AN ACT TO INSTITUTIONALIZE THE

USE OF AN ALTERNATIVE DISPUTE Q: What if the parties into a contract

RESOLUTION SYSTEM IN THE stipulating therein that in the event
PHILIPPINES AND TO ESTABLISH THE of dispute arising from the same
OFFICE FOR ALTERNATIVE DISPUTE contract, they are going to refer the
RESOLUTION, AND FOR OTHER case to the RTC of Manila. Are they
PURPOSES proper subjects of ADR?
STRATE POLICY
Q: What is the policy of the State in A: No. The dispute to be covered by the
ADR? ADR must be resolved by an impartial
third party who is neither a judge nor an
A: It is hereby declared the policy of the agent of the government. If it is the court
State to actively promote party that resolves the dispute, such resolution
autonomy in the resolution of is excluded in the ADR.
disputes or the freedom of the party
to make their own arrangements to
resolve their disputes. Towards this Q: A and B entered into an agreement
end, the State shall encourage and that in the event of dispute, they will
actively promote the use of Alternative resolve the controversy through
Dispute Resolution (ADR) as an important arbitration. There was a breach of
means to achieve speedy and contract. Suppose the parties
impartial justice and declog court invoked their agreement, what will
dockets. the court do?

A:
Q: What is the Constitutional basis of 1) The Court shall suspend the
ADR? proceedings
2) The court shall direct the parties to
A: ARTICLE XIII, Section 3. XXX The go to ADR on the basis of their
State shall promote the principle of contract or agreement
shared responsibility between 3) After the proceedings in the ADR
workers and employers and the and after rendering of award, the
preferential use of voluntary modes arbitrator shall not refer the award
in settling disputes, including to the court for the parties to
conciliation, and shall enforce their comply
mutual compliance therewith to
foster industrial peace.

NOTE: The employers and employees are Q: What is the nature of proceedings
encouraged to go ADR under the under ADR?
Constitution for the purpose of obtaining
industrial peace. A: All proceedings under special
proceedings.
DEFINITION OF TERMS AND
Q: What is the legal basis of ADR? CONCEPTS
Give the Civil Code provision.
Q: What is Alternative Dispute
A: The contracting parties may Resolution (ADR)?
establish such stipulations, clauses,
terms and conditions as they may A: It means any process or procedure
deem convenient, provided they are used to resolve a dispute or
not contrary to law, morals, good controversy, other than by
customs, public order, or public adjudication of a presiding judge of a
policy. (1255a) court or an officer of a government
agency in which a neutral third party
participates to assist in the resolution of A: The parties can implement the kind of
issues, which includes arbitration, dispute resolution that they would like to
mediation, conciliation, early neutral avail of.
evaluation, mini-trial, or any combination
thereof.

Q: Who is an ADR provider?

NOTES ON ALTERNATIVE DISPUTE Q: Who is an arbitrator?
RESOLUTION
A: It means institutions or persons A: Arbitrator means the person appointed
accredited as mediator, conciliator, to render an award, alone or with others,
arbitrator, neutral evaluator, or any in a dispute that is the subject of an
person exercising similar functions in any arbitration agreement.
Alternative Dispute Resolution system.

NOTE: The parties are given the right to Q: What is an award?

chose non-accredited individuals to act as
mediator, conciliator, arbitrator, or neutral A: It means any partial or final decision by
evaluator of their dispute. an arbitrator in resolving the issue in a
controversy.

Q: Who is an ADR Practitioner?

Q: When is arbitration considered as
A: It shall refer to individuals acting as commercial?
mediator, conciliator, arbitrator or
neutral evaluator. A: An arbitration is "commercial” if it
covers matter arising from all
relationships of a commercial nature,
Q: In what ways, ADR is whether contractual or not.
implemented?

A: Q: Give the rule as regards the

1. Arbitration confidentiality of information with
2. Mediation or conciliation regard to arbitration or mediation.
3. Mini-trial
4. Early Neutral Evaluation A: Any information, relative to the subject
of mediation or arbitration, expressly
intended by the source not to be
Q: What is arbitration? disclosed, or obtained under
circumstances that would create a
A: Arbitration means a voluntary dispute reasonable expectation on behalf of the
resolution process in which one or more source that the information shall not be
arbitrators, appointed in accordance with disclosed.
the agreement of the parties, or rules
promulgated pursuant to ADR Act of 2004,
resolve a dispute by rendering an award. Q: What is included in the phrase
“confidential information?”

Q: Who determines/chooses the A: It shall include:

particular way to be utilized in
resolving a dispute through the ADR? (1) communication, oral or written,
made in a dispute resolution
proceedings, including any
memoranda, notes or work product
 of the neutral party or nonparty with whom the case was first filed. The 2
participant; courts in such case
belongs to the same category or equal
(2) an oral or written statement made level.
or which occurs during mediation
or for purposes of considering, Q: What is Court-Referred Mediation?
conducting, participating, initiating, A: It means mediation ordered by a court
continuing of reconvening to be conducted in
mediation or retaining a mediator; accordance with the Agreement of the
and Parties when as
action is prematurely commenced in
(3) Pleadings, motions manifestations, violation of such
witness statements, reports filed or agreement.
submitted in an arbitration or for
expert evaluation. Q: What is Early Neutral Evaluation?
A: It means an ADR process wherein
parties and their lawyers
Q: What is Court-Annexed Mediation? are brought together in an early in a pre-
trial phase to
A: It means any mediation process present summaries of their cases and
conducted under the auspices of the receive a nonbinding
court, after such court has acquired assessment by an experienced, neutral
jurisdiction of the dispute. person, with expertise
in the subject in the substance of the
dispute.
Q: What are the purposes of a court-
annexed mediation? Q: What is Mediation?
A: It means a voluntary process in which a
A: mediator, selected
1. To unclog the docket of the court by the disputing parties, facilitates
2. To shorten the proceedings communication and
3. To help in the evaluation of elements negotiation, and assist the parties in
4. To bring the parties into a settlement reaching a voluntary
Illustration: agreement regarding a dispute.

Q: Who is a Mediator?
Q: There is a court proceeding A: It means a person who conducts
between A and B with regard mediation.
the accounting claim of A to B. Can
the court direct the Q: What is Mini-Trial?
parties to go to ADR in order to A: It means a structured dispute
determine whether or not resolution method in which
the particular amount being claimed the merits of a case are argued before a
by A is correct? panel comprising
A: In such case, the court may refer the senior decision makers with or without the
parties. Since the presence of a
court will have to determine the actual neutral third person after which the
amount which the parties seek a negotiated
parties owe to each other, the court can settlement.
direct the parties to
go to mediation to an annex court. The Q: What is the difference between
judge in such case will mini-trial and early
be the judge of an annex court who is not neutral evaluation?
the same judge A:
There is a decision and from
that decision the parties are (a) Information obtained through
compelled to go a mediated mediation shall be
agreement. It will result in privileged and confidential.
the termination of the (b) A party, a mediator, or a nonparty
mediation, hence, binding. participant may
The resolution is merely an refuse to disclose and may prevent
advice; the parties may take any other
such resolution or not, person from disclosing a mediation
hence, not binding communication.

