral or written, made
in a dispute resolution proceedings, including
(a) "Alternative Dispute Resolution System"
any memoranda, notes or work product of the
means any process or procedure used to resolve
neutral party or non-party participant, as defined
a dispute or controversy, other than by
in this Act; (2) an oral or written statement made
adjudication of a presiding judge of a court or an
or which occurs during mediation or for
officer of a government agency, as defined in
purposes of considering, conducting,
this Act, in which a neutral third party
participating, initiating, continuing of
participates to assist in the resolution of issues,
reconvening mediation or retaining a mediator;
which includes arbitration, mediation,
and (3) pleadings, motions manifestations,
conciliation, early neutral evaluation, mini-trial,
witness statements, reports filed or submitted in
or any combination thereof;
an arbitration or for expert evaluation;
(b) "ADR Provider" means institutions or persons
(i) "Convention Award" means a foreign arbitral
accredited as mediator, conciliator, arbitrator,
award made in a Convention State;
neutral evaluator, or any person exercising
similar functions in any Alternative Dispute (j) "Convention State" means a State that is a
Resolution system. This is without prejudice to member of the New York Convention;
the rights of the parties to choose nonaccredited
individuals to act as mediator, conciliator, (k) "Court" as referred to in Article 6 of the
arbitrator, or neutral evaluator of their dispute. Model Law shall mean a Regional Trial Court;

1
(l) "Court-Annexed Mediation" means any (v) "Model Law" means the Model Law on
mediation process conducted under the auspices International Commercial Arbitration adopted by
of the court, after such court has acquired the United Nations Commission on International
jurisdiction of the dispute; Trade Law on 21 June 1985;

(m) "Court-Referred Mediation" means (w) "New York Convention" means the United
mediation ordered by a court to be conducted in Nations Convention on the Recognition and
accordance with the Agreement of the Parties Enforcement of Foreign Arbitral Awards
when as action is prematurely commenced in approved in 1958 and ratified by the Philippine
violation of such agreement; Senate under Senate Resolution No. 71;

(n) "Early Neutral Evaluation" means an ADR (x) "Non-Convention Award" means a foreign
process wherein parties and their lawyers are arbitral award made in a State which is not a
brought together early in a pre-trial phase to Convention State;
present summaries of their cases and receive a
nonbinding assessment by an experienced, (y) "Non-Convention State" means a State that is
neutral person, with expertise in the subject in not a member of the New York Convention.
the substance of the dispute;
(z) "Non-Party Participant" means a person,
(o) "Government Agency" means any other than a party or mediator, who participates
government entity, office or officer, other than a in a mediation proceeding as a witness, resource
court, that is vested by law with quasi-judicial person or expert;
power to resolve or adjudicate dispute involving
(aa) "Proceeding" means a judicial,
the government, its agencies and
administrative, or other adjudicative process,
instrumentalities, or private persons;
including related pre-hearing motions,
(p) "International Party" shall mean an entity conferences and discovery;
whose place of business is outside the
(bb) "Record" means an information written on a
Philippines. It shall not include a domestic
tangible medium or stored in an electronic or
subsidiary of such international party or a
other similar medium, retrievable form; and
coventurer in a joint venture with a party which
has its place of business in the Philippines. (cc) "Roster" means a list of persons qualified to
provide ADR services as neutrals or to serve as
The term foreigner arbitrator shall mean a
arbitrators.
person who is not a national of the Philippines.
SEC. 4. Electronic Signatures in Global and E-Commerce
(q) "Mediation" means a voluntary process in
Act. - The provisions of the Electronic Signatures in Global
which a mediator, selected by the disputing
and E-Commerce Act, and its implementing Rules and
parties, facilitates communication and
Regulations shall apply to proceeding contemplated in this
negotiation, and assist the parties in reaching a
Act.
voluntary agreement regarding a dispute.
SEC. 5. Liability of ADR Provider and Practitioner. - The
(r) "Mediator" means a person who conducts
ADR providers and practitioners shall have the same civil
mediation;
liability for the Acts done in the performance of then
(s) "Mediation Party" means a person who duties as that of public officers as provided in Section 38
participates in a mediation and whose consent is (1), Chapter 9, Book of the Administrative Code of 1987.
necessary to resolve the dispute;
SEC. 6. Exception to the Application of this Act. - The
(t) "Mediation-Arbitration" or Med-Arb is a step provisions of this Act shall not apply to resolution or
dispute resolution process involving both settlement of the following: (a) labor disputes covered by
mediation and arbitration; Presidential Decree No. 442, otherwise known as the Labor
Code of the Philippines, as amended and its Implementing
(u) "Mini-Trial" means a structured dispute Rules and Regulations; (b) the civil status of persons; (c)
resolution method in which the merits of a case the validity of a marriage; (d) any ground for legal
are argued before a panel comprising senior separation; (e) the jurisdiction of courts; (f) future
decision makers with or without the presence of legitime; (g) criminal liability; and (h) those which by law
a neutral third person after which the parties cannot be compromised.
seek a negotiated settlement;
CHAPTER 2 - MEDIATION

2
SEC. 7. Scope. - The provisions of this Chapter shall cover record, or orally during a proceeding by the mediator and
voluntary mediation, whether ad hoc or institutional, the mediation parties.
other than court-annexed. The term "mediation' shall
include conciliation. A privilege arising from the confidentiality of information
may likewise be waived by a nonparty participant if the
SEC. 8. Application and Interpretation. - In applying information is provided by such nonparty participant.
construing the provisions of this Chapter, consideration
must be given to the need to promote candor or parties A person who discloses confidential information shall be
and mediators through confidentiality of the mediation precluded from asserting the privilege under Section 9 of
process, the policy of fostering prompt, economical, and this Chapter to bar disclosure of the rest of the
amicable resolution of disputes in accordance with the information necessary to a complete understanding of the
principles of integrity of determination by the parties, and previously disclosed information. If a person suffers loss or
the policy that the decision-making authority in the damages in a judicial proceeding against the person who
mediation process rests with the parties. made the disclosure.

SEC. 9. Confidentiality of Information. - Information A person who discloses or makes a representation about a
obtained through mediation proceedings shall be subject mediation is preclude from asserting the privilege under
to the following principles and guidelines: Section 9, to the extent that the communication prejudices
another person in the proceeding and it is necessary for
(a) Information obtained through mediation shall the person prejudiced to respond to the representation of
be privileged and confidential. disclosure.

(b) A party, a mediator, or a nonparty participant SEC. 11. Exceptions to Privilege. -

may refuse to disclose and may prevent any
other person from disclosing a mediation (a) There is no privilege against disclosure under
communication. Section 9 if mediation communication is:

(c) Confidential Information shall not be subject (1) in an agreement evidenced by a

to discovery and shall be inadmissible if any record authenticated by all parties to
adversarial proceeding, whether judicial or the agreement;
quasi-judicial, However, evidence or information
(2) available to the public or that is
that is otherwise admissible or subject to
made during a session of a mediation
discovery does not become inadmissible or
which is open, or is required by law to
protected from discovery solely by reason of its
be open, to the public;
use in a mediation.
(3) a threat or statement of a plan to
(d) In such an adversarial proceeding, the
inflict bodily injury or commit a crime
following persons involved or previously involved
of violence;
in a mediation may not be compelled to disclose
confidential information obtained during (4) internationally used to plan a crime,
mediation: (1) the parties to the dispute; (2) the attempt to commit, or commit a crime,
mediator or mediators; (3) the counsel for the or conceal an ongoing crime or
parties; (4) the nonparty participants; (5) any criminal activity;
persons hired or engaged in connection with the
mediation as secretary, stenographer, clerk or (5) sought or offered to prove or
assistant; and (6) any other person who obtains disprove abuse, neglect,
or possesses confidential information by reason abandonment, or exploitation in a
of his/her profession. proceeding in which a public agency is
protecting the interest of an individual
(e) The protections of this Act shall continue to protected by law; but this exception
apply even of a mediator is found to have failed does not apply where a child
to act impartially. protection matter is referred to
mediation by a court or a public agency
(f) a mediator may not be called to testify to
participates in the child protection
provide information gathered in mediation. A
mediation;
mediator who is wrongfully subpoenaed shall be
reimbursed the full cost of his attorney's fees (6) sought or offered to prove or
and related expenses. disprove a claim or complaint of
professional misconduct or malpractice
SEC. 10. Waiver of Confidentiality. - A privilege arising
from the confidentiality of information may be waived in a

3
 filed against mediator in a proceeding; (a) Before accepting a mediation, an individual
or who is requested to serve as a mediator shall:

(7) sought or offered to prove or (1) make an inquiry that is reasonable

disprove a claim of complaint of under the circumstances to
professional misconduct of malpractice determinate whether there are any
filed against a party, nonparty known facts that a reasonable
participant, or representative of a individual would consider likely to
party based on conduct occurring affect the impartiality of the mediator,
during a mediation. including a financial or personal
interest in the outcome of the
(b) There is no privilege under Section 9 if a court mediation and any existing or past
or administrative agency, finds, after a hearing in relationship with a party or
camera, that the party seeking discovery of the foreseeable participant in the
proponent of the evidence has shown that the mediation; and
evidence is not otherwise available, that there is
a need for the evidence that substantially (2) disclosure to the mediation parties
outweighs the interest in protecting any such fact known or learned as soon
confidentiality, and the mediation as is practical before accepting a
communication is sought or offered in: mediation.

(1) a court proceeding involving a (b) If a mediation learns any fact described in
crime or felony; or paragraph (a) (1) of this section after accepting a
mediation, the mediator shall disclose it as soon
(2) a proceeding to prove a claim or as practicable.
defense that under the law is sufficient
to reform or avoid a liability on a At the request of a mediation party, an individual who is
contract arising out of the mediation. requested to serve as mediator shall disclose his/her
qualifications to mediate a dispute.
(c) A mediator may not be compelled to provide
evidence of a mediation communication or This Act does not require that a mediator shall have special
testify in such proceeding. qualifications by background or profession unless the
special qualifications of a mediator are required in the
(d) If a mediation communication is not mediation agreement or by the mediation parties.
privileged under an exception in subsection (a)
or (b), only the portion of the communication SEC. 14. Participation in Mediation. - Except as otherwise
necessary for the application of the exception for provided in this Act, a party may designate a lawyer or any
nondisclosure may be admitted. The admission other person to provide assistance in the mediation. A
of particular evidence for the limited purpose of lawyer of this right shall be made in writing by the party
an exception does not render that evidence, or waiving it. A waiver of participation or legal representation
any other mediation communication, admissible may be rescinded at any time.
for any other purpose.
SEC. 15. Place of Mediation. - The parties are free to agree
SEC. 12. Prohibited Mediator Reports. - A mediator may on the place of mediation. Failing such agreement, the
not make a report, assessment, evaluation, place of mediation shall be any place convenient and
recommendation, finding, or other communication appropriate to all parties.
regarding a mediation to a court or agency or other
authority that make a ruling on a dispute that is the SEC. 16. Effect of Agreement to Submit Dispute to
subject of a mediation, except: Mediation Under Institutional Rules. - An agreement to
submit a dispute to mediation by any institution shall
(a) Where the mediation occurred or has include an agreement to be bound by the internal
terminated, or where a settlement was reached. mediation and administrative policies of such institution.
Further, an agreement to submit a dispute to mediation
(b) As permitted to be disclosed under Section under international mediation rule shall be deemed to
13 of this Chapter. include an agreement to have such rules govern the
mediation of the dispute and for the mediator, the parties,
SEC. 13. Mediator's Disclosure and Conflict of Interest. -
their respective counsel, and nonparty participants to
The mediation shall be guided by the following operative
abide by such rules.
principles:
In case of conflict between the institutional mediation
rules and the provisions of this Act, the latter shall prevail.

4
SEC. 17. Enforcement of Mediated Settlement arbitration shall be governed by the Model Law on
Agreement. - The mediation shall be guided by the International Commercial Arbitration (the "Model Law")
following operative principles: adopted by the United Nations Commission on
International Trade Law on June 21, 1985 (United Nations
(a) A settlement agreement following successful Document A/40/17) and recommended approved on
mediation shall be prepared by the parties with December 11, 1985, copy of which is hereto attached as
the assistance of their respective counsel, if any, Appendix "A".
and by the mediator.
SEC. 20. Interpretation of Model Law. - In interpreting the
The parties and their respective counsels shall Model Law, regard shall be had to its international origin
endeavor to make the terms and condition and to the need for uniformity in its interpretation and
thereof complete and make adequate provisions resort may be made to the travaux preparatories and the
for the contingency of breach to avoid conflicting report of the Secretary General of the United Nations
interpretations of the agreement. Commission on International Trade Law dated March 25,
1985 entitled, "International Commercial Arbitration:
(b) The parties and their respective counsels, if
Analytical Commentary on Draft Trade identified by
any, shall sign the settlement agreement. The
reference number A/CN. 9/264."
mediator shall certify that he/she explained the
contents of the settlement agreement to the SEC. 21. Commercial Arbitration. - An arbitration is
parties in a language known to them. "commercial" if it covers matters arising from all
relationships of a commercial nature, whether contractual
(c) If the parties so desire, they may deposit such
or not. Relationships of a transactions: any trade
settlement agreement with the appropriate
transaction for the supply or exchange of goods or
Clerk of a Regional Trial Court of the place where
services; distribution agreements; construction of works;
one of the parties resides. Where there is a need
commercial representation or agency; factoring; leasing,
to enforce the settlement agreement, a petition
consulting; engineering; licensing; investment; financing;
may be filed by any of the parties with the same
banking; insurance; joint venture and other forms of
court, in which case, the court shall proceed
industrial or business cooperation; carriage of goods or
summarily to hear the petition, in accordance
passengers by air, sea, rail or road.
with such rules of procedure as may be
promulgated by the Supreme Court. SEC. 22. Legal Representation in International
Arbitration. - In international arbitration conducted in the
(d) The parties may agree in the settlement
Philippines, a party may be presented by any person of his
agreement that the mediator shall become a
choice. Provided, that such representative, unless
sole arbitrator for the dispute and shall treat the
admitted to the practice of law in the Philippines, shall not
settlement agreement as an arbitral award
be authorized to appear as counsel in any Philippine court,
which shall be subject to enforcement under
or any other quasi-judicial body whether or not such
Republic Act No. 876, otherwise known as the
appearance is in relation to the arbitration in which he
Arbitration Law, notwithstanding the provisions
appears.
of Executive Order No. 1008 for mediated
dispute outside of the CIAC. SEC. 23. Confidential of Arbitration Proceedings. - The
arbitration proceedings, including the records, evidence
CHAPTER 3 - OTHER ADR FORMS
and the arbitral award, shall be considered confidential
SEC. 18. Referral of Dispute to other ADR Forms. - The and shall not be published except (1) with the consent of
parties may agree to refer one or more or all issues arising the parties, or (2) for the limited purpose of disclosing to
in a dispute or during its pendency to other forms of ADR the court of relevant documents in cases where resort to
such as but not limited to (a) the evaluation of a third the court is allowed herein. Provided, however, that the
person or (b) a mini-trial, (c) mediation-arbitration, or a court in which the action or the appeal is pending may
combination thereof. issue a protective order to prevent or prohibit disclosure
of documents or information containing secret processes,
For purposes of this Act, the use of other ADR forms shall developments, research and other information where it is
be governed by Chapter 2 of this Act except where it is shown that the applicant shall be materially prejudiced by
combined with arbitration in which case it shall likewise be an authorized disclosure thereof.
governed by Chapter 5 of this Act.
SEC. 24. Referral to Arbitration. - A court before which an
CHAPTER 4 - INTERNATIONAL COMMERCIAL action is brought in a matter which is the subject matter of
ARBITRATION an arbitration agreement shall, if at least one party so
requests not later that the pre-trial conference, or upon
SEC. 19. Adoption of the Model Law on International the request of both parties thereafter, refer the parties to
Commercial Arbitration. - International commercial

5
arbitration unless it finds that the arbitration agreement is (1) Any party may request that
null and void, inoperative or incapable of being performed. provision relief be granted against the
adverse party:
SEC. 25. Interpretation of the Act. - In interpreting the Act,
the court shall have due regard to the policy of the law in (2) Such relief may be granted:
favor of arbitration. Where action is commenced by or
against multiple parties, one or more of whom are parties (i) to prevent irreparable loss
who are bound by the arbitration agreement although the or injury:
civil action may continue as to those who are not bound by
(ii) to provide security for the
such arbitration agreement.
performance of any
SEC. 26. Meaning of "Appointing Authority.". - obligation;
"Appointing Authority" as used in the Model Law shall
(iii) to produce or preserve
mean the person or institution named in the arbitration
any evidence; or
agreement as the appointing authority; or the regular
arbitration arbitration institution under whose rules the (iv) to compel any other
arbitration is agreed to be conducted. Where the parties appropriate act or omission.
have agreed to submit their dispute to institutional
arbitration rules, and unless they have agreed to a (3) The order granting provisional relief
different procedure, they shall be deemed to have agreed may be conditioned upon the provision
to procedure under such arbitration rules for the selection of security or any act or omission
and appointment of arbitrators. In ad hoc arbitration, the specified in the order.
default appointment of an arbitrator shall be made by the
National President of the Integrated Bar of the Philippines (4) Interim or provisional relief is
(IBP) or his duly authorized representative. requested by written application
transmitted by reasonable means to
SEC. 27. What Functions May be Performed by Appointing the Court or arbitral tribunal as the
Authority. - The functions referred to in Articles 11(3), case may be and the party against
11(4), 13(3) and 14(1) of the Model Law shall be whom the relief is sought, describing in
performed by the Appointing Authority, unless the latter appropriate detail the precise relief,
shall fail or refuse to act within thirty (30) days from the party against whom the relief is
receipt of the request in which case the applicant may requested, the grounds for the relief,
renew the application with the Court. and evidence supporting the request.

SEC. 28. Grant of Interim Measure of Protection. - (5) The order shall be binding upon the
parties.
(a) It is not incompatible with an arbitration
agreement for a party to request, before (6) Either party may apply with the
constitution of the tribunal, from a Court an Court for assistance in Implementing
interim measure of protection and for the Court or enforcing an interim measure
to grant such measure. After constitution of the ordered by an arbitral tribunal.
arbitral tribunal and during arbitral proceedings,
a request for an interim measure of protection (7) A party who does not comply with
or modification thereof, may be made with the the order shall be liable for all damages
arbitral tribunal or to the extent that the arbitral resulting from noncompliance,
tribunal has no power to act or is unable to act including all expenses, and reasonable
effectively, the request may be made with the attorney's fees, paid in obtaining the
Court. The arbitral tribunal is deemed order's judicial enforcement.
constituted when the sole arbitrator or the third SEC. 29. Further Authority for Arbitrator to Grant Interim
arbitrator who has been nominated, has Measure of Protection. - Unless otherwise agreed by the
accepted the nomination and written parties, the arbitral tribunal may, at the request of a party,
communication of said nomination and order any party to take such interim measures of
acceptance has been received by the party protection as the arbitral tribunal may consider necessary
making request. in respect of the subject matter of the dispute following
(b) The following rules on interim or provisional the rules in Section 28, paragraph 2. Such interim
relief shall be observed: measures may include but shall not be limited to
preliminary injuction directed against a party,
appointment of receivers or detention, preservation,
inspection of property that is the subject of the dispute in

6
arbitration. Either party may apply with the Court for parties to, or who are otherwise bound by, an arbitration
assistance in implementing or enforcing an interim agreement, directly or by reference whether such parties
measures ordered by an arbitral tribunal. are project owner, contractor, subcontractor, quantity
surveyor, bondsman or issuer of an insurance policy in a
SEC. 30. Place of Arbitration. - The parties are free to construction project.
agree on the place of arbitration. Failing such agreement,
the place of arbitration shall be in Metro Manila, unless The Commission shall continue to exercise original and
the arbitral tribunal, having regard to the circumstances of exclusive jurisdiction over construction disputes although
the case, including the convenience of the parties shall the arbitration is "commercial" pursuant to Section 21 of
decide on a different place of arbitration. this Act.

The arbitral tribunal may, unless otherwise agreed by the SEC. 36. Authority to Act as Mediator or Arbitrator. - By
parties, meet at any place it considers appropriate for written agreement of the parties to a dispute, an
consultation among its members, for hearing witnesses, arbitrator may act as mediator and a mediator may act as
experts, or the parties, or for inspection of goods, other arbitrator. The parties may also agree in writing that,
property or documents. following a successful mediation, the mediator shall issue
the settlement agreement in the form of an arbitral award.
SEC. 31. Language of the Arbitration. - The parties are
free to agree on the language or languages to be used in SEC. 37. Appointment of Foreign Arbitrator. - The
the arbitral proceedings. Failing such agreement, the Construction Industry Arbitration Commission (CIAC) shall
language to be used shall be English in international promulgate rules to allow for the appointment of a foreign
arbitration, and English or Filipino for domestic arbitration, arbitrator or coarbitrator or chairman of a tribunal a
unless the arbitral tribunal shall determine a different or person who has not been previously accredited by CIAC:
another language or languages to be used in the Provided, That:
proceedings. This agreement or determination, unless
otherwise specified therein, shall apply to any written (a) the dispute is a construction dispute in which
statement by a party, any hearing and any award, decision one party is an international party
or other communication by the arbitral tribunal.
(b) the person to be appointed agreed to abide
The arbitral tribunal may order that any documentary by the arbitration rules and policies of CIAC;
evidence shall be accompanied by a translation into the
(c) he/she is either coarbitrator upon the
language or languages agreed upon by the parties or
nomination of the international party; or he/she
determined in accordance with paragraph 1 of this section.
is the common choice of the two CIAC-
CHAPTER 5 - DOMESTIC ARBITRATION accredited arbitrators first appointed one of
whom was nominated by the international party;
SEC. 32. Law Governing Domestic Arbitration. - Domestic and
arbitration shall continue to be governed by Republic Act
No. 876, otherwise known as "The Arbitration Law" as (d) the foreign arbitrator shall be of different
amended by this Chapter. The term "domestic arbitration" nationality from the international party.
as used herein shall mean an arbitration that is not
SEC. 38. Applicability to Construction Arbitration. - The
international as defined in Article (3) of the Model Law.
provisions of Sections 17 (d) of Chapter 2, and Section 28
SEC. 33. Applicability to Domestic Arbitration. - Article 8, and 29 of this Act shall apply to arbitration of construction
10, 11, 12, 13, 14, 18 and 19 and 29 to 32 of the Model disputes covered by this Chapter.
Law and Section 22 to 31 of the preceding Chapter 4 shall
SEC. 39. Court to Dismiss Case Involving a Construction
apply to domestic arbitration.
Dispute. - A regional trial court which a construction
dispute is filed shall, upon becoming aware, not later than
the pretrial conference, that the parties had entered into
CHAPTER 6 - ARBITRATION OF CONSTRUCTION DISPUTES an arbitration to be conducted by the CIAC, unless both
parties, assisted by their respective counsel, shall submit
SEC. 34. Arbitration of Construction Disputes: Governing to the regional trial court a written agreement exclusive
Law. - The arbitration of construction disputes shall be for the Court, rather than the CIAC, to resolve the dispute.
governed by Executive Order No. 1008, otherwise known
as the Constitution Industry Arbitration Law. CHAPTER 7 - JUDICIAL REVIEW OF ARBITRAL AWARDS

SEC. 35. Coverage of the Law. - Construction disputes A. DOMESTIC AWARDS

which fall within the original and exclusive jurisdiction of
the Construction Industry Arbitration Commission (the SEC. 40. Confirmation of Award. - The confirmation of a
"Commission") shall include those between or among domestic arbitral award shall be governed by Section 23 of
R.A. 876.

7
A domestic arbitral award when confirmed shall be foreign country, shall be recognized and enforced as a
enforced in the same manner as final and executory foreign arbitral award and not a judgment of a foreign
decisions of the Regional Trial Court. court.

The confirmation of a domestic award shall be made by A foreign arbitral award, when confirmed by the regional
the regional trial court in accordance with the Rules of trial court, shall be enforced as a foreign arbitral award
Procedure to be promulgated by the Supreme Court. and not as a judgment of a foreign court.

A CIAC arbitral award need not be confirmed by the A foreign arbitral award, when confirmed by the regional
regional trial court to be executory as provided under E.O. trial court, shall be enforced in the same manner as final
No. 1008. and executory decisions of courts of law of the Philippines.

SEC. 41. Vacation Award. - A party to a domestic SEC. 45. Rejection of a Foreign Arbitral Award. - A party to
arbitration may question the arbitral award with the a foreign arbitration proceeding may oppose an
appropriate regional trial court in accordance with the application for recognition and enforcement of the arbitral
rules of procedure to be promulgated by the Supreme award in accordance with the procedural rules to be
Court only on those grounds enumerated in Section 25 of promulgated by the Supreme Court only on those grounds
Republic Act No. 876. Any other ground raised against a enumerated under Article V of the New York Convention.
domestic arbitral award shall be disregarded by the Any other ground raised shall be disregarded by the
regional trial court. regional trial court.

B. FOREIGN ARBITRAL AWARDS SEC. 46. Appeal from Court Decisions on Arbitral
Awards. - A decision of the regional trial court confirming,
SEC. 42. Application of the New York Convention. - The vacating, setting aside, modifying or correcting an arbitral
New York Convention shall govern the recognition and award may be appealed to the Court of Appeals in
enforcement of arbitral awards covered by the said accordance with the rules of procedure to be promulgated
Convention. by the Supreme Court.
The recognition and enforcement of such arbitral awards The losing party who appeals from the judgment of the
shall be filled with regional trial court in accordance with court confirming an arbitral award shall required by the
the rules of procedure to be promulgated by the Supreme appealant court to post counterbond executed in favor of
Court. Said procedural rules shall provide that the party the prevailing party equal to the amount of the award in
relying on the award or applying for its enforcement shall accordance with the rules to be promulgated by the
file with the court the original or authenticated copy of the Supreme Court.
award and the arbitration agreement. If the award or
agreement is not made in any of the official languages, the SEC. 47. Venue and Jurisdiction. - Proceedings for
party shall supply a duly certified translation thereof into recognition and enforcement of an arbitration agreement
any of such languages. or for vacation, setting aside, correction or modification of
an arbitral award, and any application with a court for
The applicant shall establish that the country in which arbitration assistance and supervision shall be deemed as
foreign arbitration award was made is a party to the New special proceedings and shall be filled with the regional
York Convention. trial court (i) where arbitration proceedings are conducted;
(ii) where the asset to be attached or levied upon, or the
If the application for rejection or suspension of
act to be enjoined is located; (iii) where any of the parties
enforcement of an award has been made, the regional trial
to the dispute resides or has his place of business; or (iv) in
court may, if it considers it proper, vacate its decision and
the National Judicial Capital Region, at the option of the
may also, on the application of the party claiming
applicant.
recognition or enforcement of the award, order the party
to provide appropriate security. SEC. 48. Notice of Proceeding to Parties. - In a special
proceeding for recognition and enforcement of an arbitral
SEC. 43. Recognition and Enforcement of Foreign Arbitral
award, the Court shall send notice to the parties at their
Awards Not Covered by the New York Convention. - The
address of record in the arbitration, or if any party cannot
recognition and enforcement of foreign arbitral awards
be served notice at such address, at such party's last
not covered by the New York Convention shall be done in
known address. The notice shall be sent at least fifteen
accordance with procedural rules to be promulgated by
(15) days before the date set for the initial hearing of the
the Supreme Court. The Court may, grounds of comity and
application.
reciprocity, recognize and enforce a nonconvention award
as a convention award. CHAPTER 8 - MISCELLANEOUS PROVISIONS
SEC. 44. Foreign Arbitral Award Not Foreign Judgment. - SEC. 49. Office for Alternative Dispute Resolution. - There
A foreign arbitral award when confirmed by a court of a is hereby established the Office for Alternative Dispute

8
Resolution as an attached agency to the Department of (f) A representative from the mediation
Justice (DOJ) which shall have a Secretariat to be headed profession; and
by an executive director. The executive director shall be
appointed by the President of the Philippines. (g) A representative from the ADR organizations

The objective of the office are: shall within three (3) months after convening, submit the
IRR to the Joint Congressional Oversight Committee for
(a) to promote, develop and expand the use of review and approval. The Oversight Committee shall be
ADR in the private and public sectors; and composed of the chairman of the Senate Committee on
Justice and Human Rights, chairman of the House
To assist the government to monitor, study and evaluate Committee on Justice, and one (1) member each from the
the use by the public and the private sector of ADR, and majority and minority of both Houses.
recommend to Congress needful statutory changes to
develop. Strengthen and improve ADR practices in The Joint Oversight Committee shall become functus
accordance with world standards. officio upon approval of the IRR.

