Brief History

Reference:https://www.jus.uio.no/lm/un.electronic.commerce.model.law.1996/histo
ry.background.html
http://shodhganga.inflibnet.ac.in/bitstream/10603/140985/8/07%20chapter%201.pdf
 Brief History

The UNCITRAL arbitration rules were adopted by the United Nations

Commission on International Trade Law in April 1976 which was
approved by the General Assembly Resolution no: 2205 on Dec.15, 1966.
The UNCITRAL was established when world trade began to expand
dramatically in the 1960s.
 Brief History

The UNCITRAL at the beginning of its work to be a core of legal

representative of governments got some of the United Nations
memberships.
The UNCITRAL’s original members comprised of only 29 states but gradually
it expanded its members to 36. The commission has its annual session at
alternate years at its headquarters in New York and at international cen tre
at Vienna.
 Brief History

The UNCITRAL Rules are well-known for its works in the field of
international commercial arbitration adopted in its first session in 1968.
 Brief History

After considering a number of suggestions by member states, the

commission adopted nine subject areas as the basis of its work
programme which include; international commercial arbitration,
insurance, international payments, international sale of Goods,
transportation, intellectual property, the elimination of discrimination
in laws affecting internationaltrade, agency and the legalization of
documents.
 Currently

The Commission is composed of sixty member States elected by the General

Assembly. Membership is structured so as to be representative of the
world's various geographic regions and its principal economic and legal
systems. Members of the Commission are elected for terms of six years, the
terms of half the members expiring every three years.
As from 27 June 2016, the members of UNCITRAL, and the
years when their memberships expire, are:
Argentina 2022 Armenia 2019 Australia 2022 Austria 2022 Belarus 2022
Brazil 2022 Bulgaria 2019 Burundi 2022 Cameroon 2019 Canada 2019
Chile 2022 China 2019 Colombia 2022 Côte d'Ivoire 2019 Czechia 2022
Denmark 2019 Ecuador 2019 El Salvador 2019 France 2019 Germany
2019 Greece 2019 Honduras 2019 Hungary 2019 India 2022 Indonesia
2019 Iran (Islamic Republic of) 2022 Israel 2022 Italy 2022 Japan 2019
Kenya 2022 Kuwait 2019 Lebanon 2022 Lesotho 2022 Liberia 2019
Libya 2022 Malaysia 2019 Mauritania 2019 Mauritius 2022 Mexico 2019
Namibia 2019 Nigeria 2022 Pakistan 2022 Panama 2019 Philippines
2022 Poland 2022 Republic of Korea 2019 Romania 2022 Russian
Federation 2019 Sierra Leone 2019 Singapore 2019 Spain 2022 Sri
Lanka 2022 Switzerland 2019 Thailand 2022 Turkey 2022 Uganda 2022
United Kingdom of Great Britain and Northern Ireland 2019 United
States of America 2022 Venezuela (Bolivarian Republic of) 2022
Zambia 2019
 UNCITRAL Model Law on
International Commercial
Arbitration

http://www.uncitral.org/uncitral/en/uncitral_texts/arbitrati
on/2010Arbitration_rules.html
 CHAPTER I. GENERAL PROVISIONS

• Article 1. Scope of application1

• (1) This Law applies to international commercial arbitration, subject to any
agreement in force between this State and any other State or States.
 (3) An arbitration is international if:

A. the parties to an arbitration agreement have, at the time of the conclusion of that
agreement, their places of business in different States; or
B. one of the following places is situated outside the State in which the parties have their
places of business:
C. the place of arbitration if determined in, or pursuant to, the arbitration agreement;
D. any place where a substantial part of the obligations of the commercial relationship is to
be performed or the place with which the subject-matter of the dispute is most closely
connected; or
E. the parties have expressly agreed that the subject matter of the arbitration agreement
relates to more than one country.
(5) This Law shall not affect any other law of this State by virtue of which
certain disputes may not be submitted to arbitration or may be submitted
to arbitration only according to provisions other than those of this Law.
 Article 2 A. International origin and general
principles

