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I. ADR- not focused on law but on the human aspect.

Go for the root cause; Look at


client’s background.
Current SC thrust: not litigation but early disposition of cases... lessen dockets.

RA 9285: ADR Law of 2004


Length of time=Appellate Courts

1. Mediation-win-win situation
- Parties will decide en route to satisfaction in the outcome.
- Veering away from litigation.
- Settle dispute ASAP
- Court-assisted proceeding
- E.g. Brgy dispute settlement-KatarungangPambarangay (RA 7160)
Secs. 2028-2046 of the NCC
Secs. 217, 261, 262 of the LC- on mediation

JDR- confidential- admissions cannot be used in future cases.


-allowed to ask beyond the face of questions/case itself.

Rules on Pre-trial Conference:

*Mediation is now mandatory-failure to do so, dismissal-plaintiff; non-


appearance of defendant- ex parte (p), submitted for decision.

2. Compromise agreement-law between parties

3. Mediation-usually for civil aspect


- Criminal case-possible
- Court will make a decision

E.O. 1008- Arbitration Law


-Lawyers appointed as Arbiters
- usual parties: Companies-terms-Arbitral award by Arbitration body

RA 6734
PD1083
IPRA
Rules on Summary Procedure-Preliminary Conference
Small Claims-100K and below-1 day- cannot be appealed
- After 15 days-Writ of execution-served by sheriff-cannot pay-vs. Properties
UNCITRL
e.g. Fil. Corp. With Foreign Corp. Foreign arbitral award must be recognized in
the Philippines

Court Annexed Mediation-Philippine Mediation Center


-trained mediators by Supreme Court

Failure-----return to JDR-----Judges try to mediate (JDR Judge)


e.g. Multiple Sala Cases-raffled-trial judge
without answer: not yet for PTC
- Issues not joined

ADR purpose: empower the parties thru the modes of conciliation, mediation,
arbitration.

II. Conflict- not necessarily destructive


-catalyst for change/growth

How do we respond when confronted?


1. Not fixed- chaos, emotional pain
2. Pre-decide rules of engagement!

Peace and chaos=constant=Master principles!

Problem: Penchant for filing cases

C.J. Warren Burger (Pa-burger kanamandiyan!)- 1984 address to law profession.


-“mesmerized with the situation of courtroom contest”
- we ought to be “healers of conflict”
-more court dockets= time divided on part of judge

Rigors of trial- slow turning of the wheels of justice- frustration on the part of the
client.
Mediation- “sign of weakness”

Art. III (16)-Speedy trial!


Spanish Civil Code---NCC
CA103-Compulsory arbitration

III. Voluntary arbitration


1953- RA 876-Arbitration law/ ADR Law
1958-NY Convention- uniformed rules on foreign arbitration and arbitral awards
1985- UNCITRAL- uniformity in arbitral procedures in such the aforesaid arbitration
procedures.
-harmonize with domestic laws- to avoid conflict.

2004
RA 9285-Amendment of ADR Law
-weapon of choice
-settle differences voluntarily
-purpose is noble so parties should acknowledge it.

Modes of settling disputes:

1. Arbitration-investigation/ determination of an issue of differences between


contending parties under an arbitrator.
-with a neutral 3rd party who makes a decision after hearing both sides.
-1/ more arbiters- agreed upon by parties
-will render an “award”--- arbitral award

42 Phil 548-“arbitration: mere substitute”


-compulsory-statutory
-voluntary-mutual consent

2. Negotiation- present each party’s position


-also encompasses mediation and conciliation.
Competitive-trying to maximize the gains!
Collaborative-joint effort

3. Mediator-assisted negotiation
-Mediator
-facilitate negotiation and communication
-no authority to impose a result.

4. Conciliation-conveys information
-encompassed in mediation
-passive in character

5. Mini-trial/ early neutral evaluation- non-binding


- legal/factual positions
-neutral evaluator
- basis: prima facie
TRIAL ADR
Traditional dispute resolution Alternative mode
Adversarial Concilliatory
Facts based on pleadings/ evidence Stories of Parties might be the key
Judges will decide Mediator/ Arbitrator
Act/ Omission (Focus)- act-oriented Individual- person-oriented
process
Backward looking-reminiscing Forward-looking

IV. Purposes of ADR:


1. Restore Amicable settlement
2. Empower parties
3. Restore Civil relations of parties
4. Declog court dockets
5. Paradigm shift

How do conflicts arise?


Because of differences.

RA 6734-RA 9054-ARMM-Art. IX, Sec. 14, 62-65-Tribal court


RA8371-IPRA-Chap. 4, Sec. 15-Justice system (Commonly-accepted)- council of
elders, customs and practices; NCIP- if mediation fails; after certification from
Council of Elders.

