Adr TSN 2015 2016 Short 1st Exam

ALTERNATIVE DISPUTE RESOLUTION TRANSCRIPTION ©
From the lectures of Atty. Catherine Guerzo-Barrion | AY 2015 to 2016

Ateneo de Davao College of Law | Tres Manresa
S: According to LM Power case, being an inexpensive, speedy

This is Alternative Dispute Resolution. One unit, but this is
and amicable method of settling disputes, arbitration––along
already a topic in your bar exam. It is under Remedial Law. So I
with mediation, conciliation and negotiation––is encouraged by
will demand much from this subject.  This is more on memory
the Supreme Court.
work. Memory recall of the provisions, the procedure.
Take note class RA 9285 is not limited to arbitration
So ADR will be divided into 2 parts. The first one: Law on
only. It includes other forms of ADR.
Arbitration. The second part: Mediation and JDR (Judicial
Dispute Resolution).
SEC. 2. Declaration of Policy. It is hereby declared the policy of
(Note from the editor: All of Atty. Cathy’s questions and inputs the State to actively promote party autonomy in the resolution
are in bold form. Also, please read this TOGETHER WITH your of disputes or the freedom of the party to make their own
codal and case digest compilation.) 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
November 23, 2015 (DJGolo) achieve speedy and impartial justice and declog court dockets.
As such, the State shall provide means for the use of ADR as an
How do you define Alternative Dispute Resolution? efficient tool and an alternative procedure for the resolution of
S: ADR is a mode of resolving disputes which is not adjudicated appropriate cases. Likewise, the State shall enlist active private
by a judge. It includes mediation, arbitration, conciliation and sector participation in the settlement of disputes through ADR.
other processes. This Act shall be without prejudice to the adoption by the
Supreme Court of any ADR system, such as mediation,
Again, to illustrate, ADR refers to what? conciliation, arbitration, or any combination thereof as a means
S: To processes where the disputes are not adjudicated in court. of achieving speedy and efficient means of resolving cases
pending before all courts in the Philippines which shall be
Atty. CGB: The leading case here class is the case of – governed by such rules as the Supreme Court may approve
LM Power Engineering: Alternative from time to time.
dispute resolution methods or ADRs provide
solutions that are less time-consuming, less That is the State policy with regard to ADR.
tedious, less confrontational, and more Under RA 9285, what are the forms of ADR?
productive of goodwill and lasting
relationship. It is any process or procedure S: Arbitration, Court-referred and Court-annexed mediation,
used to resolve a dispute or controversy, Mediation, Evaluation by a third person, mini-trial, negotiation,
other than by adjudication of a presiding conciliation.
judge of a court or an officer of a
How do you define mediation?
government agency, as defined under the
law, in which a neutral third party S: Mediation is a voluntary process in which a mediator, selected
participates to assist in the resolution of by the disputing parties, facilitates communication and
issues, which includes arbitration, mediation, negotiation, and assists the parties in reaching a voluntary
conciliation, early neutral evaluation, mini- agreement regarding a dispute.
trial, or any combination thereof.
How do you define Court-annexed Mediation (CAM) and
Also class in the case of – Court-Referred Mediation (CRM)?
RCBC v. BDO GR. 196171 and BDO v. Court-Annexed Mediation means any mediation process
CA 199238: ADR was envisioned as an conducted under the auspices of the court, after such court has
important means to achieve speedy and acquired jurisdiction of the dispute, while Court-Referred
impartial justice and declog court dockets. Mediation means mediation ordered by a court to be conducted
The most important feature of arbitration in accordance with the Agreement of the Parties when an action
(one of the methods), and the key to its is prematurely commenced in violation of such agreement.
success, is the public’s confidence and trust
In both, did it already reach the court?
in the integrity of the process.
In CAM, the case already reached the court. In CRM, although
So what is the governing law?
its already been filed in court, but there was an agreement
The Alternative Dispute Resolution Law or Republic Act between the parties to resort first to mediation. In effect, the
No. 9285, April 2, 2004: AN ACT TO INSTITUTIONALIZE THE case is filed prematurely.
USE OF AN ALTERNATIVE DISPUTE RESOLUTION SYSTEM IN
So in CRM, the court already acquired jurisdiction over
THE PHILIPPINES AND TO ESTABLISH THE OFFICE FOR
the parties? S: Not yet.
ALTERNATIVE DISPUTE RESOLUTION, AND FOR OTHER
PURPOSES. What are the distinctions between the two?
What is the State’s Policy with regard to resolution of S: In CRM, the court already acquired jurisdiction over the case.
dispute?
You mean to say, upon the filing of the case, the court
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will refer the case to mediation? Which is which? Kailan How do you define Judicial Dispute Resolution (JDR)?
nangyayari ang CAM? What stage? After the defendant
S: A judge assists in resolution of dispute in cases when the
files his answer or upon the filing of the complaint?
parties failed to come up with an agreement.
In CAM, the court acquires jurisdiction. In CRM, the court
When does this happen? During what stage?
acquires jurisdiction after filing of the answer.
S: During the CAM, when the court has acquired jurisdiction
So, generic lang tayo? In CAM, the court has already
over the case, when the parties fail to agree, then the mediator
acquired jurisdiction. But in CRM, no jurisdiction yet?
will be the judge.
Nalito na ako sa inyo class.
So JDR will happen after the CAM? Why? Is it by
In CAM, since there is already the filing of the answer,
agreement of the parties that JDR will take place? S: No.
jurisdiction is acquired over the person of the defendant.
However, in CRM, there is premature filing since there is no JDR is conducted by who?
conciliation yet that should have been done before filing of the
complaint. The judge, who acts as the arbitrator.
So, you mean to say, doon sa CRM, no jurisdiction yet? What stage of the trial? What is your basis?
S: Yes. S: During the pre-trial. Because in CAM, the court already

