GROUP 6

ARUGAY, Mary Joy

BAGAS, Estela Claire
CANOSA, Ezra Joy
ROMILLA, Raquel
VILLAMAR, Maria Janice

DOMESTIC ARBITRATION
Domestic Arbitration

- Arbitration is domestic if the components of parties’ place of business, place of arbitration,

place of performance of a substantial part of the obligation, and place where the subject
matter of the dispute is most closely connected, are all located in the Philippines.
- Arbitration is domestic if conducted in the Philippines.

Laws which govern Domestic Arbitration:

1. The Arbitration Law (R.A No. 876)
2. The Model Law (Articles 8, 10-14, 18 and 19)
3. The following provisions of the ADR Act on international commercial arbitration.
- Section 22 (Legal Representation in International Commercial Arbitration)
- Section 23 (Confidentiality of Arbitration Proceedings)
- Section 24 (Referral to Arbitration)
- Section 25 (Interpretation of the Act)
- Section 26 (Meaning of “Appointing Authority”)
- Section 27 (What Functions May Be Performed by Appointing Authority)
- Section 28 (Grant of Interim Measures)
- Section 29 (Further Authority for Arbitrator to Grant Measures of Protection)
- Section 30 (Place of Arbitration)
- Section 31 (Language of Arbitration)
- Section 32 (Laws Governing Domestic Arbitration)
- Section 33 (Applicability of Domestic Arbitration)
4. IRR of the ADR Act; and
5. All other rules applicable to international commercial arbitration which may be given suppletory
application in the absence of specific applicable provisions.
Two (2) sections under ADR Act of 2004 devoted to Domestic Arbitration:
a) Section 32 which distinguished domestic arbitration from international arbitration and
declared that “The Arbitration Law” remains to be applicable to domestic arbitration;
b) Section 33 which adopted certain provisions of the Model Law and the ADR Act on
international commercial arbitration to domestic arbitration.
Disputes Covered by Rules on Domestic Arbitration
(Articles 5, 1, IRR, Section 3, Arbitration Law)
 - The provisions and rules on domestic arbitration cover both commercial and non-
commercial disputes provided they are susceptible of arbitration and do not fall within
the exclusive original arbitral jurisdiction of quasi-judicial bodies.
Due Process in Domestic Arbitration
(Articles 5, 17, IRR)

- On due process in a case involving domestic arbitral proceeding, the administrative

agencies exercising quasi-judicial powers shall not be fettered by the rigid technicalities
of procedure, albeit they are required to adhere to the basic concepts of fair play.
- The essence of due process is simply an opportunity to be heard, or an opportunity to
explain one’s side or opportunity to seek a reconsideration of the action or ruling
complained of. This constitutional mandate is deemed satisfied if a person is granted an
opportunity to seek reconsideration of an action or ruling. (Quiambao vs. CA)
Place or Venue of Arbitration
(Article 5, 19, IRR)

- It is to be determined by the parties. If there is no such agreement, then the arbitration

shall be conducted in Metro Manila, unless the arbitral tribunal shall decide on a different
place taking into account the circumstances of the case and the convenience of the
parties.
Language
(Articles 5, 21, IRR)

- The rule in the determination of the language that will be used in the arbitral proceedings
is the same for domestic and international commercial arbitration inclyding the
prerogative of the arbitral tribunal to require a translation of documentary evidence if not
in the official language, except that Filipino is added to English as a default language in
domestic arbitration.
Confidentiality
(Articles 5, 42. IRR)

Arbitration proceedings, including the records, evidence and the arbitral award, shall be considered
confidential and shall not be published except:
a) with the consent of the parties; or
b) for the limited purpose of disclosing to the court relevant documents in cases where resort to
the court is allowed herein.
The court may issue protective orders to prevent or prohibit the disclosure of documents or information
containing secret processes, developments, research and other information.

RULES ON RECEIPT OF WRITTEN COMMUNICATIONS

Except as otherwise agreed by the parties, a written communication from one party to the other or to
the arbitrator or to an arbitration institution or from the arbitrator or arbitration institution to the parties
shall be delivered to the addressee personally, by registered mail or by courier service.
Such communication shall be deemed to have been received on the date it is delivered at the
addressee's address of record, place of business, residence or last known address.

