ARBITRATION IN GENERAL

Concept
-voluntary dispute resolution process
-w/ one or more arbitrators
-appointed in accordance w/ the parties or rules
promulgated in the ADR act
-resolve a dispute by rendering an award
Arbitration
-arrangement for
taking and abiding by
the judgement of
selected persons in
some disputed
manner

Court Trial Sys

-established tribunal
of justice
-formalities, delay,
expense, and vexation
of ordinary litigation

Arbitration
-arbitrator that
decides the dispute
-renders an arbitral
award to conclude the
arbitral proceeding
-a merit/evidenced
base

Mediation
-parties themselves
execute MSA

Kind of Arbitration
Types ->VOLUNTARY(ADR and IRR)
Compulsory
Voluntary
-settlement of labor
-reference of a dispute
disputes by a gov
to an impartial body,
agency which has the
the members of which
authority to
are chose by the
investigate and to
parties
make an award
-parties freely consent
binding on all parties
in advance to abide
-parties are compelled by the arbitral award
to accept the
issued after the
resolution of their
proceedings where
dispute through
both parties had the
arbitration by a 3rd
opportunity to be
party
heard
Classification based on the presence of foreign
elements
a) Domestic-not international character;
place of business, arbitration,
performance of a substantial part of the
oblig and SM is most closely connected all
located in the Phil
*if arbitration is conducted in the Phil
domestic pa din irrespective of the
presence of foreign elements
b) International commercial or foreign
Instances:
1)place of business sa conclusion
sa diff states
2)place of arbitration provided in
their agreement is outside of the
PHIL

3)Substantial part of the oblig

perforemed or place of subj matter
of arbitration is mostly connected
outside the Phil
4)They expressly agreed that the
SM of arbitration agreement relates
to more than one country
International Commercial Arbitration
Procceding conducted in the Phil-under
the ADR act is domestic and
international in character
Outside the Phil-foreign arbitration
Commercial-matters arising from all
relationships of a commercial
nature whether contractual or not
-irr is descriptive bec. Nag
enumerate lng
ADR ACT- opened the Phil as a venue for
international commercial
arbitration
Policy on Arbitration
-being inexpensive, speedy, and amicable method
of settling disputes
-encouraged by SC to unclog judicial dockets
-hastens the resolution of disputes especially the
commercial kind
Objectives of Arbitration
-provide speedy and inexpensive method of
settling disputes
-by allowing the parties to avoid formalities
-delay,expense and aggravation which commonly
accompany ordinary litigation
-especially litigation which goes through the
hierarcy of courts
Arbitrator
-persobn appointed to render an award alone or
with others
-bound by the rules of law and equity in rendering
an award
Arbiter-may use his own discretion in the
performance of his function
-voluntary arbitrators:
-by nature act in a quasi-judicial capacity(their
decisions are w/in the scope of judicial
review)
-quasi-judicial instrumentality-voluntary
arbitrator or the panel may not strictly be
considered as a quasi still both he and the
panel are comprehended w/in tis concept
ARBITRATION AGREEMENT
-agreement by the parties to submit to arbitration
all or certain disputes which have arisen
-which may arise bet. Them in respect of a
defined legal rel.; whether contractual or
not
-may be included in the contrct it is referred as
ARIBTRATION CLAUSE or a
COMPROMISSOIRE OR SEP. CONTRACT or