SEC. 50. Powers and Functions of the Office for SEC. 53. Applicability of the Katarungan Pambarangay. -
Alternative Dispute Resolution. - The Office for Alternative This Act shall not be interpreted to repeal, amend or
Dispute Resolution shall have the following powers and modify the jurisdiction of the Katarungan Pambarangay
functions: under Republic Act No. 7160, otherwise known as the
Local Government Code of 1991.
(a) To formulate standards for the training of the
ADR practitioners and service providers; SEC. 54. Repealing Clause. - All laws, decrees, executive
orders, rules and regulations which are inconsistent with
(b) To certify that such ADR practitioners and the provisions of this Act are hereby repealed, amended or
ADR service providers have undergone the modified accordingly.
professional training provided by the office;
SEC. 55. Separability Clause. - If for any reason or reasons,
(c) To coordinate the development, any portion or provision of this Act shall be held
implementation, monitoring, and evaluation of unconstitutional or invalid, all other parts or provisions not
government ADR programs; affected shall thereby continue to remain in full force and
effect.
(d) To charge fees for their services; and
SEC. 56. Effectivity. - This act shall take effect fifteen days
(e) To perform such acts as may be necessary to
(15) after its publication in at least two (2) national
carry into effect the provisions of this Act.
newspapers of general circulation.
SEC. 51. Appropriations. - The amount necessary to carry
out the provisions of this Act shall be included in the
General Appropriations Act of the year following its
enactment into law and thereafter.

SEC. 52. Implementing Rules and Regulations (IRR). -

Within one (1) month after the approval of this Act, the REPUBLIC ACT NO. 876
secretary of justice shall convene a committee that shall
formulate the appropriate rules and regulations necessary AN ACT TO AUTHORIZE THE MAKING OF ARBITRATION
for the implementation of this Act. The committee, AND SUBMISSION AGREEMENTS, TO PROVIDE FOR THE
composed of representatives from: APPOINTMENT OF ARBITRATORS AND THE PROCEDURE
FOR ARBITRATION IN CIVIL CONTROVERSIES, AND FOR
(a) the Department of Justice; OTHER PURPOSES

(b) the Department of Trade and Industry; Section 1. Short Title. - This Act shall be known as "The
Arbitration Law."
(c) the Department of the Interior and Local
Government; Section 2. Persons and matters subject to arbitration. -
Two or more persons or parties may submit to the
(d) the president of the Integrated Bar of the arbitration of one or more arbitrators any controversy
Philippines; existing between them at the time of the submission and
which may be the subject of an action, or the parties to
(e) A representative from the arbitration
any contract may in such contract agree to settle by
profession; and
arbitration a controversy thereafter arising between them.
Such submission or contract shall be valid, enforceable and

9
irrevocable, save upon such grounds as exist at law for the selected by each party, the demand shall name
revocation of any contract. the arbitrator appointed by the party making the
demand; and shall require that the party upon
Such submission or contract may include question arising whom the demand is made shall within fifteen
out of valuations, appraisals or other controversies which days after receipt thereof advise in writing the
may be collateral, incidental, precedent or subsequent to party making such demand of the name of the
any issue between the parties. person appointed by the second party; such
notice shall require that the two arbitrators so
A controversy cannot be arbitrated where one of the
appointed must agree upon the third arbitrator
parties to controversy is an infant, or a person judicially
within ten days from the date of such notice.
declared to be incompetent, unless the appropriate court
having jurisdiction approve a petition for permission to (b) In the event that one party defaults in
submit such controversy to arbitration made by the answering the demand, the aggrieved party may
general guardian or guardian ad litem of the infant or of file with the Clerk of the Court of First Instance
the incompetent. having jurisdiction over the parties, a copy of the
demand for arbitration under the contract to
But where a person capable of entering into a submission
arbitrate, with a notice that the original demand
or contract has knowingly entered into the same with a
was sent by registered mail or delivered in
person incapable of so doing, the objection on the ground
person to the party against whom the claim is
of incapacity can be taken only in behalf of the person so
asserted. Such demand shall set forth the nature
incapacitated.
of the controversy, the amount involved, if any,
Section 3. Controversies or cases not subject to the and the relief sought, and shall be accompanied
provisions of this Act. - This Act shall not apply to by a true copy of the contract providing for
controversies and to cases which are subject to the arbitration.
jurisdiction of the Court of Industrial Relations or which
(c) In the case of the submission of an existing
have been submitted to it as provided by Commonwealth
controversy by the filing with the Clerk of the
Act Numbered One hundred and three, as amended.
Court of First Instance having jurisdiction, of the
Section 4. Form of arbitration agreement. - A contract to submission agreement, setting forth the nature
arbitrate a controversy thereafter arising between the of the controversy, and the amount involved, if
parties, as well as a submission to arbitrate an existing any. Such submission may be filed by any party
controversy shall be in writing and subscribed by the party and shall be duly executed by both parties.
sought to be charged, or by his lawful agent.
(d) In the event that one party neglects, fails or
The making of a contract or submission for arbitration refuses to arbitrate under a submission
described in section two hereof, providing for arbitration agreement, the aggrieved party shall follow the
of any controversy, shall be deemed a consent of the procedure prescribed in subparagraphs (a) and
parties to the jurisdiction of the Court of First Instance of (b) of this section.
the province or city where any of the parties resides, to
Section 6. Hearing by court. - A party aggrieved by the
enforce such contract or submission.
failure, neglect or refusal of another to perform under an
Section 5. Preliminary procedure. - An arbitration shall be agreement in writing providing for arbitration may petition
instituted by: the court for an order directing that such arbitration
proceed in the manner provided for in such agreement.
(a) In the case of a contract to arbitrate future Five days notice in writing of the hearing of such
controversies by the service by either party upon application shall be served either personally or by
the other of a demand for arbitration in registered mail upon the party in default. The court shall
accordance with the contract. Such demand shall hear the parties, and upon being satisfied that the making
be set forth the nature of the controversy, the of the agreement or such failure to comply therewith is
amount involved, if any, and the relief sought, not in issue, shall make an order directing the parties to
together with a true copy of the contract proceed to arbitration in accordance with the terms of the
providing for arbitration. The demand shall be agreement. If the making of the agreement or default be in
served upon any party either in person or by issue the court shall proceed to summarily hear such issue.
registered mail. In the event that the contract If the finding be that no agreement in writing providing for
between the parties provides for the arbitration was made, or that there is no default in the
appointment of a single arbitrator, the demand proceeding thereunder, the proceeding shall be dismissed.
shall be set forth a specific time within which the If the finding be that a written provision for arbitration was
parties shall agree upon such arbitrator. If the made and there is a default in proceeding thereunder, an
contract between the parties provides for the order shall be made summarily directing the parties to
appointment of three arbitrators, one to be

10
proceed with the arbitration in accordance with the terms arbitrator or arbitrators who decline or failed to
thereof. accept his or their appointments.

The court shall decide all motions, petitions or applications Section 9. Appointment of additional arbitrators. - Where
filed under the provisions of this Act, within ten days after a submission or contract provides that two or more
such motions, petitions, or applications have been heard arbitrators therein designated or to be thereafter
by it. appointed by the parties, may select or appoint a person
as an additional arbitrator, the selection or appointment
Section 7. Stay of civil action. - If any suit or proceeding be must be in writing. Such additional arbitrator must sit with
brought upon an issue arising out of an agreement the original arbitrators upon the hearing.
providing for the arbitration thereof, the court in which
such suit or proceeding is pending, upon being satisfied Section 10. Qualifications of arbitrators. - Any person
that the issue involved in such suit or proceeding is appointed to serve as an arbitrator must be of legal age, in
referable to arbitration, shall stay the action or proceeding full-enjoyment of his civil rights and know how to read and
until an arbitration has been had in accordance with the write. No person appointed to served as an arbitrator shall
terms of the agreement: Provided, That the applicant, for be related by blood or marriage within the sixth degree to
the stay is not in default in proceeding with such either party to the controversy. No person shall serve as
arbitration. an arbitrator in any proceeding if he has or has had
financial, fiduciary or other interest in the controversy or
Section 8. Appointment of arbitrators. - If, in the contract cause to be decided or in the result of the proceeding, or
for arbitration or in the submission described in section has any personal bias, which might prejudice the right of
two, provision is made for a method of naming or any party to a fair and impartial award.
appointing an arbitrator or arbitrators, such method shall
be followed; but if no method be provided therein the No party shall select as an arbitrator any person to act as
Court of First Instance shall designate an arbitrator or his champion or to advocate his cause.
arbitrators.
If, after appointment but before or during hearing, a
The Court of First Instance shall appoint an arbitrator or person appointed to serve as an arbitrator shall discover
arbitrators, as the case may be, in the following instances: any circumstances likely to create a presumption of bias,
or which he believes might disqualify him as an impartial
(a) If the parties to the contract or submission arbitrator, the arbitrator shall immediately disclose such
are unable to agree upon a single arbitrator; or information to the parties. Thereafter the parties may
agree in writing:
(b) If an arbitrator appointed by the parties is
unwilling or unable to serve, and his successor (a) to waive the presumptive disqualifying
has not been appointed in the manner in which circumstances; or
he was appointed; or
(b) to declare the office of such arbitrator
(c) If either party to the contract fails or refuses vacant. Any such vacancy shall be filled in the
to name his arbitrator within fifteen days after same manner as the original appointment was
receipt of the demand for arbitration; or made.
(d) If the arbitrators appointed by each party to Section 11. Challenge of arbitrators. - The arbitrators may
the contract, or appointed by one party to the be challenged only for the reasons mentioned in the
contract and by the proper Court, shall fail to preceding section which may have arisen after the
agree upon or to select the third arbitrator. arbitration agreement or were unknown at the time of
arbitration.
(e) The court shall, in its discretion appoint one
or three arbitrators, according to the importance The challenge shall be made before them.
of the controversy involved in any of the
preceding cases in which the agreement is silent If they do not yield to the challenge, the challenging party
as to the number of arbitrators. may renew the challenge before the Court of First Instance
of the province or city in which the challenged arbitrator,
(f) Arbitrators appointed under this section shall or, any of them, if there be more than one, resides. While
either accept or decline their appointments the challenging incident is discussed before the court, the
within seven days of the receipt of their hearing or arbitration shall be suspended, and it shall be
appointments. In case of declination or the continued immediately after the court has delivered an
failure of an arbitrator or arbitrators to duly order on the challenging incident.
accept their appointments the parties or the
court, as the case may be, shall proceed to Section 12. Procedure by arbitrators. - Subject to the terms
appoint a substitute or substitutes for the of the submission or contract, if any are specified therein,

11
are arbitrators selected as prescribed herein must, within the testimony and the materiality thereof has been
five days after appointment if the parties to the demonstrated to the arbitrators. Arbitrators may also
controversy reside within the same city or province, or require the retirement of any witness during the testimony
within fifteen days after appointment if the parties reside of any other witness. All of the arbitrators appointed in
in different provinces, set a time and place for the hearing any controversy must attend all the hearings in that
of the matters submitted to them, and must cause notice matter and hear all the allegations and proofs of the
thereof to be given to each of the parties. The hearing can parties; but an award by the majority of them is valid
be postponed or adjourned by the arbitrators only by unless the concurrence of all of them is expressly required
agreement of the parties; otherwise, adjournment may be in the submission or contract to arbitrate. The arbitrator or
ordered by the arbitrators upon their own motion only at arbitrators shall have the power at any time, before
the hearing and for good and sufficient cause. No rendering the award, without prejudice to the rights of any
adjournment shall extend the hearing beyond the day party to petition the court to take measures to safeguard
fixed in the submission or contract for rendering the and/or conserve any matter which is the subject of the
award, unless the time so fixed is extended by the written dispute in arbitration.
agreement of the parties to the submission or contract or
their attorneys, or unless the parties have continued with Section 15. Hearing by arbitrators. - Arbitrators may, at
the arbitration without objection to such adjournment. the commencement of the hearing, ask both parties for
brief statements of the issues in controversy and/or an
The hearing may proceed in the absence of any party who, agreed statement of facts. Thereafter the parties may
after due notice, fails to be present at such hearing or fails offer such evidence as they desire, and shall produce such
to obtain an adjournment thereof. An award shall not be additional evidence as the arbitrators shall require or
made solely on the default of a party. The arbitrators shall deem necessary to an understanding and determination of
require the other party to submit such evidence as they the dispute. The arbitrators shall be the sole judge of the
may require for making an award. relevancy and materiality of the evidence offered or
produced, and shall not be bound to conform to the Rules
No one other than a party to said arbitration, or a person of Court pertaining to evidence. Arbitrators shall receive as
in the regular employ of such party duly authorized in exhibits in evidence any document which the parties may
writing by said party, or a practicing attorney-at-law, shall wish to submit and the exhibits shall be properly identified
be permitted by the arbitrators to represent before him or at the time of submission. All exhibits shall remain in the
them any party to the arbitration. Any party desiring to be custody of the Clerk of Court during the course of the
represented by counsel shall notify the other party or arbitration and shall be returned to the parties at the time
parties of such intention at least five days prior to the the award is made. The arbitrators may make an ocular
hearing. inspection of any matter or premises which are in dispute,
but such inspection shall be made only in the presence of
The arbitrators shall arrange for the taking of a
all parties to the arbitration, unless any party who shall
stenographic record of the testimony when such a record
have received notice thereof fails to appear, in which
is requested by one or more parties, and when payment of
event such inspection shall be made in the absence of such
the cost thereof is assumed by such party or parties.
party.
Persons having a direct interest in the controversy which is
Section 16. Briefs. - At the close of the hearings, the
the subject of arbitration shall have the right to attend any
arbitrators shall specifically inquire of all parties whether
hearing; but the attendance of any other person shall be at
they have any further proof or witnesses to present; upon
the discretion of the arbitrators.
the receipt of a negative reply from all parties, the
Section 13. Oath of arbitrators. - Before hearing any arbitrators shall declare the hearing closed unless the
testimony, arbitrators must be sworn, by any officer parties have signified an intention to file briefs. Then the
authorized by law to administer an oath, faithfully and hearing shall be closed by the arbitrations after the receipt
fairly to hear and examine the matters in controversy and of briefs and/or reply briefs. Definite time limit for the
to make a just award according to the best of their ability filing of such briefs must be fixed by the arbitrators at the
and understanding. Arbitrators shall have the power to close of the hearing. Briefs may filed by the parties within
administer the oaths to all witnesses requiring them to tell fifteen days after the close of the oral hearings; the reply
the whole truth and nothing but the truth in any testimony briefs, if any, shall be filed within five days following such
which they may give in any arbitration hearing. This oath fifteen-day period.
shall be required of every witness before any of his
Section 17. Reopening of hearing. - The hearing may be
testimony is heard.
reopened by the arbitrators on their own motion or upon
Section 14. Subpoena and subpoena duces tecum. - the request of any party, upon good cause, shown at any
Arbitrators shall have the power to require any person to time before the award is rendered. When hearings are
attend a hearing as a witness. They shall have the power to thus reopened the effective date for the closing of the
subpoena witnesses and documents when the relevancy of

12
hearings shall be the date of the closing of the reopened Section 21. Fees of arbitration. - The fees of the arbitrators
hearing. shall be fifty pesos per day unless the parties agree
otherwise in writing prior to the arbitration.
Section 18. Proceeding in lieu of hearing. - The parties to a
submission or contract to arbitrate may, by written Section 22. Arbitration deemed a special proceeding. -
agreement, submit their dispute to arbitration by other Arbitration under a contract or submission shall be
than oral hearing. The parties may submit an agreed deemed a special proceeding, of which the court specified
statement of facts. They may also submit their respective in the contract or submission, or if none be specified, the
contentions to the duly appointed arbitrators in writing; Court of First Instance for the province or city in which one
this shall include a statement of facts, together with all of the parties resides or is doing business, or in which the
documentary proof. Parties may also submit a written arbitration was held, shall have jurisdiction. Any
argument. Each party shall provide all other parties to the application to the court, or a judge thereof, hereunder
dispute with a copy of all statements and documents shall be made in manner provided for the making and
submitted to the arbitrators. Each party shall have an hearing of motions, except as otherwise herein expressly
opportunity to reply in writing to any other party's provided.
statements and proofs; but if such party fails to do so
within seven days after receipt of such statements and Section 23. Confirmation of award. - At any time within
proofs, he shall be deemed to have waived his right to one month after the award is made, any party to the
reply. Upon the delivery to the arbitrators of all controversy which was arbitrated may apply to the court
statements and documents, together with any reply having jurisdiction, as provided in section twenty-eight, for
statements, the arbitrators shall declare the proceedings an order confirming the award; and thereupon the court
in lieu of hearing closed. must grant such order unless the award is vacated,
modified or corrected, as prescribed herein. Notice of such
Section 19. Time for rendering award. - Unless the parties motion must be served upon the adverse party or his
shall have stipulated by written agreement the time within attorney as prescribed by law for the service of such notice
which the arbitrators must render their award, the written upon an attorney in action in the same court.
award of the arbitrators shall be rendered within thirty
days after the closing of the hearings or if the oral hearings Section 24. Grounds for vacating award. - In any one of the
shall have been waived, within thirty days after the following cases, the court must make an order vacating the
arbitrators shall have declared such proceedings in lieu of award upon the petition of any party to the controversy
hearing closed. This period may be extended by mutual when such party proves affirmatively that in the
consent of the parties.alf-itc arbitration proceedings:

Section 20. Form and contents of award. - The award must (a) The award was procured by corruption, fraud,
be made in writing and signed and acknowledged by a or other undue means; or
majority of the arbitrators, if more than one; and by the
(b) That there was evident partiality or
sole arbitrator, if there is only one. Each party shall be
corruption in the arbitrators or any of them; or
furnished with a copy of the award. The arbitrators in their
award may grant any remedy or relief which they deem (c) That the arbitrators were guilty of misconduct
just and equitable and within the scope of the agreement in refusing to postpone the hearing upon
of the parties, which shall include, but not be limited to, sufficient cause shown, or in refusing to hear
the specific performance of a contract. evidence pertinent and material to the
controversy; that one or more of the arbitrators
In the event that the parties to an arbitration have, during
was disqualified to act as such under section
the course of such arbitration, settled their dispute, they
nine hereof, and wilfully refrained from
may request of the arbitrators that such settlement be
disclosing such disqualifications or of any other
embodied in an award which shall be signed by the
misbehavior by which the rights of any party
arbitrators. No arbitrator shall act as a mediator in any
have been materially prejudiced; or
proceeding in which he is acting as arbitrator; and all
negotiations towards settlement of the dispute must take (d) That the arbitrators exceeded their powers,
place without the presence of the arbitrators. or so imperfectly executed them, that a mutual,
final and definite award upon the subject matter
The arbitrators shall have the power to decide only those
submitted to them was not made.
matters which have been submitted to them. The terms of
the award shall be confined to such disputes. Where an award is vacated, the court, in its discretion,
may direct a new hearing either before the same
The arbitrators shall have the power to assess in their
arbitrators or before a new arbitrator or arbitrators to be
award the expenses of any party against another party,
chosen in the manner provided in the submission or
when such assessment shall be deemed necessary.
contract for the selection of the original arbitrator or
arbitrators, and any provision limiting the time in which

13
the arbitrators may make a decision shall be deemed written extension of the time, if any, within which to make
applicable to the new arbitration and to commence from the award.
the date of the court's order.
(b) A verified of the award.
Where the court vacates an award, costs, not exceeding
fifty pesos and disbursements may be awarded to the (c) Each notice, affidavit, or other paper used upon the
prevailing party and the payment thereof may be enforced application to confirm, modify, correct or vacate such
in like manner as the payment of costs upon the motion in award, and a copy of each of the court upon such
an action. application.

Section 25. Grounds for modifying or correcting award. - In The judgment shall be docketed as if it were rendered in
any one of the following cases, the court must make an an action.
order modifying or correcting the award, upon the
The judgment so entered shall have the same force and
application of any party to the controversy which was
effect in all respects, as, and be subject to all the
arbitrated:
provisions relating to, a judgment in an action; and it may
(a) Where there was an evident miscalculation of be enforced as if it had been rendered in the court in
figures, or an evident mistake in the description which it is entered.
of any person, thing or property referred to in
Section 29. Appeals. - An appeal may be taken from an
the award; or
order made in a proceeding under this Act, or from a
(b) Where the arbitrators have awarded upon a judgment entered upon an award through certiorari
matter not submitted to them, not affecting the proceedings, but such appeals shall be limited to questions
merits of the decision upon the matter of law. The proceedings upon such an appeal, including the
submitted; or judgment thereon shall be governed by the Rules of Court
in so far as they are applicable.
(c) Where the award is imperfect in a matter of
form not affecting the merits of the controversy, Section 30. Death of party. - Where a party dies after
and if it had been a commissioner's report, the making a submission or a contract to arbitrate as
defect could have been amended or disregarded prescribed in this Act, the proceedings may be begun or
by the court. continued upon the application of, or notice to, his
executor or administrator, or temporary administrator of
The order may modify and correct the award so as to his estate. In any such case, the court may issue an order
effect the intent thereof and promote justice between the extending the time within which notice of a motion to
parties. confirm, vacate, modify or correct an award must be
served. Upon confirming an award, where a party has died
Section 26. Motion to vacate, modify or correct award: since it was filed or delivered, the court must enter
when made. - Notice of a motion to vacate, modify or judgment in the name of the original party; and the
correct the award must be served upon the adverse party proceedings thereupon are the same as where a party dies
or his counsel within thirty days after award is filed or after a verdict.
delivered, as prescribed by law for the service upon an
attorney in an action. Section 31. Repealing clause. - The provisions of chapters
one and two, Title XIV, of the Civil Code shall remain in
Section 27. Judgment. - Upon the granting of an order force. All other laws and parts of laws inconsistent with
confirming, modifying or correcting an award, judgment this Act are hereby repealed. If any provision of this Act
may be entered in conformity therewith in the court shall be held invalid the remainder that shall not be
wherein said application was filed. Costs of the application affected thereby.
and the proceedings subsequent thereto may be awarded
by the court in its discretion. If awarded, the amount Section 32. Effectivity. - This Act shall take effect six
thereof must be included in the judgment. months after its approval.

Section 28. Papers to accompany motion to confirm, Approved: June 19, 1953
modify, correct, or vacate award. - The party moving for an
order confirming, modifying, correcting, or vacating an Arts. 2028-2046, R.A. No. 386 (Civil Code of the
award, shall at the time that such motion is filed with the Philippines)
court for the entry of judgment thereon also file the
following papers with the Clerk of Court; TITLE XIV

(a) The submission, or contract to arbitrate; the Compromises and Arbitrations

appointment of the arbitrator or arbitrators; and each CHAPTER 1-Compromises

14
ARTICLE 2028. A compromise is a contract whereby the A general renunciation of rights is understood to refer only
parties, by making reciprocal concessions, avoid a litigation to those that are connected with the dispute which was
or put an end to one already commenced. (1809a) the subject of the compromise. (1815)

ARTICLE 2029. The court shall endeavor to persuade the ARTICLE 2037. A compromise has upon the parties the
litigants in a civil case to agree upon some fair effect and authority of res judicata; but there shall be no
compromise. (n) execution except in compliance with a judicial
compromise. (1816)
ARTICLE 2030. Every civil action or proceeding shall be
suspended: ARTICLE 2038. A compromise in which there is mistake,
fraud, violence, intimidation, undue influence, or falsity of
(1) If willingness to discuss a possible compromise is documents, is subject to the provisions of article 1330 of
expressed by one or both parties; or this Code.
(2) If it appears that one of the parties, before the However, one of the parties cannot set up a mistake of
commencement of the action or proceeding, offered to fact as against the other if the latter, by virtue of the
discuss a possible compromise but the other party refused compromise, has withdrawn from a litigation already
the offer. commenced. (1817a)
The duration and terms of the suspension of the civil ARTICLE 2039. When the parties compromise generally on
action or proceeding and similar matters shall be governed all differences which they might have with each other, the
by such provisions of the rules of court as the Supreme discovery of documents referring to one or more but not
Court shall promulgate. Said rules of court shall likewise to all of the questions settled shall not itself be a cause for
provide for the appointment and duties of amicable annulment or rescission of the compromise, unless said
compounders. (n) documents have been concealed by one of the parties.
ARTICLE 2031. The courts may mitigate the damages to be But the compromise may be annulled or rescinded if it
paid by the losing party who has shown a sincere desire for refers only to one thing to which one of the parties has no
a compromise. (n) right, as shown by the newly-discovered documents. (n)
ARTICLE 2032. The court’s approval is necessary in ARTICLE 2040. If after a litigation has been decided by a
compromises entered into by guardians, parents, final judgment, a compromise should be agreed upon,
absentee’s representatives, and administrators or either or both parties being unaware of the existence of
executors of decedent’s estates. (1810a) the final judgment, the compromise may be rescinded.
ARTICLE 2033. Juridical persons may compromise only in Ignorance of a judgment which may be revoked or set
the form and with the requisites which may be necessary aside is not a valid ground for attacking a compromise.
to alienate their property. (1812a) (1819a)
ARTICLE 2034. There may be a compromise upon the civil ARTICLE 2041. If one of the parties fails or refuses to abide
liability arising from an offense; but such compromise shall by the compromise, the other party may either enforce
not extinguish the public action for the imposition of the the compromise or regard it as rescinded and insist upon
legal penalty. (1813) his original demand. (n) acd
ARTICLE 2035. No compromise upon the following CHAPTER 2
questions shall be valid:
Arbitrations
(1) The civil status of persons;
ARTICLE 2042. The same persons who may enter into a
(2) The validity of a marriage or a legal separation; compromise may submit their controversies to one or
more arbitrators for decision. (1820a)
(3) Any ground for legal separation;
ARTICLE 2043. The provisions of the preceding Chapter
(4) Future support;
upon compromises shall also be applicable to arbitrations.
(5) The jurisdiction of courts; (1821a)

(6) Future legitime. (1814a) ARTICLE 2044. Any stipulation that the arbitrators’ award
or decision shall be final, is valid, without prejudice to
ARTICLE 2036. A compromise comprises only those objects articles 2038, 2039, and 2040. (n)
which are definitely stated therein, or which by necessary
implication from its terms should be deemed to have been
included in the same.

15
ARTICLE 2045. Any clause giving one of the parties power c. Interim Measures of Protection;
to choose more arbitrators than the other is void and of no
effect. (n) d. Appointment of Arbitrator;
ARTICLE 2046. The appointment of arbitrators and the
procedure for arbitration shall be governed by the e. Challenge to Appointment of Arbitrator;
provisions of such rules of court as the Supreme Court
shall promulgate. (n) f. Termination of Mandate of Arbitrator;

g. Assistance in Taking Evidence;

A.M. No. 07-11-08-SC, September 1, 2009, Special Rules
of Court on Alternative Dispute Resolution (Special ADR h. Confirmation, Correction or Vacation of Award
Rules) in Domestic Arbitration;

A.M. No. 07-11-08-SC September 1, 2009 i. Recognition and Enforcement or Setting Aside
of an Award in International Commercial
SPECIAL RULES OF COURT ON ALTERNATIVE DISPUTE Arbitration;
RESOLUTION
j. Recognition and Enforcement of a Foreign
Acting on the recommendation of the Chairperson of the Arbitral Award;
Sub-Committee on the Rules on Alternative Dispute
Resolution submitting for this Court’s consideration and k. Confidentiality/Protective Orders; and
approval the proposed Special Rules of Court on
Alternative Dispute Resolution, the Court Resolved to
l. Deposit and Enforcement of Mediated
APPROVE the same.
Settlement Agreements.

This Rule shall take effect on October 30, 2009 following

Rule 1.2. Nature of the proceedings.-All proceedings under
its publication in three (3) newspapers of general
the Special ADR Rules are special proceedings.
circulation.

Rule 1.3. Summary proceedings in certain cases.-The

September 1, 2009.
proceedings in the following instances are summary in
nature and shall be governed by this provision:

a. Judicial Relief Involving the Issue of Existence,

Validity or Enforceability of the Arbitration
Agreement;
SPECIAL RULES OF COURT ON ALTERNATIVE DISPUTE
RESOLUTION
b. Referral to ADR;

PART I
c. Interim Measures of Protection;
GENERAL PROVISIONS AND POLICIES

d. Appointment of Arbitrator;
RULE 1: GENERAL PROVISIONS

e. Challenge to Appointment of Arbitrator;

Rule 1.1. Subject matter and governing rules.-The Special
Rules of Court on Alternative Dispute Resolution (the
"Special ADR Rules") shall apply to and govern the f. Termination of Mandate of Arbitrator;
following cases:
g. Assistance in Taking Evidence;
a. Relief on the issue of Existence, Validity, or
Enforceability of the Arbitration Agreement; h. Confidentiality/Protective Orders; and

b. Referral to Alternative Dispute Resolution i. Deposit and Enforcement of Mediated

("ADR"); Settlement Agreements.

