2014 BAR POINTERS

IN ALTERNATIVE DISPUTE RESOLUTION

(By: Atty. J-Vit B. Capellan) II. RELEVANT CONCEPTS/SUBJECTS.

1. WHAT IS AN ALTERNATIVE DISPUTE RESOLUTION?

I. RELEVANT LAWS.
1. NEW CIVIL CODE.
Art. 1308. The contract must bind both contracting parties;
its validity or compliance cannot be left to the will of one of them.
Art. 2028. A compromise is a contract whereby the parties,
by making reciprocal concessions, avoid a litigation or put an end to one
already commenced.
Art. 2029. The court shall endeavor to persuade the litigants
in a civil case to agree upon some fair compromise.
ADR - means any process or procedure used to resolve a dispute or controversy, other than by
adjudication of a presiding judge of a court or an officer of a government agency, in which a neutral third
party participates to assist in the resolution of issues, which includes arbitration, mediation, conciliation,
early neutral evaluation, mini-trial, or any combination thereof. (Sec. 3, R.A. No. 9285)
2. WHAT IS COMMERCIAL ARBITRATION?
Any trade transaction for the supply or exchange of goods or services; distribution agreements;
construction of works; commercial representation or agency; factoring; leasing, consulting;
engineering; licensing; investment; financing; banking; insurance; joint venture and other forms of
industrial or business cooperation; carriage of goods or passengers by air, sea, rail or road. (Sec. 21,
R.A. No. 9285)
3. PRIVATE LITIGATION DISTINGUISHED FROM PUBLIC LITIGATION.

Art. 2030. Every civil action or proceeding shall be 3.1. In Private Litigation:
suspended: 3.1.1. There is private-party autonomy in the resolution of disputes or the
(1) If willingness to discuss a possible compromise is freedom of the parties to make their own arrangements to resolve their disputes;
expressed by one or both parties; or 3.1.2. Neutral third party participates to assist in the resolution of issues,
(2) If it appears that one of the parties, before the which includes arbitration, mediation, conciliation, early neutral evaluation, mini-
commencement of the action or proceeding, offered to discuss a trial, or any combination thereof;
possible compromise but the other party refused the offer. 3.1.3. Parties have the freedom to choose either accredited or non-accredited
The duration and terms of the suspension of the civil action to act as arbitrator, mediator, conciliator, neutral party evaluator;
or proceeding and similar matters shall be governed by such provisions 3.1.4. Voluntary dispute resolution;
of the rules of court as the Supreme Court shall promulgate. Said rules 3.2. In Public Litigation:
of court shall likewise provide for the appointment and duties of 3.2.1. Disputes are resolved pursuant to the application or interpretation of
amicable compounders. laws and rules of procedure;
3.2.2. Adjudication of a presiding judge of a court or an officer of a
Art. 2042. The same persons who may enter into a government agency;
compromise may submit their controversies to one or more arbitrators 3.2.3. Parties do not choose the adjudicator or hearing officer;
for decision. 3.2.4. Parties are subjected to the operative force (i.e. jurisdiction, compulsory
processes, etc.) of the court or government agency;
2. PERTINENT SPECIAL LAWS/RULES:
2.1. R.A. No. 876 – THE ARBITRATION LAW 4. MODES OF ADR.
2.2. E.O. No. 1008 – CONSTRUCTION INDUSTRY ARBITRATION LAW 4.1. Arbitration
2.3. CIAC REVISED RULES OF PROCEDURE GOVERNING CONSTRUCTION ARBITRATION, 4.2. Mediation
AS AMENDED 4.3. Conciliation
2.4. R.A. No. 9285 – ALTERNATIVE DISPUTE RESOLUTION ACT OF 2004 4.4. Negotiation
2.5. A.M. No. 07-11-08-SC - SPECIAL RULES OF COURT ON ALTERNATIVE DISPUTE 4.5. Neutral Early Evaluation/Mini-Trial
RESOLUTION
2.6. DOJ DEPARTMENT CIRCULAR NO. 98 - IMPLEMENTING RULES AND REGULATIONS 5. JUDICIAL DISPUTE RESOLUTION DISTINGUISHED FROM ARBITRATION.
OF THE ALTERNATIVE DISPUTE RESOLUTION ACT OF 2004. 5.1. In JDR:
2.7. “NEW YORK CONVENTION” - CONVENTION ON THE RECOGNITION AND 5.1.1. The framework is based on the processes of
ENFORCEMENT OF FOREIGN ARBITRAL AWARDS adopted by the UNITED NATIONS on 10 JUNE mediation, conciliation or early neutral evaluation which entails the submission of a
1958, ratified by the Philippine Senate under SENATE RESOLUTION No. 71. dispute before a "JDR judge" who shall merely "facilitate settlement" between the
2.8. “MODEL LAW” - MODEL LAW ON INTERNATIONAL COMMERCIAL ARBITRATION, parties in conflict or make a "non-binding evaluation or assessment of the chances
adopted by the UNITED NATIONS COMMISSION ON INTERNATIONAL TRADE LAW (UNCITRAL) of each party's case."
on 21 JUNE 1985.
 5.1.2. The JDR judge lacks the authority to render a 2.1. The referral tends to oust a court of its jurisdiction;
resolution of the dispute that is binding upon the parties in conflict. 2.2. The court is in a better position to resolve the dispute subject of arbitration;
5.2. In Arbitration: 2.3. The referral would result in multiplicity of suits;
5.2.1. The dispute is submitted to an arbitrator, who is a neutral third person 2.4. The arbitration proceeding has not commenced;
or a group of thereof; 2.5. The place of arbitration is in a foreign country;
5.2.2. An Arbitrator or Arbitral Tribunal shall have the authority to render a 2.6. One or more of the issues are legal and one or more of the arbitrators are not
resolution binding upon the parties. lawyers;
2.7. One or more of the arbitrators are not Philippine nationals; or
6. “CHOICE OF LAW” AND “CHOICE OF PROCEDURE”. 2.8. One or more of the arbitrators are alleged not to possess the required qualification
6.1. Freedom to Adopt Procedures to Resolve or Settle their Controversies. under the arbitration agreement or law.
6.2. Whenever the parties agree to submit their dispute to mediation by an institution
it is deemed to include the agreement to be bound by the institutional rules of such body. 3. Where court intervention is allowed under ADR Laws or the Special ADR Rules, courts shall not refuse
6.3. An agreement to submit a dispute to mediation by any institution shall include an to grant relief for any of the following reasons:
agreement to be bound by the internal mediation and administrative policies of such 3.1. Prior to the constitution of the arbitral tribunal, the court finds that the principal
institution. Further, an agreement to submit a dispute to mediation under international action is the subject of an arbitration agreement; or
mediation rule shall be deemed to include an agreement to have such rules govern the 3.2. The principal action is already pending before an arbitral tribunal.
mediation of the dispute and for the mediator, the parties, their respective counsel, and
nonparty participants to abide by such rules. 4. The Special ADR Rules recognize the principle of competence-competence - which means that the
In case of conflict between the institutional mediation rules and the provisions of this Act, the arbitral tribunal may initially rule on its own jurisdiction, including any objections with respect to the
latter shall prevail. (Sec. 16) existence or validity of the arbitration agreement or any condition precedent to the filing of a request
for arbitration.