in the form of a reference in a written

contract
*Arbitration clause-liberally construed
consistent w/ the policy of encouraging
ADR methods
-such clause is susceptible of an
interpretation
-any doubt should be resolved in favour of
arbitration
-nature: y may contract? For it to be BINDING
Formal requirements:
a)subscribed by parties to be charged or by his
lawful agent
b) in writing
:Contractual siya thus must have the essential
elements of acontract COC(consent, cause
and lawful object)
Including an agreement to arbitrate some
specific thing and and agreement to abide
by the award either in express language
or by implication
2 Modes of Submitting a Dispute or Controversy to
Arbitration :
-depending on the existence
-pendency of dispute or
-controversy submitted for resolution
a)agreement to submit to arbitration-some future
dispute usually stipulated upon in a civil
contract bet. The parties
b)submission agreement-an existing matter of
difference to arbitrators
Confidential of Arbitration Proceedings.
GR:The arbitration proceedings, including the
records, evidence and the arbitral award,
shall be considered confidential and shall
not be published
except
(1) with the consent of the parties,
(2) for the limited purpose of
disclosing to the court of relevant
documents in cases where resort
to the court is allowed herein.
Provided, however, that the court
in which the action or the appeal
is pending may issue a protective
order to prevent or prohibit
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 authorized
disclosure thereof.
Arbitral Tribunal
-no of arbitratiors: GR:parties are free to
determine; default:3
-Appointment of arbitrators

-no person shall be precluded by reason of

nationality.UNLESS otherwise agreed by the
parties
Failing such agreement:
in an arbitration with three (3)
arbitrators, each party shall appoint
one arbitrator, and the two (2)
arbitrators thus appointed shall
appoint the third arbitrator; if a party
fails to appoint the arbitrator within
thirty (30) days of receipt of a request
to do so from the other party, or if the
two (2) arbitrators fail to agree on the
third arbitrator within thirty (30) days
of their appointment, the appointment
shall be made, upon request of a
party, by the appointing authority
Appointing authority
Failing such agreement
If 3rd party fails to perform any function
entrusted to it under procedure not be
subject to a motion for reconsideration or
appeal. The appointing authority shall have in
appointing an arbitrator, due regard to any
qualifications required of the arbitrator by the
agreement of the parties and to such
considerations as are likely to secure the
appointment of an independent and impartial
arbitrator
and, in the case of a sole or third arbitrator,
shall take into account as well the advisability
of
appointing an arbitrator of a nationality other
than those of the parties
(i)

Qualifications of Arbitrator:
(i)
Shall disclose any circumstance likely
to give rise to justifiable doubts as to
his/her impartiality or independence
(ii)
An arbitrator may be challenged only
if circumstances exist that give rise to
justifiable doubts as to his/her
impartiality or independence, or if
he/she does not possess qualifications
agreed to by the parties.
Challenge: A party may challenge an arbitrator
appointed by him/her, or in whose appointment
he/she has participated, only for reasons of which
he/she becomes aware after the appointment has
been made.
Appointment of Substitute Arbitrator: , a
substitute arbitrator shall be appointed according
to the
rules that were applicable to the appointment of
the arbitrator being replaced.
-due to the challenge or failure or
impossibility to act
DOCTRINE OF SEPARABILITY
-aka doctrine of severability

-arbitration agreement is independent of the main

contract even if its contained in an
arbitration clause
-treated as a separate contract even if the validity
of the main contract is challenged
-allegations of fraud and duress in the execution
of the contract are matters w/in
jurisdiction of the ordinary courts of law
-a party cannot rely on the contract and claim
rights or oblig under it and at the same
time impugn its existence or validity
-even if the party repudiated the main contract is
not prevented from enforcing the
arbitration clase
Due Process in Arbitral Proceedings
-ADR providers act in quasi capacity or
instrumentalities
- the principles of administrative due process
equally apply to arbitral proceedings ex
right to cross-examination witnesses
Judicial Review of Court Intervention
-decisions aritral tribunal are subj. to judicial
review
-inclusion of an arbitration clause does not ipso
facto divest the courts jurisdiction
-award still judicially reviewable under certain
conditions
Judicial remedies->
a)RTC-order to avacate the award sec 24
RA 876
b) CA- Rule 43 of the Rules of court
c)Certiorari under rule 65 of the Rules of
Court should the arbitrator acted w/o or in
excess of his jurisdiction
-Domestic arbitration:if the arbitral tribunal
decides to defer such ruling until the
rendition of the arbitral award; none of the
parties can seek judicial relief from the
deferment
*However, the parties can await the
rendition of the final arbitral award and
raise the jurisdictional issues before the
courts
*not every question of fact is reviewable by the
courts thus limited:clear showing that the
arbitral tribunal committed egregious and
hurtful to one party to constitute grave
abuse of discretion
-arbitration and court action are not compatible
thus may proceed ate the same time
independently of each other
-Prior sa ADR act the court is given the discretion
to refuse a referral to ADR if the
arbitration will not be decisive and speedy
or will result multiplicity of suits
-Under Special Rules of Court on ADR:
The court may issue and order directing
the inclusion in the arbitration of those
parties who are not bound by the
arbitration agremment provided they do
not object