PD 1083- Muslim Personal Laws-Family Code-Arbitration:


1.Divorce- “talaq”/ “tafwid”- allowed by husband
-wife v. Husband
- husband: notice with clerk of shari’a court within 7 days after receipt...
-Form: Agama Arbitration Council
-Exhaust all possible remedies- before decree of divorce
Talaq- can be repudiated; several parties
Notice becomes irrevocable if there is “Idda”- waiting time before wife can enter
into a subsequent marriage.

2. Subsequent marriage-husband should declare desire to marry again.


- file a written notice
- upon receipt-COC- file copy with wife/ wives

When to arbitrate?
To get the consent of wife.
No consent: AAC will check if Husband may enter into marriage (Art. 27)- equal
companionship

3. Offenses v. Customary laws


- can settle without formal trial- to be decided by shari’a court

AAC- not less than but not more than 4 members.

V. Labor Code-Labor Relations


Voluntary Arbitrator-appointed by NCMB
PMC- Courts
DOJ-Contracts
CBA-Labor dispute (Art. 212 (L))

Art. 217- Exclusive and original jurisdiction of labor arbiter


Art. 262-Agreement between parties to appoint a voluntary arbitrator
Art. 211- Voluntary arbitration encouraged over compulsory arbitration (primacy)
Art. 261 (last paragraph); 217 (c)- must go through grievance machinery first before
going through voluntary arbitration
CBA- stabilize relations between em-em; create a climate of sound and stable
industrial.
-mutual obligation-negotiating terms including grievance machinery and selection of
voluntary arbitrator.
-particularly in policy and decision-making
-employer’s reply-10 days from receipt
-Conference-if no conciliation-10 days from request
-no settlement: NCMB-upon request/ own initiative
-no protests allowed
-NCMB-exhaust all efforts!

-can be brought before the Courts/NLRC if:


1. non-performance of obligation
2. Fraud, etc.

All grievances- subject to grievance machinery


Not resolved within 7 days: voluntary arbitrator
No person named: process of selection in the CBA

Voluntary Arbitrator’s powers:


1. Hold hearings
2. receive evidence
3. Settle

Rules in Voluntary Arbitration in Labor Relations:


1. Parties should attend all proceedings.
2. Decision within 20 days.
3. It should reflect not only contract but also effect of particular result (productivity),
consequence to employees, whether or not it heightened the dispute.

When to question such decision? Grave abuse of discretion under Rule 65

VI. KatarungangPambarangay-Alternative Dispute Resolution


Common purposes:
1. Help lighten judicial workload and decongest cases in court.
2. Complements the judicial system
3. Empower the people
4. Preserve the Filipino culture
5. Dispute settlement is non-judicial in character.
6. Designed to maintain just, inexpensive and fast settlement of dispute.

Main purpose: to prevent indiscriminate filing in court... unless parties go through


barangay conciliation proceedings.

Subject matter:
GR: Actual residents, natural persons; within the jurisdiction of the barangay.

Jurisdiction:
All cases except: Sec. 408- Violation of Government ordinance-should be filed directly
to court. Should be in the exercise of his duties/office.
Morata v. Go 125 S 444
-Barangay is not restricted to jurisdictional amount.
- Claim arising out of the offense outside its jurisdiction- may ask for damages
regardless of amount which can be settled. E.g. BP22 cases

May a Barangay have a special jurisdiction in civil cases? Yes. Motupropio referred
by the court
Venue: Respondent/ residences Sec. 409

Settlement: 45 days
15-15-15-meritoic

RA 6734 (ARMM)- similar: ICC’s and IP’s giving the power to settle their disputes.
RA 8371 (IPRA)

ARMM- tribal court


- In charge with the determination, settlement involving personal, family,
property rights in accordance with their practice and culture.
IPRA- land claims and ownership; ancestral domain according to their cultures and
traditions

Chapter 4, Sec. 15- justice system peace-building process:


- Use their own commonly-accepted principles.
Sec. 62

Sec. 63

Sec. 65

Sec. 66

PD 1083 “Family Code” for Muslims


-Marriage
-Subsequent marriage
-Offenses against customary laws
Talaq- repudiation by man of his women,
-pronouncement of divorce
DDA-period of waiting for women before one can marry
Death-after 4 months
Subsequent marriage

Offenses v. Customary law Sec. 163

What are the sanctions for a Punong Barangay who failed to follow
KatarungangPambarangay Law?
1. Indirect Contempt

2. Complainant-dismissal

Respondent- dismissal of counterclaim

3. Defendant may file a motion to dismiss based on the failure to comply by the
official on his duties to settle or for lack of cause of action.

4. Defendant did not appear, can the PB institute a motion to dismiss the
complaint?
PB does not rule on anything. Otherwise, usurpation

No. Go to Pangkat. Non-appearance of the complainant= certification of personal


confrontation between parties.