16
(A) Service and filing of petition in summary proceedings.- The annexes to the pleading, motion, opposition,
The petitioner shall serve, either by personal service or comment, defense or claim filed by the proper party may
courier, a copy of the petition upon the respondent before include a legal brief, duly verified by the lawyer submitting
the filing thereof. Proof of service shall be attached to the it, stating the pertinent facts, the applicable law and
petition filed in court. jurisprudence to justify the necessity for the court to rule
upon the issue raised.
For personal service, proof of service of the petition
consists of the affidavit of the person who effected service, Rule 1.5. Certification Against Forum Shopping. - A
stating the time, place and manner of the service on the Certification Against Forum Shopping is one made under
respondent. For service by courier, proof of service oath made by the petitioner or movant: (a) that he has not
consists of the signed courier proof of delivery. If service is theretofore commenced any action or filed any claim
refused or has failed, the affidavit or delivery receipt must involving the same issues in any court, tribunal or quasi-
state the circumstances of the attempted service and judicial agency and, to the best of his knowledge, no such
refusal or failure thereof. other action or claim is pending therein; (b) if there is such
other pending action or claim, a complete statement of
(B) Notice.-Except for cases involving Referral to ADR and the present status thereof; and (c) if he should thereafter
Confidentiality/Protective Orders made through motions, learn that the same or similar action or claim has been
the court shall, if it finds the petition sufficient in form and filed or is pending, he shall report that fact within five (5)
substance, send notice to the parties directing them to days therefrom to the court wherein his aforementioned
appear at a particular time and date for the hearing petition or motion has been filed.
thereof which shall be set no later than five (5) days from
the lapse of the period for filing the opposition or A Certification Against Forum Shopping shall be appended
comment. The notice to the respondent shall contain a to all initiatory pleadings except a Motion to Refer the
statement allowing him to file a comment or opposition to Dispute to Alternative Dispute Resolution.
the petition within fifteen (15) days from receipt of the
notice. Rule 1.6. Prohibited submissions. - The following pleadings,
motions, or petitions shall not be allowed in the cases
The motion filed pursuant to the rules on Referral to ADR governed by the Special ADR Rules and shall not be
or Confidentiality/Protective Orders shall be set for accepted for filing by the Clerk of Court:
hearing by the movant and contain a notice of hearing that
complies with the requirements under Rule 15 of the Rules a. Motion to dismiss;
of Court on motions.
b. Motion for bill of particulars;
(C) Summary hearing. - In all cases, as far as practicable,
the summary hearing shall be conducted in one (1) day
c. Motion for new trial or for reopening of trial;
and only for purposes of clarifying facts.

d. Petition for relief from judgment;

Except in cases involving Referral to ADR or
Confidentiality/Protective Orders made through motions,
it shall be the court that sets the petition for hearing e. Motion for extension, except in cases where
within five (5) days from the lapse of the period for filing an ex-parte temporary order of protection has
the opposition or comment. been issued;

(D) Resolution. - The court shall resolve the matter within a f. Rejoinder to reply;
period of thirty (30) days from the day of the hearing.
g. Motion to declare a party in default; and
Rule 1.4. Verification and submissions. -Any pleading,
motion, opposition, comment, defense or claim filed under h. Any other pleading specifically disallowed
the Special ADR Rules by the proper party shall be under any provision of the Special ADR Rules.
supported by verified statements that the affiant has read
the same and that the factual allegations therein are true The court shall motu proprio order a pleading/motion that
and correct of his own personal knowledge or based on it has determined to be dilatory in nature be expunged
authentic records and shall contain as annexes the from the records.
supporting documents.

Rule 1.7. Computation of time. - In computing any period

of time prescribed or allowed by the Special ADR Rules, or

17
by order of the court, or by any applicable statute, the day respondent was furnished a copy of the petition and the
of the act or event from which the designated period of notice of hearing.
time begins to run is to be excluded and the date of
performance included. If the last day of the period, as thus (A) Proof of service. - A proof of service of the petition and
computed, falls on a Saturday, a Sunday, or a legal holiday notice of hearing upon respondent shall be made in
in the place where the court sits, the time shall not run writing by the server and shall set forth the manner, place
until the next working day. and date of service.

Should an act be done which effectively interrupts the (B) Burden of proof. - The burden of showing that a copy of
running of the period, the allowable period after such the petition and the notice of hearing were served on the
interruption shall start to run on the day after notice of the respondent rests on the petitioner.
cessation of the cause thereof.
The technical rules on service of summons do not apply to
The day of the act that caused the interruption shall be the proceedings under the Special ADR Rules. In instances
excluded from the computation of the period. where the respondent, whether a natural or a juridical
person, was not personally served with a copy of the
Rule 1.8. Service and filing of pleadings, motions and other petition and notice of hearing in the proceedings
papers in non-summary proceedings. - The initiatory contemplated in the first paragraph of Rule 1.3 (B), or the
pleadings shall be filed directly with the court. The court motion in proceedings contemplated in the second
will then cause the initiatory pleading to be served upon paragraph of Rule 1.3 (B), the method of service resorted
the respondent by personal service or courier. Where an to must be such as to reasonably ensure receipt thereof by
action is already pending, pleadings, motions and other the respondent to satisfy the requirement of due process.
papers shall be filed and/or served by the concerned party
by personal service or courier. Where courier services are Rule 1.10. Contents of petition/motion. - The initiatory
not available, resort to registered mail is allowed. pleading in the form of a verified petition or motion, in the
appropriate case where court proceedings have already
(A) Proof of filing. - The filing of a pleading shall be proved commenced, shall include the names of the parties, their
by its existence in the record of the case. If it is not in the addresses, the necessary allegations supporting the
record, but is claimed to have been filed personally, the petition and the relief(s) sought.
filing shall be proved by the written or stamped
acknowledgment of its filing by the clerk of court on a copy Rule 1.11. Definition. - The following terms shall have the
of the same; if filed by courier, by the proof of delivery following meanings:
from the courier company.
a. "ADR Laws" refers to the whole body of ADR
(B) Proof of service. - Proof of personal service shall consist laws in the Philippines.
of a written admission by the party served, or the official
return of the server, or the affidavit of the party serving,
b. "Appointing Authority" shall mean the person
containing a full statement of the date, place and manner
or institution named in the arbitration
of service. If the service is by courier, proof thereof shall
agreement as the appointing authority; or the
consist of an affidavit of the proper person, stating facts
regular arbitration institution under whose rule
showing that the document was deposited with the
the arbitration is agreed to be conducted. Where
courier company in a sealed envelope, plainly addressed to
the parties have agreed to submit their dispute
the party at his office, if known, otherwise at his residence,
to institutional arbitration rules, and unless they
with postage fully pre-paid, and with instructions to the
have agreed to a different procedure, they shall
courier to immediately provide proof of delivery.
be deemed to have agreed to procedure under
such arbitration rules for the selection and
(C) Filing and service by electronic means and proof appointment of arbitrators. In ad hoc arbitration,
thereof. - Filing and service of pleadings by electronic the default appointment of arbitrators shall be
transmission may be allowed by agreement of the parties made by the National President of the Integrated
approved by the court. If the filing or service of a pleading Bar of the Philippines or his duly authorized
or motion was done by electronic transmission, proof of representative.
filing and service shall be made in accordance with the
Rules on Electronic Evidence.
c. "Authenticate" means to sign, execute or use a
symbol, or encrypt a record in whole or in part,
Rule 1.9. No summons. - In cases covered by the Special intended to identify the authenticating party and
ADR Rules, a court acquires authority to act on the petition
or motion upon proof of jurisdictional facts, i.e., that the

18
 to adopt, accept or establish the authenticity of respect party autonomy or the freedom of the parties to
a record or term. make their own arrangements in the resolution of disputes
with the greatest cooperation of and the least intervention
d. "Foreign Arbitral Award" is one made in a from the courts. To this end, the objectives of the Special
country other than the Philippines. ADR Rules are to encourage and promote the use of ADR,
particularly arbitration and mediation, as an important
means to achieve speedy and efficient resolution of
e. "Legal Brief" is a written legal argument
disputes, impartial justice, curb a litigious culture and to
submitted to a court, outlining the facts derived
de-clog court dockets.
from the factual statements in the witness’s
statements of fact and citing the legal authorities
relied upon by a party in a case submitted in The court shall exercise the power of judicial review as
connection with petitions, counter-petitions (i.e., provided by these Special ADR Rules. Courts shall
petitions to vacate or to set aside and/or to intervene only in the cases allowed by law or these Special
correct/modify in opposition to petitions to ADR Rules.
confirm or to recognize and enforce, or petitions
to confirm or to recognize and enforce in Rule 2.2. Policy on arbitration.- (A) Where the parties have
opposition to petitions to vacate or set aside agreed to submit their dispute to arbitration, courts shall
and/or correct/modify), motions, evidentiary refer the parties to arbitration pursuant to Republic Act
issues and other matters that arise during the No. 9285 bearing in mind that such arbitration agreement
course of a case. The legal brief shall state the is the law between the parties and that they are expected
applicable law and the relevant jurisprudence to abide by it in good faith. Further, the courts shall not
and the legal arguments in support of a party’s refuse to refer parties to arbitration for reasons including,
position in the case. but not limited to, the following:

f. "Verification" shall mean a certification under a. The referral tends to oust a court of its
oath by a party or a person who has authority to jurisdiction;
act for a party that he has read the
pleading/motion, and that he certifies to the b. The court is in a better position to resolve the
truth of the facts stated therein on the basis of dispute subject of arbitration;
his own personal knowledge or authentic
documents in his possession. When made by a
c. The referral would result in multiplicity of
lawyer, verification shall mean a statement
suits;
under oath by a lawyer signing a
pleading/motion for delivery to the Court or to
the parties that he personally prepared the d. The arbitration proceeding has not
pleading/motion, that there is sufficient factual commenced;
basis for the statements of fact stated therein,
that there is sufficient basis in the facts and the e. The place of arbitration is in a foreign country;
law to support the prayer for relief therein, and
that the pleading/motion is filed in good faith f. One or more of the issues are legal and one or
and is not interposed for delay. more of the arbitrators are not lawyers;

Rule 1.12. Applicability of Part II on Specific Court Relief. - g. One or more of the arbitrators are not
Part II of the Special ADR Rules on Specific Court Relief, Philippine nationals; or
insofar as it refers to arbitration, shall also be applicable to
other forms of ADR.
h. One or more of the arbitrators are alleged not
to possess the required qualification under the
Rule 1.13. Spirit and intent of the Special ADR Rules. – In arbitration agreement or law.
situations where no specific rule is provided under the
Special ADR Rules, the court shall resolve such matter
summarily and be guided by the spirit and intent of the (B) Where court intervention is allowed under ADR Laws or
Special ADR Rules and the ADR Laws. the Special ADR Rules, courts shall not refuse to grant
relief, as provided herein, for any of the following reasons:
RULE 2: STATEMENT OF POLICIES
a. Prior to the constitution of the arbitral
tribunal, the court finds that the principal action
Rule 2.1. General policies. - It is the policy of the State to is the subject of an arbitration agreement; or
actively promote the use of various modes of ADR and to

19
 b. The principal action is already pending before Where the parties have agreed to submit their dispute to
an arbitral tribunal. mediation, a court before which that dispute was brought
shall suspend the proceedings and direct the parties to
The Special ADR Rules recognize the principle of submit their dispute to private mediation. If the parties
competence-competence, which means that the arbitral subsequently agree, however, they may opt to have their
tribunal may initially rule on its own jurisdiction, including dispute settled through Court-Annexed Mediation.
any objections with respect to the existence or validity of
the arbitration agreement or any condition precedent to Rule 2.6. Policy on Arbitration-Mediation or Mediation-
the filing of a request for arbitration. Arbitration. - No arbitrator shall act as a mediator in any
proceeding in which he is acting as arbitrator; and all
The Special ADR Rules recognize the principle of negotiations towards settlement of the dispute must take
separability of the arbitration clause, which means that place without the presence of that arbitrator. Conversely,
said clause shall be treated as an agreement independent no mediator shall act as arbitrator in any proceeding in
of the other terms of the contract of which it forms part. A which he acted as mediator.
decision that the contract is null and void shall not entail
ipso jure the invalidity of the arbitration clause. Rule 2.7. Conversion of a settlement agreement to an
arbitral award. - Where the parties to mediation have
Rule 2.3. Rules governing arbitral proceedings. - The agreed in the written settlement agreement that the
parties are free to agree on the procedure to be followed mediator shall become the sole arbitrator for the dispute
in the conduct of arbitral proceedings. Failing such or that the settlement agreement shall become an arbitral
agreement, the arbitral tribunal may conduct arbitration in award, the sole arbitrator shall issue the settlement
the manner it considers appropriate. agreement as an arbitral award, which shall be subject to
enforcement under the law.
Rule 2.4. Policy implementing competence-competence
principle. - The arbitral tribunal shall be accorded the first PART II
opportunity or competence to rule on the issue of whether SPECIFIC COURT RELIEF
or not it has the competence or jurisdiction to decide a
dispute submitted to it for decision, including any RULE 3: JUDICIAL RELIEF INVOLVING THE ISSUE OF
objection with respect to the existence or validity of the EXISTENCE, VALIDITY AND ENFORCEABILITY OF THE
arbitration agreement. When a court is asked to rule upon ARBITRATION AGREEMENT
issue/s affecting the competence or jurisdiction of an
arbitral tribunal in a dispute brought before it, either Rule 3.1. When judicial relief is available. - The judicial
before or after the arbitral tribunal is constituted, the relief provided in Rule 3, whether resorted to before or
court must exercise judicial restraint and defer to the after commencement of arbitration, shall apply only when
competence or jurisdiction of the arbitral tribunal by the place of arbitration is in the Philippines.
allowing the arbitral tribunal the first opportunity to rule
upon such issues.
A. Judicial Relief before Commencement of Arbitration

Where the court is asked to make a determination of

Rule 3.2. Who may file petition. - Any party to an
whether the arbitration agreement is null and void,
arbitration agreement may petition the appropriate court
inoperative or incapable of being performed, under this
to determine any question concerning the existence,
policy of judicial restraint, the court must make no more
validity and enforceability of such arbitration agreement
than a prima facie determination of that issue.
serving a copy thereof on the respondent in accordance
with Rule 1.4 (A).
Unless the court, pursuant to such prima facie
determination, concludes that the arbitration agreement is
Rule 3.3. When the petition may be filed. - The petition for
null and void, inoperative or incapable of being performed,
judicial determination of the existence, validity and/or
the court must suspend the action before it and refer the
enforceability of an arbitration agreement may be filed at
parties to arbitration pursuant to the arbitration
any time prior to the commencement of arbitration.
agreement.

Despite the pendency of the petition provided herein,

Rule 2.5. Policy on mediation. - The Special ADR Rules do
arbitral proceedings may nevertheless be commenced and
not apply to Court-Annexed Mediation, which shall be
continue to the rendition of an award, while the issue is
governed by issuances of the Supreme Court.
pending before the court.

20
Rule 3.4. Venue. - A petition questioning the existence, upholding the existence, validity or enforceability of an
validity and enforceability of an arbitration agreement may arbitration agreement shall not be subject to a motion for
be filed before the Regional Trial Court of the place where reconsideration, appeal or certiorari.
any of the petitioners or respondents has his principal
place of business or residence. Such prima facie determination will not, however,
prejudice the right of any party to raise the issue of the
Rule 3.5. Grounds. - A petition may be granted only if it is existence, validity and enforceability of the arbitration
shown that the arbitration agreement is, under the agreement before the arbitral tribunal or the court in an
applicable law, invalid, void, unenforceable or inexistent. action to vacate or set aside the arbitral award. In the
latter case, the court’s review of the arbitral tribunal’s
Rule 3.6. Contents of petition. - The verified petition shall ruling upholding the existence, validity or enforceability of
state the following: the arbitration agreement shall no longer be limited to a
mere prima facie determination of such issue or issues as
prescribed in this Rule, but shall be a full review of such
a. The facts showing that the persons named as
issue or issues with due regard, however, to the standard
petitioner or respondent have legal capacity to
for review for arbitral awards prescribed in these Special
sue or be sued;
ADR Rules.

b. The nature and substance of the dispute

B. Judicial Relief after Arbitration Commences
between the parties;

Rule 3.12. Who may file petition. - Any party to arbitration

c. The grounds and the circumstances relied
may petition the appropriate court for judicial relief from
upon by the petitioner to establish his position;
the ruling of the arbitral tribunal on a preliminary question
and
upholding or declining its jurisdiction. Should the ruling of
the arbitral tribunal declining its jurisdiction be reversed
d. The relief/s sought. by the court, the parties shall be free to replace the
arbitrators or any one of them in accordance with the
Apart from other submissions, the petitioner must attach rules that were applicable for the appointment of
to the petition an authentic copy of the arbitration arbitrator sought to be replaced.
agreement.
Rule 3.13. When petition may be filed. - The petition may
Rule 3.7. Comment/Opposition.-The comment/opposition be filed within thirty (30) days after having received notice
of the respondent must be filed within fifteen (15) days of that ruling by the arbitral tribunal.
from service of the petition.
Rule 3.14. Venue. - The petition may be filed before the
Rule 3.8. Court action. - In resolving the petition, the court Regional Trial Court of the place where arbitration is taking
must exercise judicial restraint in accordance with the place, or where any of the petitioners or respondents has
policy set forth in Rule 2.4, deferring to the competence or his principal place of business or residence.
jurisdiction of the arbitral tribunal to rule on its
competence or jurisdiction. Rule 3.15. Grounds. - The petition may be granted when
the court finds that the arbitration agreement is invalid,
Rule 3.9. No forum shopping. - A petition for judicial relief inexistent or unenforceable as a result of which the
under this Rule may not be commenced when the arbitral tribunal has no jurisdiction to resolve the dispute.
existence, validity or enforceability of an arbitration
agreement has been raised as one of the issues in a prior Rule 3.16. Contents of petition. - The petition shall state
action before the same or another court. the following:

Rule 3.10. Application for interim relief. - If the petitioner a. The facts showing that the person named as
also applies for an interim measure of protection, he must petitioner or respondent has legal capacity to
also comply with the requirements of the Special ADR sue or be sued;
Rules for the application for an interim measure of
protection.
b. The nature and substance of the dispute
between the parties;
Rule 3.11. Relief against court action. - Where there is a
prima facie determination upholding the arbitration
c. The grounds and the circumstances relied
agreement.-A prima facie determination by the court
upon by the petitioner; and

21
 d. The relief/s sought. Rule 3.21. Rendition of arbitral award before court
decision on petition from arbitral tribunal’s preliminary
In addition to the submissions, the petitioner shall attach ruling on jurisdiction. - If the arbitral tribunal renders a
to the petition a copy of the request for arbitration and final arbitral award and the Court has not rendered a
the ruling of the arbitral tribunal. decision on the petition from the arbitral tribunal’s
preliminary ruling affirming its jurisdiction, that petition
shall become ipso facto moot and academic and shall be
The arbitrators shall be impleaded as nominal parties to
dismissed by the Regional Trial Court. The dismissal shall
the case and shall be notified of the progress of the case.
be without prejudice to the right of the aggrieved party to
raise the same issue in a timely petition to vacate or set
Rule 3.17. Comment/Opposition. - The aside the award.
comment/opposition must be filed within fifteen (15) days
from service of the petition.
Rule 3.22. Arbitral tribunal a nominal party. - The arbitral
tribunal is only a nominal party. The court shall not require
Rule 3.18. Court action. - (A) Period for resolving the the arbitral tribunal to submit any pleadings or written
petition.- The court shall render judgment on the basis of submissions but may consider the same should the latter
the pleadings filed and the evidence, if any, submitted by participate in the proceedings, but only as nominal parties
the parties, within thirty (30) days from the time the thereto.
petition is submitted for resolution.
RULE 4: REFERRAL TO ADR
(B) No injunction of arbitration proceedings. - The court
shall not enjoin the arbitration proceedings during the
Rule 4.1. Who makes the request. - A party to a pending
pendency of the petition.
action filed in violation of the arbitration agreement,
whether contained in an arbitration clause or in a
Judicial recourse to the court shall not prevent the arbitral submission agreement, may request the court to refer the
tribunal from continuing the proceedings and rendering its parties to arbitration in accordance with such agreement.
award.
Rule 4.2. When to make request. - (A) Where the
(C) When dismissal of petition is appropriate. - The court arbitration agreement exists before the action is filed. -
shall dismiss the petition if it fails to comply with Rule 3.16 The request for referral shall be made not later than the
above; or if upon consideration of the grounds alleged and pre-trial conference. After the pre-trial conference, the
the legal briefs submitted by the parties, the petition does court will only act upon the request for referral if it is
not appear to be prima facie meritorious. made with the agreement of all parties to the case.

Rule 3.19. Relief against court action. - The aggrieved (B) Submission agreement. - If there is no existing
party may file a motion for reconsideration of the order of arbitration agreement at the time the case is filed but the
the court. The decision of the court shall, however, not be parties subsequently enter into an arbitration agreement,
subject to appeal. The ruling of the court affirming the they may request the court to refer their dispute to
arbitral tribunal’s jurisdiction shall not be subject to a arbitration at any time during the proceedings.
petition for certiorari. The ruling of the court that the
arbitral tribunal has no jurisdiction may be the subject of a
Rule 4.3. Contents of request. - The request for referral
petition for certiorari.
shall be in the form of a motion, which shall state that the
dispute is covered by an arbitration agreement.
Rule 3.20. Where no petition is allowed. - Where the
arbitral tribunal defers its ruling on preliminary question
Apart from other submissions, the movant shall attach to
regarding its jurisdiction until its final award, the aggrieved
his motion an authentic copy of the arbitration agreement.
party cannot seek judicial relief to question the deferral
and must await the final arbitral award before seeking
appropriate judicial recourse. The request shall contain a notice of hearing addressed to
all parties specifying the date and time when it would be
heard. The party making the request shall serve it upon
A ruling by the arbitral tribunal deferring resolution on the
the respondent to give him the opportunity to file a
issue of its jurisdiction until final award, shall not be
comment or opposition as provided in the immediately
subject to a motion for reconsideration, appeal or a
succeeding Rule before the hearing.
petition for certiorari.

Rule 4.4. Comment/Opposition. - The comment/opposition

must be filed within fifteen (15) days from service of the

22
petition. The comment/opposition should show that: (a) Rule 4.8. Arbitration to proceed.- Despite the pendency of
there is no agreement to refer the dispute to arbitration; the action referred to in Rule 4.1, above, arbitral
and/or (b) the agreement is null and void; and/or (c) the proceedings may nevertheless be commenced or
subject-matter of the dispute is not capable of settlement continued, and an award may be made, while the action is
or resolution by arbitration in accordance with Section 6 of pending before the court.
the ADR Act.
RULE 5: INTERIM MEASURES OF PROTECTION
Rule 4.5. Court action. - After hearing, the court shall stay
the action and, considering the statement of policy Rule 5.1. Who may ask for interim measures of protection.
embodied in Rule 2.4, above, refer the parties to - A party to an arbitration agreement may petition the
arbitration if it finds prima facie, based on the pleadings court for interim measures of protection.
and supporting documents submitted by the parties, that
there is an arbitration agreement and that the subject-
Rule 5.2. When to petition. - A petition for an interim
matter of the dispute is capable of settlement or
measure of protection may be made (a) before arbitration
resolution by arbitration in accordance with Section 6 of
is commenced, (b) after arbitration is commenced, but
the ADR Act. Otherwise, the court shall continue with the
before the constitution of the arbitral tribunal, or (c) after
judicial proceedings.
the constitution of the arbitral tribunal and at any time
during arbitral proceedings but, at this stage, only to the
Rule 4.6. No reconsideration, appeal or certiorari. - An extent that the arbitral tribunal has no power to act or is
order referring the dispute to arbitration shall be unable to act effectively.
immediately executory and shall not be subject to a
motion for reconsideration, appeal or petition for
Rule 5.3. Venue. - A petition for an interim measure of
certiorari.
protection may be filed with the Regional Trial Court,
which has jurisdiction over any of the following places:
An order denying the request to refer the dispute to
arbitration shall not be subject to an appeal, but may be
a. Where the principal place of business of any of
the subject of a motion for reconsideration and/or a
the parties to arbitration is located;
petition for certiorari.

b. Where any of the parties who are individuals

Rule 4.7. Multiple actions and parties. - The court shall not
resides;
decline to refer some or all of the parties to arbitration for
any of the following reasons:
c. Where any of the acts sought to be enjoined
are being performed, threatened to be
a. Not all of the disputes subject of the civil
performed or not being performed; or
action may be referred to arbitration;

d. Where the real property subject of arbitration,

b. Not all of the parties to the civil action are
or a portion thereof is situated.
bound by the arbitration agreement and referral
to arbitration would result in multiplicity of suits;
Rule 5.4. Grounds. - The following grounds, while not
limiting the reasons for the court to grant an interim
c. The issues raised in the civil action could be
measure of protection, indicate the nature of the reasons
speedily and efficiently resolved in its entirety by
that the court shall consider in granting the relief:
the court rather than in arbitration;

a. The need to prevent irreparable loss or injury;

d. Referral to arbitration does not appear to be
the most prudent action; or
b. The need to provide security for the
performance of any obligation;
e. The stay of the action would prejudice the
rights of the parties to the civil action who are
not bound by the arbitration agreement. c. The need to produce or preserve evidence; or

The court may, however, issue an order directing the d. The need to compel any other appropriate act
inclusion in arbitration of those parties who are not bound or omission.
by the arbitration agreement but who agree to such
inclusion provided those originally bound by it do not Rule 5.5. Contents of the petition. - The verified petition
object to their inclusion. must state the following:

23
 a. The fact that there is an arbitration Rule 5.9. Court action. - After hearing the petition, the
agreement; court shall balance the relative interests of the parties and
inconveniences that may be caused, and on that basis
b. The fact that the arbitral tribunal has not been resolve the matter within thirty (30) days from (a)
constituted, or if constituted, is unable to act or submission of the opposition, or (b) upon lapse of the
would be unable to act effectively; period to file the same, or (c) from termination of the
hearing that the court may set only if there is a need for
clarification or further argument.
c. A detailed description of the appropriate relief
sought;
If the other parties fail to file their opposition on or before
the day of the hearing, the court shall motu proprio render
d. The grounds relied on for the allowance of the
judgment only on the basis of the allegations in the
petition
petition that are substantiated by supporting documents
and limited to what is prayed for therein.
Apart from other submissions, the petitioner must attach
to his petition an authentic copy of the arbitration
In cases where, based solely on the petition, the court
agreement.
finds that there is an urgent need to either (a) preserve
property, (b) prevent the respondent from disposing of, or
Rule 5.6. Type of interim measure of protection that a concealing, the property, or (c) prevent the relief prayed
court may grant.- The following, among others, are the for from becoming illusory because of prior notice, it shall
interim measures of protection that a court may grant: issue an immediately executory temporary order of
protection and require the petitioner, within five (5) days
a. Preliminary injunction directed against a party from receipt of that order, to post a bond to answer for
to arbitration; any damage that respondent may suffer as a result of its
order. The ex-parte temporary order of protection shall be
b. Preliminary attachment against property or valid only for a period of twenty (20) days from the service
garnishment of funds in the custody of a bank or on the party required to comply with the order. Within
a third person; that period, the court shall:

c. Appointment of a receiver; a. Furnish the respondent a copy of the petition

and a notice requiring him to comment thereon
on or before the day the petition will be heard;
d. Detention, preservation, delivery or inspection and
of property; or,
b. Notify the parties that the petition shall be
e. Assistance in the enforcement of an interim heard on a day specified in the notice, which
measure of protection granted by the arbitral must not be beyond the twenty (20) day period
tribunal, which the latter cannot enforce of the effectivity of the ex-parte order.
effectively.
The respondent has the option of having the temporary
Rule 5.7. Dispensing with prior notice in certain cases. - order of protection lifted by posting an appropriate
Prior notice to the other party may be dispensed with counter-bond as determined by the court.
when the petitioner alleges in the petition that there is an
urgent need to either (a) preserve property, (b) prevent
the respondent from disposing of, or concealing, the If the respondent requests the court for an extension of
property, or (c) prevent the relief prayed for from the period to file his opposition or comment or to reset
becoming illusory because of prior notice, and the court the hearing to a later date, and such request is granted,
finds that the reason/s given by the petitioner are the court shall extend the period of validity of the ex-
meritorious. parte temporary order of protection for no more than
twenty days from expiration of the original period.

Rule 5.8. Comment/Opposition. - The comment/opposition

must be filed within fifteen (15) days from service of the After notice and hearing, the court may either grant or
petition. The opposition or comment should state the deny the petition for an interim measure of protection.
reasons why the interim measure of protection should not The order granting or denying any application for interim
be granted. measure of protection in aid of arbitration must indicate
that it is issued without prejudice to subsequent grant,
modification, amendment, revision or revocation by an
arbitral tribunal.