(1) In the interpretation of this Law, regard is to be had to its international

origin and to the need to promote uniformity in its application and the
observance of good faith.
(2) Questions concerning matters governed by this Law which are not
expressly settled in it are to be settled in conformity with the general
principles on which this Law is based.
 Article 3. Receipt of written communications
(1) Unless otherwise agreed by the parties:
• any written communication is deemed to have been received if it is
delivered to the addressee personally or if it is delivered at his place of
business, habitual residence or mailing address; if none of these can be
found after making a reasonable inquiry, a written communication is
deemed to have been received if it is sent to the addressee’s last-
known place of business, habitual residence or mailing address by
registered letter or any other means which provides a record of the
attempt to deliver it;
• the communication is deemed to have been received on the day it is so
delivered.
Article 3. Receipt of written communications

(2) The provisions of this article do not apply to communications in court

proceedings.
 Article 4. Waiver of right to object

A party who knows that any provision of this Law from which the parties may
derogate or any requirement under the arbitration agreement has not been
complied with and yet proceeds with the arbitration without stating his
objection to such non-compliance without undue delay or, if a time-limit is
provided therefor, within such period of time, shall be deemed to have
waived his right to object.
 Article 4. Waiver of right to object

A party who knows that any provision of this Law from which the parties may
derogate or any requirement under the arbitration agreement has not been
complied with and yet proceeds with the arbitration without stating his
objection to such non-compliance without undue delay or, if a time-limit is
provided therefor, within such period of time, shall be deemed to have
waived his right to object.
 Article 5. Extent of court intervention

In matters governed by this Law, no court shall intervene except where so

provided in this Law.
 Article 6. Court or other authority for certain
functions of arbitration assistance and
supervision

The functions referred to in articles 11(3), 11(4), 13(3), 14, 16(3)

and 34(2) shall be performed by ... [Each State enacting this
model law specifies the court, courts or, where referred to
therein, other authority competent to perform these
functions.]
 Article 4. Waiver of right to object

• A party who knows that any provision of this Law from which the parties
may derogate or any requirement under the arbitration agreement has not
been complied with and yet proceeds with the arbitration without stating
his objection to such non-compliance without undue delay or, if a time-limit
is provided therefor, within such period of time, shall be deemed to have
waived his right to object.
 Article 5. Extent of court intervention

• In matters governed by this Law, no court shall intervene except where so

provided in this Law.
 Article 6. Court or other authority for certain
functions of arbitration assistance and
supervision

• The functions referred to in articles 11(3), 11(4), 13(3), 14, 16(3) and 34(2)
shall be performed by ... [Each State enacting this model law specifies
the court, courts or, where referred to therein, other authority
competent to perform these functions.]
 CHAPTER II. ARBITRATION AGREEMENT

• Article 7.Definition and form of arbitration agreement

• (1) “Arbitration agreement” is an agreement by 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. An arbitration agreement may be in the form of an
arbitration clause in a contract or in the form of a separate agreement.
• (2) The arbitration agreement shall be in writing.
• (3) An arbitration agreement is in writing if its content is
recorded in any form, whether or not the arbitration
agreement or contract has been concluded orally, by conduct,
or by other means.
• (4) The requirement that an arbitration agreement be in
writing is met by an electronic communication if the
information contained therein is accessible so as to be
useable for subsequent reference;
• “electronic communication” means any communication that
the parties make by means of data messages; “data message”
means information generated, sent, received or stored by
electronic, magnetic, optical or similar means, including, but
not limited to, electronic data interchange (EDI), electronic
mail, telegram, telex or telecopy.
• (5) Furthermore, an arbitration agreement is in writing if it is
contained in an exchange of statements of claim and defense
in which the existence of an agreement is alleged by one
party and not denied by the other.
• (6) The reference in a contract to any document containing an
arbitration clause constitutes an arbitration agreement in
writing, provided that the reference is such as to make that
clause part of the contract.
 Article 8. Arbitration agreement and
substantive claim before court

