April 2, 2004

REPUBLIC ACT NO. 9285

AN ACT TO INSTITUTIONALIZE THE USE OF AN ALTERNATIVE

DISPUTE RESOLUTION SYSTEM IN THE PHILIPPINES AND TO
ESTABLISH THE OFFICE FOR ALTERNATIVE DISPUTE RESOLUTION,
AND FOR OTHER PURPOSES

CHAPTER 1
General Provisions
SECTION 1. Title. This Act shall be known as the "Alternative
Dispute Resolution Act of 2004."
SECTION 2. Declaration of Policy. It is hereby declared the policy
of the State to actively promote party autonomy in the resolution of disputes or
the freedom of the parties to make their own arrangements to resolve their
disputes. Towards this end, the State shall encourage and actively promote the
use of Alternative Dispute Resolution (ADR) as an important means to achieve
speedy and impartial justice and declog court dockets. As such, the State shall
provide means for the use of ADR as an efficient tool and an alternative
procedure for the resolution of appropriate cases. Likewise, the State shall
enlist active private sector participation in the settlement of disputes through
ADR. This Act shall be without prejudice to the adoption by the Supreme
Court of any ADR system, such as mediation, conciliation, arbitration, or any
combination thereof as a means of achieving speedy and efficient means of
resolving cases pending before all courts in the Philippines which shall be
governed by such rules as the Supreme Court may approve from the time to
time.STHAaD

SECTION 3. Definition of Terms. For purposes of this Act, the term:

(a) "Alternative Dispute Resolution System" means any process or
procedure used to resolve a dispute or controversy, other than by
adjudication of a presiding judge of a court or an officer of a
government agency, as defined in this Act, in which a neutral

third party participates to assist in the resolution of issues, which

includes arbitration, mediation, conciliation, early neutral
evaluation, mini-trial, or any combination thereof;
(b) "ADR Provider" means institutions or persons accredited as
mediator, conciliator, arbitrator, neutral evaluator, or any person
exercising similar functions in any Alternative Dispute
Resolution system. This is without prejudice to the rights of the
parties to choose nonaccredited individuals to act as mediator,
conciliator, arbitrator or neutral, evaluator of their dispute.
Whenever referred to in this Act, the term "ADR
practitioners" shall refer to individuals acting as mediator,
conciliator, arbitrator or neutral evaluator;
(c) "Authenticate" means to sign, execute or adopt a symbol, or encrypt
a record in whole or in part, intended to indentify the
authenticating party and to adopt, accept or establish the
authenticity of a record or term;
(d) "Arbitration" means a voluntary dispute resolution process in which
one or more arbitrators, appointed in accordance with the
agreement of the parties, or rules promulgated pursuant to this
Act, resolve a dispute by rendering an award;
(e) "Arbitrator" means the person appointed to render an award, alone or
with others, in a dispute that is the subject of an arbitrator
agreement;
(f) "Award" means any partial or final decision by an arbitrator in
resolving the issue in a controversy;
(g) "Commercial Arbitration" An arbitration is "commercial" if it
covers matter arising from all relationships of a commercial
nature, whether contractual or not;
(h) "Confidential information" means any information, relative to the
subject of mediation or arbitration, expressly intended by the
source not to be disclosed, or obtained under circumstances that
would create a reasonable expectation on behalf of the source
that the information shall not be disclosed. It shall include (1)
communication, oral or written, made in a dispute resolution
proceedings, including any memoranda, notes or work product of
the neutral party or non-party participant, as defined in this Act;