WAIVER OF OBJECTIONS
A party may be estopped from questioning non-compliance or is deemed to have waived his objection
thereto if he fails to raise the objection without delay or within the time prescribed therefor (30 days if no
period is prescribed), provided he knows of such non-compliance.

EXTENT OF COURT INTERVENTION

No court shall intervene except in the in the instances allowed by the Arbitration Law, ADR Act and
Special ADR Rules.

Among these instances are when:

a) Thirty (30) days having elapsed from receipt of the request for arbitration;
b) The appointing authority fails to perform functions imposed under Article 5.10 (c) and (d)
(Appointment of Arbitrators), Article 5.11 (a) (Grounds for Challenge) and Article 5.13 (Failure or
Impossibility to Act).

RA No. 9285 allows the filling of provisional or interim measures with the courts whenever the arbitral
tribunal has no power to act or to act effectively.
If the arbitral tribunal decides to defer the resolution of preliminary issue of its jurisdiction over the
arbitration agreement, none of the parties can seek judicial relief from the deferment. Motions for
reconsideration, appeals and petition for certiorari are not available to challenge the decision of the
arbitral tribunal.
The conditions for judicial review of arbitral awards:

 As a rule, the arbitrator’s award cannot be set aside for mere errors of judgement either as to
the law or as to the facts. Courts are generally without power to amend or overrule merely
because of disagreement with matters of law or facts determined by the arbitrators. Judicial
review of an arbitration award is, thus, more limited than judicial review of a trial.
 An arbitration award is not absolute and without exceptions. Judicial review of an arbitration
award is warranted when the complaining party has presented proof of the existence of any
grounds for vacating, modifying or correcting an award.If an examination of the record reveals
no support for the arbitrator’s determinations, their award must be vacated. In the same manner,
an award must be vacated if it was made in “manifest disregard of the law.”

REPRESENTATION
A party may appear by himself or be represented or assisted by any person of his choice, provided that
such representative, unless admitted to the practice of law in the Philippines, shall not be authorized to
appear as counsel in any Philippine court or quasi-judicial body.
ARBITRATION AGREEMENT
An arbitration agreement must be in writing and subscribed by the party sought to be charged, or by his
lawful agent.
Where one of the parties to the controversy is an infant, a person judicially declared to be incompetent,
the dispute is not capable of arbitration, unless the referral to the arbitration is made by a general
guardian or guardian ad litem.
A court before which an action is brought in a matter which is the subject matter of an arbitration
agreement shall, if a) at least one party so requests not later than pre-trial conference, or b) upon the
request of both parties thereafter, refer the parties to arbitration, unless it finds that the arbitration
agreement is null and void, inoperative or incapable of being performed.

DETERMINATION OF APPLICABLE RULES OF PROCEDURE

The parties are free to agree on the applicable rules of procedure, in the absence of which, the arbitral
tribunal may conduct the arbitration in the manner it considers appropriate.
Arbitrators and Arbitral Tribunals
Number of Arbitrators
Unless the parties have agreed otherwise, there shall be three (3) arbitrators for domestic corporation.
Qualification and Disqualifications.
An arbitrator must:
1. Be of legal age;
2. Be in full enjoyment of his civil rights; and
3. Know how to read and write.
The foregoing qualification are prescribed in the Arbitration Law and in the IRR. However, the are not
similarly required for international commercial arbitration except that an arbitrator in an international
commercial arbitration may be challenged if he does not possess the qualifications agreed to by the
parties.
No person shall serve as an arbitrator in any proceeding if:
1. He is related by blood or marriage within the sixth degree to either party to the controversy;
2. He has or has had financial, fiduciary or other interest in the controversy of cause to be decided,
or in the result of the proceeding;
3. He has personal bias which might prejudice the right of any party to a fair and impartial award;
or
4. He has been selected to act as champion or to advocate a party’s cause.
The reason for the foregoing disqualification is the same as in the case of international commercial
arbitration, i.e the arbitrator must be impartial and independent. In both domestic and international
commercial arbitration, the arbitrator is required to disclose these circumstances” and may be
challenged on account thereof.
Procedure for the Appointment of Arbitrators
The parties in a domestic arbitration are free to agree on the procedure for the appointment of
arbitrators except that, in order to prevent undue advantage, an agreement or clause giving a party the
power to choose more arbitrators than the other is void. The parties may, however, agree to empower
the arbitrators already appointed to select and appoint additional arbitrators who shall sit with the
original arbitrators.
If there is no agreement for the appointment, the following are the default rules:
1. Appointment by the parties- In an arbitration with three (3) arbitrators, each party shall
appoint one (1) arbitrator, and the two (2) arbitrators thus appointed shall appoint the third
arbitrator within thirty (30) days from receipt of a request to do so, failing which, the
appointment shall be made by the appointing authority.