• (1) A court before which an action is brought in a matter which is the subject of an
arbitration agreement shall, if a party so requests not later than when submitting
his first statement on the substance of the dispute, refer the parties to arbitration
unless it finds that the agreement is null and void, inoperative or incapable of being
performed.
• (2) Where an action referred to in paragraph (1) of this article has been brought,
arbitral proceedings may nevertheless be commenced or continued, and an award
may be made, while the issue is pending before the court.
 article 9. Arbitration agreement and interim
measures by court

• It is not incompatible with an arbitration agreement for a party to request,

before or during arbitral proceedings, from a court an interim measure of
protection and for a court to grant such measure.
 CHAPTER III. COMPOSITION OF ARBITRAL
TRIBUNAL

Article 10. Number of arbitrators

(1) The parties are free to determine the number of arbitrators.
(2) Failing such determination, the number of arbitrators shall be three.
 Article 11. Appointment of arbitrators

• (1) No person shall be precluded by reason of his nationality from acting as

an arbitrator, unless otherwise agreed by the parties.
• (2) The parties are free to agree on a procedure of appointing the
arbitrator or arbitrators.
• (3) Failing such agreement,
(4) Where, under an appointment procedure agreed upon by
the parties,
(a) a party fails to act as required under such procedure, or
(b) the parties, or two arbitrators, are unable to reach an
agreement expected of them under such procedure, or
(c) a third party, including an institution, fails to perform any
function entrusted to it under such procedure,
any party may request the court or other authority specified in
article 6 to take the necessary measure, unless the agreement
on the appointment procedure provides other means for
securing the appointment.
 Article 12. Grounds for challenge

(1) When a person is approached in connection with his possible appointment

as an arbitrator, he shall disclose any circumstances likely to give rise to
justifiable doubts as to his impartiality or independence.
• 2) An arbitrator may be challenged only if circumstances exist that give
rise to justifiable doubts as to his impartiality or independence, or if he does
not possess qualifications agreed to by the parties.
 Article 13. challenge pocedure

• 1) The parties are free to agree on a procedure for challenging an

arbitrator.
• (2) Failing such agreement, a party who intends to
challenge an arbitrator shall, within fifteen days after
becoming aware of the constitution of the arbitral tribunal or
after becoming aware of any circumstance referred to in
article 12(2), send a written statement of the reasons for the
challenge to the arbitral tribunal. Unless the challenged
arbitrator withdraws from his office or the other party agrees
to the challenge, the arbitral tribunal shall decide on the
challenge.
• 3) If a challenge under any procedure agreed upon by the
parties or under the procedure of paragraph (2) of this article
is not successful, the challenging party may request, within
thirty days after having received notice of the decision
rejecting the challenge, the court or other authority specified
in article 6 to decide on the challenge, which decision shall be
subject to no appeal; while such a request is pending, the
arbitral tribunal, including the challenged arbitrator, may
continue the arbitral proceedings and make an award.
 Article 14. Failure or impossibility to act

• 1) If an arbitrator becomes de jure or de facto unable to perform his

functions or for other reasons fails to act without undue delay, his mandate
terminates if he withdraws from his office or if the parties agree on the
termination.
Article 15. Appointment of substitute arbitrator

• Where the mandate of an arbitrator terminates because of his withdrawal

from office for any other reason or because of the revocation of his mandate
by agreement of the parties or in any other case of termination of his
mandate, a substitute arbitrator shall be appointed according to the rules
that were applicable to the appointment of the arbitrator being replaced.
• CHAPTER IV. JURISDICTION OF ARBITRAL TRIBUNAL
• Article 16. Competence of arbitral tribunal to rule on its
jurisdiction
• (1) The arbitral tribunal may rule on its own jurisdiction,
including any objections with respect to the existence or
validity of the arbitration agreement. For that purpose, an
arbitration clause which forms part of a contract shall be
treated as an agreement independent of the other terms of
the contract. A decision by the arbitral tribunal that the
contract is null and void shall not entail ipso jure the invalidity
of the arbitration clause.
• 2) A plea that the arbitral tribunal does not have
jurisdiction shall be raised not later than the submission of the
statement of defense. A party is not precluded from raising
such a plea by the fact that he has appointed, or participated
in the appointment of, an arbitrator. A plea that the arbitral
tribunal is exceeding the scope of its authority shall be raised
as soon as the matter alleged to be beyond the scope of its
authority is raised during the arbitral proceedings. The arbitral
tribunal may, in either case, admit a later plea if it considers
the delay justified.
• (3) The arbitral tribunal may rule on a plea referred to in
paragraph (2) of this article either as a preliminary question or
in an award on the merits. If the arbitral tribunal rules as a
preliminary question that it has jurisdiction, any party may
request, within thirty days after having received notice of that
ruling, the court specified in article 6 to decide the matter,
which decision shall be subject to no appeal; while such a
request is pending, the arbitral tribunal may continue the
arbitral proceedings and make an award
 Jurisdiction of arbitral tribunal
• Article 17 - Power to order interim measures