-Policy of party autonomy

Gr: No court shall intervene in arbitration
proceedings
Xpn: Instances provided for under ADR act
-parties may apply w/ the courts for protective
measures and enforcement, assistance in
taking evidence, assistance and
supervision, court intervention in case of
failure of arbitral tribunal to act
Interim Measure in Arbitration
-interim measures or interim measures of
protection or provisional reliefs
-ancillary remedies intended for the protection of
the SM of the dispute
-pendency of arbitral proceedings does not
foreclose resort to the courts for
provisional reliefs
-arbitral dispute allows the application of a party
to a judicial authority for interim or
conservatory measures
-governed by SPECIAL ADR rules
-include but not limited:preliminary injunction,
appointment of receivers, detention of
prp, inspection or preservation of prop
-as a rule it is applied with and secured from the
arbitral tribunal
-instances they cannot grant: arbitral tribunal is
not yet constituted, or if constituted no
power to act, or unable to act effectively
- Such relief may be granted:
(i) to prevent irreparable loss or injury:
(ii) to provide security for the performance of any
obligation;
(iii) to produce or preserve any evidence; or
(iv) to compel any other appropriate act or
omission.
*will be binding
Interim or provisional relief is requested
by written application transmitted by
reasonable means to the arbitral tribunal and the
party against whom relief is sought,
describing in appropriate details of the
precise relief, the party against whom the
relief is requested, the ground for the
relief, and the evidence supporting the
request
A party who does not comply with the order shall
be liable for all damages resulting from
noncompliance, including all expenses,
and reasonable attorney's fees, paid in
obtaining the order's judicial enforcement.
-provisional remedy under rules of court cannot
exist w/o principal cause of action
-ADR ACT; ancillary remediesa court cannot refuse
to grant, implement or enforce the

petition for an interim measure on the

sole ground that the petition is merely an
ancillary relief
-differ in Rules of court provisional remedies; filed
before regular courts can stand by
themselves despite the pendency of the
arbitration of the principal action before
the arbitral tribunal
Interpretation of the Act. - In interpreting the Act,
the court shall have due regard to the
policy of the law in favor of arbitration.
Where action is commenced by or against
multiple parties, one or more of whom are
parties who are bound by the arbitration
agreement although the civil action may
continue as to those who are not bound by
such arbitration agreement.
"Appointing Authority" as used in the Model Law
shall mean the person or institution
named in the arbitration agreement as the
appointing authority; or the regular
arbitration arbitration institution under
whose rules the arbitration is agreed to be
conducted. Where the parties have agreed
to submit their dispute to institutional
arbitration rules, and unless they have
agreed to a different procedure, they shall
be deemed to have agreed to procedure
under such arbitration rules for the
selection and appointment of arbitrators.
In ad hoc arbitration, the default
appointment of an arbitrator shall be
made by the National President of the
Integrated Bar of the Philippines (IBP) or
his duly authorized representative.
Arbitral Award
-The award shall be made in writing and shall be
signed by the arbitrator or arbitrators. In
arbitral proceedings with more than one
arbitrator, the signatures of the majority
of all members of the arbitral tribunal
shall suffice, provided that the reason for
any omitted signature is stated.
-Upon the final award the arbitral proceedings are
terminated. the arbitral tribunal may, for
special reasons, reserve in the final award
or order, a hearing to quantify costs and
determine which party shall bear the costs
or the division thereof as may be
determined to be equitable. Pending
determination of this issue, the award
shall not be deemed final for purposes of
appeal, vacation, correction, or any postaward proceedings.
-A foreign arbitral award shall be
recognized as binding and, upon petition in writing
to the Regional Trial Court, shall be
enforced

