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ADR Notes

by: Paolo Ollero

INTRODUCTION
Historical Note
Judicial and legislative trends lean towards the utilization of alternative means and methods
implemented outside the court trial system

Civil Code of the Philippines


Took effect on August 30, 1950
Contains provisions on compromise
Art 2028 - A compromise is a contract whereby the parties, by making reciprocal
concessions, avoid a litigation or put an end to one already commenced
Art 2029 - the court shall endeavor to persuade the litigants in a civil case to agree upon
some fair compromise
Provisions on arbitration
Art 2042 - the same persons who may enter into a compromise may submit their
controversies to one or more arbitrators for decision
Art 2043 - the provisions of the preceding Chapter upon compromises shall be applicable to
arbitration
Art 2044 - any stipulation that the arbitrators's award or decision shall be final, is valid,
without prejudice to articles 2038, 2039, and 2040
RA
876
- The Arbitration law

Enacted on June 19, 1953


Did not revoke and instead supplemented the provisions of the New Civil Code on Arbitration
Resolution No. 71 - Adhering to the UN Convention on the Recognition and Enforcement
of Foreign Arbitral Awards of June 10, 1958
Enacted on May 10, 1965
Gives reciprocal recognition and allowed enforcement of international arbitration agreement
between the parties of different nationalities within a contracting state
Signatory
to the UN Commission on International Trade Law (New York Convention of

June 21, 1985 which adopted the Model Law on International Commercial Arbitration
Philippines committed to adhere to the Model Law

Judiciarys Action
Judiciarys response to the problems of delay in the delivery of justice:
Requirement of conducting pre-trial conferences
Utilization of the different modes of discovery
Strict proscription against forum-shopping
Encouraging the use of alternative dispute resolution through the Philippine Mediation Center
or through JDR

Legislative Action
Special domestic legislations prescribing arbitration, mediation, and conciliation to help
decongest court dockets:
PD 442 Labor Code of the Philippines
NLRC together with its Arbitration Brance has been dispensing arbitration service in cases
involving ULP, termination of employment, conditions of employment, damages arising from
ER-EE relationship, and other labor-related disputes.
RA 7160 Local Government Code of 1991
Requires conciliation, mediation or arbitration in the barangay level before the pangkat ng
tagapagkasundo of would-be adverse parties in specified civil and criminal cases before
resort to courts can be had

ADR Notes

by: Paolo Ollero

Executive Branchs Contribution


EO No. 1008 - Construction Industry Arbitration Law
Created the Construction Industry Arbitration Commission (CIAC) on February 4, 1985

Alternative Dispute Resolution Act of 2004


RA 9285 - An Act to Institutionalize the Use of an Alternative Dispute Resolution System
in the Philippines and to Establish the Office of Alternative Dispute Resolution, and for
Other Purposes
It is the general law applicable to all forms of ADR
Recognizes the international application of the ADR
Adopts the UNCITRAL Model Law
Paves the way for the Phil. to be a venue for international commercial arbitration
Promulgated on April 2, 2004 and became effective on April 28, 2004

Salient features of ADR


Korea Technologies Co., Ltd. v. Lerma:
1. The RTC must refer to arbitration in proper cases
Sec 24 - RTC does not have jurisdiction over disputes that are properly the subject of
arbitration
2. Foreign arbitral awards must be confirmed by the RTC
Not immediately enforceable or cannot be implemented immediately. There is a
requirement for the arbitral award to be recognized by a competent court for enforcement
Foreign arbitral awards when confirmed by the RTC are deemed not as judgment of a
foreign court but as a foreign arbitral award, and when confirmed, are engorced as final
and executory decisions of our courts of law
The
RTC has jurisdiction to review foreign arbitral awards
3.
Sec. 42 - RTC has the authority to set aside, reject, or vacate a foreign arbitral award on
grounds provided under Art. 34(2) of the UNCITRAL Model law
4. Grounds for judicial review different in domestic and foreign arbitral awards
For foreign or international arbitral awards
the grounds for setting aside, Art. 34(2) of the UNCITRAL Model Law
For final domestic awards
they may only be assailed before the RTC and vacated on the grounds provided under
Sec. 25 of RA 876 (Arbitration Law)
5. RTC decision of assailed foreign arbitral award appealable
Sec.46 of RA 9285 (ADR Act of 2004) - Appeal before the CA as a remedy of an
aggrieved party
Rule 45 of ROC - CA decision may further be appealed or reviewed before the SC

The Lawyers Role in ADR


Lawyers have to tow the line and contribute to the promotion of ADR
Lawyers have to assist the courts in encouraging the parties to avail of alternative means of
dispute resolution
Lawyers may also play the role of ADR provider or practitioner
Lawyers are expected to exert genuine and sincere efforts at bringing the parties to a settlement
within the scope of their authority
Lawyers are allowed to participate in the dispute resolution process, they have to perform their
functions in good faith, with no other motive except that of securing for the parties a speedy,
inexpensive and amicable settlement of their disputes and controversies

ADR Notes

by: Paolo Ollero

FUNDAMENTALS OF ADR
Alternative Dispute Resolution
ADR - a system, using means and methods allowed by law and approved by the parties, for the
purpose of resolving or facilitating the resolution of disputes and controversies between them, in
an expeditious and speedy manner, without resorting to court adjudication
ADR Act of 2004 - Any process or procedure used to resolve a dispute or controversy, other
than by adjudication of a presiding judge of a court or an officer of a government agency in
which a neutral 3rd party participates to assist in the resolution of issues
State policy:
1. Actively promote party autonomy in the resolution of dispute or the freedom of the parties to
make their own arrangements to resolve their disputes
2. Encourage and actively promote the use of ADR as an important means to achieve speedy
and impartial justice and declog the court dockets
3. Provide means for the use of ADR as an efficient tool and an alternative procedure for the
resolution of appropriate cases
Principles
of ADR:

1. Promotion of party autonomy and self-determination in the resolution of disputes


Parties are given the freedom to choose the form of ADR they desire to avail of
They are given the discretion to prescribe the procedure to govern ADR
Party autonomy extends to the choice of ADR providers or practitioners
2. Recognition of ADR as an efficient tool and an alternative procedure for the resolution of
cases
Does not do away with the court trial system
ADR merely provides the parties with an alternative means of settling their disputes in a
manner that is different.
3. Enlisting of private sector participation
Requires the participation of3rd parties who do not necessarily dispense public service

Objectives of ADR:
1. Speedy and impartial justice
ADR is a tool for the speedy, inexpensive and amicable settlement of dispute
2. Declogging of court dockets
Declogging is the ultimate objective of ADR

Features of ADR:
1. ADR is a means used to resolve a dispute or controversy
Objective is to resolve or facilitate the resolution of the dispute in a speedy, amicable, and
inexpensive manner
ADR should not be resorted to when the motive is to delay or suspend the proceedings
2. ADR utilizes means and methods allowed by law
3. ADR is contractual in nature
Contractual in nature because the parties are given the freedom to agree to resolve their
dispute
Any form of ADR that satisfies the essential requisites of a contract is allowed as long as it is
not contrary to law, morals, good customs, public order or public policy
Consent:
1. Pre-causal consent - when the parties to a contract stipulate that any dispute that will
arise from the contract shall be resolved by arbitration
2. Present-causal consent - when the parties to an existing controversy voluntarily submit
themselves either to arbitration or mediation
4. ADR avoids court trial

by: Paolo Ollero

ADR Notes
5. ADR usually involves the participation of a neutral 3rd party

Sources of ADR:
1. Domestic laws and rules which may either be general or special
1. General ADR laws:
1. Article III, Section 16 of the 1987 Constitution
2. Chapters 1 and 2, Title XIV, Book IV of the Civil Code
3. Arbitration Law
4. ADR Act of 2004 and its IRR
2. Special ADR laws:
1. Local Government Code of 1991
2. Labor Code and its IRR
3. Other similar laws applicable to specific classes of disputes
2. Acts of the Executive branch
1. Rules of ADR for Disputes Between National Government Agencies
2. EO 1008 creating the CIAC as well as the CIAC Revised Rules of Procedure Governing
Construction Arbitration
3. Decisions of the SC
4. International laws
1. UNCITRAL Model Law on International Commercial Arbitration
2. Convention on Recognition and Implementation of Foreign Arbitral Awards
5. General principles of law and equity

Forms of ADR:
1. Arbitration - Arrangement for taking and abiding by the judgment of selected persons in some
disputed manner, instead of carrying it to established tribunals of justice, and is intended to
avoid the formalities, the delay, the expense and vexation of ordinary litigation
A voluntary dispute resolution process in which one or more arbitrators, appointed in
accordance with the agreement of the parties, or rules promulgated pursuant to the ADR Act,
resolve a dispute by rendering an award
2. Mediation - Voluntary process in which a mediator, selected by the disputing parties, facilitates
communication and negotiation, and assists the parties in reaching a voluntary agreement
regarding a dispute
Arbitration
An arbitral tribunal or arbitrator evaluates evidence
and the merits of the case and renders an arbitral
award based on his appreciation thereof

Mediation
The parties to the controversy are convinced by a
mediator to settle their controversy through a
voluntary agreement executed by the parties
themselves called a mediated settlement agreement

3. Conciliation - Adjustment and settlement of a dispute in a friendly, unantagonistic manner


4. Neutral and early neutral evaluation - The parties and their lawyers are brought together to
present summaries of their cases and receive a non-binding assessment by an experienced
neutral person with expertise in the subject or in the substance of the dispute
5. Mini-trial - A structured dispute resolution method in which the merits of a case are argued
before a panel composed of senior decision makers, with or without the presence of a neutral
third person, after which the parties seek a negotiated settlement
6. Any combination of the foregoing - Any combination of the foregoing ADR forms, approved
by the parties, not contrary to law, morals, good customs, public order or public policy, may be
implemented
Med-arb - two-step dispute resolution process involving both mediation and arbitration
7. Any other ADR form (Innominate ADR Form) - Any arrangement agreed upon by the parties
that satisfies the requisites of ADR, complies with the essential requisites of a valid contract,

ADR Notes

by: Paolo Ollero

and is not contrary to law, morals, good customs, public order and public policy, is an
acceptable form of ADR

Classification of Forms of ADR:


1. As to the number of parties
1. Bilateral or bi-party - when only two contending parties are involved
2. Multilateral or multi-party - if there are more than 2 contending parties involved
2. As to the number of issues involved
1. Simple - when only a single issue is involved
2. Complex - if there are 2 or more issues involved
3. As to the extent of the conclusion
1. Complete - when all the issues are resolved
2. Partial - if only one or some but not all the issues are resolved
4. As to the role of evidence in the proceedings
1. Evidentiary or merit based - resolution of the dispute or controversy involved requires the
presentation of evidence and evaluation of the merits of the case as in the case of
arbitration
2. Non-evidentiary or non-merit based - the merits of the case is not indispensable in the
resolution of the dispute as in the case of mediation
5. As to the pendency of a court case
1. Case related - conducted in connection with or as a pre-requisite to trial as in the case of
court-annexed mediation or court-referred mediation
2. Independent - if conducted irrespective of any pending court case involving the issue
6. As to the applicable law
1. Domestic - If the parties... Are located in the Philippines
1. Place of business
2. Place of arbitration
3. Place of performance of the obligation involved or subject matter of the dispute
2. International - If the parties... Is outside of the Philippines
1. Place of business are in different states
2. Place of arbitration is outside the Philippines
3. Place where a substantial part of the obligation is to be performed or the place where
the subject matter of the dispute
3. Foreign - If it is conducted outside of the Philippines
7. As to the permanence of the ADR provider or practitioner
1. Ad hoc - if the existence of the ADR practitioner is only temporary for purpose of a
particular dispute or controversy
2. Institutional - ADR provider's existence is permanent in character and is not dependent on
any dispute or controversy

Components of ADR
1. Contending parties - who are involved in a dispute or controversy
2. Dispute or controversy - which is susceptible of being subject to ADR
3. Form of ADR - may either be:
1. Arbitration
2. Mediation
3. Conciliation
4. Early Neutral Evaluation
5. Mini-trial
6. Any combination of the foregoing
4. ADR provider or practitioner
1. Provider - institution or person accredited as mediator, conciliator, arbitrator, neutral party
evaluator, or any person exercising similar functions in any ADR systems

ADR Notes

by: Paolo Ollero

2. Practitioner - individual acting as mediator, conciliator, arbitrator or neutral evaluator who


is not necessarily accredited as an ADR provider

Subject matter of ADR


1. All adversarial disputes and controversies can be the subject matter of ADR except:
1. The civil status of persons
2. The validity of marriage or any ground for legal separation
There are matters which the State has a keen interest to protect
During the proceedings for the declaration of nullity of marriage or the dissolution of the
assets of the CPG or the APG, the following can be allowed:
1. Distribution of assets
2. Custody of minors
3. Support pendente lite
3. The jurisdiction of the courts
XPN: cases of jurisdiction by estoppel
4. Future legitime
5. Criminal liability
XPN: Civil liability arising from the offense and the separate civil liability for quasi-delict
based on the act or omission constituting the offense
6. In general, those which, by law, cannot be compromised
Sec 6 RA 9285 (Labor Code) - Labor disputes
Art 2035 of the Civil Code - no compromise upon the following questions shall be valid:
1. The civil status of persons
2. The validity of a marriage or a legal separation
3. Any ground for legal separation
4. Future support
5. The jurisdiction of courts
6. Future legitime

Seat and Venue of ADR:


Seat - jurisdiction under whose law the proceeding is being conducted
Venue - actual site where the arbitration is being conducted

Basic Concepts:
Concluding Acts or Agreements
1. Arbitration
1. Arbitrary award - partial or final decision by an arbitrator in resolving the issue in a
controversy
Mediation
2.
1. Mediated settlement agreement - a contract executed by the mediating parties, with the
assistance of their respective counsel, certified by the mediator, evidencing a successful
mediation
2. Compromise agreement - a contract whereby the parties, by making reciprocal
concessions, avoid litigation or put an end to one already existing
3. Court Annexed Mediation
1. Judgment based on compromise
4. Conciliation
1. Waiver or Quitclaim - a statement renouncing any right or claim involved in a controversy
by one party in favor of the other.

ADR Notes

by: Paolo Ollero

ADR Providers and Practitioners


1. Arbitrator - authorized to render a binding resolution of the dispute between the parties, and
as such, is bound to consider the merits of the controversy
1. The following are authorized to consider the merits of the controversy:
1. Arbitrator
2. Mediator-arbitrator
3. Neutral third person in a mini-trial
2. Mediator - precluded from discussing the merits of the controversy and cannot render a
binding assessment of the dispute
ADR
providers act in a quasi-judicial capacity.