7. EXCLUSIONS IN ADR.
7.1. Labor disputes covered by Presidential Decree No. 442, otherwise known as the 5. The Special ADR Rules recognize the principle of separability of the arbitration clause - which means
Labor Code of the Philippines, as amended and its Implementing Rules and Regulations; that said clause shall be treated as an agreement independent of the other terms of the contract of
7.2. Civil status of persons; which it forms part. A decision that the contract is null and void shall not entail ipso jure the invalidity
7.3. Validity of a marriage; of the arbitration clause.
7.4. Any ground for legal separation;
7.5. Jurisdiction of courts; 6. Judicial restraint. In resolving the petition, the court must exercise judicial restraint in accordance with
7.6. Future legitime; the policy set forth in Rule 2.4 deferring to the competence or jurisdiction of the arbitral tribunal to
7.7. Criminal liability; rule on its competence of jurisdiction.
7.8. And those which by law cannot be compromised. (Sec. 6, R.A. No. 9285)
IV. ARBITRATION AGREEMENT.
8. SOME ADR PROVIDERS.
8.1. Some Institutional Providers: 1. FORMS:
8.1.1. CIAC (Construction Industry Arbitration Commission) 1.1. Arbitral Agreement or Clause;
8.1.2. PDRCI (Philippine Dispute Resolution, Inc.) 1.2. Submission Agreement;
8.1.3. ICC (International Chamber of Commerce)
8.1.4. SIAC (Singapore International Arbitration Center) 2. ARBITRAL AGREEMENT OR CLAUSE DISTINGUISHED FROM SUBMISSION.
8.1.5. HKIAC (Hong Kong International Arbitration Center) 2.1. Arbitral Agreement or Clause (Pre-causal consent) – the parties to any contract
8.2. Ad Hoc: agree in such contract to settle by arbitration a controversy thereafter arising between them.
8.2.1. Parties have not identified their procedural rules that shall govern their 2.2. Submission Agreement (Present causal consent) – no pre-existing arbitration
arbitral proceedings; agreement, but parties subsequently agree to submit to arbitration any controversy existing
8.2.2. Parties determine their own procedural rules as they undergo between them at the time of the submission and which may be the subject of an action.
arbitration;
V. ARBITRATION LAW (under R.A. No. 876).
III. POLICIES (Rule 2.2. Special ADR Rules; Note: KOPPEL CASE). 1. PRELLIMINARY PROCEDURE:
1.1. IN CASE OF ARBITRAL AGREEMENT/CLAUSE:
1. Arbitration agreement is the law between the parties and that they are expected to abide by it in good 1.1.1. Demand/request for arbitration; (Not applicable in controversies
faith covered by CIAC)
1.1.2. Statement of the nature of the controversy;
2. Courts shall not refuse to refer parties to arbitration for reasons including, but not limited to, the 1.1.3. Amount involved, if applicable;
following: 1.1.4. Relief sought;
 1.1.5. Attached true copy of the contract providing the arbitration; 4.2. No party shall select as an arbitrator any person to act as his champion or to advocate his
1.1.6. Demand shall be served in person or registered mail; cause.
1.1.7. Should the contract provides for the appointment of single arbitrator:
a. Indicate the time and date within which the parties shall agree upon such
arbitrator; 4.3. If, after appointment but before or during hearing, a person appointed to serve as
1.1.8. Should the contract provides for the appointment of three arbitrators: an arbitrator shall discover any circumstances likely to create a presumption of bias, or
a. Indicate the name of the arbitrator appointed; which he believes might disqualify him as an impartial arbitrator, the arbitrator shall
b. Require the other party within 15 days from notice/receipt to make an advice in immediately disclose such information to the parties. Thereafter the parties may agree in
writing the name of the person appointed by the second party; writing:
1.2. The 2 arbitrators appointed must agree on the third arbitrator within 10 days from the date of
4.3.1. to waive the presumptive disqualifying circumstances; or
such notice;
1.3. In case of default by the other party in answering the demand, aggrieved party may file, 4.3.2. to declare the office of such arbitrator vacant. Any such
through a verified petition, with the RTC having jurisdiction of the parties: vacancy shall be filled in the same manner as the original appointment
1.3.1. A copy of the demand/request for arbitration; was made. (Sec. 10, R.A. No. 876)
1.3.2. A statement that an original demand was sent and which set forth:
a. The nature of the action; 5. CHALLENGE OF ARBITRATOR(S).
b. Amount involved, if applicable;
c. Relief sought; 5.1. The arbitrators may be challenged only for the reasons mentioned in Sec 10, R.A. No. 876
d. Attached true copy of the contract providing for arbitration; which may have arisen after the arbitration agreement or were unknown at the time of
arbitration.
2. SAME PROCEDURE TO BE FOLLOWED IN SUBMISSION AGREEMENTS. The challenge shall be made before them.

3. HEARING BY COURT IN CASE OF FAILURE, NEGLECT OR REFUSAL TO ARBITRATE. If they do not yield to the challenge, the challenging party may renew the challenge before
3.1. File an application by way of a verified petition with the RTC for an order directing that such the RTC of the province or city in which the challenged arbitrator, or, any of them, if there
arbitration to proceed in the manner provided in the agreement; be more than one, resides. While the challenging incident is discussed before the court, the
3.2. Notice to the defaulting party; hearing on arbitration shall be suspended, and it shall be continued immediately after the
3.3. RTC shall summarily hear the parties: court has delivered an order on the challenging incident. (Sec.11, R.A. No. 876)
3.3.1. If the RTC is satisfied that the making of the agreement or such failure
to comply therewith is not in issue, it shall issue an order directing the parties to
proceed to proceed to arbitration in accordance with the terms of the agreement; 5.2. GROUNDS FOR CHALLENGE (Under the Model Law)
3.3.2. If the making of the agreement or default be in issue, the RTC shall 5.2.1. When the person is approached in connection with a possible
proceed to summarily hear such issue;
appointment as an arbitrator, he shall disclose any circumstances likely to give rise
3.4. Should it be found that there is no agreement or no default, the proceeding shall be to justifiable doubts as to his impartiality or independence. An arbitrator from the
dismissed;
time of his appointment and throughout the arbitral proceedings, shall without
3.5. Should it be found that there was written provision for arbitration was made or there is a delay disclose any such circumstances to the parties unless they have already been
default in proceeding thereunder, the RTC shall direct the parties to proceed with the
informed of them by him.
arbitration in accordance with the terms thereof;
5.2.2. An arbitrator may be challenged only if circumstances exist that give rise
4. ARBITRATOR(S). to justifiable doubts as to his impartiality or independence, or if he does not
4.1. QUALIFICATIONS: possess qualifications agreed to by the parties. A party may challenge an arbitrator
4.1.1. Must be of legal age; appointed by him, or in whose appointment he has participated, only for reasons
4.1.2. In full-enjoyment of his civil rights; of which he becomes aware after the appointment has been made.
4.1.3. Knows how to read and write;
4.1.4. Not related by blood or marriage within the sixth degree to either party
to the controversy; 5.3. CHALLENGE PROCEDURE. (Under the Model Law)
4.1.5. No financial, fiduciary or other interest in the controversy or cause to be
5.3.1. The parties are free to agree on a procedure for challenging an
decided or in the result of the proceeding, or
arbitrator, subject to the provisions of paragraph (3) of thia article.
4.1.6. Has any personal bias, which might prejudice the right of any party to a
fair and impartial award; 5.3.2. Failing such agreement, a party who intends to challenge an arbitrator
shall, within 15 days after becoming aware of the constitution of the arbitral
tribunal or after becoming aware of any circumstance referred to in article 12.2.,
send a written statement of the reasons for the challenge to the arbitral tribunal.
 Unless the challenged arbitrator withdraws from his office or the other party 3. In cases covered by the Special ADR Rules no summons is issued, a court acquires authority to act on
agrees to the challenge, the arbitral tribunal shall decide on the challenge. the petition or motion upon proof of jurisdictional facts, i.e., that the respondent was furnished a copy
of the verified petition and the notice of hearing. (Rule 1.9.)
5.3.3. If a challenge under any procedure agreed upon by the parties or the
3.1. Prior service is jurisdictional and material to satisfy the requirement of due process.
procedure of paragraph (2) of this article is not successful, the challenging party
may request, within 30 day after having received notice of the decision rejecting
4. SERVICE AND FILING OF PETITIONS IN SUMMARY PROCEEDINGS.
the challenge, the court or other authority specified in article 6 to decide on the
challenge, which decision shall be subject to no appeal; while such a request is
4.1. Before filing in court, service of the verified petition coupled by a notice of hearing unto the
pending, the arbitral tribunal, including the challenge arbitrator, may continue the
respondent through:
arbitral proceedings and make an award.
4.1.1. Personal service, proven by an affidavit of the server;
4.1.2. Registered mail, shown by the signed courier proof of delivery (postal
registry return cards);
6. VACATING AN ARBITRAL AWARD.
4.1.3. Private courier, proven by an affidavit executed by the responsible
6.1. GROUNDS: officer of the private courier service showing the transmittal; or by the signed
courier proof of delivery.