acquired jurisdiction after the defendant has filed his answer.
Because it was prematurely filed? But in CAM, the court
already acquired jurisdiction kasi sabi mo jurisdiction So when mediation fails, JDR will happen? Is that
over the person of the defendant. In fact, it will happen correct? S: Yes.
after the defendant files his answer? Kailangan ba mag How do you define Mini-trial?
file ng answer?
S: Mini-trial is a structure dispute resolution method in which
What stage of the court proceedings when you say the merits of a case are argued before a panel comprising
CAM? senior decision makers with or without the presence of a neutral
S: During the pre-trial third person after which the parties seek a negotiated
settlement. The neutral third person may be asked to render a
So the rule is that, when you say CAM, the case is non-binding adversary opinion.
refereed to mediation during the pre-trial stage of the
case and not after the defendant has filed his answer? What is the common denominator among the forms of
Pre-trial stage or preliminary conference? Civil case ADR?
tayo. Nalito na kayo no? S: Among them, there is a third party or parties who will serve
So, after the court has acquired jurisdiction and the as the mediator or arbitrator to resolve the dispute.
defendant has already filed his answer. Because after So the common denominator is a neutral third party
that the court will conduct, a what? Is it during the pre- who will try to resolve the issue between or among the
trial or before the pre-trial stage? parties.
S: Before pre-trial stage. What are the different kinds of arbitration under the
So before pre-trial stage e-refer natin ang case for ADR law?
mediation? Which is which? I’m confused. S: The different kinds of arbitration under RA 9285:
S: It will happen during the preliminary conference. That is 1. Domestic arbitration (governed by Chapter 5)
CAM.
2. International commercial arbitration (Chapter 4)
How about CRM?
3. Individual arbitration
S: After filing of the answer.
4. Institutional arbitration
Why? Kasi baka e-raise niya doon na, “Uy! Meron
kaming agreement na hindi muna namin e-file ito in 5. Arbitration of construction disputes
court. So suspend the proceedings, mediation muna 6. Court-referred arbitration (provided under Section 24
tayo.” Ganun ba yon? of RA 9285)
S: In CRM, the court did not acquire jurisdiction over the case How do you define Domestic arbitration (DA)?
yet.
S: Domestic arbitration is where the seat of arbitration is in the
Over the case? So hindi ka pa talaga nag file ng case in Philippines.
court? Kasi pag jurisdiction over the subject matter, it is
acquired upon the filing of the complaint, right? Anong How about International commercial arbitration (ICA)?
stage pag CRM?
S: International Arbitration means an arbitration where:
ITANONG KO YAN SA EXAM NIYO. YOU RESEARCH ON (a) the parties to an arbitration agreement have, at the time
THAT.
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of the conclusion of that agreement, their places of business It is one which contemplates arbitration under the auspices of a
in different states; or body, whether domestic or international, under which the
arbitration proceedings are conducted.
(b) one of the following places is situated outside the
Philippines in which the parties have their places of business: So there is submission of the arbitration to an
institution, a particular body. Like what?
a) the place of arbitration if determined in, or pursuant
to, the arbitration agreement; S: NCMB (national Conciliation and Mediation Board) for
disputes like before going on strike, they have to resort first to
b) any place where a substantial part of the obligations
mediation.
of the commercial relationship is to be performed or the
place with which the subject matter of the dispute is How about disputes including checks? What body?
most closely connected; or
S: PCHC (Philippine Clearing House Corporation) for check-
(c) the parties have expressly agreed that the subject matter clearing disputes limited to banking institutions.
of the arbitration agreement relates to more than one
How about construction disputes?
country.
S: CIAC (Construction Industry Arbitration Commission)
How do distinguish the DA and ICA?
How do you define Court-referred Arbitration?
S: The seat of arbitration of DA is in the PH while in ICA, it is
not necessarily in the PH.
SEC. 24. Referral to Arbitration. A court before which an action
What if the parties assume that the seat of arbitration is is brought in a matter which is the subject matter of an
in PH. Dito sila nag conduct ng business. The contracts arbitration agreement shall, if at least one party so requests not
are to be performed here in PH. Tapos the parties later that the pre-trial conference, or upon the request of both
agreed na ICA itong agreement namin. Is that correct? parties thereafter, refer the parties to arbitration unless it finds
May they stipulate? that the arbitration agreement is null and void, inoperative or
S: it is correct because there are two general types of incapable of being performed.
arbitration, the DA and ICA. So it is still covered.
What are the two general types of arbitration that takes
You mean to say that if the parties agreed, ok lang? place in the PH under RA 9285? Under the law, DA is
What will govern is the agreement of the parties? Is defined as that which is not international. Now my
that correct? question is what is ICA?
S: yes. Under RA 9285, it shall be governed by the agreement International Arbitration means an arbitration where:
of the parties.
(d) the parties to an arbitration agreement have, at the time
So when you say ICA, ok lang na ang seat of arbitration of the conclusion of that agreement, their places of business
is in the PH? How will you distinguish that from the seat in different states; or
of DA?
(e) one of the following places is situated outside the
S: the distinguishing factor is the governing law. DA is governed Philippines in which the parties have their places of business:
by the Arbitration Law, while ICA is governed by the Model Law.
a) the place of arbitration if determined in, or pursuant
How do you define Arbitration? to, the arbitration agreement;
S: Arbitration means a voluntary dispute resolution process in b) any place where a substantial part of the obligations
which one or more persons acting as arbitrators, appointed in of the commercial relationship is to be performed or the
accordance with the agreement of the parties, or rules place with which the subject matter of the dispute is
promulgated pursuant to this Act, resolve a dispute by most closely connected; or
rendering an award.
(f) the parties have expressly agreed that the subject matter
How do you distinguish litigation from arbitration? of the arbitration agreement relates to more than one
S: Arbitration means a voluntary dispute resolution process in country.
which one or more arbitrators, appointed in accordance with the In both DA and ICA, the seat of arbitration is in the
agreement of the parties or these Rules, resolve a dispute by Philippines. Both give rise to awards rendered in the
rendering an award, while Litigation is a lawsuit or legal action Philippines or the Philippine Arbitral award. In both
including all proceedings therein. DA and ICA, they render what is known as domestic
How do you distinguish judge from arbitrator? award.
S: a judge presides in court when an action is filed therein, What are the exceptions to the application of RA 9285?
whereas the arbitrator is the one who presides, as appointed by
the parties, the arbitration process. SEC. 6. Exception to the Application of this Act. The provisions
of this Act shall not apply to resolution or settlement of the
How do you define Institutional Arbitration? following:
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(a) labor disputes covered by Presidential Decree No. 442, thereof. These disputes may involve government or private
otherwise known as the Labor Code of the Philippines, as contracts. For the Board to acquire jurisdiction, the parties to a
amended and its Implementing Rules and Regulations; dispute must agree to submit the same to voluntary arbitration.
(b) the civil status of persons; The jurisdiction of the CIAC may include but is not limited to
violation of specifications for materials and workmanship;
(c) the validity of a marriage;
violation of the terms of agreement; interpretation and/or
(d) any ground for legal separation; application of contractual time and delays; maintenance and
defects; payment, default of employer or contractor and
(e) the jurisdiction of courts; changes in contract cost.
(f) future legitime; Excluded from the coverage of this law are disputes arising from
(g) criminal liability; and employer-employee relationships which shall continue to be
covered by the Labor Code of the Philippines.
(h) those which by law cannot be compromised.
What if one of the parties to the construction contract
Labor disputes – This is governed by Labor Code. which bears the arbitration agreement is not a domestic
The civil status of persons – This cannot be subjected to party but an international party. Does the CIAC have
compromise. jurisdiction? Can it acquire jurisdiction?
The validity of a marriage – Again, this cannot be subjected to S: Yes, as long as there is a construction contract entered into
compromise. It is fixed by law. in the Philippines. Even if one of the parties to the contract is an
international party, the CIAC may still acquire jurisdiction over
The jurisdiction of courts – This is conferred by law. the same.
Future legitime – Still inchoate; this cannot be the subject of Take note class, the jurisdiction of the CIAC may
compromise/ include, but is not limited to violations of specifications
for materials and workmanship, violation of the terms of
Criminal liability – This cannot be compromised. But the civil
the agreement, interpretation or application of
aspect may be compromised.
contractual time and place, maintenance, and defects,
How about status of a child, can that be compromised? payments, default of employer or contractor and
changes in the construction costs, claims, including
S: No. Civil status is determined by law.
valuation, pricing of work, interpretation of specification
of construction practices, engineering technique,
evaluation of work accomplishment, claim of price
January 4, 2016 (EAEscovilla) escalation, adequacy of structural design, adequacy of
supervision, including damages arising from takeover.
CONSTRUCTION DISPUTES
Please take note of that.
Arbitration of constructions disputes — it is governed by
what law? Under Section 35 of R.A. 9285, the law expands and
clarifies the original and exclusive jurisdiction of the
S: Arbitration is governed by E.O. 1088 or the Construction
CIAC to include disputes arising under the construction
Industry Arbitration Law.
contract, not only between or among the parties who
What is the condition for the Board to acquire are bound thereto or who are otherwise bound by the
jurisdiction? Meaning to say, parties to the contract, arbitration agreement. But take note class, it also
they should have a what? includes by reference, whether such parties are project
owner, contractor, subcontractor, quantity surveyor,
S: There should be a submission agreement. They should enter bondsman or issuer of an insurance policy in a
into an arbitration agreement, whether in the form of an construction project.
arbitration clause, or submission agreement that all disputes
arising from or connected to the contract shall be resolved May construction disputes be settled through other
before the CIAC. modes of settling disputes?
When did E.O. 1088 take effect? A: Yes. Under RA 9285
S: It took effect in 1985. Please take note.
Section 17. x x x
What is the jurisdiction of the CIAC again?
(d) The parties may agree in the settlement agreement that the
mediator shall become a sole arbitrator for the dispute and shall
Sec. 4. Jurisdiction. The CIAC shall have original and exclusive treat the settlement agreement as an arbitral award which shall
jurisdiction over disputes arising from, or connected with, be subject to enforcement under Republic Act No. 876,
contracts entered into by parties involved in construction in the otherwise known as the Arbitration Law, notwithstanding the
Philippines, whether the dispute arises before or after the provisions of Executive Order No. 1008 for mediated dispute
completion of the contract, or after the abandonment or breach
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outside of the CIAC. is okay. Now my question is, what is the prevailing rule
right now?
What is the requirement of the law so that they can General rule, if the parties file their construction dispute
settle their dispute through mediation? in the RTC, what should RTC do? It should dismiss the
case because the RTC clearly has no jurisdiction
Section. 36. Authority to Act as Mediator or Arbitrator. By pursuant to E.O. 1008, under Section 39.
written agreement of the parties to a dispute, an arbitrator may
act as mediator and a mediator may act as arbitrator. The What if matigas ang ulo ng parties, hindi sila bilib sa
parties may also agree in writing that, following a successful CIAC. Ifile natin ito sa court kasi bright si judge, pwede
mediation, the mediator shall issue the settlement agreement in ba yun?
the form of an arbitral award.
SEC. 39. Court to Dismiss Case Involving a Construction
There must be a written agreement between the parties Dispute. A regional trial court which a construction dispute is
that the arbitrator will act as a mediator. Please take filed shall, upon becoming aware, not later than the pretrial
note of that. conference, that the parties had entered into an arbitration to
be conducted by the CIAC, unless both parties, assisted by their
Take note class, the leading case on construction respective counsel, shall submit to the regional trial court a
disputes is the case of China Chang Jang vs. Rosal. written agreement exclusive for the Court, rather than the CIAC,
So here, the law recognizes the principle of party autonomy. to resolve the dispute.
How about the case of National Irrigation Administration So they can do that, provided there is a written
vs. CA? agreement made by them.
So based on the China Chang case, as long as there is a Pero kung tanungin sa bar exam, can the courts take
submission agreement made by the parties in their cognizance of a construction dispute?
construction contract, they can submit their issues to a
forum other than CIAC, because of that party autonomy General rule: NO. Because CIAC has jurisdiction over the
principle. What is the prevailing rule right now? Can the same.
parties agree to submit their construction issue to a EXCEPT: Under Section 39 of R.A. 9285.
body other than CIAC? Is that allowed?
In other words, the law still recognizes the party
What happened in the case of Manila Insurance autonomy principle, so that if the parties agree in
Company vs. Spouses Amurao? writing to submit the construction dispute to the RTC
What are the requirements for the CIAC to acquire instead of the CIAC, okay na yon, sabi ni Section 39 of
jurisdiction? R.A. 9285.
A: First, the subject matter must be somehow related to the How about in the case of FF Cruz vs. HR Construction?
construction contract, and second the parties should have What is your mode of appeal from the CIAC to the
agreed that the said matter shall be subject to arbitration. Supreme Court?
That is based on the case of Manila Insurance vs. Spouses A: Rule 43 of the Rules of Court.
Amurao. Two requisites must concur:
As a reiteration, based on FF, the general rule is that
1. The subject matter must be somehow related to the arbitral awards are final and executory, except on pure
construction contract; and questions of law. The mode of appeal is Rule 43 of Rules
2. The parties must have agreed to submit the dispute of Court. CIAC is a quasi-judicial body, pwede ka pang
for arbitration proceeding. mag-appeal before the Supreme Court under Rule 43.
What happened in the case of Metropolitan Cebu Water How about arbitral awards rendered in construction
District vs. Mactan Rock? disputes? Is it required to be confirmed by the courts to
be enforceable?
Does the CIAC have jurisdiction over a dispute arising
out of a water supply contract? The legal basis is found in E.O. 1008. It is immediately
executory.
A: Yes, as held by the Court when it cited Section 4 of E.O.
1008. So the general rule is all arbitral awards require
confirmation by the court to be executory, except
How about the case of Limconcen Inc. vs. Foundation awards rendered in construction disputes because of
Specialists? E.O. 1008.
Going back to the China Chang Jang case, the rule is
that as long as the parties agree to submit a
construction dispute to a body other than the CIAC, that January 18, 2015 (DJG)
CHECK-CLEARING DISPUTES
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This is the 3rd kind of dispute under the auspices of from the preliminary conference or the submission of the
PCHC for the PCHC ArbiCom. This was organized on May parties respective memoranda.
19, 1977 principally to provide a means of clearing
So usually if it is before the PCHC Arbicom, what
checks and other items pursuant to Section 102 of the
pleadings are allowed?
New Central Bank Act or RA 7653.
Only the complaint and the answer. So third-party complaint
Who can be participants?
must be filed before the courts.
The subject of these disputes are the banks.
In the case of Allied Bank, third party complaint was not allowed
How do you define banks? to be had because here, it refers to two banks that was already
referred to the PCHC Arbicom.
Bank is defined as an entity engaged in the lending of funds
obtained in the form of deposits. Case: HOME BANKERS AND TRUST COMPANY vs. CA
What is the condition sine qua non before the dispute In other words, even if arbitration is already
can be a subjected to arbitration before the PCHC commenced before a particular body, the court is not
ArbiCom? precluded from taking action in the said case? Why?
1. It must be authorized. The provisional remedy of preliminary attachment was filed
before the court so the principle to be remembered is that even
2. It must be banking institution.
if arbitration proceedings is already pending, this will not
3. It must be a member of PCHC. preclude the court from taking action over the case, which we
will later on learn under the Special ADR Rules.
4. The participation of the said banks in the clearing
operations in the PCHC is a manifestation of its Case: UNION BANK OF THE PHILIPPINES vs. CA
submission to its jurisdiction so that a mere fact that it
Case: INSULAR BANK vs. CA
is a banking institution, would not automatically
subject issues to the PCHC. What is the principle? Even if a particular case is already
pending arbitration in a particular body, the court is not
Case: ALLIED BANKING CORPORATION vs. CA
precluded from taking cognizance over the case. Here, they filed
Unsay labot sa trial court? a civil case before the court and they sought the issuance of a
writ of preliminary attachment. So there are still judicial
It has no authority to decide cases involving check clearing remedies that can still be availed of even if a particular issue is
disputes because it is the PCHC which has the primary authority already lodged before a particular body that hears.
over check-clearing disputes.
Case: INSULAR SAVINGS vs. FAR EAST BANK
How about the third-party complaint? Can that be
resorted before the PCHC? What are the allowable What is the remedy of a party, assuming that a decision
pleading that may be filed before the PCHC? is already rendered by the PCHC ArbiCom, and he is not
satisfied with the decision? What are the remedies
Can you read the procedure on how arbitration is before the Arbicom?
conducted before the PCHC?
The decision or award of the Arbitration Committee or of the
1) Any dispute or controversy between two or more clearing Sole Arbitrator or of the Board of Directors, as the case may be,
participants involving any check or item cleared through the shall be appealable only on questions of law to any of the
PCHC shall be submitted to the ArbiCom through a written Regional Trial Courts in the National Capital Region where the
complaint of any participant in the controversy. Head Office of any of the parties is located. The appellant shall
2) Five copies of the complaint shall be filed with the ArbiCom perfect his appeal by filing a notice of appeal to the Arbitration
copy furnish the respondent who shall have 30 non- Secretariat and filing a Petition with the Regional Trial Court of
extendible days to file his answer. the National Capital Region for the review of the decision or
award of the committee or sole arbitrator or of the Board of
3) Upon the filing of the complaint by a member bank, the Directors, as the case may be, within a non-extendible period of
PCHC shall create an ArbiCom consisting of four members, fifteen (15) days from and after its receipt of the order denying
three of whom are incumbent or retired senior officers of or granting said motion for reconsideration or new trial had
participating banks not involved in the dispute and a fourth been filed, within a non-extendible period of fifteen (15) days
member who shall be an attorney at law with at least five from and after its receipt of the order denying or granting said
years experience as a bank lawyer without any previous or motion for reconsideration or of the decision rendered after the
present relation with any of the participating bans involved new trial if one had been granted.
and who shall only have advisory function without any right
to vote. After that, what are his remedies? (provided in the case)
4) The hearing shall not last for more than 30 days after 1. Petition the proper RTC to issue an order vacating the
which the parties shall have a non- extendible period of 30 award on the grounds provided for under Section 24 of
days to file their memoranda. The decision of the sole the Arbitration Law.
arbitrator or the ArbiCom shall be made within 45 days 2. Petition for review under Rule 43 of the Rules of Court
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with the Court of Appeals on questions of fact, of law, works; commercial representation or agency; factoring; leasing,
or mixed questions of fact and law. consulting; engineering; licensing; investment; financing;
banking; insurance; joint venture and other forms of industrial
3. Petition for certiorari under Rule 65 of the Rules of
or business cooperation; carriage of goods or passengers by air,
Court on the ground that the Arbitrator Committee
sea, rail or road.
acted without or in excess of its jurisdiction or with
grave abuse of discretion amounting to lack or excess
of jurisdiction. Take note class that both DA and ICA, the seat of
arbitration is in the Philippines. Both takes place and
So Arbicom is a quasi-judicial body? give rise to awards rendered in the Philippines,
Yes. It was held in the case that, “since this case involves acts So, the general premise is that arbitration, whether DA
or omissions of a quasi-judicial agency, the petition should be or ICA, can be ad hoc.
filed in and cognizable only by the Court of Appeals.”
When is arbitration ad hoc?
What is the requirement for PCHC ArbiCom to render a
valid judgment? It is when the adopted procedure is set by the agreement of the
parties, as they deem applicable, without necessarily conducting
That there be a quorum and a vote of any tow members. “The arbitration within the auspices of any arbitral body. It is only
Chariman and any member shall be sufficient to constitute a among the parties themselves.
quorum for the purpose of conducting conferences or hearings
or trials before the ArbiCom but a vote of any two members of When is arbitration institutional?
the ArbiCom shall be necessary to render and promulgate an It is when it involves an institutional body like in the case of
order, resolution, award or decision of the case presented for labor, check-clearing and construction disputes.
arbitration except if it involves or the principal amount is
300,000 or less, then the arbitration shall be heard by a sole What is the rule that will govern the validity of an
arbitrator and his vote shall be sufficient to render and arbitration agreement?
promulgate the said decision.” If DA, Philippine law. If ICA, the validity of the agreement is to
be determined under the law agreed upon by the parties to the
said agreement.
ARBITRATION AS A CONTRACT If there is no law agreed by the parties as to what law
What is the importance of arbitration in contracts? will govern the validity of the agreement? What is the
applicable rule?
Arbitration is important for the convenience of the parties.
It is the Philippine law shall govern. So conflicts rule.
What are the two basic/general categories of arbitration
that can be held in the PH under RA 9285? Why is arbitration deemed as a separate contract from
the main contract itself?
DA and ICA. Domestic Arbitration is governed by the Arbitration
Law or RA 876. If it is International Commercial Arbitration it is It binds only the parties who agreed to it as well as their heirs
governed by the Model Law. or assignees. (Relativity of contract principle)
DA is an arbitration that is not international where the In the case of GONZALES vs. CLIMAX MINING, GR 161957,
proceedings are held or the award is rendered or the seat of January 22, 2007, the SC ruled that an arbitration agreement is
arbitration in the Philippines and does not have any of the contractual in nature. Necessarily, a contract is required for
characteristics that make it international. While ICA, if the arbitration to take place and to be binding.
parties made an agreement at the time of the conclusion of that
So, if arbitration is deemed as a contract, here are the particular
agreement their place of business in the different states or
issues that are involved in the matter:
where the place of arbitration as determined under the
agreement of the place where the substantial part of the 1. Whether the arbitration agreement relied upon by the
obligations of the commercial relationships is to be performed or party is in existence; and
with which the subject matter of the dispute is most closely
2. If so, whether or not it is valid and enforceable.
connected and situated outside the state where the parties have
their places of business or that the parties had expressly agreed What are the conditions for arbitration to proceed?
that the subject matter of the arbitration agreement is
international. There must be an (1) arbitration clause of a valid and
enforceable arbitration agreement in the contract for future
When is an arbitration commercial? disputes, or (2) a submission agreement for arbitration of
present dispute.
SEC. 21. Commercial Arbitration. An arbitration is "commercial"
Take note of these kay dili man automatic ang arbitration.
if it covers matters arising from all relationships of a commercial
nature, whether contractual or not. Relationships of a What is the Freedom of contract principle?
transactions: any trade transaction for the supply or exchange
The parties are free to establish such stipulations as to what will
of goods or services; distribution agreements; construction of
govern their agreement as they may deem convenient provided
Page 7 of 29
they are not contrary to law, morals, good customs, public settle its disputes even with private parties.
policy or public order.
Take note that there are no provisions under the
How about the mutuality of contracts principle? Philippine law prohibiting the state or its agencies from
resorting to arbitration whether with Philippine
The contract must bind both contracting parties. Its validity and
nationals or Foreign nationals.
compliance cannot be left to the will of anyone of them. In
other words, if there is an arbitration agreement, then anyone Why?
of the parties have the right to compel the other party to refer
Because arbitration is regarded as an alternative mode
the dispute to arbitration.
to settle disputes in court.
Corollary to this rule, can a contract containing an
Likewise, in E.O 1008 (Construction Industry Arbitration
arbitration clause be unilaterally rescinded?
Law), it expressly recognizes that arbitration may
No on the basis of the mutuality of contract principle. involve government contracts.
How about Form? What is the requirement in order that an arbitration
agreement will be binding upon the State and its
The formal requirements of an agreement to arbitrate are
agencies?
therefore the following: (a) it must be in writing and (b) it must
be subscribed by the parties or their representatives. There should be consent or approval of the authorized
public officers or governing boards as the case may be
Section 4. Form of arbitration agreement. A contract to of the State or agencies concerned. Otherwise, such
arbitrate a controversy thereafter arising between the parties, agreements will not be binding upon the State or its
as well as a submission to arbitrate an existing controversy shall agencies.
be in writing and subscribed by the party sought to be charged, It is binding not only upon the parties but as well as
or by his lawful agent. The making of a contract or submission their assigns and heirs.
for arbitration described in section two hereof, providing for
arbitration of any controversy, shall be deemed a consent of the SALAS v. LAPERAL: A submission to
parties to the jurisdiction of the Court of First Instance of the arbitration is a contract. As such, the
province or city where any of the parties resides, to enforce Agreement, containing the stipulation on
such contract or submission. arbitration, binds the parties thereto, as well
as their assigns and heirs. But only they.
What is the Form for? Validity? Enforceability? How Petitioners, as heirs of Salas, Jr., and
about the Parole Evidence Rule? respondent Laperal Realty are certainly
bound by the Agreement. If respondent
YOU RESEARCH ON THAT. Laperal Realty, had assigned its rights under
the Agreement to a third party, making the
former, the assignor, and the latter, the
January 30, 2016 (JRLumanag) assignee, such assignee would also be
CAPACITY TO CONTRACT bound by the arbitration provision since
assignment involves such transfer of rights
When we talk of parties, we have to take into as to vest in the assignee the power to
consideration the capacity of the parties to contract? So enforce them to the same extent as the
what is the rule with regard to the capacity of the assignor could have enforced them against
parties to contract? the debtor[18] or in this case, against the
heirs of the original party to the Agreement.
If he is a Philippine national, then it is to be determined by the
However, respondents Rockway Real Estate
law of the contract.
Corporation, South Ridge Village, Inc.,
What about legal capacity of a foreigner in a contract? Maharami Development Corporation,
spouses Abrajano, spouses Lava, Oscar
It is determined by his national law based on Article 15 of the Dacillo, Eduardo Vacuna, Florante de la Cruz
Civil Code. and Jesus Vicente Capellan are not assignees
of the rights of respondent Laperal Realty
Art. 15. Laws relating to family rights and duties, or to the under the Agreement to develop Salas, Jr.s
status, condition and legal capacity of persons are binding upon land and sell the same. They are, rather,
citizens of the Philippines, even though living abroad. buyers of the land that respondent Laperal
Realty was given the authority to develop
How about the capacity to contract of the State and its and sell under the Agreement. As such, they
instrumentality? are not assigns contemplated in Art. 1311 of
the New Civil Code which provides that
Apparently they can enter into arbitration contract.
contracts take effect only between the
GASCON v. ARROYO: The State and its parties, their assigns and heirs.
instrumentalities can resort to arbitration to
Page 8 of 29
So they were not bound by the agreement since they directly or by reference whether such parties are project owner,
were not the heirs of Salas. contractor, subcontractor, quantity surveyor, bondsman or
issuer of an insurance policy in a construction project.
Take note that under Section 25 of RA 9285:
The agreement to arbitrate may be effected by
SEC. 25. Interpretation of the Act. - In interpreting the Act, the
subsequent events that may prevent the non application
court shall have due regard to the policy of the law in favor of
of the arbitration agreement if the other parties who are
arbitration. Where action is commenced by or against multiple
involved and who are not privy thereto or bound by the
parties, one or more of whom are parties who are bound by the
arbitration agreement must be included in the suit so
arbitration agreement although the civil action may continue as
that a complete resolution of the dispute is possible.
to those who are not bound by such arbitration agreement.
DEL MONTE VS. CA: A careful examination
In relation to the relativity of contract principle, only of the instant case shows that the arbitration
those assigns and heirs are bound by the contract. clause in the Distributorship Agreement
between petitioner DMC-USA and private
What if a case is filed in court which involves multiple respondent MMI is valid and the dispute
parties, some enter into arbitration and some did not, between the parties is arbitrable. However,
what will happen to the civil case? (Since it is the policy of this Court must deny the petition.
the State na mauna ang arbitration before court action or policy
of judicial restraint) xxx
So, the civil case should be suspended and allow the The provision to submit to arbitration any
parties to arbitrate. dispute arising therefrom and the
relationship of the parties is part of that
Rule 4.7. Multiple actions and parties. - The court shall not contract and is itself a contract. As a rule,
decline to refer some or all of the parties to arbitration for any contracts are respected as the law between
of the following reasons: the contracting parties and produce effect as
between them, their assigns and heirs.
a. Not all of the disputes subject of the civil action may be Clearly, only parties to the Agreement, i.e.,
referred to arbitration; petitioners DMC-USA and its Managing
b. Not all of the parties to the civil action are bound by the Director for Export Sales Paul E. Derby, Jr.,
arbitration agreement and referral to arbitration would result in and private respondents MMI and its
multiplicity of suits; Managing Director LILY SY are bound by the
Agreement and its arbitration clause as they
c. The issues raised in the civil action could be speedily and are the only signatories thereto. Petitioners
efficiently resolved in its entirety by the court rather than in Daniel Collins and Luis Hidalgo, and private
arbitration; respondent SFI, not parties to the
Agreement and cannot even be considered
d. Referral to arbitration does not appear to be the most
assigns or heirs of the parties, are not bound
prudent action; or
by the Agreement and the arbitration clause
e. The stay of the action would prejudice the rights of the therein. Consequently, referral to arbitration
parties to the civil action who are not bound by the arbitration in the State of California pursuant to the
agreement. arbitration clause and the suspension of the
proceedings in Civil Case No. 2637-MN
The court may, however, issue an order directing the inclusion
pending the return of the arbitral award
in arbitration of those parties who are not bound by the
could be called for but only as to petitioners
arbitration agreement but who agree to such inclusion provided
DMC-USA and Paul E. Derby, Jr., and private
those originally bound by it do not object to their inclusion.
respondents MMI and LILY SY, and not as to
the other parties in this case, in accordance
Please take note of Section 25, RA 9285. with the recent case of Heirs of Augusto L.
Based on such section in relation to 4.7, arbitration Salas, Jr. v. Laperal Realty Corporation,
agreement binds only the parties thereto except when which superseded that of Toyota Motor
the court issues an order directing the inclusion and Philippines Corp. v. Court of Appeals.
arbitration of parties who are not bound by the xxx
agreement but who agree to such inclusion and those
originally bound agree to their inclusion. The object of arbitration is to allow the
expeditious determination of a dispute.
SEC. 35. Coverage of the Law. - Construction disputes which Clearly, the issue before us could not be
fall within the original and exclusive jurisdiction of the speedily and efficiently resolved in its
Construction Industry Arbitration Commission (the entirety if we allow simultaneous arbitration
"Commission") shall include those between or among parties to, proceedings and trial, or suspension of trial
or who are otherwise bound by, an arbitration agreement, pending arbitration. Accordingly, the interest
Page 9 of 29
of justice would only be served if the trial jurisdiction over the cases at bar.
court hears and adjudicates the case in a
xxx
single and complete proceeding.
In Del Monte Corporation-USA v. Court of
So the rule is that based on the relativity of contract
Appeals, even after finding that the
principle, it will only bind the parties, their assigns and
arbitration clause in the Distributorship
heirs.
Agreement in question is valid and the
TOYOTA MOTOR PHIL. VS. CA: The dispute between the parties is arbitrable, this
contract of sale executed between APT and Court affirmed the trial courts decision
Toyota provides an arbitration clause xxx denying petitioners Motion to Suspend
Contracts are respected as the law between Proceedings pursuant to the arbitration
the contracting parties. As such, the parties clause under the contract. In so ruling, this
are thereby expected to abide with good Court held that as contracts produce legal
faith in their contractual commitments. effect between the parties, their assigns and
Toyota is therefore bound to respect the heirs, only the parties to the Distributorship
provisions of the contract it entered into with Agreement are bound by its terms, including
APT. the arbitration clause stipulated therein. This
Court ruled that arbitration proceedings
xxx
could be called for but only with respect to
Toyota filed an action for reformation of its the parties to the contract in question.
contract with APT, the purpose of which is to Considering that there are parties to the
look into the real intentions/agreement of case who are neither parties to the
the parties to the contract and to determine Distributorship Agreement nor heirs or
if there was really a mistake in the assigns of the parties thereto, this Court,
designation of the boundaries of the citing its previous ruling in Salas, Jr. v.
property as alleged by Toyota. Such Laperal Realty Corporation, held that to
questions can only be answered by the tolerate the splitting of proceedings by
parties to the contract themselves. This is a allowing arbitration as to some of the parties
controversy which clearly arose from the on the one hand and trial for the others on
contract entered into by APT and Toyota. the other hand would, in effect, result in
Inasmuch as this concerns more importantly multiplicity of suits, duplicitous procedure
the parties APT and Toyota themselves, the and unnecessary delay. Thus, we ruled that
arbitration committee is therefore the proper the interest of justice would best be served if
and convenient forum to settle the matter as the trial court hears and adjudicates the case
clearly provided in the deed of sale. in a single and complete proceeding.
xxx xxx
Having been apprised of the presence of the It is established that petitioners in the
arbitration clause in the motion to dismiss present cases who have presented legitimate
filed by APT, Judge Tensuan should have at interests in the resolution of the controversy
least suspended the proceedings and are not parties to the PIATCO Contracts.
directed the parties to settle their dispute by Accordingly, they cannot be bound by the
arbitration (Sec. 7, RA 876). Judge Tensuan arbitration clause provided for in the ARCA
should have not taken cognizance of the and hence, cannot be compelled to submit to
case. arbitration proceedings. A speedy and
decisive resolution of all the critical issues in
Based on this ruling, the mere addition of a party who is the present controversy, including those
not a party to the arbitration agreement does not render raised by petitioners, cannot be made before
the arbitration clause ineffective. an arbitral tribunal. The object of arbitration
Is the prior recourse to arbitration necessary before the is precisely to allow an expeditious
court could pass upon the merits of a case? determination of a dispute. This objective
would not be met if this Court were to allow
No. the parties to settle the cases by arbitration
AGAN VS. PIATCO: There is one more as there are certain issues involving non-
procedural obstacle which must be parties to the PIATCO Contracts which the
overcome. The Court is aware that arbitral tribunal will not be equipped to
arbitration proceedings pursuant to Section resolve.
10.02 of the ARCA have been filed at the So which will come first? Arbitration. But the rule in this
instance of respondent PIATCO. Again, we case is it states that it will not oust the court of its
hold that the arbitration step taken by jurisdiction over the case.
PIATCO will not oust this Court of its
Page 10 of 29
GENERAL RULE: Arbitration precludes immediate 5. criminal liability;