As
such, their decisions are reviewable in a special civil action for certiorari under Rule 65

Sec. 1 Art. VIII Consti - xxx judicial power includes the duty of courts of justice to settle
actual controversies involving rights which are legally demand able and enforceable and to
determine whether or not there has been grave abuse of discretion amounting to lack or
excess of jurisdiction on the part of any branch or instrumentality of the government.
XPN: In domestic arbitration, if the arbitrator tribunal, in the exercise of its authority to
resolve or defer the resolution of the preliminary issue on its jurisdiction over the arbitration
all agreement, opts to defer the resolution of the jurisdictional issue until the final rendition
of the arbitrator award, none of the parties can seek judicial relief from the deferment.
A petition for review under Rule 43 is generally an available remedy for the review of
decisions and awards of ADR providers
Sec. 1 Rule 43 ROC - This rule shall apply to appeals from judgments or final orders of the
xxx voluntary arbitrators
ADR providers are civilly liable for their acts done in the performance of their duties unless
there is a clear showing of bad faith, malice or gross negligence under Chapter 9, Book 1 of
the Administrative Code

Preference for ADR


ADR > court trial system
There is a clear preference for the use of ADR over the court trial system
Art 2030 CCP - Every civil action or proceeding shall be suspended: (1) If willingness to discuss
a possible compromise is expressed by one or both parties; or (2) If it appears that one of the
parties, before the commencement of the action or proceeding, offered to discuss a possible
compromise but the other party refuses the offer
Kopped Inc. v. Makati Rotary Club - judicial proceedings disregarding arbitration agreements,
beyond the point when the parties should have been referred to arbitration, are null and void,
and the decisions rendered therein shall be reversed and set aside in order to allow the remand
of the case to the trial court and the referral of the dispute to arbitration in accordance with the
arbitration agreement.

Office for Alternative Dispute Resolution


In order to maximize the benefits of ADR
Attached to the Department of Justice; headed by an Executive Director
Principal objectives:
1. To promote, develop and expand the use of ADR in the private and public sectors through
information, education and communication
2. To assist the government to monitor, study and evaluate the use by the public and private
sectors of ADR, and recommend to Congress needful statutory changes to develop,
strengthen and improve ADR practices in accordance with world standards;
3. To act as appointing authority of mediators when the parties agree in writing that it shall be
empowered to do so
4. To compile and publish a list or roster of ADR providers/practitioners, and to compile a list
of roster of foreign or international ADR providers/practitioners

ADR Notes

by: Paolo Ollero

MEDIATION UNDER THE ADR


ACT OF 2004
Mediation in general
Mediation - a voluntary process in which a mediator, selected by the disputing parties, facilitates

communication and negotiation, and assists the parties in reaching a voluntary agreement
regarding a dispute
Excluded from ADR Act:
Court annexed mediation
Court referred mediation
JDR
Lumping tagapamayapa conciliation
Pangs at no tagapagkasundo conciliation
Mediator - person who conducts the mediation
Mediation parties - parties thereto
Non-party participants - parties who take part in the process

Classification of Mediation
1. As to form of ADR
1. Mediation is non-evidentiary or non-merit based - the mediator must refrain from giving
legal or technical advise or otherwise engaging in counseling advocacy, and must abstain
from expressing his personal opinion on the rights and duties of the parties and the merits
of any proposal made.
2. On the basis of the structure of the ADR provider
1. Institutional - when administered by, and conducted under the rules of a mediation
institution
An agreement to submit a dispute to mediation shall include the following:
To be bound by the internal mediation and administrative policies of such institution
To have such rules govern the mediation of the dispute and for the mediator, the parties
and their respective counsels and non-party participants to abide by such rules
2. Ad hoc - other than institutional

Place of Mediation
GR: in the absence of such agreement, the place convenient and appropriate to all parties
XPN: parties are given the freedom to agree on the place of mediation

Stages in Mediation
GR: mediation process consists of the following:
1. Opening statement of the mediator
2. Individual narration by the parties
3. Exchange by the parties
4. Summary of issues
5. Generalization and evaluation of options
6. Closure
XP: parties may choose the procedure that will govern their mediation

Advantages of Mediation
Sec. 8 of ADR Act of 2004:

ADR Notes

by: Paolo Ollero

1. Confidentiality in the mediation process


2. Prompt, economical and amicable resolution of disputes
3. The decision-making authority rests in the parties

Confidential and privileged nature of Mediation


communication (secs 9-12 of ADR Act of 2004)
ADR act maintains the confidentiality by declaring that certain information obtained though
mediation proceedings are privileged and confidentiality
These information are confidential and are not capable of being disclosed
Inadmissible in evidence
Confidential information - any information, relative to the subject of mediation or arbitration,
expressly intended by the source not to be disclosed, or obtained under circumstances that
would create a reasonable expectation on behalf of the source that the information shall not be
disclosed
Includes:
1. Communication, oral or written, made in a dispute resolution proceeding, including any
memorandum, note or work product of the neutral party or non-party participant
2. An oral or written statement made or which occurs during the mediation or for purposes
of considering, conducting, participating, initiating, continuing or reconvening mediation
or retaining a mediator
3. Pleadings, motions, manifestations, written statements and reports filed or submitted in
arbitration or for expert evaluation

Legal effects of confidential and privilege nature


1. A party, mediator or non-party participant may refuse to disclose and may prevent any other
person from disclosing confidential information
2. Confidential information shall not be subject to discovery and shall be inadmissible in any
adversarial proceeding
3. In an adversarial proceeding, the following persons may not be compelled to disclose
confidential information obtained during mediation:
1. Parties to the dispute
2. Mediator
1. Privilege of the Mediator - he is required to keep in utmost confidence all confidential
information obtained in the course of the mediation process
1. He may not make a report, assessment, etc... To court or agency except:
1. Where the mediation occurred or has terminated, or where a settlement was
reached
2. As permitted to be disclosed under Sec. 13 of the ADR act
3. Counsel of the parties
4. Non-party participant
5. Any person hired in connection with mediation
6. Any person who obtains or possesses confidential information by reason of his profession
4. Protection under the ADR act shall continue even if the mediator is found to have failed to act
impartially
5. A mediator may not be called to testify to provide information gathered in mediation

When the privilege does not attach


1. Those contained in an agreement evidenced by a record authenticated by all parties to the
agreement
1. Not confidential because the parties have implied manifestly their intention
2. Those available to the public or made during a session of mediation which is open, or is
required by law to be open, to the public

ADR Notes
3.
4.

5.

6.

7.

8.

by: Paolo Ollero

1. It is required to be open to the public; thus the parties do not intend it to be confidential
A threat or statement of a plan to inflict bodily injury or commit a crime of violence
1. The State has a greater interest to prevent violence
Communication intentionally used to plan, attempt to commit, or commit, a crime, or conceal an
on-going crime or criminal activity
1. The State has a greater interest to prevent the commission of the crime
Communication sought or offered to prove or disprove abuse, neglect, abandonment, or
exploitation in a proceeding in which a public agency is protecting the interest of an individual
protected by law
1. The violator cannot conceal the abuse he has committed by using the benefits of the ADR
act
Communication sought or offered to prove or disprove a claim or complaint of professional
misconduct or malpractice filed against a mediator in a proceeding
1. Mediator cannot be allowed to hide under the mantle of confidentiality for his own
misconduct or malpractice
Communication sought or offered to prove or disprove a claim or complain of professional
misconduct or malpractice filed against a party, non-party participant, or representative of a
party based on conduct occurring during mediation
Exception based on public policy
1. The privilege cannot be invoked after a hearing in camera
2. It substantially outweighs the interest in protecting confidentiality

Waiver of confidentiality
Protection of confidentiality is susceptible of waiver
Kinds of waiver:
1. Expressed - when it is contained in a record, or made orally during a proceeding by the
mediator and the mediation parties
2. Implied:
1. By failing to timely object to an objectionable question propounded during a trial, or to a
document being offered in evidence
2. By testifying or presenting a witness to testify on confidential and privileged information
3. Estoppel - when the non-party participant discloses the erstwhile confidential information
1. A person who discloses confidential information is barred from invoking the privilege as
to the remainder of the information necessary to a complete understanding of the
previously disclosed information
2. This principle is rooted on fair play and equity

The mediator
The role of the mediator is very crucial that his presence and competence must be ensured
A mediator who refuses to act as such may withdraw or may be compelled to withdraw from
mediation proceedings under any of the following circumstances:
1. If any of the parties requests the mediator to withdraw
2. The mediator does not have the qualifications, training and experience to enable him to
meet the reasonable expectations of the parties
3. The mediator's impartiality is in question
4. The continuation of the process will violate an ethical standard
5. The safety of any one of the parties will be jeopardized
6. The mediator is unable to provide effective service
7. In case of conflict of interest
8. Other instances provided for under the IRR
Unlike
an arbitrator, he cannot rule upon the merits of a claim and render an award there on

except in a mediation-arbitration proceeding


Duties and Functions
1. Prior to mediation

ADR Notes

by: Paolo Ollero

1. Competent
1. A mediator should maintain and continually upgrade his professional competence in
mediation skills;
2. Ensure that his qualifications, training and experience are known to and accepted
by the parties;
3. Serve only when his qualifications, training and experience enable him to meet the
reasonable expectations of the parties and not tO hold himself out or give the
impression that he has qualifications, training and experience that he does not have
4. Upon the request of a mediation party, disclose his qualifications to mediate a
dispute
2. Impartiality - before accepting a mediation, the mediator should:
1. Make an inquiry that is reasonable under the circumstances to determine whether
there are known facts that a reasonable individual would consider likely to affect his
impartiality
2. Disclose any such fact known or learned as soon as practicable
2. During the mediation
1. Confidentiality
2. On consent and self-determination
1. Exert reasonable efforts to ensure that each party understands the nature and
character of the mediation proceedings
2. Each party is free and able to make whatever choices he desires regarding his
participation in the mediation as well as his specific settlement options
3. On promotion of respect and control of abuse of process
1. Encourage mutual respect between the parties
Mediator's
costs and fees

In
an
ad
hoc mediation, the parties are free to make their own arrangements as to mediation

costs and fees


In institutional mediation, mediation costs shall include the administrative charges of the
mediation institution, mediator's fees and associated expenses

Mediated settlement agreements


The concluding document in a successful mediation
The parties, by motion, have to present the concluding agreement to the proper court for
approval and the rendition of judgment based there on
Once judicially approved, the concluding agreement may be enforced through a writ of
execution
The ft principles apply to to these concluding agreementsL
A settlement agreement following a successful mediation shall be prepared by the parties with
the assistance of their respective counsels, if any, and by the mediation
The parties and their respective counsels, if any, shall sign the agreement, and the mediator
shall certify that he has explained the contents thereof to the parties in a language known to
them
If the parties agree, the settlement agreement may be jointly deposited by the parties or
deposited by one party or parties with the Clerk of Court of the RTC
The deposit is required for the enforceability of the agreement
Unless deposited, the petition to enforce the settlement agreement is premature and can be
dismissed on the ground that a condition precedent for filing the claim has not been
complied with
Where there is a need to enforce the settlement agreement, a petition may be filed by any of
the parties in the same court, in which, the court shall summarily proceed to hear the petition,
in accordance with the Special ADR Rules
The parties may agree in the settlement agreement that the mediator shall become a sole
arbitrator for the dispute and shall treat the settlement agreement as an arbitrator award
which shall be subject to enforcement under RA 876

ADR Notes

by: Paolo Ollero

Role of counsel in mediation


A party may designate a lawyer or any other person to provide assistance in the mediation
Role:
1. Collaborate with the other lawyer in working together towards the common goal of helping
their clients resolve their differences to their mutual advantage
2. Encourage and assist the client to actively participate in positive discussions and cooperate
in crafting an agreement to resolve their dispute
3. Assist the client to comprehend and appreciate the mediation process and its benefits, as
well as the client's greater and personal responsibility for the success of mediation in
resolving the dispute
4. Confer and discuss with the client the mediation process and substance

ADR Notes

by: Paolo Ollero

ARBITRATION IN GENERAL
Concept of Arbitration
Arbitration - Voluntary dispute resolution process in which one or more arbitrators, appointed in
accordance with the agreement of the parties or rules promulgated pursuant to the ADR Act,
resolve a dispute by rendering an award.
A completed arbitral proceeding is concluded by an arbitral award constituting the partial or final
decision by an arbitrator in resolving the issue in a controversy.

Kinds of Arbitration
1. In General
1. Compulsory - the process of settlement of [labor] disputes by a government agency which
has the authority to investigate and to make an award which is binding on all parties, and
as a mode of arbitration where the parties are compelled to accept the resolution of their
dispute through arbitration by a 3rd party
Is not governed by the ADR Act and its IRR
2. Voluntary - involves the reference of a dispute to an impartial body, the members of which
are chosen by the parties themselves, which parties freely consent in advance to abide by
the arbitral award issued after the proceedings where both parties had the opportunity to be
heard
Based
on the seat of arbitration and the presence of foreign element
2.
1. Domestic - If it is not international in character. Or if:
1. 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.
2. International commercial or foreign - If any of the following instances occur:
1. The parties' place of business, which at the time of the conclusion of the arbitration
agreement, is in different states
2. The place of arbitration provided in the arbitration agreement and in which the parties
have their places of business, is outside the Philippines
3. The place where a substantial part of the obligation is to be performed or the place with
which the subject matter of the dispute is most closely connected, and in which the
parties have their places of business, is outside the Philippines
4. The parties have expressly agreed that the subject matter of the arbitration agreement
relates to more than one country
International
arbitration is at the same time commercial if:

It
covers
matters
arising from all relationships of a commercial nature, whether
1.
contractual or not, in which case the arbitration is called international commercial
arbitration
1. If seat is with the Philippines (even if the place of arbitration is outside), it is
domestic and the ADR Act and its IRR will apply
2. If seat is outside of the Philippines (even if the place of arbitration is in the
Philippines), it is foreign. The ADR Act and its IRR governs only when the foreign
arbitral award is applied for recognition

Policy on Arbitration
Korea Technologies Co,, Ltd. v. Lerma
Being an inexpensive, speedy and amicable method of settling disputes, arbitration is
encouraged by the SC
Brushing aside a contractual agreement calling for arbitration between the parties would be a
step backward

by: Paolo Ollero

ADR Notes

Koppel, Inc. v. Makati Rotary Club Foundation, Inc.,


Bona fide arbitration agreements are recognized as valid; and the laws, rules and regulations
do exist protecting and ensuring their enforcement as a matter of state policy.

Objectives of Arbitration
Provide a speedy and inexpensive method of settling disputes by allowing the parties to avoid
the formalities, delay, expense and aggravation which commonly accompany ordinary litigation,
especially litigation which goes through the hierarchy of courts

Arbitrator
Arbitrator - the person appointed to render an award, alone or with others, in a dispute that is
the subject of an arbitration agreement
Arbitrator
May use his own discretion in the performance of
his function

Arbiter
Who is bound by rules of law and equity in rendering
an award

Voluntary arbitrators - by the nature of their functions, act in a quasi-judicial capacity, such that
their decisions are within the scope of judicial review

Arbitration Agreement
Arbitration Agreement - agreement of the parties to submit to arbitration all or certain disputes

which have arisen or which may arise between them in respect of a defined legal relationship,
whether contractual or not.
It is a formal contract
Its validity depends on the validity of the contract being executed
Formal requisites:
1. Must be in writing
2. Must be subscribed by the parties or their representatives
It may be included in the container contract in which case, it is referred to as an arbitration
clause or a compromissoire, or may be constituted in separate contract
Ormoc Sugarcane Planters' Association, Inc. v. CA
An agreement to arbitrate is a contract
The relation of the parties is contractual
The rights and liabilities of the parties are controlled by the law of contracts
Cargill Philippines Inc v. San Fernando Regala Trading
A contract is required for arbitration to take place and to be binding
The provision to submit to arbitration any dispute arising therefrom and the relationship of the
parties is part of the contract and is itself a contract
Tuna Processing Inc v. Philippine Kingford Inc
When a party enters into a contract containing a foreign arbitration clause and in fact submits
itself to arbitration, it becomes bound by the contract, by the arbitration and by the results of
the arbitration

Two modes of submitting a dispute or controversy to


arbitration
1. An agreement to submit to arbitration - usually stipulated upon in a civil contract between
parties regarding some future disputes
2. A submission agreement - submit an existing matter or difference to arbitrators

Doctrine of Separability

ADR Notes

by: Paolo Ollero

An arbitration agreement is independent of the main contract


Even if the validity of the main contract is challenged, the arbitration agreement or clause
remains valid and enforceable
Gonzales v. Climax Mining Ltd
The invalidity of the main contract, also referred to as the 'container' contract, does not affect
the validity of the arbitration agreement.Irrespective of the fact that the main contract is
invalid, the arbitration clause/agreement still remains valid and enforceable
A party cannot rely on the contract and claim rights or obligations under it and at the same
time impugn its existence or validity
Koppel Inc v. Makati Rotary Club Foundation
Arbitration before the Panel of Arbitrators is proper only when there is a disagreement
between the parties as to some provisions of the contract between them, which needs
interpretation and the application of the particular knowledge and expertise possessed by
members of that Panel.
The validity of the contract cannot be the subject of arbitration proceedings
These questions are legal in nature and require the application and interpretation of laws
and jurisprudence which is necessarily a judicial function
Caragil Philippines Inc v. San Fernando Regala Trading
An arbitration agreement which forms part of the main contract shall not be regarded as
invalid or non-existent just because the main contract is invalid or did not come into existence,
since the arbitration agreement shall be treated as a separate agreement in dependent of the
main contract.