6.1.1. The award was procured by corruption, fraud, or other undue means; or
4.1.4. In case of refusal or failure, by an affidavit of the server stating the facts
6.1.2. That there was evident partiality or corruption in the arbitrators or any and circumstances of refusal or failure to receive. (Rule 1.9.)
of them; or
4.2. VERIFICATION AND SUBMISSIONS.
6.1.3. That the arbitrators were guilty of misconduct in refusing to postpone 4.2.1. Need to be Verified:
the hearing upon sufficient cause shown, or in refusing to hear evidence pertinent a. Any pleading, motion, opposition, comment, defense or claim.
and material to the controversy; b. Attached legal brief of counsel which state the pertinent facts, legal arguments in
6.1.4. That one or more of the arbitrators was disqualified to act as such under support of a party’s position in the case, applicable laws and jurisprudence.
section 9 of R.A. No. 876, and willfully refrained from disclosing such c. All initiatory pleadings must contain a certification against forum shopping.
disqualifications or of any other misbehavior by which the rights of any party have
been materially prejudiced; or 4.3. PROHIBITED SUBMISSIONS:
4.3.1. Motion to dismiss
6.1.5. That the arbitrators exceeded their powers, or so imperfectly executed 4.3.2. Motion for bill of particulars
them, that a mutual, final and definite award upon the subject matter submitted to 4.3.3. Motion for new trial or for reopening of trial
them was not made. (Sec. 24, R.A. No. 876) 4.3.4. Petition for relief from judgment
4.3.5. Motion for extension, except in cases where an ex-parte temporary
order of protection has been issued
7. MODIFYING OR CORRECTING AN ARBITRAL AWARD. 4.3.6. Rejoinder to reply
7.1. GROUNDS: 4.3.7. Motion to declare a party in default; and
7.1.1. Where there was an evident miscalculation of figures, or an evident 4.3.8. Any other pleading specifically disallowed under any provision of the
mistake in the description of any person, thing or property referred to in the award; Special ADR Rules.
or
7.1.2. Where the arbitrators have awarded upon a matter not submitted to 5. SERVICE AND FILING OF PLEADINGS, MOTIONS AND OTHER PAPERS IN NON-SUMMARY (Regular)
them, not affecting the merits of the decision upon the matter submitted; or PROCEEDINGS.
7.1.3. Where the award is imperfect in a matter of form not affecting the 5.1. Initiatory pleadings filed with the court;
merits of the controversy, and if it had been a commissioner's report, the defect 5.2. Court shall cause the service of the initiatory pleading/petition upon the respondent through:
could have been amended or disregarded by the court. 5.2.1. Personal service;
5.2.2. Registered postal mail;
The order may modify and correct the award so as to effect the intent thereof and 5.2.3. Private courier;
promote justice between the parties. (Sec. 25, R.A. 876) 5.2.4. Electronic mail, as agreed upon by parties and approved by the court.

5.3. All subsequent pleadings must be priorly served and then filed with the court.
VI. SPECIAL RULES OF COURT ON ALTERNATIVE DISPUTE RESOLUTION (A.M. No. 07-11-08-SC)
6. JUDICIAL RELIEF ON THE ISSUE OF EXISTENCE, VALIDITY, OR ENFORCEABILITY OF THE ARBITRATION
1. All proceedings under the Special Rules on ADR are special proceedings. AGREEMENT (PRELIMINARY QUESTIONS).

2. Proceedings are conducted summarily in certain cases. 6.1. JUDICIAL BEFORE THE COMENCEMENT OF ARBITRATION.
 6.1.1. Service of verified petition upon the respondent.
6.1.2. Filing of verified petition with certification against forum shopping 7. MULTIPLE ACTIONS AND PARTIES.
before the RTC. 7.1. Court shall not decline to refer some or all of the parties to arbitration for any of the following
6.1.3. Respondent has 15 days from notice to take a comment/ opposition. reasons:
6.1.4. RTC must exercise judicial restraint conformably with the policy on 7.1.1. Not all of the disputes subject of the civil action may be referred to
competence-competence principle. arbitration;
6.1.5. Arbitral proceedings may nevertheless commenced and render an 7.1.2. Not all of the parties to the civil action are bound by the arbitration
arbitral award despite pendency of judicial relief. agreement and referral to arbitration would result in multiplicity of suits;
6.1.6. RTC prima facie determination upholding the existence, validity or 7.1.3. The issues raised in the civil action could be speedily and efficiently
validity of arbitration agreement is not subject to motion for reconsideration, resolved in its entirety by the court rather than in arbitration;
appeal or certiorari. 7.1.4. Referral to arbitration does not appear to be the most prudent action;
a. But same issue(s) may still be raised before the arbitral tribunal; or
b. Or in a latter action to vacate or set aside the arbitral award. 7.1.5. The stay of the action would prejudice the rights of the parties to the
civil action who are not bound by the arbitration agreement.
6.2. JUDICIAL RELIEF AFTER THE COMENCEMENT OF ARBITRATION. 7.2. The court may, however, issue an order directing the inclusion in arbitration of those parties who
are not bound by the arbitration agreement but who agree to such inclusion provided those
6.2.1. Within 30 days from notice, file a verified petition (with certification originally bound by it do not object to their inclusion. (Rule 4.7.)
against forum shopping) assailing the ruling of the arbitral tribunal on the
preliminary question upholding or declining its jurisdiction. 8. INTERIM MEASURES OF PROTECTION.
6.2.2. Respondent has 15 days from notice to take a comment/opposition.
6.2.3. Arbitration proceedings shall continue and render its award thereon. 8.1. When to file petition before the RTC:
6.2.4. No court may enjoin the arbitration proceedings pending the petition in 8.1.1. Before arbitration is commenced;
court. 8.1.2. After arbitration is commenced, but before the constitution of the
arbitral tribunal;
6.3. RELIEFS FROM A COURT ACTION: 8.1.3. After the constitution of the arbitral tribunal and at any time during
6.3.1. Motion for reconsideration; arbitral proceedings but, at this stage, only to the extent that the arbitral tribunal
6.3.2. But not subject to appeal; has no power to act or is unable to act effectively.
6.3.3. A ruling by the court affirming the jurisdiction of the arbitral tribunal
shall not be subject to petition for certiorari (under Rule 65). 8.2. GROUNDS FOR ITS ALLOWANCE (NON-EXCLUSIVE):
6.3.4. A ruling by the court denying the jurisdiction of the arbitral tribunal 8.2.1. Need to prevent irreparable loss or injury;
may be the subject of petition for certiorari (under Rule 65). 8.2.2. Need to provide security for the performance of any obligation;
8.2.3. Need to produce or preserve evidence; or
6.4. ABITRAL TRIBUNAL DEFERING TO RESOLVE THE ISSUE OF ITS JURISDICTION. 8.2.4. Need to compel any other appropriate act or omission.
6.4.1. A ruling by the arbitral tribunal deferring resolution on the issue of its
jurisdiction until final award is not subject to a motion for reconsideration, appeal 8.3. TYPES OF INTERIM MEASURES THAT MAY BE GRANTED:
or a petition for certiorari. 8.3.1. Preliminary injunction;
8.3.2. Preliminary attachment or garnishment;
6.5. WHEN TO MAKE REQUEST FOR ARBITRATION BEFORE THE RTC. 8.3.3. Appointment of a receiver;
6.5.1. FORM 8.3.4. Detention, preservation, delivery or inspection of property; or,
a. Motion 8.3.5. Assistance in the enforcement of an interim measure of protection
b. With notice of hearing granted by the arbitral tribunal, which the latter cannot enforce effectively.
6.5.2. Should there be an existing arbitration agreement:
a. Before pre-trial, by either party; 8.4. INSTANCES WHERE PRIOR NOTICE IS DISPENSED:
b. After pre-trial, by way of agreement by the parties; 8.4.1. Urgent need to either:
6.5.3. In case of submission agreement:
a. At any stage of the proceedings. a. preserve property;

6.6. An order referring the dispute to arbitration shall be immediately executory and shall not be
b. prevent the respondent from disposing of, or concealing, the property;

subject to a motion for reconsideration, appeal or petition for certiorari. c. prevent the relief prayed for from becoming illusory because of prior notice;
6.7. An order denying the request to refer the dispute to arbitration shall not be subject to an appeal
(because it is interlocutory), but may be the subject of a motion for reconsideration and/or a 9. APPOINTMENT OF ARBITRATOR.
petition for certiorari. 9.1. Relief against court action:
 9.1.1. If the court appoints an arbitrator, the order appointing an arbitrator e. any persons hired or engaged in connection with the mediation as secretary,
shall be immediately executory and shall not be the subject of a motion for stenographer, clerk or assistant; and
reconsideration, appeal or certiorari. f. any other person who obtains or possesses confidential information by reason of
9.1.2. An order of the court denying the petition for appointment of an his/her profession.
arbitrator may be the subject of a motion for reconsideration, appeal or certiorari. g. a mediator who is found to have failed to act impartially.
