Republic of the Philippines Congress of the Philippines Metro Manila Twelfth Congress Third Regular Session Begun and

held in Metro Manila, on Monday, the twenty-eight day of July, two thousand three. Republic Act No. 9285 April 2 2!!" AN ACT T# $NST$T%T$#NA&$'( T)( %S( #* AN A&T(RNAT$+( ,$SP%T( R(S#&%T$#N S-ST(. $N T)( P)$&$PP$N(S AN, T# (STA/&$S) T)( #**$C( *#R A&T(RNAT$+( ,$SP%T( R(S#&%T$#N AN, *#R #T)(R P%RP#S(S Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled : C)APT(R 0 1 2(N(RA& PR#+$S$#NS S(CT$#N 0. Title. - This act shall be known as the "Alternative is!ute "esolution Act of #$$%." S(C. 2. Declaration of Policy. - it is hereby declared the !olicy of the &tate to actively !ro'ote !arty autono'y in the resolution of dis!utes or the freedo' of the !arty to 'ake their own arrange'ents to resolve their dis!utes. Towards this end, the &tate shall encourage and actively !ro'ote the use of Alternative is!ute "esolution (A ") as an i'!ortant 'eans to achieve s!eedy and i'!artial *ustice and declog court dockets. As such, the &tate shall !rovide 'eans for the use of A " as an efficient tool and an alternative !rocedure for the resolution of a!!ro!riate cases. +ikewise, the &tate shall enlist active !rivate sector !artici!ation in the settle'ent of dis!utes through A ". This Act shall be without !re*udice to the ado!tion by the &u!re'e ,ourt of any A " syste', such as 'ediation, conciliation, arbitration, or any co'bination thereof as a 'eans of achieving s!eedy and efficient 'eans of resolving cases !ending before all courts in the -hili!!ines which shall be governed by such rules as the &u!re'e ,ourt 'ay a!!rove fro' ti'e to ti'e. S(C. 3. Definition of Terms. - .or !ur!oses of this Act, the ter': (a) "Alternative is!ute "esolution &yste'" 'eans any !rocess or !rocedure used to resolve a dis!ute or controversy, other than by ad*udication of a !residing *udge of a court or an officer of a govern'ent agency, as defined in this Act, in which a neutral third !arty !artici!ates to assist in the resolution of issues, which includes arbitration, 'ediation, conciliation, early neutral evaluation, 'ini-trial, or any co'bination thereof/ (b) "A " -rovider" 'eans institutions or !ersons accredited as 'ediator, conciliator, arbitrator, neutral evaluator, or any !erson e0ercising si'ilar functions in any Alternative is!ute "esolution syste'. This is without !re*udice to the rights of the !arties to choose nonaccredited individuals to act as 'ediator, conciliator, arbitrator, or neutral evaluator of their dis!ute. 1henever reffered to in this Act, the ter' "A " !ractitioners" shall refer to individuals acting as 'ediator, conciliator, arbitrator or neutral evaluator/ (c) "Authenticate" 'eans to sign, e0ecute or ado!t a sy'bol, or encry!t a record in whole or in !art, intended to identity the authenticating !arty and to ado!t, acce!t or establish the authenticity of a record or ter'/ (d) "Arbitration" 'eans a voluntary dis!ute resolution !rocess in which one or 'ore arbitrators, a!!ointed in accordance with the agree'ent of the !arties, or rules !ro'ulgated !ursuant to this Act, resolve a dis!ute by rendering an award/ (e) "Arbitrator" 'eans the !erson a!!ointed to render an award, alone or with others, in a dis!ute that is the sub*ect of an arbitration agree'ent/ (f) "Award" 'eans any !artial or final decision by an arbitrator in resolving the issue in a controversy/

(g) ",o''ercial Arbitration" An arbitration is "co''ercial if it covers 'atter arising fro' all relationshi!s of a co''ercial nature, whether contractual or not/ (h) ",onfidential infor'ation" 'eans any infor'ation, relative to the sub*ect of 'ediation or arbitration, e0!ressly intended by the source not to be disclosed, or obtained under circu'stances that would create a reasonable e0!ectation on behalf of the source that the infor'ation shall not be disclosed. 2t shall include (3) co''unication, oral or written, 'ade in a dis!ute resolution !roceedings, including any 'e'oranda, notes or work !roduct of the neutral !arty or non-!arty !artici!ant, as defined in this Act/ (#) an oral or written state'ent 'ade or which occurs during 'ediation or for !ur!oses of considering, conducting, !artici!ating, initiating, continuing of reconvening 'ediation or retaining a 'ediator/ and (4) !leadings, 'otions 'anifestations, witness state'ents, re!orts filed or sub'itted in an arbitration or for e0!ert evaluation/ (i) ",onvention Award" 'eans a foreign arbitral award 'ade in a ,onvention &tate/ (*) ",onvention &tate" 'eans a &tate that is a 'e'ber of the 5ew 6ork ,onvention/ (k) ",ourt" as referred to in Article 7 of the Model +aw shall 'ean a "egional Trial ,ourt/ (l) ",ourt-Anne0ed Mediation" 'eans any 'ediation !rocess conducted under the aus!ices of the court, after such court has ac8uired *urisdiction of the dis!ute/ (') ",ourt-"eferred Mediation" 'eans 'ediation ordered by a court to be conducted in accordance with the Agree'ent of the -arties when as action is !re'aturely co''enced in violation of such agree'ent/ (n) "9arly 5eutral 9valuation" 'eans an A " !rocess wherein !arties and their lawyers are brought together early in a !re-trial !hase to !resent su''aries of their cases and receive a nonbinding assess'ent by an e0!erienced, neutral !erson, with e0!ertise in the sub*ect in the substance of the dis!ute/ (o) ":overn'ent Agency" 'eans any govern'ent entity, office or officer, other than a court, that is vested by law with 8uasi-*udicial !ower to resolve or ad*udicate dis!ute involving the govern'ent, its agencies and instru'entalities, or !rivate !ersons/ (!) "2nternational -arty" shall 'ean an entity whose !lace of business is outside the -hili!!ines. 2t shall not include a do'estic subsidiary of such international !arty or a coventurer in a *oint venture with a !arty which has its !lace of business in the -hili!!ines. The ter' foreigner arbitrator shall 'ean a !erson who is not a national of the -hili!!ines. (8) "Mediation" 'eans a voluntary !rocess in which a 'ediator, selected by the dis!uting !arties, facilitates co''unication and negotiation, and assist the !arties in reaching a voluntary agree'ent regarding a dis!ute. (r) "Mediator" 'eans a !erson who conducts 'ediation/ (s) "Mediation -arty" 'eans a !erson who !artici!ates in a 'ediation and whose consent is necessary to resolve the dis!ute/ (t) "Mediation-Arbitration" or Med-Arb is a ste! dis!ute resolution !rocess involving both 'ediation and arbitration/ (u) "Mini-Trial" 'eans a structured dis!ute resolution 'ethod in which the 'erits of a case are argued before a !anel co'!rising senior decision 'akers with or without the !resence of a neutral third !erson after which the !arties seek a negotiated settle'ent/ (v) "Model +aw" 'eans the Model +aw on 2nternational ,o''ercial Arbitration ado!ted by the ;nited 5ations ,o''ission on 2nternational Trade +aw on #3 June 3<=>/ (w) "5ew 6ork ,onvention" 'eans the ;nited 5ations ,onvention on the "ecognition and 9nforce'ent of .oreign Arbitral Awards a!!roved in 3<>= and ratified by the -hili!!ine &enate under &enate "esolution 5o. ?3/ (0) "5on-,onvention Award" 'eans a foreign arbitral award 'ade in a &tate which is not a