recourse to the court.
6. those which by law cannot be compromised
Rule 2.2. Policy on arbitration.- (A) Where the parties have These are matters which cannot be the subject of arbitration
agreed to submit their dispute to arbitration, courts shall refer (Refer to Section 6, RA 9285 since enumeration given is
the parties to arbitration pursuant to Republic Act No. 9285 incomplete)
bearing in mind that such arbitration agreement is the law
between the parties and that they are expected to abide by it in ESCANO VS. CA (100 SCRA 197): SC
good faith. Further, the courts shall not refuse to refer parties ruled that courts cannot create contracts.
to arbitration for reasons including, but not limited to, the Another important principle is that under Article 1315 of
following: the Civil Code.
a. The referral tends to oust a court of its jurisdiction;
Art. 1315. Parties to a contract are bound not only to the
b. The court is in a better position to resolve the dispute subject fulfillment of what has been expressly stipulated but also to all
of arbitration; the consequences which, according to their nature, may be in
c. The referral would result in multiplicity of suits; keeping with good faith, usage and law.
d. The arbitration proceeding has not commenced;

And the area of agreement between the parties must
e. The place of arbitration is in a foreign country; extend to all points that the parties consider essential
otherwise there is no contract between them. Thus, the
f. One or more of the issues are legal and one or more of the parties are free to establish stipulations, terms and
arbitrators are not lawyers; conditions in their contradict provided it is not contrary
g. One or more of the arbitrators are not Philippine nationals; or to law, morals and public policy.
h. One or more of the arbitrators are alleged not to possess the Relate this to evidence. If there is contract, everything
required qualification under the arbitration agreement or law. must be reduced in writing.
So to reiterate, GR is that arbitration agreement Rule 2.2 The Special ADR Rules recognize the principle of
precludes immediate recourse to the court because of separability of the arbitration clause, which means that said
the policy of the law on arbitration. clause shall be treated as an agreement independent of the
other terms of the contract of which it forms part. A decision
PLEASE MEMORIZE ENUMERATION ON RULE 2.2 that the contract is null and void shall not entail ipso jure the
Does the rule imply that there can be no judicial relief invalidity of the arbitration clause.
prior commencement of arbitration proceedings?
Does this principle of separability apply to domestic
No. arbitration? How about international commercial
arbitration?
Rule 3. Parties can file judicial relief involving the issue of
existence, validity and enforceability of the arbitration With regard to ICA, the basis there is Article 16 of the
agreement prior commencement of arbitration. Modal Law. The invalidity of the main contract does not
necessarily entail the invalidity of the arbitration
agreement kasi nga yung arbitration clause or
When shall it commence?
agreement is independent from the main contract.
Rule 3.3. When the petition may be filed. - The petition for
Article 16. xxx an arbitration clause which forms part of a
judicial determination of the existence, validity and/or
contract shall be treated as an agreement independent of the
enforceability of an arbitration agreement may be filed at any
other terms of the contract. A decision by the arbitral tribunal
time prior to the commencement of arbitration.
that the contract is null and void shall not entail ipso jure the
invalidity of the arbitration clause.
This applies only when the seat of arbitration is in the
Philippines, so domestic arbitration and international
In DA: Under RA 9285, it did not extend benefit of
commercial arbitration.
Article 16 of the Modal Law to DA. So the basis of saying
What can be subject matter of arbitration? Anything that this principle applies to DA is found in the provision
EXCEPT: of Civil Code which prescribes the separability of the
provisions in a contract (Obligations and Contracts),
1. civil status of persons;
Sections 2, 6 and 7 of the Arbitration Law.
2. validity of a marriage;
Section 2. xxx Such submission or contract shall be valid,
3. any ground for legal separation; enforceable and irrevocable, save upon such grounds as exist at
law for the revocation of any contract xxx
4. the jurisdiction of courts;
Page 11 of 29
Section 6. xxx A party aggrieved by the failure, neglect or close to the trial date or delayed for a long
refusal of another to perform under an agreement in writing period before asking for a stay of the suit
providing for arbitration may petition the court for an order
directing that such arbitration proceed in the manner provided • Defendant seeking arbitration filed a
for in such agreement xxx counterclaim asking for a stay of the
proceedings
Section 7. Stay of civil action. If any suit or proceeding be
brought upon an issue arising out of an agreement providing for • Important intervening steps such as resort to
the arbitration thereof, the court in which such suit or discovery procedure not otherwise available in
proceeding is pending, upon being satisfied that the issue
arbitration have been taken
involved in such suit or proceeding is referable to arbitration,
shall stay the action or proceeding until an arbitration has been • Delay affected, misled or prejudiced opposing
had in accordance with the terms of the agreement: Provided,
party
That the applicant, for the stay is not in default in proceeding
with such arbitration. • Parties in fact litigate in a court of law a dispute
that is subject to arbitration
So principle of separability applies to both domestic and
international commercial arbitrations. GENERAL RULE: Invoke that there is existence of
arbitration agreement.
Is fraudulent inducement to contract subject to
arbitration? Is that an arbitrable issue? Diba it precludes immediate recourse to court action but
is this absolute?
YES, it can be subject to arbitration. If you were
fraudulently induced to contract, the contract is No. Rule 3.1
voidable since consent is vitiated.
Rule 3.1.When judicial relief is available. - The judicial relief
In all cases of fraud, the circumstances constituting
provided in Rule 3, whether resorted to before or after
fraud, it must be stated with particularity.
commencement of arbitration, shall apply only when the place
of arbitration is in the Philippines.
TIMELINESS AND WAIVER