1. Brgy
2. Pangkat

Sanctions found in IRR of KPL:

Can be questioned on the ground that it went beyond the idea that procedural laws
should be supreme over substantive ones.

Court intervention=indirect contempt

Complaint is filed without a certificate to file action or certificate is questionable.


(prematurity)- Royales v. IAC

Advantages of filing thru the KatarungangPambarangay Law:


Dissatisfaction with the judicial mode of settling disputes addressed in KPL
1. Access
Corruption
Incompetence
Delay in the delivery of justice

2. + less costly
3. More convenient for venue and time for parties
4. Comprehensible proceedings- in vernacular
5 Non-intervention of lawyers
5. Brevity of proceedings-45 days (15, 30)
6. Like a court judgment
7. Foster harmony and peace and order in the most basic institution of the
government
Conciliation does not vest jurisdiction.
MTC can provisionally rule on ownership of the property- possession

VII. Small claims

As early as 1900’s- response to inadequacies of complex court structures.

1999- J. Josue-Bellocillo’s proposal


Funded by Franklin Drilon Passed by Jose Yap, Ramon Revilla Jr. (HB 2921,
Small Claims Courts Act)
C.J. Puno: while waiting for Congress, MTC’s- pilot courts

2007- with the help of ABA-ROLI; USAID; EJOW

Lending institutions!

Small Claims Courts=Poor man’s court

Objectives:
1. Justice more accessible to the poor.
2. Unburden courts of their heavy dockets.

Scope of Small Claims Law:


1. Filing a motion to dismiss on the ground of lack of jurisdiction
2. Reiteration of the mandatory personal appearance, prohibition of lawyers.
3. JDR-deleted
4. Clarification in filing a response
5. Additional fees for frequent filers- 10x or more within a year within a judicial
jurisdicition.

Small claims flow chart- check website

Effects of Non-appearance of parties:

1. For settlement: court may appreciate defenses

a. With Response- appears- considered by the judge

b. No response- appears- not considered by the judge

ratio: waiver by defendant; waived whatever defenses he may have raised.


2. After settlement:

Parties can ask for re-raffling to another judge. Judge will render decision
immediately only in cases when a defendant submits response.

3. No settlement: Judge should render decision within 24 hours immediately after the
hearing.

Decision cannot be appealed- Final and absolute?

No. Can be questioned on the ground of grave abuse of discretion amounting to lack
or excess of jurisdiction.

1. Contract

2. Damages

3. Enforcement of Brgy Settlement agreement- claim is not limited to 100k?- Yes.


Amount does not matter according to the jurisdiction Of KatarungangPambarangay.

VIII. Summary Procedure

- Abbreviated proceeding, limiting the motions to be filed, lessens presentation


of evidence, the period for rendering of decision is limited.
- Issues are very simple.
Coverage:

Civil Cases:

1. Forcible entry/Unlawful Detainer

2. All other civil cases, exceeding probate proceedings not exceeding 100k; 200k-
Metro Manila

Ejectment-Forcible Entry; Unlawful Detainer

Forcible Entry- force, deceit, intimidation- illegal from the start

Unlawful detainer- ceased contract- legal became illegal

Period for filing:FE- one year from physical dispossession.

UD-one year from time of last demand

Allowed tenant- from time of last demand


Criminal Cases:

1. Violations of traffic laws

2. Rental law

3. Municipal or city ordinance

4. All other crim cases not exceeding 6 mos or a fine not exceeding 1k or both

5. Damage to prop through crim negligence-not less than 10k

6. BP 22 cases

Prohibited pleadings:

1.Jurisdiction can be questioned under Summary procedure

2. Court-may beoutrightly dismissed.

3. Failure to have brgy settlement- not a ground for dismissal, suspension only.

4. Judicial Affidavit Rule applicable? Yes. JAR applicable in all cases, regardless
of proceedings even if there are no IRR’s yet.

Advantage: considered as the direct testimony of witnesses already


authenticated.

Admissibility! Authentication-connect statement and document

Procedure in filing a Civil Case:

1. Complaint

2. Answer-within 10 days- cannot be extended.

3. Preliminary Conference- CAM

JDR
4. Failure to Settle-Preliminary conference proper-confidential, not anyone can
handle the records of the court.

5. Submission of Position papers + documents-affidavits, documents, at times:


formal offer of evidence

- Getting of more evidence for clarificatory matters

6. Decision

Appealable after 10 days

Allowed Damages- Damages in the form of Rent, Attorney’s fees, costs

Supersideas Bond- answer for whatever damages were granted.