(Rule 6.9.) h. a mediator may not be called to testify to provide information gathered in
mediation. (Sec. 9)
10. ASSISTANCE IN TAKING EVIDENCE;
10.1. Any party to an arbitration, whether domestic or foreign, may request the court to provide 12. WAIVER OF CONFIDENTIALITY.
assistance in taking evidence. (Rule 9.1.) 12.1. may be waived in a record, or orally during a proceeding by the mediator and the mediation
parties;
10.2. TYPE OF ASSISTANCE: 12.2. may likewise be waived by a non-party participant if the information is provided by such non-party
10.2.1. To comply with a subpoena ad testificandum and/or subpoena duces participant;
tecum;
10.2.2. To appear as a witness before an officer for the taking of his deposition 13. EXCEPTIONS TO THE PRIVELEGE.
upon oral examination or by written interrogatories;
13.1. There is no privilege against disclosure under Section 9 if mediation communication is:
10.2.3. To allow the physical examination of the condition of persons, or the
13.1.1. in an agreement evidenced by a record authenticated by all parties to
inspection of things or premises and, when appropriate, to allow the recording
the agreement;
and/or documentation of condition of persons, things or premises (i.e.,
photographs, video and other means of recording/documentation); 13.1.2. available to the public or that is made during a session of a mediation
10.2.4. To allow the examination and copying of documents; and which is open, or is required by law to be open, to the public;
10.2.5. To perform any similar acts. (Rule 9.5) 13.1.3. a threat or statement of a plan to inflict bodily injury or commit a crime
of violence;
10.3. If the evidence sought is not privileged, and is material and relevant, the court shall grant the 13.1.4. internationally used to plan a crime, attempt to commit, or commit a
assistance in taking evidence requested and shall order petitioner to pay costs attendant to crime, or conceal an ongoing crime or criminal activity;
such assistance. (Rule 9.8) 13.1.5. sought or offered to prove or disprove abuse, neglect, abandonment, or
exploitation in a proceeding in which a public agency is protecting the interest of an
10.4. The order granting assistance in taking evidence shall be immediately executory and not individual protected by law; but this exception does not apply where a child
subject to reconsideration or appeal. (Rule 9.9) protection matter is referred to mediation by a court or a public agency
participates in the child protection mediation;
10.5. If the court declines to grant assistance in taking evidence, the petitioner may file a motion for 13.1.6. sought or offered to prove or disprove a claim or complaint of
reconsideration or appeal. (Ibid.) professional misconduct or malpractice filed against mediator in a proceeding; or
13.1.7. sought or offered to prove or disprove a claim of complaint of
11. CONFIDENTIALITY/PROTECTIVE ORDERS.
professional misconduct of malpractice filed against a party, nonparty participant,
11.1. CONFIDENTIAL INFORMATION OBTAINED THROUGH MEDIATION:
or representative of a party based on conduct occurring during a mediation.
11.1.1. Information obtained through mediation shall be privileged and
confidential.
11.1.2. A party, a mediator, or a non-party participant may refuse to disclose 13.2. There is no privilege under Section 9 if a court or administrative agency, finds, after a hearing in
and may prevent any other person from disclosing a mediation communication. camera, that the party seeking discovery of the proponent of the evidence has shown:
11.1.3. Confidential Information shall not be subject to discovery and shall be 13.2.1. that the evidence is not otherwise available, that there is a need for the
inadmissible in any adversarial proceeding, whether judicial or quasi-judicial. evidence that substantially outweighs the interest in protecting confidentiality, and
However, evidence or information that is otherwise admissible or subject to the mediation communication is sought or offered in:
discovery does not become inadmissible or protected from discovery solely by a. a court proceeding involving a crime or felony; or
reason of its use in a mediation. b. a proceeding to prove a claim or defense that under the law is sufficient to
11.1.4. In such an adversarial proceeding, the following persons involved or reform or avoid a liability on a contract arising out of the mediation.
previously involved in a mediation may not be compelled to disclose confidential
information obtained during mediation:
13.3. A mediator may not be compelled to provide evidence of a mediation communication or
a. the parties to the dispute;
testify in such proceeding.
b. the mediator or mediators;
c. the counsel for the parties;
d. the non-party participants; 13.4. If a mediation communication is not privileged under an exception in subsection (a) or (b),
only the portion of the communication necessary for the application of the exception for
 nondisclosure may be admitted. The admission of particular evidence for the limited purpose
of an exception does not render that evidence, or any other mediation communication,
admissible for any other purpose. (Sec. 11)
14. A party, counsel or witness who disclosed or who was compelled to disclose information relative to the
subject of ADR under circumstances that would create a reasonable expectation, on behalf of the
source, that the information shall be kept confidential has the right to prevent such information from
being further disclosed without the express written consent of the source or the party who made the
disclosure. (Rule 10.1.)
15. In resolving the petition or motion, the courts shall be guided by the following principles applicable to
all ADR proceedings:
15.1. Confidential information shall not be subject to discovery and shall be inadmissible in any
adversarial proceeding, whether judicial or quasi-judicial.
15.2. However, evidence or information that is otherwise admissible or subject to discovery does not
become inadmissible or protected from discovery solely by reason of its use therein.
15.2.1. For mediation proceedings, the court shall be further guided by the
following principles:
a. Information obtained through mediation shall be privileged and confidential.
b. A party, a mediator, or a nonparty participant may refuse to disclose and may
prevent any other person from disclosing a mediation communication.
c. In such an adversarial proceeding, the following persons involved or previously
involved in a mediation may not be compelled to disclose confidential
information obtained during the mediation:
(1) parties to the dispute;
(2) mediator or mediators;
(3) counsel for the parties;
(4) nonparty participants;
(5) any persons hired or engaged in connection with the mediation as secretary,
stenographer; clerk or assistant; and
(6) any other person who obtains or possesses confidential information by reason
of his/ her profession.
d. The protection of the ADR Laws shall continue to apply even if a mediator is
found to have failed to act impartially.
e. A mediator may not be called to testify to provide information gathered in
mediation. A mediator who is wrongfully subpoenaed shall be reimbursed the
full cost of his attorney fees and related expenses. (Rule 10.8.)
16. CONFIRMATION, CORRECTION OR VACATION OF AWARD IN DOMESTIC ARBITRATION.
16.1. PERIODS:
16.1.1. Confirmation. - At any time after the lapse of thirty (30) days from
receipt by the petitioner of the arbitral award, he may petition the court to confirm
that award.
16.1.2. Correction/Modification. - Not later than thirty (30) days from receipt of
the arbitral award, a party may petition the court to correct/modify that award.
16.1.3. Vacation. - Not later than thirty (30) days from receipt of the arbitral
award, a party may petition the court to vacate that award.
16.1.4. A petition to vacate the arbitral award may be filed, in opposition to a
petition to confirm the arbitral award, not later than thirty (30) days from receipt of
the award by the petitioner. A petition to vacate the arbitral award filed beyond the
reglementary period shall be dismissed.
16.1.5. A petition to confirm the arbitral award may be filed, in opposition to a
petition to vacate the arbitral award, at any time after the petition to vacate such
arbitral award is filed. The dismissal of the petition to vacate the arbitral award for
having been filed beyond the reglementary period shall not result in the dismissal
of the petition for the confirmation of such arbitral award.
16.1.6. The filing of a petition to confirm an arbitral award shall not authorize
the filing of a belated petition to vacate or set aside such award in opposition
thereto.
16.1.7. A petition to correct an arbitral award may be included as part of a
petition to confirm the arbitral award or as a petition to confirm that award. (Rule
11.2.)