Convention Award The New York

Convention shall govern the recognition
and enforcement of arbitral awards
covered by said Convention.
Non-Convention Award The recognition
and enforcement of foreign arbitral
awards not covered by the New York Convention
shall be done in accordance
with procedural rules to be promulgated by the
Supreme Court.

Setting aside the award:

(i)
Incapacity or agreement is not valid
(ii)
Not given proper notice of
appointment or arbitral proceedings
(iii)
Contains decisions on matters beyond
the scope of the submission to
arbitration
(iv)
The procedure was not in accordance
with the agreement oft the parties.
UNLESS was not in conflict with
ADR

1 AND 2 (Concept of Arbitration and

Classification)
Concept of Arbitration
As defined under the ADR Act, arbitration is 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 (Section 3, d, ADR ACT, Article
1.6, A, 3, IRR). It has also been
defined and distinguished from the
court trial system as follows:x x x
[A]n arrangement for taking and
abiding by the judgment of selected
persons in some disputed matter,
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. (Uniwide Sales Realty and
Resources Corporation v. Titan-Ikeda
Construction and Development
Corporation)
The primary distinction between arbitration and
mediation is that, in the former, it is
the arbitrator that decides the dispute
and renders an arbitral award to
conclude the arbitral proceeding;
while in the latter, it is the parties
themselves who enter into and
execute a mediated settlement

agreement to conclude the mediation

proceeding.
As to the role of evidence and the merits of the
case, arbitration is a merit/evidence
based form of ADR.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.
(Section 3, f, R.A. No. 9285)
ClassificationKinds of ArbitrationGenerally, there
are two types of arbitration,
compulsory and voluntary. Arbitration
is voluntary if it:x x x 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. (Uniwide
Sales Realty and Resources
Corporation v. Titan-Ikeda
Construction and Development
Corporation)On the other hand,
compulsory arbitration is:x x x 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
third part. (Benguet Corporation v.
Department of Environment and
Natural Resources-Mines Adjudication
Board; Reformist Union of R.B. Liner,
Inc. v. NLRC; Ludo and Luym
Corporation v. Saornido)
According to the ADR Act, arbitration is domestic if
it is not international in character
(Section 32, ADR Act). On the other
hand, arbitration is international if any
of the following instances occur
(Art.1.6, B, 8, IRR):1. The parties
places of business, which at the time
of 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 of 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; or4. The

parties have expressly agreed that the

subject matter of the arbitration
agreement relates to more than one
country.
Therefore, arbitration is domestic if the
components of parties places of
business, place of arbitration, place of
performance of a substantial part of
the obligation, and place where the
subject matter of the dispute is most
closely connected, are all located in
the Philippines.
Arbitration is foreign if conducted outside the
Philippines (A foreign arbitral award is
defined under Rule 1.11, d of the
Specil ADR Rules as one made in a
country other than the Philippines).
Under this definition, arbitration
conducted in the Philippines is
domestic irrespective of the presence
or absence of foreign elements.
Under the foregoing definitions, an international
commercial arbitration proceeding
conducted in the Philippines under the
auspices of the ADR Act is domestic
and international in character. On the
other hand, an international
commercial arbitration conducted
outside the Philippines is a foreign
arbitration.
Arbitration is commercial if it covers matters
arising from all relationships of
commercial nature, whether
contractual or not (Section 3, g, Article
1.6, B, 4, IRR). In defining the extent
of commercial relationships covered
by arbitration, the IRR sought to
expand rather than delimit its
coverage. Hence, the IRR, instead of
defining commercial relationships
gave examples thereof implying that
the enumeration is merely descriptive
and not exclusive.
By providing for a system of arbitration of an
international and commercial
character, the ADR Act of 2004
opened the Philippines as a venue for
international commercial arbitration.
Policy on ArbitrationIn Korea Technologies Co., Ltd.
V. Lerma, the Supreme Court had an
opportunity to reiterate the judicial
policy on arbitration in the following
manner:Being an inexpensive,
speedy and amicable method of
settling disputes, arbitration along
with mediation, conciliation and
negotiation is encouraged by the
Supreme Court. Aside from unclogging
judicial dockets, arbitration also
hastens the resolution of disputes,
especially of the commercial kind. It is