• Article 18 and 19– Conduct or commence of arbitral proceedings and deals with the
Fundamental procedural rights of the parties.
• Articles 19-22 – Determination of rules of procedures. The parties here agrees with
the language to be used.
• Granting the parties the autonomy and empowering the arbitral tribunal to decide
the matter.
• Article 23 – 24 deals with the Statement of claim and defense, and the
hearing and written proceedings.

• Article 25 – Default of a party. Only if due notice was given , may the
arbitral proceedings be continued in the absence of a party.
• Article 26 – expert appointed by arbitral tribunal.
• Article 27 – Court assistance in taking evidence.
 Making of award and termination of
proceedings
• Rules applicable to substance of dispute

• Article 28 – deals with the substantive law aspect of arbitration

• Articles 29-31 – deals with Making of award and other decisions.

• Awards and other decision shall be made by the majority of the arbitrators, except
on questions of procedure which may be left to the presiding arbitrator.
• Article 32 and 33 – deals with the contents of awards, termination of
proceedings and correction and interpretation of awards.
Article 34: Application for setting aside as exclusive recourse against
arbitral award
What are the Grounds for setting aside arbitral awards: (Party
instance)

• a party to the arbitration agreement referred to in article 7 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 thereon, under the law of this State

• 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
Article 34: Application for setting aside as exclusive recourse against
arbitral award:

What are the Grounds for setting aside arbitral awards:

• 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 submission to
arbitration, provided that, if the decisions on matters submitted to
arbitration can be separated from those not so submitted, only that
part of the award which contains decisions on matters not submitted
to arbitration may be set aside

• 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 a provision of this Law from
which the parties cannot derogate, or, failing such agreement, was
not in accordance with this Law
Article 34: Application for setting aside as exclusive recourse against arbitral
award:

What are the Grounds for setting aside arbitral awards: (Court Instance)

• The subject-matter of the dispute is not capable of settlement by arbitration

under the law of this State
• The award is in conflict with the public policy of this State
Article 34: Application for setting aside as exclusive recourse against arbitral award:

What are the steps in setting aside an arbitral award:

1. The applicant State must specify in its application the specific ground in setting aside
arbitral award and submit to arbitral tribunal who gave the award
2. The application must be made within 3months from the date on which the party making
that application had received the award or, if a request had been made under article 33,
from the date on which that request had been disposed of by the arbitral tribunal.
3. The court may suspend, where appropriate or by request of any party, any
proceedings for a period of time determined by it to give opportunity to resume the
arbitral proceedings or to take such actions to eliminate the ground for setting aside.
Article 35: Recognition and enforcement
An arbitral award, irrespective of the country in which it was made
• shall be recognized as binding and, upon application in writing to the
competent court, shall be enforced subject to the provisions of this article and
of article 36
• The party relying on an award or applying for its enforcement shall supply the
original award or a copy thereof. If the award is not made in an official
language of this State, the court may request the party to supply a translation
thereof into such language
Article 35: Recognition and enforcement

Grounds for refusing recognition or enforcement

At the request of the parties:
• (a) a party to the arbitration agreement referred to in article 7 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 thereon, under the law of the
country where the award was made
• (b) the party against whom the award is invoked was not given proper notice of
the appointment of an arbitrator or of the arbitral proceedings or was
otherwise unable to present his case
• (c) the award deals with a dispute not contemplated by or not falling within the
terms of the submission to arbitration, or it contains decisions on matters
beyond the scope of the submission to arbitration, provided that, if the
decisions on matters submitted to arbitration can be separated from those not
so submitted, that part of the award which contains decisions on matters
submitted to arbitration may be recognized and enforced
Article 35: Recognition and enforcement