16.2. GROUNDS TO VACATE AN ARBITRAL AWARD.
16.2.1. Arbitral award was procured through corruption, fraud or other undue
means;
16.2.2. There was evident partiality or corruption in the arbitral tribunal or any
of its members;
16.2.3. The arbitral tribunal was guilty of misconduct or any form of
misbehavior that has materially prejudiced the rights of any party such as refusing
to postpone a hearing upon sufficient cause shown or to hear evidence pertinent
and material to the controversy;
16.2.4. One or more of the arbitrators was disqualified to act as such under the
law and willfully refrained from disclosing such disqualification; or
16.2.5. The arbitral tribunal exceeded its powers, or so imperfectly executed
them, such that a complete, final and definite award upon the subject matter
submitted to them was not made.
16.2.6. The award may also be vacated on any or all of the following grounds:
a. The arbitration agreement did not exist, or is invalid for any ground for the
revocation of a contract or is otherwise unenforceable; or
b. A party to arbitration is a minor or a person judicially declared to be
incompetent. (Rule 11.4)
16.3. GROUNDS TO CORRECT/MODIFY AN ARBITRAL AWARD.
16.3.1. Where there was an evident miscalculation of figures or an evident
mistake in the description of any person, thing or property referred to in the award;
16.3.2. Where the arbitrators have awarded upon a matter not submitted to
them, not affecting the merits of the decision upon the matter submitted;
16.3.3. Where the arbitrators have omitted to resolve an issue submitted to
them for resolution; or
16.3.4. Where the award is imperfect in a matter of form not affecting the
merits of the controversy, and if it had been a commissioner’s report, the defect
could have been amended or disregarded by the Court. (Rule 11.4)
16.4. In a petition to vacate an award or in petition to vacate an award in opposition to a petition to
confirm the award, the petitioner may simultaneously apply with the Court to refer the case back
to the same arbitral tribunal for the purpose of making a new or revised award or to direct a new
hearing, or in the appropriate case, order the new hearing before a new arbitral tribunal, the
members of which shall be chosen in the manner provided in the arbitration agreement or
submission, or the law. (Rule 11.9.)
17. RECOGNITION AND ENFORCEMENT OR SETTING ASIDE OF AN AWARD IN INTERNATIONAL
COMMERCIAL ARBITRATION.
 17.1. Who may petition for recognition and enforcement or setting aside?
17.1.1. Any party to an international commercial arbitration in the Philippines.
17.2. PERIOD TO FILE PETITION FOR RECOGNITION AND ENFORCEMENT.
17.2.1. Any time from receipt of award.
17.2.2. If, however, a timely petition to set aside an arbitral award is filed, the
opposing party must file therein and in opposition thereto the petition for
recognition and enforcement of the same award within the period for filing an
opposition. (Rule 12.2.)
17.3. PERIOD TO FILE PETITION TO SET ASIDE AN ARBITRAL AWARD.
17.3.1. Within three (3) months from the time the petitioner receives a copy
thereof.
17.3.2. If a timely request is made with the arbitral tribunal for correction,
interpretation or additional award, the three (3) month period shall be counted
from the time the petitioner receives the resolution by the arbitral tribunal of that
request. (Ibid.)
17.4. GROUNDS TO SET ASIDE OR RESIST ENFORCEMENT OF AN ARBITRAL AWARD.
17.4.1. A party to the arbitration agreement was under some incapacity, or the
said agreement is not valid under the law to which the parties have subjected it or,
failing any indication thereof, under Philippine law; or
17.4.2. The party making the application to set aside or resist enforcement was
not given proper notice of the appointment of an arbitrator or of the arbitral
proceedings or was otherwise unable to present his case; or
17.4.3. The award deals with a dispute not contemplated by or not falling
within the terms of the submission to arbitration, or contains decisions on matters
beyond the scope of the submission to arbitration; provided that, if the decisions
on matters submitted to arbitration can be separated from those not so submitted,
only that part of the award which contains decisions on matters not submitted to
arbitration may be set aside or only that part of the award which contains decisions
on matters submitted to arbitration may be enforced; or
17.4.4. The composition of the arbitral tribunal or the arbitral procedure was
not in accordance with the agreement of the parties, unless such agreement was in
conflict with a provision of Philippine law from which the parties cannot derogate,
or, failing such agreement, was not in accordance with Philippine law;
17.4.5. The court finds that:
a. The subject-matter of the dispute is not capable of settlement by arbitration
under the law of the Philippines; or
b. The recognition or enforcement of the award would be contrary to public policy.
(Rule 12.4.)
18. RECOGNITION AND ENFORCEMENT OF A FOREIGN ARBITRAL AWARD.
18.1. WHO MAY FILE THE PETITION.
18.1.1. Any party to a foreign arbitration may petition the court to recognize
and enforce a foreign arbitral award. (Rule 13.1.)
18.2. PERIOD.
18.2.1. Any time after receipt of a foreign arbitral award before the Regional
Trial Court. (Rule 13.2.)
18.3. VENUE AT THE OPTION OF THE PETITIONER.
18.3.1. Where the assets to be attached or levied upon is located;
18.3.2. Where the act to be enjoined is being performed;
18.3.3. In the principal place of business in the Philippines of any of the parties;
18.3.4. If any of the parties is an individual, where any of those individuals
resides, or
18.3.5. In the National Capital Judicial Region. (Rule 13.3.)
19. GOVERNING LAW AND GROUNDS TO REFUSE RECOGNITION AND ENFORCEMENT.
19.1. Recognition and enforcement of a foreign arbitral award shall be governed by the 1958 New York
Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the "New York
Convention") and the Special ADR Rules.
19.2. The court may, upon grounds of comity and reciprocity, recognize and enforce a foreign arbitral
award made in a country that is not a signatory to the New York Convention as if it were a
Convention Award. (Rule 13.4.)
20. GROUNDS FOR REFUSAL TO RECOGNIZE AND ENFORCE FOREIGN ARBITRAL AWARD.
20.1. A party to the arbitration agreement was under some incapacity; or the said agreement is not valid
under the law to which the parties have subjected it or, failing any indication thereof, under the
law of the country where the award was made; or
20.2. The party making the application was not given proper notice of the appointment of an arbitrator
or of the arbitral proceedings or was otherwise unable to present his case; or
20.3. The award deals with a dispute not contemplated by or not falling within the terms of the
submission to arbitration, or contains decisions on matters beyond the scope of the submission to
arbitration; provided that, if the decisions on matters submitted to arbitration can be separated
from those not so submitted, only that part of the award which contains decisions on matters not
submitted to arbitration may be set aside; or
20.4. The composition of the arbitral tribunal or the arbitral procedure was not in accordance with the
agreement of the parties or, failing such agreement, was not in accordance with the law of the
country where arbitration took place; or
20.5. The award has not yet become binding on the parties or has been set aside or suspended by a
court of the country in which that award was made; or
20.6. The court finds that:
20.6.1. The subject-matter of the dispute is not capable of settlement or
resolution by arbitration under Philippine law;
20.6.2. The recognition or enforcement of the award would be contrary to
public policy.
21. DEPOSIT AND ENFORCEMENT OF MEDIATED SETTLEMENT AGREEMENTS.
21.1. WHO DEPOSITS THE MEDIATED SETTLEMENT AGREEMENT?
21.1.1. Any party to a mediation that is not court-annexed may deposit with the
court the written settlement agreement, which resulted from that mediation. (Rule
15.1.1)
21.2. WHEN IS THE MEDIATED SETTLEMENT AGREEMENT DEPOSITED?
21.2.1. At any time after an agreement is reached, the written settlement
agreement may be deposited. (15.2.)
21.3. VENUE.
 21.3.1. Written settlement agreement may be jointly deposited by the parties 22.2. No second motion for reconsideration is allowed.
or by one party with prior notice to the other party/ies with the Clerk of Court of
the RTC: 23. APPEAL AND CERTIORARI.
a. Where the principal place of business in the Philippines of any of the parties is 23.1. No appeal or certiorari on the merits of an arbitral award - An agreement to refer a dispute to
located; arbitration shall mean that the arbitral award shall be final and binding. Consequently, a party to an
b. If any of the parties is an individual, where any of those individuals resides; or arbitration is precluded from filing an appeal or a petition for certiorari questioning the merits of an
c. In the National Capital Judicial Region. (Rule 15.3.) arbitral award. (Rule 19.7.)