Due Process in Arbitral Proceedings


The principles of administrative due process equally apply to arbitral proceedings
In line with the principle that ADR providers act in a quasi-judicial capacity

Judicial Review and Court Intervention


Three types of judicial intervention in arbitration
1. Judicial assistance in arbitration
Allows the parties in arbitration to secure from the courts orders or processes that will aid
in the conduct of the arbitration
Includes:
1. Referral to arbitration
2. Issuance of interim measures of protection
3. Assistance in taking evidence
4. Issuance of confidentiality
5. Protective orders
Judicial
review of arbitral awards
2.
Involves passing upon, to the extent allowed and on grounds provided for by law, the
propriety of the arbitral award
3. Judicial review of court decisions in ADR related cases
Involves the remedies available from decisions or orders of the RTC and the CA
rendered in the first 2 types of judicial intervention
Applicable to domestic arbitral awards but not to international commercial arbitral awards
which cannot be the subject of petitions under Rule 43 or 65
In a domestic arbitration, if the arbitral tribunal, instead of rendering a preliminary ruling on its
jurisdiction,decides to defer such ruling until the rendition of the arbitral award, none of the
parties can seek judicial relief from the deferment.
The parties can await the rendition of the final arbitral award, and raise the jurisdictional
issues before the courts in a proceeding for setting aside or vacating the award.
Not every question of fact is reviewable by the courts:

ADR Notes

by: Paolo Ollero

1. Will not assist one or the other or even both parties in any effort to subvert or defeat the
objective for their private purpose
2. Will not review the factual findings of an arbitral tribunal upon the artful allegation that such
body had misapprehended facts
3. Will not pass upon issues which are, at the bottom, issues of fact, no matter how cleverly
disguised they might be as 'legal questions'
4. Will not permit the parties to relitigate before it the issues of facts previously presented and
argued before the Arbitral Tribunal, save only where a clear showing is made that, in
reaching its factual conclusions, the Arbitral Tribunal committed an error so egregious and
hurtful to one party as to constitute grave abuse of discretion resulting in lack or loss of
jurisdiction
Nature and extent of judicial review under the Special ADR Rules:
Review is not a matter of right, but of sound judicial discretion which is granted only for
serious and compelling reasons resulting in grave prejudice.
Grounds for the exercise of the Court's discretionary review of the CA's decision:
1. Failed to apply the applicable standard or test for judicial review prescribed in these
Special ADR Rules in arriving at its decision resulting in substantial prejudice to the
aggrieved party
2. Erred in upholding a final order or decision despite the lack of jurisdiction of the
court that rendered such final order or decision
3. Failed to apply any provision, principle, policy, or rule contained in these Special
ADR Rules resulting in substantial prejudice to the aggrieved party
4. Committed an error so egregious and harmful to a party as to amount to an
undeniable excess of jurisdiction
Judicial
Review
of an arbitration is more limited than judicial review of a trial

Courts
are
without
power to amend or overrule merely because of disagreement with

matters of law or facts determined by the arbitrators. They will not review findings of law
and facts contained in an award, and will not undertake to substitute their judgment for that
of the arbitrators, since any other rule would make an award the commencement, not the
end, of litigation. Error of law and fact, or an erroneous decision of matters submitted to the
judgment of the arbitrators, are insufficient to invalidate an award fairly and honestly made

Interim measures in arbitration


Transfield Philippines, Inc. v. Luzon Hydro Corporation:
As a fundamental point, the pendency of arbitral proceedings does not foreclose resort to the
courts for provisional reliefs. The Rules of the ICC, which governs the parties' arbitral dispute,
allows the application of a party to a judicial authority for interim or conservatory measures
Interim
Measures of Protection (Provisional Reliefs) - ancillary remedies intended for the

protection of the subject matter of the dispute. They are akin to the provisional remedies under
the 1997 Rules on Civil Procedure. They include but are not limited to:
Preliminary injunction
Appointment of receivers
Detention of property
Preservation of property
Inspection of property subject of the dispute

ADR Notes

by: Paolo Ollero

INTERNATIONAL COMMERCIAL
ARBITRATION UNDER THE ADR
ACT OF 2004 AND ITS
IMPLEMENTING RULES AND
REGULATIONS
International Commercial Arbitration
Arbitration is international if:
1. The parties' place of business which at the time of the conclusion of the arbitration
agreement, is in different states;
2. The place of arbitration provided in the arbitration agreement and in which the parties
have their places of business, is outside the Philippines
3. The place where a substantial part of the obligation is to be performed or the place with
which the subject matter of the dispute is most closely connected, and in which the parties
have their place of business, is outside of the Philippines
4. The parties have expressly agreed that the subject matter of the arbitration agreement
relates to more than one country
Arbitration is commercial if it covers matters arising from all relationships of a commercial
nature, whether contractual or not
Applicability of ADR Act and the IRR:
An international commercial arbitration with the Philippines as its seat even if place of
arbitration is outside the Philippines
On the other hand, an international commercial arbitration whose seat is outside the Ph is a
foreign arbitration even if the place of arbitration is in the Ph.

Coverage of IRR Provisions (Chapter 4) on ICA


Applicable only to international commercial arbitration conducted in accordance with Philippine
Law covering disputes that are not prohibited by Philippine law to be submitted for arbitration
The rules of procedure for international commercial arbitration provided under the ADR Act
or its IRR may also be applied for international commercial arbitration conducted outside
the Ph of they are adopted as the rules of procedure by the parties
Provisions
of the IRR on ICA are default rules, which means that they are applicable only in the

absence or in default of applicable provisions contained in:


1. An agreement in force between the Ph and other state or states
2. An agreement between the parties on the applicable rules

Rules of interpretations
1. Interpretations of the ADR Act
The court shall have due regard to the policy of the law favoring arbitration
2. Interpretation of the Model Law
There must be a uniformity in its interpretation
Concepts and principles under the Model Law should be understood in the light of their
international usage rather than their ordinary domestic or local usage
3. Interpretation of the IRR

ADR Notes

by: Paolo Ollero

The same policies on the interpretation of the ADR Act and Model Law
Party autonomy should be promoted
The freedom of the parties to determine certain issues including the right to authorize a 3rd
party to make that determination
A reference to an agreement of the parties includes any arbitration rules referred to in that
agreement
The rules applicable to claims are equally applicable to counterclaims, and those applicable
to defenses are equally applicable to defenses against counterclaims

Receipt of Written Communications in ICA


In line with the policy of party autonomy, the governing rules on the receipt of communications
in ICA are those provided for by the parties in their arbitration agreement. In default, comm is
received:
1. If it is delivered to the addressee personally or at his place of business, habitual residence
or mailing address; or
2. If there is none, if it is delivered by registered letter or any other means which provide a
record of the attempt to deliver it, to the last known place of business, habitual residence or
mailing address

Waiver of the right to object in ICA


Objections to non-compliance with the rules or any requirement under the arbitration agreement
must be raised without undue delay or within the time prescribed therefor, failing which, the right
to object is deemed waived
Estoppel in pais - happens when one, by his acts, representations or admissions, or by his own
silence when he ought to speak out, intentionally or through culpable negligence, induces
another to believe certain facts to exist and such other person relies and acts on such belief in a
manner that he will be prejudiced if the former is permitted to deny the existence of such facts

Confidentiality in ICA
Same in the case of mediation
Confidential and shall not be disclosed except:
1. With the consent of the parties
2. For the limited purpose of disclosing to the court relevant documents in cases where resort
to the court is allowed
The court may issue protective orders to prevent or prohibit the disclosure of documents or
information containing secret processes, developments, research and other information where it
is shown that the applicant shall be materially prejudiced by an unauthorized disclosure thereof.

Due process in ICA


IRR mandates that the parties shall be treated equally and shall be given a full opportunity to
present their sides
Due process is complied with if a party is given an opportunity to present his side of the dispute
even if he does not actually avail of such opportunity

Place or venue of ICA


The place or venue shall be determined by the parties
Default place of arbitration shall be in Metro Manila, unless the arbitral tribunal decides on a
different place of arbitration taking into consideration the circumstances of the case

Commencement of ICA proceedings


Date of commencement is determined by the parties

ADR Notes

by: Paolo Ollero

Default date of commencement of arbitration is the date on which a request for that dispute to
be referred to arbitration is received by the respondent

Language
The parties to an ICA shall determine the language or languages to be used during the arbitral
proceedings
The arbitral tribunal may order that any documentary evidence shall be accompanied by a
translation thereof in the language or languages to be used in the proceedings
In default, English shall be used

Applicable law in ICA


The parties in an international commercial arbitration can agree on the governing law that will be
applied to the resolution of their dispute

In default, the law determined by conflicts of law rules as determined by the arbitral tribunal to
be applicable taking into account the terms of the contract and the usages of the trade shall be
applied

Appointing authority in ICA


Appointing authority - named in the arbitration agreement as such, authorized to make the
default appointment of arbitrators or the sole arbitrator.
Functions:
1. Take the necessary measures to appoint an arbitrator in case any party, or the arbitrators
already appointed, or any 3rd party fails to perform any function necessary for the
appointment of the arbitrator
2. Decide on the challenge against an arbitrator if the arbitral tribunal rejects the challenge
3. Consider the qualifications of an arbitrator, the necessity of ensuring impartiality and
independence of the arbitrator, and the advisability of appointing an arbitrator who is of a
nationality different from those of the parties

Arbitrators and Arbitral tribunals in ICA


Parties in ICA are free to determine the number of their arbitrators and the procedure for their
appointment
Default number of arbitrators is 3
Default procedure for the appointment of arbitrators:
1. In an arbitration with 3 arbitrators, each party shall appoint one arbitrator, and both
appointed arbitrators shall appoint the 3rd arbitrator, failing which the appointment shall be
made by the appointing authority
2. In an arbitration with a sole arbitrator, the arbitrator shall be appointed, upon the request of
a party, by the appointing authority
The appointing authority shall consider the ff factors in the appointment of arbitrators:
1. Qualifications required by the agreement of the parties
2. Considerations as are likely to secure the appointment of an independent and impartial
arbitrator
3. In the case of sole or 3ed arbitrators, the advisability of appointing an arbitrator of a
nationality other than those of the parties.
Note: If any party is not satisfied with the appointment of any of the arbitrators, he may file
a petition in court challenging the appointment of the arbitrators

Grounds for challenge of an arbitrator in ICA


A person approached for possible appointment as arbitrator has the duty to disclose any
circumstance likely to raise doubts about his impartiality or independence

ADR Notes

by: Paolo Ollero

An arbitrator may be challenged only if circumstances exists that give rise to a justifiable doubt
as to his:
1. Impartiality or independence
2. Possession of the qualifications agreed upon by the parties

Procedure for the challenge in ICA


Procedure for the challenge against an arbitrator in ICA is that agreed upon by the parties
In default:
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 circumstance constituting the ground for the
challenge
2. If the challenge before the arbitral tribunal is not successful, the challenging party may
request the appointing authority within 30 days from notice of the decision rejecting the
challenge, to decide the challenge, which decision shall be immediately executory, and not
be subject to a motion for reconsideration or appeal

Procedure in case the arbitrator fails to act in ICA


If an arbitrator in an ICA becomes de jure or de factor unable to perform his functions or fails to
act without undue delay, his mandate terminates if:
1. He withdraws
2. Or the parties agree on the termination

Jurisdiction of Arbitral Tribunal in ICA


Jurisdiction:
Right to act or the power and authority to hear and determine a cause
Authority by virtue of which it can resolve disputes in am arbitration proceeding by
rendering an award
Jurisdiction over the subject matter is conferred by law
Jurisdiction also includes the power to determine the admissibility, relevance, materiality
and weigh of any evidence, and issuance of subpoena to compel the attendance of
witnesses and the production of documents
Without
jurisdiction:

1. Lack of jurisdiction
In determining the jurisdiction, the arbitration agreement or arbitration clause should be
treated as an independent and separate agreement from the container agreement, and,
hence, the invalidity of the latter does not automatically result in the nullity of the former
In general, jurisdiction over the subject matter being a matter of law, cannot be waived
and cannot be the subject of a compromise or the stipulation of the parties
The rule is different in a challenge against the jurisdiction of AT in an ICA
Challenge should be raised not later than the submission of the statement of
defense in the answer or in a motion to dismiss; otherwise, the objection is deemed
waived
2. In excess of jurisdiction
Where an AT which has jurisdiction in the first place but exceeds the scope of authority
Must be raised as soon as the excess of jurisdiction becomes apparent; otherwise, the
objection will be deemed waived unless the delay is justified
If
jurisdiction
is challenged

The
AT
may:

1. Consider the challenge as a preliminary question or a threshold issue and render a


ruling thereon before conducting the arbitration
An aggrieved party may elevate the ruling for review by the RTC within 30 days
from receipt of the ruling

ADR Notes

by: Paolo Ollero

2. Defer the resolution thereof until the rendition of the arbitral award and the resolution of
the jurisdictional issue shall form part thereof especially in instances when the
jurisdictional challenge does not appear to be indubitable
The order of deferment is not susceptible of judicial relief

Procedure for granting interim measures in ICA


1. AFTER THE AT has been constituted, any party may request for the grant of interim measures
from the AT. The request shall be in writing transmitted by reasonable means to the AT and the
adverse party
2. The relief may be granted in order to:
1. Prevent irreparable loss
2. Provide security for the performance of an obligation
3. Produce or preserve evidence
4. Compel any other appropriate act or omission
3. The grant may be conditioned upon:
1. The provision of security
2. Any act or omission specified in the order
4. The order shall be binding upon the parties and either party may apply with the courts for
assistance in implementing or enforcing it
5. A party who refuses to comply with the order for an interim measure shall be liable for damages
6. Before the constitution of the AT, the interim measure may be requested from the court