24
Rule 5.10. Relief against court action. - If respondent was arbitral tribunal. - Any question involving a conflict or
given an opportunity to be heard on a petition for an inconsistency between an interim measure of protection
interim measure of protection, any order by the court shall issued by the court and by the arbitral tribunal shall be
be immediately executory, but may be the subject of a immediately referred by the court to the arbitral tribunal
motion for reconsideration and/or appeal or, if warranted, which shall have the authority to decide such question.
a petition for certiorari.
Rule 5.15. Court to defer action on petition for an interim
Rule 5.11. Duty of the court to refer back. - The court shall measure of protection when informed of constitution of the
not deny an application for assistance in implementing or arbitral tribunal. - The court shall defer action on any
enforcing an interim measure of protection ordered by an pending petition for an interim measure of protection filed
arbitral tribunal on any or all of the following grounds: by a party to an arbitration agreement arising from or in
connection with a dispute thereunder upon being
a. The arbitral tribunal granted the interim relief informed that an arbitral tribunal has been constituted
ex parte; or pursuant to such agreement. The court may act upon such
petition only if it is established by the petitioner that the
arbitral tribunal has no power to act on any such interim
b. The party opposing the application found new
measure of protection or is unable to act thereon
material evidence, which the arbitral tribunal
effectively.
had not considered in granting in the application,
and which, if considered, may produce a
different result; or Rule 5.16. Court assistance should arbitral tribunal be
unable to effectively enforce interim measure of
protection. - The court shall assist in the enforcement of an
c. The measure of protection ordered by the
interim measure of protection issued by the arbitral
arbitral tribunal amends, revokes, modifies or is
tribunal which it is unable to effectively enforce.
inconsistent with an earlier measure of
protection issued by the court.
RULE 6: APPOINTMENT OF ARBITRATORS
If it finds that there is sufficient merit in the opposition to
the application based on letter (b) above, the court shall Rule 6.1. When the court may act as Appointing Authority.
refer the matter back to the arbitral tribunal for - The court shall act as Appointing Authority only in the
appropriate determination. following instances:

Rule 5.12. Security. - The order granting an interim a. Where any of the parties in an institutional
measure of protection may be conditioned upon the arbitration failed or refused to appoint an
provision of security, performance of an act, or omission arbitrator or when the parties have failed to
thereof, specified in the order. reach an agreement on the sole arbitrator (in an
arbitration before a sole arbitrator) or when the
two designated arbitrators have failed to reach
The Court may not change or increase or decrease the
an agreement on the third or presiding arbitrator
security ordered by the arbitral tribunal.
(in an arbitration before a panel of three
arbitrators), and the institution under whose
Rule 5.13. Modification, amendment, revision or rules arbitration is to be conducted fails or is
revocation of court’s previously issued interim measure of unable to perform its duty as appointing
protection. - Any court order granting or denying interim authority within a reasonable time from receipt
measure/s of protection is issued without prejudice to of the request for appointment;
subsequent grant, modification, amendment, revision or
revocation by the arbitral tribunal as may be warranted.
b. In all instances where arbitration is ad hoc and
the parties failed to provide a method for
An interim measure of protection issued by the arbitral appointing or replacing an arbitrator, or
tribunal shall, upon its issuance be deemed to have ipso substitute arbitrator, or the method agreed upon
jure modified, amended, revised or revoked an interim is ineffective, and the National President of the
measure of protection previously issued by the court to Integrated Bar of the Philippines (IBP) or his duly
the extent that it is inconsistent with the subsequent authorized representative fails or refuses to act
interim measure of protection issued by the arbitral within such period as may be allowed under the
tribunal. pertinent rules of the IBP or within such period
as may be agreed upon by the parties, or in the
Rule 5.14. Conflict or inconsistency between interim absence thereof, within thirty (30) days from
measure of protection issued by the court and by the receipt of such request for appointment;

25
 c. Where the parties agreed that their dispute f. The petitioner is not the cause of the delay in,
shall be resolved by three arbitrators but no or failure of, the appointment of the arbitrator.
method of appointing those arbitrators has been
agreed upon, each party shall appoint one Apart from other submissions, the petitioner must attach
arbitrator and the two arbitrators thus to the petition (a) an authentic copy of the arbitration
appointed shall appoint a third arbitrator. If a agreement, and (b) proof that the Appointing Authority
party fails to appoint his arbitrator within thirty has been notified of the filing of the petition for
(30) days of receipt of a request to do so from appointment with the court.
the other party, or if the two arbitrators fail to
agree on the third arbitrator within a reasonable
Rule 6.5. Comment/Opposition. - The comment/opposition
time from their appointment, the appointment
must be filed within fifteen (15) days from service of the
shall be made by the Appointing Authority. If the
petition.
latter fails or refuses to act or appoint an
arbitrator within a reasonable time from receipt
of the request to do so, any party or the Rule 6.6. Submission of list of arbitrators. - The court may,
appointed arbitrator/s may request the court to at its option, also require each party to submit a list of not
appoint an arbitrator or the third arbitrator as less than three (3) proposed arbitrators together with their
the case may be. curriculum vitae.

Rule 6.2. Who may request for appointment. - Any party to Rule 6.7. Court action. - After hearing, if the court finds
an arbitration may request the court to act as an merit in the petition, it shall appoint an arbitrator;
Appointing Authority in the instances specified in Rule 6.1 otherwise, it shall dismiss the petition.
above.
In making the appointment, the court shall have regard to
Rule 6.3. Venue. - The petition for appointment of such considerations as are likely to secure the
arbitrator may be filed, at the option of the petitioner, in appointment of an independent and impartial arbitrator.
the Regional Trial Court (a) where the principal place of
business of any of the parties is located, (b) if any of the At any time after the petition is filed and before the court
parties are individuals, where those individuals reside, or makes an appointment, it shall also dismiss the petition
(c) in the National Capital Region. upon being informed that the Appointing Authority has
already made the appointment.
Rule 6.4. Contents of the petition. -The petition shall state
the following: Rule 6.8. Forum shopping prohibited. - When there is a
pending petition in another court to declare the
a. The general nature of the dispute; arbitration agreement inexistent, invalid, unenforceable,
on account of which the respondent failed or refused to
participate in the selection and appointment of a sole
b. If the parties agreed on an appointment
arbitrator or to appoint a party-nominated arbitrator, the
procedure, a description of that procedure with
petition filed under this rule shall be dismissed.
reference to the agreement where such may be
found;
Rule 6.9. Relief against court action. - If the court appoints
an arbitrator, the order appointing an arbitrator shall be
c. The number of arbitrators agreed upon or the
immediately executory and shall not be the subject of a
absence of any agreement as to the number of
motion for reconsideration, appeal or certiorari. An order
arbitrators;
of the court denying the petition for appointment of an
arbitrator may, however, be the subject of a motion for
d. The special qualifications that the arbitrator/s reconsideration, appeal or certiorari.
must possess, if any, that were agreed upon by
the parties;
RULE 7: CHALLENGE TO APPOINTMENT OF ARBITRATOR

e. The fact that the Appointing Authority,

Rule 7.1. Who may challenge. - Any of the parties to an
without justifiable cause, has failed or refused to
arbitration may challenge an arbitrator.
act as such within the time prescribed or in the
absence thereof, within a reasonable time, from
the date a request is made; and Rule 7.2. When challenge may be raised in court. - When
an arbitrator is challenged before the arbitral tribunal
under the procedure agreed upon by the parties or under

26
the procedure provided for in Article 13 (2) of the Model Rule 7.7. Court action. - After hearing, the court shall
Law and the challenge is not successful, the aggrieved remove the challenged arbitrator if it finds merit in the
party may request the Appointing Authority to rule on the petition; otherwise, it shall dismiss the petition.
challenge, and it is only when such Appointing Authority
fails or refuses to act on the challenge within such period The court shall allow the challenged arbitrator who
as may be allowed under the applicable rule or in the subsequently agrees to accept the challenge to withdraw
absence thereof, within thirty (30) days from receipt of the as arbitrator.
request, that the aggrieved party may renew the challenge
in court.
The court shall accept the challenge and remove the
arbitrator in the following cases:
Rule 7.3. Venue. - The challenge shall be filed with the
Regional Trial Court (a) where the principal place of
a. The party or parties who named and
business of any of the parties is located, (b) if any of the
appointed the challenged arbitrator agree to the
parties are individuals, where those individuals reside, or
challenge and withdraw the appointment.
(c) in the National Capital Region.

b. The other arbitrators in the arbitral tribunal

Rule 7.4. Grounds. - An arbitrator may be challenged on
agree to the removal of the challenged
any of the grounds for challenge provided for in Republic
arbitrator; and
Act No. 9285 and its implementing rules, Republic Act No.
876 or the Model Law. The nationality or professional
qualification of an arbitrator is not a ground to challenge c. The challenged arbitrator fails or refuses to
an arbitrator unless the parties have specified in their submit his comment on the petition or the brief
arbitration agreement a nationality and/or professional of legal arguments as directed by the court, or in
qualification for appointment as arbitrator. such comment or legal brief, he fails to object to
his removal following the challenge.
Rule 7.5. Contents of the petition. - The petition shall state
the following: The court shall decide the challenge on the basis of
evidence submitted by the parties.
a. The name/s of the arbitrator/s challenged and
his/their address; The court will decide the challenge on the basis of the
evidence submitted by the parties in the following
instances:
b. The grounds for the challenge;

a. The other arbitrators in the arbitral tribunal

c. The facts showing that the ground for the
agree to the removal of the challenged
challenge has been expressly or impliedly
arbitrator; and
rejected by the challenged arbitrator/s; and

b. If the challenged arbitrator fails or refuses to

d. The facts showing that the Appointing
submit his comment on the petition or the brief
Authority failed or refused to act on the
of legal arguments as directed by the court, or in
challenge.
such comment or brief of legal arguments, he
fails to object to his removal following the
The court shall dismiss the petition motu proprio unless it challenge.
is clearly alleged therein that the Appointing Authority
charged with deciding the challenge, after the resolution
Rule 7.8. No motion for reconsideration, appeal or
of the arbitral tribunal rejecting the challenge is raised or
certiorari. - Any order of the court resolving the petition
contested before such Appointing Authority, failed or
shall be immediately executory and shall not be the
refused to act on the challenge within thirty (30) days from
subject of a motion for reconsideration, appeal, or
receipt of the request or within such longer period as may
certiorari.
apply or as may have been agreed upon by the parties.

Rule 7.9. Reimbursement of expenses and reasonable

Rule 7.6. Comment/Opposition. - The challenged arbitrator
compensation to challenged arbitrator. - Unless the bad
or other parties may file a comment or opposition within
faith of the challenged arbitrator is established with
fifteen (15) days from service of the petition.
reasonable certainty by concealing or failing to disclose a
ground for his disqualification, the challenged arbitrator
shall be entitled to reimbursement of all reasonable

27
expenses he may have incurred in attending to the c. The fact that one or all of the parties had
arbitration and to a reasonable compensation for his work requested the arbitrator to withdraw but he
on the arbitration. Such expenses include, but shall not be failed or refused to do so;
limited to, transportation and hotel expenses, if any. A
reasonable compensation shall be paid to the challenged d. The fact that one or all of the parties
arbitrator on the basis of the length of time he has requested the Appointing Authority to act on the
devoted to the arbitration and taking into consideration request for the termination of the mandate of
his stature and reputation as an arbitrator. The request for the arbitrator and failure or inability of the
reimbursement of expenses and for payment of a Appointing Authority to act within thirty (30)
reasonable compensation shall be filed in the same case days from the request of a party or parties or
and in the court where the petition to replace the within such period as may have been agreed
challenged arbitrator was filed. The court, in determining upon by the parties or allowed under the
the amount of the award to the challenged arbitrator, shall applicable rule.
receive evidence of expenses to be reimbursed, which may
consist of air tickets, hotel bills and expenses, and inland
The petitioner shall further allege that one or all of the
transportation. The court shall direct the challenging party
parties had requested the arbitrator to withdraw but he
to pay the amount of the award to the court for the
failed or refused to do so.
account of the challenged arbitrator, in default of which
the court may issue a writ of execution to enforce the
award. Rule 8.5. Comment/Opposition. - The comment/opposition
must be filed within fifteen (15) days from service of the
petition.
RULE 8: TERMINATION OF THE MANDATE OF
ARBITRATOR
Rule 8.6. Court action. - After hearing, if the court finds
merit in the petition, it shall terminate the mandate of the
Rule 8.1. Who may request termination and on what
arbitrator who refuses to withdraw from his office;
grounds.- Any of the parties to an arbitration may request
otherwise, it shall dismiss the petition.
for the termination of the mandate of an arbitrator where
an arbitrator becomes de jure or de facto unable to
perform his function or for other reasons fails to act Rule 8.7. No motion for reconsideration or appeal. - Any
without undue delay and that arbitrator, upon request of order of the court resolving the petition shall be
any party, fails or refuses to withdraw from his office. immediately executory and shall not be subject of a
motion for reconsideration, appeal or petition for
certiorari.
Rule 8.2. When to request. - If an arbitrator refuses to
withdraw from his office, and subsequently, the
Appointing Authority fails or refuses to decide on the Rule 8.8. Appointment of substitute arbitrator. - Where the
termination of the mandate of that arbitrator within such mandate of an arbitrator is terminated, or he withdraws
period as may be allowed under the applicable rule or, in from office for any other reason, or because of his
the absence thereof, within thirty (30) days from the time mandate is revoked by agreement of the parties or is
the request is brought before him, any party may file with terminated for any other reason, a substitute arbitrator
the court a petition to terminate the mandate of that shall be appointed according to the rules that were
arbitrator. applicable to the appointment of the arbitrator being
replaced.
Rule 8.3. Venue. - A petition to terminate the mandate of
an arbitrator may, at that petitioner’s option, be filed with RULE 9: ASSISTANCE IN TAKING EVIDENCE
the Regional Trial Court (a) where the principal place of
business of any of the parties is located, (b) where any of Rule 9.1. Who may request assistance. - Any party to an
the parties who are individuals resides, or (c) in the arbitration, whether domestic or foreign, may request the
National Capital Region. court to provide assistance in taking evidence.

Rule 8.4. Contents of the petition. - The petition shall state Rule 9.2. When assistance may be sought. - Assistance
the following: may be sought at any time during the course of the arbitral
proceedings when the need arises.
a. The name of the arbitrator whose mandate is
sought to be terminated; Rule 9.3. Venue. - A petition for assistance in taking
evidence may, at the option of the petitioner, be filed with
b. The ground/s for termination; Regional Trial Court where (a) arbitration proceedings are

28
taking place, (b) the witnesses reside or may be found, or Rule 9.7. Comment/Opposition. - The comment/opposition
(c) where the evidence may be found. must be filed within fifteen (15) days from service of the
petition.
Rule 9.4. Ground. - The court may grant or execute the
request for assistance in taking evidence within its Rule 9.8. Court action. - If the evidence sought is not
competence and according to the rules of evidence. privileged, and is material and relevant, the court shall
grant the assistance in taking evidence requested and shall
Rule 9.5. Type of assistance. - A party requiring assistance order petitioner to pay costs attendant to such assistance.
in the taking of evidence may petition the court to direct
any person, including a representative of a corporation, Rule 9.9. Relief against court action. - The order granting
association, partnership or other entity (other than a party assistance in taking evidence shall be immediately
to the ADR proceedings or its officers) found in the executory and not subject to reconsideration or appeal. If
Philippines, for any of the following: the court declines to grant assistance in taking evidence,
the petitioner may file a motion for reconsideration or
a. To comply with a subpoena ad appeal.
testificandum and/or subpoena duces tecum;
Rule 9.10. Perpetuation of testimony before the arbitral
b. To appear as a witness before an officer for tribunal is constituted. - At anytime before arbitration is
the taking of his deposition upon oral commenced or before the arbitral tribunal is constituted,
examination or by written interrogatories; any person who desires to perpetuate his testimony or
that of another person may do so in accordance with Rule
24 of the Rules of Court.
c. To allow the physical examination of the
condition of persons, or the inspection of things
or premises and, when appropriate, to allow the Rule 9.11. Consequence of disobedience. - The court may
recording and/or documentation of condition of impose the appropriate sanction on any person who
persons, things or premises (i.e., photographs, disobeys its order to testify when required or perform any
video and other means of act required of him.
recording/documentation);
RULE 10: CONFIDENTIALITY/PROTECTIVE ORDERS
d. To allow the examination and copying of
documents; and Rule 10.1. Who may request confidentiality. - A party,
counsel or witness who disclosed or who was compelled to
e. To perform any similar acts. disclose information relative to the subject of ADR under
circumstances that would create a reasonable expectation,
on behalf of the source, that the information shall be kept
Rule 9.6. Contents of the petition. - The petition must state
confidential has the right to prevent such information from
the following:
being further disclosed without the express written
consent of the source or the party who made the
a. The fact that there is an ongoing arbitration disclosure.
proceeding even if such proceeding could not
continue due to some legal impediments;
Rule 10.2. When request made. - A party may request a
protective order at anytime there is a need to enforce the
b. The arbitral tribunal ordered the taking of confidentiality of the information obtained, or to be
evidence or the party desires to present obtained, in ADR proceedings.
evidence to the arbitral tribunal;
Rule 10.3. Venue. - A petition for a protective order may
c. Materiality or relevance of the evidence to be be filed with the Regional Trial Court where that order
taken; and would be implemented.

d. The names and addresses of the intended If there is a pending court proceeding in which the
witness/es, place where the evidence may be information obtained in an ADR proceeding is required to
found, the place where the premises to be be divulged or is being divulged, the party seeking to
inspected are located or the place where the enforce the confidentiality of the information may file a
acts required are to be done. motion with the court where the proceedings are pending
to enjoin the confidential information from being divulged
or to suppress confidential information.

29
Rule 10.4. Grounds. - A protective order may be granted For mediation proceedings, the court shall be further
only if it is shown that the applicant would be materially guided by the following principles:
prejudiced by an unauthorized disclosure of the
information obtained, or to be obtained, during an ADR a. Information obtained through mediation shall
proceeding. be privileged and confidential.

Rule 10.5. Contents of the motion or petition. - The b. A party, a mediator, or a nonparty participant
petition or motion must state the following: may refuse to disclose and may prevent any
other person from disclosing a mediation
a. That the information sought to be protected communication.
was obtained, or would be obtained, during an
ADR proceeding; c. In such an adversarial proceeding, the
following persons involved or previously involved
b. The applicant would be materially prejudiced in a mediation may not be compelled to disclose
by the disclosure of that information; confidential information obtained during the
mediation: (1) the parties to the dispute; (2) the
c. The person or persons who are being asked to mediator or mediators; (3) the counsel for the
divulge the confidential information participated parties: (4) the nonparty participants; (5) any
in an ADR proceedings; and persons hired or engaged in connection with the
mediation as secretary, stenographer; clerk or
assistant; and (6) any other person who obtains
d. The time, date and place when the ADR
or possesses confidential information by reason
proceedings took place.
of his/ her profession.

Apart from the other submissions, the movant must set

d. The protection of the ADR Laws shall continue
the motion for hearing and contain a notice of hearing in
to apply even if a mediator is found to have
accordance with Rule 15 of the Rules of Court.
failed to act impartially.

Rule 10.6. Notice. - Notice of a request for a protective

e. A mediator may not be called to testify to
order made through a motion shall be made to the
provide information gathered in mediation. A
opposing parties in accordance with Rule 15 of the Rules of
mediator who is wrongfully subpoenaed shall be
Court.
reimbursed the full cost of his attorney fees and
related expenses.
Rule 10.7. Comment/Opposition. - The
comment/opposition must be filed within fifteen (15) days
Rule 10.9. Relief against court action. - The order enjoining
from service of the petition. The opposition or comment
a person or persons from divulging confidential
may be accompanied by written proof that (a) the
information shall be immediately executory and may not
information is not confidential, (b) the information was not
be enjoined while the order is being questioned with the
obtained during an ADR proceeding, (c) there was a waiver
appellate courts.
of confidentiality, or (d) the petitioner/movant is
precluded from asserting confidentiality.
If the court declines to enjoin a person or persons from
divulging confidential information, the petitioner may file a
Rule 10.8. Court action. - If the court finds the petition or
motion for reconsideration or appeal.
motion meritorious, it shall issue an order enjoining a
person or persons from divulging confidential information.
Rule 10.10. Consequence of disobedience. - Any person
who disobeys the order of the court to cease from
In resolving the petition or motion, the courts shall be
divulging confidential information shall be imposed the
guided by the following principles applicable to all ADR
proper sanction by the court.
proceedings: Confidential information shall not be subject
to discovery and shall be inadmissible in any adversarial
proceeding, whether judicial or quasi judicial. However, RULE 11: CONFIRMATION, CORRECTION OR VACATION OF
evidence or information that is otherwise admissible or AWARD IN DOMESTIC ARBITRATION
subject to discovery does not become inadmissible or
protected from discovery solely by reason of its use Rule 11.1. Who may request confirmation, correction or
therein. vacation. - Any party to a domestic arbitration may
petition the court to confirm, correct or vacate a domestic
arbitral award.

30
Rule 11.2. When to request confirmation, prejudiced the rights of any party such as
correction/modification or vacation. - refusing to postpone a hearing upon sufficient
cause shown or to hear evidence pertinent and
(A) Confirmation. - At any time after the lapse of thirty (30) material to the controversy;
days from receipt by the petitioner of the arbitral award,
he may petition the court to confirm that award. d. One or more of the arbitrators was
disqualified to act as such under the law and
(B) Correction/Modification. - Not later than thirty (30) willfully refrained from disclosing such
days from receipt of the arbitral award, a party may disqualification; or
petition the court to correct/modify that award.
e. The arbitral tribunal exceeded its powers, or
(C) Vacation. - Not later than thirty (30) days from receipt so imperfectly executed them, such that a
of the arbitral award, a party may petition the court to complete, final and definite award upon the
vacate that award. subject matter submitted to them was not made.

(D) A petition to vacate the arbitral award may be filed, in The award may also be vacated on any or all of the
opposition to a petition to confirm the arbitral award, not following grounds:
later than thirty (30) days from receipt of the award by the
petitioner. A petition to vacate the arbitral award filed a. The arbitration agreement did not exist, or is
beyond the reglementary period shall be dismissed. invalid for any ground for the revocation of a
contract or is otherwise unenforceable; or
(E) A petition to confirm the arbitral award may be filed, in
opposition to a petition to vacate the arbitral award, at b. A party to arbitration is a minor or a person
any time after the petition to vacate such arbitral award is judicially declared to be incompetent.
filed. The dismissal of the petition to vacate the arbitral
award for having been filed beyond the reglementary The petition to vacate an arbitral award on the ground
period shall not result in the dismissal of the petition for that the party to arbitration is a minor or a person
the confirmation of such arbitral award. judicially declared to be incompetent shall be filed only on
behalf of the minor or incompetent and shall allege that
(F) The filing of a petition to confirm an arbitral award shall (a) the other party to arbitration had knowingly entered
not authorize the filing of a belated petition to vacate or into a submission or agreement with such minor or
set aside such award in opposition thereto. incompetent, or (b) the submission to arbitration was
made by a guardian or guardian ad litem who was not
(G) A petition to correct an arbitral award may be included authorized to do so by a competent court.
as part of a petition to confirm the arbitral award or as a
petition to confirm that award. In deciding the petition to vacate the arbitral award, the
court shall disregard any other ground than those
Rule 11.3. Venue. - The petition for confirmation, enumerated above.
correction/modification or vacation of a domestic arbitral
award may be filed with Regional Trial Court having (B) To correct/modify an arbitral award. - The Court may
jurisdiction over the place in which one of the parties is correct/modify or order the arbitral tribunal to
doing business, where any of the parties reside or where correct/modify the arbitral award in the following cases:
arbitration proceedings were conducted.
a. Where there was an evident miscalculation of
Rule 11.4. Grounds. - (A) To vacate an arbitral award. - The figures or an evident mistake in the description
arbitral award may be vacated on the following grounds: of any person, thing or property referred to in
the award;
a. The arbitral award was procured through
corruption, fraud or other undue means; b. Where the arbitrators have awarded upon a
matter not submitted to them, not affecting the
b. There was evident partiality or corruption in merits of the decision upon the matter
the arbitral tribunal or any of its members; submitted;

c. The arbitral tribunal was guilty of misconduct c. Where the arbitrators have omitted to resolve
or any form of misbehavior that has materially an issue submitted to them for resolution; or

31
 d. Where the award is imperfect in a matter of Rule 11.6. Contents of petition. - The petition must state
form not affecting the merits of the controversy, the following:
and if it had been a commissioner’s report, the
defect could have been amended or disregarded a. The addresses of the parties and any change
by the Court. thereof;

Rule 11.5. Form of petition. - An application to vacate an b. The jurisdictional issues raised by a party
arbitral award shall be in the form of a petition to vacate during arbitration proceedings;
or as a petition to vacate in opposition to a petition to
confirm the same award.
c. The grounds relied upon by the parties in
seeking the vacation of the arbitral award
An application to correct/modify an arbitral award may be whether the petition is a petition for the
included in a petition to confirm an arbitral award or in a vacation or setting aside of the arbitral award or
petition to vacate in opposition to confirm the same a petition in opposition to a petition to confirm
award. the award; and

When a petition to confirm an arbitral award is pending d. A statement of the date of receipt of the
before a court, the party seeking to vacate or arbitral award and the circumstances under
correct/modify said award may only apply for those reliefs which it was received by the petitioner.
through a petition to vacate or correct/modify the award
in opposition to the petition to confirm the award
Apart from other submissions, the petitioner must attach
provided that such petition to vacate or correct/modify is
to the petition the following:
filed within thirty (30) days from his receipt of the award.
A petition to vacate or correct/modify an arbitral award
filed in another court or in a separate case before the a. An authentic copy of the arbitration
same court shall be dismissed, upon appropriate motion, agreement;
as a violation of the rule against forum-shopping.
b. An authentic copy of the arbitral award;
When a petition to vacate or correct/modify an arbitral
award is pending before a court, the party seeking to c. A certification against forum shopping
confirm said award may only apply for that relief through a executed by the applicant in accordance with
petition to confirm the same award in opposition to the Section 5 of Rule 7 of the Rules of Court; and
petition to vacate or correct/modify the award. A petition
to confirm or correct/modify an arbitral award filed as d. An authentic copy or authentic copies of the
separate proceeding in another court or in a different case appointment of an arbitral tribunal.
before the same court shall be dismissed, upon
appropriate motion, as a violation of the rule against
forum shopping. Rule 11.7. Notice. - Upon finding that the petition filed
under this Rule is sufficient both in form and in substance,
the Court shall cause notice and a copy of the petition to
As an alternative to the dismissal of a second petition for be delivered to the respondent allowing him to file a
confirmation, vacation or correction/modification of an comment or opposition thereto within fifteen (15) days
arbitral award filed in violation of the non-forum shopping from receipt of the petition. In lieu of an opposition, the
rule, the court or courts concerned may allow the respondent may file a petition in opposition to the
consolidation of the two proceedings in one court and in petition.
one case.

The petitioner may within fifteen (15) days from receipt of

Where the petition to confirm the award and petition to the petition in opposition thereto file a reply.
vacate or correct/modify were simultaneously filed by the
parties in the same court or in different courts in the
Philippines, upon motion of either party, the court may Rule 11.8. Hearing. - If the Court finds from the petition or
order the consolidation of the two cases before either petition in opposition thereto that there are issues of fact,
court. it shall require the parties, within a period of not more
than fifteen (15) days from receipt of the order, to
simultaneously submit the affidavits of all of their
In all instances, the petition must be verified by a person witnesses and reply affidavits within ten (10) days from
who has knowledge of the jurisdictional facts. receipt of the affidavits to be replied to. There shall be
attached to the affidavits or reply affidavits documents

32
relied upon in support of the statements of fact in such An arbitral award shall enjoy the presumption that it was
affidavits or reply affidavits. made and released in due course of arbitration and is
subject to confirmation by the court
If the petition or the petition in opposition thereto is one
for vacation of an arbitral award, the interested party in In resolving the petition or petition in opposition thereto
arbitration may oppose the petition or the petition in in accordance with these Special ADR Rules, the court shall
opposition thereto for the reason that the grounds cited in either confirm or vacate the arbitral award. The court shall
the petition or the petition in opposition thereto, not disturb the arbitral tribunal’s determination of facts
assuming them to be true, do not affect the merits of the and/or interpretation of law.
case and may be cured or remedied. Moreover, the
interested party may request the court to suspend the In a petition to vacate an award or in petition to vacate an
proceedings for vacation for a period of time and to direct award in opposition to a petition to confirm the award, the
the arbitral tribunal to reopen and conduct a new hearing petitioner may simultaneously apply with the Court to
and take such other action as will eliminate the grounds refer the case back to the same arbitral tribunal for the
for vacation of the award. The opposition shall be purpose of making a new or revised award or to direct a
supported by a brief of legal arguments to show the new hearing, or in the appropriate case, order the new
existence of a sufficient legal basis for the opposition. hearing before a new arbitral tribunal, the members of
which shall be chosen in the manner provided in the
If the ground of the petition to vacate an arbitral award is arbitration agreement or submission, or the law. In the
that the arbitration agreement did not exist, is invalid or latter case, any provision limiting the time in which the
otherwise unenforceable, and an earlier petition for arbitral tribunal may make a decision shall be deemed
judicial relief under Rule 3 had been filed, a copy of such applicable to the new arbitral tribunal.
petition and of the decision or final order of the court shall
be attached thereto. But if the ground was raised before In referring the case back to the arbitral tribunal or to a
the arbitral tribunal in a motion to dismiss filed not later new arbitral tribunal pursuant to Rule 24 of Republic Act
than the submission of its answer, and the arbitral tribunal No. 876, the court may not direct it to revise its award in a
ruled in favor of its own jurisdiction as a preliminary particular way, or to revise its findings of fact or
question which was appealed by a party to the Regional conclusions of law or otherwise encroach upon the
Trial Court, a copy of the order, ruling or preliminary independence of an arbitral tribunal in the making of a
award or decision of the arbitral tribunal, the appeal final award.
therefrom to the Court and the order or decision of the
Court shall all be attached to the petition.
RULE 12: RECOGNITION AND ENFORCEMENT OR SETTING
ASIDE OF AN INTERNATIONALCOMMERCIAL
If the ground of the petition is that the petitioner is an ARBITRATION AWARD
infant or a person judicially declared to be incompetent,
there shall be attached to the petition certified copies of
Rule 12.1. Who may request recognition and enforcement
documents showing such fact. In addition, the petitioner
or setting aside. - Any party to an international commercial
shall show that even if the submission or arbitration
arbitration in the Philippines may petition the proper court
agreement was entered into by a guardian or guardian ad
to recognize and enforce or set aside an arbitral award.
litem, the latter was not authorized by a competent court
to sign such the submission or arbitration agreement.
Rule 12.2. When to file petition. - (A) Petition to recognize
and enforce. - The petition for enforcement and
If on the basis of the petition, the opposition, the affidavits
recognition of an arbitral award may be filed anytime from
and reply affidavits of the parties, the court finds that
receipt of the award. If, however, a timely petition to set
there is a need to conduct an oral hearing, the court shall
aside an arbitral award is filed, the opposing party must
set the case for hearing. This case shall have preference
file therein and in opposition thereto the petition for
over other cases before the court, except criminal cases.
recognition and enforcement of the same award within
During the hearing, the affidavits of witnesses shall take
the period for filing an opposition.
the place of their direct testimonies and they shall
immediately be subject to cross-examination thereon. The
Court shall have full control over the proceedings in order (B) Petition to set aside. - The petition to set aside an
to ensure that the case is heard without undue delay. arbitral award may only be filed within three (3) months
from the time the petitioner receives a copy thereof. If a
timely request is made with the arbitral tribunal for
Rule 11.9. Court action. - Unless a ground to vacate an
correction, interpretation or additional award, the three
arbitral award under Rule 11.5 above is fully established,
(3) month period shall be counted from the time the
the court shall confirm the award.
petitioner receives the resolution by the arbitral tribunal of
that request.