21.4. ENFORCEMENT OF MEDIATED SETTLEMENT AGREEMENT. 24. APPEAL FROM RTC TO COURT OF APPEALS.
21.4.1. Any of the parties to a mediated settlement agreement, which was 24.1. MODE OF APPEAL – Petition for review on certiorari under Rule 43
deposited with the Clerk of Court of the RTC, may, upon breach thereof, file a
verified petition with the same court to enforce said agreement. (Rule 15.5.) 24.2. PERIOD – 15 days from notice of the final order, decision, or motion for reconsideration.

22. MOTION FOR RECONSIDERATION, APPEAL AND CERTIORARI. 24.3. GROUNDS:

22.1. MOTION FOR RECONSIDERARION WITHIN 15 DAYS BEFORE THE RTC. 24.3.1. Granting or denying an interim measure of protection;
22.1.1. WHEN ALLOWED: 24.3.2. Denying a petition for appointment of an arbitrator;
a. That the arbitration agreement is inexistent, invalid or unenforceable pursuant to 24.3.3. Denying a petition for assistance in taking evidence;
Rule 3.10 (B); 24.3.4. Enjoining or refusing to enjoin a person from divulging confidential
b. Upholding or reversing the arbitral tribunal’s jurisdiction pursuant to Rule 3.19; information;
c. Denying a request to refer the parties to arbitration; 24.3.5. Confirming, vacating or correcting/modifying a domestic arbitral award;
d. Granting or denying a party an interim measure of protection; 24.3.6. Setting aside an international commercial arbitration award;
e. Denying a petition for the appointment of an arbitrator; 24.3.7. Dismissing the petition to set aside an international commercial
f. Refusing to grant assistance in taking evidence; arbitration award even if the court does not decide to recognize or enforce such
g. Enjoining or refusing to enjoin a person from divulging confidential information; award;
h. Confirming, vacating or correcting a domestic arbitral award; 24.3.8. Recognizing and/or enforcing an international commercial arbitration
i. Suspending the proceedings to set aside an international commercial arbitral award;
award and referring the case back to the arbitral tribunal; 24.3.9. Dismissing a petition to enforce an international commercial arbitration
j. Setting aside an international commercial arbitral award; award;
k. Dismissing the petition to set aside an international commercial arbitral award, 24.3.10. Recognizing and/or enforcing a foreign arbitral award;
even if the court does not recognize and/or enforce the same; 24.3.11. Refusing recognition and/or enforcement of a foreign arbitral award;
l. Recognizing and/or enforcing, or dismissing a petition to recognize and/or 24.3.12. Granting or dismissing a petition to enforce a deposited mediated
enforce an international commercial arbitral award; settlement agreement; and
m. Declining a request for assistance in taking evidence; 24.3.13. Reversing the ruling of the arbitral tribunal upholding its jurisdiction.
n. Adjourning or deferring a ruling on a petition to set aside, recognize and/or (Rule 19.12.)
enforce an international commercial arbitral award;
o. Recognizing and/or enforcing a foreign arbitral award, or refusing recognition 25. SPECIAL CIVIL ACTION FOR CERTIORARI (Under RULE 65).
and/or enforcement of the same; and 25.1. WHERE – Court of Appeals
p. Granting or dismissing a petition to enforce a deposited mediated settlement 25.2. PERIOD - petition must be filed within 15 days from notice of the judgment, order or
agreement. (Rule 19.1.) resolution sought to be annulled or set aside.
25.3. No extension of time to file the petition shall be allowed. (Rule 19.28.)
22.1.2. WHEN NOT ALOWED.
a. No motion for reconsideration shall be allowed from the following rulings of the 25.4. GROUNDS:
RTC: 25.4.1. When the Regional Trial Court, in making a ruling under the Special ADR
(1) A prima facie determination upholding the existence, validity or Rules, has acted:
enforceability of an arbitration agreement pursuant to Rule 3.1 (A); a. without jurisdiction;
(2) An order referring the dispute to arbitration; b. in excess of its jurisdiction, or
(3) An order appointing an arbitrator; c. with grave abuse of discretion amounting to lack or excess of jurisdiction,
(4) Any ruling on the challenge to the appointment of an arbitrator; and there is no appeal or any plain, speedy, and adequate remedy in the ordinary
(5) Any order resolving the issue of the termination of the mandate of an course of law, a party may file a special civil action for certiorari to annul or set
arbitrator; and aside a ruling of the Regional Trial Court.
(6) An order granting assistance in taking evidence. (Ibid.)
25.5. A special civil action for certiorari may be filed against the following orders of the court.
 25.5.1. Holding that the arbitration agreement is inexistent, invalid or account thereof, shall constitute sufficient ground for the Supreme Court to dismiss
unenforceable; outright the petition. (Rule 19.36)
25.5.2. Reversing the arbitral tribunal’s preliminary determination upholding its
jurisdiction; VII. REMEDIES RE: DOMESTIC ARBITRAL AWARDS:
25.5.3. Denying the request to refer the dispute to arbitration; 1. CONSTRUCTION INDUSTRY ARBITRATION COMMISSION (CIAC [E.O. No. 1008])
25.5.4. Granting or refusing an interim relief; 1.1. Original and exclusive jurisdiction over:
25.5.5. Denying a petition for the appointment of an arbitrator; NB: ORIGINAL AND EXCLUSIVE JURISDICTION over:
25.5.6. Confirming, vacating or correcting a domestic arbitral award; -Disputes arising from, or connected with, contracts entered into by parties involved in construction in the
25.5.7. Suspending the proceedings to set aside an international commercial Philippines;
arbitral award and referring the case back to the arbitral tribunal; -Whether the dispute arises before or after the completion of the contract, or after the abandonement or breach
25.5.8. Allowing a party to enforce an international commercial arbitral award thereof;
pending appeal; -Involving government or private contracts;
25.5.9. Adjourning or deferring a ruling on whether to set aside, recognize and -The parties must agree to submit to voluntary arbitration (N.B. : No need to make a request pursuant to Sec. 1 Art 3
or enforce an international commercial arbitral award; of the New Rules of Procedure Governing Construction Arbitration for as long as there is an arbitration clause)
25.5.10. Allowing a party to enforce a foreign arbitral award pending appeal; and
25.5.11. Denying a petition for assistance in taking evidence. (Rule 19.26.) 1.1.1. disputes arising from, or connected with, contracts entered into by parties involved
in construction in the Philippines, whether the dispute arises:
26. APPEAL BY CERTIORARI TO THE SUPREME COURT. a.i.1.a. before or after the completion of the contract, or
26.1. WHERE – Supreme Court a.i.1.b. after the abandonment or breach thereof.
1.1.2. Violation of specifications for materials and workmanship;
26.2. PERIOD – 15 days from notice of judgment or final order or resolution appealed from, or of 1.1.3. Violation of the terms of agreement;
the denial of the petitioner's motion for new trial or reconsideration filed in due time after 1.1.4. Interpretation and/or application of contractual time and delays;
notice of the judgment. 1.1.5. Maintenance and defects;
1.1.6. Payment, default of employer or contractor and changes in contract cost.
26.3. MODE – Verified petition for review on certiorari (under Rule 45) 1.2. These disputes may involve government or private contracts.
26.3.1. Purely questions of law (Rule 19.37.) 1.3. For the Board to acquire jurisdiction, the parties to a dispute must agree to submit the same
26.3.2. Discretionary appeal to voluntary arbitration.
1.4. Jurisdiction of a court is determined by the law in force at the time of the commencement of
26.4. GROUNDS: the action.
The following, while neither controlling nor fully measuring the court's discretion, 1.5. Jurisdiction of CIAC is over the dispute, not the contract.
indicate the serious and compelling, and necessarily, restrictive nature of the grounds that 1.6. As long as the parties agree to submit to voluntary arbitration, regardless of what forum they
will warrant the exercise of the Supreme Court’s discretionary powers, when the Court of may choose (ad hoc or institutional), their agreement will fall within the jurisdiction of the
Appeals: CIAC, such that, even if they specifically choose another forum, the parties will not be
26.4.1. Failed to apply the applicable standard or test for judicial review precluded from electing to submit their dispute before the CIAC because the right has been
prescribed in these Special ADR Rules in arriving at its decision resulting in vested upon each party by law, i.e., E.O. No 1008. (NIA vs. Court of Appeals, 318 SCRA 255).
substantial prejudice to the aggrieved party; 1.7. When a contract contains a clause for the submission of a future controversy to arbitration, it
26.4.2. Erred in upholding a final order or decision despite the lack of is not necessary for the parties to enter into a submission agreement before the claimant may
jurisdiction of the court that rendered such final order or decision; invoke the jurisdiction of the CIAC.