,onvention &tate/ (y) "5on-,onvention &tate" 'eans a &tate that is not a 'e'ber of the 5ew 6ork ,onvention. (@) "5on--arty -artici!ant" 'eans a !erson, other than a !arty or 'ediator, who !artici!ates in a 'ediation !roceeding as a witness, resource !erson or e0!ert/ (aa) "-roceeding" 'eans a *udicial, ad'inistrative, or other ad*udicative !rocess, including related !re-hearing 'otions, conferences and discovery/ (bb) ""ecord" 'eans an infor'ation written on a tangible 'ediu' or stored in an electronic or other si'ilar 'ediu', retrievable for'/ and (cc) ""oster" 'eans a list of !ersons 8ualified to !rovide A " services as neutrals or to serve as arbitrators. S(C. ". Electronic Signatures in Global and E-Commerce Act . - The !rovisions of the 9lectronic &ignatures in :lobal and 9-,o''erce Act, and its i'!le'enting "ules and "egulations shall a!!ly to !roceeding conte'!lated in this Act. S(C. 5. Liability of ADR Provider and Practitioner. - The A " !roviders and !ractitioners shall have the sa'e civil liability for the Acts done in the !erfor'ance of then duties as that of !ublic officers as !rovided in &ection 4= (3), ,ha!ter <, Book of the Ad'inistrative ,ode of 3<=?. S(C. 4. Exce tion to t!e A lication of t!is Act. - The !rovisions of this Act shall not a!!ly to resolution or settle'ent of the following: (a) labor dis!utes covered by -residential ecree 5o. %%#, otherwise known as the +abor ,ode of the -hili!!ines, as a'ended and its 2'!le'enting "ules and "egulations/ (b) the civil status of !ersons/ (c) the validity of a 'arriage/ (d) any ground for legal se!aration/ (e) the *urisdiction of courts/ (f) future legiti'e/ (g) cri'inal liability/ and (h) those which by law cannot be co'!ro'ised. C)APT(R 2 1 .(,$AT$#N S(C. 5. Sco e. - The !rovisions of this ,ha!ter shall cover voluntary 'ediation, whether ad hoc or institutional, other than court-anne0ed. The ter' "'ediationA shall include conciliation. S(C. 8. A lication and "nter retation. - 2n a!!lying construing the !rovisions of this ,ha!ter, consideration 'ust be given to the need to !ro'ote candor or !arties and 'ediators through confidentiality of the 'ediation !rocess, the !olicy of fostering !ro'!t, econo'ical, and a'icable resolution of dis!utes in accordance with the !rinci!les of integrity of deter'ination by the !arties, and the !olicy that the decision'aking authority in the 'ediation !rocess rests with the !arties. S(C. 9. Confidentiality of "nformation. - 2nfor'ation obtained through 'ediation !roceedings shall be sub*ect to the following !rinci!les and guidelines: (a) 2nfor'ation obtained through 'ediation shall be !rivileged and confidential. (b) A !arty, a 'ediator, or a non!arty !artici!ant 'ay refuse to disclose and 'ay !revent any other !erson fro' disclosing a 'ediation co''unication. (c) ,onfidential 2nfor'ation shall not be sub*ect to discovery and shall be inad'issible if any adversarial !roceeding, whether *udicial or 8uasi-*udicial, Bowever, evidence or infor'ation that is otherwise ad'issible or sub*ect to discovery does not beco'e inad'issible or !rotected fro' discovery solely by reason of its use in a 'ediation. (d) 2n such an adversarial !roceeding, the following !ersons involved or !reviously involved in a 'ediation 'ay not be co'!elled to disclose confidential infor'ation obtained during 'ediation: (3) the !arties to the dis!ute/ (#) the 'ediator or 'ediators/ (4) the counsel for the !arties/ (%) the non!arty !artici!ants/ (>) any !ersons hired or engaged in connection with the 'ediation as secretary, stenogra!her, clerk or assistant/ and (7) any other !erson who obtains or !ossesses confidential infor'ation by reason of hisCher !rofession. (e) The !rotections of this Act shall continue to a!!ly even of a 'ediator is found to have failed to act i'!artially. (f) a 'ediator 'ay not be called to testify to !rovide infor'ation gathered in 'ediation. A 'ediator

who is wrongfully sub!oenaed shall be rei'bursed the full cost of his attorneyAs fees and related e0!enses. S(C. 0!. #aiver of Confidentiality. - A !rivilege arising fro' the confidentiality of infor'ation 'ay be waived in a record, or orally during a !roceeding by the 'ediator and the 'ediation !arties. A !rivilege arising fro' the confidentiality of infor'ation 'ay likewise be waived by a non!arty !artici!ant if the infor'ation is !rovided by such non!arty !artici!ant. A !erson who discloses confidential infor'ation shall be !recluded fro' asserting the !rivilege under &ection < of this ,ha!ter to bar disclosure of the rest of the infor'ation necessary to a co'!lete understanding of the !reviously disclosed infor'ation. 2f a !erson suffers loss or da'ages in a *udicial !roceeding against the !erson who 'ade the disclosure. A !erson who discloses or 'akes a re!resentation about a 'ediation is !reclude fro' asserting the !rivilege under &ection <, to the e0tent that the co''unication !re*udices another !erson in the !roceeding and it is necessary for the !erson !re*udiced to res!ond to the re!resentation of disclosure. S(C. 00. Exce tions to Privilege. (a) There is no !rivilege against disclosure under &ection < if 'ediation co''unication is: (3) in an agree'ent evidenced by a record authenticated by all !arties to the agree'ent/ (#) available to the !ublic or that is 'ade during a session of a 'ediation which is o!en, or is re8uired by law to be o!en, to the !ublic/ (4) a threat or state'ent of a !lan to inflict bodily in*ury or co''it a cri'e of violence/ (%) internationally used to !lan a cri'e, atte'!t to co''it, or co''it a cri'e, or conceal an ongoing cri'e or cri'inal activity/ (>) sought or offered to !rove or dis!rove abuse, neglect, abandon'ent, or e0!loitation in a !roceeding in which a !ublic agency is !rotecting the interest of an individual !rotected by law/ but this e0ce!tion does not a!!ly where a child !rotection 'atter is referred to 'ediation by a court or a !ublic agency !artici!ates in the child !rotection 'ediation/ (7) sought or offered to !rove or dis!rove a clai' or co'!laint of !rofessional 'isconduct or 'al!ractice filed against 'ediator in a !roceeding/ or (?) sought or offered to !rove or dis!rove a clai' of co'!laint of !rofessional 'isconduct of 'al!ractice filed against a !arty, non!arty !artici!ant, or re!resentative of a !arty based on conduct occurring during a 'ediation. (b) There is no !rivilege under &ection < if a court or ad'inistrative agency, finds, after a hearing in ca'era, that the !arty seeking discovery of the !ro!onent of the evidence has shown that the evidence is not otherwise available, that there is a need for the evidence that substantially outweighs the interest in !rotecting confidentiality, and the 'ediation co''unication is sought or offered in: (3) a court !roceeding involving a cri'e or felony/ or (#) a !roceeding to !rove a clai' or defense that under the law is sufficient to refor' or avoid a liability on a contract arising out of the 'ediation. (c) A 'ediator 'ay not be co'!elled to !rovide evidence of a 'ediation co''unication or testify in such !roceeding. (d) 2f a 'ediation co''unication is not !rivileged under an e0ce!tion in subsection (a) or (b), only the !ortion of the co''unication necessary for the a!!lication of the e0ce!tion for nondisclosure 'ay be ad'itted. The ad'ission of !articular evidence for the li'ited !ur!ose of an e0ce!tion does not render that evidence, or any other 'ediation co''unication, ad'issible for any other !ur!ose. S(C. 02. Pro!ibited $ediator Re orts. - A 'ediator 'ay not 'ake a re!ort, assess'ent, evaluation, reco''endation, finding, or other co''unication regarding a 'ediation to a court or agency or other

