CHAPTER 1: THE ARBITRATION AGREEMENT ❏ Case: Associated Bank v CA - SC ruled that:
36.6 of the PCHC Rules provides that “the fact that a bank
Party Autonomy - Parties are able to choose any ADR mechanism for the
resolution of disputes.
*Essence best appreciated if compared with litigation: In litigation, parties
cannot choose the judge who will resolve the dispute no the procedure
that the judge will follow in the resolution of the dispute.
Arbitration is the Law between the Contracting Parties - A contract is
required for arbitration to take place and be binding. Thus, rights and
liabilities of the parties are controlled by the law of contracts.
*Distinction: Arbitration - future dispute; Submission - existing controversy
*Arbitration vaunted as the “wave of the future” in international relations.
*International commercial arbitration under PH law is governed by the
“Model Law” adopted by the UNCITRAL on June 21, 1985 [and
recommended for enactment in Resolution No. 40/72 approved on Dec.
11, 1985]. Considering that Sec. 19 of RA 9285 specifies that Model Law
of 1985 shall govern international commercial arbitration in the Philippines
without qualification, the amendments on July 7, 2006 does not affect the
continuing application of the Model Law of 1985. (verba legis)
> Under Model Law, arbitration agreement may be
in the form of an arbitration clause
(1) in a contract, or (2) in the form of a separate
agreement
Exception - certain subject matters that PH law does not allow to be the
subject of arbitration within the framework of RA 876 and RA 9285, as
follows:
(a) Labor disputes covered by PD 442 (Labor Code of the
Philippines), as amended by its IRR
(b) Civil status of persons
(c) Validity of marriage
(d) Any ground for legal separation
(e) Jurisdiction of courts
(f) Future legitime
(g) Criminal liability
(h) Those which by law cannot be compromised
*refers to Art. 2035 of the NCC - no compromise upon the ff
questions shall be valid:
(1) Civil status of persons
(2) Validity of marriage or a legal separation
(3) Any ground for legal separation
(4) Future support
(5) Jurisdiction of courts
(6) Future legitime
Formal Requisites of Arbitration Agreement
(A) It must be in writing, and
(B) It must be subscribed by the parties or their representatives.
*To subscribe - to write underneath, as one’s name; to sign at
the end of a doc; to give consent or to attest
❏ Case: BF Corporation v CA - SC ruled that the subscription of
the principal agreement effectively covered the other
documents incorporated by reference therein. (In this case, the
Articles of Agreement was signed by reps of both parties and
duly notarized. The failure of resp’s reps to initial the
“Conditions of Contract” would therefore not affect compliance
with the formal requisites…
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participates in the clearing operations of PCHC shall be
deemed its written and subscribed consent to the binding
effect of this arbitration agreement as if it had done so in
accordance with Section 4 of the Republic Act No. 876
otherwise known as the Arbitration Law.” Thus, not only do the
parties manifest by mere participation their consent to theses
rules, but such participation is deemed (their) written and
subscribed consent to the binding effect of the arbitration
agreements under the PCHC Rules.
❏ Case: Ormoc Sugarcane Planters’ Association Inc. CA - SC
ruled that the association, as mere agents of the employees,
should have brought the suit in the names of the principal
Principle of Separability of Arbitration Clause - This means that the
arbitration clause shall be treated as an agreement independent of the
other terms of the contract of which it forms part.
❏ Case: Gonzales vs. Climax Mining Inc. - SC rules that an
arbitration agreement is independent of the main contract.
Resolution/Rescission of Arbitration Agreement - This means that, where
a contract contains an arbitration clause, a party may not unilaterally
resolve or terminate the contract, on account of the infractions committed
by the other party, without first resorting to arbitration.
❏ Case: Korea Technologies Co. vs. Lerma - By virtue of the
presence of the arbitration clause in the contract, even if the
other party fails to perform its prestation in reciprocal
obligations, the aggrieved may not unilaterally resolve or
terminate the contract without first resorting to arbitration.
CHAPTER II: DOMESTIC AND COMMERCIAL ARBITRATION
Importance of Distinguishing Type of Arbitration - Determination of
available remedies for (a) the winning party in order to enforce or for (b)
the losing party in order to assail the arbitral award.
Commercial - Matters arising from all relationships of a commercial
nature, whether contractual or not.
Relationships of a commercial nature - Includes the following
transactions: Any trade transaction for the supply or exchange of goods
or services; Distribution agreements; Construction 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. (ADCC-FLCELIF-BIJOC)
Domestic Arbitration - Any arbitration that is not international as defined
in Article 1(3) of the Model Law.