Legal representation in ICA


A party may be represented by a person of his choice even if a non-lawyer

Determination of rules and procedure in ICA


General rule: the parties in an ICA are free to determine the rules that will govern their arbitration
proceeding
In default:
1. Statement of claims
The claimant shall state the facts supporting his claim, the issues and relief or remedy
sought, and shall submit therewith or refer therein to relevant documents
Statement
of defenses
2.
Respondent shall state his defenses thereto and submit therewith or refer therein to
relevant documents
3. Default of the parties
The failure of the claimant or the respondent to communicate or failure to appear at the
hearing results in the default of the failing party
Claimant: termination of the proceeding
Respondent: proceeding with proceed without such failure being considered as an
admission of the claimant's allegation
4. Amendment of claims and defenses
The parties may amend or supplement their claims or defenses unless the arbitral
tribunal considers the amendment inappropriate
Hearings
5.
The AT shall determine whether
1. To hold an oral hearings only
Processes in taking evidence:
1. Court assistance in taking evidence
2. Subpoena
3. Expert
2. Oral arguments only
3. Or just require the submission of documents

ADR Notes

by: Paolo Ollero

6. Conclusion/closure
1. By an award or settlement
If more than 1 arbitrator, the decision shall be made by majority of the members
The award shall be made in writing, signed by the sole arbitrator, or a majority of the
arbitrators, and the date and place of arbitration are stated, and a copy delivered to
each party
AT's mandate extends:
1. To correct and interpret the award
2. To set aside an exclusive recourse against the arbitral award
3. When reserved, to the quantification of costs and the determination of the party
liable thereof, or the division thereof
2. Termination
1. The claimant withdraws his claim, unless the respondent objects thereto on the
basis of a legitimate interest in obtaining a final settlement of the dispute
2. The parties agree to terminate the proceeding
3. The arbitral tribunal finds that the continuation of the proceedings has become
unnecessary or impossible
4. If during the arbitral proceedings, the parties settle their dispute, the AT shall
terminate the proceeding

When arbitral award is final and executory


1. The rendition of the arbitral award
2. The hearing on the quantification of the costs and the determination of the party liable thereof,
or the division thereof between the parties, provided that a reservation for such hearing and
quantification has been made by the AT
3. The expiration of the periods for correction and interpretation of the award without any party or
the AT availing of the said remedies
4. If the remedies are availed of

Costs in ICA
Includes:
1. Fees of the AT
2. Travel and other expenses
3. Costs of expert advise
4. Travel and other expenses of witnesses
5. Costs for legal representation and assistance
6. Fees and expenses of appointing authority
In principle, the costs shall be borne by the unsuccessful party. However, the arbitral tribunal
may apportion the costs if reasonable under the circumstances of the case

Correction and interpretation of ICAA


The arbitral award in an ICA does not become executory until after the lapse of the period for its
amendment
Period - subject to any agreement of the parties or to the extended period that the AT may
grant
Award may be amended in any of the ff manners:
1. Agreement of the parties
Arbitration agreement may provide for the instances when an amendment of the arbitral
award is allowed
Parties are free to determine the rules that will govern their arbitral proceedings
2. Quantification of the costs and the determination of the party liable therefor, or the division
thereof between the parties
3. Correction of typographical and similar errors initiated by a party

ADR Notes

by: Paolo Ollero

A party may ask the AT for the correction of the award, within 30 days from receipt of the
award, and with notice to the other party, for any error in computation, clerical or
typographical error, or other errors of similar nature
An error is typographical or clerical in character, and therefore, correctible even after the
decision has become executory, if the error is occasioned by a mistake in copying or
typing, does not alter the substance of the decision and does not affect or prejudice
substantial rights
4. Correction of typographical error initiated by the AT
Within 30 days the AT may motu propio correct any typographical error
5. Interpretation of the award
Same with #3, the parties may agree to request the AT to give an interpretation of a
specific point or part of the award
6. Additional award
Within 30 days from receipt of the award, a party, with notice to the other party, may
request the AT to make an additional award as to claims presented in the arbitral
proceeding but omitted in the award
Only
the
AT may correct an ICAA. Courts can only set them aside, extend recognition to them, or

refuse to recognize them.

Setting aside an ICAA


Grounds:
1. Petitioner furnishes proof that there was:
1. Defect in the arbitration agreement
2. Violation of due process
3. Lack or excess of jurisdiction on the party of the AT
4. The arbitral agreement was violated
2. The court finds that:
1. The subject of the dispute is not capable of settlement under the laws of the Ph
2. The award is in conflict with public policy of the Ph
Venue
to set aside shall be with the RTC where:

The
arbitration proceedings took place
1.
2. The asset to be attached or levied upon, or the act to be enjoined is located
3. Any of the parties to the dispute resides or has his place of business
4. National Capital Judicial Region, at the option of the applicant
Petition
must be filed within 3 months from the date on which the party making that application

received the award, or from the date on which a request for correction, interpretation or
additional award has been disposed of by the AT

Recognition and enforcement of ICA and foreign


arbitral award
Recognition - means by which a Ph court gives legal acknowledgement to a foreign arbitral

award and confers upon it the capability to be enforced under Ph law through Ph legal
processes
Confirmation - judicial affirmation of a domestic arbitral award
Enforcement - the execution and implementation of the foreign arbitral award through Ph legal
processes
foreign arbitral award - it is one rendered in an arbitration whose seat is outside the Ph
Must go through recognition un order to be entitled to enforcement in the Ph
Same thing with Ph ICA, recognition instead of confirmation
Jurisdiction over these proceedings is vested on the RTC

ADR Notes

by: Paolo Ollero

Grounds for refusing recognition and procedure for


recognition of convention and as-in convention
awards
Conditions and requisites for recognition of foreign judgments:

1. Proof of the foreign judgment


2. Judgment must be on a civil or commercial matter
3. There must be no lack of jurisdiction, no want of notice, no collusion, no fraud, no clear
mistake of law or fact
4. The judgment must not contravene a sound and established public policy of the forum
5. The judgment must be res judicata in the state that rendered it
Grounds for refusing recognition:
1. Defect in the arbitration agreement
2. Violation of due process
3. Lack or excess of jurisdiction on the part of the AT
4. Violation of the arbitral agreement
5. Court finding that:
1. The subject of the dispute is not capable of settlement under the laws of the Ph
2. The award is in conflict with public policy of the Ph
Convention award - foreign arbitral award made in a state which is a party to the NYC
Non-convention award - a foreign arbitral award made in a state which is not a party to the
NYC
As-is convention award - one which is made in a state which is not a party to the NYC but
which, by reason of comity and reciprocity, may be recognized and enforced as if it is a
convention award

ADR Notes

by: Paolo Ollero

DOMESTIC ARBITRATION
Domestic arbitration in general
Arbitration is domestic if:
Conducted in the Philippines
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
Governed by:
1. Arbitration Law
2. The Model Law
3. The following provisions of the ADR Act on international commercial arbitration:
1. Sec 22
2. Sec 23
3. Sec 24
4. Sec 25
5. Sec 26
6. Sec 27
7. Sec 28
8. Sec 29
9. Sec 30
10. Sec 31
11. Sec 32
12. Sec 33
4. IRR of the ADR Act
1. Sec 32 - distinguished domestic arbitration from international arbitration and declared
that the Arbitration Law remains applicable to domestic arbitration
2. Sec 33 - Adopted certain provisions of the Model Law and the ADR Act on international
commercial arbitration to domestic arbitration
5. All other rules applicable to international commercial arbitration which may be given
suppletory application in the absence of specific applicable provisions

Disputes covered
Unlike ICA, DA covers both commercial and non-commercial disputes provided they are
susceptible of arbitration and do not fall within the exclusive original arbitral jurisdiction of quasijudicial agencies

Due process
The rule is that administrative agencies excercising quasi-judicial powers shall not be fettered by
the rigid technicalities of procedure, albeit they are, at all times required, to adhere to the basic
concepts of fair play
In administrative proceedings, 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 is satisfied if a person is granted and opportunity to seek reconsideration of an action
or ruling

Place of venue of arbitration


Determined by the parties
If no agreement, arbitration shall be conducted in Metro Manila

ADR Notes

by: Paolo Ollero

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
The parties to an tribunal shall determine the language or languages to be used during the
arbitral proceedings
The arbitral tribunal may order that any documentary evidence shall be accompanied by a
translation thereof in the language or languages to be used in the proceedings
In default, English or Filipino shall be used

Confidentiality
Privilege:
1. Arbitration proceedings
2. Records
3. Evidence
4. Arbitral award
5. Other confidential information
Exempt:
1. Consent of the parties
2. Limited purpose of disclosing to the court relevant documents where resort to the court is
allowed

Rules on Receipt of written communications


In line with the policy of party autonomy, the governing rules on the receipt of communications
in ICA are those provided for by the parties in their arbitration agreement. In default, comm is
received:
1. If it is delivered to the addressee personally or at his place of business, habitual residence
or mailing address; or
2. If there is none, if it is delivered by registered letter or any other means which provide a
record of the attempt to deliver it, to the last known place of business, habitual residence or
mailing address
3. The use of electronic mail is permitted as long as there is a record of the sending and
receipt of the communication at the recipient's mail box, and such electronic communication
shall be deemed to have been received on the same date of its transmittal

Waiver of objection
Objections to non-compliance with the rules or any requirement under the arbitration agreement
must be raised without undue delay or within the time prescribed therefor, failing which, the right
to object is deemed waived
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

Extent of court intervention


No court shall intervene except in the instances allowed by the Arbitration Law, ADR Act, and
Special ADR Rules.
As a rule, the arbitrator's award cannot be set aside for mere errors of judgment 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.
XPN:

ADR Notes

by: Paolo Ollero

1. Articles 2038-2040 of the Civil Code - compromise through mistake, fraud, intimidation,
or violence
2. Manifest disregard of law - must fly in the face of clearly established legal precedent
Requirements:
The applicable legal principle is clearly defined and not subject to reasonable
debate
The arbitrators refused to heed that legal principle
Interim measures may be requested or enforced through the courts
As a fundamental point, the pendency of arbitral proceedings does not foreclose resort to
the courts for provisional reliefs. The Rules of the ICC, which governs the parties' arbitral
dispute, allows the application of a party to a judicial authority for interim or conservatory
measures. The Arbitration Law recognizes the rights of any party to petition the court to
take measures to safeguard and/or conserve any matter which is the subject of the dispute
in arbitration. In addition, the ADR Act allows the filing 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, in the exercise of its authority to resolve or defer the resolution of the
preliminary issue of its jurisdiction over the arbitration agreement, decides to defer the resolution
thereof until the rendition of the arbitral award, none of the parties can seek judicial relief from
the deferment. The parties can await the rendition of the final arbitral award, and raise the
jurisdictional issue before the courts in a proceeding for setting aside or vacating the award

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 Ph, shall not be
authorized to appear as counsel in any Ph court or quasi-judicial body
A party desiring to be represented by counsel shall notify the other party or parties of such
intention at least 5 days prior to the hearing

Arbitration agreement
It is a contract
It must satisfy the essential requisites of a valid contract:
1. Consent
1. Pre-causal consent - when parties agree in a contract to settle by arbitration a
controversy that will arise between them
2. Present causal consent - when the controversy already exists between the parties at
the time of the submission to arbitration
2. Object
3. Price
It
must be in writing and subscribed by the party sought to be charged, or by his lawful agent
When the court action is multi-party, and one or more but not all of the parties are parties to an
arbitration agreement, the court shall refer those who are parties to the arbitration agreement to
arbitration, and proceed with the court action as to those who are not bound by such arbitration
agreement
The court may issue an order directing the inclusion in the arbitration of those parties who are
not bound by the arbitration agreement but who agree to such inclusion provided that those
originally bound by it do not object to their inclusion.

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

ADR Notes

by: Paolo Ollero

Commencement of arbitral proceedings


In general, determined by the prior arbitration agreement between the parties
Specific rules for the commencement of DA:
1. Institutional arbitration where no prior agreement - commenced in accordance with the
arbitration rules of the institutional arbitrator
2. Ad hoc arbitration where there is prior arbitration agreement - commenced upon the
delivery by the claimant to the respondent of a demand for arbitration
3. No prior arbitration agreement - it is initiated by one party through a demand upon the other
to submit their dispute to arbitration, and arbitration is deemed commenced upon the
agreement by the other party to submit the dispute to arbitration
Reckoned from the date when the other party agreed to submit the dispute to
arbitration

Number of arbitrators
GR: party autonomy
In the absence thereof: there shall be 3 arbitrators

Procedure for the appointment of arbitrators


GR: party autonomy
XPN: an agreement or clause giving a party the power to choose more arbitrators than the other
is void
In the absence thereof, default rules:
1. In an arbitration with 3 arbitrators, each party shall appoint 1 arbitrator, and the 2 arbitrators
thus appointed shall appoint the 3rd arbitrator within 30 days from receipt of a request to do
so
2. Failing to appoint, the appointment shall be made by the appointing authority
Ad hoc - in the absence of an agreement, the National President of the IBP or his duly
authorized representative
Institutional - the ADR provider
3. Request for appointment with proof of delivery to the adverse party shall be filed with the
appointing authority
The adverse party may file his objections within 7 days from receipt of the Request for
Appointment
4. Acceptance shall include statements from the arbitrator that he:
1. Agrees to comply with the applicable law and rules of arbitration
2. Accepts the applicable arbitrator's fees
3. Agrees to devote as much time and attention to the arbitration
5. Arbitrators shall take an oath to faithfully and fully hear and examine the matters in
controversy to the best of their ability and understanding

Grounds for challenging the appointment of an


arbitrator
1. Circumstances exist that give rise to a justifiable doubt as to his impartiality or independence
2. He does not possess the qualifications
1. Legal age
2. In full enjoyment of his civil rights
3. Know how to read and write
3. He is disqualified to act as an arbitrator
1. Related by blood or marriage within the 6th degree to either party to the controversy
2. Has financial, fiduciary or other interest in the controversy or cause to be decided, or in
the result of the proceeding

ADR Notes

by: Paolo Ollero

3. Has personal bias which might prejudice the right of any party
4. Been selected to act as champion or to advocate a party's cause
4. 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 party appointing an arbitrator may challenge that arbitrator for reasons which the party
became aware of after the appointment was 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

Procedure for the challenge


GR: party autonomy
In absence thereof, default rules:
1. Challenging party shall send a written statement of the reasons for the challenge to the
arbitral tribunal within 15 days from knowledge
The challenge shall be in writing and shall state specific facts that provide basis for the
ground for the challenge
Within
15 days from the receipt of the challenge, the arbitrator may either accept or reject
2.
the challenge
1. If he accepts, he shall voluntarily withdraw
2. If he rejects, he shall communicate within the same period his rejection of the challenge
and state the facts and arguments relied upon
3. Notwithstanding the rejection of the challenge by the challenged arbitrator, within the same
period, the parties may agree to the challenged and replace the challenged arbitrator
4. If challenged arbitrator rejects, and the parties do not agree to the challenge, the arbitral
tribunal shall decide the challenge within 30 days from receipt of the notice of the decision
5. If the challenge is not successful, the challenging party may request the appointing
authority to decide the challenge
6. If the appointing authority shall fail to act on the challenge within 30 days, the requesting
party may, with notice to the parties, renew the request with the court
7. The arbitration proceeding shall continue notwithstanding the challenge. However, once the
challenge is elevated to the court, the arbitration proceeding shall be suspended
8. The decision by any of the above shall be immediately executory and is not subject to
appeal or motion for reconsideration
9. The appointment of a substitute shall be made pursuant to the procedure applicable to the
appointment of the arbitrator being replaced

Procedure in case the arbitrator fails to act


Voluntary
If an arbitrator becomes de jure or de facto unable to perform his functions or fails to act
without undue delay, his mandate terminates if:
1. He withdraws
2. The parties agree on the termination
The withdrawal will not carry with it the implication that the arbitrator involved accepted the
existence or veracity of the ground for his termination

Arbitral proceedings
GR: party autonomy
In absence thereof, default procedure:
1. Statement of claims is required to be submitted within the time agreed upon by the
parties. It includes:
1. Supporting facts

ADR Notes

2.
3.
4.