2. Default appointment by appointing authority. The appointing authority in an ad hoc

domestic arbitration, in the absence of an agreement of the parties, is the National President
of the IBP or his duly authorized representative. In the case of institutional domestic
arbitration, there is no need for an appointing authority for purposes of appointing arbitrators
because the parties have already designated the institutional ADR provider under whose
rules the arbitrator or arbitrators are to be selected.

Where, under an appointment procedure agreed upon by the parties, a party or the
arbitrators already appointed, or a third party, including an institution, or the multiple
claimants or multiple respondents, fail to appoint any arbitrator or fail to perform any function
entrusted to them preventing the appointment of any arbitrator, any party may request the
appointing authority to appoint an arbitrator. The appointing authority may make the
appointment or give the appointing party who objects to a default appointment time to make
the appointment but not more than thirty (30) days. The decision of the appointing authority
on these matters shall be immediately executory and shall not be subject to appeal or
motion for reconsideration. The principle is the same as that for international commercial
arbitration.

In the case of sole arbitrators, Article 5.10 of the IRR additionally empower the appointing
authority to summon the parties and their counsel to appear before it in order to select and
appoint the sole arbitrator, failing which, the appointing authority shall make the
appointment.

In making a default appointment, the appointing authority shall consider (i) the likelihood of
securing an impartial and independent arbitrator; and (ii) the place of residence or business
of the arbitrator to ensure a speedy dispensation of impartial justice and to moderate the
cost of arbitration.

3. Request for appointment- The Request for Appointment with proof of delivery to the
adverse party shall be filed with the appointing authority. Within seven (7) days from receipt
of the Request for Appointment, the adverse party may file his objections to the Request or
ask for an extension not exceeding thirty (30) days to appoint an arbitrator.
 4. Acceptance of appointment- An arbitrator, in accepting his appointment, shall submit an
acceptance letter which shall include statements that (i) he agrees to comply with the
applicable law and rules of arbitration; (ii) he accepts the applicable arbitrator’s fee’s; and
(iii) he agrees to devote as much time and attention to the arbitration as the circumstances
may require.

5. Oath of arbitrators. Before hearing any testimony, arbitrators shall take an oath to faithfully
and fully hear and examine the matters in controversy and to make a just award according
to the best of their and understanding.

Grounds for Challenge

An arbitrator may be challenged only if: [i] circumstances exist that give rise to a justifiable doubt
as to impartiality or independence; [ii] he does not possess the qualifications provided for under the law
or agreed to by the parties; [iii] he is disqualified to act as an arbitrator; or [iv] he refuses to respond to
questions by a party regarding the nature and extent of his professional dealings with a party or his
counsel. The third (disqualification) and the fourth (refusal to answer) grounds are not provided for in
the rules on international commercial arbitration but are provided for in the rules on domestic arbitration
based on Section 10 of R.A. No. 876.
The party appointing an arbitrator may challenge that arbitrator for reasons which the party
became aware of after the appointment was made. Otherwise, he is already estopped from challenging
the appointment he himself made.
If an arbitrator so appointed discovers the existence of any circumstance that would create a
presumption of bias or would render him a partial arbitrator, he shall immediately disclose such
information to the parties. The parties may agree in writing to either [i] waive the presumptive
disqualifying circumstance; or [ii] declare the office of such arbitrator vacant and appoint a substitute
arbitrator in the same manner as the original appointment.
In addition, where the presumptive evidence of bia consists of prior professional or financial dealings
with a party or his counsel, the arbitrator shall disclose such fact to the parties and shall respond
promptly and in good faith to questions from a party regarding the nature, extent and age of such
dealings. The arbitrator’s refusal to respond is a ground to challenge him.
Procedure for the Challenge

The following are the default procedure in challenging an arbitrator:

1. The challenging party shall send a written statement of the reasons for the challenge to the arbitral
tribunal within 15 days after becoming aware of the constitution of the arbitral tribunal or
after becoming aware of the circumstances surrounding the ground for the challenge.