(2) an oral or written statement made or which occurs during mediation

or for purposes of considering, conducting, participating,
initiating continuing or reconvening mediation or retaining a
mediator; and (3) pleadings, motions, manifestations, witness
 statements, reports filed or submitted in an arbitration or for
expert evaluation;
(i) "Convention Award" means a foreign arbitral award made in a
Convention State;
(j) "Convention State" means a State that is a member of the New York
Convention;
(k) "Court" as referred to in Article 6 of the Model Law shall mean a
Regional Trial Court;
(l) "Court-Annexed Mediation" means any mediation process conducted
under the auspices of the court, after such court has acquired
jurisdiction of the dispute;
(m) "Court-Referred Mediation" means mediation ordered by a court to
be conducted in accordance with the Agreement of the Parties
when an action is prematurely commenced in violation of such
agreement;
(n) "Early Neutral Evaluation" means an ADR process wherein parties
and their lawyers are brought together early in a pre-trial phase to
present summaries of their cases and receive a non-binding
assessment by an experienced, neutral person, with expertise in
the subject in the substance of the dispute;
(o) "Government Agency" means any governmental entity, office or
officer, other than a court, that is vested by law with quasi-
judicial power or the power to resolve or adjudicate disputes
involving the government, its agencies and instrumentalities, or
private persons;
(p) "International Party" shall mean an entity whose place of business is
outside the Philippines. It shall not include a domestic subsidiary
of such international party or a co-venturer in a joint venture with
a party which has its place of business in the Philippines. The
term foreign arbitrator shall mean a person who is not a national
of the Philippines;

(q) "Mediation" means a voluntary process in which a mediator, selected

by the disputing parties, facilitates communication and
negotiation, and assists the parties in reaching a voluntary
agreement regarding a dispute;
(r) "Mediator" means a person who conducts mediation.
 (s) "Mediation Party" means a person who participates in a mediation
and whose consent is necessary to resolve the dispute;
(t) "Mediation-Arbitration" or Med-Arb is two-step dispute resolution
process involving both mediation and arbitration;
(u) "Mini-trial" means a structured dispute resolution method in which
the merits of a case are argued before a panel comprising senior
decision makers with or without the presence of a neutral third
person after which the parties seek a negotiated settlement;
(v) "Model Law" means the Model Law on International Commercial
Arbitration adopted by the United Nations Commission on
International Trade Law on 21 June 1985;
(w) "New York Convention" means the United Nations Convention on
the Recognition and Enforcement of Foreign Arbitral Awards
approved in 1958 and ratified by the Philippine Senate under
Senate Resolution No. 71;
(x) "Non-Convention Award" means a foreign arbitral award made in a
State which is not a Convention State;
(y) "Non-Convention State" means a State that is not a member of the
New York Convention;
(z) "Non-Party Participant" means a person, other than a party or
mediator, who participates in a mediation proceedings as a
witness, resource person or expert;
(aa) "Proceeding" means a judicial, administrative, or other adjudicative
process, including related pre-hearing or post-hearing motions,
conferences and discovery;
(bb) "Record" means an information written on a tangible medium or
stored in an electronic or other similar medium, retrievable in a
perceivable form; and

(cc) "Roster" means a list of persons qualified to provide ADR services

as neutrals or to serve as arbitrators.
SECTION 4. Electronic Signatures in Global and E-Commerce Act.
The provisions of the Electronic Signatures in Global and E-Commerce Act,
and its Implementing Rules and Regulations shall apply to proceedings
contemplated in this Act.
SECTION 5. Liability of ADR Providers/Practitioners. The ADR
providers and practitioners shall have the same and civil liability for acts done
in the performance of then duties as that of public officers as provided in
Section 38(1), Chapter 9, Book 1 of the Administrative Code of 1987.
SECTION 6. Exception to the Application of this Act. The provisions
of this Act shall not apply to resolution or settlement of the following: (a) labor
disputes covered by Presidential Decree No. 442, otherwise known as the
Labor Code of the Philippines, as amended and its Implementing Rules and
Regulations; b) the civil status of persons; (c) the validity of a marriage; (d)
any ground for legal separation; (e) the jurisdiction of courts; (f) future
legitimate; (g) criminal liability; and (h) those which by law cannot be
compromised.
CHAPTER 2
Mediation
SECTION 7. Scope. The provisions of this Chapter shall cover
voluntary mediation, whether ad hoc or institutional, other than court-annexed.
The term "mediation" shall include conciliation. CTHDcS

SECTION 8. Application and Interpretation. In applying and

construing the provisions of this Chapter, consideration must be given to the
need to promote candor of parties and mediators through confidentiality of the
mediation process, the policy of fostering prompt, economical, and amicable
resolution of disputes in accordance with principles of integrity of
determination by the parties, and the policy that the decision-making authority
in the mediation process rests with the parties.
SECTION 9. Confidentiality of Information. Information obtained
through mediation proceedings shall be subject to the following principles and
guidelines;
(a) Information obtained through mediation shall be privileged and
confidential.