authority that 'ake a ruling on a dis!ute that is the sub*ect of a 'ediation, e0ce!t: (a) 1here the 'ediation occurred or has ter'inated, or where a settle'ent was reached. (b) As !er'itted to be disclosed under &ection 34 of this ,ha!ter. S(C. 03. $ediator%s Disclosure and Conflict of "nterest. - The 'ediation shall be guided by the following o!erative !rinci!les: (a) Before acce!ting a 'ediation, an individual who is re8uested to serve as a 'ediator shall: (3) 'ake an in8uiry that is reasonable under the circu'stances to deter'inate whether there are any known facts that a reasonable individual would consider likely to affect the i'!artiality of the 'ediator, including a financial or !ersonal interest in the outco'e of the 'ediation and any e0isting or !ast relationshi! with a !arty or foreseeable !artici!ant in the 'ediation/ and (#) disclosure to the 'ediation !arties any such fact known or learned as soon as is !ractical before acce!ting a 'ediation. (b) 2f a 'ediation learns any fact described in !aragra!h (a) (3) of this section after acce!ting a 'ediation, the 'ediator shall disclose it as soon as !racticable. At the re8uest of a 'ediation !arty, an individual who is re8uested to serve as 'ediator shall disclose hisCher 8ualifications to 'ediate a dis!ute. This Act does not re8uire that a 'ediator shall have s!ecial 8ualifications by background or !rofession unless the s!ecial 8ualifications of a 'ediator are re8uired in the 'ediation agree'ent or by the 'ediation !arties. S(C. 0". Partici ation in $ediation. - 90ce!t as otherwise !rovided in this Act, a !arty 'ay designate a lawyer or any other !erson to !rovide assistance in the 'ediation. A lawyer of this right shall be 'ade in writing by the !arty waiving it. A waiver of !artici!ation or legal re!resentation 'ay be rescinded at any ti'e. S(C. 05. Place of $ediation. - The !arties are free to agree on the !lace of 'ediation. .ailing such agree'ent, the !lace of 'ediation shall be any !lace convenient and a!!ro!riate to all !arties. S(C. 04. Effect of Agreement to Submit Dis ute to $ediation &nder "nstitutional Rules . - An agree'ent to sub'it a dis!ute to 'ediation by any institution shall include an agree'ent to be bound by the internal 'ediation and ad'inistrative !olicies of such institution. .urther, an agree'ent to sub'it a dis!ute to 'ediation under international 'ediation rule shall be dee'ed to include an agree'ent to have such rules govern the 'ediation of the dis!ute and for the 'ediator, the !arties, their res!ective counsel, and non!arty !artici!ants to abide by such rules. 2n case of conflict between the institutional 'ediation rules and the !rovisions of this Act, the latter shall !revail. S(C. 05. Enforcement of $ediated Settlement Agreement. - The 'ediation shall be guided by the following o!erative !rinci!les: (a) A settle'ent agree'ent following successful 'ediation shall be !re!ared by the !arties with the assistance of their res!ective counsel, if any, and by the 'ediator. The !arties and their res!ective counsels shall endeavor to 'ake the ter's and condition thereof co'!lete and 'ake ade8uate !rovisions for the contingency of breach to avoid conflicting inter!retations of the agree'ent. (b) The !arties and their res!ective counsels, if any, shall sign the settle'ent agree'ent. The 'ediator shall certify that heCshe e0!lained the contents of the settle'ent agree'ent to the !arties in a language known to the'. (c) 2f the !arties so desire, they 'ay de!osit such settle'ent agree'ent with the a!!ro!riate ,lerk of a "egional Trial ,ourt of the !lace where one of the !arties resides. 1here there is a need to enforce the settle'ent agree'ent, a !etition 'ay be filed by any of the !arties with the sa'e court,

in which case, the court shall !roceed su''arily to hear the !etition, in accordance with such rules of !rocedure as 'ay be !ro'ulgated by the &u!re'e ,ourt. (d) The !arties 'ay agree in the settle'ent agree'ent that the 'ediator shall beco'e a sole arbitrator for the dis!ute and shall treat the settle'ent agree'ent as an arbitral award which shall be sub*ect to enforce'ent under "e!ublic Act 5o. =?7, otherwise known as the Arbitration +aw, notwithstanding the !rovisions of 90ecutive Drder 5o. 3$$= for 'ediated dis!ute outside of the ,2A,. C)APT(R 3 1 #T)(R A,R *#R.S S(C. 08. Referral of Dis ute to ot!er ADR 'orms. - The !arties 'ay agree to refer one or 'ore or all issues arising in a dis!ute or during its !endency to other for's of A " such as but not li'ited to (a) the evaluation of a third !erson or (b) a 'ini-trial, (c) 'ediation-arbitration, or a co'bination thereof. .or !ur!oses of this Act, the use of other A " for's shall be governed by ,ha!ter # of this Act e0ce!t where it is co'bined with arbitration in which case it shall likewise be governed by ,ha!ter > of this Act. C)APT(R " 1 $NT(RNAT$#NA& C#..(RC$A& AR/$TRAT$#N S(C. 09. Ado tion of t!e $odel La( on "nternational Commercial Arbitration . - 2nternational co''ercial arbitration shall be governed by the Model +aw on 2nternational ,o''ercial Arbitration (the "Model +aw") ado!ted by the ;nited 5ations ,o''ission on 2nternational Trade +aw on June #3, 3<=> (;nited 5ations ocu'ent AC%$C3?) and reco''ended a!!roved on ece'ber 33, 3<=>, co!y of which is hereto attached as A!!endi0 "A". S(C. 2!. "nter retation of $odel La(. - 2n inter!reting the Model +aw, regard shall be had to its international origin and to the need for unifor'ity in its inter!retation and resort 'ay be 'ade to the travaux preparatories and the re!ort of the &ecretary :eneral of the ;nited 5ations ,o''ission on 2nternational Trade +aw dated March #>, 3<=> entitled, "2nternational ,o''ercial Arbitration: Analytical ,o''entary on raft Trade identified by reference nu'ber AC,5. <C#7%." S(C. 20. Commercial Arbitration. - An arbitration is "co''ercial" if it covers 'atters arising fro' all relationshi!s of a co''ercial nature, whether contractual or not. "elationshi!s of a transactions: any trade transaction for the su!!ly or e0change of goods or services/ distribution agree'ents/ construction of works/ co''ercial re!resentation or agency/ factoring/ leasing, consulting/ engineering/ licensing/ invest'ent/ financing/ banking/ insurance/ *oint venture and other for's of industrial or business coo!eration/ carriage of goods or !assengers by air, sea, rail or road. S(C. 22. Legal Re resentation in "nternational Arbitration. - 2n international arbitration conducted in the -hili!!ines, a !arty 'ay be !resented by any !erson of his choice. Provided, that such re!resentative, unless ad'itted to the !ractice of law in the -hili!!ines, shall not be authori@ed to a!!ear as counsel in any -hili!!ine court, or any other 8uasi-*udicial body whether or not such a!!earance is in relation to the arbitration in which he a!!ears. S(C. 23. Confidential of Arbitration Proceedings. - The arbitration !roceedings, including the records, evidence and the arbitral award, shall be considered confidential and shall not be !ublished e0ce!t (3) with the consent of the !arties, or (#) for the li'ited !ur!ose of disclosing to the court of relevant docu'ents in cases where resort to the court is allowed herein. -rovided, however, that the court in which the action or the a!!eal is !ending 'ay issue a !rotective order to !revent or !rohibit disclosure of docu'ents or infor'ation containing secret !rocesses, develo!'ents, research and other infor'ation where it is shown that the a!!licant shall be 'aterially !re*udiced by an authori@ed disclosure thereof. S(C. 2". Referral to Arbitration. - A court before which an action is brought in a 'atter which is the sub*ect 'atter of an arbitration agree'ent shall, if at least one !arty so re8uests not later that the !re-trial conference, or u!on the re8uest of both !arties thereafter, refer the !arties to arbitration unless it finds that the arbitration agree'ent is null and void, ino!erative or inca!able of being !erfor'ed. S(C. 25. "nter retation of t!e Act. - 2n inter!reting the Act, the court shall have due regard to the !olicy of the law in favor of arbitration. 1here action is co''enced by or against 'ulti!le !arties, one or 'ore of who' are !arties who are bound by the arbitration agree'ent although the civil action 'ay continue as to those who are not bound by such arbitration agree'ent.