26.4.3. Failed to apply any provision, principle, policy or rule contained in these
Special ADR Rules resulting in substantial prejudice to the aggrieved party; and 1.8. ARBITRATOR(S).
26.4.4. Committed an error so egregious and harmful to a party as to amount 1.8.1. A sole arbitrator:
to an undeniable excess of jurisdiction. 1..1.a. Parties, by agreement, nominate him from the list of arbitrators
accredited by the CIAC for appointment and confirmation.
The mere fact that the petitioner disagrees with the Court of Appeals’
determination of questions of fact, of law or both questions of fact and law, shall not 1..1.b. If the parties fail to agree as to the arbitrator, the CIAC taking into
warrant the exercise of the Supreme Court’s discretionary power. The error imputed to consideration the complexities and intricacies of the dispute/s, has the option to
the Court of Appeals must be grounded upon any of the above prescribed grounds for appoint a single arbitrator or an Arbitral Tribunal.
review or be closely analogous thereto. 1.8.2. Three arbitrators:
A mere general allegation that the Court of Appeals has committed serious and
substantial error or that it has acted with grave abuse of discretion resulting in a. If the CIAC decides to appoint an Arbitral Tribunal, each party may nominate
substantial prejudice to the petitioner without indicating with specificity the nature of one (1) arbitrator from the list of arbitrators accredited by the CIAC for
such error or abuse of discretion and the serious prejudice suffered by the petitioner on appointment and for confirmation.
 6. A foreign arbitral award, when confirmed by the RTC, shall be enforced as a foreign arbitral award and
b. The third arbitrator who is acceptable to both parties confirmed in writing not as a judgment of a foreign court.
shall be appointed by the CIAC and shall preside over the Tribunal. (Sec. 14)
1.9. As soon as a decision, order or award has become final and executory, the Arbitral Tribunal or 7. A foreign arbitral award, when confirmed by the RTC, shall be enforced in the same manner as final and
the single arbitrator with the occurrence of the CIAC shall motu propio, or on motion of any executory decisions of courts of law of the Philippines.
interested party, issue a writ of execution requiring any sheriff or other proper officer to
execute said decision, order or award. (Sec. 20) VIII. CASES.

2. COURT OF APPEALS. A. Tuna Processing, Inc., vs. Philippine Kingford, Inc., G.R. No. 185582, February 29, 2012.)
1.1. 15 days from receipt of notice of the assailed final arbitral award, petition for
review under Rule 43, either on questions of fact, of law, or of fact and law. Ground: errors of 1. A foreign corporation not licensed to do business in the Philippines, but which
arbitral award (judgment). (Sec. 18.2, CIAC Revised Rules of Procedure Governing Construction collects royalties from entities in the Philippines, have legal capacity to sue for the recognition
Arbitration) and enforcement of foreign arbitral award in accordance with the provisions of the Alternative
1.2. 60 days from receipt of notice of the assailed final arbitral award, special civil Dispute Resolution Act of 2004 [R.A. No. 9285] .
action for certiorari or petition for certiorari under Rule 65 (N.B.: Hierarchy of Courts must be
observed, as the remedy is an original and concurrent jurisdiction with the Supreme Court). 2. When a party enters into a contract containing a foreign arbitration clause and, in
Ground: errors of jurisdiction. fact, submits itself to arbitration, it becomes bound by the contract, by the arbitration and by
the result of arbitration, conceding thereby the capacity of the other party to enter into the
2. SUPREME COURT. contract, participate in the arbitration and cause the implementation of the result. (Ibid.)
2.1. 15 days from receipt of notice of the assailed judgment or denial of motion for
reconsideration by the Court of Appeals, ordinary appeal of petition for review on certiorari 3. The New York Convention shall govern the recognition and enforcement of arbitral
under Rule 45. Ground: errors of judgment. awards covered by the said Convention. (Sec. 42, R.A. No. 9285)
2.2. Concurrent jurisdiction with the Court of Appeals on Petition for Certiorari under
Rule 65. Hierarchy of courts must be observed. (Note: the petition for certiorari [writ of 4. Also, international commercial arbitration is governed by the Model Law on
certiorari] under Rule 65 is an original action). International Commercial Arbitration (the “Model Law”) adopted by the United Nations
Commission on International Trade Law (UNCITRAL) on 21 June 1985.
3. REMEDIES FROM INTERNATIONAL COMMERCIAL ARBITRATION.
3.1. Petition for confirmation, recognition and enforcement of foreign arbitral award before the 5. Exclusive grounds for opposition in the application for recognition and enforcement
Regional Trial Court; of arbitral award.
3.1.1. Attach the original or authenticated copy of the arbitral award or the arbitration Article V
agreement. 1. Recognition and enforcement of the award may be
3.1.2. The award or agreement must be made in any of the official languages (English), if refused, at the request of the party against whom it is invoked, only if
not the party shall supply a duly certified translation thereof into any of such that party furnishes to the competent authority where the recognition
languages. and enforcement is sought, proof that:
3.1.3. The country in which the foreign arbitration award was made must be a party to (a) The parties to the agreement referred to in article II were,
the New York Convention. under the law applicable to them, under some incapacity, or the said
3.1.4. When confirmed by RTC it shall be enforced in the same manner as final and agreement is not valid under the law to which the parties have
executory decisions of courts of law of the Philippines. subjected it or, failing any indication thereon, under the law of the
3.1.5. If the application for rejection or suspension of enforcement of an award has been country where the award was made; or
made, the RTC may, if it considers it proper, vacate its decision and may also, on the (b) The party against whom the award is invoked was not
application of the party claiming recognition or enforcement of the award, order given proper notice of the appointment of the arbitrator or of the
the party to provide appropriate security. arbitration proceedings or was otherwise unable to present his case; or
(c) The award deals with a difference not contemplated by or
4. The recognition and enforcement of foreign arbitral awards not covered by the New York Convention not falling within the terms of the submission to arbitration, or it
shall be done in accordance with procedural rules to be promulgated by the Supreme Court. The Court contains decisions on matters beyond the scope of the submission to
may, grounds of comity and reciprocity, recognize and enforce a nonconvention award as a convention arbitration, provided that, if the decisions on matters submitted to
award. (Sec. 43) arbitration can be separated from those not so submitted, that part of
the award which contains decisions on matters submitted to arbitration
5. A foreign arbitral award when confirmed by a court of a foreign country, shall be recognized and may be recognized and enforced; or
enforced as a foreign arbitral award and not a judgment of a foreign court. (Sec. 44) (d) The composition of the arbitral authority or the arbitral
procedure was not in accordance with the agreement of the parties, or,
 failing such agreement, was not in accordance with the law of the
country where the arbitration took place; or
(e) The award has not yet become binding on the parties, or
has been set aside or suspended by a competent authority of the
country in which, or under the law of which, that award was made.
2. Recognition and enforcement of an arbitral award may
also be refused if the competent authority in the country where
recognition and enforcement is sought finds that:
(a) The subject matter of the difference is not capable of
settlement by arbitration under the law of that country; or
(b) The recognition or enforcement of the award would be
contrary to the public policy of that country. (New York Convention)
B. National Irrigation Administration (NIA), vs. Honorable court of Appeals [4th Division],
Construction Industry Arbitration Commission, and Hydro Resources Contractors Corporation,
G.R. No. 129169. November 17, 1999.
1. The Construction Industry Arbitration Commission (CIAC) has original and exclusive
jurisdiction over disputes arising from, or connected with contracts entered into by parties
involved in construction in the Philippines, whether the dispute arises before or after the
completion of the contract, or after the abandonment or breach thereof.
2. Jurisdiction of a court is determined by the law in force at the time of the
commencement of the action.