International Arbitration (Model Law of 1985) - Arbitration is international
if: (a) The parties to an arbitration agreement have, at the time of the
conclusion of that agreement, their places of business in different States;
or (b) one of the following places is situated outside the State in which the
parties have their places of business:
(i) the place of arbitration if determined in, or pursuant to, the
arbitration agreement;
 (ii) any place where a substantial part of the obligations of the
an arbitration
commercial relationship is to be performed or the place with
agreement be in writing
which the subject-matter of the dispute is most closely is met by an electronic
connected; communication if the
Or (c) the parties have expressly agreed that the subject-matter of the information contained
arbitration agreement relates to more than one country. therein is accessible so
as to be useable for
subsequent reference.
Rules on determining “Place of Business” - (a) If a party has more than
one place of business, the place of business is that which has the closest “Electronic
relationship to the arbitration agreement; (b) If a party does not have a communication” -
place of business, reference is to be made to his habitual residence. means any
communication that the
Rules on interpreting the Model Law of 1985 - Regard shall be had to its: parties make by means
1) International origin of data messages; “data
message” means
2) Need for uniformity
information generated,
3) Resort may also be made to the travaux preparatoires (Note: sent, received or stored
The travaux préparatoires ("preparatory works") are the official by electronic, magnetic,
record of a negotiation. Sometimes published, the "travaux" are optical or similar means,
often useful in clarifying the intentions of a treaty or other including, but not limited
instrument.) to, electronic data
4) Report of the Secretary General of the U.N. Commission on interchange (EDI),
electronic mail,
International Trade, dated 25 March 1985 a.k.a “International
telegram, telex or
Commercial Arbitration: Analytical Commentary on Draft Text telecopy.
identified reference number A/CN.9/264”
3) If it is contained in an
Model Law of 1986 NOT 2006 - It is important to bear in mind that there exchange of statements
is specific reference to Model Law of 1985 in the ADR Act of 2004. Thus, of claim and defence in
which the existence of
it cannot be presumed that the 2006 amendments automatically apply to
an agreement is alleged
the Philippines.
by one party and not
denied by the other.
Significant part of 2006 Amendments to the Model Law - Adopting state
has 2 options on the definition and form of arbitration agreement. 4) The reference in a
contract to any
document containing an
OPTION 1 OPTION 2 arbitration clause
constitutes an
A. Definition of An agreement by the “Arbitration agreement” is arbitration agreement in
Arbitration parties to submit to an agreement by the writing, provided that
Agreement arbitration all or certain parties to submit to the reference is such as
disputes which have arbitration all or certain to make that clause part
arisen or which may disputes which have arisen of the contract.
arise between them in or which may arise
respect of a defined between them in respect of
legal relationship, a defined legal relationship, Section 19 of R.A. 9285 - Clear and free from any doubt or ambiguity that
whether contractual or whether contractual or not. it is the Model Law of 1985 that shall govern international commercial
not. An arbitration arbitration in the Philippines.
agreement may be in
the form of an ❏ Case: Bolos vs. Bolos - When the law is clear and free from
arbitration clause in a
any doubt or ambiguity, there is no room for construction or
contract or in the form
of a separate interpretation. There is only room for interpretation.
agreement.
Index animi sermo - Speech is the index of intention
B. Form Arbitration agreement N/A
shall be in writing. Verba legis non est recedendum - From the words of a statute, there
should be no departure.
C. Definition of 1) Its content is N/A
“in writing” recorded in any form,
❏ Case: Korea Tech. Co., Ltd. vs. Lerma - The author takes
whether or not the
arbitration agreement or exception to this case insofar as it invokes the Model Law of
contract has been 2006, giving the (false) impression that the 2006 amendments
concluded orally, by of the Model Law apply to the Philippines. Whether the 1985
conduct, or by other version or the 2006 version is the applicable rule is not the
means issue in this case, as such, its discussion in the case is in the
nature of an obiter dictum. (An “obiter dictum” has been
2) The requirement that
defined as an opinion expressed by a court upon some
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 question of law which is not necessary to the decision of the
case before it.)
CHAPTER 3: COMMENCEMENT OF ARBITRATION
Mode of Commencement of Arbitration – manner depends on the rules
adopted:
a. Institutional arbitration – arbitration agreement provide the
procedure
b. Ad hoc arbitration – since no agreed procedure by parties, the
law provides
Demand for Arbitration – in absence of agreed rules, law provides
guidance.
*Ad hoc – instituted by the service by either party of a demand. Demand
shall set forth: (1) nature of controversy, (2) amount involved (if any), and
(3) relief sought (4) together with a true copy of the contract providing for
arbitration. *Demand to be served either in person OR by registered mail.
*In case contract provides for appointment of arbitrators –
1) single arbitrator: demand shall set forth specific time within
with parties shall agree upon arbitrator
2) three arbitrators: demand shall name the arbitrator
appointed by the party making the demand AND shall require
that the party upon whom the demand is made shall, within 15
days after receipt, advise in writing the name of the person the
latter appointed. Notice shall require that the 2 arbitrators
appointment must agree upon the 3rd arbitration within 10 days
from date of notice.