Q: Who is a non-party participant? Q: May the modes of discovery under

A: It means a person other than a party or the rules of court be
mediator, who availed of to obtain information
participates in a mediation proceeding as disclosed in mediation
a witness, resource proceedings?
person or expert. A:
EXCEPTION TO THE APPLICATION OF (c) Confidential Information shall not be
THE ADR LAW subject to
Q: What are the cases not covered by discovery and shall be inadmissible if any
ADR? adversarial proceeding, whether judicial or
A: The following cases are not covered by quasijudicial,
ADR? However, evidence or information that is
A: otherwise admissible or subject to
(a) labor disputes covered by Presidential discovery does
Decree No. not become inadmissible or protected
442, otherwise known as the Labor Code from
of the discovery solely by reason of its use in a
Philippines, as amended and its mediation.
Implementing Rules Q: Who are the parties covered by
and Regulations; the confidentiality rule?
(b) the civil status of persons; A:
(c) the validity of a marriage; (d) In such an adversarial proceeding, the
(d) any ground for legal separation; following
(e) the jurisdiction of courts; persons involved or previously involved in
(f) future legitime; a
(g) criminal liability; and NOTES ON ALTERNATIVE DISPUTE
(h) those which by law cannot be RESOLUTION
compromised. Kenneth & King Hizon (3A)
(i) Adoption (added by Atty. Palacios) ___________________________________________
MEDIATION __
CONDIDENTIALITY OF INFORMATION Facultad de Derecho Civil 4
Information obtained through mediation UNIVERSITY OF SANTO TOMAS
shall be privileged mediation may not be compelled to
and confidential. A party, a mediator, or a disclose
nonparty confidential information obtained during
participant may refuse to disclose and mediation:
may prevent any other (1) the parties to the dispute;
person from disclosing a mediation (2) the mediator or mediators;
communication. (3) the counsel for the parties;
GENERAL RULE (Section 9) (4) the nonparty participants;
Information obtained through mediation (5) any persons hired or engaged in
proceedings shall be connection
subject to the following principles and with the mediation as secretary,
guidelines: stenographer,
clerk or assistant; and
(6) any other person who obtains or A person who discloses or makes a
possesses representation about a
confidential information by reason of mediation is precluded from asserting the
his/her privilege to the
profession. extent that the communication prejudices
Q: There is an on-going mediation another person in
proceedings, as a the proceeding and it is necessary for the
consequence of that proceedings, a person prejudiced
party filed a case in to respond to the representation of
court which involve the same issue, disclosure.
same parties that is the Q: The rule is that if a party has been
subject of mediation. Then the prejudiced in that
parties subpoenaed the situation, the recourse will be an
mediator as a witness to testify about objection as to the
the mediation presentation of evidence that is
proceedings, can the mediator privileged. Suppose the
testify? court did not sustain the objection,
A: No and allow the mediator
Q: Can the mediator voluntarily to continue his testimony, what will
testify? be the aggrieved party’s
A: No, because such situation will violate recourse?
the rules on A: The court may allow the party the right
confidentiality to respond and
Q: Can this privilege arising from the repudiate whatever testimony that was
confidentiality of given by the
information in mediation proceedings mediator (right to rebut or counter-
be waived? testimony). He may also
A: Yes. A privilege arising from the file an action for damages.
confidentiality of EXCEPTIONS
information may be waived in a record, (a) There is no privilege against disclosure
or orally during a under Section 9 if
proceeding by the mediator and the mediation communication is:
mediation parties. A a. in an agreement evidenced by a
privilege arising from the confidentiality of record
information may authenticated by all parties to the
likewise be waived by a nonparty agreement;
participant if the b. available to the public or that is
information is provided by such nonparty made during a
participant. session of a mediation which is open, or is
Q: What is the consequence of required by law to be open, to the
disclosure of such public;
confidential information by the c. a threat or statement of a plan to
parties covered by the rule? inflict bodily
A: A person who discloses confidential injury or commit a crime of violence;
information shall be d. internationally used to plan a
precluded from asserting the privilege to crime, attempt to
bar disclosure of commit, or commit a crime, or
the rest of the information necessary conceal an
to a complete ongoing crime or criminal activity;
understanding of the previously e. sought or offered to prove or disprove
disclosed information. If a abuse,
person suffers loss or damages in a neglect, abandonment, or
judicial proceeding exploitation in a
against the person who made the proceeding in which a public agency
disclosure. is
protecting the interest of an Mediator's Disclosure and Conflict of
individual Interest
protected by law; Q: What is the obligation of the
XPN to the XPN: This exception does not Mediator before accepting a
apply mediation?
where a child protection matter is referred A: Before accepting a mediation, an
to individual who is
mediation by a court or a public agency requested to serve as a mediator shall:
participates in the child protection 1) make an inquiry that is reasonable
mediation; under the
f. sought or offered to prove or disprove a circumstances to determinate whether
claim or there are any
complaint of professional misconduct known facts that a reasonable
or individual would
malpractice filed against mediator in consider likely to affect the
a impartiality of the
proceeding; or mediator, including a financial or
g. sought or offered to prove or disprove a personal interest in
claim of the outcome of the mediation and any
complaint of professional misconduct existing or
of past relationship with a party or
malpractice filed against a party, foreseeable
nonparty participant in the mediation; and
participant, or representative of a 2) disclosure to the mediation parties any
party based such fact
on conduct occurring during a mediation. known or learned as soon as is practical
(b) There is no privilege if a court or before
administrative agency, accepting a mediation.
finds, after a hearing in camera, that the
party seeking Q: Can the mediator be asked to
discovery of the proponent of the disclose his/her
evidence has shown qualifications?
that the evidence is not otherwise A: Yes. At the request of a mediation
available, that there party, an individual who
is a need for the evidence that is requested to serve as mediator shall
substantially outweighs disclose his/her
the interest in protecting qualifications to mediate a dispute.
confidentiality, and the
mediation communication is sought or Q: Suppose that the proposed
offered in: mediator did not disclose any
a. a court proceeding involving a crime or of the matters that he is supposed to
felony; or disclose, and as a
NOTES ON ALTERNATIVE DISPUTE consequence of that, he was
RESOLUTION appointed as a mediator,
b. a proceeding to prove a claim or immediately the parties knew such
defense failure to disclose in the
that under the law is sufficient to reform middle of the mediation proceedings,
or what can the party
avoid a liability on a contract arising out of do?
the mediation. A: The party can remove the mediator and
NOTE: A mediator may not be compelled substitute another
to provide evidence one. Failure of the party to remove the
of a mediation communication or testify in mediator means there
such proceeding. is a waiver.
CONFLICT OF INTEREST
Q: Can the parties ask the mediator
to establish his Q: Who are required to sign the
qualification? agreement?
A: At the request of a mediation party, an A: The parties and their respective
individual who is counsels, if any, shall sign
requested to serve as mediator shall the settlement agreement. The
disclose his/her mediator shall certify that
qualifications to mediate a dispute. he/she explained the contents of the
settlement agreement
Q: Who should determine the to the parties in a language known to
qualifications of the them.
mediator?
A: The parties on their agreement. Deposit of the Settlement Agreement
NOTE: The law does not require that a Q: Where should the settlement be
mediator shall have deposited?
special qualifications by background or A: If the parties so desire, they may
profession unless the deposit such settlement
special qualifications of a mediator are agreement with the appropriate Clerk of a
required in the Regional Trial
mediation agreement or by the mediation Court of the place where one of the
parties. parties resides.
PARTICIPATION OF A LAWYER IN
MEDIATION Q: How should the agreement be
Q: May a party ask the assistance of a enforced?
lawyer in mediation NOTES ON ALTERNATIVE DISPUTE
proceedings? RESOLUTION
A: Yes. A party may designate a lawyer or A: Where there is a need to enforce the
any other person settlement
to provide assistance in the mediation. agreement, a petition may be filed by any
of the parties with
Q: May a party be legally represented the same court, in which case, the court
by a foreign lawyer in shall proceed
mediation proceedings? summarily to hear the petition, in
A: (Please refer to International accordance with such rules
Commercial Arbitration of procedure as may be promulgated by
regarding legal representation by a party) the Supreme Court.
PLACE OF MEDIATION Settlement agreement to be treated
Q: Where should the Mediation be as an arbitral award
held? and the mediator acting as arbitrator
A: The parties are free to agree on the
place of mediation. Q: Can the settlement agreement be
Failing such agreement, the place of treated as an arbitral
mediation shall be any award? How?
place convenient and appropriate to all A: The parties may agree in the
parties. settlement agreement that
ENFORCEMENT OF MEDIATED the mediator shall become a sole
SETTLEMENT AGREEMENT arbitrator for the dispute
Q: How is a mediated settlement and shall treat the settlement agreement
agreement prepared? as an arbitral award
A: A settlement agreement following which shall be subject to enforcement
successful mediation under Republic Act No.
shall be prepared by the parties with the 876, otherwise known as the Arbitration
assistance of their Law.
respective counsel, if any, and by the ARBITRATION
mediator.
Q: What are the elements of negotiations.
arbitration? The arbitrator acts as an outof-
A: The elements or arbitration are: court judge and settles the
a. The parties have mutually agreed to dispute extra-judicially.
submit their He makes a determination of
dispute to selected persons whose the facts to resolve a dispute
determination is independently of the actual
to be accepted as a substitute for the result desired by the parties.
judgment of a As to resolution
court; There is only mediation
b. There is an actual dispute or matter in settlement. As a rule a
controversy; mediator cannot make an
and award but the mediation
c. The dispute or matter in controversy is settlement can be an award
capable of provided that it is reduced
being referred to arbitration. into writing signed by the
parties and their counsel and
Q: How may the consent of the the mediator.
parties to arbitrate their Failure to comply with such
dispute be expressed? mediation settlement will
A: The parties may SUBMIT to arbitration give the right to the parties
any controversy to go to court for the
existing between them at the time of the enforcement of that
submission and mediation settlement.
which may be the subject of an action. There is an arbitral award
Also, the parties to any contract may in Appointment of ADR Practitioners
such CONTRACT Appointed by the court Appointed by the
agree to settle by arbitration a parties if
controversy thereafter arising there is an agreement that
between them. only one arbitrator shall
settle their dispute.
Q: Distinguish an arbitrator from a But in case where the parties
mediator. agrees to appoint each
A: An arbitrator acts as an out of court arbitrator of their own
judge and settles choice, then the 2 appointed
disputes extra-judicially. A mediator does arbitrator will appoint a 3rd
not render an arbitrator
award but only arranges the facts to be As to number of ADR practitioners
negotiated so parties Only 1 1-3 arbitrators
can come to a compromise agreement. As to intervention of court
There is no need for
Q: Distinguish arbitration from confirmation of court
mediation. There is a need for the court
A: to confirm the arbitral award
MEDIATION ARBITRATION NOTES ON ALTERNATIVE DISPUTE
As to function RESOLUTION
Does not render an award INTERNATIONAL COMMERCIAL
but only arranges the facts to ARBITRATION
be negotiated so that the Adoption of the Model Law on
parties can come to a International Commercial
compromise agreement. Arbitration
He assists the parties in Q: What is the governing law with
reaching a mutually regard to International
agreeable settlement of their Commercial Arbitration?
dispute through direct
A: International commercial arbitration Philippines, a party may be presented by
shall be governed by any person of his
the Model Law on International choice. Provided, that such
Commercial Arbitration (the representative, unless admitted
"Model Law") adopted by the United to the practice of law in the
Nations Commission on Philippines, shall not be
International Trade Law on June 21, authorized to appear as counsel in
1985. any Philippine court, or
COMMERCIAL ARBITRATION any other quasi-judicial body whether
Q: When is an arbitration considered or not such
as commercial? appearance is in relation to the arbitration
A: An arbitration is "commercial" if it in which he
covers matters arising appears.
from all relationships of a commercial CONFIDENTIALITY OF ARBITRATION
nature, whether PROCEEDINGS
contractual or not. (Applicable also in Domestic
Arbitration)
Q: What are the matters or Q: What is covered by the
transactions considered as confidentiality rule in arbitration
commercial? proceedings? May the records of
A: Relationships of a transactions include: arbitration proceedings be
a. any trade transaction for the supply or published?
exchange of A:
goods or services; GR: The arbitration proceedings,
b. distribution agreements; including the records,
c. construction of works; evidence and the arbitral award, shall
d. commercial representation or agency; be considered
e. factoring; confidential and shall not be published.
f. leasing, consulting; XPN:
g. engineering; (1) with the consent of the parties, or
h. licensing; (2) for the limited purpose of disclosing to
i. investment; the
j. financing; court of relevant documents in cases
k. banking; where
l. insurance; resort to the court is allowed herein.
m. joint venture and other forms of
industrial or Q: Can the court in which the action
business cooperation; or the appeal is pending
n. carriage of goods or passengers by air, issue a protective order or prohibit
sea, rail or disclosure or
road. information?
LEGAL REPRESENTATION IN A: Yes. The court in which the action or
INTERNATIONAL ARBITRATION the appeal is pending
(Applicable also in Domestic may issue a protective order to prevent or
Arbitration) prohibit disclosure
Q: Give the rule with regard to the of documents or information containing
representation of a party secret processes,
in international (as well as in developments, research and other
mediation and domestic) information where it is
arbitration? May an alien represent a shown that the applicant shall be
party in international materially prejudiced by an
arbitration conducted in the authorized disclosure thereof.
Philippines? REFERRAL TO ARBITRATION
A: Yes. In international arbitration (Applicable also in Domestic
conducted in the Arbitration)
Q: When should the court refer the request for interim measure of
parties to arbitration? protection be made?
A: A court before which an action is A: It is not incompatible with an
brought in a matter arbitration agreement for a
which is the subject matter of an party to request:
arbitration agreement shall: a. Before constitution of the tribunal,
a. If at least one party so requests not from a Court an
later that the interim measure of protection and for the
pre-trial conference; or Court to
b. Upon the request of both parties grant such measure.
thereafter b. After constitution of the arbitral
refer the parties to arbitration unless it tribunal and
finds that the during arbitral proceedings, a request
arbitration agreement is: for an interim
a. null and void; measure of protection or modification
b. inoperative; or thereof, may
c. incapable of being performed be made with the arbitral tribunal or to the
extent
Q: May the courts dismiss the action that the arbitral tribunal has no power to
for arbitration motu act or is
proprio? unable to act effectively, the request may
A: Yes, as a general rule, a court before be made
which an action is with the Court.
brought in a matter which si the subject of
an arbitration Q: In what instances may an interim
agreement shall, if a party so requests, measure of protection
refer the parties to be allowed?
arbitration. However, courts may dismiss A: An interim measure of protection may
an action for be granted if
arbitration motu proprio if it finds that the necessary:
arbitration i. to prevent irreparable loss or injury:
agreement is null and voud, inoperative or ii. to provide security for the performance
incapable of being of any
performed. obligation;
CONSTITUTION OF THE ARBITRAL iii. to produce or preserve any evidence;
TRIBUNAL or
Q: When is the arbitral tribunal iv. to compel any other appropriate act or
deemed constituted? omission.
A: The arbitral tribunal is deemed
constituted when the sole Q: How should the application for
arbitrator or the third arbitrator who has interim or provisional
been nominated, relief be made? What is the form of
has accepted the nomination and written such application?
communication of A: Interim or provisional relief is
said nomination and acceptance has been requested by written
received by the application transmitted by reasonable
party making request. means to the Court or
GRANT OF INTERIM MEASURE OF arbitral tribunal as the case may be.
PROTECTION
(Applicable also in Domestic Q: What should be stated in the
Arbitration) application?
Q: May the parties request for interim A: It shall state the following facts:
measure of a. the party against whom the relief is
protection in arbitral proceedings? sought;
Where should the
b. describing in appropriate detail the hearing witnesses, experts, or the parties,
precise relief; or for
c. the party against whom the relief is inspection of goods, other property or
requested; documents.
d. the grounds for the relief; and LANGUAGE OF THE ARBITRATION
e. evidence supporting the request. Q: What is the language to be used in
NOTE: The order shall be binding upon arbitration
the parties. proceedings?
A: The parties are free to agree on the
Q: What is the effect if a party does language or languages
not comply with the to be used in the arbitral proceedings.
order for interim or provisional relief? Failing such
A: A party who does not comply with the agreement:
order shall be liable a. the language to be used shall be
for all damages resulting from English in
noncompliance, including all international arbitration; and
expenses, and reasonable attorney's fees, b. English or Filipino for domestic
paid in obtaining arbitration, unless
the order's judicial enforcement. the arbitral tribunal shall determine a
different or
Q: What are the interim measures of another language or languages to be used
protection available to in the
the parties in an arbitration proceedings.
proceeding? This agreement or determination, unless
A: Such interim measures may include but otherwise specified
shall not be limited therein, shall apply to any written
to: statement by a party, any
a. preliminary injuction directed against a hearing and any award, decision or other
party; communication by
b. appointment of receivers or detention; the arbitral tribunal.
c. preservation, inspection of property that The arbitral tribunal may order that any
is the documentary
subject of the dispute in arbitration. evidence shall be accompanied by a
PLACE OF ARBITRATION translation into the
Q: Where should the arbitration be language or languages agreed upon by
conducted? the parties.
A: The parties are free to agree on the DOMESTIC ARBITRATION
place of arbitration. Q: What is the law governing
Failing such agreement: domestic arbitration?
a. The place of arbitration shall be in A: Domestic arbitration shall continue to
Metro Manila, be governed by
unless the arbitral tribunal, having regard Republic Act No. 876, otherwise known as
to the "The Arbitration
circumstances of the case, including the Law.
convenience ARBITRATION OF CONSTRUCTION
of the parties shall decide on a different DISPUTES
place of Q: What is the law governing
arbitration. arbitration of construction
b. The arbitral tribunal may, unless disputes?
otherwise agreed A: The arbitration of construction disputes
by the parties, meet at any place it shall be governed
considers by Executive Order No. 1008, otherwise
appropriate for consultation among its known as the
members, for Constitution Industry Arbitration Law.
Q: What is the coverage of EO No. the international party; or he/she is the
1008? common
A: Construction disputes which fall within choice of the two CIAC-accredited
the original and arbitrators first
exclusive jurisdiction of the Construction appointed one of whom was nominated by
Industry Arbitration the
Commission (the "Commission") shall international party; and
include those between (d) the foreign arbitrator shall be of
or among parties to, or who are otherwise different nationality
bound by, an from the international party.
arbitration agreement, directly or by
reference whether such Q: What is the effect if the dispute is
parties are: filed in the RTC?
a. project owner A: A regional trial court which a
b. contractor construction dispute is filed
c. subcontractor shall, upon becoming aware, not later than
d. quantity surveyor the pretrial
e. bondsman or issuer of an insurance conference, that the parties had entered
policy in a into an arbitration
construction project. to be conducted by the CIAC, unless both
parties, assisted by
Q: May an arbitrator act as mediator their respective counsel, shall submit to
and a mediator act as the regional trial
arbitrator? court a written agreement exclusive for
A: Yes. By written agreement of the the Court, rather
parties to a dispute, an than the CIAC, to resolve the dispute.
arbitrator may act as mediator and a Foreign Arbitral Award Not Foreign
mediator may act as Judgment
arbitrator. The parties may also agree in A foreign arbitral award when confirmed
writing that, by a court of a
following a successful mediation, the foreign country, shall be recognized and
mediator shall issue the enforced as a foreign
settlement agreement in the form of an arbitral award and not a judgment of a
arbitral award. foreign court.
A foreign arbitral award, when confirmed
Q: Under what instances can a by the regional trial
foreign arbitrator or coarbitrator court, shall be enforced as a foreign
be appointed? arbitral award and not as
A: The Construction Industry Arbitration a judgment of a foreign court.
Commission (CIAC) A foreign arbitral award, when confirmed
shall promulgate rules to allow for the by the regional trial
appointment of a court, shall be enforced in the same
foreign arbitrator or coarbitrator or manner as final and
chairman of a tribunal a executory decisions of courts of law of the
person who has not been previously Philippines.
accredited by CIAC: NOTES ON ALTERNATIVE DISPUTE
Provided, That: RESOLUTION
(a) the dispute is a construction dispute in Appeal from Court Decisions on
which one Arbitral Awards
party is an international party A decision of the regional trial court
(b) the person to be appointed agreed to confirming, vacating,
abide by the setting aside, modifying or correcting an
arbitration rules and policies of CIAC; arbitral award may
(c) he/she is either coarbitrator upon the be appealed to the Court of Appeals in
nomination of accordance with the
rules of procedure to be promulgated by A: Two or more persons or parties may
the Supreme Court. submit to the
arbitration of one or more arbitrators:
Q: Where should the recognition and a. Any controversy existing between them
enforcement of an at the time
arbitration agreement or for of the submission and which may be the
vacation, setting aside, subject of
correction or modification of an an action (submission clause); or
arbitral award should be b. The parties to any contract may in such
made? contract
A: It shall be filled with the regional trial agree to settle by arbitration a
court: controversy
(a) where arbitration proceedings are thereafter arising between them
conducted; (arbitration
(b) where the asset to be attached or clause).
levied upon, or
the act to be enjoined is located; Q: Distinguish arbitration clause from
(c) where any of the parties to the dispute submission clause.
resides or A:
has his place of business; or ARBITRATION CLAUSE SUBMISSION
(d) in the National Judicial Capital Region, CLAUSE
at the option A clause in the contract
of the applicant. which says that in event of a
future dispute between the
Q: When should the notice of parties, such dispute shall be
proceeding to parties be submitted to arbitration.
made? When the contract is brought
A: In a special proceeding for recognition to court, a party may request
and enforcement of the court to suspend the
an arbitral award, the Court shall send proceedings and bring it to
notice to the parties at arbitration and the award of
their address of record in the arbitration, arbitrator would then be
or if any party brought to court for
cannot be served notice at such address, recognition and execution
at such party's last It is an agreement in writing
known address. The notice shall be sent and subscribed by the
at least fifteen (15) parties, and entered into if
days before the date set for the they already have a present
initial hearing of the dispute and there is no
application. arbitration clause in their
REPUBLIC ACT NO. 876 contract.
AN ACT TO AUTHORIZE THE MAKING Such admission for
OF ARBITRATION AND arbitration is deemed a
SUBMISSION AGREEMENTS, TO consent of the parties to the
PROVIDE FOR THE jurisdiction of the RTC of the
APPOINTMENT OF ARBITRATORS AND province or city where any of
THE PROCEDURE FOR the parties reside, to enforce
ARBITRATION IN CIVIL such contract or submission.
CONTROVERSIES, AND FOR OTHER NOTE: Such submission or contract shall
PURPOSES be valid, enforceable
Persons and matters subject to and irrevocable, save upon such grounds
arbitration as exist at law for
Q: Under what instances may the the revocation of any contract.
party submit to
arbitration?
Q: What are the advantages of Single Arbitrator
arbitration? In the event that the contract between the
A: parties provides
1. The availability of experts on technical for the appointment of a single
matters involved arbitrator, the demand shall
in a dispute. There is an expert be set forth a specific time within which
determination of the the parties shall
questions of fact involved. agree upon such arbitrator.
2. Speedier process of arbitration in Three arbitrators
resolving a case If the contract between the parties
3. Less expenses on the part of the parties provides for the
4. Trade contracts or relationship between appointment of three arbitrators, one to
the parties are be selected by each
not ruptured by arbitration party, the demand shall:
5. Privacy is attained in arbitration 1. name the arbitrator appointed by the
6. Filial or friendly atmosphere party making
7. Flexibility of proceedings—arbitral the demand and;
proceedings are not 2. shall require that the party upon whom
bound by the strict rules of evidence the demand
is made shall within fifteen days after
Q: What is the form of arbitration receipt
agreement? thereof advise in writing the party
A: A contract to arbitrate a controversy making such
thereafter arising demand of the name of the person
between the parties, as well as a appointed by
submission to arbitrate an the second party;
existing controversy shall be in writing 3. such notice shall require that the two
and subscribed by the arbitrators so
party sought to be charged, or by his appointed must agree upon the third
lawful agent. arbitrator
within ten days from the date of such
Q: How should the arbitration be notice.
instituted? Q: If a party defaults in answering the
A: An arbitration shall be instituted by: demand, what is the
Submission of future controversy remedy of the aggrieved party?
a) In the case of a contract to arbitrate A:
future b) In the event that one party defaults in
controversies by the service by either answering the
party upon demand, the aggrieved party may file
the other of a demand for arbitration with the Clerk
in accordance of the Court of First Instance having
with the contract. jurisdiction
over the parties, a copy of the
Q: What should the demand set demand for
forth? arbitration under the contract to
A: Such demand shall be set forth: arbitrate, with a
1. the nature of the controversy; notice that the original demand was sent
2. the amount involved, if any; and by
3. the relief sought, together with a true registered mail or delivered in person to
copy of the party
the contract providing for arbitration. against whom the claim is asserted.
NOTE: The demand shall be served upon Submission of an existing controversy
any party either in c) by the filing with the Clerk of the
person or by registered mail. Court of First
Appointment of Arbitrator
Instance having jurisdiction, of the accordance with the terms of the
submission agreement.
agreement, setting forth the nature of Appointment of arbitrators
the Q: How should the appointment of
controversy, and the amount involved, if arbitrators be made?
any. Such A:
submission may be filed by any party and 1. in accordance with the method of
shall be naming or
duly executed by both parties. appointing the arbitrators/s described in
Hearing by Court the
Q: In case of failure, neglect or contract for arbitration or in the
refusal of another to comply submission
with the said agreement, what can contract;
the aggrieved party do? 2. but if no method be provided therein
A: He may petition the court for an the Court of
order directing that such First Instance shall designate an arbitrator
arbitration proceed in the manner or
provided for in such arbitrators.
agreement.
NOTE: Five days notice in writing of the Q: Under what circumstances can the
hearing of such CFI appoint an
application shall be served either arbitrator or arbitrators?
personally or by registered A:
mail upon the party in default. a) If the parties to the contract or
If the finding be that no agreement in submission are
writing providing for unable to agree upon a single arbitrator;
arbitration was made, or that there is no or
default in the b) If an arbitrator appointed by the parties
proceeding thereunder, the proceeding is unwilling
shall be dismissed. If or unable to serve, and his successor has
the finding be that a written provision for not been
arbitration was appointed in the manner in which he was
made and there is a default in proceeding appointed;
thereunder, an or
order shall be made summarily directing c) If either party to the contract fails or
the parties to refuses to