Okay so Rule 3 applies to both DA and ICA becase the
When do you invoke the existence of an arbitration seat is in the Philippines.
agreement?
Who may file for the petition?
You have to distinguish if ICA or DA.
Rule 3.2. Who may file petition. - Any party to an arbitration
If ICA, invoked when the defendant files his answer. If DA, it
agreement may petition the appropriate court to determine any
must be invoked not later than the pre-trial conference of the
question concerning the existence, validity and enforceability of
said case.
such arbitration agreement serving a copy thereof on the
Why should it be timely invoked? respondent in accordance with Rule 1.4
It must be timely invoked because it will be deemed waived. It Rule 3.3. When the petition may be filed. - The petition for
constitutes waiver of action. judicial determination of the existence, validity and/or
enforceability of an arbitration agreement may be filed at any
What is the effect of the failure of defendant to raise
time prior to the commencement of arbitration.
arbitration in a motion to dismiss?
Despite the pendency of the petition provided herein, arbitral
Obviously deemed waived.
proceedings may nevertheless be commenced and continue to
the rendition of an award, while the issue is pending before the
(Rules of Court) Rule 9, Section 1. Defenses and objections court.
not pleaded. — Defenses and objections not pleaded either in a
motion to dismiss or in the answer are deemed waived. Rule 3.4.Venue. - A petition questioning the existence, validity
and enforceability of an arbitration agreement may be filed
You have to invoke that to preclude waiver. before the Regional Trial Court of the place where any of the
petitioners or respondents has his principal place of business or
Factors considered when a party is deemed to have waived his residence.
right to require arbitration:
Rule 3.5. Grounds. - A petition may be granted only if it is
• Party's action are inconsistent with the right to shown that the arbitration agreement is, under the applicable
arbitrate law, invalid, void, unenforceable or inexistent.
• Litigation machinery has been substantially The grounds here are exclusive ha. Take note that this
invoked can be had before arbitration proceedings.
• Party either requested arbitration enforcement
Page 12 of 29
What if the court determines that the arbitration

Rule 3.6.Contents of petition. - The verified petition shall state agreement is void, inexistent and unenforceable?
the following:
If the court determines that the agreement is void,
a. The facts showing that the persons named as inexistence and unenforceable, then the court may
petitioner or respondent have legal capacity to sue or proceed to hear and decide the case. What can be raised
be sued; (57) before the arbitral tribunal is when the court
b. The nature and substance of the dispute between makes a prima facie finding that there exists a binding
the parties; and enforceable arbitration agreement. You raise the
issue of EVE of the arbitration agreement before the
c. The grounds and the circumstances relied upon by arbitral tribunal or the court in an action to vacate or set
the petitioner to establish his position; and aside an arbitral award. Take note of this remedy and
d. The relief/s sought. the rule on non forum shopping likewise applies.
Rule 3 is a special proceeding ha, commenced through a
Apart from other submissions, the petitioner must verified petition, is summary in nature and the rule on
attach to the petition an authentic copy of the non forum shopping is observed.
Rule is that an arbitration agreement that is timely
Through a verified petition ha. invoked precludes court action.
So if a case is prematurely filed in court, what should
Rule 3.11. Relief against court action.
the court do?
- Where there is a prima facie determination upholding the
In violation of the arbitration agreement. The court
should not dismiss the case but merely suspend the
-A prima facie determination by the court upholding the proceedings. This is based on SC rulings:
existence, validity or enforceability of an arbitration agreement
CHUNG FU VS. CA: SC ruled that the
shall not be subject to a motion for reconsideration, appeal or
correc tprocedure is for the court to
certiorari.
susopend the case and not to dismiss it and
Such prima facie determination will not, however, prejudice the require the parties to proceed to arbitration
right of any party to raise the issue of the existence, validity and in accordance with their agreement.
enforceability of the arbitration agreement before the arbitral
APT VS. CA: SC ruled that it is erroneous
tribunal or the court in an action to vacate or set aside the
for the court to issue a final order dismissing
arbitral award. In the latter case, the court’s review of the
the case. Rather, the court should merely
arbitral tribunal’s ruling upholding the existence, validity or
suspend the case. Among the reasons for
enforceability of the arbitration agreement shall no longer be
merely suspending and not dismissing is that
limited to a mere prima facie determination of such issue or
the parties later on may go back to the court
issues as prescribed in this Rule, but shall be a full review of
where the case is pending to have the award
such issue or issues with due regard, however, to the standard
confirmed by the said court.
for review for arbitral awards prescribed in these Special ADR
Rules.
REMEDIES
Why is it that the court makes only a prima facie
determination under Rule 3.11? If it will be asked in the exam, if a case is filed in court
in contravention of agreement to arbitrate, what are
Because of the policy on judicial restrain or least
your remedies?
intervention of the courts. Why is there such a policy?
To encourage arbitration. 1. Motion to Suspend Court Proceedings
If you file before the court a petition, you are 2. Motion for Referral to ADR (found in Rule 4 of Special
questioning the existence, validity and enforceability of ADR Rules)
the arbitration agreement and the court makes a prima
facie finding that the existence, validity and
enforceability of the agreement, that is only prima facie Rule 4.1 Who makes the request. - A party to a pending action
determination or finding. filed in violation of the arbitration agreement, whether
contained in an arbitration clause or in a submission agreement,
Aside from the policy on judicial restraint, prima facie
may request the court to refer the parties to arbitration in
only because the parties can still raise the existence,
validity and enforceability of the arbitration agreement accordance with such agreement.
before the arbitral tribunal. That is why the remedy is Rule 4.2. When to make request. - (A) Where the arbitration
available before arbitration proceeding is commenced. agreement exists before the action is filed. - The request for
Take note special ADR rules is included in bar exams. referral shall be made not later than the pre-trial conference.
Page 13 of 29
After the pre-trial conference, the court will only act upon the Or simply refuses to agree to an arbitrator? You can ask
request for referral if it is made with the agreement of all the appointing authority to appoint an arbitrator.
parties to the case.
Who is this appointing authority?
(B)Submission agreement. - If there is no existing arbitration
agreement at the time the case is filed but the parties Rule 1.11 Appointing Authority" shall mean the person or
subsequently enter into an arbitration agreement, they may institution named in the arbitration agreement as the appointing
request the court to refer their dispute to arbitration at any time authority; or the regular arbitration institution under whose rule
during the proceedings. the arbitration is agreed to be conducted. Where the parties
have agreed to submit their dispute to institutional arbitration
Rule 4.3. Contents of request. - The request for referral shall
rules, and unless they have agreed to a different procedure,
be in the form of a motion, which shall state that the dispute is
they shall be deemed to have agreed to procedure under such
covered by an arbitration agreement.
arbitration rules for the selection and appointment of
Apart from other submissions, the movant shall attach to his arbitrators. In ad hoc arbitration, the default appointment of
motion an authentic copy of the arbitration agreement. arbitrators shall be made by the National President of the
Integrated Bar of the Philippines or his duly authorized
The request shall contain a notice of hearing addressed to all
representative.
parties specifying the date and time when it would be heard.
The party making the request shall serve it upon the respondent
to give him the opportunity to file a comment or opposition as The appointing authority is different from the arbitrator.
provided in the immediately succeeding Rule before the
hearing.
FUNCTION OF APPOINTING AUTHORITY
What is necessary? The function of appointing authority is when the
arbitrators agreed to by the parties are unable to
Notify all the parties concerned and should be dated and
discharge their functions. Sila ang magpili kung sino ang
set the time and place of hearing. This is mandatory for
pwede maging arbitrator. Please take note of that.
reviving motions (Motions, comply with the Rules)
Rule 4.5. Court action. - After hearing, the court shall stay the
REVIEW (On timeliness) –
action and, considering the statement of policy embodied in
Rule 2.4, above, refer the parties to arbitration if it finds prima An arbitration agreement invoked in a timely manner
facie, based on the pleadings and supporting documents precludes court action.
submitted by the parties, that there is an arbitration agreement
and that the subject-matter of the dispute is capable of Does that mean that the court is automatically
settlement or resolution by arbitration in accordance with precluded from taking cognizance of the case?
Section 6 of the ADR Act. Otherwise, the court shall continue No. So merely suspended ang proceedings before the
with the judicial proceedings. court and not to dismiss the same. Under Rule 3, sabi
natin, yung judicial relief prior to arbitration
If there is prima facie finding then refer to arbitration proceedings is only a prima facie determination that is
because precisely Rule 4 is Referral to ADR. Otherwise, being made by the court, upholding the EVE of the
continue with the judicial proceedings. arbitration agreement and if the court finds that the
arbitration agreement then proceed to arbitration.
Rule 4.6. No reconsideration, appeal or certiorari. - An order
What if nag proceed na tayo to arbitration. So punta na
referring the dispute to arbitration shall be immediately tayo sa arbitral tribunal. Before the tribunal, the issue of
executory and shall not be subject to a motion for
its jurisdiction is being questioned by the parties and
reconsideration, appeal or petition for certiorari. the arbitral tribunal rules that it does not have the
An order denying the request to refer the dispute to arbitration jurisdiction, what is your remedy?
shall not be subject to an appeal, but may be the subject of a
motion for reconsideration and/or a petition for certiorari. Rule 3.12.Who may file petition. - Any party to arbitration may
petition the appropriate court for judicial relief from the ruling of
Rule 4.8. Arbitration to proceed. - Despite the pendency of the
the arbitral tribunal on a preliminary question upholding or
action referred to in Rule 4.1, above, arbitral proceedings may
declining its jurisdiction. Should the ruling of the arbitral tribunal
nevertheless be commenced or continued, and an award may
declining its jurisdiction be reversed by the court, the parties
be made, while the action is pending before the court.
shall be free to replace the arbitrators or any one of them in
accordance with the rules that were applicable for the
Even if an action is filed in court contrary to the appointment of arbitrator sought to be replaced.
arbitration agreement, arbitration proceedings will
proceed independently of the civil action.
So your remedy is to file a petition for judicial relief from the
What is your remedy if the other party to arbitration ruling of the arbitral tribunal on a preliminary question
delays arbitration by delaying to choose an arbitrator? upholding or declining its jurisdiction.
Page 14 of 29
PROVISIONAL REMEDIES
Rule 3.14. Venue. - The petition may be filed before the
Regional Trial Court of the place where arbitration is taking Are provisional remedies available during arbitration? Yes. So
place, or where any of the petitioners or respondents has his where do you apply for these provisional remedies? Before the
principal place of business or residence. courts.
Rule 3.15. Grounds. - The petition may be granted when the
Rule 5.1.Who may ask for interim measures of protection. - A
court finds that the arbitration agreement is invalid, inexistent
party to an arbitration agreement may petition the court for
or unenforceable as a result of which the arbitral tribunal has no
interim measures of protection.
jurisdiction to resolve the dispute.
Rule 5.2.When to petition. - A petition for an interim measure
Rule 3.18. Court action. x x x
of protection may be made (a) before arbitration is commenced,
(B) No injunction of arbitration proceedings. - The court shall (b) after arbitration is commenced, but before the constitution
not enjoin the arbitration proceedings during the pendency of of the arbitral tribunal, or (c) after the constitution of the
the petition. arbitral tribunal and at any time during arbitral proceedings but,
at this stage, only to the extent that the arbitral tribunal has no
Rule 3.19. Relief against court action. - The aggrieved party
power to act or is unable to act effectively.
may file a motion for reconsideration of the order of the court.
The decision of the court shall, however, not be subject to
appeal. The ruling of the court affirming the arbitral tribunal’s So interim measures of protection can be availed of with
jurisdiction shall not be subject to a petition for certiorari. The the courts.
ruling of the court that the arbitral tribunal has no jurisdiction Can there be provisional remedies to be granted by the
may be the subject of a petition for certiorari. arbitral tribunal?
Yes.
Assume that the case is already pending before the
arbitral tribunal and you raise the issue na wala silay When?
jurisdiction. Now the arbitral tribunal defers its ruling
regarding its jurisdiction, what is your remedy? It is found under Rule 5.2
So provisional remedies may be availed before the court
Rule 3.20.Where no petition is allowed. - Where the arbitral and before the arbitral tribunal.
tribunal defers its ruling on preliminary question regarding its
jurisdiction until its final award, the aggrieved party cannot seek Rule 5.3.Venue. - A petition for an interim measure of
judicial relief to question the deferral and must await the final protection may be filed with the Regional Trial Court, which has
arbitral award before seeking appropriate judicial recourse. jurisdiction over any of the following places:
A ruling by the arbitral tribunal deferring resolution on the issue a. Where the principal place of business of any of the
of its jurisdiction until final award, shall not be subject to a parties to arbitration is located;
motion for reconsideration, appeal or a petition for certiorari.
b. Where any of the parties who are individuals
Can you resort to judicial relief? No. 3.20 provides that resides;
it must await the final arbitral award before seeking c. Where any of the acts sought to be enjoined are
appropriate judicial action. being performed, threatened to be performed or not
being performed; or
RULE OF LIBERALITY d. Where the real property subject of arbitration, or a

