CHAPTER 2: FUNDAMENTALS OF ALTERNATIVE DISPUTE

RESOLUTION

DecisionsofSC.
InternationalLaws

PRINCIPLESOFADR
1.Promotionofpartyautonomyandselfdeterminationintheresolutiondisputes.a.
PartiesaregiventhefreedomtochiosetheformofADRtheydesiretoavailof.
2. RecognitionofADRasanefficient tool andanalternativeprocedureforthe
resolutionofcases.
3.Enlistingofprivatesectorparticipation.c.Itusuallyrequirestheparticipationof
thirdpartieswhodonot
necessarilydispensepublicservice.
OBJECTIVESandBENEFITSofADR
1.

SpeedyandImpartialJustice

2.

DecloggingofCourtDockets

GeneralPrinciplesoflawandequity.
FORMSOFADR
1.Arbitration
2.Mediation
3.Conciliation
4.Neutralandearlyneutralevaluation
5.Minitrial
6.Anycombinationoftheforegoing
7.AnyotherADRform

FEATURESofADR
1.ADRisameansusedtoresolveadisputeorcontroversy.
2.ADRutilizesmeansandmethodssallowedbylaw.

CLASSIFICATIONOFFORMSOFADR
1.Astothenumberofparties
2.Astothenumberofissuesinvolved

3.ADRiscontractualinnature.

3.Astotheextentofconclusion

4.ADRavoidscourttrial.

4.Astotheroleofevidenceintheproceedings

5.ADRusuallyinvolvestheparticipationofneutralthirdparty.

5.Astothependencyofacourtcase
6.Astotheapplicablelaw

SOURCESOFADR

7.AstothepermanenceoftheADRprovider

1.

Domesticlawsancruleswhichmayeitherbegeneralorspecial.

COMPONENTSOFADR

2.

Actsoftheexecutivebranch.

Contendingpartieswhoareinvolvedinadispute.

2.

Dispute,whichissusceptibleofbeingsubjectedtoADR.

CLASSIFICATIONOFMEDIATION

3.

FormofADR,whichmayeither,bearbitration,mediation,conciliation,earlyneutral
evaluation,minitrialoranycombinationoftheforegoing.

1.Mediationisnonevidentiaryornonmeritbased.

4.

ADR provider is an institution of person accredited as mediator, conciliator,

arbitrator, neutral party evaluator or any person exercising similar functions; or
practitionerisanindividualactingasmediator,conciliator,arbitratoretc.

2.Mediationiseitherinstitutionwhenadministeredby,andconductedunderthe
rulesofmediationandadhocifitisotherthaninstitutional.
3.Anagreementtosubmitadisputetoamediationbyaninstitutionshallincludean
agreement:

ThefollowingissuesarenotsusceptibleofADR:

Tobeboundbytheinternalmediationandadministrativepoliciesofsuchinstitution;

a. Civil statusofpersons matterdeterminedbylawandisnotsubject tothe

discretionoftheparties.

Tohavesuchrulesgovernthemediationofthedisputeandforthemediator,the
partiesandtheir respectivecounselsandnonpartyparticipantstoabide bysuch
rules.

b.

ValidityofMarriageoranygroundforlegalseparation

c.

Jurisdictionofthecourts

STAGESINMEDIATION
Ingeneral,themediationprocessconsistofthefollowingstages:

d.

Futurelegitime

e.

CriminalLiability

f.

Ingeneral,those,which,bylaw,cannotbecompromised

Openingstatementofthemediator;
Individualnarrationbytheparties;
Exchangebytheparties;
Summaryofissues;

1.ConcludingActsorAgreements

Generalizationandevaluationofoptions;

a.

MediatedSettlementagreement

b.

Compromiseagreement

c.

Arbitralaward

Executionofsettlementagreementbytheparties;or

d.

Waiverorquitclaim

Bythewithdrawalofanypartyfrommediation;or

Closure
Mediationshallbeclosedandconcludedby:

c.Bythewrittendeclarationofthemediatorthatanyfurthereffortat
mediationwouldnotbehelpful.

Any person hired or engaged in connection with mediation as secretary,

stenographer,clerkorassistant;and
ADVANTAGESOFMEDIATION
1.

Confidentialityinthemediationprocess;

2.

Prompt,economicalandamicableresolutionofdisputes;and

3.

Thedecisionmakingauthorityrestsintheparties.

Any person who obtains or possesses confidential information by reason of his

profession.
ProtectionunderADRactshallcontinuetoapplyevenifamediatorisfoundtohave
failedtoactimpartially.
Mediatormaynotbecalledtotestifytoprovideinformationgatheredinmediation.

CONFIDENTIAL AND PRIVILEGED NATURE OF MEDIATION

COMMUNICATION
a.Confidentialinformationincludes:
Communication, oral or written, made in a dispute resolution
proceeding
An oral or written statement made or which occurs during the
mediation
Pleadings,motions,manifestation,writtenstatements,reports filed
or submitted in arbitration or for expert evaluation. LEGAL EFFECTS OF
CONFIDENTIALANDPRIVILEGEDNATURE
a.

b.

Party,mediatorornonpartyparticipantmayrefusetodiscloseandmaypreventany
otherpersonfromdisclosingconfidentialnature.
Information shall not be subject to discovery and shall be inadmissible in any
adversarialproceeding.
c.Thefollowingpersoninvolvedorpreviouslyinvolvedinmediationmaynotbe
compelledtodiscloseconfidentialinformationobtained:

EXCPETIONS BASED ON AGREEMENT, NATURE OF PROCEEDINGS,

CRIMEORSOCIALJUSTICE
Thosecontainedinanagreement evidencedbyarecordauthenticatedbyallthe
partiestotheagreement.
Thoseavailabletothepublicormadeduringasessionofmediation,whichisopen,
orisrequiredbylawtothepublic.
Athreatorstatementofaplantoinflictbodilyinjuryorcommitacrimeofviolence.
Communicationintentionallyusedtoplan,attempttocommit,orcommit,acrime,or
concealanongoingcrimeorcriminalactivity.
Communicationsoughtorofferedtoproveordisproveabuse,neglect,abandonment
orexploitationinaproceedinginwhich,apublicagencyisprotectingtheinterestof
anindividualprotectedbylaw.
Communication sought or offered to prove or disprove a claim or complaint of
professionalmisconductormalpracticefiledagainstamediatorinaproceeding.
Communication sought or offered to prove or disprove a claim or complaint of
professionalmisconductormalpracticefiledagainstaparty,nonpartyparticipantor
representativeofapartybasedonconductoccurringduringmediation.

i.

Partiestothedispute;

ii.

Mediator/s;

iii.

Counselfortheparties;

amediatormaynotmakereporttoacourtoragencythatwillmakearulingon
disputethatissubjectofmediationexceptwiththefollowingcases:

iv.

Nonpartyparticipants;

a. Where the mediation occurred or has terminated or where a settlement was

reached;

b.PermittedtobedisclosedunderSection13oftheADRAct.

Amediatorwhorefusestoactassuchmaywithdrawormaybecompelledto
withdraw from mediation proceedings under any of the following
circumstances:
If anyofthepartiesrequeststhemediatortowithdraw. Thispromotesand
strengthenspartyautonomyandselfdeterminationintheselectionofthemediator.
Themediatordoesnothavethequalifications,trainingandexperiencetoenablehim
tomeetthereasonableexpectationsoftheparties.Nospecialqualificationby
backgroundorprofessionisrequired.However,ifamediatorisselectedbythe
parties on account of his special qualifications which turn out to be false or
inaccurate,themediationpartiesmayaskforhiswithdrawal.
Themediatorsimpartialityisinquestion.

Apart from the general duty of mediators to conduct mediation, mediators are
requiredtoperformthefollowing:
1.PriortoMediation
Oncompetence.
Onimpartiality2.DuringtheMediation
Confidentiality
Onconsentandselfdetermination amediatorshallexertreasonableeffortsto
ensure that each party understands the nature and character of the mediation
proceedings.
Onpromotionofrespectandcontrolofabuseofprocess themediatorshall
encouragemutualrespectbetweentheparties.

Thecontinuationoftheprocesswillviolateanethicalstandard.

Thefollowingprinciplesapplytotheseconcludingarrangements

Thesafetyofanyoneofthepartieswillbejeopardized.

Settlement agreement following a successful mediation shall be prepared by the

partieswiththeassistanceofalawyer.

Themediatorisunabletoprovideeffectiveservices.

Partiesandtheirrespectivecounsels,shallsignthesettlementagreementandshall
certifythecontents.

Incaseofconflictofinterest.
Ifthepartiesagree,settlementmaybejointlyordeposited
OtherinstancesforundertheIRR.
Whenthereisaneedtoenforcethesettlementagreement
PartiesmayagreeInthesettlementagreementthatmediatorshallbecomeasole
arbitratorforthedisputeandshalltreattheagreementasanarbitralawardwhich
shallbesubjecttoenforcement.

DUTIESANDFUNCTIONSOFMEDIATORS

Thelawyerorcounselshallhavethefollowingroles:

a.

Collaboratewiththeotherlawyerinworkingtogethertowardsthecommongoalof
helpingtheirclientsresolvetheirindifferencestotheirmutualadvantage.

SCRA308,2009)enumeratedthejudicialremediesanaggrievedpartytoanarbitral
awardmaytake,namely:

b.

Encourageandassisttheclient toactivelyparticipateinpositivediscussionsand
cooperateincraftinganagreementtoresolvetheirdispute.

ApetitionintheproperRTCtoissueanordertovacatetheawardonthegrounds
providedinSection24orRA876;

c.

Assist the client to comprehend and appreciate the mediation process and its
benefits.

ApetitionforreviewintheCAunderRule43ofROConquestionsoffact,oflawor
mixedquestionsoffactandlaw;

d.

Conferanddiscusswiththeclientthemediationprocessandsubstance.

