Preliminary Matters and Principles
any evidence.
4.18 Equal Treatment of Parties. The parties shall
be treated with equality and each shall be given a
full opportunity of presenting his/her case.
4.41. Confidentially of Arbitration Proceedings.
The arbitration proceedings, including the records,
evidence and the arbitral award, shall be
considered confidential except:
1. With the consent of the parties; or
2. For the limited purpose of disclosing to the court
relevant documents in cases where resort to the
court is allowed herein.
4.20. Place of Arbitration.
1. Parties are free to agree on the place of
arbitration.
2. Failing such agreement, the place of arbitration
shall be in Metro Manila
3. Unless the arbitral tribunal, having regard to the
circumstances of the case, including the
convenience of the parties, shall decide on a
different place of arbitration.
However with respect to for consultation among its
members, for hearing witnesses, experts or the
parties, or for inspection of goods, other property or
documents the arbitral tribunal may, unless
otherwise agreed by the parties, meet at any place
it considers appropriate.
4.22. Language.
1. The parties are free to agree on the language or
languages to be used in the arbitral proceedings.
Note: a. Which shall apply to any written statement
by a party, any hearing and any award, decision or
other communication by the arbitral tribunal.
b. The arbitral tribunal may order that any
documentary evidence shall be accompanied by a
translation into the language or languages agreed
upon by the parties
2. Failing such agreement, the language to be used
shall be English.
4.19. Determination of the Rules of Procedure.
1. The parties are free to agree on the procedure
to be followed by the arbitral tribunal in conducting
the proceedings. Subject to the provision of this
Chapter (Chapter 4 of DOJ Department Order No.
98)
2. Falling such agreement, the arbitral tribunal
may, subject to this Chapter, conduct the
arbitration in such manner as it considers
appropriate.
Note: The power conferred upon the arbitral
tribunal includes the power to determine the
admissibility, relevance, materiality and weight of
4.28 Rules Applicable to the Substance of
Dispute.
1. The arbitral tribunal shall decide the dispute in
accordance with such rules of law as are
chosen by the parties to applicable to the
substance of the dispute. Any designation of the
law or legal system of a given state shall be
construed, unless otherwise expressed, as directly
referring to the substantive law of that state and not
its conflict of laws rules.
2. Failing any designation by the parties, the
arbitral tribunal shall apply the law determined by
the conflict of laws rules, which it considers
applicable.
3. The arbitral tribunal shall decide ex aequo et
bono or as amiable compositeur only if the parties
have expressly authorized it to do so.
Ex Aequo Et Bono is a Latin term which means
what is just and fair or according to equity and good
conscience. Something to be decided ex aequo et
bono is something that is to be decided by
principles of what is fair and just. A decision-
maker who is authorized to decide ex aequo et
bono is not bound by legal rules but may take
account of what is just and fair.
Note: That in all cases, the arbitral tribunal shall
decide in accordance with the terms of the contract
and shall take into account the usages of the trade
applicable to the transaction.
PROCEDURE
4.21 Commencement of Arbitral Proceedings.
1. Submission Agreement: When the parties
agreed to submit to arbitration their pre-existing
dispute.
2. Agreement to Arbitrate: When the parties
undertake to settle their future controversies
through the arbitral proceedings. It is commence
when a request to arbitration is received by the
respondent.
4.23 Statements of Claim and Defense.
1. Statement of Claims
When filed; within the period of time agreed by the
parties or determined by the arbitral tribunal,
Content of the Statement of Claims;
a. the claimant shall state the facts supporting
his/her/its claim,
b. the points at issue
c. and the relief or remedy sought.
Including all documents they consider to be
relevant.
Effect of failure to file Statement of Claims: the
arbitral tribunal shall terminate the proceedings.
(Article 4.25)
2. Statement of Defense
When filed; within the period of time agreed by the
parties or determined by the arbitral tribunal,
Content of the Statement of Claims;
a. the respondent shall state his/her/its
defense in respect of these particulars,
Including all documents they consider to be
relevant.
Effect of failure to file Statement of Defense: The
arbitral tribunal shall continue the proceedings
without treating such failure in itself as an
admission of the claimant’s allegations. (Article
4.25)
Note: Unless otherwise agreed by the parties,
either party may amend or supplement his/her
claim or defense during the course of the arbitral
proceedings, unless the arbitral tribunal considers
it inappropriate to allow such amendment having
regard to the delay in making it.
4.24 Hearing and Written Proceedings.
1. Subject to any contrary agreement by the
parties, the arbitral tribunal shall decide whether to
hold oral hearings for the presentation of evidence
or for oral argument, or whether the proceedings
shall be conducted on the basis of documents and
other materials.
2. Provided that: The parties shall be given
sufficient advance notice of any hearing and of any
meeting of the arbitral tribunal for the purposes of
inspection goods, other property or documents.
3. All statements, documents or other information
supplied to the arbitral by one party shall be
communicated to the other party. Also, an expert
report or evidentiary document on which the arbitral
tribunal may rely in making its decision shall be
communicated to the parties.
4. During the Hearing and Written Proceedings the
arbitral tribunal may appoint one or more experts to
report to it on specific issues.
It may also require a party to give the expert any
relevant information or to produce, or to provide
access to, any relevant documents, goods or other
property for his/her inspection. (4.26. Expert
Appointed by the Arbitral Tribunal.)