Procedure for filing Criminal cases:

1. Information

May the private complainant file directly with the Court? Yes. City-thru prosecutor
muna; No prosecutor- Chief of Police

2. Counter-affidavit within 10 days

3. Arraignment- court may issue a warrant of arrest

-CAM and JDR

4. Preliminary Conference

5. Trial- follow regular procedure – direct testimonies are cut- affidavits- act as
direct testimonies

Prosecution allowed to ask more? No. Except: authenticity of affidavit;


identification of the accused.

6. Decision
Rules on Summary Procedure in MTC’s:

IX. Characteristics of a Compromise Agreement:

1. Consensual

2. Nominate

3. Reciprocal

4. Bilateral

5. Principal

Most telling characteristic: Reciprocal concessions- both P and D have obligations in


the compromise agreement.

e.g. Rental

Kinds of Compromise Agreement:

1. Extrajudicial- e.g. brgy settlement

2. Judicial

Art. 2029 and 2030- duty of the court

-inculcated in the pre-trial conference

Mediation----court annexed mediation------judicial mediation

Suspension of proceedings-

Court- annexed mediation- 30d

JDR- 30d

CAM and JDR: Confidential!

Admission-not evidence against the accused.

-no bearing when case is returned to court.


-mediator’s appearance in court: not possible

When is the approval of the court necessary in a compromise agreement?

Art. 2032- guardians, parents, absentee’s reps, and administrators or executors of


decedent’s estate.

Rationale: Execution of compromise agreement.

Basis for rendering decision:

Reason for copying full terms and conditions: compromise agreement is the law
between the parties unless it is contrary to law, customs, public morals.

Is it possible for another person to file a case in your favour and enter into a
compromise in your favour?

File: Yes, provided you secure a SPA.

Enter: Yes, provided you secure a SPA.

Administration- manage the affairs of principal

Dominion- acting in behalf of the property of the principal

Compromise- giving away a property of the principal.

If you are a lawyer, is there still a need for SPA? Yes, still a power of dominion.

Admissions of facts, etc.- included

Corporations:

Art. 2033. Needed documents: SPA + Board Resolution + Secretary’s Certificate- that
there is such a resolution.

-attached to the complaint/answer


In what types of cases is a compromise agreement available?

Civil cases

Criminal- civil aspect

Sometimes: affidavit of desistance- may be disregarded by the court.

Art. 2035. No compromise:

1. Civil status

2. Validity of marriage/ legal separation

3. Legal sep. grounds

4. Future support

5. Juris. Of courts

6. Future legitime

When can you question the validity of compromise agreement?

1. Vexation of consent- mistake, fraud, deceit, undue influence, violence

Unless it is ratified.

2. Res judicata- final judgment

One party does not comply: Writ of execution or rescission. Usually: Executed.

Definite compromise agreement dapat!

Reciprocal concessions between P and D:

1. Survey- metes and bounds of property

2. Honor the survey

3. Judgment based on the compromise agreement

Possible problems:
1. When will the survey be finished?

2. Whether the parties will honor the survey or not.

Ignorance as a defense? Not a valid ground.

Valid grounds: Grounds on vexation of consent.

E.O 1008.Other laws attached thereto + cases.

COURT-ANNEXED MEDIATION- presupposes that there is already a case filed in


court. As part of the pre-trial, case is referred for mediation before the CAM.

-referred to the Philippine Mediation Center.- pool of mediators

COURT-REFERED MEDIATION- parties have an agreement that they will bring their
case for mediation or arbitration, as the case may be. One of the parties does not
comply, goes directly to the courts.

-judge will dismiss the case and refer it for arbitration before the Office of the
ADR under the DOJ.

Note: Lupon cases not under ADR law.

Duties of the Office of the ADR (Sec. 50):

1.Train the arbitrators.

2.

3.

4.

Private individual-Penalized with civil liabilities in his capacity as public officer


under the Administrative code.

(Sec. 38, Admin code)- Grounds:

1. Bad faith- constructive fraud or design to mislead or deceive another…


sinister motive

2. Malice- intend to inflict an injury implied as evil.

3. Gross Negligence- intentional failure of a manifest duty or wanton disregard


of consequences.
Exceptions of application of ADR Law:

1. Labor disputes under the Labor code

2. KBL

3. Muslims/ ICC’s/ IPP’s

4. (Sec. 7-ADR) Court-Annexed Mediation- Ratio: Separation of Powers. CAM


under the DOJ. Case already filed with courts.

Can Venue be the subject of a stipulation? Yes. Jurisdiction-cannot be the


subject of stipulation.

Guidelines regarding Information which should be confidential (Sec. 11):

1. Information brought from Mediation

2. Cannot be forced to reveal anything during mediation proceedings.

Non-party participants- “supporters” who can help the realization of


settlement

3. Discovery-proceeding of disclosure of facts before the courts to the other


party which the other party might not have knowledge.

Modes:

Rules 23- 28 of ROC

e.g. document revealed by the party- confidential; may be subjected for


discovery. Not subject to deposition pending action.