A petitionfor certiorari under Rule 65 of ROC should the arbitrator have acted
withoutorinexcessofhisjurisdictionorwithgraveabuseofdiscretionamounting
tolackorexcessofjurisdiction.

KINDSOFARBITRATION
Generally,therearetwotypesofarbitrationnamely:
a.

VoluntaryArbitration

b.

CompulsoryArbitration
Undertheclassification,arbitrationiseither:

CHAPTER5:INTERNATIONALCOMMERCIALARBITRATIONUNDER
THE ADR ACT OF 2004 AND ITS IMPLEMENTING RULES AND
REGULATION
INTERNATIONALCOMMERCIALARBITRATION
Arbitrationisinternationalifanyofthefollowinginstancesoccur:
Thepartiesplaceofbusiness,whichatthetimeoftheconclusionofthearbitration
agreement,isindifferentstates;

a.

Domestic

b.

Internationalifanyofthefollowinginstancesoccur.
i.

ii.

Partiesplacesofbusiness,whichatthetimeofthearbitration,isin
differentstates.
Place of arbitration provided in the arbitration agreement and in
which the parties have their places of business, is outside the
Philippines.

Placewhereasubstantialpartoftheobligationistobeperformedortheplacewith
whichthesubjectmatteofthedisputeismostcloselyconnected,andinwhichthe
partieshavetheirplacesofbusiness,isoutsidethePhilippines
iv. The parties have expressly agree that the subject matter of the
arbitrationagreementrelatestomorethanonecountry.
Incaseof ABSCBNBROADCASTINGCORP.VSWINSJAPANLTD(544

Theplaceofarbitrationprovidedintheagreementandinwhichthepartieshavetheir
placesofbusiness,isoutsidethePhilippines;
Theplacewhereasubstantialpartoftheobligationistoeperformedoutsidethe
Philippines;
Partieshaveexpresslyagreedthatthesubjectmatterofthearbitrationagreement
relatestomorethanonecountry.

COVERAGEOFIRRPROVISIONSONICA
TheprovisionsoftheIRRoninternational arbitrationaredefaultrules,theyare
applicableonlyintheabsenceoforindefaultofapplicableprovisionscontainedin:
Anagreement,inforcebetweenthePhilippinesandotherstates;and

2.

Anagreementbetweenthepartiesontheapplicablerules.
RULESOFINTERPRETATION
ThefollowingaretherulesintheinterpretationoftheADRActof2004,ModelLaw
andIRR:
1.InterpretationoftheADRAct.

2.

Interpretation of the Model Law should be regard that the said law is of
internationaloriginandthereisaneedforuniformityinitsinterpretation.

3.

InterpretationoftheIRR
**TherecordsandevidenceandawardinICAareconfidentialandshallnotbe
disclosedexcept:

1.

Withtheconsentoftheparties;

2.

Forthelimitedpurposeofdisclosingtothecourtrelevantdocumentsincaseswhere
resorttothecourtisallowed.
APPOINTINGAUTHORITYINICA
The appointing authority in an ICA is the person or institution named in the
arbitration agreement or regular arbitration institution under whose rules the
arbitrationisagreedtobeconducted,authorizedtomakethedefaultappointmentof
arbitrationorsolearbitrator.Inaddition,theappointingauthorityinanICAhas
thefollowingfunctions:

a.

Take the necessary measures to appoint an arbitrator in case any party or the
arbitrators already appointed or any third party fails to perform any function
necessaryfortheappointmentofthearbitrator.

b.

Decideonthechallengeagainstanarbitratorifarbitraltribunalrejectsthechallenge.

c.

Considerthequalificationsofanarbitrator,thenecessityofensuringimpartialityand
independenceofthearbitrator,andtheadvisabilityofappointinganarbitratorwhois
ofnationalitydifferentfromthoseoftheparties.
ARBITRATORSANDARBITRALTRIBUNALSINICA

Inlinewiththeprincipleofpartyautonomyandselfdetermination,thepartiesinan
ICAarefreetodeterminethenumberofarbitratorsandprocedureforappointment.
Thedefaultnumberofarbitratorsis3andthefollowingisthedefaultprocedurefor
appointing:
In arbitration with 3 arbitrators each party shall appoint one arbitrator and both
rd
appointedarbitratorsshallappointthe3 arbitrator,failingwhichtheappoinment
shallbemadebytheappointingauthority.
Inarbitrationwithsolearbitrator,thearbitratorshallbeappointed,uponrequestofa
party,bytheappointingauthority.

ProcedurefortheChallengeinICA
1.

2.

Challengingpartyshallsendwrittenstatementofthereasonsforthechallengeto
arbitral tribunal within 15 days after becoming aware of the circumstance
constitutingthegroundforchallenge.
Ifthechallengebeforethearbitraltribunalisnotsuccessful,thechallengingparty
may request the appointing authority within 30days from notice of the decision
rejectingthechallenge,todecidethechallenge,whichdecisionshallbeimmediately
executoryandnotsubjecttoamotionforreconsiderationorappeal.
Apartymayfileapetitionincourtquestioningthedecisioninthechallengeagainst
anarbitratorinaccordancewiththeSpecialRulesofCourtonADR.
Afterasuccessfulchallenge,asubstitutearbitratorwillhavetobeappointed.The
appointment of the substitute arbitrator shall be governed by the same rules
applicabletotheappointmentofthereplacedarbitrator.

PROCEDUREINCASETHEARBITRATORFAILSTOACTINICA
IfanarbitratorinICAbecomesdejureordefactounabletoperformhisfunctionsor
failstoactwithoutunduedelay,hismandateterminates[i]ifhewithdrawsor[ii]if
thepartiesagreeonthetermination.Thewithdrawalofthearbitratordoesnotcarry
with it an implied acceptance of the existence or veracity of the ground for
termination.
Ifthecontroversyremains,anypartymayrequesttheappointingauthoritytodecide
ontheterminationofthearbitrator,whichdecisionshallbeimmediatelyexecutory
andnotsubjecttoamotionforreconsiderationofappeal.
TheproceduresforgrantinginterimmeasuresinICAareasfollows:
Afterthearbitraltribunalhasbeenconstituted,anypartymayrequestforthegrantof
interimmeasurefromthearbitraltribunalagainsttheadverseparty.Thisrequest
shallbeinwritingtransmittedbyreasonablemeanstothearbitraltribunalandthe
adverseparty,describingtheprecisereliefinappropriatedetail,thegroundandthe
evidencesupportingtherequest.
Thereliefmaybegrantedinordertopreventirreparableloss;toprovideforsecurity
fortheperformanceofanobligation;toproduceorpreserveevidence;tocompelany
otherappropriateactsoromissions.
Thegrantofinterimmeasuremaybeconditionedupontheprovisionsecurityorany
actoromissionspecifiedintheorder.
Theordereithergrantingordenyingtherequestforinterimmeasureshallbebinding
upon the parties and either party may apply with the courts for assistance in
implementingorenforcingit.
Apartywhorefusestocomplywiththeorderforaninterimmeasureshallbeliable
fordamagesresultingfromnoncomplianceincludingallexpensesandreasonable
attorneys fees paid in obtaining judicial enforcement. The party who refuses to
complywiththecourtordercompellingcompliancewithaninterimmeasuremaybe
citedforindirectcontemptofcourt.
Before the constitution of the arbitral tribunal, or to the extent that the arbitral
tribunalalreadyconstitutedhasnopowertoacteffectively,theinterimmeasuremay
berequestedfromthecourtinaccordancewiththeSpecialRulesofCourtonADR.

RULESOFPROCEDUREINICA

TRIBUNALDOESNOTHAVECONTEMPTPOWERS.

Thegeneralruleisthatthepartiesinaninternationalcommercialarbitrationarefree
todeterminetherulesthatwillgoverntheirarbitrationproceedings.

Expert thetribunal mayappointexpertstoreporttoiton specificissues,

requirethepartiestoprovidetheexpertwithrelevantinformationoraccessto
documents.Theexpertsoughtbythetribunalissimilartoanamicuscuriaeor
friendofthecourtexceptthattheexpertsfieldofspecializationisnotlimitedto
law.

In default, the arbitral tribunal shall apply the UNCITRAL Arbitration Rules
th
adoptedbytheUNCITRALon28 ofApril1976,unlessthetribunalfindssaid
rulesinappropriate.
TheproceduresinICAindefaultofanagreementofthepartiesareasfollows:
1.

Statementofclaims withintheperiodagreeduponbytheparties,theclaimant
shallstatethefactssupportinghisclaim;theissuesandrelieforremedysoughtand
shallbesubmitorrefertorelevantdocuments.

2.

StatementofDefensesrespondentshallstatehisdefenses.

3.

Defaultoftheparties failureoftheclaimantorrespondentto communicate

their statements of claims or defenses during the period or their failure to
appearatahearingortoproducedocumentaryevidence,resultsinthedefault
of the failing party. Default of the claimant for failure to communicate his
statement of claims results in termination of proceedings. Default of the
respondenttocommunicatehisstatementofdefensesshallnotterminatethe
proceedingsandinsteadshallproceedwithoutsuchfailurebeingconsideredas
anadmissionofclaimantsallegation.

4.

Amendmentofclaimsordefenses partiesmayamendorsupplementtheir
claimsordefensesasthecasemaybeunlessthetribunalconsidersamendment
inappropriate.

5.