2. Within 15 days from receipt of a challenge, the arbitrator may either accept or reject the challenge.

If ARBITRATOR accepts, he shall voluntarily withdraw as arbitrator.

3. If ARBITRATOR rejects, he shall communicate within the same period of 15 days his rejection of the
challenge and state the facts and argument relied upon.
4. Within the same period of 15 days, the parties may agree to challenge and replace the challenged
arbitrator.

5. If the challenged arbitrator does not accept the challenge or withdraw from his office, and the parties
do not agree to the challenge, the arbitral tribunal shall decide the challenge within 30 days from receipt
of notice of the decision rejecting the challenge.

6. If the challenge before the arbitral tribunal is not successful, or a party shall decline to act, within 30
days from notice of the decision rejecting the challenge, the challenging party may request the
appointing authority to decide the challenge.

7. If the APPOINTING AUTHORITY shall fail to act on the challenge within 30 days from the date of its
receipt or within such further time as it may fix, the
requesting party may, without notice to the parties, renew the request with the court.

8. Until a decision is made, the arbitration proceeding shall continue notwithstanding the challenge and
the challenge arbitrator shall continue to
participate therein as arbitrator.

9. The decision to accept or reject a challenge shall be immediately executory and is not subject to
appeal
or motion for reconsideration.

10. The appointment of a substitute arbitrator shall be made pursuant to the procedure applicable to the
appointment of the arbitrator being replaced.

Procedure for the Arbitrator Fails to Act

If an arbitrator in a domestic arbitration becomes de jure or de facto unable to perform his functions or
fails to act
without undue delay, his mandates shall be terminated if:

1. the arbitrator withdraws

2. the parties agree on the termination

 NOTE on Voluntary Withdrawal of Arbitrator in Domestic Arbitration:

The withdrawal of arbitrator in domestic arbitration does not carry with it the implication that he
being the arbitrator accepted the existence of ground for his termination.

Arbitral Proceedings

The default procedure in domestic arbitration is as follows:

1. Statement of Claims – the claimant in domestic arbitration is required to submit within the time
agreed upon by the parties or determined by the
arbitral tribunal his statement of claims including the supporting facts, points at issue and the relief
sought.

2. Statement of defense – in the same manner and period, the respondent shall state his defenses.
3. Amendment of claims – the parties may amend or supplement their claims or defenses, as the
case maybe, unless the arbitral tribunal considers the
amendment appropriate or dilatory.

4. Hearing and written proceedings –

AD HOC DOMESTIC ARBITRATION INSTITUTIONAL DOMESTIC ARBITRATION

the procedure determined by the procedure determined by institutional
the arbitrator with the agreement of the parties arbitrator which has been impliedly accepted by
shall be followed the parties on account of the designation of the
institutional arbitral tribunal.

 NOTE that there is a slight variance between the default procedure for ICA and domestic
arbitration.

When there is a SLIGHT VARIANCE IN PROCEDURE in the case of the DOMESTIC

ARBITRATION, the following procedure will be followed:

a. Pre-hearing conference – the parties in domestic arbitration are required to undergo a pre-hearing
conference within 30 days from the appointment of the arbitrator or the constitution of an arbitral
tribunal during which they shall DISCUSS THE FOLLOWING:

 Venue of Arbitration
 Recording of Proceedings
 Periods of Statement of Claims
 Answer
 Answer to Counterclaims
 Form and Contents of Claims
 Offering of Evidence
 Delivery of Communications
 Issuance of Subpoena by the Arbitral Tribunal
 Manner of Receiving Expert Testimony
 Possibility of Interim Relief
 Possibility of Ocular Inspection
 Fees of Arbitral Tribunal
 Other Matters