thus regarded as the wave of the

future in international civil and
commercial disputes. Brushing aside a
contractual agreement calling for
arbitration between the parties would
be a step backward.
Objectives of ArbitrationThe basic objective of
arbitration is to 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. (Del
Monte Corporation-USA v. Court of
Appeals)
3 & 4 Arbitration Agreement (Arts. 5.6 and
5.7, IRR; Secs. 2 and 4,
Arbitration Law)Since an agreement
to arbitrate is a contract, it must
satisfy the essential requisites of a
valid contract.Like in the case of
mediation and international
commercial arbitration, the consent to
arbitrate can either be a pre-causal
consent (agreement to submit to
arbitration) such as when the parties
agree in a contract to settle by
arbitration a controversy that will
arise between them; or a present
causal consent (submission
agreement) such as when the
controversy already exists between
the parties at the time of the
submission to arbitration. The
submission and contract shall be
valid, enforceable and irrevocable
except upon grounds provided by law
for the revocation of contracts.
Incapacity of partyWhere one of the
parties to the controversy is an infant,
or a person judicially declared to be
incompetent, the dispute is not
capable of arbitration, unless the
referral to arbitration is made by a
general or guardian ad litem. And the
incapacity of a party cannot be
invoked by a party who knowingly
entered into an arbitration agreement
with an incapacitated party.
Arbitration agreement must be in
writing and subscribed by the party
sought to be charged, or by his lawful
agent.A court before which an action
is brought on a matter which is the
subject of an arbitration agreement
shall, if at least one party so requests
not later than the pre-trial conference,
or upon the request of both parties

thereafter, refer the parties to

arbitration UNLESS it finds that the
arbitration agreement is null and void,
inoperative or incapable of being
performed. If the parties so request in
the same manner, the court may stay
the proceedings during the pendency
of the arbitration. In such case, the
court does not lose its jurisdiction over
the case and the proceedings are
merely stayed to await the rendition
of the arbitral award which shall be
enforced by the court.Moreover even
while the court proceedings are
pending, the arbitration can proceed
and an award may be made thereon.
The rule however, is different where
the issue involved is the challenge to
an arbitrator. In this case, the
elevation of the incident to a court
suspends the arbitration. When the
court action is a multi-party, and one
or more but not all of them 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,
however 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 those
originally bound by it do not object to
their inclusion.
Principle of SeparabilityIn most disputes, the
validity of the agreement is in
question. For instance, if a party
claims non-performance of the
agreement by the other party, the
latter will claim that the agreement is
invalid, if possible. However, in order
to conduct arbitration proceedings,
the arbitration clause should remain
unaffected by the claim of invalidity. In
this context, the doctrine of
separability has been introduced and
accepted in the practice of
international commercial arbitration.
The separability of the arbitration
clause from the underlying agreement
has been accepted as a principle
which allows for arbitration
proceedings related to an agreement
whose validity is put into question.
According to the separability principle,
the invalidity of the underlying
agreement will not have an impact on
the arbitration clause; likewise, the
invalidity of the arbitration clause will