Hearingsthetribunalshalldeterminewhethertoholdoralhearingsonly,oral
arguments only or just require the submission of documents during the
appropriatestagesofarbitralproceedings.
Court assistance in taking evidence the tribunal or any party with the
approval of the tribunal, may request from the courts assistance in taking
evidence.
Subpoenathetribunalhasthepowertoissuesubpoenainordertocompelthe
attendance of witnesses and/or the production of documents. ARBITRAL

Conclusion/ClosureanICAmaybeconcludedorclosedineitheroftwoways:
Byanawardorsettlement
Terminationtribunalshallissueanorderforterminationofarbitrationwhen:
1.Theclaimantwithdrawshisclaimunlesstherespondentobjectsonthebasisof
legitimateinterestinobtainingafinalsettlement;2.Thepartiesagreetoterminate
proceedingsinwritings;or3.Tribunalfindsthatthecontinuationoftheproceedings
hasbecomeunnecessaryorimpossible.
Inbothinstances,themandateofthearbitraltribunalendsexceptiftheconclusionof
theproceedingsisbywayofanawardorsettlement,thetribunalsmandateextends:
1.Tocorrectandinterprettheaward;2.Tosetasideanexclusiverecourseagainst
the arbitral award; or 3. When reserved, to the quantification of costs and the
determinationofthepartyliabletherefore,orthedivision.
Thearbitraltribunalretainsjurisdictionuntiltheawardbecomesfinalandexecutory.

Thearbitralawardmaybeamendedinanyofthefollowingmanners:
1.

Quantification of the costs and the determination of the party liable or the
divisionbetweenthepartiesprovidedthatareservationforsuchhearingand
quantificationhasbeenmadebythetribunal.

An ICA award may be setaside through the courts, particularly the RTC
providedthat:
Thepetitionerfurnishesproofthattherewas:

2.

3.

4.

5.

Correctionoftypographicalandsimilarerrorsinitiatedbyaparty parties
mayaskthetribunalforthecorrectionoftheawardwithin30daysfromreceipt
oftheawardandwithnoticetotheotherparty,foranyerrorincomputation,
clericalortypographicalerror.Anerroristypographicalorclericalinnature
andthereforecorrectibleevenafterthedecisionhasbecomeexecutory,ifthe
error is occasioned by a mistake in copying or typing does not alter the
substanceofthedecisionanddoesnotaffectorprejudicesubstantialrights.
Interpretation of the award within the same period for the correction of
typographicalerrorsinitiatedbytheparties,thepartiesmayagreetorequest
thetribunaltogiveaninterpretationofaspecificpointorpartoftheaward.If
the tribunal finds the request for correction justified, it shall make the
correctionorgivetheinterpretationwithin30daysfromreceiptoftherequest
andtheinterpretationorcorrectionshallformpartoftheaward.
Correctionoftypographicalerrorinitiated bythearbitral tribunal within
30days from the date of award, the tribunal may motu propio correct any
typographicalerror.
Additional award within 30days from receipt of the award, a party, with
noticetotheotherparty,mayrequestthetribunaltomakeanadditional

Defectinthearbitrationagreement
Violationofdueprocess
Lackorexcessofjurisdictiononthepartofarbitraltribunal
Violationofarbitrationagreement
Orthecourtfindsthat:
ThesubjectofthedisputeisnotcapableofsettlementunderthelawsofRP
TheawardisinconflictwiththepublicpolicyoftheRP.

Thevenueoftheproceedingsshallbe:
Wherethearbitrationproceedingsareconducted;
Wheretheassettobeattachedorlevieduponortheacttobeenjoinedislocated;
Whereanyofthepartiestodisputeresidesorhisplaceofbusiness;or
IntheNCJRattheoptionoftheapplicant.
.

GROUNDS FOR REFUSING RECOGNITION AND PROCEDURE FOR

RECOGNITIONOFCONVENTIONANDASINCONVENTIONAWARDS
Ingeneral,theconditionsandrequisitesfortherecognitionandenforcementof
foreignjudgmentsinthePhilippinesare:
1.

Proofofforeignjudgment;

2.

Thejudgmentmustbeonacivilorcommercialmatter;

3.

Theremustbenolackofjurisdiction,nowantofnotice,nocollusion,nofraud,no
clearmistakeoflaworfact;

4.

The judgment must not contravene a sound and established public policy of the
forum;and

5.

Thejudgmentmustberesjudicatainthestatethatrenderedit.

Procedureforrecognitionofconventionandasinconventionawards
The procedure for the recognition and enforcement of convention and asin
conventionawardsareasfollows:
Filingofapplicationpartyrelyinguponanawardsorapplyingforitsenforcement
shallfilewiththeRTCtheoriginalordulyauthenticatedcopyoftheawardandthe
originalarbitrationagreement.
Confirmationonceconfirmed,theforeignarbitralawardshallbeenforcedinthe
samemannerasfinalandexecutorydecisionsofthecourtsoflawoftheRP.
Consolidation/concurrent hearings the parties and tribunal may agree on 1.
Consolidationofproceedings;or2.Theconductofconcurrenthearingswithother
relatedarbitrationproceedings.
Rejection/suspensiontheRTC,uponapplicationforrejectionorsuspensionofthe
enforcementoftheaward,mayvacateorsuspendtheenforcement,ordertheparty
seeking rejection or suspension to provide appropriate security like a bond for
example.Inthecaseofasinconventionaward,thecourtmayalsoremittheaward
tothearbitraltribunaloftheobjectionsraisedmaybecuredorrectified.
AppealsthedecisionofRTCrecognizing,enforcing,vacatingorsettingasidean
arbitraltribunalawardsmaybeappealedtotheCAinaccordancewiththespecial
rulesonADR,whichshallrequiretheappealingpartytopostacounterbondin
favoroftheprevailingpartyintheamountoftheaward.Therighttoappealmaybe
validlywaivedbytheagreementorstipulationofthepartieswithoutprejudiceto
judicialreviewbycertiorariunderrule65oftherulesofcourt.

bedecided,orintheresultoftheproceeding;
Hehaspersonal biaswhichmightprejudicetherightofanypartytoafairand
impartialaward;or

CHAPTER6:DOMESTICARBITRATION
The following are the specific rules for the commencement of domestic
arbitration:
1.

In an institutional arbitration where there is no prior arbitration agreement, it is

commencedinaccordancewiththearbitrationrulesoftheinstitutionalarbitrator.

2.

Inanadhocarbitration,wherethereisapriorarbitrationagreement,itiscommence
uponthedeliverybytheclaimanttotherespondentofademandforarbitration.The
demandforarbitrationshallbeinanyformandshallstatethename,addressesand
descriptionofthenatureandcircumstancesofthedisputegivingrisetotheclaim;
the relief sought including the amount of the claim; the relevant agreements
includingthearbitrationagreement,acopyofwhichshallbeattached.Wherethere
isnoprioragreement,itisinitiatedbyonepartythroughademandupontheotherto
submittheirdisputetoarbitration,andarbitrationisdeemedcommenceduponthe
agreementbytheotherpartytosubmitthedisputetoarbitration,andarbitrationis
deemedcommencedupontheagreementbytheotherpartytosubmitthedisputeto
arbitration. The demand shall also require the respondent to name his arbitrator
withinaperiod,whichshallnotbelessthan15daysfromthereceiptofdemand.

Anarbitratormustbe:
Oflegalage;

2.

Beinfullemploymentofhiscivilrights;and

3.

Knowhowtoreadandwrite.

ProcedurefortheAppointmentofArbitrators
The parties in a domestic arbitration are free to agree on the procedure for the
appointment of arbitrators except that, in order to prevent undue advantage, an
agreementorclausegivingapartythepowertochoosemorearbitratorsthanthe
otherisvoid.Thepartiesmayagreetoempowerthearbitratorsalreadyappointedto
selectandappointadditionalarbitratorswhoshallsitwiththeoriginalarbitrators.
Ifthereisnoagreementfortheappointment,thefollowingarethedefaultrules:
1.Appointmentbythepartiesinanarbitrationwith3arbitrators,eachpartyshall
rd
appointoneandthe2arbitratorsappointedshallappointthe3 arbitratorwithin
30daysfromreceiptofrequest,failingofwhich,theappointmentshallbemadeby
theappointingauthority.
2.Defaultappointmentbyappointingauthoritytheappointingauthorityinad
hoc domestic arbitration, in the absence of an agreement of the parties, is the
National President of IBP or his authorized representative. In an institutional
arbitration,thereisnoneedforanappointingauthorityforpurposesofappointing
becausethepartieshavealreadydesignatedtheinstitutionalADRproviderunder
whoserulesthearbitratororarbitratorstobeselected.

QualificationsandDisqualifications

1.

Hehasbeenselectedtoactaschampionortoadvocateapartyscause.

Theappointingauthoritymatmaketheappointmentorgivetheappointingpartywho
objectstoadefaultappointmenttimetomaketheappointmentbutnotmorethan
30days.

1.

He is related by blood or marriage within the 6

controversy;

degree to either party to the

Requestforappointment therequestforappointmentwithproofofdeliveryto
theadversepartyshallbefiledwiththeappointingauthority.Within7daysfromthe
receiptoftherequest,theadversepartymayfilehisobjectionstorequestoraskfor
anextensionnotexceeding30daystoappointanarbitrator.

2.

Hehasorhashadfinancial,fiduciaryorotherinterestinthecontroversyorcauseto

Acceptance of appointment in accepting the appointment, shall submit an

acceptanceletter,whichshallincludestatementsthat1.Heagreestocomplywiththe

Nopersonshallserveasanarbitratorinanyproceedingsif:
th

5.

applicablelawandrulesofarbitration;2.Heacceptstheapplicablearbitratorsfees;
and3.Heagreestodevotemuchtimeandattentiontothearbitrationasrequired.

dateofitsreceipt,therequestingpartymaywiththenoticetotheparties,renewthe
requestwiththecourt.

Oathofarbitratorsarbitratorsshalltakeanoathtofaithfullyandfullyhearand
examinethemattersincontroversyandtomakeajustawardaccordingtothebestof
theirabilityandunderstanding.

Untiladecisionismadebythechallengedarbitrator,theparties,arbitraltribunalor
theappointingauthority,thearbitrationproceedingshallcontinuenotwithstanding
thechallengeandthechallengedarbitratorshallcontinuetoparticipateasarbitrator.
Once the challenge is elevated to the court, the arbitration proceeding shall be
suspendeduntilafterthecourtshallhavedecidedtheincident.

ProcedurefortheChallenge

Thedecisionoftheparties,thearbitraltribunal,theappointingauthorityprthecourt,
toacceptorrejectachallengeshallbeimmediatelyexecutoryandisnotsubjectto
appealorMR.