 NOTE on the possibility of a compromise is NOT among those that the parties and the arbitral
tribunal are supposed to discuss during the pre-hearing conference.
 GENERAL RULE: No arbitrator shall act as mediator in any proceeding where he is acting as an
arbitrator
 EXCEPTION: when the arbitrator, under a settlement agreement, the parties agree to constitute
the mediator as an arbitrator.

b. Threshold issues – issues on the jurisdiction of the arbitral tribunal over the claims and
counterclaims or the arbitrability of the claims or counterclaims, shall be resolved by the arbitral tribunal
as threshold issues if the parties so request, unless the issues are intertwined with the factual issues
that they cannot be resolve ahead of the hearing on the merits.
c. Hearing dates and postponements – arbitral tribunal shall in consultation with the parties fix the
date and time of
hearings.
 NOTE on the hearings shall not be postponed except with the conformity of the arbitrator and
for good and sufficient cause.
d. Default of the Party –
CLAIMANT RESPONDENT ANY PARTY
fails to communicate his fails to communicate his fails to
statement of claims statement of defenses appear or produce evidence

arbitral tribunal shall arbitral tribunal shall the said party shall have
terminate the continue the proceedings deemed waived them
proceedings without treating such
failure in itself as an
admission of the
claimant’s allegation

e. Decision on interlocutory matters –

decisions on interlocutory matters shall be made:
- by the sole arbitrator
- by majority of arbitral tribunal.

 NOTE on the arbitral tribunal may authorize its chairman to issue or release its decision on
interlocutory matters.

f. Consolidation or concurrent hearings – they may agree to consolidate the arbitration proceedings
with other arbitration proceedings or hold concurrent hearings.

g. Closure of hearing – no further motion, manifestation or submission maybe allowed except for post-
hearing briefs and reply briefs, unless the tribunal, motu propio or upon the request of a party allows the
reopening of the hearing.

5. Rules on taking evidence – the following rules on reception as well as the processes that the
tribunal may employ in taking evidence:

a. Testimonial evidence – witnesses shall be required to take an oath or affirmation to tell the truth.
The parties may also agree in writing to submit their dispute to arbitration other than by oral hearing.

b. Documentary evidence – the tribunal may require the parties to submit or produce such other
necessary documents.

c. Subpoena – the tribunal shall have the power to issue subpoena duces tecum and/or ad
testificandum.

d. Expert – the tribunal may appoint one or more experts to report to it on specific
issues, may require the parties to submit
relevant information or grant access to
such expert and may grant the parties
opportunity to ask questions of the expert and present their own experts to testify on the points at issue.
  NOTE on domestic arbitration, upon the agreement of the parties, the finding of the expert
engaged by the tribunal shall be binding upon them and the tribunal.

e. Court assistance in taking evidence –

PROVISIONS OF IRR ON DOMESTIC ARBITRATION SPECIFIED SOME OF THE MODES OF

ASSISTANCE:

 issuance of subpoena
 interim or provisional reliefs
 protective orders with respect to confidentiality
 orders that may affect third parties
 examination of debtors

6. Decision – the decision of the tribunal shall be made by the sole arbitrator or unless otherwise
agreed upon by the parties, by the majority of the arbitrators in multi-arbitrator proceedings.

However, questions of procedure may be decided by the chairman of the tribunal if authorized by the
parties or by all members of the tribunal.

The tribunal shall render its written award within 30 days after the closing of the hearing, submission of
the parties’ briefs, or the declaration by the arbitral tribunal that the proceedings have been closed.

 NOTE that this period may be extended by the parties.

7. Form and content of the award –

AWARD IN DOMESTIC ARBITRATION:

 shall be in writing
 signed by the arbitrator
 shall state the rendition and the
place of arbitration
 state the reason upon which it is based (unless the parties have agreed otherwise or the award
is an award on agreed terms, consent award or award based on compromise)
 signed copy of the award shall be
delivered to each party
 the award need NOT be acknowledged or sworn to unless required by the parties
 the parties may require the tribunal to supply the omission within 30 days from receipt of the
award.

8. Settlement – the proceedings will be terminated by the execution of an arbitral award on agreed
terms.

The said form of award shall have the same status and effect as any other award on the merits.