Grounds for refusing recognition or enforcement

At the request of the parties:
• (d) the composition of the arbitral tribunal or the arbitral procedure was not in
accordance with the agreement of the parties or, failing such agreement, was
not in accordance with the law of the country where the arbitration took place
• (e) 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, or under the law of which, that
award was made
Article 35: Recognition and enforcement

Grounds for refusing recognition or enforcement

At the instance of the court:
• the subject-matter of the dispute is not capable of settlement by arbitration
under the law of this State
• the recognition or enforcement of the award would be contrary to the public
policy of this State.

If an application for setting aside or suspension of an award has been made to a

court referred to in paragraph (1)(a)(e) of this article, the court where recognition
or enforcement is sought may, if it considers it proper, adjourn its decision and
may also, on the application of the party claiming recognition or enforcement of
the award, order the other party to provide appropriate security
 A.M. No. 07-11-08-SC
SPECIAL RULES OF COURT ON ALTERNATIVE DISPUTE
RESOLUTION
September 01, 2009
Guidelines in Recognition, Enforcement and Setting Aside of an International
Commercial Arbitration Award: (Rule 12 AM NO. 07-11-08-SC)

Who may request recognition and enforcement or setting aside?

- ANY PARTY to an international commercial arbitration in the Philippines
may petition the proper court to recognize and enforce or set aside an arbitral
award.
(it can be filed by a foreign juridical entity not limited only to the local or Philippine
Company in the Philippine Courts)
 A.M. No. 07-11-08-SC
SPECIAL RULES OF COURT ON ALTERNATIVE DISPUTE
RESOLUTION
September 01, 2009
Guidelines in Recognition, Enforcement and Setting Aside of an International
Commercial Arbitration Award:

When to file the petition?

• Petition to recognize and enforce - The petition for enforcement and
recognition of an arbitral award may be filed anytime from receipt of the
award. If, however, a timely petition to set aside an arbitral award is filed, the
opposing party must file therein and in opposition thereto the petition for
recognition and enforcement of the same award within the period for filing
an opposition.
 A.M. No. 07-11-08-SC
SPECIAL RULES OF COURT ON ALTERNATIVE DISPUTE
RESOLUTION
September 01, 2009
Guidelines in Recognition, Enforcement and Setting Aside of an International
Commercial Arbitration Award:

When to file the petition?

• Petition to set Aside - The petition to set aside an arbitral award may only be
filed within three (3) months from the time the petitioner receives a copy
thereof. If a timely request is made with the arbitral tribunal for correction,
interpretation or additional award, the three (3) month period shall be
counted from the time the petitioner receives the resolution by the arbitral
tribunal of that request.
 A.M. No. 07-11-08-SC
SPECIAL RULES OF COURT ON ALTERNATIVE DISPUTE
RESOLUTION
September 01, 2009

Guidelines in Recognition, Enforcement and Setting Aside of an International Commercial

Arbitration Award:

When to file the petition?

• Petition to set Aside
A petition to set aside can no longer be filed after the lapse of the three (3) month period. The
dismissal of a petition to set aside an arbitral award for being time-barred shall not
automatically result in the approval of the petition filed therein and in opposition thereto for
recognition and enforcement of the same award. Failure to file a petition to set aside shall
preclude a party from raising grounds to resist enforcement of the award.
 A.M. No. 07-11-08-SC
SPECIAL RULES OF COURT ON ALTERNATIVE DISPUTE
RESOLUTION
September 01, 2009
Guidelines in Recognition, Enforcement and Setting Aside of an International
Commercial Arbitration Award:

Where is the Venue?