5.

6.

by: Paolo Ollero

2. Points at issue
3. Relief sought
Statement of defenses
Amendment of claims or defenses. The parties may amend or supplement their claims or
defenses unless the arbitral tribunal considers the amendment inappropriate or dilatory
Hearing and written proceedings
1. Ad hoc - the procedure determined by the arbitrator with the agreement of the parties
shall be followed
2. Institutional - rules of procedure of the institutional arbitrator shall be followed which has
been impliedly accepted by the parties on account of the designation of the institutional
arbitral tribunal
Pre-hearing conference - in order to expedite the arbitral proceedings, the parties are
required to undergo a pre-hearing conference within 30 days from the appointment of the
arbitrator or the constitution of an arbitral tribunal. They shall discuss the ff:
1. Venue of the arbitration
2. Manner of recording the proceedings
3. Periods of communication of the statement of claim, answer, and answer to
counterclaims, and the form and contents thereof
4. Manner of offering evidence
5. Delivery of certain types of communication
6. Issuance of subpoena by the arbitral tribunal
7. Manner of receiving expert testimony
8. Possibility of applying for interim relief
9. Possibility of site or ocular inspection
10. Fees of arbitral tribunal
11. Other relevant matters
Threshold issue - issues on the jurisdiction of the arbitral tribunal over the claims and
counterclaims, or the arbitrability of the claims or counter-claims, shall be resolved by the
arbitral tribunal as threshold issues if the parties so request
Hearing dates and postponements
Default of a party
If the claimant fails to communicate his statement of claims, the AT shall terminate
the proceedings
If the respondent fails to communicate his statement of defenses, the AT shall
continue the proceedings without treating such failure in itself as an admission of
the claimant's allegation
If the party fails to appear at the hearing or produce evidence, he shall be deemed
to have waived them
Decision on interlocutory matters
Consolidation or concurrent hearings
Closure of hearings - after the hearing is closed, no further motion may be allowed
except for post-hearing briefs and reply briefs, unless the AT, motu proprio or upon the
request of a party, allows the re-opening of the hearing
Rules on evidence
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
Documentary evidence - each party shall provide the other with copies of the statements
or documents submitted to the arbitral tribunal
Subpoena - AT has the power to issue subpoena dues tecum and ad testificandum
Expert - AT may appoint one or more experts to report to it on specific issues. However, in
DA, it is provided that, upon the agreement of the parties, the finding of the expert
engaged by the AT shall be binding upon them and the AT.
Court assistance in taking evidence - subpoena, interim or provisional reliefs, protective
orders, orders that may affect 3rd parties, examination of debtors
Decision

ADR Notes

by: Paolo Ollero

7. Form and content of the award


Shall be in writing
Signed by the arbitrator
State the date of the rendition and the place of arbitration
If more than one arbitrator, it shall be signed by majority of the AT
The arbitral award shall state the reason upon which it is based
It need not be acknowledged or sworn to under oath or affirmed unless required by the
parties
8. Settlement - proceedings will be terminated by the execution of an arbitral award on agreed
terms, consent award or award based on compromise which the parties may request to be
recorded.
9. Termination of proceedings:
1. Withdrawal of the claim unless the respondent objects for the purpose of prosecuting
his counterclaims
2. The agreement of the parties to terminate the proceedings
3. The finding by the AT that the continuation of the proceeding has become unnecessary
or impossible
4. Non-payment of the required deposits in full

Interim measures
PartIes may seek from the AT interim measures including:
1. Preliminary injunction
2. Appointment of receivers
3. Detention of property and preservation
4. Inspection of property
Parties
may also secure assistance from the courts for the implementation of interim measures

Procedure:

1. After the AT has been constituted, any party may request for the grant of interim measures
from the arbitrator against the adverse party
1. It may be granted in order to prevent irreparable loss, to provide security for the
performance of an obligation, to produce or preserve evidence, or to compel any other
appropriate act or omission
2. Grant may be conditioned upon the provision of security or any act or omission
specified in the order
3. The order granting or denying the request shall be binding upon the parties
4. A party who refuses to comply with the order shall be liable for damages resulting from
non-compliance
2. Before the constitution of the AT, the interim measures may be requested from the court in
accordance with the Special Rules of Court on ADR

Multi-party arbitration
The AT is empowered to implement procedural modifications as it shall deem appropriate to
address the complexities of the multi-party arbitration

Fees and costs


GR: party autonomy - must be in writing prior to the arbitration
In absence thereof, default rule
Shall be determined in accordance with the applicable internal rules of the regular
arbitration institution under whose rules the arbitration is conducted
If Ad hoc, the schedule of fees approved by the IBP or approved by the OADR

Correction, interpretation and additional award

ADR Notes

by: Paolo Ollero

When the AT renders its final award, it loses jurisdiction over the dispute and the parties to the
arbitration
No motion for reconsideration, correction and interpretation of award or additional award
shall be filed with the AT
However, Sec 17 of Arbitration Law specifically allows the continuation of the arbitral
proceeding motu proprio by the arbitrators or upon motion of a partym upon good cause
shown
Amendment or modification by the arbitral tribunal of arbitral award is allowed in the ff cases
(as XPN to GR):
1. Under the arbitration agreement
2. Failure to resolve an issue
3. Quantification of costs
4. Correction of typographical and similar errors initiated by a party
A party may ask the AT for the correction of the award within 30 days from receipt of the
award
5. Correction of typo error initiated by the AT
AT may motu proprio correct typographical error within 30 days from date of award
6. Interpretation of the award
Within the same period, the parties may agree to request the AT to give an interpretation
on a specific point or party of the award
7. Additional award
Within 30 days from receipt of the award, a party may request the AT to make an
additional award as to claims presented in the arbitral proceeding but omitted in the
award
Grounds
when a court may amend or modify a domestic arbitral award:

Where
there is an evident miscalculation of figures, or an evident mistake in the description
1.
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 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

Exclusive grounds for setting aside an arbitral award


1. The arbitral award was procured by corruption, fraud or other undue means
2. There was evident partiality or corruption in the arbitral tribunal or any of its members
3. The arbitral 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

The court before which a petition for setting aside a domestic arbitral award is filed has the
prerogative and option to suspend the court proceedings in the ff instances:
1. To give the arbitral tribunal an opportunity to resume the arbitral proceedings or take such
action which will eliminate the grounds for setting aside an award
2. For the purpose of making a new or revised final and definite award or to direct a new
hearing before the same or new arbitral tribunal
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

ADR Notes

by: Paolo Ollero

court to suspend the vacation or setting aside proceedings to give the arbitral tribunal an
opportunity to cure or remedy the award

Confirmation of domestic arbitral award


The judicial affirmation of a domestic arbitral award is made by filing a motion for confirmation
and securing an entry of judgment from the court
The confirmation of an arbitral award carries with it by necessary implication the execution
thereof
Jurisdiction is lodged with the RTC where:
1. The arbitration proceedings were conducted
2. The asset to be attached or levied or the act to be enjoined is located
3. Any of the parties resides or has his place of business
4. National Capital Judicial Region, at the option of the applicant

ADR Notes

by: Paolo Ollero

OTHER FORMS OF ADR


Rules in other forms
In consonance with the principle of party autonomy and self determination, the provisions of the
IRR on other forms of ADR apply only in the absence of an agreement between the parties

If the ADF form is more akin to mediation than arbitration, the specific provisions of the IRR on
mediation shall have suppletory application to the extent that they are not in conflict with the
agreement of the parties
If the ADF form is more akin to arbitration than mediation, the specific provisions of the IRR on
arbitration shall have suppletory application to the extent that they are not in conflict with the
agreement of the parties

Other forms
1. Early neutral evaluation
Parties and their lawyers are brought together to present summaries of their cases and to
receive a non-binding assessment by an experienced neutral person, with expertise in the
subject matter or substance of the dispute
Availed of early in the pre-trial phase
Self-determinantion; parties shall govern the conduct of the ENE
In absence of any agreement, provisions of the IRR on ENE shall apply
Akin to mediation
Default appointing authority is the National President of the IBP or his representative
Parties are required to submit and exchange position papers containing the issues and
statements of the relevant facts and append thereto supporting documents and affidavits of
witnesses
No ex parte communication
Neutral 3rd person shall issue a written evaluation or assessment within 30 days from the
conclusion of the evaluation process. His opinion shall not be binding
Neutral
evaluation
2.
3. Mini-trial
Structured dispute resolution method in which the merits of a case are argued before a
panel composed of senior decision-makers, with or without the presence of a neutral 3rd
person, before which the parties seek a negotiated settlement
Panel shall be appointed by the parties equally
The parties shall submit a brief summary of the dispute, identifying the specific factual or
legal issues, after which they shall appear before the mini-trial panel members before
whom their lawyers shall present their respective cases starting with the claimant. After the
mini-trial, the panel members, with the assistance of the neutral 3rd person, shall negotiate
a settlement of the dispute
GR: party autonomy
In absence thereof, the provisions of the IRR on mini-trial shall be applicable
Akin to mediation
Unless, the panel of decision-makers, or the neutral 3rd person is given by the parties
the authority to render a binding decision, in which case, the proceedings becomes
akin to domestic arbitration
Conducted either as:
1. A separate dispute resolution process
2. As a continuation of mediation, neutral or early neutral evaluation or any other ADR
process
4. Mediation-arbitration
A two step dispute resolution process involving mediation and then followed by arbitration
GR: party autonomy

ADR Notes

by: Paolo Ollero

In the absence thereof, its proceedings shall be governed by the rules on mediation first,
and thereafter, by the rules on domestic arbitration.
5. Combination thereof
6. Any other ADR form

ADR Notes

by: Paolo Ollero

SPECIAL RULES OF COURT ON


ALTERNATIVE DISPUTE
RESOLUTION: GENERAL
PROVISIONS
Special rules of court
ADR Act of 2004, the Model Law, and the IRR of ADR Act, deferred to the SC's authority to
enact special rules of procedure applicable in courts for specific areas and aspects of ADR
Not the actual source
Under
the Constitution, the SC has the exclusive power and authority to promulgate rules of

practice and procedure subject to the condition that they shall not diminish, increase or modify
substantive rights
Applicable only to proceedings before Philippine courts and any quasi-judicial agency which
may adopt the rules in a suppletory character
Summary
in nature

XPN:
1. Those that pertain to the confirmation or recognition and enforcement of arbitral awards
2. The deposit of mediated settlement agreements which is not a judicial proceeding

Subject matter and coverage


Relief on the issue of existence, validity and enforceability of the arbitration agreement
Referral to alternative dispute resolution
Interim measures of protection
Appointment of arbitrator
Challenge to appointment of arbitrator
Termination of mandate of arbitrator
Assistance in taking evidence
Confirmation, correction or vacation of award in domestic arbitration
Recognition and enforcement or setting aside of an award in international commercial
arbitration
10. Recognition and enforcement of foreign arbitral award
11. Confidentiality/protective orders
12. Deposit and enforcement of mediated settlement agreements
1.
2.
3.
4.
5.
6.
7.
8.
9.

Special proceedings
Except for #12 (above), the subject matter of SRC procedures are special proceedings
Jurisdiction over the persons of the parties is acquired by the court upon proof of compliance
with the jurisdictional requirements

Summary proceedings
Proceedings under Special ADR are generally summary and are conducted by way of
submission of verified pleadings
The ff pleadings are not allowed and shall not be accepted for filing:
1. Motion to dismiss
2. Motion for bill of particular

ADR Notes

by: Paolo Ollero

3. Motion for new trial or for reopening of trial


4. Petition for relief from judgment
5. Motion for extension
XPN: in cases where an ex parte temporary restraining order of protection has been
issued
Rejoinder
to reply
6.
7. Motion to declare a party in default
8. Any other pleading specifically disallowed under any provision of the Special ADR

Non-summary proceedings
1. Confirmation, correction or vacation of award in domestic arbitration
2. Recognition and enforcement of an award in an international commercial arbitration
3. Recognition and enforcement of a foreign arbitral award

Jurisdiction
Lodged by law with the RTC

Venue
1. The place where any of the parties resides or has his place of business
2. The place where the asset or act involved is located
3. The national capital judicial region, at the option of the petitioner

Fundamental principles adopted by the Special ADR


1. Self determination, party autonomy, and promotion of ADR as a means of resolving disputes
Objective of ADR of achieving a speedy and efficient resolution of disputes, impartial
justice, curbing a litigious culture and declogging court dockets
2. Preference for arbitration
Not enough to deny referral:
1. Referral tends to oust a court of its jurisdiction
2. The court is in a better position to resolve the dispute subject of the arbitration
3. Referral would result in multiplicity of suits
4. Arbitration proceeding has not commenced
5. Place of arbitration is in a foreign country
6. One or more of the issues are legal and one or more arbitrators are not lawyers
7. One or more of the arbitrators are not Philippine nationals
8. One or more of the arbitrators are alleged not to possess the required qualification
under the arbitration agreement or law
Doctrine
of separability/severability
3.
Arbitration clause shall be treated as an agreement independent of the contract of which it
forms part
4. Freedom to agree on the procedure to be followed in the conduct of arbitral proceedings
5. The "competence-competent" principle
The arbitral tribunal should be accorded the first opportunity or compentence to rule on the
issue of whether or not it has the competence or jurisdiction to decide a dispute submitted
to it for decision
No
arbitrator
shall act as mediator in any proceeding in which he is acting as arbitrator
6.
However, where the parties to mediation have agreed in the written settlement agreement
that the mediator shall become the sole arbitrator for the dispute or that the settlement
agreement shall become an arbitral award, the med-arbitrator shall issue the settlement
agreement as an arbitral award

ADR Notes

by: Paolo Ollero

SPECIAL RULES OF COURT ON


ALTERNATIVE DISPUTE
RESOLUTION: THE SPECIFIC
COURT RELIEFS
Judicial relief involving the issues of existence, validity
and enforceability of the arbitration agreement
Judicial relief - petition for judicial determination of existence, validity and/or enforceability of an
arbitration agreement.