(b) A party, a mediator, or a nonparty participant may refuse to disclose

and may prevent any other person from disclosing a mediation
communication.
(c) Confidential Information shall not be subject to discovery and shall
be inadmissible in any adversarial proceeding, whether judicial
or quasi-judicial. However, evidence or information that is
otherwise admissible or subject to discovery does not become
inadmissible or protected from discovery solely by reason of its
use in a mediation.
 (d) In such an adversarial proceeding, the following persons involved
previously involved in a mediation may not be compelled to
disclose confidential information obtained during the mediation:
(1) the parties to the dispute; (2) the mediator or mediators, (3)
the counsel for the parties; (4) the nonparty participants, (5) any
persons hired or engaged in connection with the mediation as
secretary, stenographer, clerk or assistant; and (6) any other
person who obtains or possesses confidential information by
reason of his/her profession.
e) The protections of this Act shall continue to apply even if a mediator
is found to have failed to act impartially.
f) A mediator may not be called to testify to provide information
gathered in mediation. A mediator who is wrongfully subpoenaed
shall be reimbursed the full cost of his attorney's fees and related
expenses.
SECTION 10. Waiver of Confidentiality. A privilege arising from the
confidentiality of information may be waived in a record, or orally during a
proceeding by the mediator and the mediation parties.
A privilege arising from the confidentiality of information may likewise
be waived by a nonparty participant if the information is provided by such
nonparty participant.
A person who discloses confidential information shall be precluded
from assessing the privilege under Section 9 of this Chapter to bar disclosure
of the rest of the information necessary to a complete understanding of the
previously disclosed information. If a person suffer loss or damage as a result
of the disclosure of the confidential information, he shall be entitled to
damages in a judicial proceeding against the person who made the disclosure.

A person who discloses or makes a representation about a mediation is

precluded from asserting the privilege under Section 9, to the extent that the
communication prejudices another person in the proceeding and it is necessary
for the person prejudices to respond to the representation of disclosure.
SECTION 11. Exceptions to Privilege. (a) There is no privilege
against disclosure under Section 9 if Communication mediation
communication is:
(1) in an agreement evidenced by a record authenticated by all parties to
the agreement;
 (2) available to the public or that is made during a session of a
mediation which is open, or is required by law to be open, to the
public;
(3) a threat or statement of a plan to inflict bodily injury or commit a
crime of violence.
(4) Intentionally used to plan a crime, attempt to commit, or commit a
crime, or conceal an ongoing crime or criminal activity;
(5) sought or offered to prove or disprove abuse, neglect, abandonment,
or exploitation in a proceeding in which a public agency is
protecting the interest of an individual protected by law; but this
exception does not apply where a child protection matter is
referred to mediation by a court or a public agency participates in
the child protection mediation;
(6) sought or offered to prove or disprove a claim or complaint of
professional misconduct or malpractice filed against mediator in
a proceeding; or
(7) sought or offered to prove or disprove a claim or complaint of
professional misconduct or malpractice filed against a party
nonparty participant, or representative of a party based on
conduct occurring during a mediation.
(b) There is no privilege under Section 9 if a court of administrative
agency, finds, after a hearing in camera, that the party seeking discovery of the
proponent of the evidence has shown that the evidence is not otherwise
available, that there is a need for the evidence that substantially outweighs the
interest in protecting confidentiality, and the mediation communication is
sought or offered in:

(1) court proceeding involving a crime or felony; or

(2) a proceeding to prove a claim or defense that under the law is
sufficient to reform or avoid a liability on a contract arising out
of the mediation.
(c) A mediator may not be compelled to provide evidence of a mediation
communication or testify in such proceeding.
(d) If a mediation communication is not privileged under an exception
in subsection (a) or (b), only the portion of the communication necessary for
the application of the exception for nondisclosure may be admitted. The
admission of particular evidence for the limited purpose of an exception does
not render that evidence, or any other mediation communication, admissible
for any other purpose.
SECTION 12. Prohibited Mediator Reports. A mediator may not
make a report, assessment, evaluation, recommendation, finding, or other
communication regarding a mediation to a court or agency or other authority
that may make a ruling on a dispute that is the subject of a mediation, except:
(a) where the mediation occurred or has terminated, or where a
settlement was reached.
(b) As permitted to be disclosed under Section 13 of this Chapter.
SECTION 13. Mediator's Disclosure and Conflict of Interest. The
mediation shall be guided by the following operative principles:
(a) Before accepting a mediation, an individual who is requested to
serve as a mediator shall:
(1) make an inquiry that is reasonable under the circumstances to
determine whether there are any known facts that a
reasonable individual would consider likely to affect the
impartiality of the mediator, including a financial or
personal interest in the outcome of the mediation and any
existing or past relationship with a party or foreseeable
participant in the mediation; and
(2) disclose to the mediation parties any such fact known or
learned as soon as is practical before accepting a
mediation.

(b) If a mediator learns any fact described in paragraph (a)(1) of this

section after accepting a mediation, the mediator shall disclose it
as soon as practicable.
At the request of a mediation party, an individual who is
requested to serve as mediator shall disclose his/her
qualifications to mediate a dispute.
This Act does not require that a mediator shall have
special qualifications by background or profession unless the
special qualification of a mediator are required in the mediation
agreement or by the mediation parties.
SECTION 14. Participation in Mediation. Except as otherwise
provided in this Act, a party may designate a lawyer or any other person to
provide assistance in the mediation. A waiver of this right shall be made in
writing by the party waiving it. A waiver of participation or legal representation
may be rescinded at any time.
SECTION 15. Place of Mediation. The parties are free to agree on
the place of mediation. Failing such agreement, the place of mediation shall be
any place convenient and appropriate to all parties.
SECTION 16. Effect of Agreement to Submit Dispute to Mediation
Under Institutional Rules. An agreement to submit a dispute to mediation
by an institution shall include an agreement to be bound by the internal
mediation and administrative policies of such institution. Further, an agreement
to submit a dispute to mediation under institutional mediation rules shall be
deemed to include an agreement to have such rules govern the mediation of the
dispute and for the mediator, the parties, their respective counsel, and nonparty
participants to abide by such rules.
In case of conflict between the institutional mediation rules and the
provisions of this Act, the latter shall prevail.
SECTION 17. Enforcement of Mediated Settlement Agreements. The
mediation shall be guided by the following operative principles:
(a) A settlement agreement following successful mediation shall be
prepared by the parties with the assistance of their respective
counsel, if any, and by the mediator.
The parties and their respective counsels shall endeavor to
make the terms and condition thereof complete and make

adequate provisions for the contingency of breach to avoid

conflicting interpretations of the agreements.
(b) The parties and their respective counsels, if any, shall sign the
settlement agreement. The mediator shall certify that he/she
explained the contents of the settlement agreement to the parties
in language known to them. TcDIEH

(c) If the parties so desire, they may deposit such settlement agreement
with appropriate Clerk of a Regional Trial Court of the place
where one of the parties resides. Where there is a need to enforce
the settlement agreement, a petition may be filed by any of the
parties with the same court, in which case, the court shall proceed
summarily to hear the petition, in accordance with such rules of
procedure as may be promulgated by the Supreme Court.
(d) The parties may agree in the settlement agreement that the mediator
shall become a sole arbitrator for the dispute and shall treat the
 settlement agreement as an arbitral award which shall be subject
to enforcement under Republic Act No. 876, otherwise known as
the Arbitration Law, notwithstanding the provision of Executive
Order No. 1008 for mediated disputes outside of the CIAC.
CHAPTER 3
Other ADR Forms
SECTION 18. Referral of Dispute to Other ADR Forms. The parties
may agree to refer one or more or all issues arising in a dispute or during its
pendency to other forms of ADR such as but not limited to a) the evaluation of
a third person or (b) a mini-trial, (c) mediation-arbitration, or a combination
thereof.
For purposes of this Act, the use of other ADR forms shall be governed
by Chapter 2 of this Act except where it is combined with arbitration in which
case it shall likewise be governed by Chapter 5 of this Act.
CHAPTER 4
International Commercial Arbitration