Except: information that is admissible to discovery

e.g. party produced a document without knowledge of other party-


admissible in evidence- subject to diff. modes of discovery. Cannot aver
that it is confidential.

Confidential or admissible?

4. Persons who cannot be compelled to disclose information:

Non-party participants

Stenographer

Other persons who possesses information from mediation


Parties

Mediator/ Arbitrator

**All people in mediation proceedings.

5. Found to have failed to act impartially.

e.g. mediator in favour of one of the parties. Brought out info during
pendency of proceedings.Still liable even if he was not the mediator of the
case anymore.

6. Failure of mediation; info revealed; Judge can refuse testimony of mediator.


Person who called mediator will be made to pay to the costs of his attorney’s fees.

7. Privilege of confidentiality can be waived by the parties and all people in the
proceedings. May do so in writing or orally.

e.g. confidential info leaked- waived privilege of confidentiality- during hearing,


information can be revealed

non-party participant- can waive if provided by

Effect of waiver: cannot insist on such privilege

Revealing resulted to damage: give right to answer or respond; Sec. 10, ADR- file a
case for damages.

Exceptions to the Privilege of Confidentiality:

1. Those which are agreed upon to be non-confidential

2. Open to public

3. Plan to inflict bodily injury or commit a crime of violence;

4. Intentionally used to plan a crime, attempt to commit/commit a crime of


violence;

5. …Except: Child protection cases- always confidential

6. Vs. a mediator

7. Professional misconduct/ Malpractice e.g. forged signature of the other


party

8. Hearing in KAMARA?
9. …

Prohibited pleadings: sec. 12

Sec. 13- Mediator’s disclosure and conflict of interest

Sec. 14- participation in mediation

Sec. 16- submit dispute to mediation under institutional rules

Sec. 17 enforcement of mediated settlement agreement

Last Matters

RTC’s decision is appealable to the CA but the appeal to SC is discretionary.

Rule 19.36.Review discretionary.—A review by the Supreme Court is not a matter


of right, but of sound judicial discretion, which will be granted only for serious
and compelling reasons resulting in grave prejudice to the aggrieved party. The
following, while neither controlling nor fully measuring the court’s discretion,
indicate the serious and compelling, and necessarily, restrictive nature of the
grounds that will warrant the exercise of the Supreme Court’s discretionary
powers, when the Court of Appeals:

a. 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;

b. Erred in upholding a final order or decision despite the lack of jurisdiction of


the court that rendered such final order or decision;

c. Failed to apply any provision, principle, policy or rule contained in these


Special ADR Rules resulting in substantial prejudice to the aggrieved party; and

d. Committed an error so egregious and harmful to a party as to amount to an


undeniable excess of jurisdiction.

Domestic arbitration

SEC. 32.Law Governing Domestic Arbitration. - Domestic arbitration shall


continue to be governed by Republic Act No. 876, otherwise known as "The
Arbitration Law" as amended by this Chapter. The term "domestic arbitration" as
used herein shall mean an arbitration that is not international as defined in
Article (3) of the Model Law.

Who can submit a file for a petition or action for domestic arbitration?
Section 2. Persons and matters subject to arbitration. - Two or more persons or
parties may submit to the arbitration of one or more arbitrators any controversy
existing between them at the time of the submission and which may be the
subject of an action, or the parties to any contract may in such contract agree
to settle by arbitration a controversy thereafter arising between them. Such
submission or contract shall be valid, enforceable and irrevocable, save upon
such grounds as exist at law for the revocation of any contract.

Such submission or contract may include question arising out of valuations,


appraisals or other controversies which may be collateral, incidental, precedent
or subsequent to any issue between the parties.

A controversy cannot be arbitrated where one of the parties to the controversy


is an infant, or a person judicially declared to be incompetent, unless the
appropriate court having jurisdiction approve a petition for permission to submit
such controversy to arbitration made by the general guardian or guardian ad
litem of the infant or of the incompetent.

But where a person capable of entering into a submission or contract has


knowingly entered into the same with a person incapable of so doing, the
objection on the ground of incapacity can be taken only in behalf of the person
so incapacitated.

1. Two or more parties that presupposes that they do not have a contract of
dispute;

2. Any parties to a contract. If one of the parties to a contract is infant or


incompetent it cannot be subject of arbitration unless the court will appoint the
general guardian ad litem;

If the person knows the incapacity or incompetence, such person can raise the
objection before the court

3. Article 2032. The court's approval is necessary in compromises entered into


by guardians, parents, absentee's representatives, and administrators or
executors of decedent's estates

If your SPA only allows you to enter into a compromise you cannot be
authorized into an arbitration.

Subject into an arbitration

1. Any controversy from contract

What cannot be subject to arbitration?