proceed with the arbitration in accordance name his arbitrator within fifteen days
with the terms after receipt
thereof. of the demand for arbitration; or
Stay of civil action d) If the arbitrators appointed by each
Q: What is the effect to the court party to the
proceeding if any suit or contract, or appointed by one party to the
proceeding is brought upon an issue contract
arising out of an and by the proper Court, shall fail to agree
agreement providing for the upon or
arbitration thereof? to select the third arbitrator.
A: In such case, the court in which such NOTE: The court shall, in its discretion
suit or proceeding is appoint one or three
pending, upon being satisfied that the arbitrators, according to the
issue involved in such importance of the controversy
suit or proceeding is referable to involved in any of the preceding cases in
arbitration, shall stay the which the
action or proceeding until an agreement is silent as to the number of
arbitration has been had in arbitrators.
Q: Can the arbitrators appointed NOTE: No party shall select as an
decline? How should the arbitrator any person to act
vacancy be filled? as his champion or to advocate his cause.
A: Arbitrators appointed under this section
shall either accept Q: According to Dr. Palacios, what are
or decline their appointments within seven the qualities to
days of the consider in appointing an arbitrator?
receipt of their appointments. In case of A:
declination or the 1. Persuasiveness, ability to convey ideas,
failure of an arbitrator or arbitrators to knowledge;
duly accept their 2. Ability to fully adopt the position of his
appointments the parties or the court, as party;
the case may be, 3. Ability to convince other party to accept
shall proceed to appoint a substitute or their
substitutes for the position;
arbitrator or arbitrators who decline or 4. Party should be fully convinced that his
failed to accept his or arbitrator
their appointments. works for him/her; and
Appointment of additional arbitrators 5. Sense of equity, fairness, and justice
Where a submission or contract provides Discovery of any circumstances that
that two or more may disqualify the
arbitrators therein designated or to be arbitrator
thereafter appointed If, after appointment but before or during
by the parties, may select or appoint a hearing, a person
person as an appointed to serve as an arbitrator shall
additional arbitrator, the selection or discover:
appointment must be in a. any circumstances likely to create a
writing. Such additional arbitrator must sit presumption of
with the original bias, or
arbitrators upon the hearing. b. which he believes might disqualify him
Qualifications of arbitrators as an
Q: What are the qualifications of the impartial arbitrator
arbitrators to be the arbitrator shall immediately disclose
appointed? such information to
A: Any person appointed to serve as an the parties. Thereafter the parties may
arbitrator: agree in writing:
a. must be of legal age; a. to waive the presumptive disqualifying
b. in full-enjoyment of his civil rights; and circumstances; or
c. know how to read and write. b. to declare the office of such arbitrator
d. No person appointed to served as an vacant. Any
arbitrator shall such vacancy shall be filled in the same
be related by blood or marriage within the manner as
sixth the original appointment was made.
degree to either party to the controversy. Challenge of arbitrators
e. No person shall serve as an arbitrator in Q: Under what reasons may the
any arbitrators be challenged
proceeding if he has or has had financial, (vis-à-vis their qualification)? When
fiduciary or may the appointment of
other interest in the controversy or cause the arbitrators be challenged?
to be A: An arbitrator maybe be challenged only
decided or in the result of the proceeding, if circumstances
or has any exist that give rise to justifiable doubts as
personal bias, which might prejudice the to his impartiality
right of any or independence or if he does not possess
party to a fair and impartial award. qualifications
agreed to by the parties. A party may sustained but if the parties
challenge an arbitrator objected to it, his action will
appointed by him, or in whose be withdrawn
appointment he has one who is legally appointed
participated, only for reasons of which he by the parties
becomes aware Procedure by the arbitrators
after the appointment has been made. Subject to the terms of the submission or
The arbitrators may be challenged only for contract, if any are
the reasons specified therein, are arbitrators selected
mentioned above which may have arisen as prescribed
after the arbitration herein must:
agreement or were unknown at the time a. within five days after appointment if
of arbitration. the parties to
the controversy reside within the
Q: Where should the challenge be same city or
made? Should it be with province, or
the arbitral tribunal or with the RTC? b. within fifteen days after
A: The challenge shall be made before appointment if the parties
them. If they do not reside in different provinces,
yield to the challenge, the challenging set a time and place for the hearing of the
party may renew the matters submitted
challenge before the Court of First to them, and must cause notice thereof to
Instance of the province or be given to each of
city in which the challenged arbitrator, or, the parties.
any of them, if
there be more than one, resides. Q: Can the hearing be postponed or
adjourned?
Q: What is the effect of the A: Yes. The hearing can be postponed or
challenging incident to the adjourned by the
arbitral proceedings? arbitrators only by agreement of the
A: While the challenging incident is parties; otherwise,
discussed before the adjournment may be ordered by the
court, the hearing or arbitration shall arbitrators upon their
be suspended, and it own motion only at the hearing and for
shall be continued immediately after the good and sufficient
court has delivered cause.
an order on the challenging incident. NOTE: No adjournment shall extend the
hearing beyond the
Q: What is the consequence of the day fixed in the submission or contract for
arbitrator’s nonperformance rendering the
of his functions? award, unless the time so fixed is
A: His mandate terminates. The parties extended by the written
may request for his agreement of the parties to the
termination. submission or contract or
their attorneys, or unless the parties have
Q: Distinguish de facto from de jure continued with the
arbitrator. arbitration without objection to such
A: adjournment.
A person who took over the
arbitration proceedings as Q: What is the effect of the absence
arbitrator without an express of any party to the
consent of the parties. hearing?
If without objection by the A: The hearing may proceed in the
parties, the actions of the de absence of any party who,
facto arbitrator will be
after due notice, fails to be present at testimony of any other witness;
such hearing or fails to d. To take measures to safeguard and/or
obtain an adjournment thereof. conserve any
matter which is the subject of the dispute
Q: Can an award be made solely on in
default of a party? arbitration;
A: No. An award shall not be made solely e. To render a fair, reasonable and
on the default of a impartial award;
party. The arbitrators shall require the f. To accept pleadings; and
other party to submit g. To admit evidence
such evidence as they may require for NOTE: All of the arbitrators appointed in
making an award. any controversy
must attend all the hearings in that matter
Q: Who can represent a party to and hear all the
arbitration? allegations and proofs of the parties; but
A: No one other than a party to said an award by the
arbitration, or a person majority of them is valid unless the
in the regular employ of such party concurrence of all of
duly authorized in them is expressly required in the
writing by said party, or a practicing submission or contract to
attorney-at-law, shall arbitrate.
be permitted by the arbitrators to Hearing by the arbitrators
represent before him or Arbitrators may, at the commencement of
them any party to the arbitration. the hearing, ask
NOTE: Any party desiring to be both parties for brief statements of the
represented by counsel shall issues in controversy
notify the other party or parties of such and/or an agreed statement of facts.
intention at least five Thereafter the parties
days prior to the hearing. may offer such evidence as they desire,
and shall produce
Q: Who can attend the arbitration such additional evidence as the arbitrators
proceedings? shall require or
A: Persons having a direct interest in the deem necessary to an understanding and
controversy which is determination of
the subject of arbitration shall have the the dispute.
right to attend any
hearing; but the attendance of any other Q: In hearing the parties and
person shall be at admitting their evidence, is the
the discretion of the arbitrators. tribunal bound by the Rules of
NOTES ON ALTERNATIVE DISPUTE Evidence?
RESOLUTIONPowers of an arbitrator A: The arbitrators shall be the sole judge
Q: What are the powers of an of the relevancy and
arbitrator? materiality of the evidence offered or
A: The following are the powers of produced, and shall not
arbitrators: be bound to conform to the Rules of Court
a. To require any person to attend a pertaining to
hearing as a evidence.
witness; Arbitrators shall receive as exhibits in
b. To subpoena witnesses and documents evidence any document
when the which the parties may wish to submit and
relevancy of the testimony and the the exhibits shall
materiality be properly identified at the time of
thereof has been demonstrated; submission.
c. To require the retirement of any witness
during the
Q: Who shall take possession or the award is made, a copy signed by the
custody of the evidence arbitrators shall be
submitted by the parties? delivered to each party.
A: All exhibits shall remain in the custody NOTE: In the event that the parties to an
of the Clerk of Court arbitration have,
during the course of the arbitration and during the course of such arbitration,
shall be returned to settled their dispute,
the parties at the time the award is made. they may request of the arbitrators that
NOTE: The arbitrators may make an such settlement be
ocular inspection of any embodied in an award which shall be
matter or premises which are in dispute, signed by the
but such inspection arbitrators.
shall be made only in the presence of all
parties to the Q: Can the arbitrator act as a
arbitration, unless any party who shall mediator in an arbitration
have received notice proceeding?
thereof fails to appear, in which event A: No. No arbitrator shall act as a
such inspection shall mediator in any proceeding
be made in the absence of such party. in which he is acting as arbitrator.
Time for rendering award Accordingly, unlike a mediator, arbitrators
Unless the parties shall have stipulated by have the power
written agreement and authority to render an arbitral award.
the time within which the arbitrators must
render their Q: How may an arbitral award be
award, the written award of the arbitrators confirmed?
shall be rendered A: At any time within one month after the
within thirty days after the closing of award is made, any
the hearings or if the party to the controversy which was
oral hearings shall have been waived, arbitrated may apply to
within thirty days the court having jurisdiction, as provided
after the arbitrators shall have in section twentyeight,
declared such proceedings in for an order confirming the award. The
lieu of hearing closed. This period may court must
be extended by grant such order unless the award is
mutual consent of the parties. vacated, modified or
Form and contents of award corrected, as prescribed herein. Notice of
Q: What should be the form and such motion must
contents of an arbitral be served upon the adverse party or his
award? attorney. A domestic
A: The arbitral award shall be made in arbitral award shall be enforced in the
writing and shall be same manner as final
signed by the arbitrator or arbitrators. In and executory decisions of the RTC.
arbitral proceedings Vacating an award
with more than one arbitrator, the Q: What are the grounds for vacating
signatures of the majority award?
of all members of the arbitral tribunal shall A: In any one of the following cases, the
suffice, provided court must make an
that the reason for any omitted signature order vacating the award upon the
is stated. The petition of any party to
award shall state the reasons upon which the controversy when such party proves
it is based, unless affirmatively that in
the parties have agreed that no reasons the arbitration proceedings:
are to be given. The a. The award was procured by corruption,
award shall state its date and the place or fraud, or
arbitration. After other undue means; or
b. That there was evident partiality or had been a commissioner's report, the
corruption in the defect could
arbitrators or any of them; have been amended or disregarded by the
c. That the arbitrators were guilty of court.
misconduct in Section 28. Papers to accompany motion
refusing to postpone the hearing upon to confirm, modify,
sufficient correct, or vacate award. - The party
cause shown, or in refusing to hear moving for an order
evidence confirming, modifying, correcting, or
pertinent and material to the controversy; vacating an award, shall
d. that one or more of the arbitrators was at the time that such motion is filed with
disqualified the court for the
to act as such under section nine hereof, entry of judgment thereon also file the
and wilfully following papers with
refrained from disclosing such the Clerk of Court;
disqualifications or of (a) The submission, or contract to
any other misbehavior by which the rights arbitrate; the
of any appointment of the arbitrator or
party have been materially prejudiced; arbitrators; and
e. That the arbitrators exceeded their each written extension of the time, if any,
powers, or so within
imperfectly executed them, that a mutual, which to make the award.
final and (b) A verified of the award.
definite award upon the subject matter (c) Each notice, affidavit, or other paper
submitted to used upon
them was not made. the application to confirm, modify, correct
Modifying or correcting an award or vacate
Q: What are the grounds for such award, and a copy of each of the
modifying or correcting an court upon
award? such application.
A: In any one of the following cases, the Appeal
court must make an An appeal may be taken from an order
order modifying or correcting the award, made in a proceeding
upon the under this Act, or from a judgment
application of any party to the controversy entered upon an award
which was through certiorari proceedings, but such
arbitrated: appeals shall be
a. Where there was an evident limited to questions of law.
miscalculation of
figures, or an evident mistake in the Q: What are the remedies of the
description of aggrieved party against an
any person, thing or property referred to arbitral award?
in the A: Under Article 2044 of the New Civil
award; or Code, the validity of
b. Where the arbitrators have awarded any stipulation on the finality of the
upon a matter arbitrators’ award or
not submitted to them, not affecting the decision is recognized. However, where
merits of the conditions
the decision upon the matter submitted; described in Articles 2038, 2039, and 2040
or applicable to both
c. Where the award is imperfect in a compromises and arbitrations are
matter of form obtaining, the arbitrators’
not affecting the merits of the award may be annulled or rescinded.
controversy, and if it Consequently, the decision of the
Arbitration Committee is
subject to judicial review. The proper A: When a person is approached in
recourse of the connection with his
petitioner from the denial of its motion for possible appointment as an arbitrator, he
reconsideration shall disclose any
by the Arbitration Committee is to file circumstances likely to give rise to
either: justifiable doubts as to his
a. a motion to vacate the arbitral award impartiality or independence. An
with the RTC; arbitrator, from the time of
b. a petition for review with the Court of his appointment and throughout the
Appeals under arbitral proceedings,
Rule 43 of the Rules of Court; or shall without delay disclose any such
c. a petition for certiorari under Rule 65 of circumstances to the
the Rules of parties unless they have already been
Court. informed of them by
The RTC will only have jurisdiction over an him.
arbitral award in An arbitrator may be challenged only if
cases of motions to vacate the same. circumstances exist
Otherwise, as that give rise to justifiable doubts as to his
elucidated herein, the Court of Appeals impartiality or
retains jurisdiction in independence, or if he does not possess
petitions for review or in petitions for qualifications agreed
certiorari (Insular to by the parties. A party may challenge
Savings Bank vs. Far East Bank and Trust an arbitrator
Company, 492 SCRA appointed by him, or in whose
145, 22 June 2006). appointment he has
NOTES ON ALTERNATIVE DISPUTE participated, only for reasons of which he
RESOLUTIONUNCITRAL Model Law on becomes aware
International Commercial after the appointment has been made
Arbitration (Article 12 of
Q: What is commercial arbitration? UNCITRAL).
A: It covers matters arising from all
relationships of a Q: What is the form and contents of
commercial nature, whether contractual or an arbitral award under
not. Relationships the Model Law (see Sec. 20 of R.A.
of a commercial nature include, but are 876)?
not limited to, the A: The award shall be made in writing and
following transactions: any trade shall be signed by
transaction for the supply or the arbitrator or arbitrators. In arbitral
exchange of goods or services; proceedings with
distribution agreement; more than one arbitrator, the signatures of
commercial representation or agency; the majority of all
factoring; leasing; members of the arbitral tribunal shall
construction of works; consulting; suffice, provided that
engineering; licensing; the reason for any omitted signature is
investment; financing; banking; insurance; stated. The award
exploitation shall state the reasons upon which it is
agreement or concession; joint venture based, unless the
and other forms of parties have agreed that no reasons are to
industrial or business cooperation; be given. The
carriage of goods or award shall state its date and the place of
passengers by air, sea, rail or road. arbitration. The
award shall be deemed to have been
Q: When may the appointment of an made at that place.
arbitrator be After the award is made, a copy signed by
challenged? (see Sect. 11 of R.A. 876) the arbitrators
shall be delivered to each party (Article 31 proceedings are conducted; (ii) where the
of the Model Law). asset to be
attached or levied upon, or the act to be
Q: Can a foreign award be enforced in enjoined is located;
the Philippines under (iii) where any of the parties to the dispute
the Rules of Court on the recognition resides or has his
and enforcement place of business; or (iv) in the National
judgment? Judicial Capital
A: No. foreign arbitral awards are not like Region, at the option of the applicant
foreign court (Section 47 of R.A.
judgments. They may be enforced under 9285).
Sec. 44 of R.A 9285: Grounds for refusing recognition or
A foreign arbitral award when confirmed enforcement
by a court of a Q: When may a foreign award be
foreign country, shall be recognized and refused recognition and
enforced as a foreign enforcement in our jurisdiction?
arbitral award and not a judgment of a A:
foreign court. 1. At the request of the party against
A foreign arbitral award, when confirmed whom it is
by the regional trial invoked, if that party furnishes to the
court, shall be enforced as a foreign competent
arbitral award and not as court where recognition or enforcement is
a judgment of a foreign court. sought
A foreign arbitral award, when confirmed proof that:
by the regional trial a. a party to the arbitration agreement
court, shall be enforced in the same referred to in
manner as final and article 7 was under some incapacity; or
executory decisions of courts of law of the the said
Philippines. agreement is not valid under the law to
NOTE: If the recognition and enforcement which the
of foreign awards parties have subjected it or, failing any
not covered by the New York Convention, indication
courts, may, on the thereon, under the law of the country
grounds of comity and reciprocity, where the
recognize and enforce a award was made; or
non-convention award as a convention b. the party against whom the award is
award. invoked was
not given proper notice of the
Q: What is the nature of the action appointment of an
for recognition and arbitrator or of the arbitral proceedings or
enforcement of a foreign award? was
Where should it be filed? otherwise unable to present his case; or
A: Proceedings for recognition and c. the award deals with a dispute not
enforcement of an contemplated by
arbitration agreement or for vacation, or not falling within the terms of the
setting aside, submission to
correction or modification of an arbitral arbitration, or it contains decisions on
award, and any matters
application with a court for arbitration beyond the scope of the submission to
assistance and arbitration,
supervision shall be deemed as special provided that, if the decisions on matters
proceedings and shall submitted
be filled with the regional trial court (i) to arbitration can be separated from those
where arbitration not so
submitted, that part of the award which and promote a healthy partnership
contains between the government
decisions on matters submitted to and the private sector in the
arbitration may furtherance of national
be recognized and enforced; or development goals;
d. the composition of the arbitral tribunal WHEREAS, Presidential Decree No. 1746
or the created the
arbitral procedure was not in accordance Construction Industry Authority of the
with the Philippine (CIAP) to
agreement of the parties or, failing such exercise centralized authority for the
agreement, optimum development
was not in accordance with the law of the of the construction industry and to
country enhance the growth of
where the arbitration took place; or the the local construction industry;
award has WHEREAS, among the implementing
not yet become binding on the parties or agencies of the CIAP is
has been the Philippine Domestic Construction
set aside or suspended by a court of the Board (PDCB) which is
country in specifically authorized by Presidential
which, or under the law of which, that Decree No. 1746 to
award was "adjudicate and settle claims and disputes
made; or in the
2. If the court finds that: implementation of public and private
a. the subject-matter of the dispute is not construction contracts
capable of and for this purpose, formulate and adopt
settlement by arbitration under the law of the necessary rules
this State; and regulations subject to the approval of
or the President";
b. the recognition or enforcement of the Policy of the state
award would Sec. 1. Title. This Executive Order
be contrary to the public policy of this shall be known as the
State (Article "Construction Industry Arbitration
36 of UNCITRAL Law). Law".
EXECUTIVE ORDER NO. 1008 Q: What is the policy of the law
CREATING AN ARBITRATION regarding the Philippine
MACHINERY IN THE construction industry?
CONSTRUCTION INDUSTRY OF THE A:
PHILIPPINES Sec. 2. Declaration of Policy. It is
February 4, 1985 hereby declared to be the
WHEREAS, the construction industry policy of the State to encourage the
provides employment to early and expeditious
a large segment of the national labor settlement of disputes in the
force and is a leading Philippine construction
contributor to the gross national industry.
product; Creation of the Construction Industry
WHEREAS, it is of vital necessity that Arbitration
continued growth Commission (CIAC)
towards national goals shall not be Q: Which body has administrative
hindered by problems supervision of the CIAC?
arising from, or connected with, the A: The CIAC shall be under the
construction industry; administrative supervision of
WHEREAS, there is a need to establish an the Philippine Domestic Construction
arbitral machinery Board (PDCB).
to settle to such disputes Sec. 3. Creation. There is hereby
expeditiously in order to maintain established in the CIAP a
body to be known as the Construction A: Excluded from the coverage of this law
Industry Arbitration are disputes arising
Commission (CIAC). The CIAC shall be from employer-employee relationships
under the which shall continue
administrative supervision of the to be covered by the Labor Code of the
Philippine Domestic Philippines.
Construction Board (PDCB). Composition and functions of the
Jurisdiction of the CIAC CIAC
Q: State the jurisdiction of the CIAC. Q: Discuss the composition of the
A: CIAC?
Sec. 4. Jurisdiction. The CIAC shall have A:
original and exclusive Sec. 5. Composition of the Board. The
jurisdiction over disputes arising from, or Commission shall
connected with, consist of:
contracts entered into by parties involved a. a Chairman and
in construction in b. two (2) members, all to be appointed by
the Philippines: the CIAP
a. whether the dispute arises before or Board upon recommendation by the
b. after the completion of the contract, or members of the
c. after the abandonment or breach PDCB.
thereof.
d. These disputes may involve Q: What are the functions of the
government or CIAC?
e. private contracts A:
NOTES ON ALTERNATIVE DISPUTE Sec. 6. Functions of the Commission.
RESOLUTION The Commission shall
Q: What is the requisite for the CIAC perform, among others that may be
to acquire jurisdiction? conferred by law, the
A: For the Board to acquire jurisdiction, following functions:
the parties to a 1) To formulate and adopt an
dispute must agree to submit the same arbitration program for
to voluntary the construction industry;
arbitration. 2) To enunciate policies and prescribe
rules and
Q: What matters may be covered by procedures for construction
the jurisdiction of the arbitration;
CIAC? 3) To supervise the arbitration
A: The jurisdiction of the CIAC may include program, and exercise
but is not limited such authority related thereto as
to: regards the
a. violation of specifications for materials appointment, replacement or
and challenging of arbitrators;
workmanship; and
b. violation of the terms of agreement; 4) To direct its officers and
c. interpretation and/or application of employees to perform such
contractual time functions as may be assigned to them
and delays; from time to
d. maintenance and defects; time.
e. payment, default of employer or Compensation
contractor and
changes in contract cost. Q: How are the members of the CIAC
compensated?
Q: What matter is excluded from the A:
coverage? Sec. 7. Compensation of the
Commission. The members of
the Commission shall receive such a. receiving requests for arbitration, and
per diems1 [per day] and other
allowances as may be fixed by the pleadings,
CIAP from time to time. b. for notifying the parties thereto; and,
c. for fixing and receiving filing fees,
Term of office deposits, costs of
Q: What is the term of office of the arbitration, administrative charges, and
members of the CIAC? fees.
A: d. It shall be the duty of the Executive
Sec. 8. Term. The term of office of the Director to notify
members of the the parties of the awards made by the
Commission shall be six (6) years; arbitrators.
provided, however, that NOTE: The Secretariat shall have among
of the Commission members first others a Publication
appointed, the chairman and a Training Division.
shall hold office for six years; the
other member for four (4) Q: Who shall have the authority to
years; and the third for two (2) years. appoint?
A:
Q: What is the rule in case of Sec. 12. Authority to appoint. The
vacancy? Commission is hereby
A: The appointment to any vacancy in the authorized to appoint the Executive
Commission shall Director, the
only be for the unexpired portion of the consultants, the arbitrators, as well
term of the as personnel and staff.
predecessor. Authority to collect fees
Quorum, deliberations
Q: What constitutes quorum? Q: Does CIAC have the authority to
A: The presence of a majority of the collect fees?
members of the A: Yes. The Commission is empowered to:
Commission shall constitute a quorum for a. determine and collect fees, deposits,
the transaction of costs of
business (Sec. 9). arbitration, as well as administrative and
other
Q: How are the deliberations of the charges as may be necessary in the
Commission be arrived? performance of
A: The decisions of the Commission shall its functions and responsibilities.
be arrived at by b. The CIAC is also authorized to use its
majority vote (Sec. 10). receipts and
Secretariat deposits of funds to finance its operations
Q: What is the function of the CIAC subject to
Secretariat? the approval of the PDCB, the provisions
A: of any law
Sec. 11. Secretariat. The Commission to the contrary notwithstanding (Sec. 13).
shall have a Secretariat Arbitrators (Sec. 14)
to be headed by an Executive Director Q: How many arbitrators are required
who shall be to settle a dispute?
responsible for: A: Arbitrators. A sole arbitrator or three
1 a specific amount of money that an arbitrators may
organization gives an individual per day to settle a dispute (Sec. 14).
cover
living and traveling expenses in Q: What is the effect if the parties
connection with work done away from agree that the dispute
home shall be settled by a sole arbitrator?
A: Where the parties agree that the Q: When can the CIAC appoint
dispute shall be settled experts?
by a sole arbitrator, they may, by A: The services of technical or legal
agreement, nominate him experts may be utilized in
from the list of arbitrators accredited the settlement of disputes if requested by:
by the CIAC for a. any of the parties or
appointment and confirmation (Sec. b. by the Arbitral Tribunal
14). c. both of the parties (Sec. 15)
Q: Is there a need to confirm the
Q: What if they failed to agree as to appointment of the
the arbitrator? experts?
A: If the parties fail to agree as to the A: If the request for an expert is done by
arbitrator, the CIAC either or by both of
taking into consideration the complexities the parties, it is necessary that the
and intricacies of appointment of the expert
the dispute/s has the option to appoint a be confirmed by the Arbitral Tribunal (Sec.
single arbitrator or 15).
an Arbitral Tribunal (Sec. 14).
Expenses
Q: What is the effect if the CIAC Q: Who shall shoulder the expenses
decides to appoint an for the services of an
arbitral tribunal? expert?
A: If the CIAC decides to appoint an A: Whenever the parties request for the
Arbitral Tribunal, each services of an expert,
party may nominate one (1) arbitrator they shall equally shoulder the expert's
from the list of fees and expenses,
arbitrators accredited by the CIAC for half of which shall be deposited with the
appointment and for Secretariat before
confirmation. The third arbitrator who is the expert renders service. When only one
acceptable to both party makes the
parties confirmed in writing shall be request, it shall deposit the whole amount
appointed by the CIAC required (Sec. 15).
and shall preside over the Tribunal (Sec. Arbitration expenses (Sec. 16)
14). Q: What are included in the
arbitration expenses?
Qualities of arbitrator; non- A: Arbitration expenses shall include:
permanent employment 1. filing fee;
Q: What are the qualities that an 2. administrative charges,
arbitrator shall possess? 3. arbitrator's fees;
A: Arbitration shall be men of distinction 4. fee and expenses of the expert, and
in whom the 5. others which may be imposed by the