portion thereof is situated.
So the rules of liberality in relation to arbitration
agreement, the court in resolving the issue whether the What are the grounds for the issuance of this
controversy is subject to arbitration, the scope of provisional remedies?
arbitration of agreement byst be interpreted liberally so
that any doubt concerning arbitrable issues should be Rule 5.4.Grounds. - The following grounds, while not limiting
resolved in favor of arbitration. the reasons for the court to grant an interim measure of
LM POWER VS. CAPITAL INDUSTRIES: protection, indicate the nature of the reasons that the court
Ruled that so long as A CAUSE IS susceptible shall consider in granting the relief:
of an interpretation that covers the asserted a. The need to prevent irreparable loss or injury;
dispute, an order to arbitrate should ebg
ranted since any doubt should be resolved in b. The need to provide security for the performance of
favor of arbitration. any obligation;
If premature, remedy is Rule 4: Referral to Arbitration. c. The need to produce or preserve evidence; or
d. The need to compel any other appropriate act or
Page 15 of 29
omission. a. The arbitral tribunal granted the interim relief ex

parte; or
THROUGH A VERIFIED PETITION UNDER RULE 5.5 b. The party opposing the application found new
material evidence, which the arbitral tribunal had not
Rule 5.6.Type of interim measure of protection that a court considered in granting in the application, and which, if
may grant.- The following, among others, are the interim considered, may produce a different result; or
measures of protection that a court may grant:
c. The measure of protection ordered by the arbitral
a. Preliminary injunction directed against a party to tribunal amends, revokes, modifies or is inconsistent
arbitration; with an earlier measure of protection issued by the
b. Preliminary attachment against property or court.
garnishment of funds in the custody of a bank or a If it finds that there is sufficient merit in the opposition to the
third person; application based on letter (b) above, the court shall refer the
c. Appointment of a receiver; matter back to the arbitral tribunal for appropriate
determination.
d. Detention, preservation, delivery or inspection of
property; or, Rule 5.13.Modification, amendment, revision or revocation of
court’s previously issued interim measure of protection. - Any
e. Assistance in the enforcement of an interim measure court order granting or denying interim measure/s of protection
of protection granted by the arbitral tribunal, which the is issued without prejudice to subsequent grant, modification,
latter cannot enforce effectively. amendment, revision or revocation by the arbitral tribunal as
may be warranted.
Added by ma’am: Temporary order of protection (letter F
An interim measure of protection issued by the arbitral tribunal
daw ana siya)
shall, upon its issuance be deemed to have ipso jure modified,
What is a temporary order of protection? amended, revised or revoked an interim measure of protection
previously issued by the court to the extent that it is
Rule 5.9 (third paragraph) inconsistent with the subsequent interim measure of protection
issued by the arbitral tribunal.
In cases where, based solely on the petition, the court finds
that there is an urgent need to either (a) preserve property, (b)
IMPORTANT PROVISION DAW (Rule 5.13)
prevent the respondent from disposing of, or concealing, the
property, or (c) prevent the relief prayed for from becoming So in other words, pwede ka mag apply for prov rem
illusory because of prior notice, it shall issue an immediately before the courts and after that pwede ka pa mag apply
executory temporary order of protection and require the before the arbitral tribunal, provided that the two prov
petitioner, within five (5) days from receipt of that order, to rem are not inconsistent with each other.
post a bond to answer for any damage that respondent may
suffer as a result of its order. The ex-parte temporary order of Rule 5.14.Conflict or inconsistency between interim measure of
protection shall be valid only for a period of twenty (20) days protection issued by the court and by the arbitral tribunal. - Any
from the service on the party required to comply with the order. question involving a conflict or inconsistency between an interim
measure of protection issued by the court and by the arbitral
Ex-parte meaning wala na syang hearing, similar sa tribunal shall be immediately referred by the court to the
TRO. arbitral tribunal which shall have the authority to decide such
question.
What are the grounds for its issuance? Nasa rules. Take
note, requirement should be complied by the party. Ex- Rule 5.15.Court to defer action on petition for an interim
parte temporary order of protection. The respondent measure of protection when informed of constitution of the
can have temporary order of protection lifted by posting arbitral tribunal. - The court shall defer action on any pending
a counterbond in the amount to be determined by the petition for an interim measure of protection filed by a party to
court. an arbitration agreement arising from or in connection with a
dispute thereunder upon being informed that an arbitral tribunal
Rule 5.10.Relief against court action. - If respondent was has been constituted pursuant to such agreement. The court
given an opportunity to be heard on a petition for an interim may act upon such petition only if it is established by the
measure of protection, any order by the court shall be petitioner that the arbitral tribunal has no power to act on any
immediately executory, but may be the subject of a motion for such interim measure of protection or is unable to act thereon
reconsideration and/or appeal or, if warranted, a petition for effectively.
certiorari.
What are the different provisional remedies that can be
Rule 5.11. Duty of the court to refer back. - The court shall not
granted by the arbitral tribunal?
deny an application for assistance in implementing or enforcing
an interim measure of protection ordered by an arbitral tribunal After the constitution of the arbitral tribunal, what are
on any or all of the following grounds: the prov rem that can be applied?
Page 16 of 29
including any objections with respect to the existence or

Sec. 28 validity of the arbitration agreement or any condition
(b) The following rules on interim or provisional relief shall be precedent to the filing of a request for arbitration (Rule
observed: 2.2, Special ADR Rules)
(1) Any party may request that provision relief be

Rule 2.4. Policy implementing competence-competence
granted against the adverse party:
principle. - The arbitral tribunal shall be accorded the first
(2) Such relief may be granted: opportunity or competence to rule on the issue of whether or
not it has the competence or jurisdiction to decide a dispute
(i) to prevent irreparable loss or injury: submitted to it for decision, including any objection with respect
(ii) to provide security for the performance of to the existence or validity of the arbitration agreement. When a
any obligation; court is asked to rule upon issue/s affecting the competence or
jurisdiction of an arbitral tribunal in a dispute brought before it,
(iii) to produce or preserve any evidence; or either before or after the arbitral tribunal is constituted, the
(iv) to compel any other appropriate act or court must exercise judicial restraint and defer to the
omission. competence or jurisdiction of the arbitral tribunal by allowing
the arbitral tribunal the first opportunity to rule upon such
(3) The order granting provisional relief may be issues.
conditioned upon the provision of security or any act or
omission specified in the order. Where the court is asked to make a determination of whether
the arbitration agreement is null and void, inoperative or
(4) Interim or provisional relief is requested by written incapable of being performed, under this policy of judicial
application transmitted by reasonable means to the restraint, the court must make no more than a prima facie
Court or arbitral tribunal as the case may be and the determination of that issue.
party against whom the relief is sought, describing in
appropriate detail the precise relief, the party against Unless the court, pursuant to such prima facie determination,
whom the relief is requested, the grounds for the concludes that the arbitration agreement is null and void,
relief, and evidence supporting the request. inoperative or incapable of being performed, the court must
suspend the action before it and refer the parties to arbitration
(5) The order shall be binding upon the parties. pursuant to the arbitration agreement.
(6) Either party may apply with the Court for
assistance in Implementing or enforcing an interim Principle of competence-competence, may rule on its
measure ordered by an arbitral tribunal. own jurisdiction and any objection with respect to the
existence or validity of the arbitration agreement.
(7) A party who does not comply with the order shall
be liable for all damages resulting from noncompliance, Who appoints the arbitrators?
including all expenses, and reasonable attorney's fees, The parties to the arbitration agreement.
paid in obtaining the order's judicial enforcement.
These remedies can be applied before the arbitral QUALIFICATIONS ARBITRATORS

tribunal upon the constitution of the arbitral tribunal.
Legal age and full enjoyment of civil rights
When is the arbitral tribunal deemed constituted?
Must know how to read and write
The arbitral tribunal is deemed constituted when the
sole arbitrator or the third arbitrator who has been
nominated, has accepted the nomination and written DISQUALIFICATION
communication of said nomination and acceptance has
been received by the party making request (Sec 28, first
Section 10. Qualifications of arbitrators. - Any person
paragraph, mid sentence).
appointed to serve as an arbitrator must be of legal age, in full-
Just for emphasis, a party who does not comply with the enjoyment of his civil rights and know how to read and write.
provisional orders shall be liable for all damages No person appointed to served as an arbitrator shall be related
(including all expenses and reasonable attorney's fees) by blood or marriage within the sixth degree to either party to
the controversy. No person shall serve as an arbitrator in any
proceeding if he has or has had financial, fiduciary or other
ARBITRATORS AND interest in the controversy or cause to be decided or in the
ARBITRAL TRIBUNAL result of the proceeding, or has any personal bias, which might
prejudice the right of any party to a fair and impartial award.
PRINCIPLE OF COMPETENCE-COMPETENCE
No party shall select as an arbitrator any person to act as his
The Special ADR Rules recognize the principle of champion or to advocate his cause.
competence-competence, which means that the arbitral
tribunal may initially rule on its own jurisdiction, If, after appointment but before or during hearing, a person
Page 17 of 29
appointed to serve as an arbitrator shall discover any appointment;