Labor cases

Before proceeding to arbitration, the condition sine qua non is to have an


arbitration arbiter

But unlike international arbitration, the above condition sine qua non may be
disregarded.

Submission for issue for arbitration is tantamount to submission to court’s


jurisdiction.

How is arbitration instituted?

1. Serving of the statement of claim (SOC). (only through personal service or


courier)

How to select sole arbitrator

If the parties agreed already, the claimant will set a period for the other party for
them to meet and for them to decide

How to select tribunal?

Under domestic arbitration, the tribunal is already instituted under the SOC.

What if the respondent failed to answer?

The recourse is to go to court.

If the court finds that the failure is not trivial, the court may ask the parties to
proceed to arbitration.

If trivial and not given to the proper person and failure to answer is an important
issue. Then the court should judge summarily.

Pending question on the failure to file an answer will result to suspension of the
proceedings.

How do you appoint?

Section 8.Appointment of arbitrators. - If, in the contract for arbitration or in the


submission described in section two, provision is made for a method of naming
or appointing an arbitrator or arbitrators, such method shall be followed; but if
no method be provided therein the Court of First Instance shall designate an
arbitrator or arbitrators.
The Court of First Instance shall appoint an arbitrator or arbitrators, as the case
may be, in the following instances:

(a) If the parties to the contract or submission are unable to agree upon a single
arbitrator; or

(b) If an arbitrator appointed by the parties is unwilling or unable to serve, and


his successor has not been appointed in the manner in which he was
appointed; or

(c) If either party to the contract fails or refuses to name his arbitrator within
fifteen days after receipt of the demand for arbitration; or

(d) If the arbitrators appointed by each party to the contract, or appointed by


one party to the contract and by the proper Court, shall fail to agree upon or to
select the third arbitrator.

(e) The court shall, in its discretion appoint one or three arbitrators, according to
the importance of the controversy involved in any of the preceding cases in
which the agreement is silent as to the number of arbitrators.

(f) Arbitrators appointed under this section shall either accept or decline their
appointments within seven days of the receipt of their appointments. In case of
declination or the failure of an arbitrator or arbitrators to duly accept their
appointments the parties or the court, as the case may be, shall proceed to
appoint a substitute or substitutes for the arbitrator or arbitrators who decline or
failed to accept his or their appointments.

Section 10.Qualifications of arbitrators. - Any person appointed to serve as an


arbitrator must be of legal age, in full-enjoyment of his civil rights and know how
to read and write. No person appointed to served as an arbitrator shall be
related by blood or marriage within the sixth degree to either party to the
controversy. No person shall serve as an arbitrator in any proceeding if he has or
has had financial, fiduciary or other interest in the controversy or cause to be
decided or in the result of the proceeding, or has any personal bias, which
might prejudice the right of any party to a fair and impartial award.

No party shall select as an arbitrator any person to act as his champion or to


advocate his cause.

If, after appointment but before or during hearing, a person appointed to serve
as an arbitrator shall discover any circumstances likely to create a presumption
of bias, or which he believes might disqualify him as an impartial arbitrator, the
arbitrator shall immediately disclose such information to the parties. Thereafter
the parties may agree in writing:

(a) to waive the presumptive disqualifying circumstances; or


(b) to declare the office of such arbitrator vacant. Any such vacancy shall be
filled in the same manner as the original appointment was made.

Civil interdiction means additional penalty to a criminal penalty therefore you


cannot be appointed as an arbitrator.

Section 11. Challenge of arbitrators. - The arbitrators may be challenged only for
the reasons mentioned in the preceding section which may have arisen after
the arbitration agreement or were unknown at the time of arbitration.

The challenge shall be made before them.

If they do not yield to the challenge, the challenging party may renew the
challenge before the Court of First Instance of the province or city in which the
challenged arbitrator, or, any of them, if there be more than one, resides. While
the challenging incident is discussed before the court, the hearing or arbitration
shall be suspended, and it shall be continued immediately after the court has
delivered an order on the challenging incident.

Section 13.Oath of arbitrators. - Before hearing any testimony, arbitrators must


be sworn, by any officer authorized by law to administer an oath, faithfully and
fairly to hear and examine the matters in controversy and to make a just award
according to the best of their ability and understanding. Arbitrators shall have
the power to administer the oaths to all witnesses requiring them to tell the
whole truth and nothing but the truth in any testimony which they may give in
any arbitration hearing. This oath shall be required of every witness before any of
his testimony is heard.

Section 14. Subpoena and subpoena ducestecum. - Arbitrators shall have the
power to require any person to attend a hearing as a witness. They shall have
the power to subpoena witnesses and documents when the relevancy of the
testimony and the materiality thereof has been demonstrated to the arbitrators.
Arbitrators may also require the retirement of any witness during the testimony of
any other witness. All of the arbitrators appointed in any controversy must
attend all the hearings in that matter and hear all the allegations and proofs of
the parties; but an award by the majority of them is valid unless the concurrence
of all of them is expressly required in the submission or contract to arbitrate. The
arbitrator or arbitrators shall have the power at any time, before rendering the
award, without prejudice to 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.