business sector and the government can CIAC (Sec. 16).
have confidence
(Sec. 14). Q: How are the administrative
charges and the arbitrator’s
Q: Are the arbitrators permanently fees shall be computed?
employed by the CIAC? A: The administrative charges and the
A: They shall not be permanently arbitrator's fees shall
employed with the CIAC. be computed on the basis of percentage
Instead, they shall render services only of the sum in
when called to dispute to be fixed in accordance with the
arbitrate. For each dispute they settle, Table of
they shall be given Administrative Charges and Arbitrator's
fees (Sec. 14). Fees (Sec. 16).
Appointment of experts (Sec. 15)
Deposit to cover arbitration expenses A:
(Sec. 17) GR: The arbitral award shall be binding
Q: What should be the amount of the upon the parties. It
deposit? shall be final and inappealable
A: XPN: Except on questions of law which
Sec. 17. Deposit to Cover Arbitration shall be appealable to
Expenses. The CIAC shall the Supreme Court.
be authorized to fix the amount to be Execution and enforcement of awards
deposited which must Sec. 20. Execution and Enforcement of
be equivalent to the expected arbitration Awards. As soon as a
expenses. Xxx decision, order to award has become final
and executory, the
Q: To whom shall the deposit be paid? Arbitral Tribunal or the single arbitrator
A: The deposit shall be paid to the with the occurrence
Secretariat. of the CIAC shall:
a. motu propio, or
Q: When should the deposit be made? b. on motion of any interested party
A: Before arbitration proceedings shall issue a writ of execution requiring any
commence. sheriff or other proper
officer to execute said decision, order or
Q: Who shall make the payment? award.
A: Payment shall either be: Rule-making power (Sec. 21)
a. shared equally by the parties or Sec. 21. Rule-Making Power. The CIAC
b. paid by any of them. shall formulate and
adopt necessary rules and procedures for
Failure to pay; effect construction
Q: What if one party fails to arbitration.
contribute his share in the Republic Act No. 9285
deposit? Alternative Dispute Resolution Act of
A: If one party fails to contribute his share 2004
in the deposit, the CHAPTER 6 - ARBITRATION OF
other party must pay in full. CONSTRUCTION DISPUTES
Q: What if both parties fail to tender Q: What law governs the arbitration
the required deposit? concerning the
A: If both parties fail to tender the construction disputes?
required deposit, the case A:
shall be considered dismissed but the SEC. 34. Arbitration of Construction
parties shall still be Disputes: Governing
liable to pay one half (1/2) of the agreed Law. - The arbitration of construction
administrative disputes shall be
charge. governed by Executive Order No.
Reports by the CIAC (Sec. 18) 1008, otherwise known as
Q: When should the CIAC make a the Constitution Industry Arbitration
report? Law.
A: The Commission shall within three (3) NOTES ON ALTERNATIVE DISPUTE
months after the RESOLUTION
end of the fiscal year, submit its annual Q: Who has jurisdiction over the
report to the CIAP. It construction disputes?
shall, likewise, submit such periodic A: Construction disputes shall fall within
reports as it may be the original and
required from time to time. exclusive jurisdiction of the Construction
Finality of the awards (Sec. 19) Industry Arbitration
Q: What is the nature of an arbitral Commission (Sec. 35).
award made by the Coverage of the law
CIAC?
Q: Under Sec. 35, discuss the agreement in the form of an arbitral award
coverage of the law? (Sec. 36).
A: It shall include those between or Appointment of foreign arbitrator
among parties to, or who SEC. 37. Appointment of Foreign
are otherwise bound by, an arbitration Arbitrator. - The
agreement, directly or Construction Industry Arbitration
by reference whether such parties are Commission (CIAC) shall
project owner, promulgate rules to allow for the
contractor, subcontractor, quantity appointment of a foreign
surveyor, bondsman or arbitrator or co-arbitrator or
issuer of an insurance policy in a chairman of a tribunal a person
construction project. who has not been previously
accredited by CIAC.
Q: Who has jurisdiction in case the
construction dispute is Q: What are the requisites to allow
one of a commercial nature? the appointment of a
A: The Commission shall continue to foreign arbitrator or co-arbitrator or
exercise original and chairman of a tribunal?
exclusive jurisdiction over construction A: Provided, That:
disputes although the 1. the dispute is a construction dispute in
arbitration is "commercial" pursuant to which one
Section 21 of this Act. party is an international party
SEC. 21. Commercial Arbitration. - An 2. the person to be appointed agreed to
arbitration is "commercial" if it covers abide by the
matters arising from all relationships of a arbitration rules and policies of CIAC;
commercial nature, whether 3. he/she is either coarbitrator upon the
contractual or not. Relationships of a nomination of
transactions: any trade transaction for the international party; or he/she is the
the supply or exchange of goods or common
services; distribution agreements; choice of the two CIAC-accredited
construction of works; commercial arbitrators first
representation or agency; factoring; appointed one of whom was nominated by
leasing, consulting; engineering; licensing; the
investment; financing; banking; international party; and
insurance; joint venture and other forms of 4. the foreign arbitrator shall be of
industrial or business different nationality
cooperation; carriage of goods or from the international party.
passengers by air, sea, rail or road.
Other applicable provisions
Q: How are arbitrators chosen? SEC. 38. Applicability to Construction
A: Arbitration. - The
SEC. 36. Authority to Act as Mediator provisions of Sections 17 (d) of Chapter 2,
or Arbitrator. - By and Section 28 and
written agreement of the parties to a 29 of this Act shall apply to arbitration of
dispute, an arbitrator construction
may act as mediator and a mediator may disputes covered by this Chapter.
act as arbitrator. Xxx SEC. 17. Enforcement of Mediated
Settlement Agreement. - The mediation
Q: May the parties agree that the shall be guided by the following operative
settlement be in the form principles:
of an arbitral award? (d) The parties may agree in the
A: The parties may also agree in writing settlement agreement that the mediator
that, following a shall become a sole arbitrator for the
successful mediation, the mediator shall dispute and shall treat the settlement
issue the settlement
agreement as an arbitral award which application transmitted by reasonable
shall be subject to enforcement under means to the Court or
Republic Act No. 876, otherwise known as arbitral tribunal as the case may be and
the Arbitration Law, the party against
notwithstanding the provisions of whom the relief is sought, describing in
Executive Order No. 1008 for mediated appropriate detail
dispute outside of the CIAC. the precise relief, the party against whom
SEC. 28. Grant of Interim Measure of the relief is
Protection. – requested, the grounds for the relief, and
a. It is not incompatible with an arbitration evidence
agreement for a party to supporting the request.
request, before constitution of the 5. The order shall be binding upon the
tribunal, from a Court an parties.
interim measure of protection and for the 6. Either party may apply with the Court
Court to grant such for assistance in
measure. After constitution of the arbitral Implementing or enforcing an interim
tribunal and during measure ordered by
arbitral proceedings, a request for an an arbitral tribunal.
interim measure of 7. A party who does not comply with the
protection or modification thereof, may be order shall be liable
made with the arbitral for all damages resulting from
tribunal or to the extent that the arbitral noncompliance, including all
tribunal has no power to expenses, and reasonable attorney's fees,
act or is unable to act effectively, the paid in obtaining
request may be made with the order's judicial enforcement.
the Court. The arbitral tribunal is deemed SEC. 29. Further Authority for
constituted when the Arbitrator to Grant Interim Measure
sole arbitrator or the third arbitrator who of
has been nominated, Protection. - Unless otherwise agreed by
has accepted the nomination and written the parties, the arbitral tribunal
communication of said may, at the request of a party, order any
nomination and acceptance has been party to take such interim measures
received by the party of protection as the arbitral tribunal may
making request. consider necessary in respect of the
b. The following rules on interim or subject matter of the dispute following the
provisional relief shall be rules in Section 28, paragraph 2.
observed: Such interim measures may include but
1. Any party may request that provision shall not be limited to preliminary
relief be granted injuction directed against a party,
against the adverse party: appointment of receivers or detention,
2. Such relief may be granted: preservation, inspection of property that is
(i) to prevent irreparable loss or injury: the subject of the dispute in
(ii) to provide security for the performance arbitration. Either party may apply with
of any obligation; the Court for assistance in
(iii) to produce or preserve any evidence; implementing or enforcing an interim
or measures ordered by an arbitral
(iv) to compel any other appropriate act or tribunal.
omission. Duty of the court to dismiss (Sec. 39)
3. The order granting provisional relief Q: What is the duty of the court in
may be conditioned case a construction
upon the provision of security or any act dispute has been filed before it?
or omission A: A regional trial court which a
specified in the order. construction dispute is filed
4. Interim or provisional relief is requested shall, upon becoming aware, not later than
by written the pretrial
conference, that the parties had entered 876. Any other ground raised against
into an arbitration a domestic arbitral
to be conducted by the CIAC, unless both award shall be disregarded by the
parties, assisted by regional trial court.
their respective counsel, shall submit to
the regional trial Q: Under Sec. 25 of RA 876, what are
court a written agreement exclusive for the grounds for the
the Court, rather modification of the award?
than the CIAC, to resolve the dispute. A: In any one of the following cases, the
CHAPTER 7 - JUDICIAL REVIEW OF court must make an
ARBITRAL AWARDS order modifying or correcting the award,
A. DOMESTIC AWARDS upon the
SEC. 40. Confirmation of Award. - The application of any party to the controversy
confirmation of a which was
domestic arbitral award shall be governed arbitrated:
by Section 23 of 1. Where there was an evident
R.A. 876. miscalculation of
Confirmation of award figures, or an evident mistake in the
Q: What is the effect of a confirmed description of
domestic arbitral any person, thing or property referred to
award? in the
A: A domestic arbitral award when award; or
confirmed shall be 2. Where the arbitrators have awarded
enforced in the same manner as final and upon a matter
executory decisions not submitted to them, not affecting the
of the Regional Trial Court. merits of
the decision upon the matter submitted;
Q: What court has jurisdiction to or
confirm the award? 3. Where the award is imperfect in a
A: The confirmation of a domestic award matter of form
shall be made by not affecting the merits of the
the regional trial court in accordance with controversy, and if it
the Rules of had been a commissioner's report, the
Procedure to be promulgated by the defect could
Supreme Court. have been amended or disregarded by the
court.
Q: Should the CIAC arbitral award be 4. The order may modify and correct the
confirmed to be award so as to
executory? effect the intent thereof and promote
A: A CIAC arbitral award need not be justice
confirmed by the between the parties.
regional trial court to be executory as
provided under E.O. B. FOREIGN ARBITRAL AWARDS
No. 1008. Q: What will govern the recognition
Vacation of award and enforcement of
SEC. 41. Vacation Award. - A party to arbitral awards?
a domestic arbitration A: The New York Convention shall govern
may question the arbitral award with the recognition and
the appropriate enforcement of arbitral awards covered by
regional trial court in accordance the said
with the rules of Convention (Sec. 42, Application of the
procedure to be promulgated by the New York Convention).
Supreme Court only on NOTES ON ALTERNATIVE DISPUTE
those grounds enumerated in Section RESOLUTION
25 of Republic Act No.
Q: Where should the recognition and New York Convention?
enforcement of such A:
arbitral award be made? SEC. 43. Recognition and
A: The recognition and enforcement of Enforcement of Foreign Arbitral
such arbitral awards Awards Not Covered by the New York
shall be filled with regional trial court in Convention. - The
accordance with the recognition and enforcement of
rules of procedure to be promulgated by foreign arbitral awards not
the Supreme Court. covered by the New York Convention
shall be done in
Requirements accordance with procedural rules to
Q: What are the requirements for the be promulgated by the
application of the Supreme Court. The Court may,
enforcement of the award? grounds of comity and
A: reciprocity, recognize and enforce a
1. the party relying on the award or nonconvention award
applying for its as a convention award.
enforcement shall file with the court the
original or Q: May the court recognize enforce a
authenticated copy of the award and non-convention award
2. the arbitration agreement as a convention award?
NOTE: If the award or agreement is not A: The Court may, grounds of:
made in any of the a. comity and
official languages, the party shall supply a b. reciprocity, recognize and enforce a
duly certified non-convention
translation thereof into any of such award as a convention award.
languages. Foreign arbitral award not a foreign
3. The applicant shall establish that the judgment (Sec. 44)
country in Q:What is the effect when a foreign
which foreign arbitration award was made arbitral award is
is a party confirmed by a court of foreign
to the New York Convention. country?
A: A foreign arbitral award when
Q: What if the application is for the confirmed by a court of a
rejection or suspension foreign country, shall be recognized and
of the enforcement of the award? enforced as a foreign
A: If the application for rejection or arbitral award and not a judgment of
suspension of a foreign court.
enforcement of an award has been made,
the regional trial Q: How can a foreign arbitral award
court may, if it considers it proper, vacate confirmed by the
its decision and regional trial court be enforced?
may also, on the application of the party A: It shall be enforced in the same manner
claiming recognition as final and
or enforcement of the award, order the executory decisions of courts of law of the
party to provide Philippines.
appropriate security. Rejection of a foreign arbitral award
Recognition and Enforcement of (Sec. 45)
Foreign Arbitral Awards Q: How can a party oppose the
Not Covered by the New York application for recognition
Convention and enforcement of the arbitral
Q: What is the rule regarding the award?
recognition and A: A party to a foreign arbitration
enforcement of foreign arbitral proceeding may oppose an
awards not covered by the
application for recognition and to arbitration can be separated from those
enforcement of the arbitral not so
award in accordance with the procedural submitted, that part of the award which
rules to be contains
promulgated by the Supreme Court only decisions on matters submitted to
on those grounds arbitration may
enumerated under Article V of the New be recognized and enforced; or
York Convention. Any d. The composition of the arbitral
other ground raised shall be disregarded authority or the
by the regional trial arbitral procedure was not in accordance
court. with the
agreement of the parties, or, failing such
Q: Under the Article V of the New agreement,
York Convention, what was not in accordance with the law of the
are the grounds that can be raised country
for the opposition? where the arbitration took place; or
A: e. The award has not yet become binding,
1. Recognition and enforcement of the on the
award may be parties, or has been set aside or
refused, at the request of the party suspended by a
against whom it is competent authority of the country in
invoked, only if that party furnishes to the which, or
competent under the law of which, that award was
authority where the recognition and made.
enforcement is sought, 2. Recognition and enforcement of an
proof that: arbitral award may also
a. The parties to the agreement referred be refused if the competent authority in
to in article II the country where
were, under the law applicable to them, recognition and enforcement is sought
under some finds that:
incapacity, or the said agreement is not a. The subject matter of the difference is
valid under not capable
the law to which the parties have of settlement by arbitration under the law
subjected it or, of that
failing any indication thereon, under the country; or
law of the b. The recognition or enforcement of the
country where the award was made; or award would
b. The party against whom the award is be contrary to the public policy of that
invoked was country.
not given proper notice of the Appeal from court on decisions on
appointment of the arbitral awards
arbitrator or of the arbitration proceedings SEC. 46. Appeal from Court Decisions
or was on Arbitral Awards. - A
otherwise unable to present his case; or decision of the regional trial court:
c. The award deals with a difference not a. confirming,
contemplated b. vacating,
by or not falling within the terms of the c. setting aside,
submission d. modifying or correcting an arbitral
to arbitration, or it contains decisions on award
matters may be appealed to the Court of Appeals
beyond the scope of the submission to in accordance with
arbitration, the rules of procedure to be promulgated
provided that, if the decisions on matters by the Supreme
submitted Court.
Q: What is required from the party award, the Court shall send notice to
who appeals from the the parties at their
judgment of the court confirming an address of record in the arbitration,
arbitral award? or if any party cannot
A: The losing party who appeals from the be served notice at such address, at
judgment of the such party's last known
court confirming an arbitral award shall address. The notice shall be sent at
required by the least fifteen (15) days
appealant court to post counterbond before the date set for the initial
executed in favor of the hearing of the application.
prevailing party equal to the amount of CONVENTION ON THE RECOGNITION
the award in AND ENFORCEMENT
accordance with the rules to be OF FOREIGN ARBITRAL AWARDS
promulgated by the Supreme Article I
Court (Sec. 46). Q: State the application or scope of
Venue and jurisdiction (Sec. 47) this convention?
Q: What is the character of the A: This Convention shall apply to the
proceedings for the recognition and
recognition and enforcement of an enforcement of arbitral awards made in
arbitration agreement or the territory of a
for vacation, setting aside, correction State other than the State where the
or modification of an recognition and
arbitral award? enforcement of such awards are sought,
A: Proceedings for recognition and and arising out of
enforcement of an differences between persons, whether
arbitration agreement or for vacation, physical or legal. It
setting aside, shall also apply to arbitral awards not
correction or modification of an arbitral considered as domestic
award, and any awards in the State where their
application with a court for arbitration recognition and enforcement
assistance and are sought.
supervision shall be deemed as special
proceedings. Q: What do you mean by arbitral
awards under the
Q: Where should the same be filed? Convention?
A: It shall be filled with the regional trial A: It shall include not only awards made
court: by arbitrators
a. where arbitration proceedings are appointed for each case but also those
conducted; made by permanent
b. where the asset to be attached or arbitral bodies to which the parties have
levied upon, or submitted.
the act to be enjoined is located; NOTES ON ALTERNATIVE DISPUTE
c. where any of the parties to the dispute RESOLUTION
resides or NOTE: When signing, ratifying or acceding
has his place of business; or to this Convention,
d. in the National Judicial Capital Region, or notifying extension under article X
at the option hereof, any State may
of the applicant. on the basis of reciprocity declare that it
Notice of proceeding to parties (Sec. will apply the
48) Convention to the recognition and
SEC. 48. Notice of Proceeding to enforcement of awards
Parties. - In a special made only in the territory of another
proceeding for recognition and Contracting State. It
enforcement of an arbitral may also declare that it will apply the
Convention only to
differences arising out of legal There shall not be imposed substantially
relationships, whether more onerous
contractual or not, which are considered conditions or higher fees or charges on the
as commercial recognition or
under the national law of the State making enforcement of arbitral awards to which
such declaration. this Convention
applies than are imposed on the
Article II recognition or enforcement
Each Contracting State shall recognize an of domestic arbitral awards.
agreement in
writing under which the parties undertake Article IV
to submit to Q: To obtain the recognition and
arbitration all or any differences which enforcement mentioned in
have arisen or which the preceding article, what should
may arise between them in respect of a the party applying for
defined legal recognition and enforcement, at the
relationship, whether contractual or not, time of the application,
concerning a subject shall supply:
matter capable of settlement by A:
arbitration. (a) The duly authenticated original award
or a duly
Q: What does agreement in writing certified copy thereof;
mean? (b) The original agreement referred to in
A: The term "agreement in writing" shall article II or a
include an arbitral duly certified copy thereof.
clause in a contract or an arbitration NOTE: If the said award or agreement is
agreement, signed by not made in an
the parties or contained in an exchange of official language of the country in which
letters or the award is relied
telegrams. upon, the party applying for recognition
and enforcement of
Q: When can the court refer the the award shall produce a translation of
parties to arbitration? these documents
A: The court of a Contracting State, when into such language. The translation shall
seized of an action be certified by an
in a matter in respect of which the parties official or sworn translator or by a
have made an diplomatic or consular
agreement within the meaning of this agent.
article, shall, at the
request of one of the parties, refer the Article V
parties to arbitration, Q: Under what instances can the
unless it finds that the said agreement is: recognition and
1. null and void, enforcement of the award be
2. inoperative or refused?
3. incapable of being performed. A: Recognition and enforcement of the
award may be
Article III refused, at the request of the party
Each Contracting State shall recognize against whom it is
arbitral awards as invoked, only if that party furnishes to the
binding and enforce them in accordance competent
with the rules of authority where the recognition and
procedure of the territory where the award enforcement is sought,
is relied upon, proof that:
under the conditions laid down in the (a) The parties to the agreement referred
following articles. to in article II
were, under the law applicable to them, (a) The subject matter of the difference is
under some not capable of
incapacity, or the said agreement is not settlement by arbitration under the law of
valid under the that country;
law to which the parties have subjected it or
or, failing any (b) The recognition or enforcement of the
indication thereon, under the law of the award would
country where be contrary to the public policy of that
the award was made; or country.
(b) The party against whom the award is UNCITRAL MODEL LAW ONGENERAL
invoked was not PROVISIONS (Article 1)
given proper notice of the appointment of Q: When is arbitration considered as
the arbitrator international?
or of the arbitration proceedings or was A: Arbitration is international if:
otherwise a. the parties to an arbitration agreement
unable to present his case; or have, at the time
(c) The award deals with a difference not of the conclusion of that agreement, their
contemplated places of
by or not falling within the terms of the business in different States; or
submission to b. one of the following places is situated
arbitration, or it contains decisions on outside the State
matters beyond in which the parties have their places of
the scope of the submission to arbitration, business:
provided that, i. the place of arbitration if determined in,
if the decisions on matters submitted to or pursuant
arbitration can to, the arbitration agreement;
be separated from those not so submitted, ii. any place where a substantial part of
that part of the obligations
the award which contains decisions on of the commercial relationship is to be
matters performed or
submitted to arbitration may be the place with which the subject-matter of
recognized and the
enforced; or dispute is most closely connected; or
(d) The composition of the arbitral c. The parties have expressly agreed that
authority or the the subject
arbitral procedure was not in accordance matter of the arbitration agreement
with the relates to more than
agreement of the parties, or, failing such one country.
agreement, was
not in accordance with the law of the Q: Where is the place of business if
country where the the party has more than
arbitration took place; or one place of business?
(e) The award has not yet become binding A: It is that which has the closest
on the parties, relationship to the
or has been set aside or suspended by a arbitration agreement.
competent
authority of the country in which, or under Q: What if the party has no place of
the law of business?
which, that award was made. A: If a party does not have a place of
2. Recognition and enforcement of an business, reference is to
arbitral award may also be made to his habitual residence.
be refused if the competent authority in DEFINITIONS AND RULES OF
the country where INTERPRETATION (Article 2)
recognition and enforcement is sought Q: What is arbitration?
finds that:
A: It means any arbitration whether or not recorded in any form, whether or not the
administered by a arbitration
permanent arbitral institution. agreement or contract has been
concluded orally, by
Q: What is arbitral tribunal? conduct, or by other means.
A: It means the sole arbitrator or a panel
of arbitrators. Arbitration Agreement
“Arbitration agreement” is an
Q: What is the rule of interpretation agreement by the parties to
with regard to this law? submit to arbitration all or certain disputes
A: which have arisen
1. In the interpretation of this Law, regard or which may arise between them in
is to be had respect of a defined
to its international origin and to the need legal relationship, whether contractual or
to not.
promote uniformity in its application and
the Q: When can a court acquire
observance of good faith; jurisdiction over the case?
2. Questions concerning matters governed When can it refer the parties to
by this Law arbitration?
which are not expressly settled in it are to A: A court before which an action is
be settled brought in a matter
in conformity with the general principles which is the subject of an arbitration
on which agreement shall, if a
this Law is based. party so requests not later than when
submitting his fist
Q: What are the factors to be statement on the substance of the
considered? dispute, refers the parties
A: to arbitration.
1. International origin;
2. Uniformity in application; and Q: Under what instances can the
3. Observance of good faith. court set aside the
ARBITRATION AGREEMENT (Article 7) agreement?
Q: What is an arbitration agreement? A: If the Court finds that the agreement is:
A: It is an agreement by the parties to 1. Null and void;
submit to arbitration 2. Inoperative; or
all or certain disputes which have 3. incapable of being performed (Article
arisen or which may arise 8).
between them in respect of a defined
legal relationship, Q: Pending the determination of such
whether contractual or not. An issue, may the
arbitration agreement may arbitration proceedings commenced
be in the form of an arbitration clause in a or continued?
contract or in the A: Where an action referred to in
form of a separate agreement. paragraph (1) of this article
has been brought, arbitral proceedings
Q: What is the form of such may nevertheless be
agreement? commenced or continued, and an award
A: It must be in writing. may be made, while
the issue is pending before the court.
Q: When is an agreement considered R.A. No. 876
written? NOTE: In our arbitration law, the court
A: An arbitration agreement is in writing if proceedings are
its content is suspended:
Section 7. Stay of civil action. - If any In an arbitration with three arbitrators,
suit or each party shall
proceeding be brought upon an issue appoint one arbitrator, and the two
arising out of an arbitrators thus
agreement providing for the appointed shall appoint the third
arbitration thereof, the court in arbitrator; if a party fails to
which such suit or proceeding is appoint the arbitrator within thirty days
pending, upon being of receipt of a
satisfied that the issue involved in request to do so from the other party,
such suit or proceeding is or if the two
referable to arbitration, shall stay the arbitrators fail to agree on the third
action or proceeding arbitrator within thirty
until an arbitration has been had in days of their appointment, the
accordance with the appointment shall be made,
terms of the agreement: Provided, upon request of a party, by the court or
That the applicant, for other authority
the stay is not in default in specified in article 6;
proceeding with such arbitration. Appointment of sole arbitrator
Interim measures by court (Article 11)
It is not incompatible with an arbitration In an arbitration with a sole arbitrator, if
agreement for a the parties are
party to request, before or during arbitral unable to agree on the arbitrator, he shall
proceedings, from be appointed,
a court an interim measure of protection upon request of a party, by the court or
and for a court to other authority
grant such measure (Article 9). specified in article 6.
COMPOSITION OF ARBITRAL
TRIBUNAL (Article 10) Q: Under what instances may a party
Q: What are the rules regarding the request a court or
number of arbitrators? other authority to take the necessary
A: measure?
1. The parties are free to determine the A:
number of (a) a party fails to act as required under
arbitrators. such procedure,
2. Failing such determination, the number or
of (b) the parties, or two arbitrators, are
arbitrators shall be three. unable to reach
an agreement expected of them under
Q: What is the disqualification in the such
appointment of procedure, or
arbitrators? (c) a third party, including an institution,
A: No person shall be precluded by reason fails to
of his nationality perform any function entrusted to it under
from acting as an arbitrator, unless such
otherwise agreed by the procedure.
parties (Article 11).
NOTE: The parties are free to agree on Q: Is the court decision subject to
the procedure of appeal?
appointing the arbitrator or arbitrators. A: No.