A petition to recognize and enforce or set aside an arbitral award may, at the
option of the petitioner, be filed with the Regional Trial Court:
a) where arbitration proceedings were conducted;
b) where any of the assets to be attached or levied upon is located;
c) where the act to be enjoined will be or is being performed
 A.M. No. 07-11-08-SC
SPECIAL RULES OF COURT ON ALTERNATIVE DISPUTE
RESOLUTION
September 01, 2009

Guidelines in Recognition, Enforcement and Setting Aside of an International

Commercial Arbitration Award:

Where is the Venue?

d) where any of the parties to arbitration resides or has its place of business;
or
e) In the National Capital Judicial Region.
 A.M. No. 07-11-08-SC
SPECIAL RULES OF COURT ON ALTERNATIVE DISPUTE
RESOLUTION
September 01, 2009
Guidelines in Recognition, Enforcement and Setting Aside of an International
Commercial Arbitration Award:

What are the grounds to set-aside or resist enforcement?

“SAME GROUNDS AS STATED IN UNCITRAL MODEL LAW ARTICLE 34 FOR

BOTH PARTY INSTANCE AND COURT INSTANCE “
 A.M. No. 07-11-08-SC
SPECIAL RULES OF COURT ON ALTERNATIVE DISPUTE
RESOLUTION
September 01, 2009

Guidelines in Recognition, Enforcement and Setting Aside of an International Commercial

Arbitration Award:

What are the grounds to set-aside or resist enforcement?

In addition:
The petition to set-aside or a pleading resisting the enforcement of an arbitral award on the
ground that a party was a minor or an incompetent shall be filed only on behalf of the minor or
incompetent and shall allege that
(a) the other party to arbitration had knowingly entered into a submission or agreement with
such minor or incompetent, or
(b) the submission to arbitration was made by a guardian or guardian ad litem who was not
authorized to do so by a competent court.
 A.M. No. 07-11-08-SC
SPECIAL RULES OF COURT ON ALTERNATIVE DISPUTE
RESOLUTION
September 01, 2009
Guidelines in Recognition, Enforcement and Setting Aside of an International
Commercial Arbitration Award:

Procedure in Recognition, Enforcement and Setting Aside of an ICAA

a. There must be a petition to the RTC specifying such grounds prescribed by law that
governs International commercial arbitration award

NOTE: Any other recourse from the arbitral award, such as by appeal or petition for
review or petition for certiorari or otherwise, shall be dismissed by the court.
 A.M. No. 07-11-08-SC
SPECIAL RULES OF COURT ON ALTERNATIVE DISPUTE
RESOLUTION
September 01, 2009

Guidelines in Recognition, Enforcement and Setting Aside of an International

Commercial Arbitration Award:

Procedure in Recognition, Enforcement and Setting Aside of an ICAA

b. The petition shall be verified by a person who has personal knowledge of
the facts stated therein
c. The petition must be complete as to contents (see Rule 12.7 AM 07-11-08
on full requirements)
 A.M. No. 07-11-08-SC
SPECIAL RULES OF COURT ON ALTERNATIVE DISPUTE
RESOLUTION
September 01, 2009
Guidelines in Recognition, Enforcement and Setting Aside of an International
Commercial Arbitration Award:

Procedure in Recognition, Enforcement and Setting Aside of an ICAA

d. Upon finding that the petition filed is sufficient both in form and in substance, the
court shall cause notice and a copy of the petition to be delivered to the
respondent directing him to file an opposition thereto within fifteen (15) days
from receipt of the petition.

The petitioner may within fifteen (15) days from receipt of the petition to set aside in
opposition to a petition to recognize and enforce, or from receipt of the petition to
recognize and enforce in opposition to a petition to set aside, file a reply.
 A.M. No. 07-11-08-SC
SPECIAL RULES OF COURT ON ALTERNATIVE DISPUTE RESOLUTION
September 01, 2009

Guidelines in Recognition, Enforcement and Setting Aside of an International

Commercial Arbitration Award:

Procedure in Recognition, Enforcement and Setting Aside of an ICAA

e. The court will require the parties to submit documents

If the court finds that the issue between the parties is mainly one of law:
the parties may be required to submit briefs of legal arguments, not more than fifteen
(15) days from receipt of the order, sufficiently discussing the legal issues and the legal
basis for the relief prayed for by each of them. If the court finds that the issue between
the parties is mainly one of law, the parties may be required to submit briefs of legal
arguments, not more than fifteen (15) days from receipt of the order, sufficiently
discussing the legal issues and the legal basis for the relief prayed for by each of them.
 A.M. No. 07-11-08-SC
SPECIAL RULES OF COURT ON ALTERNATIVE DISPUTE RESOLUTION
September 01, 2009