Request for arbitration – ad hoc international arbitration: date when
request received by respondent (request to be referred to arbitration).
NO need for court order. Service of a demand OR request upon
respondent is sufficient.
Judicial Relief Before Commencement of Arbitration - available under the
Special ADR Rules, provided that place of Arbitration is in the PH
The petition for judicial determination of the existence, validity, and/or
enforceability of an arbitration agreement may be filed at any time prior
the commencement. However, despite pendency of the petition, arbitral
proceedings may nevertheless be commenced and continue to the
rendition of an award, while the issue is pending in court.
*May be filed before the RTC where any of the parties has
business/residence.
*Must be verified + state the ff:
1. Facts showing à persons have legal capacity to
sue and be sued
2. Nature and substance of dispute
3. Grounds and circumstances relied upon by
petitioners to establish position, and
4. Relief sought
**must also attach an authentic copy of the
arbitration agreement
*Comment/opposition of respondent – must be filed w/in 15
days from service of petition
*Court may grant if shown that arbitration agreement is
invalid/void/unenforceable/inexistent.
*Summary proceeding
*Court must exercise judicial restraint in accordance with Rule
2.3 of the Special ADR Rules (deferring to the
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competence/jurisdiction of the arbitral tribunal to rule on its
competence/jurisdiction)
Competence-Competence Principle (Rule 2.4 of the Special ADR Rules)
- Arbitral tribunal shall be accorded the first opportunity or
competence to rule on the issue of whether or not it has the
competence/jurisdiction to decide a dispute submitted to it (In such
case, courts must exercise judicial restraint; defer for tribunal to
have first opportunity to rule on it; *judicial restraint = no more than a
prima facie determination of the issue)
Effect of Prima Facie Determination Before Commencement of Arbitration
- Not subject to an MR, appeal or certiorari (when
determination upholding existence/validity/enforceability)
- However, will not prejudice right of any party to raise the issue
before the arbitral tribunal or the court in an action to vacate or set
aside the arbitral award.
o (*Latter case: court’s review of the tribunals’
ruling upholding it shall not longer be limited to
prima facie determination; but shall be a full
review of such issues with regard to standard
for review for arbitral awards in Special ADR
Rules)
Judicial Relief After Arbitration Commences
*after: there exists a ruling of the arbitral tribunal on a preliminary
question upholding or declining its jurisdiction + judicial relief sought is
intended to question that ruling
*VS. before: no such ruling yet by tribunal.
Any party may petition for judicial relief from the ruling of the tribunal on a
preliminary question. *Should ruling of the tribunal declining its jurisdiction
be reversed by the court, parties shall be free to replace the arbitrators or
any of them
*Petition must be verified + filed w/in 30 days from receipt of notice of
ruling in RTC where arbit taking place or any party’s business/residence.
Petition to state requirements (see above)
*attach copy of request for arbitration + ruling of the arbitral tribunal.
*arbitrators to be impleaded as nominal parties + will be notified of the
process of the case
*court shall not require pleadings/written submissions (but may consider
these to be submitted by the tribunal should it decide to participate in the
proceedings.
*comment/opposition w/in 15 days from service of petition
*Mandatory: summary proceedings
Court Action After Arbitration Commences – render judgement within 30
days from time submitted for resolution.
It shall dismiss – if fails to comply with Rule 3.16 regarding requirements
to be stated/attached OR not appear to be prima facie meritorious.
May be granted – finds that agreement is invalid/inexistent/unenforceable
as a result of w/c tribunal has no jurisdiction to resolve the dispute
No Injunction of Arbitration Proceedings - court has no authority to enjoin
the arbitration proceedings during the pendency of the petition (petition
for judicial relief from ruling of the tribunal on a preliminary question
upholding/declining its jurisdiction). Judicial recourse to the court = not
prevent the tribunal from continuing the proceedings and rendering its
award.
Relief Against Court Action –
 - party may file for MR but not for appeal.
- Ruling of the court affirming tribunal’s jurisdiction shall not be
subject to a petition for certiorari.
- Ruling of court that tribunal has no jurisdiction may be subject
of a petition for certiorari.
When the Tribunal Renders Award Ahead of Court Action – petition shall
become ipso facto moot and academic and shall be dismissed by the
RTC. Dismissal w/o prejudice to the right of the aggrieved party to raise
the same issue in a timely petition to vacate or set aside the award.
When the Tribunal Defers Preliminary Ruling on Jurisdiction (until its final
award) – aggrieved party cannot seek judicial relief to question the
deferral and must await the final arbitral award before seeking
appropriate judicial recourse . A ruling by tribunal deferring reso on issue
of jurisdiction until final award à not subject to MR/appeal/pet. for
certiorari.