9. Termination of the claim – International and Domestic arbitration is terminated either by:

a. Withdrawal of the claim

(unless the respondent objects thereto for the purpose of prosecuting his counterclaims or the arbitral
tribunal recognizes a legitimate interest on his part in obtaining a final settlement of the dispute)
b. The agreement of the parties to terminate the proceed

c. The finding by the arbitral tribunal that the continuation of the proceeding has become
unnecessary or impossible

d. Non-payment of the required deposits in full

(this is not true for international
commercial arbitration. Nonetheless, this provision is based on the principle
obtaining under Philippine law that the
payment of docket fees is necessary to the completion of the filing of complaints, appeals, or petitions
whenever required by the rules)

Interim Measures

The parties to a domestic arbitration may seek from the arbitrator or tribunal interim measures
including:
 preliminary injunction
 appointment of receiver
 detention of property
 preservation and inspection

Either party may also secure assistance from the courts for the implementation of interim measures.

PROCEDURE OBTAINS FOR INTERIM MEASURES UNDER THE DOMESTIC ARBITRATION,

NAMELY:

1. After the tribunal has been constituted, any party may request for interim measures.
2. The relief may be granted in order to prevent irreparable loss, to provide security for the performance
of obligation, to produce or preserve
evidence, or to compel any other appropriate act or omission.

3. The grant of the relief may be conditioned upon the provision of security or any act of or omission
specified in the order.

4. The order granting or denying the in the request for interim measures shall be binding upon the
parties and either party may apply with the courts for
assistance in the implementing or enforcing an interim measure.

5. A party who refuses to comply with the order shall be liable for damages resulting from
noncompliance, including all expenses and reasonable attorney’s fees paid in obtaining judicial
enforcement.

6. Before the constitution of the arbitral tribunal, or to the extent that the arbitral tribunal already
constituted has no power to act effectively, the interim measures maybe requested from the court in
accordance with the Special Rules of Court on ADR.

Multi-Party Arbitration

FEES AND COSTS

 Under Article 5.46 of the Implementing Rules and Regulations of the Alternative Dispute
Resolution Act of 2004, the general rule is that the fees of the arbitrator in a domestic arbitration shall
be determined by the agreement of the parties in writing prior to the arbitration. In default, the
arbitrators’ fees shall be determined in accordance with the applicable rules of the regular arbitration
institution.

CORRECTION, INTERPRETATION AND ADDITIONAL AWARD

Article 5.32 (d) of the Implementing Rules and Regulations of the Alternative Dispute Resolution
Act of 2004 emphatically states the general rule that, “no motion for reconsideration, correction and
interpretation of award or additional award shall be filed with the tribunal.” This is premised upon the
principle that when tribunal renders its final award, it loses jurisdiction over the dispute and the parties
to the arbitration. However, section 17 of Republic Act No. 876 specifically allows the continuation of
the arbitral proceedings motu propio by the arbitrators or upon motion of party, upon good cause
shown.
The IRR provided for the amendment or modification of the award in the following instances as
exceptions to the GR:
1. Under the arbitration agreement – if provided, the tribunal may cause the amendment.
2. Failure to resolve the issue – if the tribunal failed to resolve an issue, parties may ask for the
resolution.
3. Quantification of costs – if the tribunal made reservation in the final award, it may supplement the
award by such quantification, determination or apportionment.
4. Correction of typographical error and similar errors initiated by a party – a party may ask the tribunal
for the correction of the award within thirty (30) days from the receipt of the award and with notice to the
other party.
5. Interpretation of the award – within the same period, the parties may agree to request the tribunal to
give an interpretation on a specific point or part of the award.
6. Correction of the typographical errors initiated by the tribunal – within thirty (30) days from the date of
the award, the tribunal may motu propio correct any typographical error
7. Additional award – within thirty (30) days from receipt of the award, a party with notice to the other,
may request the tribunal to make an additional award as to claims presented in the arbitral proceedings
but omitted in the award. If justified, the tribunal shall make the additional award within sixty (60) days
from the receipt of the request.
The general rule is that the parties may ask for correction, interpretation or the rendition of an
additional award within thirty (30) days from the receipt of the award except when the parties have
granted upon any period of time.
 The foregoing grounds for amendment or modification of an arbitral award by the tribunal should
be differentiated from the grounds for the amendment or modification of an arbitral award by the court.
A court may amend or modify a domestic arbitral award in the following instances:
1. Where there is an evident miscalculation of figures or an evident mistake in the description of any
person, thing or property referred to in the award;
2. Where the arbitrators have awarded upon a matter not submitted to them, not affecting the merits of
the decision upon the matter submitted;
3. Where the award is imperfect in a matter of form not affecting the merits of the controversy and if it
has been a commissioner’s report, the defect could have been amended or disregarded by the court.
If the award upon a matter not submitted for arbitration, or if the imperfect form of the award,
affects the merits of the decision or controversy, the award should be vacated instead of merely being
amended or modified by the court.
The notice of a motion to vacate, modify or correct an award must be served upon the adverse
party within thirty (30) days after the award is filed or delivered.
The judgment of RTC rendered in a motion to confirm, modify, correct or vacate an award shall
have the same force and effect as judgment in an action and may be enforced as if it had been
rendered in the court in which it is entered.