Q: What are the rules in the Q: What are the considerations in the
appointment of arbitrators? appointment of
A: arbitrators?
Appointment of 3 arbitrators (Article A: The court or other authority, in
11) appointing an arbitrator,
shall have due regard to any qualifications preceding cases in which the
required of the agreement is silent as to the number
arbitrator by the agreement of the parties of
and to such arbitrators.
considerations as are likely to secure the (f) Arbitrators appointed under this
appointment of an section shall either accept or
independent and impartial arbitrator and, decline their appointments within
in the case of a seven days of the receipt of their
sole or third arbitrator, shall take into appointments. In case of declination
account as well the or the failure of an arbitrator or
advisability of appointing an arbitrator of a arbitrators to duly accept their
nationality other appointments the parties or the
than those of the parties. court, as
R.A. No. 876 the case may be, shall proceed to
Section 8. Appointment of appoint a substitute or substitutes
arbitrators. - If, in the contract for for the
arbitration or in the submission arbitrator or arbitrators who decline
described in section two, provision is or failed to accept his or their
made appointments.
for a method of naming or appointing
an arbitrator or arbitrators, such Grounds for challenge (Article 12)
method shall be followed; but if no Q: What are the grounds for
method be provided therein the Court challenge of arbitrators?
of First Instance shall designate an A:
arbitrator or arbitrators. (1) When a person is approached in
The Court of First Instance shall connection with his
appoint an arbitrator or arbitrators, possible appointment as an arbitrator, he
as the shall
case may be, in the following disclose any circumstances likely to
instances: give rise to
(a) If the parties to the contract or justifiable doubts as to his
submission are unable to agree impartiality or
upon a single arbitrator; or independence. An arbitrator, from the
(b) If an arbitrator appointed by the time of his
parties is unwilling or unable to appointment and throughout the arbitral
serve, and his successor has not been proceedings, shall without delay disclose
appointed in the manner in which he any such
was appointed; or circumstances to the parties unless they
(c) If either party to the contract fails have
or refuses to name his already been informed of them by him.
arbitrator within fifteen days after (2) An arbitrator may be challenged only if
receipt of the demand for arbitration; circumstances exist that give rise to
or justifiable
(d) If the arbitrators appointed by doubts as to his impartiality or
each party to the contract, or independence, or if
appointed by one party to the he does not possess qualifications
contract and by the proper Court, agreed to by the
shall fail to parties. A party may challenge an
agree upon or to select the third arbitrator
arbitrator. appointed by him, or in whose
(e) The court shall, in its discretion appointment he has
appoint one or three arbitrators, participated, only for reasons of which he
according to the importance of the becomes
controversy involved in any of the aware after the appointment has been
made.
Challenge Procedure (Article 13) Section 11. Challenge of arbitrators. - The
The parties are free to agree on a arbitrators
procedure for challenging may be challenged only for the reasons
an arbitrator. mentioned in the
preceding section which may have arisen
Q: What is the procedure to be after the arbitration
applied in case he parties fail agreement or were unknown at the time
to agree on the procedure? of arbitration.
A: Failing such agreement, a party who The challenge shall be made before them.
intends to challenge If they do not yield to the challenge, the
an arbitrator shall, within fifteen days challenging party
after becoming aware may renew the challenge before the Court
of the constitution of the arbitral of First Instance of
tribunal or after becoming the province or city in which the
aware of any circumstance referred to challenged arbitrator, or, any
in article 12(2), send a of them, if there be more than one,
written statement of the reasons for the resides.
challenge to the
arbitral tribunal. Unless the challenged Q: Under our Arbitration Law, what is
arbitrator withdraws the effect of the
from his office or the other party agrees to challenge on the arbitration
the challenge, the proceedings?
arbitral tribunal shall decide on the A: While the challenging incident is
challenge. discussed before the
court, the hearing or arbitration shall be
Q: Which body has jurisdiction over suspended, and it
the issue? shall be continued immediately after the
A: The arbitral tribunal shall rule on the court has delivered
challenge. an order on the challenging incident.
Failure or impossibility to act (Art.
Q: What if the challenge was 14)
unsuccessful? If an arbitrator becomes de jure or de
A: The challenging party may request, facto unable to
within thirty days after perform his functions or for other reasons
having received notice of the decision fails to act without
rejecting the undue delay, his mandate terminates if he
challenge, the court or other authority withdraws from
specified in article 6 to his office or if the parties agree on the
decide on the challenge, which decision termination.
shall be subject to no Otherwise, if a controversy remains
appeal; while such a request is pending, concerning any of these
the arbitral tribunal, grounds, any party may request the court
including the challenged arbitrator, may or other authority
continue the arbitral specified in article 6 to decide on the
proceedings and make an award. termination of the
mandate, which decision shall be subject
Q: What is the effect of the challenge to no appeal.
on the proceedings?
Should the arbitration proceedings be Q: Does the withdrawal from office of
suspended? the arbitrator or if the
A: No, the proceedings shall proceed and parties agree to terminate his/her
can make an award mandate, mean
(Article 13 (3)). acceptance of the validity of the
R.A. No. 876 ground?
A: No.
 shall be raised not later than the
Appointment of substitute arbitrator submission of the statement
(Article 15) of defense.
Q: How is the substitute arbitrator to NOTE: A party is not precluded from
be appointed? raising such a plea by the
A: Where the mandate of an arbitrator fact that he has appointed, or participated
terminates under in the
article 13 or 14 or because of his appointment of, an arbitrator.
withdrawal from office for
any other reason or because of the Q: When should the issue of the
revocation of his mandate tribunal exceeding its scope
by agreement of the parties or in any be raised?
other case of A: A plea that the arbitral tribunal is
termination of his mandate, a substitute exceeding the scope of
arbitrator shall be its authority shall be raised as soon as the
appointed according to the rules that were matter alleged to
applicable to the be beyond the scope of its authority is
appointment of the arbitrator being raised during the
replaced. arbitral proceedings. The arbitral tribunal
JURISDICTION OF ARBITRAL TRIBUNAL may, in either case,
Q: Which body has jurisdiction over admit a later plea if it considers the delay
the competence of the justified.
tribunal vis-à-vis its jurisdiction? May NOTE: The arbitral tribunal may rule on a
the tribunal itself rule plea referred to in
on its own jurisdiction? paragraph (2) of this article either as a
A: The arbitral tribunal may rule on its preliminary question
own jurisdiction, or in an award on the merits. If the arbitral
including any objections with respect to tribunal rules as a
the existence or preliminary question that it has
validity of the arbitration agreement. jurisdiction, any party may
request, within thirty days after
Kompetenz Principle or Separability having received notice of
Principle that ruling, the court specified in article
Q: What is the effect of the decision 6 to decide the
of the arbitral tribunal matter, which decision shall be subject to
regarding the contract on the no appeal; while
arbitration clause? Does the such a request is pending, the arbitral
invalidation of the contract ipso jure tribunal may continue
invalidate the the arbitral proceedings and make an
arbitration clause? award.
A: An arbitration clause which forms part INTERIM MEASURES AND
of a contract shall PRELIMINARY ORDERS
be treated as an agreement independent Power of arbitral tribunal to order
of the other terms interim measures
of the contract. A decision by the arbitral (Article 17)
tribunal that the Unless otherwise agreed by the parties,
contract is null and void shall not entail the arbitral tribunal
ipso jure the invalidity may, at the request of a party, grant
of the arbitration clause. interim measures.