S(C. 24. $eaning of )A ointing Aut!ority*). - "A!!ointing Authority" as used in the Model +aw shall 'ean the !erson or institution na'ed in the arbitration agree'ent as the a!!ointing authority/ or the regular arbitration arbitration institution under whose rules the arbitration is agreed to be conducted. 1here the !arties have agreed to sub'it their dis!ute to institutional arbitration rules, and unless they have agreed to a different !rocedure, they shall be dee'ed to have agreed to !rocedure under such arbitration rules for the selection and a!!oint'ent of arbitrators. 2n ad hoc arbitration, the default a!!oint'ent of an arbitrator shall be 'ade by the 5ational -resident of the 2ntegrated Bar of the -hili!!ines (2B-) or his duly authori@ed re!resentative. S(C. 25. #!at 'unctions $ay be Performed by A ointing Aut!ority. - The functions referred to in Articles 33(4), 33(%), 34(4) and 3%(3) of the Model +aw shall be !erfor'ed by the A!!ointing Authority, unless the latter shall fail or refuse to act within thirty (4$) days fro' recei!t of the re8uest in which case the a!!licant 'ay renew the a!!lication with the ,ourt. S(C. 28. Grant of "nterim $easure of Protection. (a) 2t is not inco'!atible with an arbitration agree'ent for a !arty to re8uest, before constitution of the tribunal, fro' a ,ourt an interi' 'easure of !rotection and for the ,ourt to grant such 'easure. After constitution of the arbitral tribunal and during arbitral !roceedings, a re8uest for an interi' 'easure of !rotection or 'odification thereof, 'ay be 'ade with the arbitral tribunal or to the e0tent that the arbitral tribunal has no !ower to act or is unable to act effectively, the re8uest 'ay be 'ade with the ,ourt. The arbitral tribunal is dee'ed constituted when the sole arbitrator or the third arbitrator who has been no'inated, has acce!ted the no'ination and written co''unication of said no'ination and acce!tance has been received by the !arty 'aking re8uest. (b) The following rules on interi' or !rovisional relief shall be observed: (3) Any !arty 'ay re8uest that !rovision relief be granted against the adverse !arty: (#) &uch relief 'ay be granted: (i) to !revent irre!arable loss or in*ury: (ii) to !rovide security for the !erfor'ance of any obligation/ (iii) to !roduce or !reserve any evidence/ or (iv) to co'!el any other a!!ro!riate act or o'ission. (4) The order granting !rovisional relief 'ay be conditioned u!on the !rovision of security or any act or o'ission s!ecified in the order. (%) 2nteri' or !rovisional relief is re8uested by written a!!lication trans'itted by reasonable 'eans to the ,ourt or arbitral tribunal as the case 'ay be and the !arty against who' the relief is sought, describing in a!!ro!riate detail the !recise relief, the !arty against who' the relief is re8uested, the grounds for the relief, and evidence su!!orting the re8uest. (>) The order shall be binding u!on the !arties. (7) 9ither !arty 'ay a!!ly with the ,ourt for assistance in 2'!le'enting or enforcing an interi' 'easure ordered by an arbitral tribunal. (?) A !arty who does not co'!ly with the order shall be liable for all da'ages resulting fro' nonco'!liance, including all e0!enses, and reasonable attorneyAs fees, !aid in obtaining the orderAs *udicial enforce'ent. S(C. 29. 'urt!er Aut!ority for Arbitrator to Grant "nterim $easure of Protection . - ;nless otherwise agreed by the !arties, the arbitral tribunal 'ay, at the re8uest of a !arty, order any !arty to take such interi' 'easures of !rotection as the arbitral tribunal 'ay consider necessary in res!ect of the sub*ect 'atter of the dis!ute following the rules in &ection #=, !aragra!h #. &uch interi' 'easures 'ay include but shall not be li'ited to !reli'inary in*uction directed against a !arty, a!!oint'ent of receivers or detention, !reservation, ins!ection of !ro!erty that is the sub*ect of the dis!ute in arbitration. 9ither !arty 'ay a!!ly with the ,ourt for assistance in i'!le'enting or enforcing an interi' 'easures ordered by an arbitral tribunal.

S(C. 3!. Place of Arbitration. - The !arties are free to agree on the !lace of arbitration. .ailing such agree'ent, the !lace of arbitration shall be in Metro Manila, unless the arbitral tribunal, having regard to the circu'stances of the case, including the convenience of the !arties shall decide on a different !lace of arbitration. The arbitral tribunal 'ay, unless otherwise agreed by the !arties, 'eet at any !lace it considers a!!ro!riate for consultation a'ong its 'e'bers, for hearing witnesses, e0!erts, or the !arties, or for ins!ection of goods, other !ro!erty or docu'ents. S(C. 30. Language of t!e Arbitration. - The !arties are free to agree on the language or languages to be used in the arbitral !roceedings. .ailing such agree'ent, the language to be used shall be 9nglish in international arbitration, and 9nglish or .ili!ino for do'estic arbitration, unless the arbitral tribunal shall deter'ine a different or another language or languages to be used in the !roceedings. This agree'ent or deter'ination, unless otherwise s!ecified therein, shall a!!ly to any written state'ent by a !arty, any hearing and any award, decision or other co''unication by the arbitral tribunal. The arbitral tribunal 'ay order that any docu'entary evidence shall be acco'!anied by a translation into the language or languages agreed u!on by the !arties or deter'ined in accordance with !aragra!h 3 of this section. C)APT(R 5 1 ,#.(ST$C AR/$TRAT$#N S(C. 32. La( Governing Domestic Arbitration. - o'estic arbitration shall continue to be governed by "e!ublic Act 5o. =?7, otherwise known as "The Arbitration +aw" as a'ended by this ,ha!ter. The ter' "do'estic arbitration" as used herein shall 'ean an arbitration that is not international as defined in Article (4) of the Model +aw. S(C. 33. A licability to Domestic Arbitration . - Article =, 3$, 33, 3#, 34, 3%, 3= and 3< and #< to 4# of the Model +aw and &ection ## to 43 of the !receding ,ha!ter % shall a!!ly to do'estic arbitration. C)APT(R 4 1 AR/$TRAT$#N #* C#NSTR%CT$#N ,$SP%T(S S(C. 3". Arbitration of Construction Dis utes+ Governing La(. - The arbitration of construction dis!utes shall be governed by 90ecutive Drder 5o. 3$$=, otherwise known as the ,onstitution 2ndustry Arbitration +aw. S(C. 35. Coverage of t!e La(. - ,onstruction dis!utes which fall within the original and e0clusive *urisdiction of the ,onstruction 2ndustry Arbitration ,o''ission (the ",o''ission") shall include those between or a'ong !arties to, or who are otherwise bound by, an arbitration agree'ent, directly or by reference whether such !arties are !ro*ect owner, contractor, subcontractor, 8uantity surveyor, bonds'an or issuer of an insurance !olicy in a construction !ro*ect. The ,o''ission shall continue to e0ercise original and e0clusive *urisdiction over construction dis!utes although the arbitration is "co''ercial" !ursuant to &ection #3 of this Act. S(C. 34. Aut!ority to Act as $ediator or Arbitrator. - By written agree'ent of the !arties to a dis!ute, an arbitrator 'ay act as 'ediator and a 'ediator 'ay act as arbitrator. The !arties 'ay also agree in writing that, following a successful 'ediation, the 'ediator shall issue the settle'ent agree'ent in the for' of an arbitral award. S(C. 35. A ointment of 'oreign Arbitrator. - The ,onstruction 2ndustry Arbitration ,o''ission (,2A,) shall !ro'ulgate rules to allow for the a!!oint'ent of a foreign arbitrator or coarbitrator or chair'an of a tribunal a !erson who has not been !reviously accredited by ,2A,: -rovided, That: (a) the dis!ute is a construction dis!ute in which one !arty is an international !arty (b) the !erson to be a!!ointed agreed to abide by the arbitration rules and !olicies of ,2A,/ (c) heCshe is either coarbitrator u!on the no'ination of the international !arty/ or heCshe is the co''on choice of the two ,2A,-accredited arbitrators first a!!ointed one of who' was no'inated by the international !arty/ and (d) the foreign arbitrator shall be of different nationality fro' the international !arty.