Issues involved:

1. Existence - whether or not there is an arbitration agreement


2. Validity - whether or not it complies with all the essential requisites of a valid contract
3. Enforceability - whether or not enforceability is in accordance with Art 1403 of NCC
Parties:
1. Nominal parties - one who is named as party in an action although the real interest is with
some other party
The arbitrator or the AT
They are expected to actively pursue the claim or oppose it
Not mandatory for them to file pleadings
2. Real party-in-interest - party who stands to be benefited or injured by the judgment or the
party entitled to the avails of the suit
3. Indispensable party - party who has such an interest in the controversy or subject matter
that a final adjudication cannot be made, in his absence, without injuring or affecting that
interest
4. Necessary party - one who is not indispensable but who ought to be joined as a party if
complete relief is to be accorded as to those who are already parties, or for a complete
determination or settlement of the claim subject of the action
Applicable only to arbitration proceedings conducted in the Philippines
Summary in nature
Sec 6 of the Arbitration Law - the court's authority only to the determination of whether or not
there is an agreement in writing providing for arbitration
The court shall issue an order summarily directing the parties to proceed with the arbitration
in accordance with the terms thereof
The duty of the court is not to resolve the merits of the parties' claims but only to determine
if they should proceed to arbitration or not
Available in two instances:
1. Judicial relief before commencement of arbitration
This applies when:
1. The arbitration proceeding has not yet commenced
2. There is between the parties a dispute regarding the existence, validity or
enforceability of the arbitration agreement
Procedure:
1. Initiatory pleading is a petition filed with the RTC where any of the party resides or
has his principal place of business. It must show that:
1. Facts:
1. Legal capacity to sue and be sued
2. Nature and substance of the dispute

ADR Notes

by: Paolo Ollero

3. Grounds relied upon by petitioner


4. Relief sought
2. Verified and must be accompanied by a certification of non-forum shopping
3. Attached authentic copy of arbitration agreement
2. Respondent must file his comment or opposition within 15 days
3. The court must exercise judicial restraint and defer to the competence or
jurisdiction of the AT to rule on its competence and jurisdiction
4. Relief against court action
1. If upholding the existence - The prima facie determination of validity or
enforceability shall not be subject to a MR, appeal, or certiorari, but shall be
without prejudice to the right of any party to raise the same issues before the AT
2. AA does not exist - aggrieved party may file a MR, petition, or certiorari
2. Judicial relief after arbitration commences
The proper issue is whether or not AT has jurisdiction over the arbitral proceedings
This applies when:
1. The arbitration proceeding has already commenced, the AT has been constituted
and has rendered a preliminary ruling on its jurisdiction
2. A party desires to challenge the AT's ruling on the issue of jurisdiction
Procedure:
1. The aggrieved party may file a petition within 30 days from receipt of the notice of a
ruling with the RTC where:
1. The arbitration took place
2. Any of the petitioners or respondents has his principal place of business or
resident, at the option of the petitioner
2. Petition shall state:
1. Legal capacity to sue and be sued
2. Nature and substance of the dispute
3. Grounds relied upon
4. Relief sought
3. Respondent must file his comment or opposition within 15 days
4. The court shall render a judgment on the basis of the pleadings within 30 days from
the time the petition is submitted for resolution
5. Relief against court action
1. Affirming jurisdiction - aggrieved party may file a MR of the order of the court,
which shall not be subject to an appeal
2. If the AT, instead of rendering a preliminary ruling on its jurisdiction, decides to
defer such ruling until the rendition of the arbitral award, none of the parties can
seek judicial relief from the deferment. The parties can await the rendition and
raise the same issue before the court in a proceeding for setting aside or
vacating the award

Referral to ADR
Pertains to the referral of a pending court action to arbitration rather than any other form of ADR
Applies when:
1. There is already a pending court action
2. There is either a pre-action arbitration agreement or a present-action arbitration agreement
Pre-action - executed prior to the filing of an action
The request for referral to arbitration may be made by any one of the parties not
later than the pre-trial conference
A request made after the pre-trial conference must be with the agreement of both
parties
Present-action - executed after the filing of the action
The parties may request the referral to arbitration at any time during the
proceedings
One
or
both parties desire to undergo arbitration
3.

ADR Notes

by: Paolo Ollero

Procedure:
1. Pleading that initiates is a request or a motion because the rules on referral to ADR
contemplate the existence of a pending court action already initiated
Must contain an authentic copy of the arbitration agreement and must be served upon
the respondent and be set for hearing
Comment
or opposition must be filed within 15 days from service of the request
2.
Must show:
There is no agreement to refer the dispute to arbitration
The agreement is null and void
The subject matter of the dispute is not capable of settlement or resolution by
arbitration
3. The court may:
1. Grant the motion if it finds prima facie that there is a valid an enforceable arbitral
agreement
2. Deny it if the court finds otherwise
4. Relief against court action
1. If grant - immediately executory and shall not be subject to a MR, appeal, or certiorari
2. If denied - not subject to appeal but may be the subject of MR and petition for certiorari
Courts cannot deny based on the ff:
1. Not all of the disputes subject of the civil action may be referred to arbitration
2. Not all of the parties to the civil action are bound by the arbitration agreement and referral
to arbitration would result in multiplicity of suits
3. The issues raised in the civil action could be speedily and efficiently resolved in its entirety
by the court rather than in an arbitration
4. Referral to arbitration does not appear to be the most prudent action
5. The stay of the action would prejudice the rights of the parties to the civil action who are not
bound by the arbitration agreement
Koppel inc v. Makati Rotary Club Foundation - legal effects of the non-application of the
arbitration clause to a case:
1. The judicial proceedings conducted beyond the point when the dispute should have been
referred to arbitration are rendered invalid
2. The decisions, including those of the appellate courts, must be vacated and set aside
3. The case must be remanded to the court a quo to be suspended at said point
4. The petitioner and respondent must be referred to arbitration

Interim measures of protection


Applies when:
1. Either:
1. Before the commencement of arbitration
2. After the commencement of the arbitration but prior to the constitution of the AT
3. After the AT constitution but it has no power to act or is unable to act effectively
2. Where a party desires to secure interim measures of protection
Preference for Arbitration
Any court order granting or denying is without prejudice to the subsequent grant,
modification, amendment, revision or revocation thereof by the AT
IMP issued by the AT shall be deemed to have ipso jure modified, amended, revised or
revoked an interim measure of protection issued by the court
Inconsistencies of IMP from court and IMP from AT shall be immediately referred by the
court to the AT which shall have the authority to decide such question
Court shall defer action on any pending petition for an IMP filed by a party to an arbitration
agreement arising from or in connection with a dispute thereunder upon being informed that
an AT has been constituted
Court shall assist in the enforcement of an IMP issued by the AT which the latter is unable
to effectively enforece
Forms
of interim measures:

ADR Notes

by: Paolo Ollero

1. Preliminary injunction directed against the party to arbitration


2. Preliminary attachment against property or garnishment of funds in the custody of a bank or
3rd person
3. Appointment of a receiver
4. Detention, preservation, delivery or inspection of property
5. Assistance in the enforcement of an interim measure of protection granted by the AT which
it cannot enforce effectively
Procedure:
1. IMP is initiated by filing a petition with the RTC where:
1. Any of the parties has his principal place of business or residence
2. Any of the acts sought to be enjoined are being performed or threatened to be
performed
3. The real property subject of the arbitration is situated, at the option of the petitioner
2. Prior notice must be served upon the adverse party unless the petitioner alleged in the
petition an application for an ex parte temporary protective measure to the effect that
there is an urgent need to either:
1. Preserve property
2. Prevent the respondent from disposing of, or concealing, the property
3. Prevent the relief prayed for from becoming illusory because of prior notice, and the
court finds that the reasons given are meritorious
3. The adverse party must comment or oppose within 15 days from service of the petition
4. The court shall resolve the petition within 30 days from:
1. Submission of the opposition
2. Upon the lapse of the period to file the same
3. From the termination of the hearing that may be set if there is need for clarification or
further argumentation
5. If the basis for the petition for IMP is the non-constitution of the AT, the court, upon being
informed of the subsequent constitution of the AT, shall defer action on the petition unless it
is established that the AT has no power to act on any such IMP or is unable to act thereon
effectively
6. Relief against court action
An order may be the subject of a MR, appeal or certiorari
If party is given opportunity to be heard - the order of the court granting the petition shall
be immediately executory
Ex parte grant - not immediately executory
XPN: Temporary protective measure
TPM - an injunctive relief with the purpose to preserve the property subject
matter of the arbitration, prevent the disposition or concealment thereof, or
prevent the relief prayed for from becoming moot and academic, during the
period that the court is resolving the application for the IMP
Applied for ex parte
Immediately executory and has a lifetime of only 20 days unless extended for
another 20 days
May be issued in the ff conditions:
1. There is an urgent need to preserve property, prevent the respondent
from disposing of, or concealing the property, or prevent the relief prayed
for from illusory because of prior notice
2. The petitioner shall post a bond to answer for any damage that the
respondent may suffer as a result thereof
3. It shall be valid only for 20 days from the service on the party required to
comply therewith, unless extended but not for more than 20 days
4. During the 20 day period and any extension thereof, the court shall
determine the propriety of issuing the principal interim protective
measure requested
5. It can be lifted by the respondent by posting an appropriate counter-bond
as determined by the court

by: Paolo Ollero

ADR Notes
Temporary protective measure

Temporary restraining order

Susceptible of extension for not more than 20 days

Non-extendible and becomes functus oficio after the


lapse of 20 days from the service

Bond is required

Does not require the posting of a bond

May be lifted through the posting of a counter-bond

Cannot be lifted through a counter-bond

Appointment of Arbitrators
When it applies:
1. There is a failure to appoint an arbitrator under the following circumstances:
1. Where any of the parties in an institutional arbitration failed or refused to appoint an
arbitrator, or the parties have failed to reach an agreement on the sole arbitrator, or
when the two designated arbitrators have failed to reach an agreement on the 3rd or
presiding arbitrator and the institution under whose rules arbitration is to be conducted
fails or is unable to perform its duty as appointing authority within a reasonable time
from receipt of the request for appointment
2. Where the arbitration is an ad hoc and the parties failed to provide a method for
appointing or replacing an arbitrator, and the IBP failed or refused to act within such
period as may be allowed under the pertinent rules of the IBP
3. Where the parties agreed that their dispute shall be resolved by the 3 arbitrators but no
method of appointing those arbitrators has been agreed upon
2. And any party or the appointed arbitrators request the court to act as the appointing
authority and appoint the arbitrator or 3rd arbitrator as the case may be.
Procedure:
1. Petition for the appointment of an arbitrator filed with the RTC where:
1. The principal place of business of any of the parties is located
2. If any of the parties are individuals, where those individuals reside
3. In the National Capital Judicial Region, at the option of the petitioner
2. Petition shall state:
1. The general nature of the dispute
2. A description of the procedure for the appointment of the arbitrators, if there is any, and
the agreement containing such procedure
3. Number of arbitrators agreed upon or the absence of such an agreement
4. The special qualifications of the arbitrators
5. The fact that the appointing authority, without justifiable cause, has failed or refused to
act as such within the time prescribed
6. Petitioner is not the cause of the delay or in the failure of appointment
7. Contain an authentic copy of the arbitration agreement
3. The aggrieved party may file a comment or opposition within 15 days from the service of
the petition
4. The court may require each party to submit a list of not less than 3 proposed arbitrators
together with their curriculum vitae
5. Relief against court action
1. Appointing an arbitrator - shall be immediately executory and shall not be the subject
of MR, petition, or certiorari
2. Denying appointment - MR, appeal, or certiorari

Challenge to appointment of arbitrators


When applicable:
1. The challenge to the appointment of an arbitrator before the AT is not successful, and the
appointing authority fails or refuses to act on the challenge within such period of time as

by: Paolo Ollero

ADR Notes

may be allowed under the applicable rule or, in the absence thereof, within 30 days from
receipt of the request
2. The aggrieved party wants to secure judicial action on the challenge
Procedure:
1. Petition shall be filed with the RTC where:
1. Where the principal place of business of any of the parties is located
2. If any of the parties are individuals, where those individuals reside
3. In the National Capital Judicial Region, at the option of the petitioner
2. Petition shall state:
1. Name of the arbitrator challenged and his address
2. Grounds for the challenge
3. Challenge has been expressly or impliedly rejected
4. Appointing authority failed or refused to act on the challenge
3. The challenged arbitrator may file a comment or opposition within 15 days from service of
the petition
4. The court has the following options:
1. Grant the petition for removing the challenged arbitrator if it finds merit
2. Dismiss the petition if there is no merit
3. Allow the challenged arbitrator to withdraw
4. Accept the challenge and remove the arbitrator if:
1. The party or parties who named and appointed the challenged arbitrator agree to
the challenge and withdraw the appointment
2. The other arbitrators in the AT agree to the removal of the challenged arbitrator
3. The challenged arbitrator hails or refuses to submit his comment on the petition or
the brief of legal arguments as directed by the court
Decision
shall be immediately executory and shall not bee subject to a MR, appeal, or
5.
certiorari

Termination of mandate of arbitrator


Grounds:
1. An arbitrator becomes de jure or de facto unable to perform his functions or for other
reasons fail to act without undue delay
2. The arbitrator, upon request of any party, fails or refuses to withdraw from his office
3. The appointing authority fails or refuses to decide on the termination of the mandate of the
arbitrator within such period of time as may be allowed under the applicable rule
4. Any party seeks judicial action in terminating the mandate of the arbitrator
Procedure:
1. Petition shall be filed with the RTC where:
1. The principal place of business of any of the party is located
2. Where any of the parties who are individuals, reside
3. In the National Capital Judicial Region, at the option of the petitioner
2. Petition shall state:
1. Name of the arbitrator
2. The ground for termination
3. The fact that one or all of the parties had requested the arbitrator to withdraw but he
failed or refused to accede
4. The fact that one or all the parties requested the appointing authority to act on the
request but is unable or has failed to act within 30 days from the request
Termination of the mandate of an arbitrator

Challenge to an arbitrator

The arbitrator who has been validly appointed has


Arbitrator is sought to be removed on the ground of
become incapable of performing his functions or has partiality or non-compliance with the qualifications
become unable to do so
required of him

ADR Notes

by: Paolo Ollero

Assistance in taking evidence


This relief is available whether the arbitration is domestic or foreign
Grounds:
1. There is a pending arbitration, whether domestic or foreign
2. A party desires to present evidence or the arbitral tribunal ordered the taking of evidence,
necessitating court assistance
3. The evidence is sought from a person, including a representative of a corporation,
association, partnership or other entity, other than a party to the arbitration or its officers,
found in the Ph.
When
arbitration has not yet commenced or the AT has not yet been constituted, any person

who desires to perpetuate his testimony or that of another may avail of the rule on dispositions
before action or pending appeal
Examples of court assistance:
1. On testimonial evidence
1. To comply with a subpoena ad testificandum
2. To appear as witness before an officer for the taking of his deposition upon oral
examination or written interrogatories
2. On documentary evidence
1. To comply with a subpoena duces tecum
2. To allow the examination and copying of documents
3. On real evidence
1. To allow the physical examination of the condition of persons, or the inspection of things
or premises and, when appropriate, to allow the recording or documentation of the
conditions of persons, things or premises
Procedure:
1. The petition shall be filed with the RTC where:
1. Arbitration proceedings are taking place
2. The witness resides or may be found
3. Evidence may be found, at the option of the petitioner
2. Petition must state:
1. There is an on-going arbitration proceeding even if such proceeding cannot continue
due to some legal impediments
2. The arbitral tribunal ordered the taking of evidence or a party desires to present
evidence to the AT
3. The materiality or relevance of the evidence to be taken
4. The names and addresses of the intended witnesses, place where the evidence may be
found, or the place where the acts required are to be done
3. The aggrieved party may file a comment or opposition within 15 days from the service of
petition
4. Relief against court action
1. Grant - Immediately executory and shall not subject to a MR, appeal, or certiorari
2. Denied - may file MR, appeal, or certiorari

Confidentiality/Protective Order
Different from Interim Measure of Protection
Protective order - judicial enforcement of the confidential nature of information disclosed or
obtained during an ADR proceeding
When it applies:
1. ADR proceeding is pending
2. A party, counsel or witness disclosed information or was otherwise compelled to disclose
information
3. The disclosure was made. Under circumstances that would create a reasonable
expectation, on behalf of the source, that the information shall be kept confidential