Section 15.Hearing by arbitrators. - Arbitrators may, at the commencement of


the hearing, ask both parties for brief statements of the issues in controversy
and/or an agreed statement of facts. Thereafter the parties may offer such
evidence as they desire, and shall produce such additional evidence as the
arbitrators shall require or deem necessary to an understanding and
determination of the dispute. The arbitrators shall be the sole judge of the
relevancy and materiality of the evidence offered or produced, and shall not
be bound to conform to the Rules of Court pertaining to evidence. Arbitrators
shall receive as exhibits in evidence any document which the parties may wish
to submit and the exhibits shall be properly identified at the time of submission.
All exhibits shall remain in the custody of the Clerk of Court during the course of
the arbitration and shall be returned to the parties at the time the award is
made. The arbitrators may make an ocular inspection of any matter or premises
which are in dispute, but such inspection shall be made only in the presence of
all parties to the arbitration, unless any party who shall have received notice
thereof fails to appear, in which event such inspection shall be made in the
absence of such party.

Section 19.Time for rendering award. - Unless the parties shall have stipulated by
written agreement the time within which the arbitrators must render their award,
the written award of the arbitrators shall be rendered within thirty days after the
closing of the hearings or if the oral hearings shall have been waived, within
thirty days after the arbitrators shall have declared such proceedings in lieu of
hearing closed. This period may be extended by mutual consent of the
parties.alf-itc

Section 20.Form and contents of award. - The award must be made in writing
and signed and acknowledged by a majority of the arbitrators, if more than
one; and by the sole arbitrator, if there is only one. Each party shall be furnished
with a copy of the award. The arbitrators in their award may grant any remedy
or relief which they deem just and equitable and within the scope of the
agreement of the parties, which shall include, but not be limited to, the specific
performance of a contract.

Section 12.Procedure by arbitrators. - Subject to the terms of the submission or


contract, if any are specified therein, are arbitrators selected as prescribed
herein must, within five days after appointment if the parties to the controversy
reside within the same city or province, or within fifteen days after appointment
if the parties reside in different provinces, set a time and place for the hearing of
the matters submitted to them, and must cause notice thereof to be given to
each of the parties. The hearing can be postponed or adjourned by the
arbitrators only by agreement of the parties; otherwise, adjournment may be
ordered by the arbitrators upon their own motion only at the hearing and for
good and sufficient cause. No adjournment shall extend the hearing beyond
the day fixed in the submission or contract for rendering the award, unless the
time so fixed is extended by the written agreement of the parties to the
submission or contract or their attorneys, or unless the parties have continued
with the arbitration without objection to such adjournment.
The hearing may proceed in the absence of any party who, after due notice,
fails to be present at such hearing or fails to obtain an adjournment thereof. An
award shall not be made solely on the default of a party. The arbitrators shall
require the other party to submit such evidence as they may require for making
an award.

No one other than a party to said arbitration, or a person in the regular employ
of such party duly authorized in writing by said party, or a practicing attorney-at-
law, shall be permitted by the arbitrators to represent before him or them any
party to the arbitration. Any party desiring to be represented by counsel shall
notify the other party or parties of such intention at least five days prior to the
hearing.

The arbitrators shall arrange for the taking of a stenographic record of the
testimony when such a record is requested by one or more parties, and when
payment of the cost thereof is assumed by such party or parties.

Persons having a direct interest in the controversy which is the subject of


arbitration shall have the right to attend any hearing; but the attendance of any
other person shall be at the discretion of the arbitrators.

Section 16.Briefs. - At the close of the hearings, the arbitrators shall specifically
inquire of all parties whether they have any further proof or witnesses to present;
upon the receipt of a negative reply from all parties, the arbitrators shall declare
the hearing closed unless the parties have signified an intention to file briefs.
Then the hearing shall be closed by the arbitrations after the receipt of briefs
and/or reply briefs. Definite time limit for the filing of such briefs must be fixed by
the arbitrators at the close of the hearing. Briefs may filed by the parties within
fifteen days after the close of the oral hearings; the reply briefs, if any, shall be
filed within five days following such fifteen-day period.