33
A petition to set aside can no longer be filed after the (iv). The composition of the arbitral
lapse of the three (3) month period. The dismissal of a tribunal or the arbitral procedure was
petition to set aside an arbitral award for being time- not in accordance with the agreement
barred shall not automatically result in the approval of the of the parties, unless such agreement
petition filed therein and in opposition thereto for was in conflict with a provision of
recognition and enforcement of the same award. Failure Philippine law from which the parties
to file a petition to set aside shall preclude a party from cannot derogate, or, failing such
raising grounds to resist enforcement of the award. agreement, was not in accordance with
Philippine law;
Rule 12.3. Venue. - A petition to recognize and enforce or
set aside an arbitral award may, at the option of the b. The court finds that:
petitioner, be filed with the Regional Trial Court: (a) where
arbitration proceedings were conducted; (b) where any of (i). The subject-matter of the dispute is
the assets to be attached or levied upon is located; (c) not capable of settlement by
where the act to be enjoined will be or is being performed; arbitration under the law of the
(d) where any of the parties to arbitration resides or has its Philippines; or
place of business; or (e) in the National Capital Judicial
Region.
(ii). The recognition or enforcement of
the award would be contrary to public
Rule 12.4. Grounds to set aside or resist enforcement. - The policy.
court may set aside or refuse the enforcement of the
arbitral award only if:
In deciding the petition, the Court shall disregard any
other ground to set aside or enforce the arbitral award
a. The party making the application furnishes other than those enumerated above.
proof that:
The petition to set-aside or a pleading resisting the
(i). A party to the arbitration enforcement of an arbitral award on the ground that a
agreement was under some incapacity, party was a minor or an incompetent shall be filed only on
or the said agreement is not valid behalf of the minor or incompetent and shall allege that
under the law to which the parties (a) the other party to arbitration had knowingly entered
have subjected it or, failing any into a submission or agreement with such minor or
indication thereof, under Philippine incompetent, or (b) the submission to arbitration was
law; or made by a guardian or guardian ad litem who was not
authorized to do so by a competent court.
(ii). The party making the application to
set aside or resist enforcement was not Rule 12.5. Exclusive recourse against arbitral award. -
given proper notice of the Recourse to a court against an arbitral award shall be
appointment of an arbitrator or of the made only through a petition to set aside the arbitral
arbitral proceedings or was otherwise award and on grounds prescribed by the law that governs
unable to present his case; or international commercial arbitration. Any other recourse
from the arbitral award, such as by appeal or petition for
(iii). The award deals with a dispute not review or petition for certiorari or otherwise, shall be
contemplated by or not falling within dismissed by the court.
the terms of the submission to
arbitration, or contains decisions on Rule 12.6. Form. - The application to recognize and
matters beyond the scope of the enforce or set aside an arbitral award, whether made
submission to arbitration; provided through a petition to recognize and enforce or to set aside
that, if the decisions on matters or as a petition to set aside the award in opposition
submitted to arbitration can be thereto, or through a petition to set aside or petition to
separated from those not so recognize and enforce in opposition thereto, shall be
submitted, only that part of the award verified by a person who has personal knowledge of the
which contains decisions on matters facts stated therein.
not submitted to arbitration may be
set aside or only that part of the award
When a petition to recognize and enforce an arbitral
which contains decisions on matters
award is pending, the application to set it aside, if not yet
submitted to arbitration may be
enforced; or

34
time-barred, shall be made through a petition to set aside documents showing such fact. In addition, the petitioner
the same award in the same proceedings. shall show that even if the submission or arbitration
agreement was entered into by a guardian or guardian ad
When a timely petition to set aside an arbitral award is litem, the latter was not authorized by a competent court
filed, the opposing party may file a petition for recognition to sign such the submission or arbitration agreement.
and enforcement of the same award in opposition thereto.
In either case, if another court was previously requested to
Rule 12.7. Contents of petition. - (A) Petition to recognize resolve and/or has resolved, on appeal, the arbitral
and enforce. - The petition to recognize and enforce or tribunal’s preliminary determination in favor of its own
petition to set aside in opposition thereto, or petition to jurisdiction, the petitioner shall apprise the court before
set aside or petition to recognize and enforce in opposition which the petition to recognize and enforce or set aside is
thereto, shall state the following: pending of the status of the appeal or its resolution.

a. The addresses of record, or any change Rule 12.8. Notice. - Upon finding that the petition filed
thereof, of the parties to arbitration; under this Rule is sufficient both in form and in substance,
the court shall cause notice and a copy of the petition to
be delivered to the respondent directing him to file an
b. A statement that the arbitration agreement or
opposition thereto within fifteen (15) days from receipt of
submission exists;
the petition. In lieu of an opposition, the respondent may
file a petition to set aside in opposition to a petition to
c. The names of the arbitrators and proof of their recognize and enforce, or a petition to recognize and
appointment; enforce in opposition to a petition to set aside.

d. A statement that an arbitral award was issued The petitioner may within fifteen (15) days from receipt of
and when the petitioner received it; and the petition to set aside in opposition to a petition to
recognize and enforce, or from receipt of the petition to
e. The relief sought. recognize and enforce in opposition to a petition to set
aside, file a reply.
Apart from other submissions, the petitioner shall attach
to the petition the following: Rule 12.9. Submission of documents. - If the court finds
that the issue between the parties is mainly one of law,
a. An authentic copy of the arbitration the parties may be required to submit briefs of legal
agreement; arguments, not more than fifteen (15) days from receipt of
the order, sufficiently discussing the legal issues and the
legal basis for the relief prayed for by each of them.
b. An authentic copy of the arbitral award;
If the court finds from the petition or petition in opposition
c. A verification and certification against forum thereto that there are issues of fact relating to the
shopping executed by the applicant in ground(s) relied upon for the court to set aside, it shall
accordance with Sections 4 and 5 of Rule 7 of the require the parties within a period of not more than
Rules of Court; and fifteen (15) days from receipt of the order simultaneously
to submit the affidavits of all of their witnesses and reply
d. An authentic copy or authentic copies of the affidavits within ten (10) days from receipt of the affidavits
appointment of an arbitral tribunal. to be replied to. There shall be attached to the affidavits or
reply affidavits, all documents relied upon in support of
(B) Petition to set aside. - The petition to set aside or the statements of fact in such affidavits or reply affidavits.
petition to set aside in opposition to a petition to
recognize and enforce an arbitral award in international Rule 12.10. Hearing. - If on the basis of the petition, the
commercial arbitration shall have the same contents as a opposition, the affidavits and reply affidavits of the
petition to recognize and enforce or petition to recognize parties, the court finds that there is a need to conduct an
and enforce in opposition to a petition to set aside an oral hearing, the court shall set the case for hearing. This
arbitral award. In addition, the said petitions should state case shall have preference over other cases before the
the grounds relied upon to set it aside. court, except criminal cases. During the hearing, the
affidavits of witnesses shall take the place of their direct
Further, if the ground of the petition to set aside is that testimonies and they shall immediately be subject to
the petitioner is a minor or found incompetent by a court, cross-examination thereon. The court shall have full
there shall be attached to the petition certified copies of

35
control over the proceedings in order to ensure that the The prevailing party shall be entitled to an award of costs,
case is heard without undue delay. which shall include reasonable attorney’s fees of the
prevailing party against the unsuccessful party. The court
Rule 12.11. Suspension of proceedings to set aside. - The shall determine the reasonableness of the claim for
court when asked to set aside an arbitral award may, attorney’s fees.
where appropriate and upon request by a party, suspend
the proceedings for a period of time determined by it to RULE 13: RECOGNITION AND ENFORCEMENT OF A
give the arbitral tribunal an opportunity to resume the FOREIGN ARBITRAL AWARD
arbitral proceedings or to take such other action as in the
arbitral tribunal’s opinion will eliminate the grounds for Rule 13.1. Who may request recognition and enforcement.
setting aside. The court, in referring the case back to the - Any party to a foreign arbitration may petition the court
arbitral tribunal may not direct it to revise its award in a to recognize and enforce a foreign arbitral award.
particular way, or to revise its findings of fact or
conclusions of law or otherwise encroach upon the
Rule 13.2. When to petition. - At any time after receipt of a
independence of an arbitral tribunal in the making of a
foreign arbitral award, any party to arbitration may
final award.
petition the proper Regional Trial Court to recognize and
enforce such award.
The court when asked to set aside an arbitral award may
also, when the preliminary ruling of an arbitral tribunal
Rule 13.3. Venue. - The petition to recognize and enforce a
affirming its jurisdiction to act on the matter before it had
foreign arbitral award shall be filed, at the option of the
been appealed by the party aggrieved by such preliminary
petitioner, with the Regional Trial Court (a) where the
ruling to the court, suspend the proceedings to set aside to
assets to be attached or levied upon is located, (b) where
await the ruling of the court on such pending appeal or, in
the act to be enjoined is being performed, (c) in the
the alternative, consolidate the proceedings to set aside
principal place of business in the Philippines of any of the
with the earlier appeal.
parties, (d) if any of the parties is an individual, where any
of those individuals resides, or (e) in the National Capital
Rule 12.12. Presumption in favor of confirmation. - It is Judicial Region.
presumed that an arbitral award was made and released in
due course and is subject to enforcement by the court,
Rule 13.4. Governing law and grounds to refuse
unless the adverse party is able to establish a ground for
recognition and enforcement. - The recognition and
setting aside or not enforcing an arbitral award.
enforcement of a foreign arbitral award shall be governed
by the 1958 New York Convention on the Recognition and
Rule 12.13. Judgment of the court. - Unless a ground to set Enforcement of Foreign Arbitral Awards (the "New York
aside an arbitral award under Rule 12.4 above is fully Convention") and this Rule. The court may, upon grounds
established, the court shall dismiss the petition. If, in the of comity and reciprocity, recognize and enforce a foreign
same proceedings, there is a petition to recognize and arbitral award made in a country that is not a signatory to
enforce the arbitral award filed in opposition to the the New York Convention as if it were a Convention
petition to set aside, the court shall recognize and enforce Award.
the award.
A Philippine court shall not set aside a foreign arbitral
In resolving the petition or petition in opposition thereto award but may refuse it recognition and enforcement on
in accordance with the Special ADR Rules, the court shall any or all of the following grounds:
either set aside or enforce the arbitral award. The court
shall not disturb the arbitral tribunal’s determination of
a. The party making the application to refuse
facts and/or interpretation of law.
recognition and enforcement of the award
furnishes proof that:
Rule 12.14. Costs. - Unless otherwise agreed upon by the
parties in writing, at the time the case is submitted to the
(i). A party to the arbitration
court for decision, the party praying for recognition and
agreement was under some incapacity;
enforcement or setting aside of an arbitral award shall
or the said agreement is not valid
submit a statement under oath confirming the costs he has
under the law to which the parties
incurred only in the proceedings for such recognition and
have subjected it or, failing any
enforcement or setting aside. The costs shall include the
indication thereof, under the law of
attorney’s fees the party has paid or is committed to pay
the country where the award was
to his counsel of record.
made; or

36
 (ii). The party making the application and whether such country is a signatory to the
was not given proper notice of the New York Convention; and
appointment of an arbitrator or of the
arbitral proceedings or was otherwise c. The relief sought.
unable to present his case; or
Apart from other submissions, the petition shall have
(iii). The award deals with a dispute not attached to it the following:
contemplated by or not falling within
the terms of the submission to
a. An authentic copy of the arbitration
arbitration, or contains decisions on
agreement; and
matters beyond the scope of the
submission to arbitration; provided
that, if the decisions on matters b. An authentic copy of the arbitral award.
submitted to arbitration can be
separated from those not so If the foreign arbitral award or agreement to arbitrate or
submitted, only that part of the award submission is not made in English, the petitioner shall also
which contains decisions on matters attach to the petition a translation of these documents
not submitted to arbitration may be into English. The translation shall be certified by an official
set aside; or or sworn translator or by a diplomatic or consular agent.

(iv). The composition of the arbitral Rule 13.6. Notice and opposition. - Upon finding that the
tribunal or the arbitral procedure was petition filed under this Rule is sufficient both in form and
not in accordance with the agreement in substance, the court shall cause notice and a copy of the
of the parties or, failing such petition to be delivered to the respondent allowing him to
agreement, was not in accordance with file an opposition thereto within thirty (30) days from
the law of the country where receipt of the notice and petition.
arbitration took place; or
Rule 13.7. Opposition. - The opposition shall be verified by
(v). The award has not yet become a person who has personal knowledge of the facts stated
binding on the parties or has been set therein.
aside or suspended by a court of the
country in which that award was Rule 13.8. Submissions. - If the court finds that the issue
made; or between the parties is mainly one of law, the parties may
be required to submit briefs of legal arguments, not more
b. The court finds that: than thirty (30) days from receipt of the order, sufficiently
discussing the legal issues and the legal bases for the relief
(i). The subject-matter of the dispute is prayed for by each other.
not capable of settlement or resolution
by arbitration under Philippine law; or If, from a review of the petition or opposition, there are
issues of fact relating to the ground/s relied upon for the
(ii). The recognition or enforcement of court to refuse enforcement, the court shall, motu
the award would be contrary to public proprio or upon request of any party, require the parties to
policy. simultaneously submit the affidavits of all of their
witnesses within a period of not less than fifteen (15) days
nor more than thirty (30) days from receipt of the order.
The court shall disregard any ground for opposing the
The court may, upon the request of any party, allow the
recognition and enforcement of a foreign arbitral award
submission of reply affidavits within a period of not less
other than those enumerated above.
than fifteen (15) days nor more than thirty (30) days from
receipt of the order granting said request. There shall be
Rule 13.5. Contents of petition. - The petition shall state attached to the affidavits or reply affidavits all documents
the following: relied upon in support of the statements of fact in such
affidavits or reply affidavits.
a. The addresses of the parties to arbitration;
Rule 13.9. Hearing. - The court shall set the case for
b. In the absence of any indication in the award, hearing if on the basis of the foregoing submissions there
the country where the arbitral award was made is a need to do so. The court shall give due priority to
hearings on petitions under this Rule. During the hearing,

37
the affidavits of witnesses shall take the place of their on arbitration shall be applied in proceedings before the
direct testimonies and they shall immediately be subject to court relative to a dispute subject to mediation.
cross-examination. The court shall have full control over
the proceedings in order to ensure that the case is heard RULE 15: DEPOSIT AND ENFORCEMENT OF MEDIATED
without undue delay. SETTLEMENT AGREEMENTS

Rule 13.10. Adjournment/deferment of decision on Rule 15.1. Who makes a deposit. - Any party to a
enforcement of award. - The court before which a petition mediation that is not court-annexed may deposit with the
to recognize and enforce a foreign arbitral award is court the written settlement agreement, which resulted
pending, may adjourn or defer rendering a decision from that mediation.
thereon if, in the meantime, an application for the setting
aside or suspension of the award has been made with a
Rule 15.2. When deposit is made. - At any time after an
competent authority in the country where the award was
agreement is reached, the written settlement agreement
made. Upon application of the petitioner, the court may
may be deposited.
also require the other party to give suitable security.

Rule 15.3. Venue. - The written settlement agreement may

Rule 13.11. Court action. - It is presumed that a foreign
be jointly deposited by the parties or deposited by one
arbitral award was made and released in due course of
party with prior notice to the other party/ies with the
arbitration and is subject to enforcement by the court.
Clerk of Court of the Regional Trial Court (a) where the
principal place of business in the Philippines of any of the
The court shall recognize and enforce a foreign arbitral parties is located; (b) if any of the parties is an individual,
award unless a ground to refuse recognition or where any of those individuals resides; or (c) in the
enforcement of the foreign arbitral award under this rule National Capital Judicial Region.
is fully established.
Rule 15.4. Registry Book. - The Clerk of Court of each
The decision of the court recognizing and enforcing a Regional Trial Court shall keep a Registry Book that shall
foreign arbitral award is immediately executory. chronologically list or enroll all the mediated settlement
agreements/settlement awards that are deposited with
In resolving the petition for recognition and enforcement the court as well as the names and address of the parties
of a foreign arbitral award in accordance with these thereto and the date of enrollment and shall issue a
Special ADR Rules, the court shall either [a] recognize Certificate of Deposit to the party that made the deposit.
and/or enforce or [b] refuse to recognize and enforce the
arbitral award. The court shall not disturb the arbitral Rule 15.5. Enforcement of mediated settlement
tribunal’s determination of facts and/or interpretation of agreement. - Any of the parties to a mediated settlement
law. agreement, which was deposited with the Clerk of Court of
the Regional Trial Court, may, upon breach thereof, file a
Rule 13.12. Recognition and enforcement of non- verified petition with the same court to enforce said
convention award. - The court shall, only upon grounds agreement.
provided by these Special ADR Rules, recognize and
enforce a foreign arbitral award made in a country not a Rule 15.6. Contents of petition. - The verified petition shall:
signatory to the New York Convention when such country
extends comity and reciprocity to awards made in the
a. Name and designate, as petitioner or
Philippines. If that country does not extend comity and
respondent, all parties to the mediated
reciprocity to awards made in the Philippines, the court
settlement agreement and those who may be
may nevertheless treat such award as a foreign judgment
affected by it;
enforceable as such under Rule 39, Section 48, of the Rules
of Court.
b. State the following:
PART III
PROVISIONS SPECIFIC TO MEDIATION (i). The addresses of the petitioner and
respondents; and
RULE 14: GENERAL PROVISIONS
(ii). The ultimate facts that would show
that the adverse party has defaulted to
Rule 14.1. Application of the rules on arbitration. -
perform its obligation under said
Whenever applicable and appropriate, the pertinent rules
agreement; and

38
 c. Have attached to it the following: If the arbitration agreement or other document evidencing
the existence of that agreement is already part of the
(i). An authentic copy of the mediated record, those documents need not be submitted to the
settlement agreement; and court provided that the movant has cited in the motion
particular references to the records where those
documents may be found.
(ii). Certificate of Deposit showing that
the mediated settlement agreement
was deposited with the Clerk of Court. The motion shall also contain a notice of hearing
addressed to all parties and shall specify the date and time
when the motion will be heard, which must not be later
Rule 15.7. Opposition. - The adverse party may file an
than fifteen (15) days after the filing of the motion. The
opposition, within fifteen (15) days from receipt of notice
movant shall ensure receipt by all parties of the motion at
or service of the petition, by submitting written proof of
least three days before the date of the hearing.
compliance with the mediated settlement agreement or
such other affirmative or negative defenses it may have.
Rule 17.3. Opposition. - Upon receipt of the motion to
refer the dispute to arbitration by CIAC, the other party
Rule 15.8. Court action. - After a summary hearing, if the
may file an opposition to the motion on or before the day
court finds that the agreement is a valid mediated
such motion is to be heard. The opposition shall clearly set
settlement agreement, that there is no merit in any of the
forth the reasons why the court should not dismiss the
affirmative or negative defenses raised, and the
case.
respondent has breached that agreement, in whole or in
part, the court shall order the enforcement thereof;
otherwise, it shall dismiss the petition. Rule 17.4. Hearing. - The court shall hear the motion only
once and for the purpose of clarifying relevant factual and
legal issues.
PART IV
PROVISIONS SPECIFIC TO CONSTRUCTION ARBITRATION
Rule 17.5. Court action. - If the other parties fail to file
their opposition on or before the day of the hearing, the
RULE 16: GENERAL PROVISIONS
court shall motu proprio resolve the motion only on the
basis of the facts alleged in the motion.
Rule 16.1. Application of the rules on arbitration. -
Whenever applicable and appropriate, the rules on
After hearing, the court shall dismiss the civil action and
arbitration shall be applied in proceedings before the court
refer the parties to arbitration if it finds, based on the
relative to a dispute subject to construction arbitration.
pleadings and supporting documents submitted by the
parties, that there is a valid and enforceable arbitration
RULE 17: REFERRAL TO CIAC agreement involving a construction dispute. Otherwise,
the court shall proceed to hear the case.
Rule 17.1. Dismissal of action. - A Regional Trial Court
before which a construction dispute is filed shall, upon All doubts shall be resolved in favor of the existence of a
becoming aware that the parties have entered into an construction dispute and the arbitration agreement.
arbitration agreement, motu proprio or upon motion made
not later than the pre-trial, dismiss the case and refer the
Rule 17.6. Referral immediately executory. - An order
parties to arbitration to be conducted by the Construction
dismissing the case and referring the dispute to arbitration
Industry Arbitration Commission (CIAC), unless all parties
by CIAC shall be immediately executory.
to arbitration, assisted by their respective counsel, submit
to the court a written agreement making the court, rather
than the CIAC, the body that would exclusively resolve the Rule 17.7. Multiple actions and parties. - The court shall
dispute. not decline to dismiss the civil action and make a referral
to arbitration by CIAC for any of the following reasons:
Rule 17.2. Form and contents of motion. - The request for
dismissal of the civil action and referral to arbitration shall a. Not all of the disputes subject of the civil
be through a verified motion that shall (a) contain a action may be referred to arbitration;
statement showing that the dispute is a construction
dispute; and (b) be accompanied by proof of the existence b. Not all of the parties to the civil action are
of the arbitration agreement. bound by the arbitration agreement and referral
to arbitration would result in multiplicity of suits;

39
 c. The issues raised in the civil action could be neutral third party has the power to make a binding
speedily and efficiently resolved in its entirety by resolution of the dispute), the herein rules on arbitration
the Court rather than in arbitration; shall apply.

d. Referral to arbitration does not appear to be Rule 18.4. Referral. - If a dispute is already before a court,
the most prudent action; or either party may before and during pre-trial, file a motion
for the court to refer the parties to other ADR
e. Dismissal of the civil action would prejudice forms/processes. At any time during court proceedings,
the rights of the parties to the civil action who even after pre-trial, the parties may jointly move for
are not bound by the arbitration agreement. suspension of the action pursuant to Article 2030 of the
Civil Code of the Philippines where the possibility of
compromise is shown.
The court may, however, issue an order directing the
inclusion in arbitration of those parties who are bound by
the arbitration agreement directly or by reference thereto Rule 18.5. Submission of settlement agreement. - Either
pursuant to Section 34 of Republic Act No. 9285. party may submit to the court, before which the case is
pending, any settlement agreement following a neutral or
an early neutral evaluation, mini-trial or mediation-
Furthermore, the court shall issue an order directing the
arbitration.
case to proceed with respect to the parties not bound by
the arbitration agreement.
PART VI
MOTION FOR RECONSIDERATION, APPEAL AND
Rule 17.8. Referral - If the parties manifest that they have
CERTIORARI
agreed to submit all or part of their dispute pending with
the court to arbitration by CIAC, the court shall refer them
to CIAC for arbitration. RULE 19: MOTION FOR RECONSIDERATION, APPEAL AND
CERTIORARI
PART V
PROVISIONS SPECIFIC TO OTHER FORMS OF ADR A. MOTION FOR RECONSIDERATION

RULE 18: GENERAL PROVISIONS Rule 19.1. Motion for reconsideration, when allowed. - A
party may ask the Regional Trial to reconsider its ruling on
the following:
Rule 18.1. Applicability of rules to other forms of ADR. -
This rule governs the procedure for matters brought
before the court involving the following forms of ADR: a. That the arbitration agreement is inexistent,
invalid or unenforceable pursuant to Rule 3.10
(B);
a. Early neutral evaluation;

b. Upholding or reversing the arbitral tribunal’s

b. Neutral evaluation;
jurisdiction pursuant to Rule 3.19;

c. Mini-trial;
c. Denying a request to refer the parties to
arbitration;
d. Mediation-arbitration;
d. Granting or denying a party an interim
e. A combination thereof; or measure of protection;

f. Any other ADR form. e. Denying a petition for the appointment of an

arbitrator;
Rule 18.2. Applicability of the rules on mediation. - If the
other ADR form/process is more akin to mediation (i.e., f. Refusing to grant assistance in taking evidence;
the neutral third party merely assists the parties in
reaching a voluntary agreement), the herein rules on
g. Enjoining or refusing to enjoin a person from
mediation shall apply.
divulging confidential information;

Rule 18.3. Applicability of rules on arbitration.-If the other

h. Confirming, vacating or correcting a domestic
ADR form/process is more akin to arbitration (i.e., the
arbitral award;

40
 i. Suspending the proceedings to set aside an Rule 19.3. Contents and notice. - The motion shall be made
international commercial arbitral award and in writing stating the ground or grounds therefor and shall
referring the case back to the arbitral tribunal; be filed with the court and served upon the other party or
parties.
j. Setting aside an international commercial
arbitral award; Rule 19.4. Opposition or comment. - Upon receipt of the
motion for reconsideration, the other party or parties shall
k. Dismissing the petition to set aside an have a non-extendible period of fifteen (15) days to file his
international commercial arbitral award, even if opposition or comment.
the court does not recognize and/or enforce the
same; Rule 19.5. Resolution of motion. - A motion for
reconsideration shall be resolved within thirty (30) days
l. Recognizing and/or enforcing, or dismissing a from receipt of the opposition or comment or upon the
petition to recognize and/or enforce an expiration of the period to file such opposition or
international commercial arbitral award; comment.

m. Declining a request for assistance in taking Rule 19.6. No second motion for reconsideration. - No
evidence; party shall be allowed a second motion for
reconsideration.
n. Adjourning or deferring a ruling on a petition
to set aside, recognize and/or enforce an B. GENERAL PROVISIONS ON APPEAL AND CERTIORARI
international commercial arbitral award;
Rule 19.7. No appeal or certiorari on the merits of an
o. Recognizing and/or enforcing a foreign arbitral arbitral award. - An agreement to refer a dispute to
award, or refusing recognition and/or arbitration shall mean that the arbitral award shall be final
enforcement of the same; and and binding. Consequently, a party to an arbitration is
precluded from filing an appeal or a petition for certiorari
questioning the merits of an arbitral award.
p. Granting or dismissing a petition to enforce a
deposited mediated settlement agreement.
Rule 19.8. Subject matter and governing rules. - The
remedy of an appeal through a petition for review or the
No motion for reconsideration shall be allowed from the
remedy of a special civil action of certiorari from a decision
following rulings of the Regional Trial Court:
of the Regional Trial Court made under the Special ADR
Rules shall be allowed in the instances, and instituted only
a. A prima facie determination upholding the in the manner, provided under this Rule.
existence, validity or enforceability of an
arbitration agreement pursuant to Rule 3.1 (A);
Rule 19.9. Prohibited alternative remedies. - Where the
remedies of appeal and certiorari are specifically made
b. An order referring the dispute to arbitration; available to a party under the Special ADR Rules, recourse
to one remedy shall preclude recourse to the other.
c. An order appointing an arbitrator;
Rule 19.10. Rule on judicial review on arbitration in the
d. Any ruling on the challenge to the Philippines. - As a general rule, the court can only vacate or
appointment of an arbitrator; set aside the decision of an arbitral tribunal upon a clear
showing that the award suffers from any of the infirmities
e. Any order resolving the issue of the or grounds for vacating an arbitral award under Section 24
termination of the mandate of an arbitrator; and of Republic Act No. 876 or under Rule 34 of the Model Law
in a domestic arbitration, or for setting aside an award in
an international arbitration under Article 34 of the Model
f. An order granting assistance in taking Law, or for such other grounds provided under these
evidence. Special Rules.