Nature of Court’s Jurisdiction Whether Before or After Arbitration
Commences
Under RA 876, Sec. 6 – confines authority only to the determination of
WON there is an agreement in writing providing for arbitration.
*Duty of courts – not to resolve the merits; but only to determine if they
should proceed to arbitration
*Improper to raise arguments touching upon the merits.
*If court finds there is a valid arbitration agreement à court shall issue an
order “summarily directing the parties to proceed with the arbitration …”
*If court finds there is NO such agreement à “the proceedings shall be
dismissed”
*Proceedings – summary in nature
CHAPTER 4: APPOINTMENT OF ARBITRATORS
Definition of Arbitrator
- person appointed to render an award (alone or with others) in a dispute
that is subject of an arbit agreement
- *Award - any partial/final decision by an arbitrator in resolving the issue
in controversy.
- compared to litigation: a judge; final award is a final decision
Liability of Arbitrators
- same civil liability for acts done in performance of duties as that of public
officers (Sec. 38(1), Ch 9, Book I of the Administrative Code of 1987) =
NOT civilly liable for acts done in the performance of his official duties,
unless there is clear showing of bad faith, malice, or gross negligence.
- applies also to ADR Providers and Practitioners in general
*ADR Provider = institutions or persons accredited
as mediator, conciliator, arbitrator, neutral evaluator,
or any person exercising similar functions in any
ADR system.
*ADR Practitioners = individuals acting as mediator,
conciliator, arbitrator, or neutral evaluator
Parties’ Participation in the Appointment of Arbitrators
- parties free to agree on a procedure of appointing the arbitrator(s); free
to determine number
- concept of party autonomy
- if failing such determination - three arbitrators
- applies to both domestic and international arbitration
conducted in the PH
- any clause giving one of the parties power to choose more arbitrators
than the other is void and of no effect
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- Case: Magellan Capital Management Corporation v Zosa
Quick facts: MCHC, MCMC, and Zosa entered into
Employment Agreement which consists of an
arbitration clause. Zosa terminated; invoked arbit
clause. Arbit clause provides each party shall
nominate and elect arbitrator.
Ruling of SC: NOT VALID. MCHC and MCMC
represent same interest. Zosa would never get or
receive justice and fairness in arbitration
proceedings. Violative of Art. 2045 of the Civil Code.
Selection should be: one by Zosa, one by MCHC
and MCMC, and third one by both parties.
- Case: Oil and Natural Gas Commission v CA
Quick facts: The 4,300 metric tons of oil well cement
(US$477,300) was held up in Bangkok. PH corp
received payment already; sent replacement
cement. Upon checking, send Indian Commission of
lower class cement. Indian Commission referred
claim to an arbitrator pursuant to Clause 16 of their
agreement. Sole arbitrator.
Ruling of SC: NOT VALID. Arbitration clause gave
only one party the exclusive right to choose the
arbitrator.
When the Court May Act as Appointing Authority
SADR enumerates 3 instances when court (RTC) may act as Appointing
Authority:
1. Institutional
- Any party failed or refused to appoint an arbitrator or
when failed to reach an agreement on the sole
arbitrator; or
- Two designated arbitrators failed to reach an
agreement on the third or presiding arbitrator; and
- Institution fails or is unable to perform its duty as
Appointing Authority within a reasonable time from
receipt of request for appointment, the court may
act as Appointing Authority
- *on reasonable time: under Sec. 27 of RA
9285, is 30 days
2. Ad hoc
- Parties failed to provide a method for appointing or
replacing an arbitrator or substitute arbitrator; or
- Method agreed upon is ineffective; and
- National President of the IBP or his duly authorized
representative fails or refuses to act within such
period… or within period as agreed upon or (in
absence thereof) within 30 days from receipt of such
request for appointment, the court shall act as
Appointing Authority
- Before court may step in to appoint, there
must be a prior request to the Nat’l Pres
of the IBP (or his duly auth rep) to appoint
an arbitrator - pursuant to Sec. 26 of RA
9285
3. Where parties agreed that their dispute shall be resolved by 3
arbitrators but no method of appointing has been agreed upon,
each party shall appoint one arbitrator and the two arbitrators
appointed shall appointed a third arbitrator.