Section 24.Grounds for vacating award. - In any one of the following cases, the
court must make an order vacating the award upon the petition of any party to
the controversy when such party proves affirmatively that in the arbitration
proceedings:

(a) The award was procured by corruption, fraud, or other undue means; or

(b) That there was evident partiality or corruption in the arbitrators or any of
them; or

(c) That the arbitrators were guilty of misconduct in refusing to postpone the
hearing upon sufficient cause shown, or in refusing to hear evidence pertinent
and material to the controversy; that one or more of the arbitrators was
disqualified to act as such under section nine hereof, and wilfully refrained from
disclosing such disqualifications or of any other misbehavior by which the rights
of any party have been materially prejudiced; or

(d) That the arbitrators exceeded their powers, or so imperfectly executed them,
that a mutual, final and definite award upon the subject matter submitted to
them was not made.

Where an award is vacated, the court, in its discretion, may direct a new
hearing either before the same arbitrators or before a new arbitrator or
arbitrators to be chosen in the manner provided in the submission or contract for
the selection of the original arbitrator or arbitrators, and any provision limiting the
time in which the arbitrators may make a decision shall be deemed applicable
to the new arbitration and to commence from the date of the court's order.

Where the court vacates an award, costs, not exceeding fifty pesos and
disbursements may be awarded to the prevailing party and the payment
thereof may be enforced in like manner as the payment of costs upon the
motion in an action.

Section 17.Reopening of hearing. - The hearing may be reopened by the


arbitrators on their own motion or upon the request of any party, upon good
cause, shown at any time before the award is rendered. When hearings are thus
reopened the effective date for the closing of the hearings shall be the date of
the closing of the reopened hearing.

Section 19.Time for rendering award. - Unless the parties shall have stipulated by
written agreement the time within which the arbitrators must render their award,
the written award of the arbitrators shall be rendered within thirty days after the
closing of the hearings or if the oral hearings shall have been waived, within
thirty days after the arbitrators shall have declared such proceedings in lieu of
hearing closed. This period may be extended by mutual consent of the
parties.alf-itc

Section 20.Form and contents of award. - The award must be made in writing
and signed and acknowledged by a majority of the arbitrators, if more than
one; and by the sole arbitrator, if there is only one. Each party shall be furnished
with a copy of the award. The arbitrators in their award may grant any remedy
or relief which they deem just and equitable and within the scope of the
agreement of the parties, which shall include, but not be limited to, the specific
performance of a contract.

Section 23.Confirmation of award. - At any time within one month after the
award is made, any party to the controversy which was arbitrated may apply to
the court having jurisdiction, as provided in section twenty-eight, for an order
confirming the award; and thereupon the court must grant such order unless the
award is vacated, modified or corrected, as prescribed herein. Notice of such
motion must be served upon the adverse party or his attorney as prescribed by
law for the service of such notice upon an attorney in action in the same court.

Section 24.Grounds for vacating award. - In any one of the following cases, the
court must make an order vacating the award upon the petition of any party to
the controversy when such party proves affirmatively that in the arbitration
proceedings:

(a) The award was procured by corruption, fraud, or other undue means; or

(b) That there was evident partiality or corruption in the arbitrators or any of
them; or

(c) That the arbitrators were guilty of misconduct in refusing to postpone the
hearing upon sufficient cause shown, or in refusing to hear evidence pertinent
and material to the controversy; that one or more of the arbitrators was
disqualified to act as such under section nine hereof, and wilfully refrained from
disclosing such disqualifications or of any other misbehavior by which the rights
of any party have been materially prejudiced; or

(d) That the arbitrators exceeded their powers, or so imperfectly executed them,
that a mutual, final and definite award upon the subject matter submitted to
them was not made.

Where an award is vacated, the court, in its discretion, may direct a new
hearing either before the same arbitrators or before a new arbitrator or
arbitrators to be chosen in the manner provided in the submission or contract for
the selection of the original arbitrator or arbitrators, and any provision limiting the
time in which the arbitrators may make a decision shall be deemed applicable
to the new arbitration and to commence from the date of the court's order.

Where the court vacates an award, costs, not exceeding fifty pesos and
disbursements may be awarded to the prevailing party and the payment
thereof may be enforced in like manner as the payment of costs upon the
motion in an action.

(Basahinlangdawito)

Section 25.Grounds for modifying or correcting award. - In any one of the


following cases, the court must make an order modifying or correcting the
award, upon the application of any party to the controversy which was
arbitrated:

(a) 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; or
(b) Where the arbitrators have awarded upon a matter not submitted to them,
not affecting the merits of the decision upon the matter submitted; or

(c) 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.

The order may modify and correct the award so as to effect the intent thereof
and promote justice between the parties.

In other words, Read REPUBLIC ACT NO. 876

AN ACT TO AUTHORIZE THE MAKING OF ARBITRATION AND SUBMISSION


AGREEMENTS, TO PROVIDE FOR THE APPOINTMENT OF ARBITRATORS AND THE
PROCEDURE FOR ARBITRATION IN CIVIL CONTROVERSIES, AND FOR OTHER
PURPOSES

Section 1.Short Title. - This Act shall be known as "The Arbitration Law."