S(C. 38. A licability to Construction Arbitration. - The !rovisions of &ections 3? (d) of ,ha!ter #, and &ection #= and #< of this Act shall a!!ly to arbitration of construction dis!utes covered by this ,ha!ter. S(C. 39. Court to Dismiss Case "nvolving a Construction Dis ute . - A regional trial court which a construction dis!ute is filed shall, u!on beco'ing aware, not later than the !retrial conference, that the !arties had entered into an arbitration to be conducted by the ,2A,, unless both !arties, assisted by their res!ective counsel, shall sub'it to the regional trial court a written agree'ent e0clusive for the ,ourt, rather than the ,2A,, to resolve the dis!ute. C)APT(R 5 1 6%,$C$A& R(+$(7 #* AR/$TRA& A7AR,S A. ,#.(ST$C A7AR,S S(C. "!. Confirmation of A(ard. - The confir'ation of a do'estic arbitral award shall be governed by &ection #4 of ".A. =?7. A do'estic arbitral award when confir'ed shall be enforced in the sa'e 'anner as final and e0ecutory decisions of the "egional Trial ,ourt. The confir'ation of a do'estic award shall be 'ade by the regional trial court in accordance with the "ules of -rocedure to be !ro'ulgated by the &u!re'e ,ourt. A ,2A, arbitral award need not be confir'ed by the regional trial court to be e0ecutory as !rovided under 9.D. 5o. 3$$=. S(C. "0. ,acation A(ard. - A !arty to a do'estic arbitration 'ay 8uestion the arbitral award with the a!!ro!riate regional trial court in accordance with the rules of !rocedure to be !ro'ulgated by the &u!re'e ,ourt only on those grounds enu'erated in &ection #> of "e!ublic Act 5o. =?7. Any other ground raised against a do'estic arbitral award shall be disregarded by the regional trial court. /. *#R($2N AR/$TRA& A7AR,S S(C. "2. A lication of t!e -e( .or/ Convention. - The 5ew 6ork ,onvention shall govern the recognition and enforce'ent of arbitral awards covered by the said ,onvention. The recognition and enforce'ent of such arbitral awards shall be filled with regional trial court in accordance with the rules of !rocedure to be !ro'ulgated by the &u!re'e ,ourt. &aid !rocedural rules shall !rovide that the !arty relying on the award or a!!lying for its enforce'ent shall file with the court the original or authenticated co!y of the award and the arbitration agree'ent. 2f the award or agree'ent is not 'ade in any of the official languages, the !arty shall su!!ly a duly certified translation thereof into any of such languages. The a!!licant shall establish that the country in which foreign arbitration award was 'ade is a !arty to the 5ew 6ork ,onvention. 2f the a!!lication for re*ection or sus!ension of enforce'ent of an award has been 'ade, the regional trial court 'ay, if it considers it !ro!er, vacate its decision and 'ay also, on the a!!lication of the !arty clai'ing recognition or enforce'ent of the award, order the !arty to !rovide a!!ro!riate security. S(C. "3. Recognition and Enforcement of 'oreign Arbitral A(ards -ot Covered by t!e -e( .or/ Convention. - The recognition and enforce'ent of foreign arbitral awards not covered by the 5ew 6ork ,onvention shall be done in accordance with !rocedural rules to be !ro'ulgated by the &u!re'e ,ourt. The ,ourt 'ay, grounds of co'ity and reci!rocity, recogni@e and enforce a nonconvention award as a convention award. S(C. "". 'oreign Arbitral A(ard -ot 'oreign 0udgment. - A foreign arbitral award when confir'ed by a court of a foreign country, shall be recogni@ed and enforced as a foreign arbitral award and not a *udg'ent of a foreign court. A foreign arbitral award, when confir'ed by the regional trial court, shall be enforced as a foreign arbitral award and not as a *udg'ent of a foreign court. A foreign arbitral award, when confir'ed by the regional trial court, shall be enforced in the sa'e 'anner as final and e0ecutory decisions of courts of law of the -hili!!ines.

S(C. "5. Re1ection of a 'oreign Arbitral A(ard. - A !arty to a foreign arbitration !roceeding 'ay o!!ose an a!!lication for recognition and enforce'ent of the arbitral award in accordance with the !rocedural rules to be !ro'ulgated by the &u!re'e ,ourt only on those grounds enu'erated under Article E of the 5ew 6ork ,onvention. Any other ground raised shall be disregarded by the regional trial court. S(C. "4. A eal from Court Decisions on Arbitral A(ards. - A decision of the regional trial court confir'ing, vacating, setting aside, 'odifying or correcting an arbitral award 'ay be a!!ealed to the ,ourt of A!!eals in accordance with the rules of !rocedure to be !ro'ulgated by the &u!re'e ,ourt. The losing !arty who a!!eals fro' the *udg'ent of the court confir'ing an arbitral award shall re8uired by the a!!ealant court to !ost counterbond e0ecuted in favor of the !revailing !arty e8ual to the a'ount of the award in accordance with the rules to be !ro'ulgated by the &u!re'e ,ourt. S(C. "5. ,enue and 0urisdiction. - -roceedings for recognition and enforce'ent of an arbitration agree'ent or for vacation, setting aside, correction or 'odification of an arbitral award, and any a!!lication with a court for arbitration assistance and su!ervision shall be dee'ed as s!ecial !roceedings and shall be filled with the regional trial court (i) where arbitration !roceedings are conducted/ (ii) where the asset to be attached or levied u!on, or the act to be en*oined is located/ (iii) where any of the !arties to the dis!ute resides or has his !lace of business/ or (iv) in the 5ational Judicial ,a!ital "egion, at the o!tion of the a!!licant. S(C. "8. -otice of Proceeding to Parties. - 2n a s!ecial !roceeding for recognition and enforce'ent of an arbitral award, the ,ourt shall send notice to the !arties at their address of record in the arbitration, or if any !arty cannot be served notice at such address, at such !artyAs last known address. The notice shall be sent at least fifteen (3>) days before the date set for the initial hearing of the a!!lication. C)APT(R 8 1 .$SC(&&AN(#%S PR#+$S$#NS S(C. "9. 2ffice for Alternative Dis ute Resolution . - There is hereby established the Dffice for Alternative is!ute "esolution as an attached agency to the e!art'ent of Justice ( DJ) which shall have a &ecretariat to be headed by an e0ecutive director. The e0ecutive director shall be a!!ointed by the -resident of the -hili!!ines. The ob*ective of the office are: (a) to !ro'ote, develo! and e0!and the use of A " in the !rivate and !ublic sectors/ and To assist the govern'ent to 'onitor, study and evaluate the use by the !ublic and the !rivate sector of A ", and reco''end to ,ongress needful statutory changes to develo!. &trengthen and i'!rove A " !ractices in accordance with world standards. S(C. 5!. Po(ers and 'unctions of t!e 2ffice for Alternative Dis ute Resolution . - The Dffice for Alternative is!ute "esolution shall have the following !owers and functions: (a) To for'ulate standards for the training of the A " !ractitioners and service !roviders/ (b) To certify that such A " !ractitioners and A " service !roviders have undergone the !rofessional training !rovided by the office/ (c) To coordinate the develo!'ent, i'!le'entation, 'onitoring, and evaluation of govern'ent A " !rogra's/ (d) To charge fees for their services/ and (e) To !erfor' such acts as 'ay be necessary to carry into effect the !rovisions of this Act. S(C. 50. A ro riations. - The a'ount necessary to carry out the !rovisions of this Act shall be included in the :eneral A!!ro!riations Act of the year following its enact'ent into law and thereafter. S(C. 52. "m lementing Rules and Regulations 3"RR4. - 1ithin one (3) 'onth after the a!!roval of this Act, the secretary of *ustice shall convene a co''ittee that shall for'ulate the a!!ro!riate rules and regulations necessary for the i'!le'entation of this Act. The co''ittee, co'!osed of re!resentatives fro': (a) the e!art'ent of Justice/

(b) the (c) the

e!art'ent of Trade and 2ndustry/ e!art'ent of the 2nterior and +ocal :overn'ent/

(d) the !resident of the 2ntegrated Bar of the -hili!!ines/ (e) A re!resentative fro' the arbitration !rofession/ and (f) A re!resentative fro' the 'ediation !rofession/ and (g) A re!resentative fro' the A " organi@ations shall within three (4) 'onths after convening, sub'it the 2"" to the Joint ,ongressional Dversight ,o''ittee for review and a!!roval. The Dversight ,o''ittee shall be co'!osed of the chair'an of the &enate ,o''ittee on Justice and Bu'an "ights, chair'an of the Bouse ,o''ittee on Justice, and one (3) 'e'ber each fro' the 'a*ority and 'inority of both Bouses. The Joint Dversight ,o''ittee shall beco'e functus officio u!on a!!roval of the 2"". S(C. 53. A licability of t!e 5atarungan Pambarangay. - This Act shall not be inter!reted to re!eal, a'end or 'odify the *urisdiction of the Fatarungan -a'barangay under "e!ublic Act 5o. ?37$, otherwise known as the +ocal :overn'ent ,ode of 3<<3. S(C. 5". Re ealing Clause. - All laws, decrees, e0ecutive orders, rules and regulations which are inconsistent with the !rovisions of this Act are hereby re!ealed, a'ended or 'odified accordingly. S(C. 55. Se arability Clause. - 2f for any reason or reasons, any !ortion or !rovision of this Act shall be held unconstitutional or invalid, all other !arts or !rovisions not affected shall thereby continue to re'ain in full force and effect. S(C. 54. Effectivity. - This act shall take effect fifteen days (3>) after its !ublication in at least two (#) national news!a!ers of general circulation. A!!roved, *RAN8&$N ,R$&#N -resident of the &enate 6#S( ,( +(N(C$A 6R. &!eaker of the Bouse of "e!resentatives

This Act which is a consolidation of &enate Bill 5o. #7?3 and Bouse Bill 5o. >7>% was finally !assed by the &enate and the Bouse of "e!resentatives on .ebruary %, #$$%. #SCAR 2. -A/(S &ecretary of &enate R#/(RT# P. NA'AR(N# &ecretary :eneral Bouse of "e!resenatives