circumstances likely to create a presumption of bias, or which
b. In all instances where arbitration is ad hoc and the
he believes might disqualify him as an impartial arbitrator, the
parties failed to provide a method for appointing or
arbitrator shall immediately disclose such information to the
replacing an arbitrator, or substitute arbitrator, or the
parties. Thereafter the parties may agree in writing:
method agreed upon is ineffective, and the National
(a) To waive the presumptive disqualifying President of the Integrated Bar of the Philippines (IBP)
circumstances; or or his duly authorized representative fails or refuses to
act within such period as may be allowed under the
(b) To declare the office of such arbitrator vacant. Any
pertinent rules of the IBP or within such period as may
such vacancy shall be filled in the same manner as the
be agreed upon by the parties, or in the absence
original appointment was made.
thereof, within thirty (30) days from receipt of such
request for appointment;
Modal Law disqualifications:
c. Where the parties agreed that their dispute shall be
• Related by law or marriage within the 6th degree to resolved by three arbitrators but no method of
either appointing those arbitrators has been agreed upon,
each party shall appoint one arbitrator and the two
• re controversy or cause to be decided proceedings arbitrators thus appointed shall appoint a third
(please see Modal law) arbitrator. If a party fails to appoint his arbitrator
within thirty (30) days of receipt of a request to do so
• if he has any personal bias which might prejudice the from the other party, or if the two arbitrators fail to
right of a party to a fair and impartial award agree on the third arbitrator within a reasonable time
from their appointment, the appointment shall be
• appointing advocate made by the Appointing Authority. If the latter fails or
• if there are justifiable doubts as to his impartiality refuses to act or appoint an arbitrator within a
reasonable time from receipt of the request to do so,
• he does not possess the qualifications agreed upon by any party or the appointed arbitrator/s may request
the parties the court to appoint an arbitrator or the third arbitrator
as the case may be.
Take note that in both DA and ICA, it is not necessary
that the arbitrators have any special training or Take note that under this rule, appointment of arbitrators
experience or admitted to the Philippine bar. exclusive ito ha. The court shall act as appointing authority only
How about foreigners? Are they allowed to act as in such cases.
arbitrators?
Rule 6.2.Who may request for appointment. - Any party to an
If it is ICA, yes. arbitration may request the court to act as an Appointing
If it is DA, yes unless the parties impose qualifications Authority in the instances specified in Rule 6.1 above.
on nationality. There can be an appointment of a foreign Rule 6.3.Venue. - The petition for appointment of arbitrator
arbitrator under EO 1008. may be filed, at the option of the petitioner, in the Regional
What if in the arbitration agreement, the parties failed Trial Court (a) where the principal place of business of any of
to provide a method for replacing an arbitrator, what is the parties is located, (b) if any of the parties are individuals,
the remedy? where those individuals reside, or (c) in the National Capital
Region.
Rule 6.1 (Special ADR Rules)
Rule 6.4.Contents of the petition. -The petition shall state the
following:
Rule 6.1.When the court may act as Appointing Authority. -
The court shall act as Appointing Authority only in the following a. The general nature of the dispute;
instances:
b. If the parties agreed on an appointment procedure,
a. Where any of the parties in an institutional a description of that procedure with reference to the
arbitration failed or refused to appoint an arbitrator or agreement where such may be found;
when the parties have failed to reach an agreement on
the sole arbitrator (in an arbitration before a sole c. The number of arbitrators agreed upon or the
arbitrator) or when the two designated arbitrators have absence of any agreement as to the number of
failed to reach an agreement on the third or presiding arbitrators;
arbitrator (in an arbitration before a panel of three d. The special qualifications that the arbitrator/s must
arbitrators), and the institution under whose rules possess, if any, that were agreed upon by the parties;
arbitration is to be conducted fails or is unable to
perform its duty as appointing authority within a e. The fact that the Appointing Authority, without
reasonable time from receipt of the request for justifiable cause, has failed or refused to act as such
within the time prescribed or in the absence thereof,
Page 18 of 29
within a reasonable time, from the date a request is challenge the qualification of arbitrator.
made; and
Where do you raise challenge on judicial restrain?
f. The petitioner is not the cause of the delay in, or
Arbitral tribunal.
failure of, the appointment of the arbitrator.
If challenge is not successful, you raise it before the appointing
Apart from other submissions, the petitioner must attach to the
authority. Before the court, only if the appointing authority
petition (a) an authentic copy of the arbitration agreement, and
refuses to act on the challenge.
(b) proof that the Appointing Authority has been notified of the
filing of the petition for appointment with the court. (So ang step kay arbitral tribunal – appointing authority – court)
This is through a verified petition. Challenge to the appointment.
Rule 6.8.Forum shopping prohibited. - When there is a pending
petition in another court to declare the arbitration agreement Rule 7.1.Who may challenge. - Any of the parties to an
inexistent, invalid, unenforceable, on account of which the arbitration may challenge an arbitrator.
respondent failed or refused to participate in the selection and Rule 7.2.When challenge may be raised in court. - When an
appointment of a sole arbitrator or to appoint a party- arbitrator is challenged before the arbitral tribunal under the
nominated arbitrator, the petition filed under this rule shall be procedure agreed upon by the parties or under the procedure
dismissed. provided for in Article 13 (2) of the Model Law and the
Rule 6.9.Relief against court action. - If the court appoints an challenge is not successful, the aggrieved party may request the
arbitrator, the order appointing an arbitrator shall be Appointing Authority to rule on the challenge, and it is only
immediately executory and shall not be the subject of a motion when such Appointing Authority fails or refuses to act on the
for reconsideration, appeal or certiorari. An order of the court challenge within such period as may be allowed under the
denying the petition for appointment of an arbitrator may, applicable rule or in the absence thereof, within thirty (30) days
however, be the subject of a motion for reconsideration, appeal from receipt of the request, that the aggrieved party may renew
or certiorari. the challenge in court.
How many arbitrators are to be appointed by the Nationality is not a ground unless the parties require or
parties? impose nationality qualifications.
If ICA, how many? Rule 7.5. Contents of the petition. - The petition shall state the
Parties are free to agree on how many arbitrators are to following:
be appointed. Failing such determination, number of a. The name/s of the arbitrator/s challenged and
arbitrators shall be 3. his/their address;
Additional arbitrators may also be appointed by the b. The grounds for the challenge;
parties but the same must be in writing. Likewise a
substitute arbitrator can also be appointed. c. The facts showing that the ground for the challenge
has been expressly or impliedly rejected by the
Take note of the qualifications and the disqualifications. challenged arbitrator/s; and
Can you challenge the appointment of an arbitrator? If d. The facts showing that the Appointing Authority
yes, what are the grounds? failed or refused to act on the challenge.
Rule 7.4. Grounds. - An arbitrator may be challenged on any of The court shall dismiss the petition motu proprio unless it is
the grounds for challenge provided for in Republic Act No. 9285 clearly alleged therein that the Appointing Authority charged
and its implementing rules, Republic Act No. 876 or the Model with deciding the challenge, after the resolution of the arbitral
Law. The nationality or professional qualification of an arbitrator tribunal rejecting the challenge is raised or contested before
is not a ground to challenge an arbitrator unless the parties such Appointing Authority, failed or refused to act on the
have specified in their arbitration agreement a nationality challenge within thirty (30) days from receipt of the request or
and/or professional qualification for appointment as arbitrator. within such longer period as may apply or as may have been
agreed upon by the parties.
So based on the disqualifications if you want to Rule 7.7. Court action. - After hearing, the court shall remove
challenge their appointment. the challenged arbitrator if it finds merit in the petition;
otherwise, it shall dismiss the petition.
Rule 7.3. Venue. - The challenge shall be filed with the
The court shall allow the challenged arbitrator who
Regional Trial Court (a) where the principal place of business of
subsequently agrees to accept the challenge to withdraw as
any of the parties is located, (b) if any of the parties are
arbitrator.
individuals, where those individuals reside, or (c) in the National
Capital Region. The court shall accept the challenge and remove the arbitrator
in the following cases:
So immediately you resort to court action if you want to
Page 19 of 29
a. The party or parties who named and appointed the When can we go to the court for the grant of provisional
challenged arbitrator agree to the challenge and remedies?
withdraw the appointment.
Rule 5.2. When to petition. A petition for an interim measure
b. The other arbitrators in the arbitral tribunal agree to
of protection may be made
the removal of the challenged arbitrator; and
(a) before arbitration is commenced,
c. The challenged arbitrator fails or refuses to submit
his comment on the petition or the brief of legal (b) after arbitration is commenced, but before the constitution
arguments as directed by the court, or in such of the arbitral tribunal, or
comment or legal brief, he fails to object to his removal
following the challenge. (c) after the constitution of the arbitral tribunal and at any time
during arbitral proceedings but, at this stage, only to the extent
The court shall decide the challenge on the basis of evidence that the arbitral tribunal has no power to act or is unable to act
submitted by the parties. effectively.
The court will decide the challenge on the basis of the evidence
submitted by the parties in the following instances: Please take note class ha, interim measures of
protection, to be applied before the court: How about
a. The other arbitrators in the arbitral tribunal agree to challenging your arbitrator? You want to challenge the
the removal of the challenged arbitrator; and qualification of an arbitrator. Where do you raise your
b. If the challenged arbitrator fails or refuses to submit challenge?
his comment on the petition or the brief of legal First with the arbitral tribunal;
arguments as directed by the court, or in such
comment or brief of legal arguments, he fails to object Second before the appointing authority if the aggrieved
to his removal following the challenge. party so requests, and;
Rule 7.8. No motion for reconsideration, appeal or certiorari. - Third before the court only if the appointing authority
Any order of the court resolving the petition shall be fails or refuses to act on your challenge.
immediately executory and shall not be the subject of a motion Take note that you cannot immediately go to the court
for reconsideration, appeal, or certiorari. to challenge the qualifications of the arbitrator. Because
if you go immediately to the court, what will happen to
There is no law prescribing the liability of said arbitrators. In your petition? It will be dismissed, motu proprio by the
other words, no liability for wrong decisions of arbitrators. But court, as provided for under Rule 7.5 of the Special ADR.
he incurs liability if he does not discharge his duties as required
of him (Contractual liability to the parties). His acceptance In relation to an arbitrator, can you go to court to
carries with it the undertaking to discharge his duties faithfully. request it for the termination of the functions or
mandate of an arbitrator?
CF LUZON DEVELOPMENT VS.
ASSOCIATION OF DEVELOPMENT A: Yes, under Rule 8.1.
BANK: Rule applicable to judges by analogy
to arbitrators? Since they act in a quasi- Rule 8.1. Who may request termination and on what grounds.-
judicial capacity? Yes. So dapat competent, Any of the parties to an arbitration may request for the
impartial and independent. termination of the mandate of an arbitrator where an arbitrator
becomes de jure or de facto unable to perform his function or
How about civil liability for judicial errors? for other reasons fails to act without undue delay and that
SANTOS VS. ORLINO (296 SCRA 101): arbitrator, upon request of any party, fails or refuses to
Yes, he can be liable for error that is gross, withdraw from his office.
patent, deliberate or incurred with evident
bad faith. Rule 8.2, when do you make a request?
Rule 8.2. When to request. If an arbitrator refuses to withdraw

February 1, 2016 (EAE) from his office, and subsequently, the Appointing Authority fails
or refuses to decide on the termination of the mandate of that
Just a review: Can the arbitral tribunal grant provisional arbitrator within such period as may be allowed under the
remedies? applicable rule or, in the absence thereof, within thirty (30) days
A: Yes, the arbitral tribunal can grant provisional remedies. from the time the request is brought before him, any party may
file with the court a petition to terminate the mandate of that
How about the court? arbitrator.
A: The court can also provide provisional remedies, under Rule Rule 8.3. Venue. A petition to terminate the mandate of an
5 of the Special ADR Rules. arbitrator may, at that petitioner’s option, be filed with the
Regional Trial Court
Page 20 of 29
(a) where the principal place of business of any of the parties is A: It is the place designated by the parties themselves. Section
located, 30, 9285.
(b) where any of the parties who are individuals resides, or
SEC. 30. Place of Arbitration. The parties are free to agree on
(c) in the National Capital Region. the place of arbitration. Failing such agreement, the place of
arbitration shall be in Metro Manila, unless the arbitral tribunal,
Where do you file? It is to be filed before the RTC where having regard to the circumstances of the case, including the
the principal place of business of any of the parties is convenience of the parties shall decide on a different place of
located, or where any of the parties or individuals arbitration.
resides, or in the national capital region. The arbitral tribunal may, unless otherwise agreed by the
Rule 8.4. Contents of the petition. - The petition shall state the parties, meet at any place it considers appropriate for
following: consultation among its members, for hearing witnesses,
experts, or the parties, or for inspection of goods, other
a. The name of the arbitrator whose mandate is sought property or documents.
to be terminated;
b. The ground/s for termination;
Okay, so please take note of Section 30, place of
c. The fact that one or all of the parties had requested
arbitration.
the arbitrator to withdraw but he failed or refused to
do so; Firstly, based on the agreement of the parties, and in
d. The fact that one or all of the parties requested the case of no agreement, then it shall be in Metro Manila,
Appointing Authority to act on the request for the but the arbitral tribunal has to take into consideration
termination of the mandate of the arbitrator and failure the convenience of the parties, because precisely,
or inability of the Appointing Authority to act within arbitration is for the convenience of the parties.
thirty (30) days from the request of a party or parties
How about the language to be used?
or within such period as may have been agreed upon
by the parties or allowed under the applicable rule.
SEC. 31. Language of the Arbitration. The parties are free to
The petitioner shall further allege that one or all of the parties agree on the language or languages to be used in the arbitral
had requested the arbitrator to withdraw but he failed or proceedings. Failing such agreement, the language to be used
refused to do so. shall be English in international arbitration, and English or
That’s why you cannot immediately resort to court and Filipino for domestic arbitration, unless the arbitral tribunal shall
request the court for the termination of the arbitrator, determine a different or another language or languages to be
specifically under Rule 8.4 (D). used in the proceedings. This agreement or determination,
unless otherwise specified therein, shall apply to any written
So kailangan siya i-allege. statement by a party, any hearing and any award, decision or
other communication by the arbitral tribunal.
Rule 8.6. Court action. After hearing, if the court finds merit in
the petition, it shall terminate the mandate of the arbitrator who The arbitral tribunal may order that any documentary evidence
refuses to withdraw from his office; otherwise, it shall dismiss shall be accompanied by a translation into the language or
the petition. languages agreed upon by the parties or determined in
accordance with paragraph 1 of this section.
Rule 8.7. No motion for reconsideration or appeal. Any order of
the court resolving the petition shall be immediately executory Also in relation to the place chosen by the arbitral tribunal, just
and shall not be subject of a motion for reconsideration, appeal for emphasis, it has to take into consideration the convenience
or petition for certiorari. of the parties. By convenience, it is meant that it must have
some relevant ot the contract and should not impose any undue
Rule 8.8. Appointment of substitute arbitrator. Where the
hardship upon one or the other party of the contract in terms of
mandate of an arbitrator is terminated, or he withdraws from
attending the hearings or presenting the witnesses. That’s why
office for any other reason, or because of his mandate is
it’s for the convenience of the parties.
revoked by agreement of the parties or is terminated for any
other reason, a substitute arbitrator shall be appointed When is the commencement of arbitral proceedings?
according to the rules that were applicable to the appointment
of the arbitrator being replaced. A: it is commenced on the date on which a request for that
dispute to be referred to arbitration is received by the
respondent.
So please take note of Rule 8 class.
How about the law of procedure, what law will govern if
it is domestic arbitration?
ARBITRATION PROCEEDINGS A: As a general rule it depends upon the agreement of the

parties, but since both types of arbitration are to be held in the
Where does the place of arbitration take place? Philippines, it is subject to what limitation?
Page 21 of 29
Since the seat of arbitration is in the Philippines, it is opportunity to reply in writing to any other party's statements
subject to Philippine law, under the doctrine of lex loci and proofs; but if such party fails to do so within seven days
arbitrae. And you relate that to Rule 2.3. after receipt of such statements and proofs, he shall be deemed
to have waived his right to reply. Upon the delivery to the
Rule 2.3. Rules governing arbitral proceedings. - The parties arbitrators of all statements and documents, together with any
are free to agree on the procedure to be followed in the reply statements, the arbitrators shall declare the proceedings
conduct of arbitral proceedings. Failing such agreement, the in lieu of hearing closed.
arbitral tribunal may conduct arbitration in the manner it
considers appropriate. Section 18 refers to what kind of arbitration? It refers to
a domestic arbitration.
So please take note of Rule 2.3. Again, general rule,
Please don’t be confused. When you say R.A. 876, it
they are free to agree on the procedure to be followed in
refers to domestic arbitration. If it is international
the conduct of arbitral proceedings, subject to the
commercial arbitration, it is governed by the model law.
limitation of the Philippine law.
If it is international commercial arbitration, can
When you say due process in relation to arbitral
hearings be dispensed with by the arbitral tribunal?
proceedings, what is meant by that?
It can be dispensed with, and the basis for saying it is
Please take note class ha, due process when applied to
Article 24, Paragraph 1 of the Model Law.
arbitration proceeds:
So domestic arbitration, proceeding without hearings is
1. That the party is given a chance to be heard and
found under Section 18 of the Arbitration Law.
submit his evidence
International commercial arbitration, it is found under
2. The tribunal must consider the tribunal presented Article 24, Paragraph 1 of the Model Law.
3. The tribunal must have something to support its Role of arbitrators, we already know that they should be
decision partial because diba, he performs quasi-judicial
functions. The arbitrator is the sole judge of the
4. The evidence must be substantial, only substantial relevancy and materiality of the evidence offered. But
5. The decision be rendered on evidence presented or take note he is not bound by the Rules of Court, because
contained in the proceedings decision is based only on substantial evidence.
6. It must be rendered in such a manner that the Barbers vs. Lavio, 351 SCRA 606: Here
parties can know the issues involved and the the SC ruled that arbitrators are like judges
reasons for the decision (Ang Tibay vs. CIR) in cases before them. They should be
afforded a reasonable leeway in asking
Are hearing required to be conducted before the questions to witnesses as may be essential
arbitrators? to elicit relevant facts and bring out the
A: The general rule is that if it is international commercial truth. He can properly intervene in the
arbitration, there should be hearing. The exception is if the presentation of evidence to prevent
arbitral tribunal may or may not hold hearings for the unnecessary delay.
presentation of evidence or oral arguments. Is the arbitrator bound to conform to the Rules of
What is the exception to the exception? Court?
If the parties have agreed that no hearings shall No. it is not, under Section 15 of Arbitration Law.
be held. Please take note. Unless the parties How about presentation of experts during hearing? Is it
agree that no hearings shall be held. required?
What is the requirement of the law with regard to the In both international commercial arbitration as well as
exception of the exception? Walang hearings, paano domestic arbitration, experts may be presented during
magdecide ang tribunal? the conduct of hearings before the arbitral tribunal.
Section 18. Proceeding in lieu of hearing. The parties to a