SECTION 19. Adoption of the Model Law on International Commercial

Arbitration. International commercial arbitration shall be governed by the
Model Law on International Commercial Arbitration (the "Model Law")
adopted by the United Nations Commission on International Trade Law on 21
June 1985 (United Nations Document A/40/17) and recommended for
enactment by the General Assembly in Resolution No. 40/72 approved on 11
December 1985, copy of which is hereto attached as Appendix "A".
SECTION 20. Interpretation of Model Law. In interpreting the
Model law, regard shall be had to its international origin and to the need for
uniformity in its interpretation and resort may be made to the travaux
preparatories and the report of the Secretary General of the United Nations
Commission on International Trade Law dated 25 March 1985 entitled,
"International Commercial Arbitration: Analytical Commentary on Draft Text
identified by reference number a/CN. 9/264."
SECTION 21. Commercial Arbitration. An arbitration is
"commercial" if it covers matters arising from relationships of a commercial
nature, whether contractual or not. Relationships of a commercial nature
include, but are not limited to, the following transactions; any trade transaction
for the supply or exchange of goods or services; distribution agreements;
construction of works; commercial representation or agency; factoring; leasing;
consulting; engineering; licensing; investment; financing; banking; insurance;
joint venture and other forms of industrial or business cooperation; carriage of
goods or passengers by air, sea, rail or road.
SECTION 22. Legal Representation in International Arbitration. In
international arbitration conducted in the Philippines, a party may be
represented by any person of his choice: Provided, That such representative,
unless admitted to the practice of law in the Philippines, shall not be authorized
to appear as counsel in any Philippine court, or any other quasi-judicial body
whether or not such appearance is in relation to the arbitration in which he
appears.
SECTION 23. Confidentiality of Arbitration Proceedings. The
arbitration proceedings, including the records, evidence and the arbitral award,
shall be considered confidential and shall not be published except (1) with the
consent of the parties, or (2) for the limited purpose of disclosing to the court
of relevant documents in cases where resort to the court of relevant documents
in cases where resort to the court is allowed herein: Provided, however, That
the court in which the action or the appeal is pending may issue a protective
order to prevent or prohibit disclosure of documents or information containing

secret process, developments, research and other information where it is

shown that the applicant shall be materially prejudiced by an authorized
disclosure. thereof.
SECTION 24. Referral to Arbitration. A court before which an
action is brought in a matter which is the subject matter of an arbitration
agreement shall, if at least one party so requests not later than the pre-trial
conference, or upon the request of both parties thereafter, refer the parties to
arbitration unless it finds that the arbitration agreement is null and void,
inoperative or incapable of being performed.
SECTION 25. Interpretation of the Act. In interpreting the Act, the
court shall have due regard to the policy of the law in favor of arbitration.
Where action is commenced by or against multiple parties, one or more of
whom are parties to an arbitration agreement, the court shall refer to arbitration
those parties who are bound by the arbitration agreement although the civil
action may continue as to those who are not bound by such arbitration
agreement.
SECTION 26. Meaning of "Appointing Authority". "Appointing
Authority" as used in the Model law shall mean the person or institution named
in the arbitration agreement as the appointing authority; or the regular
arbitration institution under whose rules the arbitration is agreed to be
conducted. Where the parties have agreed to submit their dispute to
institutional arbitration rules, and unless they have agreed to a different
procedure, they shall be deemed to have agreed to the procedure under such
arbitration rules for the selection and appointment of arbitrators. In ad hoc
arbitration, the default appointment of an arbitrator shall be made by the
National President of the Integrated Bar of the Philippines (IBP) or his duly
authorized representative.
SECTION 27. What Functions May be Performed by Appointing
Authority. The functions referred to in Articles 11(3), 11(4), 13(3) and 14(1)
of the Model Law. shall performed by the Appointing Authority, unless the
latter shall fail or refuse to act within thirty (30) days from receipt of the
request in which case the applicant may renew the application with the Court.
SECTION 28. Grant of Interim Measure of Protection. (a) It is not
incompatible with an arbitration agreement for a party to request, before
constitution of the tribunal, from a Court to grant such measure. After
constitution of the arbitral tribunal and during arbitral proceedings, a request
for an interim measure of protection, or modification thereof, may be made
with the arbitral or to the extent that the arbitral tribunal has no power to act or