Rule 19.2. When to move for reconsideration. - A motion If the Regional Trial Court is asked to set aside an arbitral
for reconsideration may be filed with the Regional Trial award in a domestic or international arbitration on any
Court within a non-extendible period of fifteen (15) days ground other than those provided in the Special ADR
from receipt of the questioned ruling or order. Rules, the court shall entertain such ground for the setting

41
aside or non-recognition of the arbitral award only if the j. Recognizing and/or enforcing a foreign arbitral
same amounts to a violation of public policy. award;

The court shall not set aside or vacate the award of the k. Refusing recognition and/or enforcement of a
arbitral tribunal merely on the ground that the arbitral foreign arbitral award;
tribunal committed errors of fact, or of law, or of fact and
law, as the court cannot substitute its judgment for that of l. Granting or dismissing a petition to enforce a
the arbitral tribunal. deposited mediated settlement agreement; and

Rule 19.11. Rule on judicial review of foreign arbitral m. Reversing the ruling of the arbitral tribunal
award. - The court can deny recognition and enforcement upholding its jurisdiction.
of a foreign arbitral award only upon the grounds provided
in Article V of the New York Convention, but shall have no
Rule 19.13. Where to appeal. - An appeal under this Rule
power to vacate or set aside a foreign arbitral award.
shall be taken to the Court of Appeals within the period
and in the manner herein provided.

Rule 19.14. When to appeal. - The petition for review shall

C. APPEALS TO THE COURT OF APPEALS be filed within fifteen (15) days from notice of the decision
of the Regional Trial Court or the denial of the petitioner’s
Rule 19.12. Appeal to the Court of Appeals. - An appeal to motion for reconsideration.
the Court of Appeals through a petition for review under
this Special Rule shall only be allowed from the following Rule 19.15. How appeal taken. - Appeal shall be taken by
final orders of the Regional Trial Court: filing a verified petition for review in seven (7) legible
copies with the Court of Appeals, with proof of service of a
a. Granting or denying an interim measure of copy thereof on the adverse party and on the Regional
protection; Trial Court. The original copy of the petition intended for
the Court of Appeals shall be marked original by the
b. Denying a petition for appointment of an petitioner.
arbitrator;
Upon the filing of the petition and unless otherwise
c. Denying a petition for assistance in taking prescribed by the Court of Appeals, the petitioner shall pay
evidence; to the clerk of court of the Court of Appeals docketing fees
and other lawful fees of P3,500.00 and deposit the sum of
P500.00 for costs.
d. Enjoining or refusing to enjoin a person from
divulging confidential information;
Exemption from payment of docket and other lawful fees
and the deposit for costs may be granted by the Court of
e. Confirming, vacating or correcting/modifying a
Appeals upon a verified motion setting forth valid grounds
domestic arbitral award;
therefor. If the Court of Appeals denies the motion, the
petitioner shall pay the docketing and other lawful fees
f. Setting aside an international commercial and deposit for costs within fifteen days from the notice of
arbitration award; the denial.

g. Dismissing the petition to set aside an Rule 19.16. Contents of the Petition. - The petition for
international commercial arbitration award even review shall (a) state the full names of the parties to the
if the court does not decide to recognize or case, without impleading the court or agencies either as
enforce such award; petitioners or respondent, (b) contain a concise statement
of the facts and issues involved and the grounds relied
h. Recognizing and/or enforcing an international upon for the review, (c) be accompanied by a clearly
commercial arbitration award; legible duplicate original or a certified true copy of the
decision or resolution of the Regional Trial Court appealed
i. Dismissing a petition to enforce an from, together with certified true copies of such material
international commercial arbitration award; portions of the record referred to therein and other
supporting papers, and (d) contain a sworn certification
against forum shopping as provided in the Rules of Court.

42
The petition shall state the specific material dates showing Rule 19.23. Submission for decision. - If the petition is
that it was filed within the period fixed herein. given due course, the Court of Appeals may set the case
for oral argument or require the parties to submit
Rule 19.17. Effect of failure to comply with requirements. - memoranda within a period of fifteen (15) days from
The court shall dismiss the petition if it fails to comply with notice. The case shall be deemed submitted for decision
the foregoing requirements regarding the payment of the upon the filing of the last pleading or memorandum
docket and other lawful fees, the deposit for costs, proof required by the Court of Appeals.
of service of the petition, the contents and the documents,
which should accompany the petition. The Court of Appeals shall render judgment within sixty
(60) days from the time the case is submitted for decision.
Rule 19.18. Action on the petition. - The Court of Appeals
may require the respondent to file a comment on the Rule 19.24. Subject of appeal restricted in certain instance.
petition, not a motion to dismiss, within ten (10) days from - If the decision of the Regional Trial Court refusing to
notice, or dismiss the petition if it finds, upon recognize and/or enforce, vacating and/or setting aside an
consideration of the grounds alleged and the legal briefs arbitral award is premised on a finding of fact, the Court of
submitted by the parties, that the petition does not appear Appeals may inquire only into such fact to determine the
to be prima facie meritorious. existence or non-existence of the specific ground under
the arbitration laws of the Philippines relied upon by the
Rule 19.19. Contents of Comment. - The comment shall be Regional Trial Court to refuse to recognize and/or enforce,
filed within ten (10) days from notice in seven (7) legible vacate and/or set aside an award. Any such inquiry into a
copies and accompanied by clearly legible certified true question of fact shall not be resorted to for the purpose of
copies of such material portions of the record referred to substituting the court’s judgment for that of the arbitral
therein together with other supporting papers. The tribunal as regards the latter’s ruling on the merits of the
comment shall (a) point out insufficiencies or inaccuracies controversy.
in petitioner’s statement of facts and issues, and (b) state
the reasons why the petition should be denied or Rule 19.25. Party appealing decision of court confirming
dismissed. A copy thereof shall be served on the arbitral award required to post bond. - The Court of
petitioner, and proof of such service shall be filed with the Appeals shall within fifteen (15) days from receipt of the
Court of Appeals. petition require the party appealing from the decision or a
final order of the Regional Trial Court, either confirming or
Rule 19.20. Due course. - If upon the filing of a comment enforcing an arbitral award, or denying a petition to set
or such other pleading or documents as may be required aside or vacate the arbitral award to post a bond executed
or allowed by the Court of Appeals or upon the expiration in favor of the prevailing party equal to the amount of the
of the period for the filing thereof, and on the basis of the award.
petition or the records, the Court of Appeals finds prima
facie that the Regional Trial Court has committed an error Failure of the petitioner to post such bond shall be a
that would warrant reversal or modification of the ground for the Court of Appeals to dismiss the petition.
judgment, final order, or resolution sought to be reviewed,
it may give due course to the petition; otherwise, it shall D. SPECIAL CIVIL ACTION FOR CERTIORARI
dismiss the same.
Rule 19.26. Certiorari to the Court of Appeals. - When the
Rule 19.21. Transmittal of records. - Within fifteen (15) Regional Trial Court, in making a ruling under the Special
days from notice that the petition has been given due ADR Rules, has acted without or in excess of its
course, the Court of Appeals may require the court or jurisdiction, or with grave abuse of discretion amounting
agency concerned to transmit the original or a legible to lack or excess of jurisdiction, and there is no appeal or
certified true copy of the entire record of the proceeding any plain, speedy, and adequate remedy in the ordinary
under review. The record to be transmitted may be course of law, a party may file a special civil action for
abridged by agreement of all parties to the proceeding. certiorari to annul or set aside a ruling of the Regional Trial
The Court of Appeals may require or permit subsequent Court.
correction of or addition to the record.
A special civil action for certiorari may be filed against the
Rule 19.22. Effect of appeal. - The appeal shall not stay the following orders of the court.
award, judgment, final order or resolution sought to be
reviewed unless the Court of Appeals directs otherwise
a. Holding that the arbitration agreement is
upon such terms as it may deem just.
inexistent, invalid or unenforceable;

43
 b. Reversing the arbitral tribunal’s preliminary Rule 19.29. Arbitral tribunal a nominal party in the
determination upholding its jurisdiction; petition. - The arbitral tribunal shall only be a nominal
party in the petition for certiorari. As nominal party, the
c. Denying the request to refer the dispute to arbitral tribunal shall not be required to submit any
arbitration; pleadings or written submissions to the court. The arbitral
tribunal or an arbitrator may, however, submit such
pleadings or written submissions if the same serves the
d. Granting or refusing an interim relief;
interest of justice.

e. Denying a petition for the appointment of an

In petitions relating to the recognition and enforcement of
arbitrator;
a foreign arbitral award, the arbitral tribunal shall not be
included even as a nominal party. However, the tribunal
f. Confirming, vacating or correcting a domestic may be notified of the proceedings and furnished with
arbitral award; court processes.

g. Suspending the proceedings to set aside an Rule 19.30. Court to dismiss petition. - The court shall
international commercial arbitral award and dismiss the petition if it fails to comply with Rules 19.27
referring the case back to the arbitral tribunal; and 19.28 above, or upon consideration of the ground
alleged and the legal briefs submitted by the parties, the
h. Allowing a party to enforce an international petition does not appear to be prima facie meritorious.
commercial arbitral award pending appeal;
Rule 19.31. Order to comment. - If the petition is sufficient
i. Adjourning or deferring a ruling on whether to in form and substance to justify such process, the Court of
set aside, recognize and or enforce an Appeals shall immediately issue an order requiring the
international commercial arbitral award; respondent or respondents to comment on the petition
within a non-extendible period of fifteen (15) days from
j. Allowing a party to enforce a foreign arbitral receipt of a copy thereof. Such order shall be served on
award pending appeal; and the respondents in such manner as the court may direct,
together with a copy of the petition and any annexes
thereto.
k. Denying a petition for assistance in taking
evidence.
Rule 19.32. Arbitration may continue despite petition for
certiorari. - A petition for certiorari to the court from the
Rule 19.27. Form. - The petition shall be accompanied by a action of the appointing authority or the arbitral tribunal
certified true copy of the questioned judgment, order or allowed under this Rule shall not prevent the arbitral
resolution of the Regional Trial Court, copies of all tribunal from continuing the proceedings and rendering its
pleadings and documents relevant and pertinent thereto, award. Should the arbitral tribunal continue with the
and a sworn certification of non-forum shopping as proceedings, the arbitral proceedings and any award
provided in the Rules of Court. rendered therein will be subject to the final outcome of
the pending petition for certiorari.
Upon the filing of the petition and unless otherwise
prescribed by the Court of Appeals, the petitioner shall pay Rule 19.33. Prohibition against injunctions. - The Court of
to the clerk of court of the Court of Appeals docketing fees Appeals shall not, during the pendency of the proceedings
and other lawful fees of P3,500.00 and deposit the sum of before it, prohibit or enjoin the commencement of
P500.00 for costs. Exemption from payment of docket and arbitration, the constitution of the arbitral tribunal, or the
other lawful fees and the deposit for costs may be granted continuation of arbitration.
by the Court of Appeals upon a verified motion setting
forth valid grounds therefor. If the Court of Appeals denies
the motion, the petitioner shall pay the docketing and Rule 19.34. Proceedings after comment is filed. - After the
other lawful fees and deposit for costs within fifteen days comment is filed, or the time for the filing thereof has
from the notice of the denial. expired, the court shall render judgment granting the relief
prayed for or to which the petitioner is entitled, or denying
the same, within a non-extendible period of fifteen (15)
Rule 19.28. When to file petition. - The petition must be days.
filed with the Court of Appeals within fifteen (15) days
from notice of the judgment, order or resolution sought to
be annulled or set aside. No extension of time to file the Rule 19.35. Service and enforcement of order or judgment.
petition shall be allowed. - A certified copy of the judgment rendered in accordance
with the last preceding section shall be served upon the

44
Regional Trial Court concerned in such manner as the to these Special ADR Rules may file with the Supreme
Court of Appeals may direct, and disobedience thereto Court a verified petition for review on certiorari. The
shall be punished as contempt. petition shall raise only questions of law, which must be
distinctly set forth.
E. APPEAL BY CERTIORARI TO THE SUPREME COURT
Rule 19.38. Time for filing; extension. - The petition shall
Rule 19.36. Review discretionary. - A review by the be filed within fifteen (15) days from notice of the
Supreme Court is not a matter of right, but of sound judgment or final order or resolution appealed from, or of
judicial discretion, which will be granted only for serious the denial of the petitioner's motion for new trial or
and compelling reasons resulting in grave prejudice to the reconsideration filed in due time after notice of the
aggrieved party. The following, while neither controlling judgment.
nor fully measuring the court's discretion, indicate the
serious and compelling, and necessarily, restrictive nature On motion duly filed and served, with full payment of the
of the grounds that will warrant the exercise of the docket and other lawful fees and the deposit for costs
Supreme Court’s discretionary powers, when the Court of before the expiration of the reglementary period, the
Appeals: Supreme Court may for justifiable reasons grant an
extension of thirty (30) days only within which to file the
a. Failed to apply the applicable standard or test petition.
for judicial review prescribed in these Special
ADR Rules in arriving at its decision resulting in Rule 19.39. Docket and other lawful fees; proof of service
substantial prejudice to the aggrieved party; of petition. - Unless he has theretofore done so or unless
the Supreme Court orders otherwise, the petitioner shall
b. Erred in upholding a final order or decision pay docket and other lawful fees to the clerk of court of
despite the lack of jurisdiction of the court that the Supreme Court of P3,500.00 and deposit the amount
rendered such final order or decision; of P500.00 for costs at the time of the filing of the petition.
Proof of service of a copy thereof on the lower court
concerned and on the adverse party shall be submitted
c. Failed to apply any provision, principle, policy
together with the petition.
or rule contained in these Special ADR Rules
resulting in substantial prejudice to the
aggrieved party; and Rule 19.40. Contents of petition. - The petition shall be
filed in eighteen (18) copies, with the original copy
intended for the court being indicated as such by the
d. Committed an error so egregious and harmful
petitioner, and shall (a) state the full name of the
to a party as to amount to an undeniable excess
appealing party as the petitioner and the adverse party as
of jurisdiction.
respondent, without impleading the lower courts or judges
thereof either as petitioners or respondents; (b) indicate
The mere fact that the petitioner disagrees with the Court the material dates showing when notice of the judgment
of Appeals’ determination of questions of fact, of law or or final order or resolution subject thereof was received,
both questions of fact and law, shall not warrant the when a motion for new trial or reconsideration, if any, was
exercise of the Supreme Court’s discretionary power. The filed and when notice of the denial thereof was received;
error imputed to the Court of Appeals must be grounded (c) set forth concisely a statement of the matters involved,
upon any of the above prescribed grounds for review or be and the reasons or arguments relied on for the allowance
closely analogous thereto. of the petition; (d) be accompanied by a clearly legible
duplicate original, or a certified true copy of the judgment
A mere general allegation that the Court of Appeals has or final order or resolution certified by the clerk of court of
committed serious and substantial error or that it has the court a quo and the requisite number of plain copies
acted with grave abuse of discretion resulting in thereof, and such material portions of the record as would
substantial prejudice to the petitioner without indicating support the petition; and (e) contain a sworn certification
with specificity the nature of such error or abuse of against forum shopping.
discretion and the serious prejudice suffered by the
petitioner on account thereof, shall constitute sufficient Rule 19.41. Dismissal or denial of petition. - The failure of
ground for the Supreme Court to dismiss outright the the petitioner to comply with any of the foregoing
petition. requirements regarding the payment of the docket and
other lawful fees, deposit for costs, proof of service of the
Rule 19.37. Filing of petition with Supreme Court. - A party petition, and the contents of and the documents which
desiring to appeal by certiorari from a judgment or final should accompany the petition shall be sufficient ground
order or resolution of the Court of Appeals issued pursuant for the dismissal thereof.

45
The Supreme Court may on its own initiative deny the Rule 20.3. Deposit fee for mediated settlement
petition on the ground that the appeal is without merit, or agreements. - Any party to a mediated settlement
is prosecuted manifestly for delay, or that the questions agreement who deposits it with the clerk of court shall pay
raised therein are too insubstantial to require a deposit fee of P500.00.
consideration.
Rule 20.4. Filing fee for other proceedings. - The filing fee
Rule 19.42. Due course; elevation of records. - If the for the filing of any other proceedings, including
petition is given due course, the Supreme Court may applications for interim relief, as authorized under these
require the elevation of the complete record of the case or Special Rules not covered under any of the foregoing
specified parts thereof within fifteen (15) days from provisions, shall be P10,000.00.
notice.
RULE 21: COSTS
PART VII
FINAL PROVISIONS Rule 21.1. Costs. - The costs of the ADR proceedings shall
be borne by the parties equally unless otherwise agreed
RULE 20: FILING AND DEPOSIT FEES upon or directed by the arbitrator or arbitral tribunal.

Rule 20.1. Filing fee in petitions or counter-petitions to Rule 21.2. On the dismissal of a petition against a ruling of
confirm or enforce, vacate or set aside arbitral award or the arbitral tribunal on a preliminary question upholding its
for the enforcement of a mediated settlement agreement. - jurisdiction. - If the Regional Trial Court dismisses the
The filing fee for filing a petition to confirm or enforce, petition against the ruling of the arbitral tribunal on a
vacate or set aside an arbitral award in a domestic preliminary question upholding its jurisdiction, it shall also
arbitration or in an international commercial arbitration, order the petitioner to pay the respondent all reasonable
or enforce a mediated settlement agreement shall be as costs and expenses incurred in opposing the petition.
follows: "Costs" shall include reasonable attorney’s fees. The court
shall award costs upon application of the respondent after
PhP 10,000.00 - if the award does not exceed the petition is denied and the court finds, based on proof
PhP 1,000,000.00 submitted by respondent, that the amount of costs
incurred is reasonable.
PhP 20,000.00 - if the award does not exceed
PhP 20,000,000.00 Rule 21.3. On recognition and enforcement of a foreign
arbitral award. - At the time the case is submitted to the
court for decision, the party praying for recognition and
PhP 30,000.00 - if the award does not exceed
enforcement of a foreign arbitral award shall submit a
PhP 50,000,000.00
statement under oath confirming the costs he has incurred
only in the proceedings in the Philippines for such
PhP 40,000.00 - if the award does not exceed recognition and enforcement or setting-aside. The costs
PhP 100,000,000.00 shall include attorney’s fees the party has paid or is
committed to pay to his counsel of record.
PhP 50,000.00 - if the award exceeds PhP
100,000,000.00 The prevailing party shall be entitled to an award of costs
which shall include the reasonable attorney’s fees of the
The minimal filing fee payable in "all other actions not prevailing party against the unsuccessful party. The court
involving property" shall be paid by the petitioner shall determine the reasonableness of the claim for
seeking to enforce foreign arbitral awards under the New attorney’s fees.
York Convention in the Philippines.
Rule 21.4. Costs. - At the time the case is submitted to the
Rule 20.2. Filing fee for action to enforce as a counter- court for decision, the party praying for confirmation or
petition. - A petition to enforce an arbitral award in a vacation of an arbitral award shall submit a statement
domestic arbitration or in an international commercial under oath confirming the costs he has incurred only in
arbitration submitted as a petition to enforce and/or the proceedings for confirmation or vacation of an arbitral
recognize an award in opposition to a timely petition to award. The costs shall include the attorney’s fees the party
vacate or set aside the arbitral award shall require the has paid or is committed to pay to his counsel of record.
payment of the filing fees prescribed in Rule 20.1 above.
The prevailing party shall be entitled to an award of costs
with respect to the proceedings before the court, which

46
shall include the reasonable attorney’s fees of the agree otherwise. The Special ADR Rules, however, may not
prevailing party against the unsuccessful party. The court prejudice or impair vested rights in accordance with law.
shall determine the reasonableness of the claim for
attorney’s fees. RULE 25: ONLINE DISPUTE RESOLUTION

Rule 21.5. Bill of Costs. - Unless otherwise agreed upon by Rule 25.1. Applicability of the Special ADR Rules to Online
the parties in writing, at the time the case is submitted to Dispute Resolution. - Whenever applicable and
the court for decision, the party praying for recognition appropriate, the Special ADR Rules shall govern the
and enforcement or for setting aside an arbitral award procedure for matters brought before the court involving
shall submit a statement under oath confirming the costs Online Dispute Resolution.
he has incurred only in the proceedings for such
recognition and enforcement or setting-aside. The costs
Rule 25.2. Scope of Online Dispute Resolution. - Online
shall include attorney’s fees the party has paid or is
Dispute Resolution shall refer to all electronic forms of
committed to pay to his counsel of record.
ADR including the use of the internet and other web or
computed based technologies for facilitating ADR.
The prevailing party shall be entitled to an award of costs,
which shall include reasonable attorney’s fees of the
RULE 26: EFFECTIVITY
prevailing party against the unsuccessful party. The court
shall determine the reasonableness of the claim for
attorney’s fees. Rule 26.1. Effectivity. - The Special ADR Rules shall take
effect fifteen (15) days after its complete publication in
two (2) newspapers of general circulation.
Rule 21.6. Government’s exemption from payment of fees.
- The Republic of the Philippines, its agencies and
instrumentalities are exempt from paying legal fees
provided in these Special ADR Rules. Local governments
and government controlled corporation with or with or
without independent charters are not exempt from paying
such fees. RULE A: GUIDELINES FOR THE RESOLUTION OF ISSUES
RELATED TO ARBITRATION OF LOANS SECURED BY
RULE 22: APPLICABILITY OF THE RULES OF COURT COLLATERAL

Rule 22.1. Applicability of Rules of Court. - The provisions Rule A.1. Applicability of an arbitration agreement in a
of the Rules of Court that are applicable to the contract of loan applies to the accessory contract securing
proceedings enumerated in Rule 1.1 of these Special ADR the loan. - An arbitration agreement in a contract of loan
Rules have either been included and incorporated in these extends to and covers the accessory contract securing the
Special ADR Rules or specifically referred to herein. loan such as a pledge or a mortgage executed by the
borrower in favor of the lender under that contract of
loan.
In connection with the above proceedings, the Rules of
Evidence shall be liberally construed to achieve the
objectives of the Special ADR Rules. Rule A.2. Foreclosure of pledge or extra-judicial foreclosure
of mortgage not precluded by arbitration. - The
commencement of the arbitral proceeding under the
RULE 23: SEPARABILITY
contract of loan containing an arbitration agreement shall
not preclude the lender from availing himself of the right
Rule 23.1. Separability Clause. - If, for any reason, any part to obtain satisfaction of the loan under the accessory
of the Special ADR Rules shall be held unconstitutional or contract by foreclosure of the thing pledged or by extra-
invalid, other Rules or provisions hereof which are not judicial foreclosure of the collateral under the real estate
affected thereby, shall continue to be in full force and mortgage in accordance with Act No. 3135.
effect.
The lender may likewise institute foreclosure proceedings
RULE 24: TRANSITORY PROVISIONS against the collateral securing the loan prior to the
commencement of the arbitral proceeding.
Rule 24.1. Transitory Provision. - Considering its
procedural character, the Special ADR Rules shall be By agreeing to refer any dispute under the contract of loan
applicable to all pending arbitration, mediation or other to arbitration, the lender who is secured by an accessory
ADR forms covered by the ADR Act, unless the parties contract of real estate mortgage shall be deemed to have

47
waived his right to obtain satisfaction of the loan by The arbitral tribunal shall have the authority to resolve the
judicial foreclosure. issue of the validity of the foreclosure of the thing pledged
or of the extrajudicial foreclosure of the collateral under
Rule A.3. Remedy of the borrower against an action taken the real estate mortgage if the same has not yet been
by the lender against the collateral before the constitution foreclosed or confirm the validity of such foreclosure if
of the arbitral tribunal. - The borrower providing security made before the rendition of the arbitral award and had
for the payment of his loan who is aggrieved by the action not been enjoined.
taken by the lender against the collateral securing the loan
may, if such action against the collateral is taken before Rule A.6. Arbitration involving a third-party provider of
the arbitral tribunal is constituted, apply with the security. - An arbitration agreement contained in a
appropriate court for interim relief against any such action contract of loan between the lender and the borrower
of the lender. Such interim relief may be obtained only in a extends to and covers an accessory contract securing the
special proceeding for that purpose, against the action loan, such as a pledge, mortgage, guaranty or suretyship,
taken by the lender against the collateral, pending the executed by a person other than the borrower only if such
constitution of the arbitral tribunal. Any determination third-party securing the loan has agreed in the accessory
made by the court in that special proceeding pertaining to contract, either directly or by reference, to be bound by
the merits of the controversy, including the right of the such arbitration agreement.
lender to proceed against the collateral, shall be only
provisional in nature. Unless otherwise expressly agreed upon by the third-party
securing the loan, his agreement to be bound by the
After the arbitral tribunal is constituted, the court shall arbitration agreement in the contract of loan shall pertain
stay its proceedings and defer to the jurisdiction of the to disputes arising from or in connection with the
arbitral tribunal over the entire controversy including any relationship between the lender and the borrower as well
question regarding the right of the lender to proceed as the relationship between the lender and such third-
against the collateral. party including the right of the lender to proceed against
the collateral securing the loan, but shall exclude disputes
Rule A.4. Remedy of borrower against action taken by the pertaining to the relationship exclusively between the
lender against the collateral after the arbitral tribunal has borrower and the provider of security such as that
been constituted. - After the arbitral tribunal is involving a claim by the provider of security for
constituted, the borrower providing security for the indemnification against the borrower.
payment of his loan who is aggrieved by the action taken
by the lender against the collateral securing the loan may In this multi-party arbitration among the lender, the
apply to the arbitral tribunal for relief, including a claim for borrower and the third party securing the loan, the parties
damages, against such action of the lender. An application may agree to submit to arbitration before a sole arbitrator
to the court may also be made by the borrower against or a panel of three arbitrators to be appointed either by an
any action taken by the lender against the collateral Appointing Authority designated by the parties in the
securing the loan but only if the arbitral tribunal cannot act arbitration agreement or by a default Appointing Authority
effectively to prevent an irreparable injury to the rights of under the law.
such borrower during the pendency of the arbitral
proceeding. In default of an agreement on the manner of appointing
arbitrators or of constituting the arbitral tribunal in such
An arbitration agreement in a contract of loan precludes multi-party arbitration, the dispute shall be resolved by a
the borrower therein providing security for the loan from panel of three arbitrators to be designated by the
filing and/or proceeding with any action in court to Appointing Authority under the law. But even in default of
prevent the lender from foreclosing the pledge or extra- an agreement on the manner of appointing an arbitrator
judicially foreclosing the mortgage. If any such action is or constituting an arbitral tribunal in a multi-party
filed in court, the lender shall have the right provided in arbitration, if the borrower and the third party securing
the Special ADR Rules to have such action stayed on the loan agree to designate a common arbitrator,
account of the arbitration agreement. arbitration shall be decided by a panel of three arbitrators:
one to be designated by the lender; the other to be
Rule A.5. Relief that may be granted by the arbitral designated jointly by the borrower and the provider of
tribunal. - The arbitral tribunal, in aid of the arbitral security who have agreed to designate the same
proceeding before it, may upon submission of adequate arbitrator; and a third arbitrator who shall serve as the
security, suspend or enjoin the lender from proceeding chairperson of the arbitral panel to be designated by the
against the collateral securing the loan pending final two party-designated arbitrators.
determination by the arbitral tribunal of the dispute
brought to it for decision under such contract of loan.