Guidelines in Recognition, Enforcement and Setting Aside of an International Commercial

Arbitration Award:

Procedure in Recognition, Enforcement and Setting Aside of an ICAA

e. The court will require the parties to submit documents

If the court finds from the petition or petition in opposition thereto that there are issues of fact
relating to the ground(s) relied upon for the court to set aside:
it shall require the parties within a period of not more than fifteen (15) days from receipt of the
order simultaneously to submit the affidavits of all of their witnesses and reply affidavits within
ten (10) days from receipt of the affidavits to be replied to. There shall be attached to the
affidavits or reply affidavits, all documents relied upon in support of the statements of fact in
such affidavits or reply affidavits.
 A.M. No. 07-11-08-SC
SPECIAL RULES OF COURT ON ALTERNATIVE DISPUTE RESOLUTION
September 01, 2009

Guidelines in Recognition, Enforcement and Setting Aside of an International

Commercial Arbitration Award:

Procedure in Recognition, Enforcement and Setting Aside of an ICAA

f. If on the basis of the petition, the opposition, the affidavits and reply affidavits of
the parties, the court finds that there is a need to conduct an oral hearing, the
court shall set the case for hearing. During the hearing, the affidavits of witnesses
shall take the place of their direct testimonies and they shall immediately be
subject to cross-examination thereon. The court shall have full control over the
proceedings in order to ensure that the case is heard without undue delay.

*This case shall have preference over other cases before the court, except criminal
cases.
 A.M. No. 07-11-08-SC
SPECIAL RULES OF COURT ON ALTERNATIVE DISPUTE
RESOLUTION
September 01, 2009
Guidelines in Recognition, Enforcement and Setting Aside of an International Commercial
Arbitration Award:

Procedure in Recognition, Enforcement and Setting Aside of an ICAA

g. The Court will render judgment

The court when asked to set aside an arbitral award:

Where appropriate and upon request by a party, suspend the proceedings for a period of time
determined by it to give the arbitral tribunal an opportunity to resume the arbitral proceedings
or to take such other action as in the arbitral tribunal’s opinion will eliminate the grounds for
setting aside. The court, in referring the case back to the arbitral tribunal may not direct it to
revise its award in a particular way, or to revise its findings of fact or conclusions of law or
otherwise encroach upon the independence of an arbitral tribunal in the making of a final
award. (In compliance with Rule 35 of UNICTRAL)
 A.M. No. 07-11-08-SC
SPECIAL RULES OF COURT ON ALTERNATIVE DISPUTE RESOLUTION
September 01, 2009

Guidelines in Recognition, Enforcement and Setting Aside of an International

Commercial Arbitration Award:

Procedure in Recognition, Enforcement and Setting Aside of an ICAA

g. The Court will render judgment

The court when asked to set aside an arbitral award may also:
When the preliminary ruling of an arbitral tribunal affirming its jurisdiction to act on
the matter before it had been appealed by the party aggrieved by such preliminary
ruling to the court, suspend the proceedings to set aside to await the ruling of the
court on such pending appeal or, in the alternative, consolidate the proceedings to set
aside with the earlier appeal.
 A.M. No. 07-11-08-SC
SPECIAL RULES OF COURT ON ALTERNATIVE DISPUTE
RESOLUTION
September 01, 2009
Guidelines in Recognition, Enforcement and Setting Aside of an International
Commercial Arbitration Award:

Procedure in Recognition, Enforcement and Setting Aside of an ICAA

g. The Court will render judgment

Recognition and enforcement of foreign award:

Unless a ground to set aside an arbitral award under Rule 12.4 above is fully established,
the court shall dismiss the petition. If, in the same proceedings, there is a petition to
recognize and enforce the arbitral award filed in opposition to the petition to set aside,
the court shall recognize and enforce the award.
 A.M. No. 07-11-08-SC
SPECIAL RULES OF COURT ON ALTERNATIVE DISPUTE
RESOLUTION
September 01, 2009
Guidelines in Recognition, Enforcement and Setting Aside of an International
Commercial Arbitration Award:

Procedure in Recognition, Enforcement and Setting Aside of an ICAA

A Philippine court shall not set aside a foreign arbitral award but may refuse it
recognition and enforcement on any or all of the following grounds:

“Same Grounds as stated in Article 35 of UNCITRAL Model Law for both party
and court instance”
 Frequently Asked Question in Foreign Arbitration
awards:
ARE FOREIGN ARBITRAL AWARDS CONFIRMED BY A FOREIGN COURT ENFORCED AS FOREIGN COURT
JUDGEMENTS? (2007 BAR QUESTION)

NO, They may be enforced under Sec 44 of RA 9285 (ADR Act of 2004). Under the said law, the
United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards
(1958 NY Convention) shall govern the recognition and enforcement of arbitral awards
covered by such convention.
A Foreign Arbitral Award, when confirmed by a court of a foreign country, shall be recognized
and enforced as a foreign arbitral award and not as a judgment of a foreign court.
A Foreign arbitral award when confirmed by the RTC, shall be enforced in the same manner as
final and executory decisions of court of law in the Philippines (Sec 44, RA 9285)
 Frequently Asked Question in Foreign Arbitration
awards:

ARE FOREIGN ARBITRAL AWARDS BY A COUNTRY NOT A SIGNATORY TO THE 1958 NEW YORK
CONVENTION BE RECOGNIZED AND ENFORCED IN THE PHILIPPINES?

YES, Provided The court may, upon grounds of COMITY and RECIPROCITY,
recognize and enforce a foreign arbitral award made in a country that is not a
signatory to the New York Convention as if it were a Convention Award (Rule 13.4
AM No. 07-11-08)
 Frequently Asked Question in Foreign
Arbitration awards:
WHAT ARE THE APPLICABLE LAW OR TREATY WHEN FOREIGN ARBITRATION AWARDS BY
A MEMBER OR NON-MEMBER STATE?

IF MEMBER STATE:
New York Convention of 1958 as provided in RA 9285 Sec 42 (ADR Act of
2004)

IF NON-MEMBER STATE:
RA 9285 sec 43 Consistent with Article 35 of the UNCITRAL Model Law
 Frequently Asked Question in Foreign
Arbitration awards:

WHAT ARE THE APPLICABLE LAW OR TREATY FOR DOMESTIC ARBITRATION AWARDS

IF ADVERSE PARTY IS FOREIGN:

UNCITRAL Model Law as provided by RA 9285 Sec 19.

IF ADVERSE PARTY IS LOCAL:

RA 876 as provided by RA 9285 Sec 32
 CASE #1:
Korea Technologies Co., Ltd. vs.
Hon. Alberto A. Lerma and Pacific General Steel Manufacturing Corporation,
G.R. No. 143581, Jan. 7, 2008.

“An arbitration clause, stipulating that the arbitral award is final and binding,
does not oust our courts of jurisdiction as the international arbitral award, the
award of which is not absolute and without exceptions, is still judicially
reviewable under certain conditions provided for by the UNCITRAL Model Law
on ICA as applied and incorporated in R.A. [No.] 9285.”
 CASE #1:
Korea Technologies Co., Ltd. vs.
Hon. Alberto A. Lerma and Pacific General Steel Manufacturing Corporation,
G.R. No. 143581, Jan. 7, 2008.

“The Model Law is not a law on its own. “Until the Philippine Congress
adopted it as part of the ADR Act of 2004, the Model Law on International
Commercial Arbitration was not part of our law.” Finally, the UNCITRAL
Arbitration Rules was also a product of UNCITRAL adopted during its ninth
session. “The United Nations General Assembly approved Resolution No.
31/98 on December 15, 1976 recommending the use of Arbitration Rules in the
settlement of disputes arising in the context of international commercial
relations, particularly by reference to the Arbitration Rules in commercial
contracts.”