not render the underlying agreement

invalid. In other words, the
requirements for validity of the
arbitration agreement may differ from
those sought for the validity of the
underlying agreement. For instance, in
Turkish law, a representative may
conclude a share purchase agreement
on behalf of the principal and this
does not necessitate that the
representative have specific authority
to do so. However, the same
representative needs specific
authority to conclude an arbitration
agreement on behalf of the same
principal. In such event, the provisions
of the share purchase agreement
concluded by the representative will
be valid, except for the arbitration
clause, due to lack of specific
authority1.Consequently, even if the
underlying agreement is pronounced
invalid for any reason, the arbitration
clause will remain valid; on the other
hand, if the arbitration clause is
invalid, the underlying contract will
remain valid and the dispute arising
from the underlying agreement will be
resolved before national courts.
Indeed, the arbitration clause and the
underlying agreement are two
different agreements despite the fact
that both exist within the same text.
While the underlying agreement
creates a relationship of obligation
between the parties, the arbitration
agreement solely addresses the
settlement of disputes between the
parties.Due to aforementioned
reasons, the principle of separability
establishes that the arbitration
agreement and the underlying
agreement have different qualities;
the arbitration agreement is juridically
autonomous and shall not be affected
when the main contract is rendered
invalid.Nonetheless, this principle
does not necessarily require that the
"fate" of these two agreements is
always different. Certain reasons
invalidating the underlying agreement
may affect the validity of the
arbitration agreement as well. For
instance, where either or both parties
are found to lack the capacity to have
entered into the agreements, both
agreements will be deemed invalid.
Similarly, the arbitration agreement
will be assigned to a third party if the
underlying agreement is assigned
(provided that the assignee consents

to arbitrate).The effect of the

separability of arbitration agreements
upon the choice of applicable law
should also be analyzed; i.e. whether
the law applicable to the underlying
agreement will be, automatically,
different from the law applicable to
the arbitration agreement by reason
of its separability. In other words, is
the choice of law applicable to the
main contract also applicable to the
arbitration agreement?This issue is
especially important for arbitration
clauses. Choice of law and arbitration
clauses are often stipulated in
international agreements; either as
part of the same phrase, or as two
paragraphs of the same article, or as
consecutive articles. In such cases, it
should be analyzed on a case by case
basis whether or not the applicable
law stated in the choice of law clause
shall apply to the arbitration
agreement or not.ConclusionThe
arbitration agreement is accepted as a
distinct agreement, separate from the
underlying agreement a concept
defined as the separability principle.
This principle prevents the validity of
one agreement from being affected by
the other one; it effectively
establishes the full autonomy of an
arbitration agreement and the
integrity of the arbitral process.
Nonetheless, the two may be
assessed together. However, it is
important to consider, because of the
separability of the arbitration
agreement, whether the choice of law
stipulated by the parties in the main
contract is applicable to the
arbitration agreement. Thus, dispute
resolution and choice of law clauses
should be drafted with the utmost
caution and care.
5-6Arbitrator-person appointed to render an
award, alone or with others, in a
dispute that is the subject of an
arbitration agreement. May use his
own discretion in the performance of
his functions. Appointment of
arbitratorsIf, 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.
Qualifications of arbitrators.Any
person appointed to serve as an
arbitrator must be of legal age, in fullenjoyment 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.ObligationsIf, 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.Arbitration
ProceedingsThe venue or place/s
where the arbitration proceeding may
be conducted in an office space, a
business center, a function room or
any suitable place agreed upon by the
parties and the arbitral tribunal, which
may vary per
session/hearing/conference
Confidential of Arbitration
Proceedings. - The arbitration
proceedings, including the records,
evidence and the arbitral award, shall
be considered confidential and shall
not be published except (1) with the
consent of the parties, or (2) for the
limited purpose of disclosing to the
court of relevant documents in cases
where resort to the court is allowed
herein. Provided, however, that the
court in which the action or the appeal
is pending may issue a protective
order to prevent or prohibit 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 authorized disclosure
thereof.After initial disclosure is made
and in the course of the arbitration
proceedings, when the arbitrator
discovers circumstances that are likely
to create a presumption of bias,
he/she shall immediately disclose
those circumstances to the parties. A
written disclosure is not required
where it is made during the arbitration
and it appears in a written record of
the arbitration proceedings.
6) ARBITRAL AWARDS
1.DOMESTIC AWARDS- at any time within 1
month after the award is made, any
party to the controversy which was
arbitrated may apply to the court
having jurisdiction for an order
confirming the award.