Theprocedureforthechallengeagainstanarbitratorinadomesticarbitrationis
similartothatprovidedforinICA.Thegeneralruleisthattheprocedurethatis
agreeduponbythepartiesforchallenginganarbitratorshallbeapplied.Indefault
thefollowingprocedureshallgovern:
1.

Thechallengingpartyshallsendawrittenstatementofthereasonsforchallengeto
thearbitraltribunalwithin15daysafterbecomingawareoftheconstitutionofthe
arbitral tribunal or after becoming aware of the circumstances surrounding the
groundforchallenge.Arequestforinhibitionshallbedeemedachallenge.

2.

Within 15days from receipt of a challenge, the challenged arbitrator may either
accept or reject the challenge. If he accepts it, he shall voluntarily withdraw as
arbitrator.

3.

Ifherejectsthechallenge,heshallcommunicatewithinthesameperiodof15days
hisrejectionofthechallengeandstatethefactsandargumentsreliedupon.Heshall
begivenopportunitytobeheardonthematter.

4.

Notwithstandingtherejectionofthechallengebythechallengedarbitrator,within
thesameperiodof15daysthepartiesmayagreetothechallengeandreplacethe
challengedarbitrator.

5.

Ifthechallengedarbitratordoesnotacceptthechallengeordoesnotwithdrawfrom
hisofficeandthepartiesdonotagreetothechallenge,thearbitraltribunalshall
decide the challenge within 30days from receipt of the notice of the decision
rejectingthechallenge.

6.

Ifthechallengebeforethearbitraltribunalisnotsuccessfulorapartyortribunal
shall decline to act, within 30days from notice of the decision rejecting the
challenge,thechallengingpartiesmayrequesttheappointingauthoritytodecidethe
challenge.

7.

Iftheappointingauthorityshallfailtoactonthechallengewithin30daysfromthe

10.

Theappointmentofasubstituteshallbemadepursuanttotheprocedureapplicable
totheappointmentofthearbitratorbeingreplaced.

thehearingonthemerits.
Hearingdatesandpostponementsarbitraltribunalshallinconsulationwiththe
partiesfixthedateandtimeofhearings.Thehearingsshallnotbepostponedexcept
withtheconformityofthearbitratorandforgoodandsufficientcause.
Thedefaultprocedureindomesticarbitrationisasfollows:
1.

StatementofClaims theclaimantindomesticarbitrationisrequiredtosubmit
withinthetimeagreeduponbythepartiesordeterminedbythearbitraltribunalhis
statement of claims including the supporting facts, points at issue and the relief
sought.

2.

Statementofdefenseinthesamemannerandperiod,therespondentshallstatehis
defenses.

3.

Amendment of claims the parties may amend or supplement their claims or

defenses,asthecasemaybe,unlessthearbitraltribunalconsiderstheamendment
appropriateordilatory.

4.

Hearing and written proceedings in an ad hoc domestic arbitration, the

proceduredeterminedbythearbitratorwiththeagreementofthepartiesshallbe
followed.Inaninstitutionalarbitratorshallbefollowedwhichhasbeenimpliedly
acceptedbythepartiesonaccount ofthedesignationoftheinstitutionalarbitral
tribunal.
There is a slight variance between the default procedure for ICA and domestic
arbitration.Inthecaseofthelatter,thefollowingprocedurewillbefollowed:

a.

b.

Prehearingconferencethepartiesindomesticarbitrationarerequiredtoundergo
aprehearingconferencewithin30daysfromtheappointmentofthearbitratororthe
constitutionofanarbitraltribunalduringwhichtheyshalldiscussthevenueofthe
arbitration.Thepossibilityofacompromiseisnotamongthosethatthepartiesand
thearbitraltribunalaresupposedtodiscussduringtheprehearingconference.No
arbitratorshallactasmediatorinanyproceedingwhereheisactingasanarbitrator
except where, under a settlement agreement, the parties agree to constitute the
mediatorasanarbitrator.
Thresholdissuesissuesonthejurisdictionofthearbitraltribunalovertheclaims
and counterclaims or the arbitrability of the claims or counterclaims, shall be
resolvedbythearbitraltribunalasthresholdissuesifthepartiessorequest,unless
theissuesareintertwinedwiththefactualissuesthattheycannotberesolveaheadof

Defaultofthepartyiftheclaimantfailstocommunicatehisstatementofclaims,
the tribunal shall terminate the proceedings. If it is the respondent who fails to
communicate his statement of defenses, the arbitral tribunal shall continue the
proceedingswithouttreatingsuchfailureinitselfasanadmissionoftheclaimants
allegation.Ifanypartyfailstoappearorproduceevidence,heshallhavedeemed
waivedthem.
Decisiononinterlocutorythearbitraltribunalmayauthorizeitschairmantoissue
orreleaseitsdecisiononinterlocutorymatters.
Consolidation or concurrent hearings they may agree to consolidate the
arbitration proceedings with other arbitration proceedings or hold concurrent
hearings.
Closureofhearingnofurthermotion,manifestationorsubmissionmaybeallowed
exceptforposthearingbriefsandreplybriefs,unlessthetribunal, motupropio or
upontherequestofapartyallowsthereopeningofthehearing.
Rulesontakingevidencethefollowingrulesonreceptionaswellastheprocesses
thatthetribunalmayemployintakingevidence:
Testimonialevidencewitnessesshallberequiredtotakeanoathoraffirmationto
tell the truth. The parties may also agree in writing to submit their dispute to
arbitrationotherthanbyoralhearing.
Documentaryevidencethetribunalmayrequirethepartiestosubmitorproduce
suchothernecessarydocuments.
Subpoenathetribunalshallhavethepowertoissuesubpoena.
Expert thetribunalmayappointoneormoreexpertstoreporttoitonspecific
issues,mayrequirethepartiestosubmitrelevantinformationorgrantaccesstosuch
expert and may grant the parties opportunity to ask questions of the expert and
present their ownexperts totestify onthepointsat issue. Howeverindomestic

arbitration,upontheagreementoftheparties,thefindingoftheexpertengagedby
thetribunalshallbebinginguponthemandthetribunal.
CourtassistanceintakingevidencetheprovisionsofIRRondomesticarbitration
specifiedsomeofthemodes.
6.

7.

Decisionthedecisionofthetribunalshallbemadebythesolearbitratororunless
otherwiseagreeduponbytheparties,bythemajorityofthearbitratorsinmulti
arbitrator proceedings. However, questions of procedure may be decided by the
chairman of the tribunal if authorized by the parties or by all members of the
tribunal.Thetribunalshallrenderitswrittenawardwithin30daysaftertheclosingof
thehearing,submissionofthepartiesbriefs.
Formandcontentoftheaward theawardindomesticarbitrationshallbein
writing, signed by the arbitrator, and shall state the rendition and the place of
arbitration.Theawardneednotbeacknowledgedorsworntounlessrequiredbythe
parties.Thepartiesmayrequirethetribunaltosupplytheomissionwithin30days
fromreceiptoftheaward.

8.

Settlement the proceedings will be terminated by the execution of an arbitral

awardonagreedterms.

9.

Termination of the claim unless the respondent objects for the purpose of
prosecutinghiscounterclaimorthetribunalrecognizesalegitimateinterestonhis
partinobtainingafinalsettlementofthedispute.

The IRR provided for the amendment or modification of the award in the
followinginstancesasexceptionstotheGR:
1.

Under the arbitration agreement if provided, the tribunal may cause the
amendment.

2.

Failuretoresolvetheissueifthetribunalfailedtoresolveanissue,partiesmay
askfortheresolution.

3.

Quantificationofcostsifthetribunalmadereservationinthefinalaward,itmay
supplementtheawardbysuchquantification,determinationorapportionment.

Correctionoftypographicalerrorandsimilarerrorsinitiatedbyaparty a
partymayaskthetribunalforthecorrectionoftheawardwithin30daysfromthe
receiptoftheawardandwithnoticetotheotherparty.
Interpretationoftheaward withinthesameperiod,thepartiesmayagreeto
requestthetribunaltogiveaninterpretationonaspecificpointorpartoftheaward.
Correctionofthetypographicalerrorsinitiatedbythetribunalwithin30days
fromthedateoftheaward,thetribunalmaymotupropiocorrectanytypographical
error
7.Additionalawardwithin30daysfromreceiptoftheaward,apartywithnotice
to the other, may request the tribunal tomake an additional award as toclaims
presented in the arbitral proceedings but omitted in the award. If justified, the
tribunal shall make the additional award within 60days from the receipt of the
request.
Unlessthepartieshavegranteduponanyperiodoftime,thepartiesmayaskfor
correction,interpretationortherenditionofanadditionalawardwithin30daysfrom
thereceiptoftheaward.

Theforegoinggroundsforamendmentormodificationofanarbitralawardbythe
tribunal should be distinguished from the grounds for the amendment or
modificationofanarbitralawardbythecourt.Acourt mayamendormodifya
domesticarbitralawardinthefollowinginstances:
Wherethereisanevident miscalculationoffiguresoranevident mistakeinthe
descriptionofanyperson,thingorpropertyreferredtointheaward;
Where the arbitrators have awarded upon a matter not submitted to them, not
affectingthemeritsofthedecisionuponthemattersubmitter;
Wheretheawardisimperfectinamatterofformnotaffectingthemeritsofthe
controversyandifithasbeenacommissionersreport,thedefectcouldhavebeen
amendedordisregardedbythecourt.
SETTINGASIDEANARBITRALAWARD
A domestic award may be setaside through the courts only on the following
grounds:

1.

Thearbitralawardwasprocuredbycorruption,fraudorotherunduemeans;

TheawardisinconflictwithpublicpolicyofRP.

2.

Therewasevidentpartialityorcorruptioninthetribunaloranyofitsmembers;

3.