a. If party fails to appoint his arbitrator w/in 30 days of
receipt of request, or if 2 arbitrators fail to agree on
the third w/in reasonable time from appointment,
 appointment shall be made by the Appointing
DISQUALIFICATIONS OF ARBITRATOR
Authority
b. If Appointing Authority fails/refuses to act or appoint
w/in reasonable time from receipt of request, any Depends on the arbitration 1) Arbitrator should not be
party or the appointed arbitrator/s may request the agreement. related by blood or
court to appoint an arbitrator or the third arbitrator. marriage within the 6th
*Again, Appointing Authority has 30 days, Note: In international arbit,
degree to either party
instead of reasonable time. disqualification → award bay be 1)
set aside 2) refused recognition or 2) Financial, fiduciary or
enforcement other interest in the
- Court may act as AA regardless whether domestic or international. controversy or cause to
- Not ministerial on court to appoint an arbitrator. It must conduct a be decided
hearing before deciding to appoint/not appoint 3) Personal bias
- After hearing, if court finds merit = appoint; w/o merit =
dismiss petition. After appointment but before or
- At any time after the petition is filed and before the court during hearing → parties may:
makes an appointment, it shall also dismiss the petition upon 1) Waive presumptive
being informed that the AA has already made the appointment. disqualification
2) Declare office of
Petition for Appointment of Arbitrator (PAA) - may be filed at the option of arbitrator vacant
the petitioner in the RTC where: 1) Principal place of business of any of
the parties is located 2) Where individual parties reside 3) In the National Note: In domestic arbit, if there are
Capital Judicial Region disqualifications and arbitrator
wilfully refrains from disclosing,
Contents of PAA: such can be a ground for vacating
the award
1) General nature of the dispute 2) Description of appointment if
any 3) number of arbitrators agreed upon or absence of
agreement 4) Special qualifications of arbitrators 5) THE FACT Challenge to Appointment of Arbitrator
THAT THE APPOINTING AUTHORITY, WITHOUT - the remedy of a party in order to apply for the disqualification
JUSTIFIABLE CAUSE, HAS FAILED OR REFUSED TO ACT AS of an arbitrator.
SUCH WITHIN THE TIME PRESCRIBED OR IN THE ABSENCE - within 15 days after becoming aware of the constitution of the
THEREOF, WITHIN A REASONABLE TIME, FROM THE DATE arbitral tribunal → send a WRITTEN statement of the reasons
A REQUEST IS MADE 6) Petitioner is not the cause of delay or for the challenge to the arbit tribunal
failure of appointment of arbitrator. 7) authentic copy of the -Filed with the RTC where 1) principal place of business of any
arbitration agreement 8) proof that the appointing authority has of parties 2) individual residence 3) National capital judicial
been notified of the filing of the PAA. 9) Court MAY require list region
of not less than 3 proposed arbitrators with their CV. -If the challenge is unsuccessful, within 30 days after
notice of decision rejecting the challenge → request
● Comment/Opposition to PAA - within 15 days from Appointing Authority or the court to decide (Note:
service of the petition. this decision not subject to appeal)
● Any pending petition in another court to declare
arbit. Agreement inexistent, etc. → this pet. Shall be Contents of Challenge:
dismissed 1) Name of the arbitrator & address 2) Grounds for challenge 3)
Facts showing ground has been rejected by the arbitrator 4)
Order appointing an arbitrator - immediately executory and not subject of Facts showing appointing authority failed or refused to act on
MR, appeal or certiorari. the challenge
Order DENYING petition for appointment of an arbitrator - SUBJECT to
MR, appeal and certiorari Challenge can lead to: 1) voluntary withdrawal of challenged
arbitrator 2) Order of court resolving the petition (Note: Not
subject of MR, appeal or certiorari)
QUALIFICATIONS OF ARBITRATOR
- A substitute arbitrator will be appointed thereafter

Petition to terminate the mandate of an arbitrator (PTMA) = Parties may

International commercial Domestic arbitration
arbitration request termination of the mandate, where an arbitrator becomes de jure
or de facto unable to perform his functions or fails to act without undue
No person shall be precluded by Must be of legal age, in full delay.