48
Department of Environment and Natural Resources Tribunal. The court-referred arbitration was then docketed
(DENR) v. United Planners Consultants, Inc. (UPCI), infRA. as Arbitration Case No. A-001.15

G.R. No. 212081 February 23, 2015 During the preliminary conference, the parties agreed to
adopt the CIAC Revised Rules Governing Construction
DEPARTMENT OF ENVIRONMENT AND NATURAL Arbitration16 (CIAC Rules) to govern the arbitration
RESOURCES (DENR), Petitioner, proceedings.17 They further agreed to submit their
vs. respective draft decisions in lieu of memoranda of
UNITED PLANNERS CONSULTANTS , INC. arguments on or before April 21, 2010, among others.18
(UPCI), Respondent.
On the due date for submission of the draft decisions,
DECISION however, only respondent complied with the given
deadline,19 while petitioner moved for the deferment of
PERLAS-BERNABE, J.: the deadline which it followed with another motion for
Assailed in this petition for review on certiorari1 is the extension of time, asking that it be given until May 11,
Decision2 dated March 26, 2014 of the Court of Appeals 2010 to submit its draft decision.20
(CA) in CA-G.R. SP No. 126458 which dismissed the petition In an Order21 dated April 30, 2010, the Arbitral Tribunal
for certiorari filed by petitioner the Department of denied petitioner’s motions and deemed its non-
Environment and Natural Resources (petitioner). submission as a waiver, but declared that it would still
The Facts consider petitioner’s draft decision if submitted before
May 7, 2010, or the expected date of the final award’s
On July 26, 1993, petitioner, through the Land promulgation.22 Petitioner filed its draft decision23 only on
Management Bureau (LMB), entered into an Agreement May 7, 2010.
for Consultancy Services3 (Consultancy Agreement) with
respondent United Planners Consultants, Inc. (respondent) The Arbitral Tribunal rendered its Award24 dated May 7,
in connection with the LMB' s Land Resource Management 2010 (Arbitral Award) in favor of respondent, directing
Master Plan Project (LRMMP).4 Under the Consultancy petitioner to pay the latter the amount of (a)
Agreement, petitioner committed to pay a total contract ₱2,285,089.89 representing the unpaid progress billings,
price of ₱4,337,141.00, based on a predetermined with interest at the rate of 12% per annum from the date
percentage corresponding to the particular stage of work of finality of the Arbitral Award upon confirmation by the
accomplished.5 RTC until fully paid; (b) ₱2,033,034.59 as accrued interest
thereon; (c) ₱500,000.00 as exemplary damages; and (d)
In December 1994, respondent completed the work ₱150,000.00 as attorney’s fees.25 It also ordered petitioner
required, which petitioner formally accepted on December to reimburse respondent its proportionate share in the
27, 1994.6 However, petitioner was able to pay only 47% of arbitration costs as agreed upon in the amount of
the total contract price in the amount of ₱2,038,456.30.7 ₱182,119.44.26

On October 25, 1994, the Commission on Audit (COA) Unconvinced, petitioner filed a motion for
released the Technical Services Office Report8 (TSO) finding reconsideration,27 which the Arbitral Tribunal merely noted
the contract price of the Agreement to be 84.14% without any action, claiming that it had already lost
excessive.9 This notwithstanding, petitioner, in a letter jurisdiction over the case after it had submitted to the RTC
dated December 10, 1998, acknowledged its liability to its Report together with a copy of the Arbitral Award.28
respondent in the amount of ₱2,239,479.60 and assured
payment at the soonest possible time.10 Consequently, petitioner filed before the RTC a Motion for
Reconsideration29 dated May 19, 2010 (May 19, 2010
For failure to pay its obligation under the Consultancy Motion for Reconsideration)and a Manifestation and
Agreement despite repeated demands, respondent Motion30 dated June 1, 2010 (June 1, 2010 Manifestation
instituted a Complaint11 against petitioner before the and Motion), asserting that it was denied the opportunity
Regional Trial Court of Quezon City, Branch 222 (RTC), to be heard when the Arbitral Tribunal failed to consider
docketed as Case No. Q-07-60321.12 its draft decision and merely noted its motion for
reconsideration.31 It also denied receiving a copy of the
Upon motion of respondent, the case was subsequently Arbitral Award by either electronic or registered mail.32 For
referred to arbitration pursuant to the arbitration clause of its part, respondent filed an opposition thereto and moved
the Consultancy Agreement,13 which petitioner did not for the confirmation33 of the Arbitral Award in accordance
oppose.14 As a result, Atty. Alfredo F. Tadiar, Architect with the Special Rules of Court on Alternative Dispute
Armando N. Alli, and Construction Industry Arbitration Resolution (Special ADR Rules).34
Commission (CIAC) Accredited Arbitrator Engr. Ricardo B.
San Juan were appointed as members of the Arbitral In an Order35 dated March 30, 2011, the RTC merely noted
petitioner’s aforesaid motions, finding that copies of the

49
Arbitral Award appear to have been sent to the parties by RTC’s July 9, 2012 Order, in violation of Rule 19.2852 in
the Arbitral Tribunal, including the OSG, contrary to relation to Rule 19.853 of said Rules which provide that a
petitioner’s claim. Onthe other hand, the RTC confirmed special civil action for certiorari must be filed before the
the Arbitral Award pursuant to Rule 11.2 (A)36 of the CA within 15 days from notice of the judgment, order, or
Special ADR Rules and ordered petitioner to pay resolution sought to be annulled or set aside (or until July
respondent the costs of confirming the award, as prayed 27, 2012). Aggrieved, petitioner filed the instant petition.
for, in the total amount of ₱50,000.00. From this order,
petitioner did not file a motion for reconsideration. The Issue Before the Court

Thus, on June 15, 2011, respondent moved for the The core issue for the Court’s resolution is whether or not
issuance of a writ of execution, to which no the CA erred in applying the provisions of the Special ADR
comment/opposition was filed by petitioner despite the Rules, resulting in the dismissal of petitioner’s special civil
RTC’s directive therefor. In an Order37 dated September 12, action for certiorari.
2011, the RTC granted respondent’s motion.38
The Court’s Ruling
Petitioner moved to quash39 the writ of execution, positing
The petition lacks merit.
that respondent was not entitled to its monetary claims. It
also claimed that the issuance of said writ was premature I.
since the RTC should have first resolved its May 19, 2010
Motion for Reconsideration and June 1, 2010 Republic Act No. (RA) 9285,54 otherwise known as the
Manifestation and Motion, and not merely noted them, Alternative Dispute Resolution Act of 2004,"
thereby violating its right to due process.40 institutionalized the use of an Alternative Dispute
Resolution System (ADR System)55 in the Philippines. The
The RTC Ruling Act, however, was without prejudice to the adoption by
the Supreme Court of any ADR system as a means of
In an Order41 dated July 9, 2012, the RTC denied
achieving speedy and efficient means of resolving cases
petitioner’s motion to quash.
pending before all courts in the Philippines.56
It found no merit in petitioner’s contention that it was
Accordingly, A.M. No. 07-11-08-SC was created setting
denied due process, ruling that its May 19, 2010 Motion
forth the Special Rules of Court on Alternative Dispute
for Reconsideration was a prohibited pleading under
Resolution (referred herein as Special ADR Rules) that shall
Section 17.2,42 Rule 17 of the CIAC Rules. It explained that
govern the procedure to be followed by the courts
the available remedy to assail an arbitral award was to file
whenever judicial intervention is sought in ADR
a motion for correction of final award pursuant to Section
proceedings in the specific cases where it is allowed.57
17.143 of the CIAC Rules, and not a motion for
reconsideration of the said award itself.44 On the other Rule 1.1 of the Special ADR Rules lists down the instances
hand, the RTC found petitioner’s June 1, 2010 when the said rules shall apply, namely: "(a) Relief on the
Manifestation and Motion seeking the resolution of its issue of Existence, Validity, or Enforceability of the
May 19, 2010 Motion for Reconsideration to be defective Arbitration Agreement; (b) Referral to Alternative Dispute
for petitioner’s failure to observe the three day notice Resolution ("ADR"); (c) Interim Measures of Protection; (d)
rule.45 Having then failed to avail of the remedies Appointment of Arbitrator; (e) Challenge to Appointment
attendant to an order of confirmation, the Arbitral Award of Arbitrator; (f) Termination of Mandate of Arbitrator; (g)
had become final and executory.46 Assistance in Taking Evidence; (h) Confirmation, Correction
or Vacation of Award in Domestic Arbitration; (i)
On July 12, 2012, petitioner received the RTC’s Order
Recognition and Enforcement or Setting Aside of an Award
dated July 9, 2012 denying its motion to quash.47
in International Commercial Arbitration; (j) Recognition
Dissatisfied, it filed on September 10, 2012a petition for and Enforcement of a Foreign Arbitral Award; (k)
certiorari48 before the CA, docketed as CA-G.R. SP No. Confidentiality/Protective Orders; and (l) Deposit and
126458, averring in the main that the RTC acted with grave Enforcement of Mediated Settlement Agreements."58
abuse of discretion in confirming and ordering the
Notably, the Special ADR Rules do not automatically
execution of the Arbitral Award.
govern the arbitration proceedings itself. A pivotal feature
The CA Ruling of arbitration as an alternative mode of dispute resolution
is that it is a product of party autonomy or the freedom of
In a Decision49 dated March 26, 2014, the CA dismissed the the parties to make their own arrangements to resolve
certiorari petition on two (2) grounds, namely: (a) the their own disputes.59 Thus, Rule 2.3 of the Special ADR
petition essentially assailed the merits of the Arbitral Rules explicitly provides that "parties are free to agree on
Award which is prohibited under Rule 19.750 of the Special the procedure to be followed in the conduct of arbitral
ADR Rules;51 and (b) the petition was filed out of time, proceedings. Failing such agreement, the arbitral tribunal
having been filed way beyond 15 days from notice of the

50
may conduct arbitration in the manner it considers SEC. 40. Confirmation of Award.– The confirmation of a
appropriate."60 domestic arbitral award shall be governed by Section
2369 of R.A. 876.70
In the case at bar, the Consultancy Agreement contained
an arbitration clause.61 Hence, respondent, after it filed its A domestic arbitral award when confirmed shall be
complaint, moved for its referral to arbitration62 which was enforced in the same manner as final and executory
not objected to by petitioner.63 By its referral to decisions of the regional trial court.
arbitration, the case fell within the coverage of the Special
ADR Rules. However, with respect to the arbitration The confirmation of a domestic award shall be made by
proceedings itself, the parties had agreed to adopt the the regional trial court in accordance with the Rules of
CIAC Rules before the Arbitral Tribunal in accordance with Procedure to be promulgated by the Supreme Court.
Rule 2.3 of the Special ADR Rules.
A CIAC arbitral award need not be confirmed by the
On May 7, 2010, the Arbitral Tribunal rendered the Arbitral regional trial court to be executory as provided under E.O.
Award in favor of respondent. Under Section 17.2, Rule 17 No. 1008. (Emphases supplied)
of the CIAC Rules, no motion for reconsideration or new
During the confirmation proceedings, petitioners did not
trial may be sought, but any of the parties may file a
oppose the RTC’s confirmation by filing a petition to vacate
motion for correction64 of the final award, which shall
the Arbitral Award under Rule 11.2 (D)71 of the Special ADR
interrupt the running of the period for appeal,65 based on
Rules. Neither did it seek reconsideration of the
any of the following grounds, to wit: a. an evident
confirmation order in accordance with Rule 19.1 (h)
miscalculation of figures, a typographical or arithmetical
thereof. Instead, petitioner filed only on September 10,
error;
2012 a special civil action for certiorari before the CA
b. an evident mistake in the description of any questioning the propriety of (a) the RTC Order dated
party, person, date, amount, thing or property September 12, 2011 granting respondent’s motion for
referred to in the award; issuance of a writ of execution, and (b) Order dated July
9,2012 denying its motion to quash. Under Rule 19.26 of
c. where the arbitrators have awarded upon a the Special ADR Rules, "[w]hen the Regional Trial Court, in
matter not submitted to them, not affecting the making a ruling under the Special ADR Rules, has acted
merits of the decision upon the matter without or in excess of its jurisdiction, or with grave abuse
submitted; of discretion amounting to lack or excess of jurisdiction,
and there is no appeal or any plain, speedy, and adequate
d. where the arbitrators have failed or omitted remedy in the ordinary course of law, a party may file a
to resolve certain issue/s formulated by the special civil action for certiorari to annul or set aside a
parties in the Terms of Reference (TOR) and ruling of the Regional Trial Court." Thus, for failing to avail
submitted to them for resolution, and of the foregoing remedies before resorting to certiorari,
the CA correctly dismissed its petition.
e. where the award is imperfect in a matter of
form not affecting the merits of the controversy. II.
The motion shall be acted upon by the Arbitral Tribunal or Note that the special civil action for certiorari described in
the surviving/remaining members.66 Rule 19.26 above may be filed to annul or set aside the
following orders of the Regional Trial Court.
Moreover, the parties may appeal the final award to the
CA through a petition for review under Rule43 of the Rules a. Holding that the arbitration agreement is in
of Court.67 existent, invalid or unenforceable;
Records do not show that any of the foregoing remedies b. Reversing the arbitral tribunal’s preliminary
were availed of by petitioner. Instead, it filed the May 19, determination upholding its jurisdiction;
2010 Motion for Reconsideration of the Arbitral Award,
which was a prohibited pleading under the Section c. Denying the request to refer the dispute to
17.2,68 Rule 17 of the CIAC Rules, thus rendering the same arbitration;
final and executory.
d. Granting or refusing an interim relief;
Accordingly, the case was remanded to the RTC for
confirmation proceedings pursuant to Rule 11 of the e. Denying a petition for the appointment of an
Special ADR Rules which requires confirmation by the arbitrator;
court of the final arbitral award. This is consistent with
f. Confirming, vacating or correcting a domestic
Section 40, Chapter 7 (A) of RA 9285 which similarly
arbitral award;
requires a judicial confirmation of a domestic award to
make the same enforceable:

51
 g. Suspending the proceedings to set aside an necessary implication. The doctrine states that what is
international commercial arbitral award and implied in a statute is as much a part thereof as that which
referring the case back to the arbitral tribunal; is expressed. Every statute is understood, by implication,
to contain all such provisions as may be necessary to
h. Allowing a party to enforce an international effectuate its object and purpose, or to make effective
commercial arbitral award pending appeal; rights, powers, privileges or jurisdiction which it grants,
including all such collateral and subsidiary consequences
i. Adjourning or deferring a ruling on whether to
as may be fairly and logically inferred from its terms. Ex
set aside, recognize and or enforce an
necessitate legis. And every statutory grant of power, right
international commercial arbitral award;
or privilege is deemed to include all incidental power, right
j. Allowing a party to enforce a foreign arbitral or privilege. This is so because the greater includes the
award pending appeal; and lesser, expressed in the maxim, in eo plus sit, simper inest
et minus.75 (Emphases supplied)
k. Denying a petition for assistance in taking
evidence. (Emphasis supplied) As the Court sees it, execution is but a necessary incident
to the Court’s confirmation of an arbitral award. To
Further, Rule 19.772 of the Special ADR Rules precludes a construe it otherwise would result in an absurd situation
party to an arbitration from filing a petition for certiorari whereby the confirming court previously applying the
questioning the merits of an arbitral award. Special ADR Rules in its confirmation of the arbitral award
would later shift to the regular Rules of Procedure come
If so falling under the above-stated enumeration, Rule execution. Irrefragably, a court’s power to confirm a
19.28 of the Special ADR Rules provide that said certiorari judgment award under the Special ADR Rules should be
petition should be filed "with the [CA] within fifteen (15) deemed to include the power to order its execution for
days from notice of the judgment, order or resolution such is but a collateral and subsidiary consequence that
sought to be annulled or set aside. No extension of time to may be fairly and logically inferred from the statutory
file the petition shall be allowed." grant to regional trial courts of the power to confirm
In this case, petitioner asserts that its petition is not domestic arbitral awards.
covered by the Special ADR Rules (particularly, Rule 19.28 All the more is such interpretation warranted under the
on the 15-day reglementary period to file a petition for principle of ratio legis est anima which provides that a
certiorari) but by Rule 65 of the Rules of Court statute must be read according to its spirit or intent,76 for
(particularly, Section 4 thereof on the 60-day reglementary what is within the spirit is within the statute although it is
period to file a petition for certiorari), which it claimed to not within its letter, and that which is within the letter but
have suppletory application in arbitration proceedings not within the spirit is not within the statute.77 Accordingly,
since the Special ADR Rules do not explicitly provide for a since the Special ADR Rules are intended to achieve
procedure on execution. The position is untenable. speedy and efficient resolution of disputes and curb a
Execution is fittingly called the fruit and end of suit and the litigious culture,78 every interpretation thereof should be
life of the law. A judgment, if left unexecuted, would be made consistent with these objectives.
nothing but an empty victory for the prevailing party.73 Thus, with these principles in mind, the Court so concludes
While it appears that the Special ADR Rules remain silent that the Special ADR Rules, as far as practicable, should be
on the procedure for the execution of a confirmed arbitral made to apply not only to the proceedings on confirmation
award, it is the Court’s considered view that the Rules’ but also to the confirmed award’s execution.
procedural mechanisms cover not only aspects of Further, let it be clarified that – contrary to petitioner’s
confirmation but necessarily extend to a confirmed stance – resort to the Rules of Court even in a suppletory
award’s execution in light of the doctrine of necessary capacity is not allowed. Rule 22.1 of the Special ADR Rules
implication which states that every statutory grant of explicitly provides that "[t]he provisions of the Rules of
power, right or privilege is deemed to include all incidental Court that are applicable to the proceedings enumerated
power, right or privilege. In Atienza v. Villarosa,74 the in Rule 1.1 of these Special ADR Rules have either been
doctrine was explained, thus: included and incorporated in these Special ADR Rules or
No statute can be enacted that can provide all the details specifically referred to herein."79 Besides, Rule 1.13 thereof
involved in its application.1âwphi1 There is always an provides that "[i]n situations where no specific rule is
omission that may not meet a particular situation. What is provided under the Special ADR Rules, the court shall
thought, at the time of enactment, to be an all embracing resolve such matter summarily and be guided by the spirit
legislation may be inadequate to provide for the unfolding and intent of the Special ADR Rules and the ADR Laws."
of events of the future. So-called gaps in the law develop As above-mentioned, the petition for certiorari permitted
as the law is enforced. One of the rules of statutory under the Special ADR Rules must be filed within a period
construction used to fill in the gap is the doctrine of of fifteen (15) days from notice of the judgment, order or

52
resolution sought to be annulled or set aside.80 Hence, boards, commissions, or agencies of the Government, and
since petitioner’s filing of its certiorari petition in CA-G.R. as herein prescribed, including non-governmental entities
SP No. 126458 was made nearly two months after its subsidized by the government, those funded by donation
receipt of the RTC’s Order dated July 9, 2012,or on through the government, those required to pay levies or
September 10, 2012,81 said petition was clearly government share, and those for which the government
dismissible.82 has put up a counterpart fund or those partly funded by
the government. (Emphases supplied)
III.
From the foregoing, the settlement of respondent’s money
Discounting the above-discussed procedural claim is still subject to the primary jurisdiction of the COA
considerations, the Court still finds that the certiorari despite finality of the confirmed arbitral award by the RTC
petition had no merit. pursuant to the Special ADR Rules.85 Hence, the
respondent has to first seek the approval of the COA of
Indeed, petitioner cannot be said to have been denied due
their monetary claim. This appears to have been complied
process as the records undeniably show that it was
with by the latter when it filed a "Petition for Enforcement
accorded ample opportunity to ventilate its position. There
and Payment of Final and Executory Arbitral
was clearly nothing out of line when the Arbitral Tribunal
Award"86 before the COA. Accordingly, it is now the COA
denied petitioner’s motions for extension to file its
which has the authority to rule on this latter petition.
submissions having failed to show a valid reason to justify
WHEREFORE, the petition is DENIED. The Decision dated
the same or in rendering the Arbitral Award sans
March 26, 2014 of the Court of Appeals in CA-G.R. SP No.
petitioner’s draft decision which was filed only on the day
126458 which dismissed the petition for certiorari filed by
of the scheduled promulgation of final award on May 7,
petitioner the Department of Environment and Natural
2010.83 The touchstone of due process is basically the
Resources is hereby AFFIRMED.
opportunity to be heard. Having been given such
opportunity, petitioner should only blame itself for its own SO ORDERED.
procedural blunder.

On this score, the petition for certiorari in CA-G.R. SP No.

126458 was likewise properly dismissed.

IV.

Nevertheless, while the Court sanctions the dismissal by

the CA of the petition for certiorari due to procedural
infirmities, there is a need to explicate the matter of
execution of the confirmed Arbitral Award against the
petitioner, a government agency, in the light of
Presidential Decree No. (PD) 144584 otherwise known as
the "Government Auditing Code of the Philippines."
Section 26 of PD 1445 expressly provides that execution of
money judgment against the Government or any of its
subdivisions, agencies and instrumentalities is within the
primary jurisdiction of the COA, to wit:

SEC. 26. General jurisdiction. The authority and powers of

the Commission shall extend to and comprehend all
matters relating to auditing procedures, systems and
controls, the keeping of the general accounts of the
Government, the preservation of vouchers pertaining
thereto for a period of ten years, the examination and
inspection of the books, records, and papers relating to
those accounts; and the audit and settlement of the
accounts of all persons respecting funds or property
received or held by them in an accountable capacity, as
well as the examination, audit, and settlement of all debts
and claims of any sort due from or owing to the
Government or any of its subdivisions, agencies and
2. Party Autonomy a. Art. 1306, R.A. No. 386 cf. §2, R.A.
instrumentalities. The said jurisdiction extends to
No. 928
all government-owned or controlled corporations,
a. Art. 1306, R.A. No. 386 cf. §2, R.A. No. 9285
including their subsidiaries, and other self-governing

53
REPUBLIC ACT NO. 386 cases. Likewise, the State shall enlist active private sector
participation in the settlement of disputes through ADR.
ARTICLE 1306. The contracting parties may establish such This Act shall be without prejudice to the adoption by the
stipulations, clauses, terms and conditions as they may Supreme Court of any ADR system, such as mediation,
deem convenient, provided they are not contrary to law, conciliation, arbitration, or any combination thereof as a
morals, good customs, public order, or public policy. means of achieving speedy and efficient means of
(1255a) resolving cases pending before all courts in the Philippines
which shall be governed by such rules as the Supreme
Republic Act No. 9285 Court may approve from time to time.

SEC. 2. Declaration of Policy. - it is hereby declared the SEC. 3. Definition of Terms. - For purposes of this Act, the
policy of the State to actively promote party autonomy in term
the resolution of disputes or the freedom of the party to
(d) "Arbitration" means a voluntary dispute resolution
make their own arrangements to resolve their disputes.
process in which one or more arbitrators, appointed in
Towards this end, the State shall encourage and actively accordance with the agreement of the parties, or rules
promote the use of Alternative Dispute Resolution (ADR) promulgated pursuant to this Act, resolve a dispute by
as an important means to achieve speedy and impartial rendering an award;
justice and declog court dockets. As such, the State shall
provide means for the use of ADR as an efficient tool and n) "Early Neutral Evaluation" means an ADR process
an alternative procedure for the resolution of appropriate wherein parties and their lawyers are brought together
cases. Likewise, the State shall enlist active private sector early in a pre-trial phase to present summaries of their
cases and receive a nonbinding assessment by an
participation in the settlement of disputes through ADR.
experienced, neutral person, with expertise in the subject
This Act shall be without prejudice to the adoption by the
in the substance of the dispute;
Supreme Court of any ADR system, such as mediation,
conciliation, arbitration, or any combination thereof as a q) "Mediation" means a voluntary process in which a
means of achieving speedy and efficient means of mediator, selected by the disputing parties, facilitates
resolving cases pending before all courts in the Philippines communication and negotiation, and assist the parties in
which shall be governed by such rules as the Supreme reaching a voluntary agreement regarding a dispute
Court may approve from time to time.
(t) "Mediation-Arbitration" or Med-Arb is a step dispute
resolution process involving both mediation and
arbitration;

(u) "Mini-Trial" means a structured dispute resolution

method in which the merits of a case are argued before a
panel comprising senior decision makers with or without
the presence of a neutral third person after which the
parties seek a negotiated settlement;

SEC. 7. Scope. - The provisions of this Chapter shall cover

voluntary mediation, whether ad hoc or institutional,
other than court-annexed. The term "mediation' shall
include conciliation.
3. Alternative Dispute Resolution System
ii. See Also Ch. 7, DOJ D.C. No. 98
a. Processes or procedures
CHAPTER 7
i. §§2, 3(d), (n), (q), (t), (u), 7, R.A. No. 9285
OTHER ADR FORMS
SEC. 2. Declaration of Policy. - it is hereby declared the
policy of the State to actively promote party autonomy in RULE 1 - General Provisions
the resolution of disputes or the freedom of the party to
make their own arrangements to resolve their disputes. Article 7.1. Scope of Application and General Principles.
Towards this end, the State shall encourage and actively Except as otherwise agreed,
promote the use of Alternative Dispute Resolution (ADR)
as an important means to achieve speedy and impartial this Chapter shall apply and supply the deficiency in the
justice and declog court dockets. As such, the State shall agreement of the parties for matters involving the
provide means for the use of ADR as an efficient tool and following forms of ADR:
an alternative procedure for the resolution of appropriate
(a) early neutral evaluation;

54
(b) neutral evaluation; evaluation shall be governed by the rules and procedure
agreed upon by the parties. In the absence of said
(c) mini-trial; agreement, this Rule shall apply.
(d) mediation-arbitration; (b) If the parties cannot agree on, or fail to provide for:
(e) a combination thereof; or (i) The desired qualification of the neutral third person;
(f) any other ADR form. (ii) The manner of his/her selection;

(iii) The appointing authority (not IBP) who shall have the
Article 7.2. Applicability of the Rules on Mediation. If the authority to
other ADR form/process is more akin to mediation (i.e., make the appointment of a neutral third person; or
the neutral third-person merely assists the parties in
reaching a voluntary agreement), Chapter 3 governing (iv) if despite agreement on the foregoing and the lapse of
Mediation shall have suppletory application to the extent the period of time
that it is not in conflict with the agreement of the parties
or this Chapter. stipulated for the appointment, the parties are unable to
select a neutral third

person or appointing authority, then, either party may

Article 7.3. Applicability of the Rules on Arbitration. If the request the default appointing authority, as defined under
other ADR form/process is more akin to arbitration (i.e., paragraph C1 of Article (Definition of Terms), to make the
the neutral third-person has the power to make a binding appointment taking into consideration the nature of the
resolution of the dispute), Chapter 5 governing Domestic
Arbitration shall have suppletory application to the extent dispute and the experience and expertise of the neutral
that it is not in conflict with the agreement of the parties third person.
or thisChapter. (c) The parties shall submit and exchange position papers
containing the issues and

Article 7.4. Referral. If a dispute is already before a court, statement of the relevant facts and appending supporting
either party may, before and documents and affidavits of witnesses to assist the neutral
third person in evaluating or assessing the dispute.
during pre-trial, file a motion for the court to
refer the parties to other ADR forms/processes. (d) The neutral third person may request either party to
However, at any time during court proceedings, address additional issues that he
even after pre-trial, the parties may jointly move /she may consider necessary for a complete
for suspension/dismissal of the action pursuant evaluation/assessment of the dispute.
to Article 2030 of the Civil Code of the
Philippines. (e) The neutral third person may structure the evaluation
process in any manner he/she

deems appropriate. In the course thereof, the neutral third

Article 7.5. Submission of Settlement Agreement. Either person may identify areas of
party may submit to the court
agreement, clarify the issues, define those that are
before which the case is pending any settlement contentious, and encourage the parties to agree on a
agreement following a neutral or an early definition of issues and stipulate on facts or admit the
neutral evaluation, mini-trial or mediation- genuineness and due execution of documents.
arbitration.
(f) The neutral third person shall issue a written evaluation
or assessment within thirty
RULE 2 – Neutral or Early Neutral Evaluation (30) days from the conclusion of the evaluation process.
Article 7.6. Neutral or Early Neutral Evaluation. (a) The The opinion shall be non-binding and shall set forth how
neutral or early neutral the neutral third person would have ruled had the matter
been subject to a binding process. The evaluation or

55
assessment shall indicate the relative strengths and (e) Each party shall submit a brief executive summary of
weaknesses of the positions of the parties, the basis for the dispute in sufficient copies
the evaluation or assessment, and an estimate, when
feasible, of the amount for which a party may be liable to as to provide one copy to each mini-trial panel member
the other if the dispute were made subject to a binding and to the adverse party. The summary shall identify the
process. specific factual or legal issue or issues. Each party may
attach to the summary a more exhaustive recital of the
(g)There shall be no ex-parte communication between the facts of the dispute and the applicable law and
neutral third person and any jurisprudence.

party to the dispute without the consent of all the parties. (f) At the date, time and place agreed upon, the parties
shall appear before the mini- trial
(h) All papers and written presentations communicated to
the neutral third person, panel member/s. The lawyer of each party and/or
authorized representative shall present his/her case
including any paper prepared by a party to be starting with the claimant followed by the respondent. The
communicated to the neutral third person or to the other lawyer and/or representative of each party may thereafter
party as part of the dispute resolution process, and the offer rebuttal or sur-rebuttal arguments.
neutral third person’s written non-binding assessment or
evaluation, shall be treated as confidential. Unless the parties agree on a shorter or longer period, the
presentation-in-chief shall be

made, without interruption, for one hour and the rebuttal

RULE 3 – Mini-Trial or sur-rebuttal shall be thirty (30) minutes.
Article 7.7. Mini-Trial. (a) A mini-trial shall be governed by At the end of each presentation, rebuttal or sur-rebuttal,
the rules and procedure the mini-trial panel member/s may ask clarificatory
agreed upon by the parties. In the absence of said questions from any of the presentors.
agreement, this Rule shall apply. (g) After the mini-trial, the mini-trial panel members shall
(b) A mini-trial shall be conducted either as: (i) a separate negotiate a
dispute resolution process; or settlement of the dispute by themselves.
(ii) a continuation of mediation, neutral or early neutral In cases where a neutral third person is appointed, the
evaluation or any other ADR process. neutral third person shall assist
(c) The parties may agree that a mini-trial be conducted the parties/mini-trial panel members in settling the
with or without the presence and dispute and, unless otherwise agreed by the parties, the
participation of a neutral third person. If a neutral third proceedings shall be governed by Chapter 3 on Mediation.
person is agreed upon and chosen, he/she shall preside
over the mini-trial. The parties may agree to appoint one
or more (but equal in number per party) senior
executive/s, on its behalf, to sit as mini-trial panel
members. RULE 4 – Mediation-Arbitration

(d) The senior executive/s chosen to sit as mini-trial panel Article 7.8. Mediation-Arbitration.
members must be duly (a) A Mediation-Arbitration shall be governed by the
authorized to negotiate and settle the dispute with the rules and procedure agreed upon by the parties. In the
other party. The appointment of a mini- trial panel absence of said agreement, Chapter 3 on Mediation shall
member/s shall be communicated to the other party. This first apply and thereafter, Chapter 5 on Domestic
appointment shall constitute a representation to the other Arbitration.
party that the mini-trial panel member/s has/have the
authority to enter into a settlement agreement binding (b) No person shall, having been engaged and having acted
upon the principal without any further action or as mediator of a dispute
ratification by the latter.