Thetribunalwasguiltyofmisconductoranyformofmisbehaviorthathasmaterially
prejudicedtherightsofanyparty;

Thecourtbeforewhichthepetitionforsettingasideadomesticarbitralaward
isfiledhastheprerogativeandoptiontosuspendthecourtproceedingsinthe
followinginstances:

4.

Oneormoreofthearbitratorswasdisqualifiedtoactassuchandwilfullyrefrained
fromdisclosingsuchdisqualification;
5.Thearbitraltribunalexceededitspowersorsoimperfectlyexecutedthemsuch
thatacomplete,finalanddefiniteawarduponthesubjectmattersubmittedtoitwas
notmade.

Comparetheforegoinggroundswiththoseapplicabletothesettingasideof
ICAtowit:
1.

Thepetitionerfurnishesproofthattherewas:
Defectinthearbitrationagreementbecauseapartywasundersomeincapacityor
agreementisnotvalidunderapplicablelaw;
Violationofdueprocessbecausethepetitionerwasnotgivenpropernoticeofthe
appointmentofanarbitratorortheproceedingorunabletopresenthiscase;
Lackorexcessofjurisdictiononthepartofthetribunalbecausetheawarddealswith
adisputenotcontemplatedbyornotfallingwithinthetermsofthesubmissionto
arbitration,subjecttotheapplicationofdoctrineofseverability/separability;
Violation of the arbitration agreement because the composition of the arbitral
tribunal orthearbitral processwasnot inaccordancewiththeagreement ofthe
partiesunlesssuchagreementwasinconflictwithaprovisionoftheADRactfrom
whichthepartiescannotderogateorfailingsuchagreement,wasnotinaccordance
withtheADRact,

The court may suspend the setting aside proceedings to give the tribunal an
opportunitytoresumethearbitralawardproceedingsortakesuchactionwhichwill
eliminatethegroundsforsettingasideanaward;
Thepetitionerortheoppositormaypetitionthecourttoremitthecasetothesame
tribunalforthepurposeofmakingneworrevisedfinalanddefiniteawardorto
directanewhearingbeforethesameornewtribunal;or
Ifthegroundforvacatinganarbitralawarddoesnotaffectthemeritsofthecaseand
maybecuredorremedied,theadversepartymayopposethepetitionandinstead
requestthecourttosuspendthevacationorsettingasideproceedingstogivethe
arbitraltribunalanopportunitytocureorremedytheawardorresumethearbitration
proceedingsortakesuchactionaswilleliminatethegroundsforvacationorsetting
aside.
CHAPTER7:OTHERFORMSOFADR
AmongthevariousformsofADR,arbitrationandmediationareundoubtedlythe
mostcommonandpopular.Bethatasitmay,partiesareallowedtoavailofother
formsofADRfortheamicableresolutionoftheirdisputes.TheseformsofADRare
thefollowing:
Earlyneutralevaluation
Neutralevaluation
Minitrial
Mediationarbitration
Combination

2.

Orthecourtfindsthat:
AndanyotherADRform
ThesubjectofthedisputeisnotcapableofsettlementunderthelawsofRP;

Motionfornewtrialorforreopeningoftrial;
Petitionforreliefofjudgment;
ThespecialrulesonADRgovernthefollowingprocessandproceedings:
1.

Relief on the issue of existence, validity and enforceability of the arbitration

agreement;

2.

ReferraltoADR;

3.

Interimmeasuresofprotection;

4.

Appointmentofarbitrator;

5.

Challengetoappointmentofarbitrator;

6.

Terminationofmandateofarbitrator;

7.

Assistanceintakingevidence;

8.

Confirmation,correctionorvacationofawardindomesticarbitration;

9.

RecognitionandenforcementorsettingasideofanawardinICA;

10.

Recognitionandenforcementofforeignarbitralaward;

11.

Confidentialityorprotectiveorders;and

12.

Depositandenforcementofmediatedsettlementagreements.

Motionforextension,exceptincaseswhereanexparteTROofprotectionhasbeen
issued(inwhichcasetheadversepartyisamplyprotectedfromanydelaythatmay
becausedbytheextension)
Rejoindertoreply(thereplyisthelastpleadingtobefiled)
Motiontodeclareapartyindefault
AnyotherpleadingspecificallydisallowedunderanyprovisionoftheSpecialADR
rules.
Ifinadvertentlyacceptedforfiling,anyoftheforegoingmotionsorpleadingsmay
beexpungedfromtherecordsofthecase.
NONSUMMARYPROCEEDINGS
TheproceedingsunderthespecialADRrules,whicharegeneralnonsummary,
arethefollowing:
Confirmation,correctionorvacationofawardindomesticarbitration;
RecognitionandenforcementofanawardinanICA;and
Recognitionandenforcementofaforeignarbitralaward.

Thefollowingpleadings,motionsorpetitionsarenotallowedandshallnotbe
acceptedforfilingandifinadvertentlyaccepted,shouldnotbeconsideredby
thecourt:
1.

2.

Motiontodismiss(anygroundforamotiontodismissmustbepleadedintheanswer
tooppositiontothepetitionormotion);
Motionforbillofparticulars;

Thespecialrulestookintoaccountthefollowingfundamental,principlesand
objectivesofADR:
Selfdetermination, party autonomy and promotion of ADR as means of
resolvingdisputestookintoaccounttheobjectiveofADRofachievingfora
speedyandefficientresolutionofdisputes,impartialjustice,curbingalitigation
andtodecloggingcourtdockets.
PreferenceforarbitrationThespecialrulesrequirescourtstorefertoarbitration
partieswhohaveagreedtosubmittheirdisputestoarbitrationandprecludescourts
fromrefusingthereferralforanyofthefollowingand

similarreasons:
a.

Thereferraltendstooustacourtofitsjurisdiction;

b.

Thecourtisinabetterpositiontoresolvethedisputesubjectofarbitration;

c.

Thereferralwouldresultinmultiplicityofsuits;

d.

Thearbitrationproceedinghasnotcommenced;

e.

Theplaceofarbitrationisinforeigncountry;

f.

Oneormoreoftheissuesarelegalandoneormorearbitratorsarenotlawyers;

g.

OneormoreofthearbitratorsarenotPhilippinenationals;

h.

Oneormoreofthearbitratorsareallegednottopossesstherequiredqualification
underthearbitrationagreementorlaw.

3.

Doctrineofseparability/severabilitythearbitrationclauseshallbetreatedasan
agreementindependentofthecontractofwhichitformspartandadecisionthatthe
contractisnullandvoidshallnotentailipsojureinvalidityofthearbitrationclause.

4.

Freedomtoagreeontheproceduretobefollowedntheconductof arbitral
proceedingsonlyintheabsenceofanagreementmaythearbitraltribunalconduct
arbitrationinthemanneritconsidersappropriate.

CHAPTER9:SPECIALRULESOFCOURTONADR
Theissuesinvolvedintheseproceedingsare:
Existenceofthearbitrationagreement whetherornotthereisanarbitration
agreement;
Validityofthearbitrationagreement whetherornotthearbitrationagreement
complieswithalltherequisitesforavalidcontract;
Enforceability of the arbitration agreement whether or not the arbitration
agreementisenforceableinaccordancewitharticle1403ofthecivilcode;
JUDICIALRELEIFBEFORECOMMENCEOFARBITRATION

5.

Thecompetencecompetenceprinciple thetribunalshallbeaccordedthefirst
opportunityorcompetencetoruleontheissuewhetherornotithascompetenceor
jurisdictiontodecideadisputesubmittedtoitfordecision,includinganyobjection
withrespecttotheexistenceorvalidityofthearbitrationagreement.

6.

Noarbitratorshallactasmediatorinanyproceedinginwhichheisactingas
arbitratorhowever,thepartiestomediationhaveagreedinthewrittensettlement
agreementthatthemediatorshallbecomethesolearbitratorfordisputeorthatthe
settlementagreementshallbecomeanarbitralaward,themediatorarbitratorshall
issue the settlement agreement as an arbitral award which shall be subject to
enforcementunderthelaw.

Therulesonjudicialreliefpriortothecommencementofarbitrationapplywhenthe
followingcircumstancesarepresent:
Thearbitrationproceedinghasnotyetcommenced;and
There is between the parties a dispute regarding the existence, validity or
enforceabilityofthearbitrationagreement.

Theproceduralrulesareasfollows:
Theproceduralrulesare:
1.Petitiontheinitiatorypleadingforjudicialreliefbeforethecommencementof
arbitrationisapetitionfiledwiththeRTCwhereanyofthepartiesresidesorhashis
principalplaceofbusiness.
2. Comment/opposition within 15 days from service of the petition, the
respondentmustfilehiscommentoropposition.
3.

Courtactioninresolvingthepetition,thecourtmustexercisejudicialrestraintand
defertothecompetenceorjurisdictionofthetribunaltoruleonitscompetenceand
jurisdiction.

4.

Relief against court action the determination by the court upholding the
existence, validity or enforceability of the arbitration agreement under these
proceedings is merely prima facie. Such prima facie determination shall not be
subjecttoaMR,appealorcertiorari,butshallbewithoutprejudicetotherightof
anypartytoraisethesameissuesbeforethetribunalorthecourtinapetitionto
vacateorsetasidethearbitralaward,whichshallberesolvedinaccordancewiththe
standardssetforsuchproceedings.
Therulesonjudicialreliefafterthecommencementofarbitrationapplyunder
thefollowingcircumstances:

1.

Thearbitrationproceedinghasalreadycommenced,thetribunalhasbeenconstituted
andhasrenderedpreliminaryrulingonitsjurisdiction;and

2.

Apartydesirestochallengethetribunalsrulingontheissueofjurisdiction.