Q: When should the issue of Q: What is an interim measure?

jurisdiction be raised? A: An interim measure is any temporary
A: A plea that the arbitral tribunal does measure, whether in
not have jurisdiction the form of an award or in another form,
by which, at any
time prior to the issuance of the award by (iv) to compel any other appropriate act or
which the dispute omission.
is finally decided, the arbitral tribunal (3) The order granting provisional relief
orders a party to: may be conditioned upon the
(a) Maintain or restore the status quo provision of security or any act or
pending omission specified in the order.
determination of the dispute; (4) Interim or provisional relief is
(b) Take action that would prevent, or requested by written application
refrain from transmitted by reasonable means to the
taking action that is likely to cause, Court or arbitral tribunal as the case
current or may be and the party against whom the
imminent harm or prejudice to the arbitral relief is sought, describing in
process appropriate detail the precise relief, the
itself; party against whom the relief is
(c) Provide a means of preserving assets requested, the grounds for the relief, and
out of which a evidence supporting the request.
subsequent award may be satisfied; or (5) The order shall be binding upon the
(d) Preserve evidence that may be parties.
relevant and material (6) Either party may apply with the Court
to the resolution of the dispute. for assistance in Implementing or
R.A 9285 enforcing an interim measure ordered by
SEC. 28. Grant of Interim Measure of an arbitral tribunal.
Protection. - (7) A party who does not comply with the
(a) It is not incompatible with an order shall be liable for all
arbitration agreement for a party to damages resulting from noncompliance,
request, before constitution of the including all expenses, and
tribunal, from a Court an interim measure reasonable attorney's fees, paid in
of protection and for the Court to grant obtaining the order's judicial
such measure. After constitution of enforcement.
the arbitral tribunal and during arbitral
proceedings, a request for an interim Conditions for granting interim
measure of protection or modification measures (Article 17. A)
thereof, may be made with the Q: What are the conditions to be
arbitral tribunal or to the extent that the satisfied by the requesting
arbitral tribunal has no power to act party before the interim measure be
or is unable to act effectively, the request granted?
may be made with the Court. The A:
arbitral tribunal is deemed constituted (a) Harm not adequately reparable by an
when the sole arbitrator or the third award of damages
arbitrator who has been nominated, has is likely to result if the measure is not
accepted the nomination and ordered, and such
written communication of said nomination harm substantially outweighs the harm
and acceptance has been that is likely to
received by the party making request. result to the party against whom the
(b) The following rules on interim or measure is directed
provisional relief shall be observed: if the measure is granted; and
(1) Any party may request that provision (b) There is a reasonable possibility that
relief be granted against the the requesting
adverse party: party will succeed on the merits of the
(2) Such relief may be granted: claim. The
(i) to prevent irreparable loss or injury: determination on this possibility shall not
(ii) to provide security for the performance affect the
of any obligation; discretion of the arbitral tribunal in making
(iii) to produce or preserve any evidence; any
or subsequent determination.
Applications for preliminary orders or modifying the preliminary order, after
and conditions for the party against
granting preliminary orders (Article whom the preliminary order is directed
17.B) has been given notice
Unless otherwise agreed by the parties, a and an opportunity to present its case.
party may, without
notice to any other party, make a request Q: Is the preliminary order subject to
for an interim enforcement by the
measure together with an application court?
for a preliminary order A: No, a preliminary order shall be binding
directing a party not to frustrate the on the parties but
purpose of the interim shall not be subject to enforcement by a
measure requested. court.
The arbitral tribunal may grant a
preliminary order provided it Q: Does it constitute an award?
considers that prior disclosure of the A: No, such a preliminary order does not
request for the interim constitute an award.
measure to the party against whom it is
directed risks Interim measures:
frustrating the purpose of the measure. Modification, suspension, termination
Specific regime for preliminary orders (Article 17 D)
(Article 17 C) Q: May the court or tribunal modify.
Immediately after the arbitral tribunal has Suspend or terminate
made a an interim measure?
determination in respect of an application A: The arbitral tribunal may modify,
for a preliminary suspend or terminate an
order, the arbitral tribunal shall give notice interim measure or a preliminary order it
to all parties of has granted, upon
the request for the interim measure, the application of any party or, in exceptional
application for the circumstances and
preliminary order, the preliminary order, if upon prior notice to the parties, on the
any, and all other arbitral tribunal’s own
communications, including by indicating initiative.
the content of any
oral communication, between any party Provision of security (Article 17 E)
and the arbitral Q: Is security required in case of
tribunal in relation thereto. provisional remedies?
At the same time, the arbitral tribunal A: The arbitral tribunal may require the
shall give an party requesting an
opportunity to any party against whom a interim measure to provide appropriate
preliminary order is security in
directed to present its case at the earliest connection with the measure.
practicable time. The arbitral tribunal shall require the party
The arbitral tribunal shall decide promptly applying for a
on any objection preliminary order to provide security in
to the preliminary order. connection with the
order unless the arbitral tribunal considers
Q: What is the termination period of it inappropriate or
the preliminary order? unnecessary to do so.
A: A preliminary order shall expire after
twenty days from the Disclosure (Article 17 F)
date on which it was issued by the arbitral Q: What is the rule on disclosure of
tribunal. However, material changes on the
the arbitral tribunal may issue an interim circumstances for application of the
measure adopting provisional remedy?
A: The arbitral tribunal may require any NOTE: The party who is seeking or has
party promptly to obtained recognition
disclose any material change in the or enforcement of an interim measure
circumstances on the shall promptly inform
basis of which the measure was requested the court of any termination, suspension
or granted. or modification of
The party applying for a preliminary order that interim measure.
shall disclose to
the arbitral tribunal all circumstances that Grounds for refusing recognition or
are likely to be enforcement
relevant to the arbitral tribunal’s (Article 17 I)
determination whether to Q: When may the recognition or
grant or maintain the order, and such enforcement of interim
obligation shall measure be refused?
continue until the party against whom the A: Recognition or enforcement of an
order has been interim measure may be
requested has had an opportunity to refused only:
present its case. a. At the request of the party against
Thereafter, paragraph (1) of this article whom it is invoked if
shall apply. the court is satisfied that:
1. Such refusal is warranted on the
Costs and Damages (Article 17 G) grounds set forth in
Q: What if the other party suffers article 36(1)(a)(i), (ii), (iii) or (iv); or
damages as a 2. The arbitral tribunal’s decision with
consequence of the provisional respect to the
remedy? provision of security in connection with
A: The party requesting an interim the interim
measure or applying for a measure issued by the arbitral tribunal
preliminary order shall be liable for any has not been
costs and damages complied with; or
caused by the measure or the order to any 3. The interim measure has been
party if the terminated or
arbitral tribunal later determines that, in suspended by the arbitral tribunal or,
the circumstances, where so
the measure or the order should not have empowered, by the court of the State in
been granted. The which the
arbitral tribunal may award such costs and arbitration takes place or under the law of
damages at any which
point during the proceedings. that interim measure was granted; or
b. If the court finds that:
Recognition and enforcement of 1. he interim measure is incompatible with
interim measures the powers
(Article 17 H) conferred upon the court unless the court
Q: What is the rule regarding the decides to
Recognition and reformulate the interim measure to the
enforcement of interim measures? extent
A: An interim measure issued by an necessary to adapt it to its own powers
arbitral tribunal shall be and
recognized as binding and, unless procedures for the purposes of enforcing
otherwise provided by the that
arbitral tribunal, enforced upon application interim measure and without modifying its
to the competent substance; or
court, irrespective of the country in which 2. Any of the grounds set forth in article
it was issued, 36(1)(b)(i) or
subject to the provisions of article 17.
apply to the recognition and enforcement free to agree on the procedure to be
of the followed by the
interim measure. arbitral tribunal in conducting the
proceedings.
Q: May the court where the 2. Failing such agreement, the arbitral
recognition or enforcement is tribunal may,
sought make that determination or subject to the provisions of this Law,
review of the substance conduct the
of the interim measure? arbitration in such manner as it considers
A: Any determination made by the court appropriate. The power conferred upon
on any ground in the arbitral
paragraph (1) of this article shall be tribunal includes the power to determine
effective only for the the
purposes of the application to recognize admissibility, relevance, materiality and
and enforce the weight of
interim measure. The court where any evidence.
recognition or Place of arbitration (Article 20)
enforcement is sought shall not, in making Q: Where is the place of arbitration?
that A:
determination, undertake a review of the 1. The parties are free to agree on the
substance of the place of
interim measure. arbitration.
Court-ordered interim measures 2. Failing such agreement, the place of
A court shall have the same power of arbitration shall
issuing an interim be determined by the arbitral tribunal
measure in relation to arbitration having regard
proceedings, irrespective of to the circumstances of the case, including
whether their place is in the territory of the
this State, as it has in convenience of the parties.
relation to proceedings in courts. The NOTE: The arbitral tribunal may, unless
court shall exercise otherwise agreed by
such power in accordance with its own the parties, meet at any place it considers
procedures in appropriate for
consideration of the specific features of consultation among its members, for
international hearing witnesses,
arbitration. experts or the parties, or for inspection of
CONDUCT OF ARBITRAL goods, other
PROCEEDINGS property or documents.
Q: How should the parties be treated Commencement of arbitral
during the arbitral proceedings (Article 21)
proceedings? Q: When does the arbitral proceeding
A: The parties shall be treated with commence?
equality and each party A: Unless otherwise agreed by the parties,
shall be given a full opportunity of the arbitral
presenting his case (Art. proceedings in respect of a particular
18). dispute commence on
the date on which a request for that
Q: What rules will govern the conduct dispute to be referred to
of arbitral arbitration is received by the respondent.
proceedings? Language of the proceedings (Article
A: 22)
Determination of rules of procedure Q: What should be the language of
(Article 19) the proceedings?
1. Subject to the provisions of this Law, A: The parties are free to agree on the
the parties are language or languages
to be used in the arbitral proceedings. claim or defense?
Failing such A: Unless otherwise agreed by the parties,
agreement, the arbitral tribunal shall either party may
determine the language amend or supplement his claim or defense
or languages to be used in the during the course
proceedings. This agreement of the arbitral proceedings, unless the
or determination, unless otherwise arbitral tribunal
specified therein, shall considers it inappropriate to allow such
apply to any written statement by a party, amendment having
any hearing and regard to the delay in making it.
any award, decision or other Hearings and written proceedings
communication by the arbitral (Article 24)
tribunal. Q: What should be the form of the
NOTE: The arbitral tribunal may order hearings?
that any documentary A: Subject to any contrary agreement by
evidence shall be accompanied by a the parties, the
translation into the arbitral tribunal shall decide whether:
language or languages agreed upon by a. to hold oral hearings for the
the parties or presentation of
determined by the arbitral tribunal. evidence or for oral argument, or
Statements of claim and defense (Art. b. whether the proceedings shall be
23) conducted on the
Q: When should the claimant file his basis of documents and other materials.
statement of claim? NOTE: However, unless the parties have
A: Within the period of time agreed by the agreed that no
parties or hearings shall be held, the arbitral tribunal
determined by the arbitral tribunal, the shall hold such
claimant shall state: hearings at an appropriate stage of the
1. the facts supporting his claim, proceedings, if so
2. the points at issue and requested by a party.
3. the relief or remedy sought,
Q: What is the rule on notice?
Q: How about the respondent? A: The parties shall be given sufficient
A: Within the period of time agreed by the advance notice of any
parties or hearing and of any meeting of the arbitral
determined by the arbitral tribunal, the tribunal for the
respondent shall: purposes of inspection of goods, other
1. State his defense in respect of these property or
particulars, documents.
unless the parties have otherwise agreed All statements, documents or other
as to the information supplied to
required elements of such statements. the arbitral tribunal by one party shall be
communicated to
Q: May the parties submit the other party. Also any expert report or
documents? evidentiary
A: The parties may submit with their document on which the arbitral tribunal
statements all may rely in making
documents they consider to be relevant or its decision shall be communicated to the
may add a parties.
reference to the documents or other Default of a party (Article 25)
evidence they will Q: When may a party be declared in
submit. default?
A: Unless otherwise agreed by the parties,
Q: May the parties amend or if, without
supplement his statement of showing sufficient cause:
1. the claimant fails to communicate The arbitral tribunal or a party with the
his statement of approval of the
claim in accordance with article 23(1), the arbitral tribunal may request from a
arbitral competent court of this
tribunal shall terminate the proceedings; State assistance in taking evidence.
2. the respondent fails to The court may execute the request within
communicate his statement its competence
of defense in accordance with article and according to its rules on taking
23(1), the evidence.
arbitral tribunal shall continue the CHAPTER VI. MAKING OF AWARD
proceedings ANDRules applicable to substance of
without treating such failure in itself as an dispute Article 28)
admission Q: What are the rules applicable to
of the claimant’s allegations; the substance of the
3. any party fails to appear at a case?
hearing or to produce A:
documentary evidence, the arbitral (1) The arbitral tribunal shall decide the
tribunal may dispute in
continue the proceedings and make the accordance with such rules of law as
award on are chosen by
the evidence before it. the parties as applicable to the
Expert appointed by arbitral tribunal substance of the
(Article 26) dispute. Any designation of the law or
Q: May experts be appointed by the legal system
arbitral tribunal? of a given State shall be construed, unless
A: Unless otherwise agreed by the parties, otherwise
the arbitral expressed, as directly referring to the
tribunal: substantive
a. may appoint one or more experts to law of that State and not to its conflict of
report to it on laws rules.
specific c issues to be determined by the (2) Failing any designation by the parties,
arbitral the arbitral
tribunal; tribunal shall apply the law determined by
b. may require a party to give the expert the
any relevant conflict of laws rules which it considers
information or to produce, or to provide applicable.
access to, (3) The arbitral tribunal shall decide ex
any relevant documents, goods or other aequo et bono or
property for as amiable compositeur only if the parties
his inspection. have
NOTE: Unless otherwise agreed by the expressly authorized it to do so.
parties, if a party so (4) In all cases, the arbitral tribunal shall
requests or if the arbitral tribunal decide in
considers it necessary, the accordance with the terms of the contract
expert shall, after delivery of his written or and shall
oral report, take into account the usages of the
participate in a hearing where the parties trade applicable
have the to the transaction.
opportunity to put questions to him and to Decision-making by panel of
present expert arbitrators (Article 29)
witnesses in order to testify on the points Q: How should the panel of
at issue. arbitrators decide on the case?
Court assistance in taking evidence A: In arbitral proceedings with more than
(Article 27) one arbitrator, any
decision of the arbitral tribunal shall be given or the award is an award.
made, unless
otherwise agreed by the parties, by a Q: What else should be stated in the
majority of all its award?
members. However, questions of A: The award shall state its date and the
procedure may be decided place of arbitration.
by a presiding arbitrator, if so authorized The award shall be deemed to have been
by the parties or all made at that place.
members of the arbitral tribunal. NOTE: After the award is made, a copy
Settlement (Article 30) signed by the
Q: In case the parties, during the arbitrators in accordance with paragraph
arbitration proceedings (1) of this article
settle the dispute, what is the effect shall be delivered to each party.
of such settlement to Termination of the proceedings
the proceedings? (Article 32)
A: If, during arbitral proceedings, the Q: When is the arbitral proceedings
parties settle the considered terminated?
dispute, the arbitral tribunal shall A: The arbitral proceedings are
terminate the proceedings terminated by the final award
and, if requested by the parties and not or by an order of the arbitral tribunal.
objected to by the
arbitral tribunal, record the settlement in Q: When should the arbitral tribunal
the form of an issue an order for the
arbitral award on agreed terms. termination of the arbitral
proceedings?
Q: When should the arbitral tribunal A: The arbitral tribunal shall issue an
render an award? order for the
A: An award on agreed terms shall be termination of the arbitral proceedings
made in accordance when:
with the provisions of article 31 and shall (a) the claimant withdraws his claim,
state that it is an unless the
award. Such an award has the same respondent objects thereto and the
status and effect as any arbitral tribunal
other award on the merits of the case. recognizes a legitimate interest on his part
Form and contents of award (Article in
31) obtaining a final settlement of the dispute;
Q: What should be the form of the (b) the parties agree on the
award? termination of the
A: The award shall be made in writing proceedings;
and shall be signed by (c) the arbitral tribunal finds that the
the arbitrator or arbitrators. In arbitral continuation of
proceedings with the proceedings has for any other
more than one arbitrator, the signatures reason become
of the majority of unnecessary or impossible.
all members of the arbitral tribunal Correction and interpretation of
shall suffice, provided award; additional award
that the reason for any omitted signature Q: When may the party request the
is stated. arbitral tribunal to
correct the award?
Q: Should the reasons for the award A: Within thirty days of receipt of the
be stated? award, unless another
A: The award shall state the reasons upon period of time has been agreed upon by
which it is based, the parties:
unless the parties have agreed that no a. A party, with notice to the other party,
reasons are to be may request
the arbitral tribunal to correct in the agreement is not valid under the law to
award any which the
errors in computation, any clerical or parties have subjected it or, failing any
typographical indication
errors or any errors of similar nature; thereon, under the law of this State; or
b. If so agreed by the parties, a party, (ii) the party making the application was
with notice to not given
the other party, may request the arbitral proper notice of the appointment of an
tribunal to arbitrator or
give an interpretation of a specific of the arbitral proceedings or was
point or part of otherwise unable
the award. to present his case; or
If the arbitral tribunal considers the (iii) the award deals with a dispute not
request to be justified, it contemplated by
shall make the correction or give the or not falling within the terms of the
interpretation within submission to
thirty days of receipt of the request. The arbitration, or contains decisions on
interpretation shall matters beyond
form part of the award. the scope of the submission to arbitration,
provided
Q: Can the arbitration tribunal correct that, if the decisions on matters submitted
the error on its own to
initiative? arbitration can be separated from those
A: Yes, the arbitral tribunal may correct not so
any error on its own submitted, only that part of the award
initiative within thirty days of the date of which
the award. contains decisions on matters not
NOTE: Unless otherwise agreed by the submitted to
parties, a party, with arbitration may be set aside; or
notice to the other party, may request, (iv) the composition of the arbitral tribunal
within thirty days of or the
receipt of the award, the arbitral tribunal arbitral procedure was not in accordance
to make an with the
additional award as to claims agreement of the parties, unless such
presented in the arbitral agreement
proceedings but omitted from the award. was in conflict with a provision of this Law
If the arbitral from
tribunal considers the request to be which the parties cannot derogate, or,
justified, it shall make failing such
the additional award within sixty days. agreement, was not in accordance with
CHAPTER VII. RECOURSE AGAINST this Law; or
AWAarbitral award (Article 34) b. the court finds that:
Q: Under what instance may an (i) the subject-matter of the dispute is not
arbitral award be set aside? capable of
A: An arbitral award may be set aside by settlement by arbitration under the law of
the court specified in this State;
article 6 only if the party making the or
application furnishes (ii) the award is in conflict with the public
proof that: policy of this
a. The party making the application State.
furnishes proof that: NOTE: An application for setting aside
(i) a party to the arbitration agreement may not be made after
referred to in three months have elapsed from the date
article 7 was under some incapacity; or on which the party
the said
making that application had received the invoked, if that party furnishes to the
award or, if a competent
request had been made under article 33, court where recognition or enforcement is
from the date on sought
which that request had been disposed of proof that:
by the arbitral b. a party to the arbitration agreement
tribunal. referred to in
article 7 was under some incapacity; or
Q: Can the court be given the the said
opportunity to resume the agreement is not valid under the law to
arbitral proceedings? which the
A: The court, when asked to set aside an parties have subjected it or, failing any
award, may, where indication
appropriate and so requested by a party, thereon, under the law of the country
suspend the setting where the
aside proceedings for a period of award was made; or
time determined by it in c. the party against whom the award is
order to give the arbitral tribunal an invoked was
opportunity to resume not given proper notice of the
the arbitral proceedings or to take appointment of an
such other action as in arbitrator or of the arbitral proceedings or
the arbitral tribunal’s opinion will was
eliminate the grounds for otherwise unable to present his case; or
setting aside. d. the award deals with a dispute not
CHAPTER VIII. RECOGNITION AND contemplated by
ENFORCEMENT OFenforcement or not falling within the terms of the
(Article 35) submission to
(1) An arbitral award, irrespective of the arbitration, or it contains decisions on
country in which it matters
was made, shall be recognized as binding beyond the scope of the submission to
and, upon arbitration,
application in writing to the competent provided that, if the decisions on matters
court, shall be submitted
enforced subject to the provisions of this to arbitration can be separated from those
article and of not so
article 36. submitted, that part of the award which
(2) The party relying on an award or contains
applying for its decisions on matters submitted to
enforcement shall supply the original arbitration may
award or a copy be recognized and enforced; or
thereof. If the award is not made in an e. the composition of the arbitral tribunal
official language or the
of this State, the court may request the arbitral procedure was not in accordance
party to supply a with the
translation thereof into such language. agreement of the parties or, failing such
Grounds for refusing recognition or agreement,
enforcement (Article 36) was not in accordance with the law of the
Q: When can the award be refused? country
A: Recognition or enforcement of an where the arbitration took place; or
arbitral award, f. the award has not yet become binding
irrespective of the country in which it was on the parties
made, may be or has been set aside or suspended by a
refused only: court of the
a. at the request of the party against country in which, or under the law of
whom it is which, that
award was made; or A: An arbitration is "commercial" if it
(b) if the court finds that: covers matters arising
(i) the subject-matter of the dispute is not from all relationships of a commercial
capable of nature, whether
settlement by arbitration under the law of contractual or not.
this State;
or Q: What are the relationships of a
(ii) the recognition or enforcement of the transaction covered?
award would A:
be contrary to the public policy of this 1. any trade transaction for the supply or
State. exchange of
Republic Act No. 9285 goods or services;
AN ACT TO INSTITUTIONALIZE THE 2. distribution agreements; construction of
USE OF AN ALTERNATIVE works;
CHAPTER 4 - INTERNATIONAL 3. commercial representation or agency;
COMMERCIAL ARBITRATION 4. factoring;
SEC. 19. Adoption of the Model Law 5. leasing,
on InternationalCommercial Arbitratio 6. consulting;
International commercial arbitration shall 7. engineering;
be 8. licensing;
governed by the Model Law on 9. investment;
International Commercial 10. financing;
Arbitration (the "Model Law") adopted by 11. banking;
the United Nations 12. insurance;
Commission on International Trade Law on 13. joint venture and
June 21, 1985 14. other forms of industrial or business
(United Nations Document A/40/17) and cooperation;
recommended 15. carriage of goods or passengers by air,
approved on December 11, 1985, copy of sea, rail or
which is hereto road
attached as Appendix "A". SEC. 22. Legal Representation in
SEC. 20. Interpretation of Model Law International Arbitration
Q: How should the Model Law be Q: What is the rule regarding the
interpreted? Legal Representation in
A: In interpreting the Model Law, regard International Arbitration? May a
shall be had to: foreign lawyer be a
a. its international origin and representative?
b. to the need for uniformity in its A: In international arbitration conducted in
interpretation and the Philippines, a
c. resort may be made to the travaux party may be presented by any person of
preparatories and his
d. the report of the Secretary General of choice. Provided, that such representative,
the United unless admitted to
Nations Commission on International the practice of law in the Philippines, shall
Trade Law not be authorized
dated March 25, 1985 entitled, to appear as counsel in any Philippine
"International court, or any other
Commercial Arbitration: Analytical quasi-judicial body whether or not such
Commentary on appearance is in
Draft Trade identified by reference relation to the arbitration in which he
number A/CN. appears.
9/264." SEC. 23. Confidential of Arbitration
SEC. 21. Commercial Arbitration Proceedings
Q: When is arbitration considered as Q: May the arbitration proceedings be
commercial? published?
A: The arbitration proceedings, including A: In interpreting the Act, the court shall
the records, have due regard to
evidence and the arbitral award, shall be the policy of the law in favor of arbitration.
considered
confidential and shall not be published Q: What is the rule in case of multiple
parties?
Q: What are the exceptions? A: Where action is commenced by or
A: Except against multiple parties,
1. with the consent of the parties, or one or more of whom are parties who are
2. for the limited purpose of disclosing to bound by the
the court of arbitration agreement although the civil
relevant documents in cases where resort action may continue
to the as to those who are not bound by such
court is allowed herein. Provided, arbitration
however, that the agreement.
court in which the action or the appeal is SEC. 26. Meaning of "Appointing
pending Authority
may issue a protective order to prevent or Q: Who is an appointing authority?
prohibit A: "Appointing Authority" as used in the
disclosure of documents or information Model Law shall
containing mean the person or institution named in
secret processes, developments, research the arbitration
and other agreement as the appointing authority; or
information where it is shown that the the regular
applicant arbitration arbitration institution under
shall be materially prejudiced by an whose rules the
authorized arbitration is agreed to be conducted.
disclosure thereof. Where the parties have
SEC. 24. Referral to Arbitration agreed to submit their dispute to
Q: When may the parties invoke the institutional arbitration
arbitration clause? rules, and unless they have agreed to a
A: A court before which an action is different procedure,
brought in a matter they shall be deemed to have agreed to
which is the subject matter of an procedure under
arbitration agreement shall, such arbitration rules for the selection and
a. if at least one party so requests not appointment of
later that the arbitrators. In ad hoc arbitration, the
pre-trial conference, default appointment of
b. or upon the request of both parties an arbitrator shall be made by the
thereafter, refer National President of the
the parties to arbitration Integrated Bar of the Philippines (IBP) or
his duly authorized
Q: What are the instances where the representative.
court may refuse the SEC. 27. What Functions May be
invocation of the arbitration? Performed by Appointing
A: Authority
1. unless it finds that the arbitration The functions referred to in Articles 11(3),
agreement is null 11(4), 13(3) and
and void, 14(1) of the Model Law shall be performed
2. inoperative or by the Appointing
3. incapable of being performed. Authority, unless the latter shall fail or
SEC. 25. Interpretation of the Act refuse to act within
Q: What is the rule in interpretation thirty (30) days from receipt of the
of this Act in request in which case the
connection with the policy of the law?
applicant may renew the application with conditioned upon the provision of security
the Court. or any act or
SEC. 28. Grant of Interim Measure of omission specified in the order.
Protection
Q: May the court grant interim Q: What is the form of the application
measures of protection in for the interim
favor of one party? From whom shall measure?
it be applied? A: Interim or provisional relief is
A: requested by written
a. It is not incompatible with an arbitration application transmitted by reasonable
agreement means to the Court or
for a party to request, before constitution arbitral tribunal as the case may be and
of the the party against
tribunal, from a Court an interim measure whom the relief is sought, describing in
of appropriate detail the
protection and for the Court to grant such precise relief, the party against whom the
measure. relief is requested,
b. After constitution of the arbitral tribunal the grounds for the relief, and evidence
and during supporting the
arbitral proceedings, a request for an request.
interim
measure of protection or modification Q: How is the interim measure
thereof, may enforced?
be made with the arbitral tribunal or to the A: Either party may apply with the Court
extent for assistance in
that the arbitral tribunal has no power to Implementing or enforcing an interim
act or is measure ordered by an
unable to act effectively, the request may arbitral tribunal.
be made
with the Court. Q: What if a party does not comply
with the order?
Q: When is the arbitral tribunal A: A party who does not comply with the
deemed constituted? order shall be liable
A: The arbitral tribunal is deemed for:
constituted when the sole a. all damages resulting from
arbitrator or the third arbitrator who has noncompliance,
been nominated, has b. including all expenses, and
accepted the nomination and written c. reasonable attorney's fees, paid in
communication of said obtaining the
nomination and acceptance has been order's judicial enforcement.
received by the party SEC. 29. Further Authority for
making request. Arbitrator to Grant Interim
Measure of Protection
Q: What are the purposes of the NOTE: Unless otherwise agreed by the
interim measures? parties, the arbitral
A: Such relief may be granted: tribunal may, at the request of a party,
1. to prevent irreparable loss or injury: order any party to
2. to provide security for the performance take such interim measures of protection
of any as the arbitral
obligation; tribunal may consider necessary in
3. to produce or preserve any evidence; or respect of the subject
4. to compel any other appropriate act or matter of the dispute following the rules in
omission. Section 28,
NOTE: The order granting provisional paragraph 2. Such interim measures may
relief may be include but shall not
be limited to preliminary injuction directed other communication by the arbitral
against a party, tribunal.
appointment of receivers or detention, NOTE: The arbitral tribunal may order
preservation, that any documentary
inspection of property that is the subject evidence shall be accompanied by a
of the dispute in translation into the
arbitration. Either party may apply with language or languages agreed upon by
the Court for the parties or
assistance in implementing or enforcing determined in accordance with paragraph
an interim measures 1 of this section.
ordered by an arbitral tribunal. REFERENCES
SEC. 30. Place of Arbitration
Q: Where is the place of arbitration?
A:
GR: The parties are free to agree on the
place of arbitration.
XPN: Failing such agreement, the place of
arbitration shall be
in Metro Manila, unless the arbitral
tribunal, having regard to
the circumstances of the case, including
the convenience of
the parties shall decide on a different
place of arbitration.
NOTE: The arbitral tribunal may, unless
otherwise agreed by
the parties, meet at any place it considers
appropriate for
consultation among its members, for
hearing witnesses,
experts, or the parties, or for inspection of
goods, other
property or documents.
SEC. 31. Language of the Arbitration
Q: What is the rule as to the language
of the arbitration?
A:
GR: The parties are free to agree on the
language or
languages to be used in the arbitral
proceedings.
XPN: Failing such agreement, the
language to be used shall
be English in international arbitration, and
English or Filipino
for domestic arbitration, unless the arbitral
tribunal shall
determine a different or another language
or languages to be
used in the proceedings. This agreement
or determination,
unless otherwise specified therein, shall
apply to any written
statement by a party, any hearing and any
award, decision or
Republic of the Philippines Congress prejudice to the adoption by the Supreme
of the Philippines Metro Manila Court of any ADR system, such as
mediation, conciliation, arbitration, or any
Twelfth Congress Third Regular combination thereof as a means of
Session achieving speedy and efficient means of
resolving cases pending before all courts
Begun and held in Metro Manila, on
in the Philippines which shall be governed
Monday, the twenty-eight day of July, two
by such rules as the Supreme Court may
thousand three.
approve from time to time.
REPUBLIC ACT NO. 9285
SEC. 3. Definition of Terms. - For
April 2, 2004 purposes of this Act, the term:

AN ACT TO INSTITUTIONALIZE THE (a) "Alternative Dispute Resolution

USE OF AN ALTERNATIVE DISPUTE System" means any process or procedure
RESOLUTION SYSTEM IN THE used to resolve a dispute or controversy,
PHILIPPINES AND TO ESTABLISH THE other than by adjudication of a presiding
OFFICE FOR ALTERNATIVE DISPUTE judge of a court or an officer of a
RESOLUTION, AND FOR OTHER government agency, as defined in this Act,
PURPOSES in which a neutral third party participates
to assist in the resolution of issues, which
Be it enacted by the Senate and House of includes arbitration, mediation,
Representatives of the Philippines in conciliation, early neutral evaluation, mini-
Congress assembled: trial, or any combination thereof;

CHAPTER 1 - GENERAL PROVISIONS (b) "ADR Provider" means institutions or

persons accredited as mediator,
SECTION 1. Title. - This act shall be conciliator, arbitrator, neutral evaluator, or
known as the "Alternative Dispute any person exercising similar functions in
Resolution Act of 2004." any Alternative Dispute Resolution
system. This is without prejudice to the
SEC. 2. Declaration of Policy. - it is
rights of the parties to choose non-
hereby declared the policy of the State to
accredited individuals to act as mediator,
actively promote party autonomy in the
conciliator, arbitrator, or neutral evaluator
resolution of disputes or the freedom of
of their dispute. Page 2 of 15
the party to make their own arrangements
to resolve their disputes. Towards this
end, the State shall encourage and
actively promote the use of Alternative Whenever reffered to in this Act, the term
Dispute Resolution (ADR) as an important "ADR practitioners" shall refer to
means to achieve speedy and impartial individuals acting as mediator, conciliator,
justice and declog court dockets. As such, arbitrator or neutral evaluator;
the State shall provide means for the use
of ADR as an efficient tool and an (c) "Authenticate" means to sign,
alternative procedure for the resolution of execute or adopt a symbol, or encrypt a
appropriate cases. Likewise, the State record in whole or in part, intended to
shall enlist active private sector identity the authenticating party and to
participation in the settlement of disputes adopt, accept or establish the authenticity
through ADR. This Act shall be without of a record or term;
(d) "Arbitration" means a voluntary (j) "Convention State" means a State
dispute resolution process in which one or that is a member of the New York
more arbitrators, appointed in accordance Convention;
with the agreement of the parties, or rules
promulgated pursuant to this Act, resolve (k) "Court" as referred to in Article 6 of
a dispute by rendering an award; the Model Law shall mean a Regional Trial
Court;
(e) "Arbitrator" means the person
appointed to render an award, alone or (l) "Court-Annexed Mediation" means
with others, in a dispute that is the subject any mediation process conducted under
of an arbitration agreement; the auspices of the court, after such court
has acquired jurisdiction of the dispute;
(f) "Award" means any partial or final
decision by an arbitrator in resolving the (m) "Court-Referred Mediation" means
issue in a controversy; mediation ordered by a court to be
conducted in accordance with the
(g) "Commercial Arbitration" An Agreement of the Parties when as action is
arbitration is "commercial if it covers prematurely commenced in violation of
matter arising from all relationships of a such agreement;
commercial nature, whether contractual or
not; (n) "Early Neutral Evaluation" means
an ADR process wherein parties and their
(h) "Confidential information" means lawyers are brought together early in a
any information, relative to the subject of pre-trial phase to present summaries of
mediation or arbitration, expressly their cases and receive a nonbinding
intended by the source not to be assessment by an experienced, neutral
disclosed, or obtained under person, with expertise in the subject in the
circumstances that would create a substance of the dispute; Page 3 of 15
reasonable expectation on behalf of the
source that the information shall not be
disclosed. It shall include (1)
(o) "Government Agency" means any
communication, oral or written, made in a
government entity, office or officer, other
dispute resolution proceedings, including
than a court, that is vested by law with
any memoranda, notes or work product of
quasi-judicial power to resolve or
the neutral party or non-party participant,
adjudicate dispute involving the
as defined in this Act; (2) an oral or written
government, its agencies and
statement made or which occurs during
instrumentalities, or private persons;
mediation or for purposes of considering,
conducting, participating, initiating, (p) "International Party" shall mean an
continuing of reconvening mediation or entity whose place of business is outside
retaining a mediator; and (3) pleadings, the Philippines. It shall not include a
motions manifestations, witness domestic subsidiary of such international
statements, reports filed or submitted in party or a coventurer in a joint venture
an arbitration or for expert evaluation; with a party which has its place of
business in the Philippines.
(i) "Convention Award" means a foreign
arbitral award made in a Convention The term foreigner arbitrator shall mean a
State; person who is not a national of the
Philippines.
(q) "Mediation" means a voluntary who participates in a mediation
process in which a mediator, selected by proceeding as a witness, resource person
the disputing parties, facilitates or expert;
communication and negotiation, and
assist the parties in reaching a voluntary (aa) "Proceeding" means a judicial,
agreement regarding a dispute. administrative, or other adjudicative
process, including related pre-hearing
(r) "Mediator" means a person who motions, conferences and discovery;
conducts mediation;
(bb) "Record" means an information
(s) "Mediation Party" means a person written on a tangible medium or stored in
who participates in a mediation and whose an electronic or other similar medium,
consent is necessary to resolve the retrievable form; and
dispute;
(cc) "Roster" means a list of persons
(t) "Mediation-Arbitration" or Med-Arb qualified to provide ADR services as
is a step dispute resolution process neutrals or to serve as arbitrators. Page 4
involving both mediation and arbitration; of 15

(u) "Mini-Trial" means a structured

dispute resolution method in which the
merits of a case are argued before a panel SEC. 4. Electronic Signatures in
comprising senior decision makers with or Global and E-Commerce Act. - The
without the presence of a neutral third provisions of the Electronic Signatures in
person after which the parties seek a Global and E-Commerce Act, and its
negotiated settlement; implementing Rules and Regulations shall
apply to proceeding contemplated in this
(v) "Model Law" means the Model Law on Act.
International Commercial Arbitration
adopted by the United Nations SEC. 5. Liability of ADR Provider and
Commission on International Trade Law on Practitioner. - The ADR providers and
21 June 1985; practitioners shall have the same civil
liability for the Acts done in the
(w) "New York Convention" means the performance of then duties as that of
United Nations Convention on the public officers as provided in Section 38
Recognition and Enforcement of Foreign (1), Chapter 9, Book of the Administrative
Arbitral Awards approved in 1958 and Code of 1987.
ratified by the Philippine Senate under
Senate Resolution No. 71; SEC. 6. Exception to the Application
of this Act. - The provisions of this Act
(x) "Non-Convention Award" means a shall not apply to resolution or settlement
foreign arbitral award made in a State of the following: (a) labor disputes covered
which is not a Convention State; by Presidential Decree No. 442, otherwise
known as the Labor Code of the
(y) "Non-Convention State" means a Philippines, as amended and its
State that is not a member of the New Implementing Rules and Regulations; (b)
York Convention. the civil status of persons; (c) the validity
of a marriage; (d) any ground for legal
(z) "Non-Party Participant" means a
separation; (e) the jurisdiction of courts;
person, other than a party or mediator,
(f) future legitime; (g) criminal liability;
and (h) those which by law cannot be (d) In such an adversarial proceeding, the
compromised. following persons involved or previously
involved in a mediation may not be
CHAPTER 2 - MEDIATION compelled to disclose confidential
information obtained during mediation: (1)
SEC. 7. Scope. - The provisions of this
the parties to the dispute; (2) the
Chapter shall cover voluntary mediation,
mediator or mediators; (3) the counsel for
whether ad hoc or institutional, other than
the parties; (4) the nonparty participants;
court-annexed. The term "mediation' shall
(5) any persons hired or engaged in
include conciliation.
connection with the mediation as
SEC. 8. Application and secretary, stenographer, clerk or
Interpretation. - In applying construing assistant; and (6) any other person who
the provisions of this Chapter, obtains or possesses confidential
consideration must be given to the need information by reason of his/her
to promote candor or parties and profession.
mediators through confidentiality of the
(e) The protections of this Act shall
mediation process, the policy of fostering
continue to apply even of a mediator is
prompt, economical, and amicable
found to have failed to act impartially.
resolution of disputes in accordance with
Page 5 of 15
the principles of integrity of determination
by the parties, and the policy that the
decision-making authority in the
mediation process rests with the parties. (f) a mediator may not be called to testify
to provide information gathered in
SEC. 9. Confidentiality of Information. mediation. A mediator who is wrongfully
- Information obtained through mediation subpoenaed shall be reimbursed the full
proceedings shall be subject to the cost of his attorney's fees and related
following principles and guidelines: expenses.

(a) Information obtained through SEC. 10. Waiver of Confidentiality. - A

mediation shall be privileged and privilege arising from the confidentiality of
confidential. information may be waived in a record, or
orally during a proceeding by the mediator
(b) A party, a mediator, or a nonparty
and the mediation parties.
participant may refuse to disclose and
may prevent any other person from A privilege arising from the confidentiality
disclosing a mediation communication. of information may likewise be waived by
a nonparty participant if the information is
(c) Confidential Information shall not be
provided by such nonparty participant.
subject to discovery and shall be
inadmissible if any adversarial proceeding, A person who discloses confidential
whether judicial or quasi-judicial, However, information shall be precluded from
evidence or information that is otherwise asserting the privilege under Section 9 of
admissible or subject to discovery does this Chapter to bar disclosure of the rest of
not become inadmissible or protected the information necessary to a complete
from discovery solely by reason of its use understanding of the previously disclosed
in a mediation. information. If a person suffers loss or
damages in a judicial proceeding against
the person who made the disclosure.
A person who discloses or makes a misconduct of malpractice filed against a
representation about a mediation is party, nonparty participant, or
preclude from asserting the privilege representative of a party based on
under Section 9, to the extent that the conduct occurring during a mediation.
communication prejudices another person Page 6 of 15
in the proceeding and it is necessary for
the person prejudiced to respond to the
representation of disclosure.
(b) There is no privilege under Section 9 if
SEC. 11. Exceptions to Privilege. - a court or administrative agency, finds,
after a hearing in camera, that the party
(a) There is no privilege against disclosure seeking discovery of the proponent of the
under Section 9 if mediation evidence has shown that the evidence is
communication is: not otherwise available, that there is a
need for the evidence that substantially
(1) in an agreement evidenced by a record outweighs the interest in protecting
authenticated by all parties to the confidentiality, and the mediation
agreement; communication is sought or offered in:

(2) available to the public or that is made (1) a court proceeding involving a crime or
during a session of a mediation which is felony; or
open, or is required by law to be open, to
the public; (2) a proceeding to prove a claim or
defense that under the law is sufficient to
(3) a threat or statement of a plan to reform or avoid a liability on a contract
inflict bodily injury or commit a crime of arising out of the mediation.
violence;
(c) A mediator may not be compelled to
(4) internationally used to plan a crime, provide evidence of a mediation
attempt to commit, or commit a crime, or communication or testify in such
conceal an ongoing crime or criminal proceeding.
activity;
(d) If a mediation communication is not
(5) sought or offered to prove or disprove privileged under an exception in
abuse, neglect, abandonment, or subsection (a) or (b), only the portion of
exploitation in a proceeding in which a the communication necessary for the
public agency is protecting the interest of application of the exception for
an individual protected by law; but this nondisclosure may be admitted. The
exception does not apply where a child admission of particular evidence for the
protection matter is referred to mediation limited purpose of an exception does not
by a court or a public agency participates render that evidence, or any other
in the child protection mediation; mediation communication, admissible for
any other purpose.
(6) sought or offered to prove or disprove
a claim or complaint of professional SEC. 12. Prohibited Mediator Reports.
misconduct or malpractice filed against - A mediator may not make a report,
mediator in a proceeding; or assessment, evaluation, recommendation,
finding, or other communication regarding
(7) sought or offered to prove or disprove
a mediation to a court or agency or other
a claim of complaint of professional
authority that make a ruling on a dispute special qualifications of a mediator are
that is the subject of a mediation, except: required in the mediation agreement or by
the mediation parties.
(a) Where the mediation occurred or has
terminated, or where a settlement was SEC. 14. Participation in Mediation. -
reached. Except as otherwise provided in this Act, a
party may designate a lawyer or any other
(b) As permitted to be disclosed under person to provide assistance in the
Section 13 of this Chapter. mediation. A lawyer of this right shall be
made in writing by the party waiving it. A
SEC. 13. Mediator's Disclosure and
waiver of participation or legal
Conflict of Interest. - The mediation
representation may be rescinded at any
shall be guided by the following operative
time.
principles:
SEC. 15. Place of Mediation. - The
(a) Before accepting a mediation, an
parties are free to agree on the place of
individual who is requested to serve as a
mediation. Failing such agreement, the
mediator shall:
place of mediation shall be any place
(1) make an inquiry that is reasonable convenient and appropriate to all parties.
under the circumstances to determinate
SEC. 16. Effect of Agreement to
whether there are any known facts that a
Submit Dispute to Mediation Under
reasonable individual would consider likely
Institutional Rules. - An agreement to
to affect the impartiality of the mediator,
submit a dispute to mediation by any
including a financial or personal interest in
institution shall include an agreement to
the outcome of the mediation and any
be bound by the internal mediation and
existing or past relationship with a party
administrative policies of such institution.
or foreseeable participant in the
Further, an agreement to submit a dispute
mediation; and
to mediation under international
(2) disclosure to the mediation parties any mediation rule shall be deemed to include
such fact known or learned as soon as is an agreement to have such rules govern
practical before accepting a mediation. the mediation of the dispute and for the
mediator, the parties, their respective
(b) If a mediation learns any fact counsel, and nonparty participants to
described in paragraph (a) (1) of this abide by such rules.
section after accepting a mediation, the
mediator shall disclose it as soon as In case of conflict between the
practicable. institutional mediation rules and the
provisions of this Act, the latter shall
At the request of a mediation party, an prevail.
individual who is requested to serve as
mediator shall disclose his/her SEC. 17. Enforcement of Mediated
qualifications to mediate a dispute. Page 7 Settlement Agreement. - The mediation
of 15 shall be guided by the following operative
principles:

(a) A settlement agreement following

This Act does not require that a mediator successful mediation shall be prepared by
shall have special qualifications by the parties with the assistance of their
background or profession unless the
respective counsel, if any, and by the forms of ADR such as but not limited to (a)
mediator. the evaluation of a third person or (b) a
mini-trial, (c) mediation-arbitration, or a
The parties and their respective counsels combination thereof.
shall endeavor to make the terms and
condition thereof complete and make For purposes of this Act, the use of other
adequate provisions for the contingency of ADR forms shall be governed by Chapter 2
breach to avoid conflicting interpretations of this Act except where it is combined
of the agreement. with arbitration in which case it shall
likewise be governed by Chapter 5 of this
(b) The parties and their respective Act.
counsels, if any, shall sign the settlement
agreement. The mediator shall certify that CHAPTER 4 - INTERNATIONAL
he/she explained the contents of the COMMERCIAL ARBITRATION
settlement agreement to the parties in a
language known to them. SEC. 19. Adoption of the Model Law
on International Commercial
(c) If the parties so desire, they may Arbitration. - International commercial
deposit such settlement agreement with arbitration shall be governed by the Model
the appropriate Clerk of a Regional Trial Law on International Commercial
Court of the place where one of the Arbitration (the "Model Law") adopted by
parties resides. Where there is a need to the United Nations Commission on
enforce the settlement agreement, a International Trade Law on June 21, 1985
petition may be filed by any of the parties (United Nations Document A/40/17) and
with the same court, in which case, the recommended approved on December 11,
court shall proceed summarily to hear the 1985, copy of which is hereto attached as
petition, in accordance with such rules of Appendix "A".
procedure as may be promulgated by the
Supreme Court. SEC. 20. Interpretation of Model Law.
- In interpreting the Model Law, regard
(d) The parties may agree in the shall be had to its international origin and
settlement agreement that the mediator to the need for uniformity in its
shall become a sole arbitrator for the interpretation and resort may be made to
dispute and shall treat the settlement the travaux preparatories and the report
agreement as an arbitral award which of the Secretary General of the United
shall be subject to enforcement under Nations Commission on International
Republic Act No. 876, otherwise known as Trade Law dated March 25, 1985 entitled,
the Arbitration Law, notwithstanding the "International Commercial Arbitration:
provisions of Executive Order No. 1008 for Analytical Commentary on Draft Trade
mediated dispute outside of the CIAC. identified by reference number A/CN.
9/264."
CHAPTER 3 - OTHER ADR FORMS Page
8 of 15 SEC. 21. Commercial Arbitration. - An
arbitration is "commercial" if it covers
matters arising from all relationships of a
commercial nature, whether contractual or
SEC. 18. Referral of Dispute to other
not. Relationships of a transactions: any
ADR Forms. - The parties may agree to
trade transaction for the supply or
refer one or more or all issues arising in a
exchange of goods or services;
dispute or during its pendency to other
distribution agreements; construction of arbitration unless it finds that the
works; commercial representation or arbitration agreement is null and void,
agency; factoring; leasing, consulting; inoperative or incapable of being
engineering; licensing; investment; performed. Page 9 of 15
financing; banking; insurance; joint
venture and other forms of industrial or
business cooperation; carriage of goods or
SEC. 25. Interpretation of the Act. - In
passengers by air, sea, rail or road.
interpreting the Act, the court shall have
SEC. 22. Legal Representation in due regard to the policy of the law in favor
International Arbitration. - In of arbitration. Where action is commenced
international arbitration conducted in the by or against multiple parties, one or more
Philippines, a party may be presented by of whom are parties who are bound by the
any person of his choice. Provided, that arbitration agreement although the civil
such representative, unless admitted to action may continue as to those who are
the practice of law in the Philippines, shall not bound by such arbitration agreement.
not be authorized to appear as counsel in
SEC. 26. Meaning of "Appointing
any Philippine court, or any other quasi-
Authority.". - "Appointing Authority" as
judicial body whether or not such
used in the Model Law shall mean the
appearance is in relation to the arbitration
person or institution named in the
in which he appears.
arbitration agreement as the appointing
SEC. 23. Confidential of Arbitration authority; or the regular arbitration
Proceedings. - The arbitration arbitration institution under whose rules
proceedings, including the records, the arbitration is agreed to be conducted.
evidence and the arbitral award, shall be Where the parties have agreed to submit
considered confidential and shall not be their dispute to institutional arbitration
published except (1) with the consent of rules, and unless they have agreed to a
the parties, or (2) for the limited purpose different procedure, they shall be deemed
of disclosing to the court of relevant to have agreed to procedure under such
documents in cases where resort to the arbitration rules for the selection and
court is allowed herein. Provided, appointment of arbitrators. In ad hoc
however, that the court in which the arbitration, the default appointment of an
action or the appeal is pending may issue arbitrator shall be made by the National
a protective order to prevent or prohibit President of the Integrated Bar of the
disclosure of documents or information Philippines (IBP) or his duly authorized
containing secret processes, representative.
developments, research and other
SEC. 27. What Functions May be
information where it is shown that the
Performed by Appointing Authority. -
applicant shall be materially prejudiced by
The functions referred to in Articles 11(3),
an authorized disclosure thereof.
11(4), 13(3) and 14(1) of the Model Law
SEC. 24. Referral to Arbitration. - A shall be performed by the Appointing
court before which an action is brought in Authority, unless the latter shall fail or
a matter which is the subject matter of an refuse to act within thirty (30) days from
arbitration agreement shall, if at least one receipt of the request in which case the
party so requests not later that the pre- applicant may renew the application with
trial conference, or upon the request of the Court.
both parties thereafter, refer the parties to
SEC. 28. Grant of Interim Measure of transmitted by reasonable means to the
Protection. - Court or arbitral tribunal as Page 10 of 15

(a) It is not incompatible with an

arbitration agreement for a party to
request, before constitution of the the case may be and the party against
tribunal, from a Court an interim measure whom the relief is sought, describing in
of protection and for the Court to grant appropriate detail the precise relief, the
such measure. After constitution of the party against whom the relief is
arbitral tribunal and during arbitral requested, the grounds for the relief, and
proceedings, a request for an interim evidence supporting the request.
measure of protection or modification
(5) The order shall be binding upon the
thereof, may be made with the arbitral
parties.
tribunal or to the extent that the arbitral
tribunal has no power to act or is unable (6) Either party may apply with the Court
to act effectively, the request may be for assistance in Implementing or
made with the Court. The arbitral tribunal enforcing an interim measure ordered by
is deemed constituted when the sole an arbitral tribunal.
arbitrator or the third arbitrator who has
been nominated, has accepted the (7) A party who does not comply with the
nomination and written communication of order shall be liable for all damages
said nomination and acceptance has been resulting from noncompliance, including
received by the party making request. all expenses, and reasonable attorney's
fees, paid in obtaining the order's judicial
(b) The following rules on interim or enforcement.
provisional relief shall be observed:
SEC. 29. Further Authority for
(1) Any party may request that provision Arbitrator to Grant Interim Measure
relief be granted against the adverse of Protection. - Unless otherwise agreed
party: by the parties, the arbitral tribunal may, at
the request of a party, order any party to
(2) Such relief may be granted:
take such interim measures of protection
(i) to prevent irreparable loss or injury: as the arbitral tribunal may consider
necessary in respect of the subject matter
(ii) to provide security for the performance of the dispute following the rules in
of any obligation; Section 28, paragraph 2. Such interim
measures may include but shall not be
(iii) to produce or preserve any evidence; limited to preliminary injuction directed
or against a party, appointment of receivers
or detention, preservation, inspection of
(iv) to compel any other appropriate act or
property that is the subject of the dispute
omission.
in arbitration. Either party may apply with
(3) The order granting provisional relief the Court for assistance in implementing
may be conditioned upon the provision of or enforcing an interim measures ordered
security or any act or omission specified in by an arbitral tribunal.
the order.
SEC. 30. Place of Arbitration. - The
(4) Interim or provisional relief is parties are free to agree on the place of
requested by written application arbitration. Failing such agreement, the
place of arbitration shall be in Metro
Manila, unless the arbitral tribunal, having
regard to the circumstances of the case, SEC. 33. Applicability to Domestic
including the convenience of the parties Arbitration. - Article 8, 10, 11, 12, 13,
shall decide on a different place of 14, 18 and 19 and 29 to 32 of the Model
arbitration. Law and Section 22 to 31 of the preceding
Chapter 4 shall apply to domestic
The arbitral tribunal may, unless otherwise arbitration.
agreed by the parties, meet at any place it
considers appropriate for consultation CHAPTER 6 - ARBITRATION OF
among its members, for hearing CONSTRUCTION DISPUTES
witnesses, experts, or the parties, or for
SEC. 34. Arbitration of Construction
inspection of goods, other property or
Disputes: Governing Law. - The
documents.
arbitration of construction disputes shall
SEC. 31. Language of the Arbitration. be governed by Executive Order No. 1008,
- The parties are free to agree on the otherwise known as the Constitution
language or languages to be used in the Industry Arbitration Law.
arbitral proceedings. Failing such
SEC. 35. Coverage of the Law. -
agreement, the language to be used shall
Construction disputes which fall within the
be English in international arbitration, and
original and exclusive jurisdiction of the
English or Filipino for domestic arbitration,
Construction Industry Arbitration
unless the arbitral tribunal shall determine
Commission (the "Commission") shall
a different or another language or
include those between or among parties
languages to be used in the proceedings.
to, or who are otherwise bound by, an
This agreement or determination, unless
arbitration agreement, directly or by
otherwise specified therein, shall apply to
reference whether such parties are project
any written statement by a party, any
owner, contractor, subcontractor, quantity
hearing and any award, decision or other
surveyor, bondsman or issuer of an
communication by the arbitral tribunal.
insurance policy in a construction project.
The arbitral tribunal may order that any
The Commission shall continue to exercise
documentary evidence shall be
original and exclusive jurisdiction over
accompanied by a translation into the
construction disputes although the
language or languages agreed upon by
arbitration is "commercial" pursuant to
the parties or determined in accordance
Section 21 of this Act.
with paragraph 1 of this section.
SEC. 36. Authority to Act as Mediator
CHAPTER 5 - DOMESTIC ARBITRATION
or Arbitrator. - By written agreement of
SEC. 32. Law Governing Domestic the parties to a dispute, an arbitrator may
Arbitration. - Domestic arbitration shall act as mediator and a mediator may act
continue to be governed by Republic Act as arbitrator. The parties may also agree
No. 876, otherwise known as "The in writing that, following a successful
Arbitration Law" as amended by this mediation, the mediator shall issue the
Chapter. The term "domestic arbitration" settlement agreement in the form of an
as used herein shall mean an arbitration arbitral award.
that is not international as defined in
SEC. 37. Appointment of Foreign
Article (3) of the Model Law. Page 11 of 15
Arbitrator. - The Construction Industry
Arbitration Commission (CIAC) shall A. DOMESTIC AWARDS
promulgate rules to allow for the
appointment of a foreign arbitrator or SEC. 40. Confirmation of Award. - The
coarbitrator or chairman of a tribunal a confirmation of a domestic arbitral award
person who has not been previously shall be governed by Section 23 of R.A.
accredited by CIAC: Provided, That: 876.

(a) the dispute is a construction dispute in A domestic arbitral award when confirmed
which one party is an international party shall be enforced in the same manner as
final and executory decisions of the
(b) the person to be appointed agreed to Regional Trial Court.
abide by the arbitration rules and policies
of CIAC; The confirmation of a domestic award
shall be made by the regional trial court in
(c) he/she is either coarbitrator upon the accordance with the Rules of Procedure to
nomination of the international party; or be promulgated by the Supreme Court.
he/she is the common choice of the two
CIAC-accredited arbitrators first appointed A CIAC arbitral award need not be
one of whom was nominated by the confirmed by the regional trial court to be
international party; and executory as provided under E.O. No.
1008.
(d) the foreign arbitrator shall be of
different nationality from the international SEC. 41. Vacation Award. - A party to a
party. domestic arbitration may question the
arbitral award with the appropriate
SEC. 38. Applicability to Construction regional trial court in accordance with the
Arbitration. - The provisions of Sections rules of procedure to be promulgated by
17 (d) of Chapter 2, and Section 28 and 29 the Supreme Court only on those grounds
of this Act shall apply to arbitration of enumerated in Section 25 of Republic Act
construction disputes covered by this No. 876. Any other ground raised against
Chapter. a domestic arbitral award shall be
disregarded by the regional trial court.
SEC. 39. Court to Dismiss Case
Involving a Construction Dispute. - A B. FOREIGN ARBITRAL AWARDS
regional trial court which a construction
dispute is filed shall, upon becoming SEC. 42. Application of the New York
aware, not later than the pretrial Convention. - The New York Convention
conference, that the parties had entered shall govern the recognition and
into an arbitration to be conducted by the enforcement of arbitral awards covered by
CIAC, unless both parties, assisted by their the said Convention.
respective counsel, shall submit to the
The recognition and enforcement of such
regional trial court a written agreement
arbitral awards shall be filled with regional
exclusive for the Court, rather than the
trial court in accordance with the rules of
CIAC, to resolve the dispute. Page 12 of
procedure to be promulgated by the
15
Supreme Court. Said procedural rules shall
provide that the party relying on the
award or applying for its enforcement
CHAPTER 7 - JUDICIAL REVIEW OF shall file with the court the original or
ARBITRAL AWARDS authenticated copy of the award and the
arbitration agreement. If the award or enforced in the same manner as final and
agreement is not made in any of the executory decisions of courts of law of the
official languages, the party shall supply a Philippines.
duly certified translation thereof into any
of such languages. SEC. 45. Rejection of a Foreign
Arbitral Award. - A party to a foreign
The applicant shall establish that the arbitration proceeding may oppose an
country in which foreign arbitration award application for recognition and
was made is a party to the New York enforcement of the arbitral award in
Convention. accordance with the procedural rules to be
promulgated by the Supreme Court only
If the application for rejection or on those grounds enumerated under
suspension of enforcement of an award Article V of the New York Convention. Any
has been made, the regional trial court other ground raised shall be disregarded
may, if it considers it proper, vacate its by the regional trial court.
decision and may also, on the application
of the party claiming recognition or SEC. 46. Appeal from Court Decisions
enforcement of the award, order the party on Arbitral Awards. - A decision of the
to provide appropriate security. regional trial court confirming, vacating,
setting aside, modifying or correcting an
SEC. 43. Recognition and arbitral award may be appealed to the
Enforcement of Foreign Arbitral Court of Appeals in accordance with the
Awards Not Covered by the New York rules of procedure to be promulgated by
Convention.- The recognition and the Supreme Court.
enforcement of foreign arbitral awards not
covered by the New York Convention shall The losing party who appeals from the
be done in accordance with procedural judgment of the court confirming an
rules to be promulgated by the Supreme arbitral award shall required by the
Court. The Court may, grounds of comity appellant court to post counter-bond
and reciprocity, recognize and enforce a executed in favor of the prevailing party
nonconvention award as a convention equal to the amount of the award in
award. accordance with the rules to be
promulgated by the Supreme Court.
SEC. 44. Foreign Arbitral Award Not
Foreign Judgment. - A foreign arbitral SEC. 47. Venue and Jurisdiction. -
award when confirmed by a court of a Proceedings for recognition and
foreign country, shall be recognized and enforcement of an arbitration agreement
enforced as a foreign arbitral award and or for vacation, setting aside, correction or
not a judgment of a foreign court. modification of an arbitral award, and any
application with a court for arbitration
A foreign arbitral award, when confirmed assistance and supervision shall be
by the regional trial court, shall be deemed as special proceedings and shall
enforced as a foreign arbitral award and be filled with the regional trial court (i)
not as a judgment of a foreign court. Page where arbitration proceedings are
13 of 15 conducted; (ii) where the asset to be
attached or levied upon, or the act to be
enjoined is located; (iii) where any of the
A foreign arbitral award, when confirmed parties to the dispute resides or has his
by the regional trial court, shall be place of business; or (iv) in the National
Judicial Capital Region, at the option of the (a) To formulate standards for the training
applicant. of the ADR practitioners and service
providers;
SEC. 48. Notice of Proceeding to
Parties. - In a special proceeding for (b) To certify that such ADR practitioners
recognition and enforcement of an arbitral and ADR service providers have
award, the Court shall send notice to the undergone the professional training
parties at their address of record in the provided by the office;
arbitration, or if any party cannot be
served notice at such address, at such (c) To coordinate the development,
party's last known address. The notice implementation, monitoring, and
shall be sent at least fifteen (15) days evaluation of government ADR programs;
before the date set for the initial hearing
(d) To charge fees for their services; and
of the application.
(e) To perform such acts as may be
CHAPTER 8 - MISCELLANEOUS
necessary to carry into effect the
PROVISIONS
provisions of this Act.
SEC. 49. Office for Alternative Dispute
SEC. 51. Appropriations. - The amount
Resolution. - There is hereby established
necessary to carry out the provisions of
the Office for Alternative Dispute
this Act shall be included in the General
Resolution as an attached agency to the
Appropriations Act of the year following its
Department of Justice (DOJ) which shall
enactment into law and thereafter.
have a Secretariat to be headed by an
executive director. The executive director SEC. 52. Implementing Rules and
shall be appointed by the President of the Regulations (IRR). - Within one (1)
Philippines. month after the approval of this Act, the
secretary of justice shall convene a
The objective of the office are:
committee that shall formulate the
(a) to promote, develop and expand the appropriate rules and regulations
use of ADR in the private and public necessary for the implementation of this
sectors; and Act. The committee, composed of
representatives from:
To assist the government to monitor,
study and evaluate the use by the public (a) the Department of Justice;
and the private sector of ADR, and
(b) the Department of Trade and Industry;
recommend to Congress needful statutory
changes to develop. Strengthen and (c) the Department of the Interior and
improve ADR practices in accordance with Local Government;
world standards.
(d) the president of the Integrated Bar of
SEC. 50. Powers and Functions of the the Philippines;
Office for Alternative Dispute
Resolution. - The Office for Alternative (e) A representative from the arbitration
Dispute Resolution shall have the profession; and
following powers and functions: Page 14
of 15 (f) A representative from the mediation
profession; and
(g) A representative from the ADR Approved, FRANKLIN JOSE DE VENECIA JR
organizations DRILON President of the Speaker of the House o
Senate Representatives
shall within three (3) months after
convening, submit the IRR to the Joint
Congressional Oversight Committee for
review and approval. The Oversight
Committee shall be composed of the
chairman of the Senate Committee on
Justice and Human Rights, chairman of the
House Committee on Justice, and one (1)
member each from the majority and
minority of both Houses.

The Joint Oversight Committee shall

become functus officio upon approval of
the IRR.

SEC. 53. Applicability of the

Katarungan Pambarangay. - This Act
shall not be interpreted to repeal, amend
or modify the jurisdiction of the
Katarungan Pambarangay under Republic
Act No. 7160, otherwise known as the
Local Government Code of 1991.

SEC. 54. Repealing Clause. - All laws,

decrees, executive orders, rules and
regulations which are inconsistent with the
provisions of this Act are hereby repealed,
amended or modified accordingly. Page
15 of 15

SEC. 55. Separability Clause. - If for

any reason or reasons, any portion or
provision of this Act shall be held
unconstitutional or invalid, all other parts
or provisions not affected shall thereby
continue to remain in full force and effect.

SEC. 56. Effectivity. - This act shall take

effect fifteen days (15) after its publication
in at least two (2) national newspapers of
general circulation.