5. During the Hearing and Written Proceedings
a. The arbitral tribunal shall have the power to
subpoena witnesses and documents when the
relevancy of the testimony and the materiality
thereof has been demonstrated to it.
b. The arbitral tribunal or a party with the approval
of the arbitral tribunal may request from a court of
the Philippines assistance in taking evidence.
c. A party may bring a petition under this Section
before the court in accordance with the Rules of
Court or the Special ADR Rules (Contempt)
Decision and the Arbitral Award
4.29. Decision-Making by Panel of Arbitrators.
1. When there is only one arbitrator the
decision shall be made by the single
arbitrator.
2. When there are more than one arbitrator,
any decision of the arbitral tribunal shall be
made, by a majority of all its members.
However during the course of the proceeding
the parties may settle the dispute. Upon settlement
the arbitral tribunal shall terminate the proceedings
and, if requested by the parties and not objected to
by the arbitral tribunal, record the settlement in the
form of an arbitral award on agreed terms. Such an
award has the same status and effect as any other
award on the merits of the case. (4.30. Settlement.)
4.31. Form and Contents of Award.
In what form; the arbitral award shall be made in
writing and shall be signed by the arbitrator or
arbitrators. In arbitral proceedings with more than
one arbitrator, the signatures of the majority of all
members of the arbitral tribunal shall suffice,
provided that the reason for any omitted signature
is stated.
Content: 1. The award shall state the reasons
upon which it is based
2. The award shall state its date and the place of
arbitration.
Service: After the award is made, a copy signed by
the arbitrators shall be delivered to each party.
CORRECTIVE AND REMEDIAL MEASURES:
Article 4.33. Correction and Interpretation of
Award, Additional Award.
When filed: within thirty (30) days from receipt of
the award, unless another period of time has been
agreed upon by the parties:
a. Correction of Award: A party may, with
notice to the other party, request the arbitral
tribunal to correct in the award any errors in
computation, any clerical or typographical
errors or any errors of similar nature;
b. Interpretation of Award: A party may, it so
agreed by the parties and with notice to the
other party, request the arbitral tribunal to
 give an interpretation of a specific point or
part of the award.
c. Additional Award: A party with notice to the
other party, request, the arbitral tribunal to
make an additional award as to claims
presented in the arbitral proceedings but
omitted from the award.
Article 4.34. Aplication for Setting Aside an
Exclusive Recourse against Arbitral Award.
When filed:
1. Within three months after the had received
the award
2. However if a request had been made
under Article 4.33 (Correction and
Interpretation of Award, Additional Award)
from the date on which that request has been
disposed of by the Arbitral tribunal
Where filed: before the Regional Trial Court
Grounds:
1. Defect in the Arbitration Agreement
2. Violation of due process
3. Lack or exess of jurisdiction on the part of
the arbitral tribunal
4. The arbitration agreement was violated
Recognition and Enforcement of
Awards
Article 4.42. Summary nature of proceedings
before the court. A petition for recognition and
enforcement of awards brought before the court
shall be heard and dealt with summarily in
accordance with the Special ADR Rules.
Distinction must be made between:
1. Convention Award: an arbitral award, made
in a state, which is a party to the New York
Convention. Its recognition and
enforcement shall be governed by New
York Convention as implemented by the
IRR.
2. Non-Conventional award: a foreign arbitral
award made in the state which is not a party
to the New York Convention. It cannot be
recognized or enforced under the ADR Act
of 2004 but it may be deemed as
presumptive evidence of a right as between
the parties in accordance with Section 48,
Rule 39 of the 1997 Rules of Civil
Procedure.
Where Filed: Proceedings for recognition and
enforcement of an arbitration agreement shall be
deemed as special proceedings and shall be filed
with the Regional Trial Court where:
(a) the arbitration proceedings are conducted;
(b) where the asset to be attached or levied upon,
or the act to be enjoined is located;
(c) where any of the parties to the dispute resides
or has its place of business; or
(d) in the National Capital Judicial Region at the
option of the applicant.
Procedure Recognition and Enforcement of
Awards
1. Filing of application: The party relying on an
award or applying for its enforcement shall
file with the Regional Trial Court the original
or duly authenticated copy of the award and
the original arbitration agreement or a duly
authenticated copy thereof. If the award or
agreement is not made in an official
language of the Philippines, the party shall
supply a duly certified translation thereof
into such language.
2. Refusing Recognition: An arbitral award,
may be refused, at the request of the party
against whom it is provoked on the
following ground;
A. Defect in the Arbitration Agreement
B. Violation of due process
C. Lack or exess of jurisdiction on the part
of the arbitral tribunal
C. The arbitration agreement was violated
3. Recognition: Once confirmed shall be
enforced in the same manner as final and
executory decisions of courts of law of the
Philippines.
4. Appeals: The decision of the Regional Trial
Court recognizing, enforcing, an arbitral
award may be appealed to the Court of
Appeals in accordance with the rules of
procedure to be promulgated by the
Supreme Court. The losing party who
appeals shall post a counter-bond executed
if favor of the prevailing party equal to the
amount of the award in accordance with the
Special ADR Rules.
However when the parties stipulate
that the arbitral tribunal’s award or decision
shall be final. Such stipulation carries with it
a waiver of the right to appeal from an
arbitral award but without prejudice to
judicial review by way of certiorari under
Rule 65 of the Rules of Court.