1.Petitionwithin30daysformthereceiptofthenoticeofrulingfromanarbitral
tribunal, an aggrieved party may file a petition with the RTC.2.
Comment/opposition respondentshouldfilehiscommentoroppositionwithin
15daysfromthedateofserviceofpetition.
3.Courtactioncourtshallrenderjudgmentonthebasisofthepleadingsfiledand
evidencesubmitted,within30daysfromthepetitionissubmittedforresolution.The
filingandpendencyofthepetitionforjudicialreliefshallnotbeacauseforthecourt
toenjointhearbitrationandthetribunalmayproceedwiththearbitrationandrender
theaward.
4.ReliefagainstcourtactiontheaggrievedpartymayfileaMRoftheorderof
thecourt,whichshallnotbesubjecttoappeal.Anorderaffirmingthejurisdictionof
thetribunalshallnotbesubjecttoapetitionforcertiorari,butanorderdenying
jurisdictionmaybethesubjectofsuchpetition.

REFERRALTOADR
Whilethesubtitleofrule4oftheSpecialADRrulesisReferraltoADRthisrule
actuallypertainstothereferralofapendingcourtactiontoarbitrationratherthan
anyotherformofADR.Thesituationcontemplatedbythisruleisthatwhere:
1.Thereisalreadypendingcourtaction.2.Thereiseitherapreactionagreementif
executedpriortothefilingofan
action,orapresentactionagreementifexecutedafterthefilingofthe
action.3.Andoneorbothpartiesdesiretoundergoarbitration.

Thepartiesmayrequestfromthecourt,thefollowinginterimmeasures:
InaccordancewiththeprincipleofpreferenceforADR,courtsareprohibited
from denying for the request for referral of some or all of the parties to
arbitrationforanyofthefollowingreasons:
1.Notallofthedisputessubjectofthecivilactionmaybereferredtoarbitration;
2.

Notallofthepartiestothecivilactionareboundbythearbitrationagreementand
referraltoarbitrationwouldresultinmultiplicityofsuits;

3.

Theissuesraisedinthecivilactioncouldbespeedilyandefficientlyresolvedinits
entiretybythecourtratherthaninanarbitration;

4.

Referraltoarbitrationdoesnotappeartobethemostprudentaction;or

5.

Thestayoftheactionwouldprejudicetherightsofthepartiestothecivilactionwho
arenotboundbythearbitrationagreement.

Preliminaryinjunctiondirectedagainstapartytoarbitration;
Preliminaryattachmentagainstpropertyorgarnishmentoffundsinthecustodyofa
bankorthirdperson;
Appointingofareceiver
Detention,preservation,deliveryorinspectionofproperty;
Assistanceintheenforcementofaninterimmeasureofprotectiongrantedbythe
arbitraltribunal,whichitcannotenforceeffectively.
Thefollowingrulesaretherulesofprocedurefortheapplicationforinterim
measuresofprotectionwiththecourt:
Petition
Comment/opposition

INTERIMMEASURESOFPROTECTION
Therulesonjudicialissuanceofinterimmeasuresofprotectioncontemplatethe
situation:
1.

Either:a.beforethecommencementofarbitration,orb.afterthecommencementof
the arbitration but prior to the constitution of the arbitral tribunal, c. after the
tribunalsconstitutionbutithasnopowertoactorisunabletoacteffectively;and

2.

Whereapartydesirestosecureinterimmeasuresofprotection.

Courtaction
Reliefagainstcourtaction
ThecourtunderthefollowingconditionsmayissueaTOPorTPM:
Thereisanurgentneedtoa.preservetheproperty;b.preventtherespondentfrom
disposingof,orconcealingtheproperty;orc.preventthereliefprayedforfrom
beingillusorybecauseofpriornotice.
Thepetitionershallpostabondtoanswerforanydamagethattherespondentmay

suffer;
3.

Itshallbevalidonlyfor20daysfromtheserviceonthepartyrequiredtocomply
unlessextendedbutnotformorethan20days;

immediately referred by the court to the arbitral tribunal, which shall have the
authoritytodecidesuchquestion.

4.

Duringthe20dayperiodandanyextensionthecourtshalldeterminetheproprietyof
issuingtheprincipalinterimprotectivemeasurerequested;and

The court shall defer action on any pending petition for an interim measure of
protectionfiledbyapartytoanarbitrationagreementarisingfromorinconnection
withadisputethereunderuponbeinginformedthatanarbitraltribunalhasbeen
constitutedpursuanttoanagreement.

5.

It can be lifted by the respondent by posting an appropriate counterbond as

determinedbythecourt.

5.Andthecourtshallassistintheenforcementofaninterimmeasureofprotection
issuedbythearbitraltribunal,whichthelatterisunabletoeffectivelyenforce.
APPOINTMENTOFARBITRATORS

Theyare,however,differentinthefollowingrespects:

Therulesonjudicialappointmentofarbitratorsapplyif:

The rules on interim measures of protection recognize the principle of

preference for arbitration over judicial proceedings.Thefollowinginstances
illustratethisprinciple:

Thereisfailuretoappointanarbitratorunderthefollowingcircumstances:a.Where
any of the parties in an institutional arbitration failed or refused to appoint an
arbitratororthepartieshavefailedtoreachanagreementonthesolearbitratoror
whenthetwodesignatedarbitratorshavefailedtoreachanagreementonthethirdor
presiding arbitrator and the institution under whose rules arbitration is to be
conductedfailsorisunabletoperform itsdutyasappointingauthoritywithina
reasonabletimefromreceiptoftherequestforappointment.b.Wherethearbitration
isadhocandthepartiesfailedtoprovideamethodforappointingorreplacingan
arbitratororsubstitutearbitratororthemethodagreeduponisineffectiveandthe
NationalPresidentofIBPorhisdulyauthorizedrepresentativefailsorrefusestoact
withinperiodasmaybeallowedunderthepertinentrulesoftheIBPorwithinthe
absence of such request for appointment; c. Where the parties agreed that their
dispute shall be resolved by 3 arbitrators but no method of appointing those
arbitratorshasbeenagreeduponandthepartiesandsubsequently,theappointing
authorityfailsorrefusestoappointthearbitratorwithinreasonabletimefromreceipt
oftherequesttodoso;and

1.

Anycourtordergrantingordenyinganinterimmeasureofprotectioniswithout
prejudicetothesubsequentgrant,modification,amendment,revision,orrevocation
bythearbitraltribunal.

Anypartyorthe appointedarbitratorsrequest the court toact astheappointing

rd
authorityandappointthearbitratoror3 arbitratorasthecasemaybe.

2.

An interim measure of protection issued by the arbitral tribunal shall upon its
issuancebedeemedtohaveipsojuremodified,amended,revised,orrevokedan
interimmeasureofprotectionissuedbythecourttotheextentthatitisinconsistent
withthesubsequentinterimmeasureofprotectionissuedbythearbitraltribunal.

1.

TheeffectivityofTOPorTPMissusceptibleofextensionfornotmorethan20days,
whileTROisnonextendibleandbecomesfunctusofficioafterthelapseof20days
fromtheservice.

2.

AbondisrequiredforTOP/TPM,unlikeaTROwhichdoesnotgenerallyrequired
the posting of a bond. Instead, a bond is required for the issuance of a writ of
preliminaryinjunction.

3.

AndATOP/TPMmaybeliftedthroughthepostingofacounterbond,whichisnot
trueofTRO.Instead,acounterbondmayliftawritofpreliminaryinjunction.

Hereunder1.Petition
therulesofprocedureforthejudicialappointmentorarbitrators:
Comment/opposition

3.

Anyquestioninvolvingaconflictorinconsistencybetweenaninterimmeasureof
protection issued by a court and one issued by an arbitral tribunal shall be

Courtaction

4.

Reliefagainstcourtaction
CHALLENGETOAPPOINTMENTOFARBITRATOR
The rules on judicial challenge to the appointment of arbitrators apply to the
followingsituation:

1.

Thechallengetotheappointmentofanarbitratorbeforethearbitraltribunalisnot
successfulandtheappointingauthorityfailsorrefusestoactonthechallengewithin
periodoftimeasmaybeallowedundertheapplicableruleorintheabsence,within
30daysfromreceiptoftherequest;and

2.

Theaggrievedpartywanttosecurejudicialactiononthechallenge.

Theprocedureforthechallengetotheappointmentofanarbitratorbeforethe
courtisasfollows:
Petition
Comment/opposition
Courtactionthecourthasanyofthefollowingoptionsinresolvingthepetition:a.
grantthepetitionbyremovingthechallengedarbitrator;b.dismissthepetitionif
there is no merit; c. allow the challenged arbitrator to withdraw; d. accept the
challenge and remove the arbitrator if: 1. The party or parties who named and
appointed the challenged arbitrator agree to challenge and withdraw the
appointment; 2.Theotherarbitratorsinthetribunal agreetotheremovalofthe
challengedarbitrator;or3.Thechallengedarbitratorfailsorrefusestosubmithis
commentonthepetitionorthebriefoflegalargumentsasdirectedbythecourtorhe
failstoobjecttohisremoval
Noreliefagainstcourtactionanyorderofthecourtresolvingthepetitionshallbe
immediatelyexecutorandshallnotbesubjecttoMR,appealorcertiorari.
TERMINATIONOFMANDATEOFARBITRATOR
Therulesonthejudicialterminationofmandateofanarbitratorapplywhen:
Anarbitratorbecomesdejureordefactounabletoperformhisfunctionsorforother
reasonsfailtoactwithoutunduedelay;
Thearbitrator,uponrequestofanyparty,failsorrefusestowithdrawfromhisoffice;
Theappointingauthorityfailsorrefusestodecideontheterminationofthemandate

ofthearbitratorwithintheperiodoftimeasmaybeallowedundertheapplicable
ruleorintheabsence,within30daysfromthetimetherequestisbroughtbeforehim;
4.

Anypartyseeksjudicialactioninterminatingthemandateofanarbitrator.

Theprocedureforthejudicialterminationofthemandateofanarbitratorisas
follows:
1.

Petition

The rules on judicial assistance in taking evidence apply in the following

situation:

2.

Comment/opposition

Thereispendingarbitration,whetherdomesticorforeign;

3.

Courtaction

Apartydesirestopresent evidenceorthearbitral tribunalorderedthetakingof

evidence,necessitatingcourtassistance,and

4.