The court must grant such order unless the award

is vacated, modified or corrected (sec
23)
The confirmation of domestic award shall be made
by the RTC.
Domestic Arbitral Award, when confirmed, shall be
enforced in the same manner as final
and executor decisions of the RTC.
The CIAC arbitral award need not be confirmed by
the RTC to be executor as provided by
E.O 1008 (sec. 40)
VACATION AWARD
A party to a domestic arbitration may question the
arbitral award with the appropriate
RTC in accordance with rules of
procedure to be promulgated by the
Supreme court only on those grounds
enumerated under Sec. 25 of RA 876.
Any other ground raised against the
domestic arbitral award shall be
disregarded by the RTC.
NOTE: it is actually sec. 24 of the said law which
enumerated the grounds referred to
under the preceding section. The
grounds are:
1) the award was procured by corruption, fraud or
other undue means.
2) that there was evident partiality or corruption
in the arbitrators or any of them.
3) that the arbitrators are 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 or
4) 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.
2)FOREIGN ARBITRAL AWARDS
The New York convention shall govern the
recognition and enforcement of
arbitral awards covered by the said
convention (sec 42)
New York convention
It provides for a uniform set of rules on the
recognition and enforcement of
foreign arbitral awards.
The recognition and enforcement shall be filed
with the RTC. The procedural rules
shall provide that the party relying on
the award or applying for its
enforcement shall file with the court
the original or authenticated copy of
the award and the arbitration
agreement. If the award or agreement
was not made in any official

languages, the party shall supply a

duly certified translation thereof into
any of such languages. (sec 42)
A foreign Arbitral Award when confirmed by a
court of a foreign country/ RTC shall
be enforced as a foreign arbitral
award and not as a judgment of a
foreign court.
If the application for rejection or suspension of
enforcement of an award has been
made, the RTC may, if it considers it
proper, vacate his decision and may
also, on the application of the party
claiming recognition or enforcement
of award, order the party to provide
appropriate security. (sec. 42)
RECOGNITION AND ENFORCEMENT OF
FOREIGN ARBITRAL AWARDS NOT
COVERED BY THE NEW YORK
CONVENTION
The court, on grounds of comity and reciprocity,
recognize and enforce a non
convention award as a convention
award (sec. 43)
COMITY- the courtesy or a disposition to
accommodate a judicial decision or
award made in another jurisdiction. It
is a principle in accordance with the
courts of one state or jurisdiction will
give effect to the laws and judicial
decisions of another, not as a matter
of obligation but out of deference and
respect.
RECIPROCITY-it is founded on mutuality, it is
founded on mutuality. It is a relation
existing between two estates when
each of them gives the subjects of the
other certain privileges on condition
that its own subjects shall enjoy
similar privileges.
A foreign arbitral award when confirmed by the
RTC shall be in the same manner as
final and executory decisions of courts
of law of the Philippines. (sec 44)
A decision of the RTC confirming, vacating ,
setting aside, modifying or correcting
an arbitral award may be appealed to
the court of appeals.
REJECTION OF FOREIGN ARBITRAL AWARD a
party to a foreign arbitration
proceeding may oppose an application
for recognition and enforcement of the
arbitral award in accordance with the
procedural rules to be promulgated by
the SC only on those grounds