submission or contract to arbitrate may, by written agreement, DEFAULT AWARDS
submit their dispute to arbitration by other than oral hearing.
The parties may submit an agreed statement of facts. They may Can the arbitral tribunal declare the party in default?
also submit their respective contentions to the duly appointed A: Remember, the arbitral tribunal is not bound to conform to
arbitrators in writing; this shall include a statement of facts, the rules of court.
together with all documentary proof. Parties may also submit a
written argument. Each party shall provide all other parties to Okay class, take note. If it is domestic arbitration there
the dispute with a copy of all statements and documents can be no declaration of default. That’s why no default
submitted to the arbitrators. Each party shall have an award, because the hearing may proceed in the absence
Page 22 of 29
of any party who after due notice fails to be present at How about partial and separate award? Is this
such hearing or fails to obtain an adjournment thereof. sanctioned by the arbitration law?
Does it make mention of a declaration of default of the Rendering of separate or partial award?
party?
Section 5, Rule 36.
No. We do not follow the Rules of Court. So no
So in other words, the arbitral tribunal can render
declaration of default.
partial or separate final award because the rules of
If it is international commercial arbitration, the basis court apply by analogy particularly section 5 of rule 36.
there is found in Section 25 of the Model Law.
If the claimant fails to make his statement of claim, Section 5 (Rules 35). Separate Judgments. When more than
what is the effect? one claim for relief is presented in an action, the court, at any
stage, upon a determination of the issues material to a
The arbitral tribunal will terminate the proceedings. If particular claim and all counterclaims arising out of the
the respondent fails to communicate his statement of transaction or occurence which is the subject matter of the
defense, what is the effect? The arbitral tribunal shall claim, may render a separate judgment disposing of such claim.
continue proceedings without treating such failure as an the judgment shall terminate the action with respect to the
admission of the claimant’s allegations. And any party claim so disposed of and the action shall proceed as to the
who fails to appear at a hearing or to produce remaining claims. in case a separate judgment is rendered the
documentary evidence, the effect is that the arbitral court by order may stay its enforcement until the rendition of a
tribunal may continue proceedings and make award on subsequent judgment or judgments and may prescribe such
evidence before it. conditions as may be necessary to secure the benefit thereof to
the party in whose favor the judgment is rendered.
It does not mention of declaration of default by a party
unlike in your CivPro diba.
Take note in the case of Tambaoan vs. CA, 365 scra 359:
Is arbitration considered a practice of law?
Separate awards are analogous to
An individual who is not a member of the Philippine bar may judgments that are partial but final in
represent any party in both international and domestic nature because they put an end to a
arbitration. particular matter or to some defined and
separate branch of controversy. But there is
Under Section 22 of RA 9285, in international arbitration
a caveat: although arbitral tribunals can
conducted in the Philippines, a party may be presented by any
render separate awards, this prerogative
person of his choice. Provided, that such representative, unless
should be used carefully and sparingly to
admitted to the practice of law in the Philippines, shall not be
achieve the objective of arbitration of
authorized to appear as counsel in any Philippine court, or any
rendering a speedy and expeditious
other quasi-judicial body whether or not such appearance is in
resolution of the entire controversy and not
relation to the arbitration in which he appears.
just an aspect of it.
What is this settlement in the form of arbitral award?
FEBRUARY 22, 2016 (JRL) Assuming in the course of arbitral proceedings, yung
mga parties to the said case nag sabot sabot sila na mag
ARBITRATION AWARDS compromise na lang ta kay dugay pa, what is that
settlement award? Form of arbitral award?
Who renders the arbitral awards?
It is the Arbitral Tribunal. Section 20 of the Arbitration Law (RA 876). In the event that
How does this arbitral tribunal render its award? It is the parties to an arbitration have, during the course of such
through voting. By a majority vote of its members arbitration, settled their dispute, they may request of the
providing that it is the tribunal composed of more than arbitrators that such settlement be embodied in an award which
one arbitrator. shall be signed by the arbitrators. No arbitrator shall act as a
mediator in any proceeding in which he is acting as arbitrator;
General Rule: Majority vote UNLESS otherwise agreed and all negotiations towards settlement of the dispute must
upon by the parties. take place without the presence of the arbitrators.
How about under the abitration law?
This applies to domestic arbitration.
Under the arbitration law, it can be assumed that by majority
vote because the arbitration clause is silent on the matter so How about under the Modal Law? Are they allowed to
arbitration clause, same, by majority vote of the arbitrators. settle if it is international commercial arbitration? The
Otherwise, it can be rendered by the sole arbitrator. same.
Section 30 of the Modal Law. If, during arbitral proceedings,

PARTIAL AND SEPARATE AWARD the parties settle the dispute, the arbitral tribunal shall
Page 23 of 29
terminate the proceedings and, if requested by the parties and Section 31, Modal Law
not objected to by the arbitral tribunal, record the settlement in
1) The award shall be made in writing and shall be signed by
the form of an arbitral award on agreed term.
the arbitrator or arbitrators. In arbitral proceedings with
An award on agreed terms shall be made in accordance with more than one arbitrator, the signatures of the majority of
the provisions of article 31 and shall state that it is an award. all members of the arbitral tribunal shall suffice, provided
Such an award has the same status and effect as any other that the reason for any omitted signature is stated.
award on the merits of the case.
2) The award shall state the reasons upon which it is based,
unless the parties have agreed that no reasons are to be
During conduct of arbitration, if the parties will agree to given or the award is an award on agreed terms under
settle then arbitral tribunals will render a settlement article 30.
award. it applies to both domestic and international
commercial arbitration. 3) The award shall state its date and the place of arbitration
as determined in accordance with article 20 (1). The award
Sec 20, Arbitration Law. Arbitrators can decide only on those shall be deemed to have been made at that place.
matters that have been submitted to them. 4) After the award is made, a copy signed by the arbitrators in
accordance with paragraph (1) of this article shall be
This applies by analogy to international commercial delivered to each party
arbitraiton.
If domestic arbitration
Asset Privatization vs. CA: SC ruled that
arbitrators cannot resolve issues beyond the Section 20 (RA 876) Form and contents of award. The award
scope of the submission agreement, the must be made in writing and signed and acknowledged by a
parties to such an agreement are bound by majority of the arbitrators, if more than one; and by the sole
the arbitrator's award, only to the extent and arbitrator, if there is only one. Each party shall be furnished
in the manner prescribed by the contract with a copy of the award. The arbitrators in their award may
and only if the award is rendered in grant any remedy or relief which they deem just and equitable
conformity thereto. Also the scope of and within the scope of the agreement of the parties, which
arbitrators authority should be interpreted shall include, but not be limited to, the specific performance of
broadly so that the arbitration may serve its a contract.
purpose.
In the event that the parties to an arbitration have, during the
Even if it was not agreed upon by the parties, gi-resolve course of such arbitration, settled their dispute, they may
gihapon sa arbitrator because SC said that arbitration as request of the arbitrators that such settlement be embodied in
a mode of settling dispute would put an end to the an award which shall be signed by the arbitrators. No arbitrator
controversy. Pero we stick to the GR. shall act as a mediator in any proceeding in which he is acting
as arbitrator; and all negotiations towards settlement of the
dispute must take place without the presence of the arbitrators.
TIME TO RENDER AWARD
The arbitrators shall have the power to decide only those
When does the arbitral tribunal render its award? matters which have been submitted to them. The terms of the
If it is ICA, depends upon the agreement of the parties wherein award shall be confined to such disputes.
the tribunal has rendered an award. This is an alternative way The arbitrators shall have the power to assess in their award
of settling your dispute. No specific timeframe. the expenses of any party against another party, when such
If domestic, unless the parties shall have stipulated by written assessment shall be deemed necessary.
agreement the time within which the arbitrators must render
their award, the written award of the arbitrators shall be Is this still applicable under RA 9285? (Rafael was citing
rendered within thirty days after the closing of the hearings or if cases which I cannot find in the TSN; Tama iya answer pero I
the oral hearings shall have been waived, within thirty days can't hear him properly. Sorry)
after the arbitrators shall have declared such proceedings in lieu
of hearing closed.
RULES APPLICABLE TO
So, discretionary tanan sa parties. So much leeway is THE SUBSTANCE OF DISPUTE
given to the parties.
What law will apply on the substance of the dispute that will be
used by the arbitrators when it renders its award?
FORM OF AWARD If ICA
Regarding the form of award, statement of facts and Article 28 (Modal Law) Rules applicable to substance of
law. Form as to the arbitral award. So distinguish again. dispute:
If ICA 7. The arbitral tribunal shall decide the dispute in accordance
Page 24 of 29
with such rules of law as are chosen by the parties as In the absence of agreement, arbitral tribunal will decide on
applicable to the substance of the dispute. Any designation how the arbitral proceedings shall be conducted.
of the law or legal system of a given State shall be
If ICA (Wala na gi-differentiate ni Mam if naa ba difference sa
construed, unless otherwise expressed, as directly referring
DA and ICA kay same lang man pero I copied the provision on
to the substantive law of that State and not to its conflict of
Modal Law para klaro)
laws rules.
8. Failing any designation by the parties, the arbitral tribunal Article 19 of the Modal Law. Subject to the provisions of this
shall apply the law determined by the conflict of laws rules Law, the parties are free to agree on the procedure to be
which it considers applicable. followed by the arbitral tribunal in conducting the proceedings.
9. The arbitral tribunal shall decide ex aequo et bono or as Failing such agreement, the arbitral tribunal may, subject to the
amiable compositeur only if the parties have expressly provisions of this Law, conduct the arbitration in such manner,
authorized it to do so. as it considers appropriate. The power conferred upon the
10. In all cases, the arbitral tribunal shall decide in accordance arbitral tribunal includes the power to determine the
with the terms of the contract and shall take into account admissibility, relevance, materiality and weight of any evidence.
the usages of the trade applicable to the transaction.
So ICA, the seat of arbitration is in the Philippines. Art.
28 says na it depends on the agreement of the parties. CORRECTION, MODIFICATION AND
Ano mag-apply considering the seat is here? The law INTERPRETATION OF ARBITRAL AWARD
recognizes that the agreement of both the parties will Is correction of an arbitral award allowed before the
be respect subject to limitations. What are these arbitral tribunal?
limitations?
If ICA
 It is not contrary to public policy
 It is not contrary to the unversally accepted principle of Article 33 of the Modal Law. Within thirty days of receipt of
morality the award, unless another period of time has been agreed upon
by the parties: party, with notice to the other party, may
 Penal in nature request the arbitral tribunal to correct in the award any errors in
 It is purely fiscal or administrative in character computation, any clerical or typographical errors or any errors
of similar nature; if so agreed by the parties, a party, with
 Would work undeniable justice to the citizens or resident of notice to the other party, may request the arbitral tribunal to
the Philippines give an interpretation of a specific point or part of the award. If
 Would work against the vital interest or national seciruity of the arbitral tribunal considers the request to be justified, it shall
the Philippines make the correction or give the interpretation within thirty days
of receipt of the request. The interpretation shall form part of
If domestic the award.
It depends upon the agreement of the parties? The arbitral tribunal may correct any error of the type referred
to in paragraph (1)(a) of this article on its own initiative within
Can the arbitral tribunal apply equity in resolving the
thirty days of the date of the award.
dispute? Yes.
Unless otherwise agreed by the parties, a party, with notice to
Summary as to substative aspect of arbitration,
the other party, may request, within thirty days of receipt of the
the law grants the parties the freedom to
award, the arbitral tribunal to make an additional award as to
choose the applicable substantive law and the
claims presented in the arbitral proceedings but omitted from
option as regards the designation of the law
the award. If the arbitral tribunal considers the request to be
applicable to the substance of the dispute. So,
justified, it shall make the additional award within sixty days.
substantive law or law on the merits.
The arbitral tribunal may extend, if necessary, the period of
time within which it shall make a correction, interpretation or an
LAW OF PROCEDURE additional award under paragraph (1) or (3) of this article.
It depends upon the agreement of the parties involved, The provisions of article 31 shall apply to a correction or
DA and ICA. So the parties may agree on the application interpretation of the award or to an additional award.
on rules of procedure governing the arbitration other
than those set forth in the Philippine law. The choice of Correction is allowed in ICA but not in DA.
the Philippines as the seat of arbitration means that the
arbitration itself is subject to Philippine law. If DA
Assuming hindi magka-agree upon in both, what law of In DA, correction of arbitral award before the arbitral
procedure will apply? tribunal is not allowed since the arbitral tribunal loses
its authority or jurisdiction the moment it renders its
If domestic
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decision. So if DA, recourse is not with the tribunal but arbitration proceedings;
with the courts.
c) The grounds relied upon by the parties in seeking the
vacation of the arbitral award whether the petition is a
Rule 11.1. Who may request confirmation, correction or
petition for the vacation or setting aside of the arbitral
vacation. Any party to a domestic arbitration may petition the
award or a petition in opposition to a petition to
court to confirm, correct or vacate a domestic arbitral award.
confirm the award; and
Rule 11.2. When to request confirmation,
d) A statement of the date of receipt of the arbitral award
correction/modification or vacation.
and the circumstances under which it was received by
(A) Confirmation. - At any time after the lapse of thirty (30) the petitioner.
days from receipt by the petitioner of the arbitral award, he
Apart from other submissions, the petitioner must attach to the
may petition the court to confirm that award.
petition the following:
(B) Correction/Modification. Not later than thirty (30) days from
a) An authentic copy of the arbitration agreement;
receipt of the arbitral award, a party may petition the court to
correct/modify that award. b) An authentic copy of the arbitral award;
(C) Vacation. Not later than thirty (30) days from receipt of the c) A certification against forum shopping executed by the
arbitral award, a party may petition the court to vacate that applicant in accordance with Section 5 of Rule 7 of the
award. Rules of Court; and
Rule 11.4. Grounds. – x x x d) An authentic copy or authentic copies of the
appointment of an arbitral tribunal.
(B) To correct/modify an arbitral award. - The Court may
correct/modify or order the arbitral tribunal to correct/modify
the arbitral award in the following cases: REVIEW | REVIEW | REVIEW
a) Where there was an evident miscalculation of figures Correction of an arbitral award –