SETTING ASIDE AN ARBITRAL AWARD

A domestic award may be set-aside through the courts only on the following grounds:
1. The arbitral award was procured by corruption, fraud or other undue means;
2. There was evident partiality or corruption in the tribunal or any of its members;
3. The tribunal was guilty of misconduct or any form of misbehavior that has materially prejudiced the
rights of any party;
4. One or more of the arbitrators was disqualified to act as such and willfully refrained from disclosing
such disqualification;
5. The arbitral tribunal exceeded its powers or so imperfectly executed them such that a complete, final
and definite award upon the subject matter submitted to it was not made.

Compare the foregoing grounds with those applicable to the setting aside of international
commercial arbitral awards, to wit:
1. The petitioner furnishes proof that there was:
a. Defect in the arbitration agreement because a party was under some incapacity or agreement is not
valid under applicable law;
b. Violation of due process because the petitioner was not given proper notice of the appointment of an
arbitrator or the proceeding or unable to present his case;
c. Lack or excess of jurisdiction on the part of the tribunal because the award deals with a dispute not
contemplated by or not falling within the terms of the submission to arbitration, subject to the application
of doctrine of severability/separability;
d. Violation of the arbitration agreement because the composition of the arbitral tribunal or the arbitral
process was not in accordance with the agreement of the parties unless such agreement was in conflict
with a provision of the ADR act from which the parties cannot derogate or failing such agreement, was
not in accordance with the ADR act,
2. Or the court finds that:
a. The subject of the dispute is not capable of settlement under the laws of Republic of the Philippines;
b. The award is in conflict with public policy of Philippines.

The court before which the petition for setting-aside a domestic arbitral award is filed has the
prerogative and option to suspend the court proceedings in the following instances:
1. The court may suspend the setting aside proceedings to give the tribunal an opportunity to resume
the arbitral award proceedings or take such action which will eliminate the grounds for setting aside an
award;
2. The petitioner or the oppositor may petition the court to remit the case to the same tribunal for the
purpose of making new or revised final and definite award or to direct a new hearing before the same or
new tribunal; or
3. If the ground for vacating an arbitral award does not affect the merits of the case and may be cured
or remedied, the adverse party may oppose the petition and instead request the court to suspend the
vacation or setting aside proceedings to give the arbitral tribunal an opportunity to cure or remedy the
award or resume the arbitration proceedings or take such action as will eliminate the grounds for
vacation or setting aside.
In the foregoing instances, opportunity is being given to the tribunal to cure any defect in its
proceedings and award.

CONFIRMATION OF DOMESTIC ARBITRAL AWARDS

Recognition of a domestic arbitral award is made by filing a motion for confirmation and
securing an entry of judgment from the court. An award in domestic arbitration is rendered by a
Philippine arbitral tribunal applying Philippine law. All that is required in order to enforce a domestic
award is to have it confirmed through a motion filed in court. Similar to ICA, proceedings for recognition
and enforcement, vacation or setting aside an award and any application for arbitration assistance,
except appeal, shall be deemed as special proceedings.