is unable to act effectivity, the request may be made with the Court. The
arbitral tribunal is deemed constituted when the sole arbitrator or the third
arbitrator, who has been nominated, has accepted the nomination and written
communication of said nomination and acceptance has been received by the
party making the request.
(b) The following rules on interim or provisional relief shall be
observed:
(1) Any party may request that provisional relief be granted against the
adverse party.
(2) Such relief may be granted:
(i) to prevent irreparable loss or injury;
(ii) to provide security for the performance of any obligation;
(iii) to produce or preserve any evidence; or
(iv) to compel any other appropriate act or omission.
(3) The order granting provisional relief may be conditioned upon the
provision of security or any act or omission specified in the
order.
(4) Interim or provisional relief is requested by written application
transmitted by reasonable means to the Court or arbitral tribunal
as the case may be and the party against whom the relief is
sought, describing in appropriate detail the precise relief, the
 party against whom the relief is requested, the grounds for the
relief, and the evidence supporting the request.
(5) The order shall be binding upon the parties.
(6) Either party may apply with the Court for assistance in
implementing or enforcing an interim measure ordered by an
arbitral tribunal.
(7) A party who does not comply with the order shall be liable for all
damages resulting from noncompliance, including all expenses,
and reasonable attorney's fees, paid in obtaining the order's
judicial enforcement.

SECTION 29. Further Authority for Arbitrator to Grant Interim

Measure of Protection. Unless otherwise agreed by the parties, the arbitral
tribunal may, at the request of a party, order any party to take such interim
measures of protection as the arbitral tribunal may consider necessary in
respect of the subject-matter of the dispute following, the rules in Section 28,
paragraph 2. Such interim measures may include but shall not be limited to
preliminary injunction directed against a party, appointment of receivers or
detention, preservation; inspection of property that is the subject of the dispute
in arbitration. Either party may apply with the Court for assistance in
implementing or enforcing an interim measure ordered by an arbitral tribunal.
SECTION 30. Place of Arbitration. The parties are free to agree on
the place of 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, including the convenience of the parties shall decide
on a different place of arbitration.
AEDcIH

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.
SECTION 31. Language of the Arbitration. The parties are free to
agree on the language or languages to be used in the arbitral proceedings.
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 other communication by the
arbitral tribunal.
 The arbitral tribunal may order that any documentary evidence shall be
accompanied by a translation into the language or languages agreed upon the
parties or determined in accordance with paragraph 1 of this Section.
CHAPTER 5
Domestic Arbitration
SECTION 32. Law Governing Domestic Arbitration. Domestic
arbitration shall continue to be governed by Republic Act No. 876, otherwise
known as "The Arbitration Law" as amended by this Chapter. The term

"domestic arbitration" as used herein shall mean an arbitration that is

not international as defined in Article 1(3) of the Model law.
SECTION 33. Applicability to Domestic Arbitration. Articles 8, 10,
11, 12, 13, 14, 18 and 19 and 29 to 32 of the Model Law and Sections 22 to 31
of the proceeding Chapter 4 shall apply to domestic arbitration.
CHAPTER 6
Arbitration of Construction Disputes
SECTION 34. Arbitration of Construction Disputes: Governing Law.
The arbitration of construction disputes shall be governed by Executive Order
No. 1008, otherwise known as the Construction Industry Arbitration Law.
SECTION 35. Coverage of the Law. Construction disputes which fall
within the original and exclusive jurisdiction of the Construction Industry
Arbitration Commission (the "Commission") shall include those between or
among parties to, or who are otherwise bound by, an arbitration agreement,
directly or by reference whether such parties are project owner, contractor,
subcontractor, fabricator, project manager, design professional, consultant,
quantity surveyor, bondsman or issuer of an insurance policy in a construction
project.
The Commission shall continue to exercise original and exclusive
jurisdiction over construction disputes although the arbitration is "commercial"
pursuant to Section 21 of this Act.
SECTION 36. Authority to Act as Mediator or Arbitrator. By written
agreement of the parties to a dispute, an arbitrator may act as mediator and a
mediator may act as arbitrator. The parties may also agree in writing that,
following a successful mediation, the mediator shall issue the settlement
agreement in the form of an arbitral award.
SECTION 37. Appointment of Foreign Arbitrator. The Construction
Industry Arbitration Commission (CIAC) shall promulgate rules to allow for
the appointment of a foreign arbitrator as co-arbitrator or chairman of a
tribunal a person who has not been piously accredited by CIAC: Provided,
That:
(a) the dispute is a construction dispute in which one party is an
international party;