or an evident mistake in the description of any person, If DA - Not allowed before the arbitral tribunal becase
thing or property referred to in the award; the arbitral tribunal loses its jurisdiction upon rendition
b) Where the arbitrators have awarded upon a matter not of award. So any of the parties to the arbitration
submitted to them, not affecting the merits of the agreement where there is correction, remedy is judicial
decision upon the matter submitted; recourse before the RTC through a petition to correct or
modify a domestic arbitral award.
c) Where the arbitrators have omitted to resolve an issue
submitted to them for resolution; or If ICA - correction is allowed before the tribunal
provided such correction refers only to errors in
d) Where the award is imperfect in a matter of form not computation, any clerical or typographical errors or to
affecting the merits of the controversy, and if it had any errors of similar nature. When will this be filed?
been a commissioner’s report, the defect could have Within 3 month period because under the law, an award
been amended or disregarded by the Court. rendered in ICA becomes final after 3 months from
receipt of the decision.
Please take note of these grounds.
FINALITY OF AWARDS
VENUE
If ICA, 3 months from receipt of decision.
Rule 11.3. Venue. The petition for confirmation, If it is DA, it becomes final upon lapse of 30 days after
correction/modification or vacation of a domestic arbitral award the award is delivered to the parties or lawyers if they
may be filed with Regional Trial Court having jurisdiction over are reprsented by counsel.
the place in which one of the parties is doing business, where
any of the parties reside or where arbitration proceedings were
conducted. CONFIDENTIALITY RULE
Everything that is connected to the arbitration proceeding is
considered as confidential. As a GR, records, etc are considered
CONTENTS OF PETITION confidential.
Rule 11.6. Contents of petition. The petition must state the SEC. 23. Confidential of Arbitration Proceedings. The arbitration
following: proceedings, including the records, evidence and the arbitral
award, shall be considered confidential and shall not be
a) The addresses of the parties and any change thereof; published except (1) with the consent of the parties, or (2) for
b) The jurisdictional issues raised by a party during the limited purpose of disclosing to the court of relevant
Page 26 of 29
documents in cases where resort to the court is allowed herein. Enforceability of the Arbitration Agreement;
Provided, however, that the court in which the action or the
b. Referral to ADR;
appeal is pending may issue a protective order to prevent or
prohibit disclosure of documents or information containing c. Interim Measures of Protection;
secret processes, developments, research and other information
where it is shown that the applicant shall be materially d. Appointment of Arbitrator;
prejudiced by an authorized disclosure thereof. e. Challenge to Appointment of Arbitrator;
f. Termination of Mandate of Arbitrator;
Feb 29, 2016 g. Assistance in Taking Evidence;
Coverage for First Exam: Up to before Recourse Against h. Confidentiality/Protective Orders; and
Awards, so that is everything before our topic tonight. i. Deposit and Enforcement of Mediated Settlement Agreements.
So our final exam: Recourse Against Awards, Enforceability of
Awards, then Mediation and lastly JDR. Please take note in certain cases, it is governed by
summary proceedings.
When you say summary proceedings, under the special
March 7, 2016 (JRL) ADR rules, what is meant by that?
Coverage for First Exam: Everything up to the Special Rules of
ADR. (A) Service and filing of petition in summary proceedings. The
petitioner shall serve, either by personal service or courier, a
Rule 1.1. Subject matter and governing rules. The Special copy of the petition upon the respondent before the filing
Rules of Court on Alternative Dispute Resolution (the "Special thereof. Proof of service shall be attached to the petition filed in
ADR Rules") shall apply to and govern the following cases: court.
a. Relief on the issue of Existence, Validity, or Enforceability of For personal service, proof of service of the petition consists of
the Arbitration Agreement; the affidavit of the person who effected service, stating the
time, place and manner of the service on the respondent. For
b. Referral to Alternative Dispute Resolution ("ADR"); service by courier, proof of service consists of the signed courier
proof of delivery. If service is refused or has failed, the affidavit
c. Interim Measures of Protection;
or delivery receipt must state the circumstances of the
d. Appointment of Arbitrator; attempted service and refusal or failure thereof.
e. Challenge to Appointment of Arbitrator;
Just read letter B.
f. Termination of Mandate of Arbitrator;
g. Assistance in Taking Evidence; (C) Summary hearing. In all cases, as far as practicable, the
summary hearing shall be conducted in one (1) day and only for
h. Confirmation, Correction or Vacation of Award in Domestic purposes of clarifying facts.
Arbitration;
(D) Resolution. The court shall resolve the matter within a
i. Recognition and Enforcement or Setting Aside of an Award in period of thirty (30) days from the day of the hearing.
International Commercial Arbitration;
j. Recognition and Enforcement of a Foreign Arbitral Award; Just read Rule 1.4
k. Confidentiality/Protective Orders; and Rule 1.5. Certification Against Forum Shopping. A Certification
l. Deposit and Enforcement of Mediated Settlement Agreements. Against Forum Shopping is one made under oath made by the
petitioner or movant:
Please take note of the subject matter and governing (a) that he has not theretofore commenced any action or filed
rules. any claim involving the same issues in any court, tribunal or
quasi-judicial agency and, to the best of his knowledge, no such
Rule 1.2. Nature of the proceedings. All proceedings under the other action or claim is pending therein;
Special ADR Rules are special proceedings.
(b) if there is such other pending action or claim, a complete
statement of the present status thereof; and
These are regarded as special proceedings.
(c) if he should thereafter learn that the same or similar action
Rule 1.3. Summary proceedings in certain cases. The or claim has been filed or is pending, he shall report that fact
proceedings in the following instances are summary in nature within five (5) days therefrom to the court wherein his
and shall be governed by this provision: aforementioned petition or motion has been filed.
a. Judicial Relief Involving the Issue of Existence, Validity or A Certification Against Forum Shopping shall be appended to all
Page 27 of 29
initiatory pleadings except a Motion to Refer the Dispute to (C) Filing and service by electronic means and proof thereof. -
Alternative Dispute Resolution. Filing and service of pleadings by electronic transmission may
be allowed by agreement of the parties approved by the court.
What is the effect if there is no CAFS? If the filing or service of a pleading or motion was done by
electronic transmission, proof of filing and service shall be made
It will be dismissed because it is mandatory in in accordance with the Rules on Electronic Evidence.
character.
This refers to non-summary proceedings.
Rule 1.6. Prohibited submissions. The following pleadings,
motions, or petitions shall not be allowed in the cases governed In relation to Rule 1.6, why is it that letters A-H are
by the Special ADR Rules and shall not be accepted for filing by prohibited submissions?
the Clerk of Court: Because allowing that would be dilatory and those
a. Motion to dismiss; submissions are dilatory in nature. Imbis mag dali ka,
madugay na nuon.
b. Motion for bill of particulars;
c. Motion for new trial or for reopening of trial; Rule 1.9. No summons. - In cases covered by the Special ADR
Rules, a court acquires authority to act on the petition or motion
d. Petition for relief from judgment; upon proof of jurisdictional facts, i.e., that the respondent was
e. Motion for extension, except in cases where an ex-parte furnished a copy of the petition and the notice of hearing.
temporary order of protection has been issued; (A) Proof of service. - A proof of service of the petition and
f. Rejoinder to reply; notice of hearing upon respondent shall be made in writing by
the server and shall set forth the manner, place and date of
g. Motion to declare a party in default; and service.
h. Any other pleading specifically disallowed under any provision (B) Burden of proof. - The burden of showing that a copy of the
of the Special ADR Rules. petition and the notice of hearing were served on the
The court shall motu proprio order a pleading/motion that it has respondent rests on the petitioner.
determined to be dilatory in nature be expunged from the The technical rules on service of summons do not apply to the
records. proceedings under the Special ADR Rules. In instances where
the respondent, whether a natural or a juridical person, was not
Rule 1.7, just read the provision. personally served with a copy of the petition and notice of
hearing in the proceedings contemplated in the first paragraph
Rule 1.8. Service and filing of pleadings, motions and other of Rule 1.3 (B), or the motion in proceedings contemplated in
papers in non-summary proceedings. - The initiatory pleadings the second paragraph of Rule 1.3 (B), the method of service
shall be filed directly with the court. The court will then cause resorted to must be such as to reasonably ensure receipt
the initiatory pleading to be served upon the respondent by thereof by the respondent to satisfy the requirement of due
personal service or courier. Where an action is already pending, process.
pleadings, motions and other papers shall be filed and/or served
by the concerned party by personal service or courier. Where Please take note of Rule 1.9. No summons will be issued
courier services are not available, resort to registered mail is by the court because the respondent was furnished with
allowed. a copy of the petition.
(A) Proof of filing. - The filing of a pleading shall be proved by
its existence in the record of the case. If it is not in the record, Rule 1.11 Definitions. x x x
but is claimed to have been filed personally, the filing shall be "Appointing Authority" shall mean the person or institution
proved by the written or stamped acknowledgment of its filing named in the arbitration agreement as the appointing authority;
by the clerk of court on a copy of the same; if filed by courier, or the regular arbitration institution under whose rule the
by the proof of delivery from the courier company. arbitration is agreed to be conducted. Where the parties have
(B) Proof of service. - Proof of personal service shall consist of a agreed to submit their dispute to institutional arbitration rules,
written admission by the party served, or the official return of and unless they have agreed to a different procedure, they shall
the server, or the affidavit of the party serving, containing a full be deemed to have agreed to procedure under such arbitration
statement of the date, place and manner of service. If the rules for the selection and appointment of arbitrators. In ad hoc
service is by courier, proof thereof shall consist of an affidavit of arbitration, the default appointment of arbitrators shall be made
the proper person, stating facts showing that the document was by the National President of the Integrated Bar of the
deposited with the courier company in a sealed envelope, Philippines or his duly authorized representative.
plainly addressed to the party at his office, if known, otherwise
at his residence, with postage fully pre-paid, and with So, appointing authority, that is a technical term.
instructions to the courier to immediately provide proof of Just read Rule 1.12 and 1.13.
delivery.
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The Special ADR Rules recognize the principle of separability of

Rule 2.1. General policies. - It is the policy of the State to
the arbitration clause, which means that said clause shall be
actively promote the use of various modes of ADR and to
treated as an agreement independent of the other terms of the
respect party autonomy or the freedom of the parties to make
contract of which it forms part. A decision that the contract is
their own arrangements in the resolution of disputes with the
null and void shall not entail ipso jure the invalidity of the
greatest cooperation of and the least intervention from the
arbitration clause.
courts. To this end, the objectives of the Special ADR Rules are
to encourage and promote the use of ADR, particularly
arbitration and mediation, as an important means to achieve Take note that under Rule 2.2. So the policy of the law
speedy and efficient resolution of disputes, impartial justice, here is policy on arbitration. Even if the case is still
curb a litigious culture and to de-clog court dockets. pending, and the court finds that there is an arbitration
agreement, it should suspend its proceedings and refer
The court shall exercise the power of judicial review as provided the case to arbitration.
by these Special ADR Rules. Courts shall intervene only in the
cases allowed by law or these Special ADR Rules. What is meant by (B), even if it is already pending
before the arbitral tribunal, you can still go to the court
to seek judicial relief, pwede ka mag ask for provisional
With regard to the second paragraph, that is a
remedies. It will not be ousted of its jurisdiction.
reiteration on the policy of judicial restraint that the
courts will intervene only in the cases allowed by law or
special adr rules. Rule 2.4. Policy implementing competence-competence
principle. - The arbitral tribunal shall be accorded the first
opportunity or competence to rule on the issue of whether or
Rule 2.2. Policy on arbitration.- (A) Where the parties have
not it has the competence or jurisdiction to decide a dispute
agreed to submit their dispute to arbitration, courts shall refer
submitted to it for decision, including any objection with respect
the parties to arbitration pursuant to Republic Act No. 9285
to the existence or validity of the arbitration agreement. When a
bearing in mind that such arbitration agreement is the law
court is asked to rule upon issue/s affecting the competence or
between the parties and that they are expected to abide by it in
jurisdiction of an arbitral tribunal in a dispute brought before it,
good faith. Further, the courts shall not refuse to refer parties
either before or after the arbitral tribunal is constituted, the
to arbitration for reasons including, but not limited to, the
court must exercise judicial restraint and defer to the
following:
competence or jurisdiction of the arbitral tribunal by allowing
a. The referral tends to oust a court of its jurisdiction; the arbitral tribunal the first opportunity to rule upon such
issues.
b. The court is in a better position to resolve the dispute subject
of arbitration; Where the court is asked to make a determination of whether
the arbitration agreement is null and void, inoperative or
c. The referral would result in multiplicity of suits; incapable of being performed, under this policy of judicial
d. The arbitration proceeding has not commenced; restraint, the court must make no more than a prima facie
determination of that issue.
e. The place of arbitration is in a foreign country;
Unless the court, pursuant to such prima facie determination,
f. One or more of the issues are legal and one or more of the concludes that the arbitration agreement is null and void,
arbitrators are not lawyers; inoperative or incapable of being performed, the court must
g. One or more of the arbitrators are not Philippine nationals; or suspend the action before it and refer the parties to arbitration
pursuant to the arbitration agreement.
h. One or more of the arbitrators are alleged not to possess the
required qualification under the arbitration agreement or law. The court makes only a prima facie finding. With regard
(B) Where court intervention is allowed under ADR Laws or the the third paragraph, take note, if the court finds that the
Special ADR Rules, courts shall not refuse to grant relief, as arbitration agreement is valid, effective and capable of
provided herein, for any of the following reasons: being performed, what should the court do? The case
should be referred to arbitration. Please take note of
a. Prior to the constitution of the arbitral tribunal, the court this.
finds that the principal action is the subject of an arbitration
agreement; or So rule 3, the issue here is on the existence, validity and
enforceability of the arbitration agreement.
b. The principal action is already pending before an arbitral
tribunal. Can you resolve to court action prior (to)
commencement of arbitration? Of course you can (that is
The Special ADR Rules recognize the principle of competence- in Rule 3).
competence, which means that the arbitral tribunal may initially
rule on its own jurisdiction, including any objections with I will include in your exam Rules 1, 2, 3, 4, 5, 6, 7, 8, (9, 10
respect to the existence or validity of the arbitration agreement excluded, 13, 14 excluded) 18, 19 (specifically mentioned
or any condition precedent to the filing of a request for 19.12, 19.26, 19.36) Please take note of those. Yung di na
arbitration. mention, I will exclude that. (***So excluded ang 11 na murag
important?) END OF FIRST EXAM COVERAGE (KJ)
Page 29 of 29

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ALTERNATIVE DISPUTE RESOLUTION TRANSCRIPTION ©

From the lectures of Atty. Catherine Guerzo-Barrion | AY 2015 to 2016

S: According to LM Power case, being an inexpensive, speedy

S: Yes. S: During the pre-trial. Because in CAM, the court already

GENERAL RULE: Arbitration precludes immediate 5. criminal liability;

d. The arbitration proceeding has not commenced;

TIMELINESS AND WAIVER

What if the court determines that the arbitration

RULE OF LIBERALITY d. Where the real property subject of arbitration, or a

omission. a. The arbitral tribunal granted the interim relief ex

including any objections with respect to the existence or

(1) Any party may request that provision relief be

These remedies can be applied before the arbitral QUALIFICATIONS ARBITRATORS

appointed to serve as an arbitrator shall discover any appointment;

Rule 8.2. When to request. If an arbitrator refuses to withdraw

ARBITRATION PROCEEDINGS A: As a general rule it depends upon the agreement of the

Section 18. Proceeding in lieu of hearing. The parties to a

Section 30 of the Modal Law. If, during arbitral proceedings,

a) Where there was an evident miscalculation of figures Correction of an arbitral award –

Feb 29, 2016 g. Assistance in Taking Evidence;

The Special ADR Rules recognize the principle of separability of

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