A!!roved: A!ril #, #$$% 2&#R$A .ACAPA2A&1ARR#-# President of the Philippines

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R(P%/&$C ACT N#. 854 AN ACT T# A%T)#R$'( T)( .A8$N2 #* AR/$TRAT$#N AN, S%/.$SS$#N A2R((.(NTS T# PR#+$,( *#R T)( APP#$NT.(NT #* AR/$TRAT#RS AN, T)( PR#C(,%R( *#R AR/$TRAT$#N $N C$+$& C#NTR#+(RS$(S AN, *#R #T)(R P%RP#S(S Section 0. Short Title. - This Act shall be known as "The Arbitration +aw." Section 2. Persons and matters subject to arbitration. - Two or 'ore !ersons or !arties 'ay sub'it to the arbitration of one or 'ore arbitrators any controversy e0isting between the' at the ti'e of the sub'ission and which 'ay be the sub*ect of an action, or the !arties to any contract 'ay in such contract agree to settle by arbitration a controversy thereafter arising between the'. &uch sub'ission or contract shall be valid, enforceable and irrevocable, save u!on such grounds as e0ist at law for the revocation of any contract. &uch sub'ission or contract 'ay include 8uestion arising out of valuations, a!!raisals or other controversies which 'ay be collateral, incidental, !recedent or subse8uent to any issue between the !arties. A controversy cannot be arbitrated where one of the !arties to the controversy is an infant, or a !erson *udicially declared to be inco'!etent, unless the a!!ro!riate court having *urisdiction a!!rove a !etition for !er'ission to sub'it such controversy to arbitration 'ade by the general guardian or guardian ad lite' of the infant or of the inco'!etent. But where a !erson ca!able of entering into a sub'ission or contract has knowingly entered into the sa'e with a !erson inca!able of so doing, the ob*ection on the ground of inca!acity can be taken only in behalf of the !erson so inca!acitated. Section 3. Controversies or cases not subject to the provisions of this ct. - This Act shall not a!!ly to controversies and to cases which are sub*ect to the *urisdiction of the ,ourt of 2ndustrial "elations or which have been sub'itted to it as !rovided by ,o''onwealth Act 5u'bered Dne hundred and three, as a'ended. Section ". !orm of arbitration agreement. - A contract to arbitrate a controversy thereafter arising between the !arties, as well as a sub'ission to arbitrate an e0isting controversy shall be in writing and subscribed by the !arty sought to be charged, or by his lawful agent. The 'aking of a contract or sub'ission for arbitration described in section two hereof, !roviding for arbitration of any controversy, shall be dee'ed a consent of the !arties to the *urisdiction of the ,ourt of .irst 2nstance of the !rovince or city where any of the !arties resides, to enforce such contract or sub'ission. Section 5. Preliminary procedure. - An arbitration shall be instituted by: (a) 2n the case of a contract to arbitrate future controversies by the service by either !arty u!on the other of a de'and for arbitration in accordance with the contract. &uch de'and shall be set forth the nature of the controversy, the a'ount involved, if any, and the relief sought, together with a true co!y of the contract !roviding for arbitration. The de'and shall be served u!on any !arty either in !erson or by registered 'ail. 2n the event that the contract between the !arties !rovides for the a!!oint'ent of a single arbitrator, the de'and shall be set forth a s!ecific ti'e within which the !arties shall agree u!on such arbitrator. 2f the contract between the !arties !rovides for the a!!oint'ent of three arbitrators, one to be selected by each !arty, the de'and shall na'e the arbitrator a!!ointed by the !arty 'aking the de'and/ and shall re8uire that the !arty u!on who' the de'and is 'ade shall within fifteen days after recei!t thereof advise in writing the !arty 'aking such de'and of the na'e of the !erson a!!ointed by the second !arty/ such notice shall re8uire that the two arbitrators so a!!ointed 'ust agree u!on the third arbitrator within ten days fro' the date of such notice. (b) 2n the event that one !arty defaults in answering the de'and, the aggrieved !arty 'ay file with the ,lerk of the ,ourt of .irst 2nstance having *urisdiction over the !arties, a co!y of the de'and for arbitration under the contract to arbitrate, with a notice that the original de'and was sent by registered 'ail or delivered in !erson to the !arty against who' the clai' is asserted. &uch

de'and shall set forth the nature of the controversy, the a'ount involved, if any, and the relief sought, and shall be acco'!anied by a true co!y of the contract !roviding for arbitration. (c) 2n the case of the sub'ission of an e0isting controversy by the filing with the ,lerk of the ,ourt of .irst 2nstance having *urisdiction, of the sub'ission agree'ent, setting forth the nature of the controversy, and the a'ount involved, if any. &uch sub'ission 'ay be filed by any !arty and shall be duly e0ecuted by both !arties. (d) 2n the event that one !arty neglects, fails or refuses to arbitrate under a sub'ission agree'ent, the aggrieved !arty shall follow the !rocedure !rescribed in sub!aragra!hs (a) and (b) of this section. Section 4. Hearing by court. - A !arty aggrieved by the failure, neglect or refusal of another to !erfor' under an agree'ent in writing !roviding for arbitration 'ay !etition the court for an order directing that such arbitration !roceed in the 'anner !rovided for in such agree'ent. .ive days notice in writing of the hearing of such a!!lication shall be served either !ersonally or by registered 'ail u!on the !arty in default. The court shall hear the !arties, and u!on being satisfied that the 'aking of the agree'ent or such failure to co'!ly therewith is not in issue, shall 'ake an order directing the !arties to !roceed to arbitration in accordance with the ter's of the agree'ent. 2f the 'aking of the agree'ent or default be in issue the court shall !roceed to su''arily hear such issue. 2f the finding be that no agree'ent in writing !roviding for arbitration was 'ade, or that there is no default in the !roceeding thereunder, the !roceeding shall be dis'issed. 2f the finding be that a written !rovision for arbitration was 'ade and there is a default in !roceeding thereunder, an order shall be 'ade su''arily directing the !arties to !roceed with the arbitration in accordance with the ter's thereof. The court shall decide all 'otions, !etitions or a!!lications filed under the !rovisions of this Act, within ten days after such 'otions, !etitions, or a!!lications have been heard by it. Section 5. Stay of civil action. - 2f any suit or !roceeding be brought u!on an issue arising out of an agree'ent !roviding for the arbitration thereof, the court in which such suit or !roceeding is !ending, u!on being satisfied that the issue involved in such suit or !roceeding is referable to arbitration, shall stay the action or !roceeding until an arbitration has been had in accordance with the ter's of the agree'ent: -rovided, That the a!!licant, for the stay is not in default in !roceeding with such arbitration. Section 8. ppointment of arbitrators. - 2f, in the contract for arbitration or in the sub'ission described in section two, !rovision is 'ade for a 'ethod of na'ing or a!!ointing an arbitrator or arbitrators, such 'ethod shall be followed/ but if no 'ethod be !rovided therein the ,ourt of .irst 2nstance shall designate an arbitrator or arbitrators. The ,ourt of .irst 2nstance shall a!!oint an arbitrator or arbitrators, as the case 'ay be, in the following instances: (a) 2f the !arties to the contract or sub'ission are unable to agree u!on a single arbitrator/ or (b) 2f an arbitrator a!!ointed by the !arties is unwilling or unable to serve, and his successor has not been a!!ointed in the 'anner in which he was a!!ointed/ or (c) 2f either !arty to the contract fails or refuses to na'e his arbitrator within fifteen days after recei!t of the de'and for arbitration/ or (d) 2f the arbitrators a!!ointed by each !arty to the contract, or a!!ointed by one !arty to the contract and by the !ro!er ,ourt, shall fail to agree u!on or to select the third arbitrator. (e) The court shall, in its discretion a!!oint one or three arbitrators, according to the i'!ortance of the controversy involved in any of the !receding cases in which the agree'ent is silent as to the nu'ber of arbitrators. (f) Arbitrators a!!ointed under this section shall either acce!t or decline their a!!oint'ents within seven days of the recei!t of their a!!oint'ents. 2n case of declination or the failure of an arbitrator or arbitrators to duly acce!t their a!!oint'ents the !arties or the court, as the case 'ay be, shall !roceed to a!!oint a substitute or substitutes for the arbitrator or arbitrators who decline or failed to acce!t his or their a!!oint'ents.