3. The disputes may involve government or private contracts.
4. As long as the parties agree to submit to voluntary arbitration, regardless of what
forum they may choose, their agreement will fall within the jurisdiction of the CIAC, such that,
even if they specifically choose another forum, the parties will not be precluded from electing
to submit their dispute before the CIAC because this right has been vested upon each party by
law, i.e., E.O. No. 1008.
C. LM Power Engineering Corporation vs. Capitol Industrial Construction Groups, Inc., G.R. No.
141833, March 26, 2003.
8. Whenever there is an arbitration clause, there is no more need to file request with the
CIAC in order to vest it with jurisdiction to decide a construction dispute.
9. A prematurely filed complaint before the RTC without prior recourse to arbitration, the
proper procedure to enable the CIAC to decide on the dispute is to request the stay or
suspension of such an action, as provided under Sec. 7, R.A. No. 876 (the Arbitration
Law).
“Sec. 7. Stay of Civil Action. — If any suit or proceeding be
brought upon an issue arising out of an agreement providing for the
arbitration thereof, the court in which such suit or proceeding is
pending, upon being satisfied that the issue involved in such suit or
proceeding is referable to arbitration, shall stay the action or proceeding
until an arbitration has been had in accordance with the terms of the
agreement: Provided, That the applicant for the stay is not in default in
proceeding with such arbitration.”
D. JPlus Asia Development Corporation vs. Utility Assurance Corporation, G.R. No. 199650, June 26,
2013.
1. CIAC arbitral award is final and executory.
2. A CIAC arbitral award need not be confirmed by the RTC to be executory as provided
under E.O. No. 1008.
3. Domestic arbitral award, not falling under CIAC, shall be confirmed by way of a petition
for such an order within 30 days before the RTC. (Sec. 23 in relation to Sec. 28,
Arbitration Law [R.A. No. 876])
4. The judgment in the confirmation of a domestic arbitral award is docketed as if it were
rendered in an action. (Ibid.).
5. The judgment in the confirmation of a domestic arbitral award so entered have the
same force and effect in all respects, as, and be subject to all provisions relating to a
judgment in an action; and it may be enforced as if it had been rendered in the court in
which it is entered. (Ibid.)
E. Koppel, Inc. vs. Makati Rotary Club Foundation, Inc., G.R. No. 198075, September 4, 2013.
1. Doctrine of Separability – Under the doctrine of separability, an arbitration agreement
is considered as independent of the main contract. Being a separate contract in itself,
the arbitration agreement may thus be invoked regardless of the possible nullity or
invalidity of the main contract.
2. Even the very party who repudiates or assails the validity of such contract may invoke
the arbitration clause.
3. The operation of the arbitration clause is not at all defeated by the failure of the party
to file a formal "request" or application therefor. The filing of a "request" pursuant to
Section 24 of R.A. No. 9285 is not the sole means by which an arbitration clause may be
validly invoked in a pending suit.
Section 24 of R.A. No. 9285 reads:
Sec. 24. Referral to Arbitration. — A court before which an
action is brought in a matter which is the subject matter of an
arbitration agreement shall, if at least one party so requests not later
that 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.
The "request" referred to in the above provision is, in turn, implemented by Rules
4.1 to 4.3 of A.M. No. 07-11-08-SC or the Special Rules of Court on Alternative Dispute
Resolution (Special ADR Rules):
RULE 4: REFERRAL TO ADR
Rule 4.1.Who makes the request. — A party to a pending
action filed in violation of the arbitration agreement, whether contained
in an arbitration clause or in a submission agreement, may request the
court to refer the parties to arbitration in accordance with such
agreement.
 Rule 4.2. When to make request. — (A) Where the
arbitration agreement exists before the action is filed. — The request for
referral shall be made not later than the pre-trial conference. After the
pre-trial conference, the court will only act upon the request for referral
if it is made with the agreement of all parties to the case.
(B) Submission agreement. — If there is no existing
arbitration agreement at the time the case is filed but the parties
subsequently enter into an arbitration agreement, they may request the
court to refer their dispute to arbitration at any time during the
proceedings.
Rule 4.3. Contents of request. — The request for referral
shall be in the form of a motion, which shall state that the dispute is
covered by an arbitration agreement.
Apart from other submissions, the movant shall attach to his
motion an authentic copy of the arbitration agreement.
The request shall contain a notice of hearing addressed to all
parties specifying the date and time when it would be heard. The party
making the request shall serve it upon the respondent to give him the
opportunity to file a comment or opposition as provided in the
immediately succeeding Rule before the hearing. Attention must be
paid, however, to the salient wordings of Rule 4.1. It reads: "[a] party to
a pending action filed in violation of the arbitration agreement . . . may
request the court to refer the parties to arbitration in accordance with
such agreement."
In using the word "may" to qualify the act of filing a "request" under Section 24 of R.A. No.
9285, the Special ADR Rules clearly did not intend to limit the invocation of an arbitration agreement in a
pending suit solely via such "request." After all, non-compliance with an arbitration agreement is a valid
defense to any offending suit and, as such, may even be raised in an answer as provided in our ordinary
rules of procedure.
4. In this case, it is conceded that petitioner was not able to file a separate "request" of
arbitration before the MeTC. However, it is equally conceded that the petitioner, as
early as in its Answer with Counterclaim, had already apprised the MeTC of the
existence of the arbitration clause in the 2005 Lease Contract and, more significantly,
of its desire to have the same enforced in this case. This act of petitioner is enough valid
invocation of his right to arbitrate.
5. The fact that the parties already underwent through JDR proceedings before the RTC,
will not make the subsequent conduct of arbitration between the parties unnecessary
or circuitous. The JDR system is substantially different from arbitration proceedings.
6. JUDICIAL DISPUTE RESOLUTION DISTINGUISHED FROM ARBITRATION.
The JDR framework is based on the processes of mediation, conciliation or early
neutral evaluation which entails the submission of a dispute before a "JDR judge" who shall
merely "facilitate settlement" between the parties in conflict or make a "non-binding
evaluation or assessment of the chances of each party's case." Thus in JDR, the JDR judge lacks
the authority to render a resolution of the dispute that is binding upon the parties in conflict.
In arbitration, on the other hand, the dispute is submitted to an arbitrator/s — a
neutral third person or a group of thereof — who shall have the authority to render a
resolution binding upon the parties.
7. Mere submission of a dispute to JDR proceedings would not necessarily render the
subsequent conduct of arbitration a mere surplusage. The failure of the parties in conflict to
reach an amicable settlement before the JDR may, in fact, be supplemented by their resort to
arbitration where a binding resolution to the dispute could finally be achieved.
8. Neither would the summary nature of ejectment cases be a valid reason to disregard the
enforcement of the arbitration clause of the 2005 Lease Contract. Notwithstanding the
summary nature of ejectment cases, arbitration still remains relevant as it aims not only to
afford the parties an expeditious method of resolving their dispute.
R.A. No. 9285
Sec. 24. Referral to Arbitration. — A court before which an
action is brought in a matter which is the subject matter of an
arbitration agreement shall, if at least one party so requests not later
that 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. [Emphasis supplied]
The violation by the MeTC of the clear directives under R.A. Nos. 876 and 9285
renders invalid all proceedings it undertook in the ejectment case after the filing by petitioner
of its Answer with Counterclaim — the point when the petitioner and the respondent should
have been referred to arbitration.
9. Doctrine of COMPETENCE-COMPETENCE.
Rule 2.4. Policy implementing competence-competence
principle. - The arbitral tribunal shall be accorded the first opportunity
or competence to rule on the issue of whether or not it has the
competence or jurisdiction to decide a dispute submitted to it for
decision, including any objection with respect to the existence or
validity of the arbitration agreement. When a court is asked to rule
upon issue/s affecting the competence or jurisdiction of an arbitral
tribunal in a dispute brought before it, either before or after the arbitral
tribunal is constituted, the court must exercise judicial restraint and
defer to the competence or jurisdiction of the arbitral tribunal by
allowing the arbitral tribunal the first opportunity to rule upon such
issues.
Where the court is asked to make a determination of
whether the arbitration agreement is null and void, inoperative or
incapable of being performed, under this policy of judicial restraint, the
court must make no more than a prima facie determination of that
issue.
Unless the court, pursuant to such prima facie
determination, concludes that the arbitration agreement is null and
void, inoperative or incapable of being performed, the court must
suspend the action before it and refer the parties to arbitration
pursuant to the arbitration agreement.