reason of his nationality from acting enjoyment of his civil rights and
as arbitrator, unless otherwise know how to read and write. Contents of PTMA: 1) name of arbitrator 2) grounds for
agreed. Rule applicable to termination 3) fact that one of the parties requested arbitrator
domestic as well through Section
to withdraw but he failed or refused 4) failure or inability of the
33 of R.A. 9285
appointing authority to act within 30 days from request of party

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 CHAPTER 5: THE ARBITRAL TRIBUNAL AND THE ARBITRAL statements of issues / agreed statement
PROCEEDINGS of facts
2. POWER OF ARBITRATORS:
Questioning the Jurisdiction of the Arbitral Tribunal a. a) Power to subpoena
Counterpart of Motion to Dismiss on the ground that the court has no witnesses and documents
jurisdiction = When respondent, after the constitution of the arbitral when relevance and materiality
tribunal (AT), raises a preliminary issue on the jurisdiction of the tribunal. proven;
· See Competence-Competence Principle b. b) the SADR provides that the
court may extend assistance in
Question on jurisdiction of the AT may be raised: the taking of evidence through
1) Before commencement a petition to the court to direct
2) After the constitution any person, representation of
corporation, assoc, partnership
Under Model Law: party not precluded from questioning or entity to COMPLY with a
jurisdiction of AT even if: subpoena ad testificandum
1) He has appointed arbitrator and/or subpoena duces tecum;
2) Participated in the appointment of arbitrator court may impose sanctions
against those who disobey
The arbitral proceedings 3. OFFER EVIDENCE
Phases: 4. HEARING: May proceed in the absence
I - Constitution of the arbitral tribunal of any party who: after due notice, fails to
II - Issues pertaining to the qualifications, disqualifications, or fitness of be present at such hearing or fails to
any arbitrator, or the jurisdiction of the arbitral tribunal obtain adjournment; arbitrators must
III - Conduct arbitral proceedings attend ALL hearings
a. Parties free to agree on procedure a. GR: No adjournment shall
b. Absence of agreement, AT may conduct arbitration in manner extend beyond day fixed in the
it considers appropriate contract for rendering of award
c. Parties must: (1) treated with equality and (2) given full b. XPN: Written agreement to
opportunity of presenting his case extend or continued without
objection to adjournment
Legal Representation 5. Optional: OCULAR INSPECTION - But
In arbitration conducted in PH (domestic or international) - party ot be such should only be made in the
represented by: Any person of his choice provided that representative, presence of ALL parties, unless party fails
shall not be authorized to appear as counsel in any PH court or quasi- to appear, in which case ocular shall be
judicial body in relation or not to arbitration, UNLESS admitted to practice made in his absence.
law in the PH. 6. CLOSE OF HEARINGS
a. GR:Arbitrator TO INQUIRE to
Place of Arbitration parties WON they have further
GR: Agree on place proof. If negative reply, declare
XPN: Failing to agree, it shall be Metro Manila. hearing close
XPN to XPN: the AT shall decide on a different place b. XPN: Parties signify intent to
Language of Arbit file briefs. Arbitrators shall
- This applies to written statements, any hearing, any award, close hearings after receipt of
decision, other communication by the AT; documentary brief and reply briefs (Note:
evidence should be accompanied by translation of language TIME LIMITS must be fixed by
agreed upon/determined arbitrators)

GR: Agreement Arbitral proceedings in international commercial arbitration

XPN: English (international); English or Filipino (domestic)
XPN to XPN: AT shall determine language
Arbitral proceedings in domestic arbitration
- Arbitration deemed a special proceeding
- OATH BEFORE HEARING ANY TESTIMONY: to be taken by
witnesses, arbitrators
- Proceedings
- GR: Agreement
- XPN: Follow R.A. 876’s guidelines (NOTE: Not
mandatory. This foregoing procedure is only applied
in the absence of agreement)
1. COMMENCEMENT OF HEARING:
Arbitrators to ask both parties for brief
General Rule: Parties are free to agree on the procedure of the
proceedings, as long as parties are treated with equality and each party
shall be given a full opportunity of presenting his case.
Exception: Failure to agree, arbitral tribunal to conduct proceedings “in
such manner it considers appropriate”. E.g., Model Law as model in the
absence of agreement as to procedure.
● But Model Law recognizes primacy of parties’ agreement
Phases:
I. Preliminary matters - 1) Constitution of AT 2) Fixing of
timetable in the proceedings
II. Written Submissions
1) Statement of Claim

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 a. AT shall terminate if claimant fails to communicate
his SOC without sufficient cause, unless otherwise
agreed upon
2) Statement of Defense
a. AT shall continue even if respondent fails to
communication SOD, without treating such failure as
an admission of the claimant’s allegations
b. A “plea that AT does not have jurisdiction” shall be
raised not later than the submission of SOD
c. On the other hand, “plea that AT is exceedings its
scope of authority” must be raised as soon as
matter that is beyond scope is raised during the
arbitral proceedings
Contents of Statement of Claim: General Rule: Claimant sets forth: 1)
facts supporting claim 2) points at issue 3) relief or remedy sought;
Exception: Parties agreed as to contents
Note: Along with statements, parties may submit relevant documents;
add a reference to the documents; other evidence.
Rules as to amendments/supplement to statements:
General Rule: Agreement of parties shall prevail
Exception: In the absence of agreement, either party may a/s during the
course of the proceedings
XPN to XPN: AT finds it inappropriate, having regard to delay
Rules as to hearings
GR: Agreement prevails
XPN: AT to determine, upon request of parties, if it should hold oral
hearings for presentation of evidence; oral arguments; or whether the
proceedings will be conducted on the basis of documents. (“Power to
determine admissibility, relevance, materiality and weight [W-A-R-M] of
evidence”)
Note: Parties must be given sufficient advance notice to:
● Any hearing;
● Any AT meeting re: inspection of goods/property/documents;
● Any statements, docs, other info supplied to AT;
● Expert report;
● Evidentiary document
Effect of failure to appear at hearing → If without sufficient cause, AT may
continue proceedings and make an award based on the evidence before
it.