enumerated under Art V of the New

York convention . any other ground
shall be disregarded by the RTC.
APPEAL OF JUDGMENT
The losing party who appeals a judgment
confirming the arbitral award shall be
required by the appellate court to post
counterbond executed in favor of the
prevailing party equal to the amount
of the award.
Foreign arbitral awards are not foreign judgments.
A foreign arbitral award when confirmed by a
foreign court shall be recognized and
enforced as a foreign arbitral award
and not a judgment of foreign court.
(sec 44)
APPEAL FROM COURT DECISIONS ON
ARBITRAL REWARDS
A decision of the RTC confirming , vacating,
setting aside, modifying or correcting
an arbitral award may be appealed to
the court of appeals in accordance
with the rules of procedure to be
promulgated by the supreme court
(sec 46)
7.) INTERIM MEASURES IN ARBITRATION
(Book)

Interim measures otherwise referred

to in the ADR Act as interim measures of
protection or provisional reliefs are
ancillary remedies intended for the
protection of the subject matter of the
dispute. They are akin to the provisional
remedies under the 1997 Rules of Civil
Procedure (rules 57 to 61). They include
but not limited to preliminary injunction,
appointment of receivers, detention of
property, preservation of property, and
inspection of property subject of the
dispute.

As a rule, interim measures are applied

with and secured from the arbitral
tribunal.

Instances when the arbitral tribunal

cannot grant the interim measure
such as :
-when the arbitral tribunal already constituted has
no power to act or is unable to act
effectively.

In such instances, a party may apply for

interim measures with a court which may
grant them. The petition for this purpose
shall be governed by the Special ADR
Rules.

In the case of interim measure, a court

cannot refuse to grant , implement or
enforce a petition for an interim measure
on the sole ground that the petition is

merely an ancillary relief and the principal

action is pending with the arbitral tribunal.
While interim measures are categorized in
the ADR act and IRR as ancillary remedies,
they are different from provisional
remedies under the rules of court in that
the application for interim measures filed
before the regular courts can stand by
themselves despite the pendency of the
arbitration of the principal action before
the arbitral tribunal.
(Beda notes)
Grant of interim measures of protection:
after constitution of the arbitral tribunal
and during arbitral proceedings, a request
for an interim measure of protection or
modification thereof, may be made with
the arbitral tribunal or to the extent that
the arbitral tribunal has no power to act or
is unable to act effectively, the request
may be made with the cout. (sec 28)
Note: An interim measure is a petition
made either to a court of competent
jurisdiction or to an arbitral tribunal ,
whichever is appropriate for the
temporary protection of the rights and
interest of a party pending the resolution
of a dispute.
Such interim measures may include but
shall not be limited to:
o preliminary injunction directed
against a party
o appointment of receivers or
detention ,
o reservation, and
o inspection of property that is the
subject of the dispute in
arbitrations (sec.29)

Grant of interim measure of protection: it

is not incompatible with an arbitration
agreement for a party to request, before
constitution of the tribunal , from a court
an interim measure of protection and for
the court to grant such measure.

The following rules are to be observed in

connection with the interim reliefs or
provisional remedies available:
Any party may request that provision
relief be granted against the adverse
party;
such relief may be granted:

to prevent irreparable loss

or injury

to provide security for the

performance of any
obligation

to produce or preserve
any evidence

to compel any other

appropriate act or
omission
the order granting provisional relief may
be conditioned upon the provision of
security or any act or omission specified in
the order;
Interim or provisional relief is requested
by written application transmitted by
reasonable means to the court or arbitral
tribunal as the case may be and the party
against whom the relied is sought, and the
party against whom the relief is sought,
describing in appropriate detail the
precise relief, the party against whom the
relief is requested, the grounds and
evidence supporting the request;

the order shall be binding upon the

parties;
either party may apply with the court for
assistance in implementing or enforcing
an interim measure ordered by an arbitral
tribunal; and
a party who does not comply with the
order shall be liable for all damages
resulting from non compliance, including
all expenses and reasonable attorneys
fees, paid in obtaining the orders judicial
enforcement. (sec. 28)