ADR Notes

by: Paolo Ollero

4. The source of the information or the party who made the disclosure has the right to prevent
such information from being disclosed
5. The source of the information or the party who made the disclosure has not given his
express consent to any disclosure
6. The applicant would be materially prejudiced by an unauthorized disclosure of the
information obtained, or to be obtained, during the ADR proceeding
Procedure:
1. Petition:
1. If no pending court proceeding, the initiatory pleading shall be a petition to be filed with
the RTC of the place where the order may be implemented
2. If there is a pending court proceeding, the applicant should file with the court where the
proceeding is pending a motion to enjoin the disclosure or to suppress the confidential
information
Where the situation is urgent, a timely objection must be raised by a party in the
case who will be aggrieved by the disclosure before the question is answered
2. The petition must state:
1. Information sought to be protected was obtained, or would be obtained, during an ADR
proceeding
2. The applicant would be materially prejudiced by the disclosure of that information
3. The person or persons who are being asked to divulge the confidential information
participated in the ADR proceedings
4. The time, date and place when the ADR proceedings took place
3. The comment or opposition must be filed within 15 days from service of the petition or
motion
4. Court action:
1. Meritorious - issue an order enjoining the persons involved from divulging confidential
information
Court shall impose proper sanctions to any person who disobeys the order
5. Relief against court action
1. Grant - immediately executory and may not be enjoined while the order is being
questioned before the appellate courts
2. Refusal - may be the subject of a MR or appeal but not certiorari

Grounds for Confirmation, recognition, enforcement,


correction, vacation or setting aside of arbitral award
1. An arbitral award has been rendered either in a:
1. domestic arbitration
2. Philippine ICA
3. Foreign arbitration resulting in a convention award or non-convention award but with comity
and reciprocity
2. A party seeks to:
1. Confirm, correct or vacate the domestic arbitration award
2. Recognize and enforce, or set aside the Philippine ICA award
3. Recognize and enforce the foreign convention award or foreign as-in convention award

Confirmation, correction or vacation of DOMESTIC


ARBITRAL AWARD
Judicial affirmation of DAA if done through confirmation and not recognition
Recognition - grant of legal effect by Ph courts to an arbitral award with foreign elements
DAA
carries with it the presumption that it was rendered in due course of the arbitration

Causes of action:
1. Confirmation

ADR Notes

by: Paolo Ollero

Petition can be filed at any time after the lapse of 30 days from receipt by the petitioner
of the DAA
Petition shall be granted unless there exist grounds to vacate the DAA
2. Correction or modification
Petition must be filed not later than 30 days from receipt of the DAA
Grounds:
1. Where there was 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 arbitrators have omitted to resolve an issue submitted to them for
resolution
4. Where the award is imperfect in a matter of form not affecting the merits of the
controversy, and if it had been a commissioner's report, the defect could have been
amended or disregarded by the court
3. Vacation
Petition must be filed not later than 30 days from receipt of the DAA
Grounds:
1. The arbitral award was procured through corruption, fraud or other undue means
2. There was evident partiality or corruption in the arbitral tribunal or any of its
members
3. The arbitral 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 them
was not made
6. The arbitration agreement did not exist, or is invalid for any ground for the
revocation of a contract or is otherwise unenforceable
7. A party to the arbitration is a minor or a person judicially declared to be incompetent
Combination of causes of action - must be pleaded in the same proceeding
Initiatory relief - that which is pleaded in the initiatory petition
Relief-in-opposition - prayed for in order to oppose the initiatory relief
Supplementary relief - prayer for correction of an arbitral award in support of a petition for
confirmation
Alternative relief - prayer for correction as an alternative to a petition to vacate in
opposition to a petition for confirmation
The following combinations are available:
1. Confirmation/vacation
2. Confirmation/correction
The correction of the arbitral award implies the confirmation of the corrected or
modified award
3. Vacation/correction
Procedure:
1. Initiatory pleading is a pleading filed with the RTC having jurisdiction over the place:
1. In which one of the parties is doing business
2. Where any of the parties resides
3. Where the arbitration proceeding was conducted
2. Petition must state:
1. Addresses of the parties and any change thereof
2. The jurisdictional issues raised by a party during arbitration proceedings
3. The grounds relied upon
4. The date of receipt of the arbitral award and the circumstances under which it was
received by the petitioner
5. Authentic copy of the arbitral award

ADR Notes

3.
4.
5.
6.

7.

8.

by: Paolo Ollero

6. Certification against forum shopping


7. Authentic copy of the appointment of the AT
The court shall cause notice to the respondent
Respondent has 15 days from receipt to file a comment, opposition, or a petition-inopposition
Petitioner may file a reply within 15 days from receipt
Hearing may be summary or regular
1. If the court finds the petition to have issues of fact, it shall require the parties to submit
affidavits of their witnesses and reply affidavits.
2. If the court finds that, on the basis of the petition, there is a need to conduct an oral
hearing, the court shall set the case for hearing
Court action
1. Confirm - carries with it by necessary implication the execution thereof. Carries with it
the presumption that is has been issued in due course of the arbitration
2. Vacate - the court shall refer the case back to the AT that rendered the award for the
purpose of making a new or revised award
Relief against court action - may be the subject of a MR, appeal, or certiorari. Arbitration
Law limits the appeal to questions of law only

Recognition, enforcement or setting aside of


PHILIPPINE ICA AWARDS
ICA - seat in the Ph
Foreign ICA - seat is other than Ph
Exclusive causes of action:
1. Recognition and enforcement of an PHICAA
Initiated by a petition filed at any time from receipt of the award
If a timely petition to set aside has first been filed, the oppositor must file therein and in
opposition thereto the petition for recognition and enforcement thereof within the period
for filing an opposition
2. Setting aside a PHICAA
Petition must be filed within 3 months from the time petitioners received the PHICAA
The dismissal of a petition to set aside for being time-barred shall not automatically result
in the approval of he petition for recognition or enforcement of the same
Judicial correction or modification is not available
Grounds:
1. The party making the application furnishes proof that:
1. A party to the arbitration agreement was under some incapacity, or the said agreement
is not valid under the law to which the parties have subjected it, or failing any indication
thereof, under Ph law
2. The party making the application to set aside or resist enforcement was not given
proper notice of the appointment of an arbitrator
3. The award deals with a dispute not contemplated by or not falling within the terms of the
submission to arbitration or contains decisions on matters beyond the scope of the
admission to arbitration
4. The composition of the arbitral tribunal or the arbitral procedure was not in accordance
with the agreement of the parties unless such agreement was in conflict with the
provisions of Ph law
Or
the
court finds that:
2.
1. The subject matter of the dispute is not capable of settlement by arbitration under the
laws of the Ph
2. The recognition or enforcement of the PHICAA would be contrary to public policy
Procedural:
1. Initiatory pleading is a petition filed with the RTC where:
1. The arbitration proceedings were conducted

ADR Notes

by: Paolo Ollero

Any of the assets to be attached or levied upon is located


The act to be enjoined will be or is being performed
Any of the parties to the arbitration resides or has his place of business
National Capital Judicial Region, at the option of the petitioner
If petition is to set aside, it shall be verified and shall state:
1. The addresses of record of the parties
2. The arbitration agreement or submission exists
3. The names of the arbitrators and proof of their appointment
4. An arbitral award was issued and the date when the petitioner received it
5. Relief sought
6. Grounds relied upon
If the petition is sufficient in for and substance, the court shall cause a notice deliver it to the
respondent directing him to file an opposition within 15 days from receipt
Petitioner may file a reply within 15 days from receipt of opposition
The court may conduct a hearing through:
1. Summary in nature:
1. The Submission of briefs of legal arguments if the issue is mainly one of law
2. The submission of affidavits of witnesses, reply affidavits and documents in support
thereof if there are issues of fact relating to the grounds relied upon for the petition
2. If the court finds a need to conduct an oral hearing, it shall set the case for hearing
In a petition to set aside, the court, upon motion of a party, may suspend the proceedings
in order to give the AT an opportunity to resume the arbitral proceedings or take such other
action as will eliminate the grounds for setting aside
The court shall either set aside or enforce the arbitral award and may award costs
including attorney's fees
Relief from court action
1. Setting aside or dismissing the petition - may be the subject of a MR, appeal BUT NOT
certiorari
2. Suspending the proceeding to set aside - susceptible of MR or petition for certiorari
2.
3.
4.
5.
6.

2.
3.
4.

5.

6.
7.

Recognition and enforcement of FOREIGN ARBITRAL


AWARDS
Foreign arbitral award - one that is made in a country other than the Ph
International commercial arbitral awards rendered in IC seat outside the Ph
Governed
by the 1958 New York Convention and Rule 13 of the Special ADR Rules

Does
not
apply
to non-convention awards

Principle of equality among states


Ph courts may recognize them or refuse to recognize them
Rule
13 is applicable only to:

Convention
award - foreign arbitral award made in a state which is a party to the New York

Convention

As-is convention award - one which, although rendered in a state which is not a party to
the NYC, may be recognized and enforced by the Ph by reason of comity and reciprocity as
if ta convention award
Exclusive grounds for setting aside an ICA award:
1. The party making the application to refuse recognition furnishes proof that:
1. A party to the arbitration agreement was under some incapacity, or the said agreement
is not valid under the law to which the parties have subjected it or, failing any indication
thereof, under the law of the country where the award was made
2. The party making the application was not given proper notice of the appointment of an
arbitrator or of the arbitral proceedings or was otherwise unable to present his case
3. The award deals with a dispute not contemplated by or not falling within the terms of the
submission to arbitration

ADR Notes

by: Paolo Ollero

4. The composition of the AT or the arbitral procedure was not in accordance with the
agreement of the parties
5. The award has not yet become binding on the parties or has been set aside or
suspended by a court of the country in which the award was made
2. Or the court finds that:
1. The subject matter of the dispute is not capable of settlement by arbitration under Ph
law
2. The recognition or enforcement of the award would be contrary to public policy
Procedure:
1. Initiated by a petition filed any time after receipt of the foreign arbitral award at the RTC
where:
1. The assets to be attached or levied upon are located
2. The act to be enjoined is being performed
3. The principal place of business in the Ph of any of the parties is located
4. If the parties is an individual, where any of those individuals reside
5. In the National Capital Judicial Region, at the option of the petitioner
2. Petition shall state:
1. The address of the parties
2. In the absence of any indication in the award, the country where the arbitral award was
rendered and whether such country is a signatory to the NYC
3. The relief sought
4. Authentic copy of the arbitration agreement
5. Authentic copy of the arbitral award
6. Translation in english
3. Court shall cause notice to be delivered to the respondent who may file a verified
opposition within 30 days from receipt of the notice
4. Court may conduct the hearing:
1. Summary:
1. Submission of briefs of legal arguments if the issue is mainly one of law
2. The submission of affidavits of witnesses, reply affidavits and documents in support
thereof if there are issues of fact relating to the grounds relied upon for the petition
2. If the court finds a need to conduct an oral hearing, it shall set the case for hearing
5. The court shall either:
1. Recognize and enforce
2. Refuse to recognize or enforce depending on the presence or absence of any of the
grounds to refuse

ADR Notes

by: Paolo Ollero

SPECIAL RULES OF COURT ON


ALTERNATIVE DISPUTE
RESOLUTION: PROVISIONS
SPECIFIC TO MEDIATION AND
OTHER FORMS OF ADR
Provisions specific to mediation
Govern the situation where the parties to mediation entered into and executed written mediated
settlement agreements

Does not cover mediated settlement agreements or compromise agreements arrived at in courtannexed mediation where the agreement is subject to the approval of the court and is made part
of the judgment based on compromise
Parties may require any of the following processes regarding the SMA:
1. Deposit of mediated settlement agreements
To be enforced by judicial action, it must be deposited with the proper Clerk of Court of
the RTC where:
1. The principal place of business in the Ph of any of the parties is located
2. If any of the parties is an individual, where any of those individuals resides
3. In the National Capital Judicial Region
Enforcement
of the mediated settlement agreements
2.
Upon breach, any of the parties nay file a verified petition to enforce the agreement with
the court where the agreement was deposited
Verified petition shall state:
1. Name and designate as petitioner and respondent all parties to the mediated
settlement agreement and those who may be affected by it
2. The addresses of the petitioner and the respondents, and the ultimate facts that
would show that the adverse party has defaulted in the performance of his
obligation under the agreement

Provisions specific to other forms of ADR


Apply to early neutral evaluation, neutral evaluation, mini-trial, mediation-arbitration, any
combination of ADR forms, or any other ADR forms.
GR: rules of procedure applicable to the different forms of ADR shall be those agreed upon by
the parties
In the absence thereof: the specific rules on these forms of ADR shall be applicable
Rules on mediation shall suppletorily apply to the forms of ADR which are more akin to
mediation than arbitration
Rules on arbitration for those which are more akin to arbitration than mediation

ADR Notes

by: Paolo Ollero

SPECIAL RULES OF COURT ON


ALTERNATIVE DISPUTE
RESOLUTION: MOTION FOR
RECONSIDERATION, APPEAL
AND CERTIORARI
Motion for reconsideration
A party aggrieved by a ruling of the RTC in an ADR related proceeding, may file with the same
RTC a motion for reconsideration within 15 days from receipt thereof
1. That the arbitration agreement is inexistent, invalid or unenforceable (R3.10b)
2. Upholding or reversing the AT's jurisdiction (R13.19)
3. Denying request to refer the parties to arbitration
4. Granting or denying a party an interim measure of protection
5. Denying a petition for the appointment of an arbitrator
6. Refusing to grant assistance in taking evidence
7. Enjoining or refusing to enjoin a person from divulging confidential information
8. Confirming, vacating or correcting a domestic arbitral award
9. Suspending the proceedings to set aside an ICAA and referring the case back to the AT
10. Setting aside an ICAA
11. Dismissing the petition to set aside an ICAA even if the court does not recognize and/or
enforce the same
12. Recognizing and/or enforcing, or dismissing a petition to recognize and/or enforce an ICAA
13. Declining a request for assistance in taking evidence
14. Adjourning or deferring a ruling on a petition to set aside, recognize and/or enforce an ICAA
15. Recognizing and/or enforcing a foreign arbitral award, or refusing recognition and/or
enforcement of the same
16. Granting or dismissing a petition to enforce a deposited mediated settlement agreement
Not allowed:
1. A prima facie determination upholding the existence, validity and enforceability of an
arbitration agreement (R3.1)
2. An order referring the dispute to arbitration
3. An order appointing an arbitrator
4. Any ruling on the challenge to the appointment of an arbitrator
5. Any order resolving the issue of the termination of the mandate of an arbitrator
6. An order granting assistance in taking evidence

General provisions on appeal and certiorari


Under 1997 RoCivPro, the modes of review by CA and the SC of the decisions of the RTC are
the ff:
1. Ordinary appeal by notice of appeal to the CA on errors of fact, law or mixed
This is not available in ADR proceedings
2. Petition for review to the CA on decisions of the RTC rendered the exercise of its appellate
jurisdiction, on errors of fact, law or mixed
3. Appeal by certiorari directed to the SC on pure questions of law