Section 9. ppointment of additional arbitrators. - 1here a sub'ission or contract !rovides that two or 'ore arbitrators therein designated or to be thereafter a!!ointed by the !arties, 'ay select or a!!oint a !erson as an additional arbitrator, the selection or a!!oint'ent 'ust be in writing. &uch additional arbitrator 'ust sit with the original arbitrators u!on the hearing. Section 0!. "ualifications of arbitrators. - Any !erson a!!ointed to serve as an arbitrator 'ust be of legal age, in full-en*oy'ent of his civil rights and know how to read and write. 5o !erson a!!ointed to served as an arbitrator shall be related by blood or 'arriage within the si0th degree to either !arty to the controversy. 5o !erson shall serve as an arbitrator in any !roceeding if he has or has had financial, fiduciary or other interest in the controversy or cause to be decided or in the result of the !roceeding, or has any !ersonal bias, which 'ight !re*udice the right of any !arty to a fair and i'!artial award. 5o !arty shall select as an arbitrator any !erson to act as his cha'!ion or to advocate his cause. 2f, after a!!oint'ent but before or during hearing, a !erson a!!ointed to serve as an arbitrator shall discover any circu'stances likely to create a !resu'!tion of bias, or which he believes 'ight dis8ualify hi' as an i'!artial arbitrator, the arbitrator shall i''ediately disclose such infor'ation to the !arties. Thereafter the !arties 'ay agree in writing: (a) to waive the !resu'!tive dis8ualifying circu'stances/ or (b) to declare the office of such arbitrator vacant. Any such vacancy shall be filled in the sa'e 'anner as the original a!!oint'ent was 'ade. Section 00. Challenge of arbitrators. - The arbitrators 'ay be challenged only for the reasons 'entioned in the !receding section which 'ay have arisen after the arbitration agree'ent or were unknown at the ti'e of arbitration. The challenge shall be 'ade before the'. 2f they do not yield to the challenge, the challenging !arty 'ay renew the challenge before the ,ourt of .irst 2nstance of the !rovince or city in which the challenged arbitrator, or, any of the', if there be 'ore than one, resides. 1hile the challenging incident is discussed before the court, the hearing or arbitration shall be sus!ended, and it shall be continued i''ediately after the court has delivered an order on the challenging incident. Section 02. Procedure by arbitrators. - &ub*ect to the ter's of the sub'ission or contract, if any are s!ecified therein, are arbitrators selected as !rescribed herein 'ust, within five days after a!!oint'ent if the !arties to the controversy reside within the sa'e city or !rovince, or within fifteen days after a!!oint'ent if the !arties reside in different !rovinces, set a ti'e and !lace for the hearing of the 'atters sub'itted to the', and 'ust cause notice thereof to be given to each of the !arties. The hearing can be !ost!oned or ad*ourned by the arbitrators only by agree'ent of the !arties/ otherwise, ad*ourn'ent 'ay be ordered by the arbitrators u!on their own 'otion only at the hearing and for good and sufficient cause. 5o ad*ourn'ent shall e0tend the hearing beyond the day fi0ed in the sub'ission or contract for rendering the award, unless the ti'e so fi0ed is e0tended by the written agree'ent of the !arties to the sub'ission or contract or their attorneys, or unless the !arties have continued with the arbitration without ob*ection to such ad*ourn'ent. The hearing 'ay !roceed in the absence of any !arty who, after due notice, fails to be !resent at such hearing or fails to obtain an ad*ourn'ent thereof. An award shall not be 'ade solely on the default of a !arty. The arbitrators shall re8uire the other !arty to sub'it such evidence as they 'ay re8uire for 'aking an award. 5o one other than a !arty to said arbitration, or a !erson in the regular e'!loy of such !arty duly authori@ed in writing by said !arty, or a !racticing attorney-at-law, shall be !er'itted by the arbitrators to re!resent before hi' or the' any !arty to the arbitration. Any !arty desiring to be re!resented by counsel shall notify the other !arty or !arties of such intention at least five days !rior to the hearing. The arbitrators shall arrange for the taking of a stenogra!hic record of the testi'ony when such a record is re8uested by one or 'ore !arties, and when !ay'ent of the cost thereof is assu'ed by such !arty or !arties.

-ersons having a direct interest in the controversy which is the sub*ect of arbitration shall have the right to attend any hearing/ but the attendance of any other !erson shall be at the discretion of the arbitrators. Section 03. #ath of arbitrators. - Before hearing any testi'ony, arbitrators 'ust be sworn, by any officer authori@ed by law to ad'inister an oath, faithfully and fairly to hear and e0a'ine the 'atters in controversy and to 'ake a *ust award according to the best of their ability and understanding. Arbitrators shall have the !ower to ad'inister the oaths to all witnesses re8uiring the' to tell the whole truth and nothing but the truth in any testi'ony which they 'ay give in any arbitration hearing. This oath shall be re8uired of every witness before any of his testi'ony is heard. Section 0". Subpoena and subpoena duces tecum. - Arbitrators shall have the !ower to re8uire any !erson to attend a hearing as a witness. They shall have the !ower to sub!oena witnesses and docu'ents when the relevancy of the testi'ony and the 'ateriality thereof has been de'onstrated to the arbitrators. Arbitrators 'ay also re8uire the retire'ent of any witness during the testi'ony of any other witness. All of the arbitrators a!!ointed in any controversy 'ust attend all the hearings in that 'atter and hear all the allegations and !roofs of the !arties/ but an award by the 'a*ority of the' is valid unless the concurrence of all of the' is e0!ressly re8uired in the sub'ission or contract to arbitrate. The arbitrator or arbitrators shall have the !ower at any ti'e, before rendering the award, without !re*udice to the rights of any !arty to !etition the court to take 'easures to safeguard andCor conserve any 'atter which is the sub*ect of the dis!ute in arbitration. Section 05. Hearing by arbitrators. - Arbitrators 'ay, at the co''ence'ent of the hearing, ask both !arties for brief state'ents of the issues in controversy andCor an agreed state'ent of facts. Thereafter the !arties 'ay offer such evidence as they desire, and shall !roduce such additional evidence as the arbitrators shall re8uire or dee' necessary to an understanding and deter'ination of the dis!ute. The arbitrators shall be the sole *udge of the relevancy and 'ateriality of the evidence offered or !roduced, and shall not be bound to confor' to the "ules of ,ourt !ertaining to evidence. Arbitrators shall receive as e0hibits in evidence any docu'ent which the !arties 'ay wish to sub'it and the e0hibits shall be !ro!erly identified at the ti'e of sub'ission. All e0hibits shall re'ain in the custody of the ,lerk of ,ourt during the course of the arbitration and shall be returned to the !arties at the ti'e the award is 'ade. The arbitrators 'ay 'ake an ocular ins!ection of any 'atter or !re'ises which are in dis!ute, but such ins!ection shall be 'ade only in the !resence of all !arties to the arbitration, unless any !arty who shall have received notice thereof fails to a!!ear, in which event such ins!ection shall be 'ade in the absence of such !arty. Section 04. Briefs. - At the close of the hearings, the arbitrators shall s!ecifically in8uire of all !arties whether they have any further !roof or witnesses to !resent/ u!on the recei!t of a negative re!ly fro' all !arties, the arbitrators shall declare the hearing closed unless the !arties have signified an intention to file briefs. Then the hearing shall be closed by the arbitrations after the recei!t of briefs andCor re!ly briefs. efinite ti'e li'it for the filing of such briefs 'ust be fi0ed by the arbitrators at the close of the hearing. Briefs 'ay filed by the !arties within fifteen days after the close of the oral hearings/ the re!ly briefs, if any, shall be filed within five days following such fifteen-day !eriod. Section 05. Reopening of hearing. - The hearing 'ay be reo!ened by the arbitrators on their own 'otion or u!on the re8uest of any !arty, u!on good cause, shown at any ti'e before the award is rendered. 1hen hearings are thus reo!ened the effective date for the closing of the hearings shall be the date of the closing of the reo!ened hearing. Section 08. Proceeding in lieu of hearing. - The !arties to a sub'ission or contract to arbitrate 'ay, by written agree'ent, sub'it their dis!ute to arbitration by other than oral hearing. The !arties 'ay sub'it an agreed state'ent of facts. They 'ay also sub'it their res!ective contentions to the duly a!!ointed arbitrators in writing/ this shall include a state'ent of facts, together with all docu'entary !roof. -arties 'ay also sub'it a written argu'ent. 9ach !arty shall !rovide all other !arties to the dis!ute with a co!y of all state'ents and docu'ents sub'itted to the arbitrators. 9ach !arty shall have an o!!ortunity to re!ly in writing to any other !artyAs state'ents and !roofs/ but if such !arty fails to do so within seven days after recei!t of such state'ents and !roofs, he shall be dee'ed to have waived his right to re!ly. ;!on the delivery to the arbitrators of all state'ents and docu'ents, together with any re!ly state'ents, the arbitrators shall declare the !roceedings in lieu of hearing closed. Section 09. Time for rendering a$ard. - ;nless the !arties shall have sti!ulated by written agree'ent the