(b) the person to be appointed agreed to abide by the arbitration rules

and policies of CIAC;
(c) he/she is either co-arbitrator upon the nomination of the international
party; or he/she is the common choice of the two CIAC-
accredited arbitrators first appointed, one of whom was
nominated by the international party; and
(d) the foreign arbitrator shall be of different nationality from the
international party.
SECTION 38. Applicability to Construction Arbitration. The
provisions of Section 17(d) of Chapter 2, and Sections 28 and 29 of this Act
shall apply to arbitration of construction disputes covered by this Chapter.
SECTION 39. Court to Dismiss Case Involving a Construction Dispute.
A Regional Trial Court before which a construction dispute is filed shall,
upon becoming aware, not later than the pre-trial conference, that the parties
had entered into an arbitration agreement, dismiss the case and refer the parties
to arbitration to be conducted by the CIAC, unless both parties, assisted by
their respective counsel, shall submit to the Regional Trial Court a written
agreement exclusively for the Court, rather than the CIAC, to resolve the
dispute.
CHAPTER 7
Judicial Review of Arbitral Awards
A. DOMESTIC AWARDS
SECTION 40. Confirmation of Award. The confirmation of a
domestic arbitral award shall be governed by Section 23 of R.A. No. 876.
A domestic arbitral award when confirmed shall be enforced in the same
manner as final and executory decisions of the Regional Trial Court.
The recognition and enforcement of an award in an international
commercial arbitration shall be governed by Article 35 of the Model Law.
The confirmation of a domestic award shall be made by the Regional
Trial Court in accordance with the Rules of Procedure to be promulgated by
the Supreme Court.
 A CIAC Arbitral award need not be confirmed by the Regional Trial
Court to be executory as provided under E.O. No. 1008.

SECTION 41. Vacation Award. A party to a domestic arbitration may

question the arbitral award with the appropriate Regional Trial Court in
accordance with rules and procedure to be promulgated by the Supreme Court
only on those grounds enumerated in Section 25 of Republic Act No. 876. Any
other ground raised against a domestic arbitral award shall be disregarded by
the Regional Trial Court.
B. FOREIGN ARBITRAL AWARDS
SECTION 42. Application of the New York Convention. The New
York Convention shall govern the recognition and enforcement of arbitral
awards covered by said Convention.
The recognition and enforcement of such arbitral awards shall be filed
with the Regional Trial Court in accordance with the rules of procedure to be
promulgated by the Supreme Court. Said procedural rules shall provide that the
party relying on the award or applying for its enforcement shall file with the
court the original or authenticated copy of the award and the arbitration
agreement. If the award or agreement is not made in any of the official
languages, the party shall, supply a duly certified translation thereof into any of
such languages.
The applicant shall establish that the country in which foreign
arbitration award was made in a party to the New York Convention.
If the application for rejection or suspension of enforcement of an award
has been made, the Regional Trial Court may, if considers it proper, vacate its
decision and may also, on the application of the party claiming recognition or
enforcement of the award, order the party to provide appropriate security.
SECTION 43. Recognition and Enforcement of Foreign Arbitral
Awards Not Covered by the New York Convention. The recognition and
enforcement of foreign arbitral awards not covered by the New York
Convention shall be done in accordance with procedural rules to be
promulgated by the Supreme Court. The Court may, on grounds of comity and
reciprocity, recognize and enforce a non-convention award as a convention
award.
SECTION 44. Foreign Arbitral Award Not Foreign Judgment. A
foreign arbitral award when confirmed by a court of a foreign country, shall be
recognized and enforced as a foreign arbitral award and not as a judgment of a
foreign court.
 A foreign arbitral award, when confirmed by the Regional Trial Court,
shall be enforced in the same manner as final and executory decisions of courts
of law of the Philippines.
SECTION 45. Rejection of a Foreign Arbitral Award. A party to a
foreign arbitration proceeding may oppose an application for recognition and
enforcement of the arbitral award in accordance with the procedures rules to be
promulgated by the Supreme Court only on those grounds enumerated under
Article V of the New York Convention. Any other ground raised shall be
disregarded by the Regional Trial Court.
SECTION 46. Appeal from Court Decision or Arbitral Awards. A
decision of the Regional Trial Court confirming, vacating, setting aside,
modifying or correcting an arbitral award may be appealed to the Court of
Appeals in accordance with rules and procedure to be promulgated by the
Supreme Court. cSCTEH