Rules re: expert report
GR: Agreement of parties
XPN:
1) AT may appoint one/more experts to report on specific issues;
or
2) Require a party to give the expert any relevant info/produce
relevant docs, goods or other property for inspection
Procedure re: participation of expert in hearings:
Delivery of written/oral expert report → if party requests/AT finds it
necessary → Expert must participate in a hearing
● Ratio: Opportunity to question him/present expert witnesses to
testify on the points at issue
Court Assistance in Taking Evidence
Bayona Encarnacion
SADR has provisions in place for the court to provide assistance in the
taking of evidence in arbitration.
Any party, may request the court to provide assistance in taking
evidence, at any time during the course of the arbitral proceedings when
the need arises.
> A petition for assistance in taking evidence may, at the option of the
petitioner, be filed with the RTC where:
(a) Arbitration proceedings are taking place;
(b) The witnesses reside or may be found, or
(c) Where the evidence may be found.
> The petitioner may ask the court to direct any person (incl. a rep of a
corp/assoc/partnership/other entity) [*other than a party the ADR
proceedings or its officers]* in the PH, for any of the following:
a. To comply with a subpoena ad testificandum AND/OR
subpoena duces tecum;
b. To appear as witness before an officer for taking of his
deposition upon oral examination or by written interrogatories
c. To allow the physical examination of the condition of person, or
the inspection of things or premises, and, when appropriate, to
allow the recording and/or documentation of condition of
persons, things or premises.
(ie. photos/videos/other means)
d. To allow the examination and copying of documents; and
e. To perform any similar acts.
> The petition must state the following:
a. Fact that there is an ongoing arbitration proceeding, even if
could not continue due to legal impediments
b. That (a) arbitral tribunal ordered the taking of evidence, OR (b)
party desires to present evidence to the arbitral tribunal
c. Materiality or relevance of the evidence to be taken; and
d. Names and addresses of the intended witness/es, places
where the evidence may be found, the place where premises
to be inspected are located or place where the acts required
are to be done.
> The comment/opposition must be filed w/in 15 days from service; court
to resolve in summary proceedings.
> If evid not privileged + material and relevant = court to GRANT
assistance + ORDER petitioner to pay costs
*order immediately executory; not subject to MR or appeal.
*if court DECLINES = petitioner may file MR or appeal
> If anytime before arbit commenced or tribunal constituted, any person
who desires to perpetuate his testimony or that of another may do so
according to Rule 24 of RoC.
> Court may impose appropriate sanction = disobeys order to testify
when required or perform any act required of him
> On WON arbitral tribunal can initiate the legal action to invoke court
assistance:
a. SADR = silent to domestic, but for international, Art. 27 of
Model Law applies (“international commercial arbitration shall
be governed by the Model Law”)
b. Model Law = Art. 27
Confidentiality of Arbitration Proceedings
GR: considered confidential and shall not be published
XPN: Veil of confidentiality may be lifted (1) with the consent of the
parties, or
Request for referral to arbitration in Comment/Opposition within 15
(2) for the limited purpose of disclosing relevant docs to court
the form of a motion to be resolved days from service of the motion
in cases where resort to the court is allowed.
in summary proceedings.

Confidentiality / Protective Orders

Contents: Contents:
A party may request a protective order at any time there is a need to
1. State that the dispute is 1. There is no agreement
enforce the confidentiality of the information obtained or to be obtained in
covered by an AA to refer the dispute to
the ADR proceedings. A petition for a protective order may be filed with
2. Authentic copy of the arbitration and/or
the RTC where that order would be implemented.
AA 2. Agreement is null and
3. Notice of hearing void and/or
> If there is a pending court proceeding in which the info is required or is
addressed to all parties, 3. The subject-matter of
being divulged, the party seeking confidentiality may file a motion with the
specifying the date and the dispute is not
court where the proceedings are pending. Petition/motion must state ff:
time capable of settlement or
a. Info sought to be protected was obtained or would be obtained
4. Requesting party shall resolution by arbitration
during an ADR proceeding;
serve it upon the in accordance with Sec.
b. Applicant would be materially prejudiced by the disclosure of
respondent 6, RA 9285
that information;
c. Person/s being asked to divulge info participated in ADR
proceeding/s;
d. Time/date/place when the ADR proceedings took place. Note: Pendency of motion → arbitral proceedings may nevertheless be
commenced or continued, and an award may be made, while the action
> Movants must set the motion for hearing + contain a notice of hearing is pending before the court.
(re: Rule 15 of RoC)
> Opposing party must file comment/opposition w/in 15 days from service Discretionary or Ministerial: It is not ministerial for a court to refer to
or notice of motion arbitration any and all disputes claimed to be covered by an AA.