ti'e within which the arbitrators 'ust render their award, the written award of the arbitrators shall be rendered within thirty days after the closing of the hearings or if the oral hearings shall have been waived, within thirty days after the arbitrators shall have declared such !roceedings in lieu of hearing closed. This !eriod 'ay be e0tended by 'utual consent of the !arties.
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Section 2!. !orm and contents of a$ard. - The award 'ust be 'ade in writing and signed and acknowledged by a 'a*ority of the arbitrators, if 'ore than one/ and by the sole arbitrator, if there is only one. 9ach !arty shall be furnished with a co!y of the award. The arbitrators in their award 'ay grant any re'edy or relief which they dee' *ust and e8uitable and within the sco!e of the agree'ent of the !arties, which shall include, but not be li'ited to, the s!ecific !erfor'ance of a contract. 2n the event that the !arties to an arbitration have, during the course of such arbitration, settled their dis!ute, they 'ay re8uest of the arbitrators that such settle'ent be e'bodied in an award which shall be signed by the arbitrators. 5o arbitrator shall act as a 'ediator in any !roceeding in which he is acting as arbitrator/ and all negotiations towards settle'ent of the dis!ute 'ust take !lace without the !resence of the arbitrators. The arbitrators shall have the !ower to decide only those 'atters which have been sub'itted to the'. The ter's of the award shall be confined to such dis!utes. The arbitrators shall have the !ower to assess in their award the e0!enses of any !arty against another !arty, when such assess'ent shall be dee'ed necessary. Section 20. !ees of arbitration. - The fees of the arbitrators shall be fifty !esos !er day unless the !arties agree otherwise in writing !rior to the arbitration. Section 22. rbitration deemed a special proceeding. - Arbitration under a contract or sub'ission shall be dee'ed a s!ecial !roceeding, of which the court s!ecified in the contract or sub'ission, or if none be s!ecified, the ,ourt of .irst 2nstance for the !rovince or city in which one of the !arties resides or is doing business, or in which the arbitration was held, shall have *urisdiction. Any a!!lication to the court, or a *udge thereof, hereunder shall be 'ade in 'anner !rovided for the 'aking and hearing of 'otions, e0ce!t as otherwise herein e0!ressly !rovided. Section 23. Confirmation of a$ard. - At any ti'e within one 'onth after the award is 'ade, any !arty to the controversy which was arbitrated 'ay a!!ly to the court having *urisdiction, as !rovided in section twentyeight, for an order confir'ing the award/ and thereu!on the court 'ust grant such order unless the award is vacated, 'odified or corrected, as !rescribed herein. 5otice of such 'otion 'ust be served u!on the adverse !arty or his attorney as !rescribed by law for the service of such notice u!on an attorney in action in the sa'e court. Section 2". %rounds for vacating a$ard. - 2n any one of the following cases, the court 'ust 'ake an order vacating the award u!on the !etition of any !arty to the controversy when such !arty !roves affir'atively that in the arbitration !roceedings: (a) The award was !rocured by corru!tion, fraud, or other undue 'eans/ or (b) That there was evident !artiality or corru!tion in the arbitrators or any of the'/ or (c) That the arbitrators were guilty of 'isconduct in refusing to !ost!one the hearing u!on sufficient cause shown, or in refusing to hear evidence !ertinent and 'aterial to the controversy/ that one or 'ore of the arbitrators was dis8ualified to act as such under section nine hereof, and wilfully refrained fro' disclosing such dis8ualifications or of any other 'isbehavior by which the rights of any !arty have been 'aterially !re*udiced/ or (d) That the arbitrators e0ceeded their !owers, or so i'!erfectly e0ecuted the', that a 'utual, final and definite award u!on the sub*ect 'atter sub'itted to the' was not 'ade. 1here an award is vacated, the court, in its discretion, 'ay direct a new hearing either before the sa'e arbitrators or before a new arbitrator or arbitrators to be chosen in the 'anner !rovided in the sub'ission or contract for the selection of the original arbitrator or arbitrators, and any !rovision li'iting the ti'e in which the arbitrators 'ay 'ake a decision shall be dee'ed a!!licable to the new arbitration and to co''ence fro' the date of the courtAs order.

1here the court vacates an award, costs, not e0ceeding fifty !esos and disburse'ents 'ay be awarded to the !revailing !arty and the !ay'ent thereof 'ay be enforced in like 'anner as the !ay'ent of costs u!on the 'otion in an action. Section 25. %rounds for modifying or correcting a$ard. - 2n any one of the following cases, the court 'ust 'ake an order 'odifying or correcting the award, u!on the a!!lication of any !arty to the controversy which was arbitrated: (a) 1here there was an evident 'iscalculation of figures, or an evident 'istake in the descri!tion of any !erson, thing or !ro!erty referred to in the award/ or (b) 1here the arbitrators have awarded u!on a 'atter not sub'itted to the', not affecting the 'erits of the decision u!on the 'atter sub'itted/ or (c) 1here the award is i'!erfect in a 'atter of for' not affecting the 'erits of the controversy, and if it had been a co''issionerAs re!ort, the defect could have been a'ended or disregarded by the court. The order 'ay 'odify and correct the award so as to effect the intent thereof and !ro'ote *ustice between the !arties. Section 24. &otion to vacate' modify or correct a$ard( $hen made. - 5otice of a 'otion to vacate, 'odify or correct the award 'ust be served u!on the adverse !arty or his counsel within thirty days after award is filed or delivered, as !rescribed by law for the service u!on an attorney in an action. Section 25. )udgment. - ;!on the granting of an order confir'ing, 'odifying or correcting an award, *udg'ent 'ay be entered in confor'ity therewith in the court wherein said a!!lication was filed. ,osts of the a!!lication and the !roceedings subse8uent thereto 'ay be awarded by the court in its discretion. 2f awarded, the a'ount thereof 'ust be included in the *udg'ent. Section 28. Papers to accompany motion to confirm' modify' correct' or vacate a$ard. - The !arty 'oving for an order confir'ing, 'odifying, correcting, or vacating an award, shall at the ti'e that such 'otion is filed with the court for the entry of *udg'ent thereon also file the following !a!ers with the ,lerk of ,ourt/ (a) The sub'ission, or contract to arbitrate/ the a!!oint'ent of the arbitrator or arbitrators/ and each written e0tension of the ti'e, if any, within which to 'ake the award. (b) A verified of the award. (c) 9ach notice, affidavit, or other !a!er used u!on the a!!lication to confir', 'odify, correct or vacate such award, and a co!y of each of the court u!on such a!!lication. The *udg'ent shall be docketed as if it were rendered in an action. The *udg'ent so entered shall have the sa'e force and effect in all res!ects, as, and be sub*ect to all the !rovisions relating to, a *udg'ent in an action/ and it 'ay be enforced as if it had been rendered in the court in which it is entered. Section 29. ppeals. - An a!!eal 'ay be taken fro' an order 'ade in a !roceeding under this Act, or fro' a *udg'ent entered u!on an award through certiorari !roceedings, but such a!!eals shall be li'ited to 8uestions of law. The !roceedings u!on such an a!!eal, including the *udg'ent thereon shall be governed by the "ules of ,ourt in so far as they are a!!licable. Section 3!. *eath of party. - 1here a !arty dies after 'aking a sub'ission or a contract to arbitrate as !rescribed in this Act, the !roceedings 'ay be begun or continued u!on the a!!lication of, or notice to, his e0ecutor or ad'inistrator, or te'!orary ad'inistrator of his estate. 2n any such case, the court 'ay issue an order e0tending the ti'e within which notice of a 'otion to confir', vacate, 'odify or correct an award 'ust be served. ;!on confir'ing an award, where a !arty has died since it was filed or delivered, the court 'ust enter *udg'ent in the na'e of the original !arty/ and the !roceedings thereu!on are the sa'e as where a !arty dies after a verdict. Section 30. Repealing clause. - The !rovisions of cha!ters one and two, Title G2E, of the ,ivil ,ode shall re'ain in force. All other laws and !arts of laws inconsistent with this Act are hereby re!ealed. 2f any !rovision of this Act shall be held invalid the re'ainder that shall not be affected thereby.

Section 32. +ffectivity. - This Act shall take effect si0 'onths after its a!!roval. A!!roved: June 3<, 3<>4