ADR Notes

by: Paolo Ollero

4. Special civil action for certiorari to the CA on the ground of grave abuse of discretion
amounting to lack or excess of jurisdiction when there is no appeal or any plain, speedy
and adequate remedy under the ordinary course of law
Principles the appellate or reviewing court must take into account which the RTC should have
been observed:
1. A party to arbitration is precluded from filing an appeal or a petition for certiorari
questioning the merits of an arbitral award
An agreement to refer a dispute to arbitration is tantamount to an implied agreement
that the arbitral award shall be final and binding
Appeals
through petitions for review and special civil actions for certiorari from decision
2.
of the RTC are exceptional remedies
Allowed only in the instances provided under the Special ADR Rules and only in the
manner provided therein
As
a
general rule, the grounds and infirmities provided under the Arbitration Law, the Model
3.
Law, and the Special ADR Rules for vacating or setting aside a domestic arbitral award or
an ICAA are exclusive
4. The court can deny recognition and enforcement of a foreign arbitral award only upon the
grounds provided for in Article VI of the NYC

Appeal to the CA (petition for review)


Based on errors of fact and/or law
Based on Section 26 of the ADR Act
Equitable PCI Banking Corporation v. RCBC Capital Corporation
Rule 45 is not the remedy available to petitioners as the proper mode of appeal

assailing the decision of the RTC confirming an arbitral award is an appeal before the
CA pursuant to Sec 46 of ADR Act of 2004
Allowed only from the ff orders of the RTC:
1. Granting or denying an interim measure of protection
2. Denying a petition for appointment of an arbitrator
3. Denying a petition for assistance in taking evidence
4. Enjoining or refusing to enjoin a person from divulging confidential information
5. Confirming, vacating or correcting/modifying a domestic arbitral award
6. Setting aside an international commercial arbitral award
7. Dismissing the petition to set aside an ICAA even if the court does not decide to recognize
or enforce such award
8. Recognize and/or enforcing an ICAA
9. Recognizing and/or enforcing a foreign arbitral award
10. Refusing recognition and.or enforcement of a foreign arbitral award
11. Granting or dismissing a petition to enforce a deposited mediated settlement agreement
12. Reversing the ruling of the AT upholding its jurisdiction
Appeal shall be filed within 15 days from notice of the decision of the RTC or the denial of the
petitioner's motion for reconsideration
CA may direct the transmittal of records, set the case for oral arguments, require the submission
of memoranda, and render judgment
Filing shall not stay the award, judgment, final order, or resolution sought to be reviewed unless
CA directs
Bond is required in favor of the prevailing party equal to the amount of the award

Special civil action for certiorari (petition for certiorari)


Akin to petition for certiorari under Rule 65 of the RoC
Based on the ground that RTC has acted without or in excess of its jurisdiction, or with grave
abuse of discretion amounting to lack or excess of jurisdiction, and there is no appeal or any
plain, speedy and adequate remedy under the ordinary course of law
LIMITED to grave abuse of discretion in the ff orders of the RTC in ADR related proceedings:

ADR Notes

by: Paolo Ollero

1. Holding that the arbitral agreement is inexistent, invalid or unenforceable


2. Reversing the AT's preliminary determination upholding its jurisdiction
3. Denying the request to refer the dispute to arbitration
4. Granting or refusing an interim relief
5. Denying a petition for the appointment of an arbitrator
6. Confirming, vacating or correcting a domestic arbitral award
7. Suspending the proceedings to set aside an ICAA and referring the case back to the AT
8. Allowing a party to enforce an ICAA pending appeal
9. Adjourning or deferring a ruling on whether to set aside, recognize and or enforce an ICAA
10. Allowing a party to enforce a foreign arbitral award pending appeal
11. Denying a petition for assistance in taking evidence
Special civil action for certiorari must be filed within 15 days from notice of the judgment, order
or resolution sought to be annulled or set aside, without the benefit of any extension of time to
file the same
Erroneous filing will not toll the 15-day period to file the proper petition for certiorari
AT shall be named as a nominal party but they are not required to file any pleading or written
submission to the court except if such filing or submission will serve the interest of justice
XPN (nominal party):
1. Petitions involving the recognition and enforcement of a foreign arbitral award
Ph courts do not have jurisdiction over foreign arbitral tribunal
Filing does not stay the proceedings of the lower court or AT

Appeal by certiorari to the SC (petition for review on


certiorari)
Akin to petition for review on certiorari
Grounded on pure questions of law
Not a matter of right and may be granted only for serious and compelling reasons resulting in

grave prejudice to the aggrieved party


Grounds:
1. When the CA failed to apply the applicable standards or tests for judicial review prescribed
in Special ADR Rules in arriving at its decision resulting in substantial prejudice to the
aggrieved party
2. CA erred in upholding a final order or decision despite the lack of jurisdiction of the court
that rendered such final order or decision
3. CA failed to apply any provision, principle, policy or rule contained in these Special ADR
Rules resulting in substantial prejudice to the aggrieved party
4. Committed an error so egregious and harmful to a party as to amount to an undeniable
excess of jurisdiction
RCBC Capital Corporation v. Banco de Oro Unibank Inc
A review by the SC is not a matter of right, but of sound discretion, which will be granted
only for serious and compelling reasons resulting in grave prejudice to the aggrieved party
The mere fact that the petitioner disagrees with the CA's determination of questions of fact,
of law, or both, shall not warrant the exercise of the SC's discretionary power
Petition shall be filed within 15 days from notice of the CA's judgment or final order or resolution
appealed from, or from denial of the petitioner's motion for new trial or reconsideration
Speaks only of judgments, final orders or resolutions of the CA as being reviewable in a petition
for review on certiorari; RTC to SC is not available

ADR Notes

by: Paolo Ollero

CONSTRUCTION DISPUTE
ARBITRATION
Construction dispute
Construction - all on-site works on buildings or altering structures, from land clearance through
completion including excavation, erection and assembly and installation of components and
equipments
Construction dispute - those between or among parties to, or who are otherwise bound by, an
arbitration agreement, directly or by reference, whether such parties are project owner,
contractor, subcontractor, fabricator, project manager, design professional, consultant, quantity
surveyor, bondsman or issuer of an insurance policy in a construction project

Construction arbitration under the ADR act


ADR Act affirm the original and exclusive jurisdiction of Construction Industry Arbitration
Commission over construction disputes

Includes those between or among parties to, or who are otherwise bound by, an arbitration
agreement, directly or by reference whether such parties are project owner, contractor,
subcontractor, fabricator, project manager, design professional, consultant, quantity surveyor,
bondsman or issuer of an insurance policy in a construction project
ADR Act directs RTC to dismiss and refer the parties to the CIAC unless all the parties, assisted
by their respected counsels, submit to the court a written agreement making the court the body
that will resolve the dispute
Request for dismissal of the action and the referral shall be made through a verified motion that
shall contain:
1. Statement showing that the dispute is a construction dispute
2. Accompanied by proof of the the existence of the arbitration agreement
3. Notice of hearing

Construction Industry Arbitration Commission


Created by virtue of EO No 1008 - Construction Industry Arbitration Law
Quasi-judicial agency
Agency under the Construction Industry Authority of the Philippines and is administratively
attached to the Department of Trade and Industry
Consists of Chairman and 2 members
Policy and objective: to provide a fair and expeditious settlement of construction disputes
through a non-judicial process which ensures harmonious and friendly relations between or
among the parties
Functions:
1. To formulate and adopt an arbitration program for the construction industry
2. To enunciate policies and prescribe rules and procedures for construction arbitration
3. TO supervise the arbitration program, and exercise such authority related thereto as
regards the appointment, replacement or challenging of arbitrators
4. To direct its officers and employees to perform such functions as may be assigned to them
from time to time

Jurisdiction of the CIAC


Section 4 of EO 1008
CIAC shall have original and exclusive jurisdiction over disputes arising from or connected
with, contracts entered into by parties involved in construction in the Ph, whether the

ADR Notes

by: Paolo Ollero

dispute arises before or after the completion of the contract, or after the abandonment or
breach thereof. These disputes may involve government or private contracts. The
jurisdiction of the CIAC may include but is not limited to:
1. Violation of specifications for materials and workmanship
2. Violation of the terms or agreements
3. Interpretation and/or application of contractual provisions
4. Amounts of damages and penalties
5. Commencement time and delays
6. Maintenance and defects
7. Payment default of employer or contractor and changes in contract cost
The parties can neither expand nor diminish a tribunal's jurisdiction by stipulation or agreement
All that is required for the CIAC to acquire jurisdiction is for the parties to a construction contract
to agree to submit their dispute to arbitration, without any qualification or condition precedent
In principle, CIAC has jurisdiction over the construction dispute and not the contract
Excludes:
1. Disputes arising from employer-employee relationships
2. Claims for moral damages, exemplary damages, opportunity or business losses in addition
to liquidated damages and attorney's fees
Doctrine of primary jurisdiction - precludes courts from resolving construction disputes over
which jurisdiction has been initially lodged with the CIAC by reason of its special knowledge,
experience and services to determine technical and intricate matters of fact
The jurisdiction of the CIAC is dependent on the agreement and consent of the parties to the
construction contract, to submit their dispute to arbitration, and that, absent such consent, the
CIAC cannot validly proceed against a party for lack of jurisdiction
Absence of such agreement, the jurisdiction over the construction dispute will remain with
the regular courts
Two acts which vests CIAC jurisdiction:
1. Presence of an arbitration clause in a construction contract
2. Agreement of the parties to submit the dispute to the CIAC
Refusal or failure of a respondent to appear will not stay the proceedings. CIAC is mandated to
appoint the arbitrator.s in accordance with the Rules, and the arbitration proceedings shall
continue
Even after failing to appear, a respondent is given the opportunity to have the proceedings
reopened and be allowed to present evidence
An arbitration agreement or a submission to arbitration must be in writing but it need not be
signed by the parties, as long as the intent is clear that the parties agree to submit a present or
future controversy arising from a construction contract to arbitration. The agreement may even
be in the form of exchange of letters sent by post or telefax.

Procedure in the CIAC


1. Complaint/request for arbitration
Initiatory pleading filed with the secretariat of the CIAC
Must allege the existence of the arbitration agreement or subsequent submission
2. Answer
The secretariat shall transit to the respondent a request for his answer within 3 days from
such filing
Respondent has 15 days to answer, without prejudice to extension of time if warranted
In the absence of an arbitration agreement or subsequent submission, or of the
respondent's statement of his willingness to undergo arbitration, the CIAC shall dismiss the
complaint without prejudice to its refiling upon a subsequent submission
Reply
3.
The claimant may file a reply to the counterclaim within 15 days from the date of receipt of
the answer with counterclaim
4. Appointment and acceptance of arbitrators
1 or 3 arbitrators shall be appointed depending on the agreement of the parties

ADR Notes

by: Paolo Ollero

If there is no agreement, each party shall submit the names of not more than 6 nominees
from CIAC-accredited arbitrators in order of their preference
In case of sole arbitrator, CIAC shall appoint amont the parties; nominees the common
nominee provided he is available and not disqualified
For AT, CIAC shall appoint the parties' common nominees. If there is no common nominee,
the CIAC shall choose and appoint one arbitrator from each parties
If one common nominee, he shall be appointed together with 2 others from the list
submitted by the parties
If 2 common nominees, the CIAC shall appoint them
Within 15 days, the 2 arbitrators will select the 3rd arbitrator
In case of failure, CUAC shall, within 15 days, appoint the 3rd member
If 3, CIAC shall appoint all
The arbitrators will choose among themselves who will be the chairman
Arbitrators must communicate to the CIAC their acceptance or refusal of his appointment
within 5 days
5. Challenge to arbitrators
Shall be in the form of a complaint under oath
The challenge should be filed at any time after the challenged arbitrators' appointment but
before the lapse of the original 10 days prior for the submission of memoranda or draft
decision
Challenge must be based on the ff grounds:
1. Relationship by blood or marriage within the 6th degree of either party to the
controversy, or to counsels within the 4th degree
2. Financial, fiduciary or other interest in the controversy
3. Partiality or bias
4. Incompetence, or professional misconduct
5. Other just and valid reasons affecting independence, integrity, impartiality and
interest
Challenged
arbitrator will be given an opportunity to be heard

Upon
removal
or inhibition, CIAC shall promptly appoint the replacement, unless he is the

3rd member, in which case, the 2 arbitrators will select his replacement
6. Preliminary conference and terms of reference
The following matters shall be considered:
1. Possibility of amicable settlement
2. Necessity or desirability of amendment to pleadings
3. Obtaining stipulations or admissions of facts and/or documents to avoid
unnecessary proof
4. Limitation of the number of witnesses
5. Suggested formulation of issues by the parties
6. Application for interim relief, appointment of experts and necessity of site inspection
7. Such other matters as may aid in the just and speedy disposition of the case
Terms
of Reference - controls the proceedings unless corrected for manifest errors by a

motion filed not later than the hearing date. It shall include:
1. Full name of the parties, and there respective counsels
2. The addresses and contact numbers of the parties/counsels, to which notifications
or communications arising in the course of the arbitration may be validly made
3. A summary of the parties' respective claims
4. Full statement of admitted facts and documents
5. The issues to be resolved in question form
6. The arbitrators' full names
7. The place where the arbitration proceedings shall be held
8. The breakdown, schedule of payments, and sharing of arbitration fees
9. Such other particulars as may be required by the AT for the proper and speedy
adjudication of the case
7. Arbitration proceedings
1. Venue, date, and time

ADR Notes

by: Paolo Ollero

GR: party autonomy


In case of disagreement, choice of AT shall prevail
2. Quorum
In 3 arbitrators, 2 members shall compromise a quorum for the purpose of conducting a
hearing
Presentation
of evidence
3.
AT shall at all time adopt the most expeditious procedure for the introduction of evidence
The party who seeks to enforce a right or establish a claim shall be required to present
his evidence first
Instead of hearing, the parties may agree to submit the issues for resolution after the
filing of pleadings (similar to summary judgment)
4. Draft decision or final memorandum
If any or both parties so desire, they may submit not later than 10 days from the
termination of the hearing, their draft decision or final memorandum agreements
5. Closing of the hearings
8. Award
Award shall be rendered within 30 days from the time the case is submitted for resolution
The final arbitral award shall become executory upon the lapse of 15 days from receipt
therefor unless a timely motion for correction is filed by any party within the said 15 days
Motion for reconsideration and new trial are prohibited
Jurisdiction
of AT is terminated, unless:

When
a timely motion for correction has been filed
1.
2. Notwithstanding the finality of the award the AT retains jurisdiction to exercise
executory powers which includes:
1. Determination of the sufficiency of the bond
2. Approval of the surety or bonding company
3. satisfaction of the award
4. Quashal of the execution
5. Issuance of alias writs
6. Assessment of properties levied
7. Appointment of a quantity surveyor or assessor
8. Examination of banks, debtors of the judgment debtor and any person holding
properties or assets of the judgment debtor
9. Issuance of subpoena ad testificandum and subpoena dues tecum
9. Execution of the award
If the decision is appealed, the execution may be stayed upon approval by the AT

Judicial review of CIAC decisions


Petition for review from a final award of the CIAC may be taken by any party to the CA within 15
days from receipt thereof

Based on errors of fact, law, or both


The petition shall not stay the execution of the final award unless the CA issues a temporary
restraining order and/or a writ of preliminary injunction.

Costs of arbitration
GR; determining which party ought to bear the costs:
1. Non-monetary claims, the award shall decide which of the parties shall bear the costs or in
what proportion the costs shall be borne by each
2. Costs ordinarily follows the result of suit, costs shall be allowed to the prevailing party as a
matter of course, but the court shall have the power to adjudge that either party shall pay
the cost of an action