The losing party who appeals from the judgment of the court confirming
an arbitral award shall be required by the appellate court to post a counterbond
executed in favor of the prevailing part equal to the amount of the award in
accordance with the rules to be promulgated by the Supreme Court.
SECTION 47. Venue and Jurisdiction. Proceedings for recognition
and enforcement of an arbitration agreement or for vacations, setting aside,
correction or modification of an arbitral award, and any application with a
court for arbitration assistance and supervision shall be deemed as special
proceedings and shall be filed with the Regional Trial Court (i) where
arbitration proceedings are conducted; (ii) where the asset to be attached or
levied upon, or the act to be enjoined is located; (iii) where any of the parties to
the dispute resides or has his place of business; or (iv) in the National Judicial
Capital Region, at the option of the applicant.
SECTION 48. Notice of Proceeding to Parties. In a special
proceeding for recognition and enforcement of an arbitral award, the Court
shall send notice to the parties at their address of record in the arbitration, or if
any part cannot be served notice at such address, at such party's last known
address. The notice shall be sent at least fifteen (15) days before the date set for
the initial hearing of the application.
CHAPTER 8
Miscellaneous Provisions

SECTION 49. Office for Alternative Dispute Resolution. There is

hereby established the Office for Alternative Dispute Resolution as an attached
agency to the Department of Justice (DOJ) which shall have a Secretariat to be
headed by an Executive Director. The Executive Director shall be appointed by
the President of the Philippines.
The objectives of the Office are:
(a) To promote, develop and expand the use of ADR in the private and
public sectors; and
To assist the government to monitor, study and evaluate the use by the
public and the private or of ADR, and recommend to Congress needful
statutory changes to develop, strengthen and improve ADR practices in
accordance with world standards.
SECTION 50. Powers and Functions of the Office for Alternative
Dispute Resolution. The Office for Alternative Dispute Resolution shall
have the following powers and functions:
(a) To formulate standards for the training of the ADR practitioners and
service providers;
(b) To certify that such ADR practitioners and ADR service providers
have undergone the professional training provided by the Office;
(c) To coordinate the development, implementation, monitoring and
evaluation of government ADR programs;
(d) To change fees for their services; and
(e) To perform such acts as may be necessary to carry into effect the
provisions of this Act.
SECTION 51. Appropriations. The amount necessary to carry out the
provisions of this Act shall be included in the General Appropriations Act of
the year following its enactment into law and thereafter.
(a) the Department of Justice;
(b) the Department of Trade and Industry;
(c) the Department of Interior and Local Government;

(d) the President of the Integrated Bar of the Philippines;

(e) A representative from the arbitration profession;
(f) A representative from the mediation profession; and
(g) A representative from the ADR organizations.
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.
SECTION 53. Applicability of the Katarungang Pambarangay. This
Act shall not be interpreted to repeal, amend or modify the jurisdiction of the
Katarungang Pambarangay under Republic Act No. 7160, otherwise known as
the Local Government Code of 1991.
SECTION 54. Repealing Clause. All laws, decrees, executive orders,
rules and regulation which are inconsistent with the provisions of this Act are
hereby repealed, amended or modified accordingly.
SECTION 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.
SECTION 56. Effectivity. This Act shall take effect fifteen (15) days
after its publication in at least two (2) national newspapers of general
circulation.
Approved: April 2, 2004