Noreliefagainstcourtaction
ASSISTANCEINTAKINGEVIDENCE

Theevidenceissoughtfromaperson,includingarepresentativeofacorporation,
association,partnershiporotherentityotherthanapartytothearbitrationorits
officersfoundintheRP.

TheycorrespondtothedifferentclassesofevidenceundertheRulesofCourt
thus:
Ontestimonialevidence:
Tocomplywithasubpoenaadtestificandum;
Toappearaswitnessbeforeanofficerforthetakingofhisdepositionuponoral
examinationorwritteninterrogatories.
Ondocumentary:
Tocomplywithasubpoenaducestecum;

Toallowtheexaminationandcopyingofdocuments.
3.

Onrealevidence:
a.Toallowthephysicalexaminationoftheconditionofpersonsortheinspectionof
thethingsorpremisesandwhenappropriatetoallowtherecordingordocumentation
oftheconditionsofpersons,things,orpremises.

Theprocedureforjudicialassistanceintakingevidenceisasfollows:
1.

Petition

2.

Comment/opposition

3.

Courtaction

4.

Reliefagainstcourtaction.

Therulesonconfidentialityandprotectiveordersapplywhen:
AnADRproceedingispending;
Aparty,counselorwitnessdisclosedinformationorwasotherwisecompelledto
discloseinformation;
The disclosure was made under circumstances that would create a reasonable
expectationonbehalfofthesource,thattheinformationshallbekeptconfidential;
Thesourceoftheinformationorthepartywhomadethedisclosurehastherightto
preventsuchinformationfrombeingdisclosed;
Thesourceoftheinformationorthepartywhomadethedisclosurehasnotgivenhis
expressconsenttoanydisclosure;and
Theapplicantwouldbemateriallyprejudicedbyanunauthorizeddisclosureofthe
informationobtainedortobeobtainedduringtheADR.

Thebenefitoftherulesisavailablenotjustforarbitrationproceedings,butalsofor
allotherformsofADR.Theprocedureforthejudicialenforcementofconfidentiality
orprotectivemeasures:
Petition

2.

Comment/opposition

3.

Courtaction

4.

Reliefagainstcourtaction
Rules11to13ofthespecialADRrulesgoverntheconfirmation,recognition,
enforcement, correction, vacation or setting aside of arbitral awards. The
circumstancescoveredbythesesrulesareasfollows:

1.

2.

An arbitral award has been rendered either in a1. Domestic arbitration; 2. ICA
conducted in the Philippines; or 3. Foreign arbitration resulting in a convention
awardornonconventionawardbutwithcomityandreciprocity.
A party seeks to 1. Confirm, correct or vacate the domestic arbitral award; 2.
RecognizeandenforceorsetasidetheICAawardrenderedintheRP;3.Recognize
andenforcetheforeignconventionawardortheforeignasinconventionaward.

controversyandifithadbeenacommissionersreport,thedefectcouldhavebeen
amendedordisregardedbythecourt.
3.Vacationofthedomesticarbitralaward,thepetitionforwhichmustalsobefiled
notlaterthan30daysfromreceiptofthearbitralaward.Thegroundsareasfollows:
Thearbitralawardwasprocuredthroughcorruption,fraudorotherunduemeans;
Therewasevidentpartialityorcorruptioninthetribunaloranyofitsmembers;
Thetribunalwasguiltyofmisconductoranyformofmisbehaviorthathasmaterially
prejudicedtherightsofanyparty;
Oneormoreofthearbitratorswasdisqualifiedtoactassuchunderthelawand
wilfullyrefrainedfromdisclosingdisqualification;

CAUSESOFACTIONANDGROUNDS

The tribunal exceeded its powers or so imperfectly executed them, such that a
complete,finalanddefiniteawarduponthesubjectmattersubmittedtothemwasnot
made;

Threeprincipalcausesofactionarecoveredbyrule11ofthespecialADRrules,
namely:

Theagreementdidnotexistorisinvalidforanygroundfortherevocationofa
contractorunenforceable;or

1.

Confirmationofthedomesticaward,thepetitionforwhichcanbefiledatanytime
afterthelapseof30daysfromreceiptbythepetitionerofthearbitralaward.The
petitionshallbegrantedunlessthereexistgroundstovacatetheaward.

2.

Correctionormodificationofthedomesticarbitral award,thepetitionforwhich
mustbefilednotlaterthan30daysfromreceiptofthearbitralaward.Thegrounds
areasfollows:

A party to the arbitration is a minor or a person judicially declared to be

incompetent,inwhichcase,thepetitionshallbefiledonlyonbehalfoftheminoror
the incompetent person, and shall allege that 1. The other party had knowingly
entered into a submission or agreement with minor or incompetent; and 2. The
submissiontoarbitrationwasmadebyaguardianorguardianadlitemwhowasnot
authorizedtodosobyacompetentcourt.
Specifically,thefollowingcombinationsarepossible:

a.

Wheretherewasanevidentmiscalculationoffiguresoranevidentmistakeinthe
descriptionofanyperson,thingorpropertyreferredtointheaward;

b.

Where the arbitrators have awarded upon a matter not submitted to them, not
affectingthemeritsofthedecisionuponthemattersubmitted;

c.

Where the arbitrators have omitted to resolve an issue submitted to them for
resolution;

d.

Wheretheawardisimperfectinamatterofformnotaffectingthemeritsofthe

1.
2.
3.

Confirmation/vacation
Confirmation/correction
Vacation/correction

Combinationispossibleonlyinthefollowing:
Ifthepetitiontovacate,withafilingperiodof30daysfromreceiptofthearbitral
award,isfiledfirstasitcanbeopposedbyapetitioninoppositionforconfirmation,
whichcanbefiledafter30daysfromreceiptofthearbitralaward.

2.

Orifthearbitralawardisreceivedaheadbythepartyintendingtoconfirmitanditis
receivedlaterbythepartyintendingtovacateit,inwhichcase,thefilingperiodfor
thepetitiontosetasidetheawardwilloverlapwiththefilingperiodforthepetition
forconfirmation.
Therulesprohibitforumshoppingandmultiplicity

Theproceduralrulesforthejudicialconfirmation,correctionorvacationof
domesticarbitralawards:

1.Thepartymakingtheapplicationfurnishesproofthat:
Apartytoarbitrationagreementwasundersomeincapacityorthesaidagreementis
not validunderthelawtowhichthepartieshavesubjectedtoit or,failingany
indicationunderthePhilippineLaw;
Thepartymakingtheapplicationtosetasideorresistenforcementwasnotgiven
propernoticeoftheappointmentofanarbitratororofthearbitralproceedingsorwas
otherwiseunabletopresenthiscase;
Theawarddealswithadisputenotcontemplatedbyornotfallingwithinthetermsof
thesubmissiontoarbitration,orcontainsdecisionsonmattersbeyondthescopeof
thesubmissiontoarbitration.

1.

Petition

2.

Comment/opposition/petitioninopposition

Thecompositionofthearbitraltribunalortheprocedurewasnotinaccordancewith
theagreementofthepartiesunlesssuchagreementwasinconflictwiththeprovision
ofPhilippinelaw

3.

Reply

ProceduralRules:

4.

Hearing

Petition

5.

Courtaction

Notice,oppositionandreply

6.Reliefagainstcourtaction

Hearing
Suspensionoftheproceedings

CAUSESOFACTION
Thefollowingaretheexclusivecausesofactioncoveredbyrule12ofthespecial
ADRrules:
1.

RecognitionandenforcementofanICAaward.

2.

SettingasideanICAaward
GROUNDS
The grounds for setting aside an ICA award or to resist its enforcement are as
follows:

Judgement
Relieffromcourtaction
The RP courts may refuse recognition and enforcement to foreign arbitral
awardsonanyofthefollowinggrounds:
Thepartymakingtheapplicationrefuserecognitionandenforcementfurnishesproof
that:
Apartytoarbitrationagreementwasundersomeincapacityorthesaidagreementis
not valid under the law to which the parties have subjected it or failing any
indication,underthelawofthecountrywheretheawardwasmade;

Thepartymakingtheapplicationwasnotgivenpropernoticeoftheappointmentof
anarbitratororofthearbitralproceedingsorwasunabletopresenthiscase;
Theawarddealswithadisputenotcontemplatedornotfallingwithinthetermsof
thesubmissiontoarbitration,orcontainsdecisionsonmattersbeyondthescopeof
thesubmissiontoarbitration;providedthat,ifthedecisionsonmatterssubmittedto
arbitrationcanbeseparatedfromthosenotsosubmitted,onlythatpartyoftheaward
which contains decisions on matters no submitted to arbitration may be refused
recognition;
The composition of the tribunal or proceedings was not in accordance with the
agreementoftheparties,or,failingagreement,wasnotinaccordancewiththelawof
thecountrywherearbitrationtookplace;
The awards has not yet become binding onthe parties or has been set aside or
suspendedbyacourtofthecountryinwhichthatawardwasmade;
2.

Orthecourtfindsthat:
Thesubjectmatterofthedisputeisnotcapableofsettlementbyarbitrationunderthe
RPlaw;or
Therecognitionorenforcementoftheawardwouldbecontrarytopublicpolicy.

NOOTHERGROUNDSHALLBECONSIDEREDBYTHECOURT.
Proceduralrules:
1.

Petition

2.

Noticeandopposition

3.

Hearing

4.