56
between the parties, following a failed mediation, act as may not be made dependent upon the success of his/her
arbitrator of the same dispute, unless the parties, in a effort in helping the parties to settle their dispute.
written agreement, expressly authorize the mediator to
hear and decide the case as an arbitrator.

(c) The mediator who becomes an arbitrator pursuant to a. Exclusions

this Rule shall make an i. §6, R.A. No. 9285; Art. 2035, R.A. No. 386

appropriate disclosure to the parties as if the arbitration

proceeding had commenced and will proceed as a new
SEC. 6. Exception to the Application of this Act. - The
dispute resolution process, and shall, before entering upon
provisions of this Act shall not apply to resolution or
his/her duties, execute the appropriate oath or affirmation
settlement of the following:
of office as arbitrator in accordance with these Rules.
(a) labor disputes covered by Presidential Decree No. 442,
otherwise known as the Labor Code of the Philippines, as
RULE 5 – Costs and Fees amended and its Implementing Rules and Regulations;

Article 7.9. Costs and Fees. (b) the civil status of persons;

(a) Before entering his/her duties as ADR Provider, he/she (c) the validity of a marriage;

shall agree with the parties on the cost of the ADR (d) any ground for legal separation;
procedure, the fees to be paid and manner of payment for
(e) the jurisdiction of courts;
his/her services.
(f) future legitime;
(b) In the absence of such agreement, the fees for the
services of the ADR (g) criminal liability; and

provider/practitioner shall be determined as follows: (h) those which by law cannot becompromised

(i) If the ADR procedure is conducted under the rules

and/or administered by an
Article 2035. No compromise upon the following questions
institution regularly providing ADR services to the general shall be valid:
public, the fees of the
(1) The civil status of persons;
ADR professional shall be determined in accordance with
schedule of fees (2) The validity of a marriage or a legal separation;

approved by such institution, if any; (3) Any ground for legal separation;

(ii) In ad hoc ADR, the fees shall be determined in (4) Future support;
accordance with the schedule of
(5) The jurisdiction of courts;
fees approved by the OADR;
(6) Future legitime. (1814a).
(iii) In the absence of a schedule of fees approved by the
b. Exclusions
ADR institution or by the
i. §6, R.A. No. 9285; Art. 2035, R.A. No. 386
OADR, the fees shall be determined by the ADR institution
or the OADR, as the §6, R.A. No. 9285

case may be, on the basis of quantum meruit, taking into SEC. 6. Exception to the Application of this Act. - The
consideration, among others, the length and complexity of provisions of this Act shall not apply to resolution or
the process, the amount in dispute and the settlement of the following: (a) labor disputes covered by
Presidential Decree No. 442, otherwise known as the Labor
professional standing of the ADR professional. Code of the Philippines, as amended and its Implementing
Rules and Regulations; (b) the civil status of persons; (c)
(c) A contingency fee arrangement shall not be allowed. the validity of a marriage; (d) any ground for legal
The amount that may be allowed to an ADR professional separation; (e) the jurisdiction of courts; (f) future

57
legitime; (g) criminal liability; and (h) those which by law absentee’s representatives, and administrators or
cannot be compromised. executors of decedent’s estates. (1810a)

Art. 2035, R.A. No. 386 ARTICLE 2033. Juridical persons may compromise only in
the form and with the requisites which may be necessary
ARTICLE 2035. No compromise upon the following to alienate their property. (1812a)
questions shall be valid:
ARTICLE 2034. There may be a compromise upon the civil
(1) The civil status of persons; liability arising from an offense; but such compromise shall
not extinguish the public action for the imposition of the
(2) The validity of a marriage or a legal separation;
legal penalty. (1813)
(3) Any ground for legal separation;
ARTICLE 2035. No compromise upon the following
(4) Future support; questions shall be valid:

(5) The jurisdiction of courts; (1) The civil status of persons;

(6) Future legitime. (1814a) (2) The validity of a marriage or a legal separation;

(3) Any ground for legal separation;

4. Compromise (4) Future support;

Arts. 2028-2041, Ch. 1, Title XIV, Book IV, R.A. No. 386 (5) The jurisdiction of courts;

TITLE XIV -Compromises and Arbitrations (6) Future legitime. (1814a)

CHAPTER 1 ARTICLE 2036. A compromise comprises only those objects

which are definitely stated therein, or which by necessary
Compromises implication from its terms should be deemed to have been
included in the same.
ARTICLE 2028. A compromise is a contract whereby the
parties, by making reciprocal concessions, avoid a litigation A general renunciation of rights is understood to refer only
or put an end to one already commenced. (1809a) to those that are connected with the dispute which was
the subject of the compromise. (1815)
ARTICLE 2029. The court shall endeavor to persuade the
litigants in a civil case to agree upon some fair ARTICLE 2037. A compromise has upon the parties the
compromise. (n) effect and authority of res judicata; but there shall be no
execution except in compliance with a judicial
ARTICLE 2030. Every civil action or proceeding shall be compromise. (1816)
suspended:
ARTICLE 2038. A compromise in which there is mistake,
(1) If willingness to discuss a possible compromise is fraud, violence, intimidation, undue influence, or falsity of
expressed by one or both parties; or documents, is subject to the provisions of article 1330 of
this Code.
(2) If it appears that one of the parties, before the
commencement of the action or proceeding, offered to However, one of the parties cannot set up a mistake of
discuss a possible compromise but the other party refused fact as against the other if the latter, by virtue of the
the offer. compromise, has withdrawn from a litigation already
commenced. (1817a)
The duration and terms of the suspension of the civil
action or proceeding and similar matters shall be governed ARTICLE 2039. When the parties compromise generally on
by such provisions of the rules of court as the Supreme all differences which they might have with each other, the
Court shall promulgate. Said rules of court shall likewise discovery of documents referring to one or more but not
provide for the appointment and duties of amicable to all of the questions settled shall not itself be a cause for
compounders. (n) annulment or rescission of the compromise, unless said
documents have been concealed by one of the parties.
ARTICLE 2031. The courts may mitigate the damages to be
paid by the losing party who has shown a sincere desire for But the compromise may be annulled or rescinded if it
a compromise. (n) refers only to one thing to which one of the parties has no
right, as shown by the newly-discovered documents. (n)
ARTICLE 2032. The court’s approval is necessary in
compromises entered into by guardians, parents,

58
ARTICLE 2040. If after a litigation has been decided by a petitioner’s wedding, respondent sent his brother Catalino
final judgment, a compromise should be agreed upon, Chua (Catalino) as his representative, and it was the latter
either or both parties being unaware of the existence of who acted as father of the bride. Respondent’s relatives
the final judgment, the compromise may be rescinded. even attended the baptism of petitioner’s daughter.2

Ignorance of a judgment which may be revoked or set In his Answer3 to the Complaint, filed on 9 December 2003,
aside is not a valid ground for attacking a compromise. respondent denied that he had an illicit relationship with
(1819a) Irene, and that petitioner was his daughter.4 Hearings then
ensued during which petitioner testified that respondent
ARTICLE 2041. If one of the parties fails or refuses to abide was the only father she knew; that he took care of all her
by the compromise, the other party may either enforce needs until she finished her college education; and that he
the compromise or regard it as rescinded and insist upon came to visit her on special family occasions. She also
his original demand. (n) acd presented documentary evidence to prove her claim of
illegitimate filiation. Subsequently, on 27 March 2008,
Joanie Surposa Uy v. Jose Ngo Chua, G.R. No. 183965,
respondent filed a Demurrer to Evidence5 on the ground
September 18, 2009
that the Decision dated 21 February 2000 of RTC-Branch 9
G.R. No. 183965 September 18, 2009 in Special Proceeding No. 8830-CEB had already been
barred by res judicata in Special Proceeding No. 12562-CEB
JOANIE SURPOSA UY, Petitioner, before RTC-Branch 24.
vs.
JOSE NGO CHUA, Respondent. It turned out that prior to instituting Special Proceeding
No. 12562-CEB on 27 October 2003, petitioner had already
DECISION filed a similar Petition for the issuance of a decree of
illegitimate affiliation against respondent. It was docketed
CHICO-NAZARIO, J.: as Special Proceeding No. 8830-CEB, assigned to RTC-
This is a Petition for Review under Rule 45 of the Rules of Branch 9. Petitioner and respondent eventually entered
Court assailing the Resolution dated 25 June 2008 of the into a Compromise Agreement in Special Proceeding No.
Regional Trial Court (RTC) of Cebu City, Branch 24, which 8830-CEB, which was approved by RTC-Branch 9 in a
granted the demurrer to evidence of respondent Jose Ngo Decision6 dated 21 February 2000. The full contents of said
Chua, resulting in the dismissal of Special Proceeding No. Decision reads:
12562-CEB. Under consideration is a Compromise Agreement filed by
Petitioner Joanie Surposa Uy filed on 27 October 2003 the parties on February 18, 2000, praying that judgment
before the RTC a Petition1 for the issuance of a decree of be rendered in accordance therewith, the terms and
illegitimate filiation against respondent. The Complaint conditions of which follows:
was docketed as Special Proceeding No. 12562-CEB, "1. Petitioner JOANIE SURPOSA UY declares,
assigned to RTC-Branch 24. admits and acknowledges that there is no blood
Petitioner alleged in her Complaint that respondent, who relationship or filiation between petitioner and
was then married, had an illicit relationship with Irene her brother Allan on one hand and [herein
Surposa (Irene). Respondent and Irene had two children, respondent] JOSE NGO CHUA on the other. This
namely, petitioner and her brother, Allan. Respondent declaration, admission or acknowledgement is
attended to Irene when the latter was giving birth to concurred with petitioner’s brother Allan, who
petitioner on 27 April 1959, and instructed that although not a party to the case, hereby affixes
petitioner’s birth certificate be filled out with the following his signature to this pleading and also abides by
names: "ALFREDO F. SURPOSA" as father and "IRENE the declaration herein.
DUCAY" as mother. Actually, Alfredo F. Surposa was the 2. As a gesture of goodwill and by way of settling
name of Irene’s father, and Ducay was the maiden petitioner and her brother’s (Allan) civil,
surname of Irene’s mother. Respondent financially monetary and similar claims but without
supported petitioner and Allan. Respondent had admitting any liability, [respondent] JOSE NGO
consistently and regularly given petitioner allowances CHUA hereby binds himself to pay the petitioner
before she got married. He also provided her with the sum of TWO MILLION PESOS (₱2,000,000.00)
employment. When petitioner was still in high school, and another TWO MILLION PESOS
respondent required her to work at the Cebu Liberty (₱2,000,000.00) to her brother, ALLAN SURPOSA.
Lumber, a firm owned by his family. She was later on able Petitioner and her brother hereby acknowledge
to work at the Gaisano- Borromeo Branch through to have received in full the said compromise
respondent’s efforts. Petitioner and Allan were introduced amount.
to each other and became known in the Chinese
community as respondent’s illegitimate children. During

59
 3. Petitioner and her brother (Allan) hereby alteration by another Regional Trial Court and
declare that they have absolutely no more not even the Supreme Court, no matter how
claims, causes of action or demands against erroneous.
[respondent] JOSE NGO CHUA, his heirs,
successors and assigns and/or against the estate 3. Judicial Admissions or admission in
of Catalino Chua, his heirs, successors and petitioner’s pleadings to the effect that there is
assigns and/or against all corporations, no blood relationship between petitioner and
companies or business enterprises including respondent, which is a declaration against
Cebu Liberty Lumber and Joe Lino Realty interest, are conclusive on her and she should
Investment and Development Corporation not be permitted to falsify.
where defendant JOSE NGO CHUA or CATALINO
4. That the Certificate of Live Birth showing that
NGO CHUA may have interest or participation.
petitioner’s father is Alfredo Surposa is a public
4. [Respondent] JOSE NGO CHUA hereby waives document which is the evidence of the facts
all counterclaim or counter-demand with respect therein stated, unless corrected by judicial order.
to the subject matter of the present petition.
5. After receiving the benefits and concessions
5. Pursuant to the foregoing, petitioner hereby pursuant to their compromise agreement, she is
asks for a judgment for the permanent dismissal estopped from refuting on the effects thereof to
with prejudice of the captioned petition. the prejudice of the [herein respondent].
[Respondent] also asks for a judgment
The summary of the Opposition is in this wise:
permanently dismissing with prejudice his
counterclaim." 1. That the illegitimate filiation of petitioner to
respondent is established by the open, and
Finding the said compromise agreement to be in order, the
continuous possession of the status of an
Court hereby approves the same. Judgment is rendered in
illegitimate child.
accordance with the provisions of the compromise
agreement. The parties are enjoined to comply with their 2. The Demurrer to the evidence cannot set up
respective undertakings embodied in the agreement.7 the affirmative grounds for a Motion to Dismiss.
With no appeal having been filed therefrom, the 21 3. The question on the civil status, future support
February 2000 Decision of RTC-Branch 9 in Special and future legitime can not be subject to
Proceeding 8830-CEB was declared final and executory. compromise.
Petitioner filed on 15 April 2008 her Opposition8 to 4. The decision in the first case does not bar the
respondent’s Demurrer to Evidence in Special Proceeding filing of another action asking for the same relief
No. 12562-CEB. Thereafter, RTC-Branch 24 issued its now against the same defendant.9
assailed Resolution dated 25 June 2008 in Special
Proceeding No. 12562-CEB, granting respondent’s Taking into consideration the aforementioned positions of
Demurrer. the parties, RTC-Branch 24 held that:

RTC-Branch 24 summarized the arguments of respondent Looking at the issues from the viewpoint of a judge, this
and petitioner in the Demurrer and Opposition, Court believes that its hands are tied. Unless the Court of
respectively, as follows: Appeals strikes down the Compromise Judgment rendered
by Branch 09 of the Regional Trial Court of Cebu City, this
This is to resolve the issues put across in the Demurrer to Court will not attempt to vacate, much more annul, that
the Evidence submitted to this Court; the Opposition Judgment issued by a co-equal court, which had long
thereto; the Comment on the Opposition and the become final and executory, and in fact executed.
Rejoinder to the Comment.
This court upholds the Policy of Judicial Stability since to
xxxx do otherwise would result in patent abuse of judicial
discretion amounting to lack of jurisdiction. The defense of
1. The instant case is barred by the principle of
lack of jurisdiction cannot be waived. At any rate, such is
res judicata because there was a judgment
brought forth in the Affirmative Defenses of the Answer.
entered based on the Compromise Agreement
approved by this multiple-sala Court, branch 09, This Court, saddled with many cases, suffers the brunt of
on the same issues and between the same allowing herein case involving same parties to re-litigate
parties. on the same issues already closed.10
2. That such decision of Branch 09, having In the end, RTC-Branch 24 decreed:
attained finality, is beyond review, reversal or

60
WHEREFORE, in view of the foregoing, the Demurrer to the common law, namely: (1) public policy and necessity,
Evidence is hereby given due course, as the herein case is which makes it in the interest of the State that there
hereby ordered DISMISSED.11 should be an end to litigation, interest reipublicae ut sit
finis litium, and (2) the hardship of the individual that he
RTC-Branch 24 denied petitioner’s Motion for should be vexed twice for the same cause, nemo debet bis
Reconsideration12 in a Resolution13 dated 29 July 2008. vexari pro eadem causa.16
Petitioner then filed the instant Petition raising the For res judicata, to serve as an absolute bar to a
following issues for resolution of this Court: subsequent action, the following requisites must concur:
(1) there must be a final judgment or order; (2) the court
I
rendering it must have jurisdiction over the subject matter
Whether or not the principle of res judicata is applicable to and the parties; (3) it must be a judgment or order on the
judgments predicated upon a compromise agreement on merits; and (4) there must be, between the two cases,
cases enumerated in Article 2035 of the Civil Code of the identity of parties, subject matter, and causes of action.17
Philippines;
It is undeniable that Special Proceeding No. 8830-CEB,
II previously before RTC-Branch 9, and Special Proceeding
No. 12562-CEB, presently before RTC-Branch 24, were
Whether or not the compromise agreement entered into both actions for the issuance of a decree of illegitimate
by the parties herein before the Regional Trial Court, filiation filed by petitioner against respondent. Hence,
Branch 09 of Cebu City effectively bars the filing of the there is apparent identity of parties, subject matter, and
present case.14 causes of action between the two cases. However, the
question arises as to whether the other elements of res
At the outset, the Court notes that from the RTC judicata exist in this case.
Resolution granting respondent’s Demurrer to Evidence,
petitioner went directly to this Court for relief. This is only The court rules in the negative.
proper, given that petitioner is raising pure questions of
law in her instant Petition.a1f A compromise is a contract whereby the parties, by
making reciprocal concessions, avoid a litigation or put an
Section 1, Rule 45 of the Rules of Court provides: end to one already commenced.18 In Estate of the late
Jesus S. Yujuico v. Republic,19 the Court pronounced that a
SECTION 1. Filing of petition with Supreme Court. – A party judicial compromise has the effect of res judicata. A
desiring to appeal by certiorari from a judgment or final judgment based on a compromise agreement is a
order or resolution of the Court of Appeals, the judgment on the merits.
Sandiganbayan, the Regional Trial Court or other courts
whenever authorized by law, may file with the Supreme It must be emphasized, though, that like any other
Court a verified petition for review on certiorari. The contract, a compromise agreement must comply with the
petition shall raise only questions of law which must be requisites in Article 1318 of the Civil Code, to wit: (a)
distinctly set forth. consent of the contracting parties; (b) object certain that is
the subject matter of the contract; and (c) cause of the
Clearly, a party may directly appeal to this Court from a obligation that is established. And, like any other contract,
decision or final order or resolution of the trial court on the terms and conditions of a compromise agreement
pure questions of law. A question of law lies, on one hand, must not be contrary to law, morals, good customs, public
when the doubt or difference arises as to what the law is policy and public order. Any compromise agreement that
on a certain set of facts; a question of fact exists, on the is contrary to law or public policy is null and void, and vests
other hand, when the doubt or difference arises as to the no rights in and holds no obligation for any party. It
truth or falsehood of the alleged facts. Here, the facts are produces no legal effect at all.20
not disputed; the controversy merely relates to the correct
application of the law or jurisprudence to the undisputed In connection with the foregoing, the Court calls attention
facts.15 to Article 2035 of the Civil Code, which states:

The central issue in this case is whether the Compromise ART. 2035. No compromise upon the following questions
Agreement entered into between petitioner and shall be valid:
respondent, duly approved by RTC-Branch 9 in its Decision
dated 21 February 2000 in Special Proceeding No. 8830- (1) The civil status of persons;
CEB, constitutes res judicata in Special Proceeding No.
(2) The validity of a marriage or a legal
12562-CEB still pending before RTC-Branch 24.1avvphi1
separation;
The doctrine of res judicata is a rule that pervades every
(3) Any ground for legal separation;
well- regulated system of jurisprudence and is founded
upon two grounds embodied in various maxims of the

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 (4) Future support; beyond the jurisdiction of RTC-Branch 9 to legalize what is
illegal. RTC-Branch 9 had no authority to approve and give
(5) The jurisdiction of courts; effect to a Compromise Agreement that was contrary to
law and public policy, even if said contract was executed
(6) Future legitime. (Emphases ours.)
and submitted for approval by both parties. RTC-Branch 9
The Compromise Agreement between petitioner and would not be competent, under any circumstances, to
respondent, executed on 18 February 2000 and approved grant the approval of the said Compromise Agreement. No
by RTC-Branch 9 in its Decision dated 21 February 2000 in court can allow itself to be used as a tool to circumvent
Special Proceeding No. 8830-CEB, obviously intended to the explicit prohibition under Article 2035 of the Civil
settle the question of petitioner’s status and filiation, i.e., Code. The following quote in Francisco v. Zandueta25 is
whether she is an illegitimate child of respondent. In relevant herein:
exchange for petitioner and her brother Allan
It is a universal rule of law that parties cannot, by consent,
acknowledging that they are not the children of
give a court, as such, jurisdiction in a matter which is
respondent, respondent would pay petitioner and Allan
excluded by the laws of the land. In such a case the
₱2,000,000.00 each. Although unmentioned, it was a
question is not whether a competent court has obtained
necessary consequence of said Compromise Agreement
jurisdiction of a party triable before it, but whether the
that petitioner also waived away her rights to future
court itself is competent under any circumstances to
support and future legitime as an illegitimate child of
adjudicate a claim against the defendant. And where there
respondent. Evidently, the Compromise Agreement dated
is want of jurisdiction of the subject-matter, a judgment is
18 February 2000 between petitioner and respondent is
void as to all persons, and consent of parties can never
covered by the prohibition under Article 2035 of the Civil
impart to it the vitality which a valid judgment derives
Code.
from the sovereign state, the court being constituted, by
Advincula v. Advincula21 has a factual background closely express provision of law, as its agent to pronounce its
similar to the one at bar. Manuela Advincula (Manuela) decrees in controversies between its people. (7 R. C. L.,
filed, before the Court of First Instance (CFI) of Iloilo, Civil 1039.)
Case No. 3553 for acknowledgment and support, against
A judgment void for want of jurisdiction is no judgment at
Manuel Advincula (Manuel). On motion of both parties,
all. It cannot be the source of any right or the creator of
said case was dismissed. Not very long after, Manuela
any obligation. All acts performed pursuant to it and all
again instituted, before the same court, Civil Case No.
claims emanating from it have no legal effect. Hence, it can
5659 for acknowledgment and support, against Manuel.
never become final, and any writ of execution based on it
This Court declared that although Civil Case No. 3553
is void. It may be said to be a lawless thing that can be
ended in a compromise, it did not bar the subsequent
treated as an outlaw and slain on sight, or ignored
filing by Manuela of Civil Case No. 5659, asking for the
wherever and whenever it exhibits its head.26
same relief from Manuel. Civil Case No. 3553 was an action
for acknowledgement, affecting a person’s civil status, In sum, Special Proceeding No. 12562-CEB before RTC-
which cannot be the subject of compromise. Branch 24 is not barred by res judicata, since RTC-Branch 9
had no jurisdiction to approve, in its Decision dated 21
It is settled, then, in law and jurisprudence, that the status
February 2000 in Special Proceeding No. 8830-CEB,
and filiation of a child cannot be compromised. Public
petitioner and respondent’s Compromise Agreement,
policy demands that there be no compromise on the
which was contrary to law and public policy; and,
status and filiation of a child.22 Paternity and filiation or the
consequently, the Decision dated 21 February 2000 in
lack of the same, is a relationship that must be judicially
Special Proceeding No. 8830-CEB, being null and void for
established, and it is for the Court to declare its existence
having been rendered by RTC-Branch 9 without
or absence. It cannot be left to the will or agreement of
jurisdiction, could not have attained finality or been
the parties.23
considered a judgment on the merits.
Being contrary to law and public policy, the Compromise
Nevertheless, the Court must clarify that even though the
Agreement dated 18 February 2000 between petitioner
Compromise Agreement between petitioner and
and respondent is void ab initio and vests no rights and
respondent is void for being contrary to law and public
creates no obligations. It produces no legal effect at all.
policy, the admission petitioner made therein may still be
The void agreement cannot be rendered operative even by
appreciated against her in Special Proceeding No. 12562-
the parties' alleged performance (partial or full) of their
CEB. RTC-Branch 24 is only reminded that while
respective prestations.24
petitioner’s admission may have evidentiary value, it does
Neither can it be said that RTC-Branch 9, by approving the not, by itself, conclusively establish the lack of filiation.27
Compromise Agreement, in its Decision dated 21 February
Proceeding from its foregoing findings, the Court is
2000 in Special Proceeding No. 8830-CEB, already made
remanding this case to the RTC-Branch 24 for the
said contract valid and legal. Obviously, it would already be
continuation of hearing on Special Proceedings No. 12562-

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CEB, more particularly, for respondent’s presentation of as having dismissed Special Proceeding No. 12562-CEB on
evidence. the ground of res judicata rather than an adjudication on
the merits of respondent’s demurrer to evidence.
Although respondent’s pleading was captioned a Demurrer Necessarily, the last line of Section 1, Rule 33 of the Rules
to Evidence, it was more appropriately a Motion to Dismiss of Court should not apply herein and respondent should
on the ground of res judicata. still be allowed to present evidence before RTC-Branch 24
in Special Proceedings No. 12562-CEB.
Demurrer to Evidence is governed by Rule 33 of the Rules
of Court, Section 1 of which is reproduced in full below: It must be kept in mind that substantial justice must
prevail. When there is a strong showing that grave
SECTION 1. Demurrer to evidence. – After the plaintiff has
miscarriage of justice would result from the strict
completed the presentation of his evidence, the defendant
application of the Rules, this Court will not hesitate to
may move for dismissal on the ground that upon the facts
relax the same in the interest of substantial justice. The
and the law the plaintiff has shown no right to relief. If his
Rules of Court were conceived and promulgated to set
motion is denied, he shall have the right to present
forth guidelines in the dispensation of justice but not to
evidence. If the motion is granted but on appeal the order
bind and chain the hand that dispenses it, for otherwise,
of dismissal is reversed he shall be deemed to have waived
courts will be mere slaves to or robots of technical rules,
the right to present evidence.
shorn of judicial discretion. That is precisely why courts in
Demurrer to evidence authorizes a judgment on the merits rendering real justice have always been, as they in fact
of the case without the defendant having to submit ought to be, conscientiously guided by the norm that when
evidence on his part, as he would ordinarily have to do, if on the balance, technicalities take backseat against
plaintiff's evidence shows that he is not entitled to the substantive rights, and not the other way around.30
relief sought. Demurrer, therefore, is an aid or instrument
WhereforE, premises considered, the Resolution dated 25
for the expeditious termination of an action, similar to a
June 2008 of the Regional Trial Court of Cebu City, Branch
motion to dismiss, which the court or tribunal may either
24, in Special Proceeding No. 12562-CEB is REVERSED and
grant or deny.28
set aside. This case is ordered REMANDED to the said trial
The Court has recently established some guidelines on court for further proceedings in accordance with the ruling
when a demurrer to evidence should be granted, thus: of the Court herein. No costs.

A demurrer to evidence may be issued when, upon the

facts and the law, the plaintiff has shown no right to relief.
Where the plaintiff's evidence together with such
inferences and conclusions as may reasonably be drawn
therefrom does not warrant recovery against the
defendant, a demurrer to evidence should be sustained. A Art. 151, Ch. 1, Title V, Executive Order (E.O.) No. 209
demurrer to evidence is likewise sustainable when, (Family Code of the Philippines)
admitting every proven fact favorable to the plaintiff and
indulging in his favor all conclusions fairly and reasonably TITLE V
inferable therefrom, the plaintiff has failed to make out
THE FAMILY
one or more of the material elements of his case, or when
there is no evidence to support an allegation necessary to
his claim. It should be sustained where the plaintiff's CHPTER 1. THE FAMILY AS AN INSTITUTION)
evidence is prima facie insufficient for a recovery.29
Art. 151. No suit between members of the same family
The essential question to be resolved in a demurrer to
shall prosper unless it should appear from the verified
evidence is whether petitioner has been able to show that
complaint or petition that earnest efforts toward a
she is entitled to her claim, and it is incumbent upon RTC-
compromise have been made, but that the same have
Branch 24 to make such a determination. A perusal of the
failed. If it is shown that no such efforts were in fact made,
Resolution dated 25 June 2008 of RTC-Branch 24 in Special
the same case must be dismissed.
Proceeding No. 12562-CEB shows that it is barren of any
discussion on this matter. It did not take into consideration
any of the evidence presented by petitioner. RTC-Branch This rules shall not apply to cases which may not be the
24 dismissed Special Proceedings No. 12562-CEB on the subject of compromise under the Civil Code.
sole basis of res judicata, given the Decision dated 21
February 2000 of RTC-Branch 9 in Special Proceeding No.
8830-CEB, approving the Compromise Agreement
between petitioner and respondent. Hence, the Resolution
dated 25 June 2008 of RTC-Branch 24 should be deemed

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