Decision
CHAPTER10:SPECIALRULESOFCOURTONADR
Thepartiesmayrequireanyofthefollowingprocessorproceedingregardingthe

mediatedsettlementagreements:
Depositofmediatedsettlementagreement;and
Enforcement of the mediated settlement agreements. Special rules cover the
remediesavailabletopartiesforchallengingtheorders,decisionsorjudgments
renderedbytheRTConmattersrelatingtoADR.Theseremediesare:
MR
AppealstoCA
SCAforcertiorari
AppealbycertioraritoSC
Inthecaseof ABSCBNBROADCASTINGCORPVS.WINSJAPANCO.(544
SCRA308,2009),theSC,citing INSULARSAVINGSBANKVS.FAREAST
BANKANDTRUSTCOMPANY(492SCRA1452006),outlinedseveraljudicial
remediesapartyaggrievedbyadomesticarbitralawardmaytakenamely:
ApetitionintheproperRTCtoissueanordertovacatetheawardonthegrounds
providedforinSection24ofRA876;
ApetitionforreviewinCAunderrule43ofROConquestionsoffact,oflawor
mixedquestionsoffactandlaw;and
A petition for certiorari under rule 65 of ROC should the arbitrator have acted
withoutorinexcessofhisjurisdictionorwithgraveabuseofdiscretionamounting
tolackorexcessofjurisdiction.

MOTIONFORRECONSIDERATION
AMRunderrule37ofROCmaybefiledonthegroundsthatthefindingsor
conclusionsofthejudgmentorfinalorderarenotsupportedbyevidence;more
soarecontrarytolaw.
ApartyaggrievedbyarulingoftheRTCinanADRrelatedproceeding,may

filewiththesameRTCinanADRrelatedproceeding,mayfilewiththesame
RTC,MRfromthefollowingordersorrulingswithin15daysfromreceiptof:

settlementagreement.

1.

Thearbitrationagreementisinexistent,invalidorunenforceable;

Aprimafaciedeterminationupholdingtheexistence,validityandenforceabilityof
anarbitrationagreement;

2.

Upholdingorreversingthetribunalsjurisdiction;

3.

Denyingarequesttoreferthepartiestoarbitration;

4.

Grantingordenyingapartyaninterimmeasureofprotection;

5.

Denyingapetitionfortheappointmentofanarbitrator;

6.

Refusingtograntanassistanceintakingevidence;

7.

Enjoiningorrefusingtoenjoinapersonfromdivulgingconfidentialinformation;

8.

Confirming,vacatingorcorrectingadomesticarbitralaward;

9.

SuspendingtheproceedingstosetasideanICAawardandreferringthecasebackto
thearbitraltribunal;

10.

SettingasideanICAaward;

11.

Dismissing the petition to set aside an ICA award even if the court does not
recognizeand/orenforcethesame;

12.

Recognizingand/orenforcing,ordismissingapetitiontorecognizeand/orenforce
anICAaward;

13.

Decliningarequestforassistanceintakingevidence;

14.

Adjourning or deferring in a ruling on a petition to set aside, recognize and/or

enforceanICAaward;
15.Recognizingand/orenforcingaforeignarbitralawardorrefusing
recognitionand/orenforcementofthesame;and16.Grantingordismissingapetition
toenforceadepositedmediated

NoMRshallbeallowedfromthefollowingrulingsandordersoftheRTC:

Anorderreferringthedisputetoarbitration;
Anorderappointinganarbitrator;
Anyrulingonthechallengetotheappointmentofanarbitrator;
Anyorderresolvingtheissueoftheterminationofthemandateofanarbitrator;
Anordergrantingassistanceintakingevidence.

GENERALPROVISIONSONAPPEALANDCERTIORARI
ThemodesofreviewbytheCAandSCofdecisionsorordersoftheRTCare:
Ordinaryappealbynoticeofappealonerrorsoffact,lawormixedfactandlaw;
PetitionforreviewtoCAonerrorsoffact,lawormixedfactandlaw;
Appealbycertiorarisuchas:
Thecourtaquohasdecidedaquestionofsubstance,notthereforedeterminedbythe
SCorhasdecideditinawayprobablynotinaccordwiththeapplicabledecisionSC;
Thecourtaquohassofardepartedfromtheacceptedandusualcourseofjudicial
proceedings,orsofarsanctionedsuchdeparturebyalowercourtastocallforan
exerciseofthepowerofsupervision;
4.

SCA for certiorari when there is no appeal on any plain, speedy and
adequateremedyundertheordinarycourseoflaw;

In the allowable appeal or review in ADR related cases, the appellate or

reviewingcourtmusttakeintoaccountthefollowingprincipleswhichshould
havebeenobservedbytheRTCwhoseorderordecisionisunderreview:
10.
1.Apartyisprecludedfromfilinganappealorapetitionforcertiorariquestioning
themeritsofanarbitralaward.

Recognizingand/orenforcingforeignarbitralaward;
Refusingrecognitionand/orenforcementofaforeignarbitralaward;
11.Granting or dismissing a petition to enforce a deposited mediated settlement
agreement;and

2. Appeals from decision of the RTC are exceptional remedies. They shall be
allowed only on the instances provided under the special rules and only in the
mannerprovided.

12.Reversingtherulingofthearbitraltribunalupholdingitsjurisdiction.

3.Asageneralrule,thegroundsandinfirmitiesprovidedforthevacationorsetting
asideofadomesticarbitralawardorICAawardareexclusive.Noothergroundcan
beraisedexceptifitamountstoaviolationofpublicpolicy.

Unlikeapetitionforcertiorariunderrule65ofROCwhichcancoverallkinds
ofgraveabuseofdiscretioncommittedbyatribunal,theSCAforcertiorari
underthespecialrulesislimitedtograveabuseofdiscretioninthefollowing
ordersoftheRTCinADRrelatedproceedings:

4.Thecourtcandenyrecognitionandenforcementofaforeignarbitralawardonly
uponthegroundsprovidedforinarticleVIofNYConvention.Thecourtdoesnot
havethepowertovacateorsetasideaforeignarbitralawardbecauseitwasrendered
byanentityoutsidetheRP.

Holdingthatthearbitrationagreementisinexistent,invalidorunenforceable;
Reversingthearbitraltribunalspreliminarydeterminationupholdingitsjurisdiction;
Denyingtherequesttoreferthedisputetoarbitration;

Underthespecialrules,thepetitionforreviewtotheCAshallbeallowedonly
fromthefollowingordersofRTC:

Grantingorrefusinganinterimrelief;

1.

Grantingordenyinganinterimmeasureofprotection;

2.

Denyingapetitionforappointmentofanarbitrator;

3.

Denyingapetitionforassistanceintakingevidence;

4.

Enjoiningorrefusingtoenjoinapersonfromdivulgingconfidentialinformation;

5.

Confirming,vacatingorcorrecting/modifyingadomesticarbitralaward;

6.

SettingasideanICAaward;

Adjourningordeferringarulingonwhethertosetaside,recognizeand/orenforcean
ICAaward;

7.

DismissingthepetitiontosetasideanICAawardevenifthecourtdoesnotdecideto
10.
recognizeorenforceaward;

Allowingapartytoenforceaforeignarbitralawardpendingappeal;

8.

Recognizingand/orenforcinganICAaward;

Denyingapetitionfortheappointmentofanarbitrator;
Confirming,vacatingorcorrectingdomesticarbitralaward;
Suspendingtheproceedingstoset asideanICAawardandreferringbacktothe
tribunal
AllowingapartytoenforceanICAawardpendingappeal

11.

Denyingapetitionforassistanceintakingevidence.

Rule45oftheROCillustratedtheinstanceswhenanappealbycertioraritothe
SCiswarrantedthereunder,towit:

Tosupervisethearbitrationprogram,andexercisesuchauthorityrelatedasregards
theappointment,replacement,orchallengingofarbitrators;and

1.

WhenthecourtaquohasdecidedaquestionofsubstancenotdeterminedbytheSC
orhasdecideditinawayprobablynotinaccordwithlaworwiththeapplicable
decisionsoftheSC;or

Todirectitsofficesandemployeestoperformsuchfunctionsasmaybeassignedto
themfromtimetotime.

2.

Whenthecourtaquohassofardepartedfromtheacceptedandusualcourseof
judicialproceedingsorsanctionedsuchdeparturebylowercourtastocallforan
exerciseofthepowerofsupervision.

ThefollowingaretheproceduralrulesintheCIAC:
1.Complaint/requestforarbitrationtheinitiatorypleadingwhichmustbefiled
withtheSecretariatoftheCIAC.
2.Answerwithin3daysfromfiling,transmittotherespondentarequest

The special rules also deemed it best to illustrate instead of enumerate the
instanceswhenapetitionforreviewoncertiorariofthedecisionoftheCAto
SCmaybegrantednamely:
1.

Failedtoapplytheapplicablestandardorjudicialreviewprescribedinthesespecial
rulesinarrivingatitsdecisionresultinginsubstantialprejudicetotheparty;

2.

Erredinupholdingafinalorderordecisiondespitethelackofjurisdictionofthe
court

3.

4.

Failedtoapplyanyprovision,principleorpolicyorrulecontainedinthesespecial
rules;
Committed an error so egregious and harmful to a party as to amount to an
undeniableexcessofjurisdiction.
CHAPTER12:CONSTRUCTIONDISPUTEARBITRATION

forhisanswer.Withoutprejudicetoextensionsoftimeifwarranted,therespondent
has15daysfromreceiptoftherequestforarbitrationorcomplaintwithinwhich,to
filehisanswer.Failureoftherespondenttofileananswerorhisrefusaltoarbitrate
shall not stay the proceedings as long as the jurisdiction of the CIAC has been
properlyinvokedbythefilingoftherequestforarbitrationinaccordancewithCIAC
revisedrules.If,beforetheaward,therespondentappearsandofferstopresenthis
evidence,thetribunalmay,forjustifiablereasons,reopenstheproceedings,require
himtofilehisanswerandallowhimtopresentevidence.
3.Replyclaimantmayfileareplytothecounterclaimwithin15days.
Appointmentandacceptanceofarbitrators
Challengetoarbitrators
Preliminaryconferenceandtermsofreference

TheCIAChasthefollowingfunctions:

Arbitrationproceedings

1.

Toformulateandadoptanarbitrationprogramfortheconstructionindustry;

Award

2.

Toenunciatepoliciesandprescriberulesandproceduresforconstructionarbitration; 9.

Executionoftheaward