*May be accompanied by written proof that --
a. Info not confidential Effects of results of Summary Proceedings:
b. Info not obtained during ADR proc 1) Dispute is arbitrable → Order referring dispute to arbitration,
c. There was waiver of confidentiality, or not subject to MR, appeal or petition for certiorari
d. Petitioner/movant is precluded from asserting 2) Null and void, inoperative, incapable of being performed →
confidentiality Order denying request to refer dispute to arbitration, not
> Court to resolve in summary proceedings subject to appeal BUT: may be subject to MR or petition for
> Order enjoining from divulging info shall be immediately executory and certiorari.
may not be enjoined while the order is being questioned with the
appellate courts. Fiesta World Mall vs. Linberg
> If court declines to grant, petitioner may file MR or appeal. Facts: The arbitration clause reads that “if Fiesta disputes the
amount specified by any invoice, the disputed amount shall be
Arbitral Tribunal Acts in Quasi-Judicial Capacity resolved by arbitration.” The contract between Fiest and
As a rule, findings of facts accorded respect and finality if supported by Linberg contains both an arbitration clause AND a venue
substantial evid, even if not overwhelming or preponderant. stipulation for litigation.
Issue: WON the billing dispute is arbitrable.
CHAPTER 6: REFERRAL TO ARBITRATION Held: There is nothing in the contract providing that the parties
may dispense with the arbitration clause. Arbitration
Defendant’s right to ask the court to stay the proceedings and refer the agreement is binding between them and they are expected to
dispute to arbitration (Sec. 7, RA 876) abide by it in good faith. Since respondents has already filed a
● Restriction under Sec. 7 - That the applicant for the stay is not complaint with the trial court without prior recourse to arbit, the
in default in proceeding with such arbitration” proper procedure to enable arbit panel to resolve the parties’
● GR: The rule now is that a court before which an action is dispute pursuant to their Contract is for the trial court to stay
brought (which is the subject of an AA) shall, if at least 1 party the proceedings.
so requests not later than pre-trial conference refer an
arbitrable dispute to the arbitral forum Puromines Inc. vs. CA [Motion to Dismiss was upheld as a remedy,
XPN: After the pre-trial, upon the request of both parties. contrary to opinion of author]
UNLESS: it finds that the AA is null and void, inoperative or Facts: Private respondent filed a MTD on the grounds that the
incapable of being performed (E.g., Submission agreement - in complaint states no cause of action; that it was prematurely
which both parties agree to submit their dispute to arbitration filed; and that the petitioner should comply with the arbitration
at any time during the court proceedings, even after pre-trial, clause in the sales contract.
although they did not have any AA when the complaint was Issue: WON the phrase ‘any dispute arising under the contract’
filed in court.) in the arbitration clause of the sales contract covers a cargo
claim against the vessel (owner/charterers) for breach of
Note: Applies whether arbitration is domestic or international contract of carriage.

Bayona Encarnacion
 Held: We agree with the court a quo that the sales contract is
comprehensive enough to include claims for damages arising
from carriage and delivery of the goods. Arbitration has been
held valid and constitutional. The rule now is that, unless the
agreement is absolutely to close the doors of the courts
against the parties, which agreement would be void, the courts
will look with favor upon such amicable arrangements and will
only interfere with great reluctance to anticipate or nullify the
action of the arbitrator.
NOTE: Where an arbitrable dispute is the subject of a complaint in court,
without prior resort to arbitration, the proper remedy of party interested in
arbitrating the dispute is not a motion to dismiss but: 1) a motion to stay
civil action (Sec. 7, RA 876) or 2) a motion to refer the dispute to
arbitration (Sec. 24, RA 9285).
● Q: Why not Motion to Dismiss?
A: Arbitration is an alternative mode to resolve the claim/a
voluntary dispute resolution process to resolve a dispute by
rendering an award. Arbitration should not be considered as a
condition precedent for filing the claim. Thus, not a ground to
dismiss the complaint.
● Waivable - A party interested in arbitrating a dispute has to
invoke that right not later than the pre-trial conference.
Otherwise, court can hear the case and eventually resolve
what is otherwise an arbitrable dispute. Again, arbitration is not
be considered as a condition precedent for filing the claim
since the right is waivable. Thus, not a ground to dismiss the
complaint.
Bengson vs. Chan - ruling in Bengson impairs party autonomy. The rule
is: If a court refuses to refer an arbitrable dispute to arbitration and
proceeds to render judgment, that court judgment does not make
arbitration moot and academic.
Bengson vs. Chan [A precedent for the rule that a judicial complaint
should NOT be dismissed, but the parties should be referred to
arbitration.]
Issue: WON the cause of action in the complaint is embraced
in the requirement for arbitration as a condition precedent to a
court action
Held: We agree that arbitration may be resorted to during the
pendency of the case. Instead of dismissing the case, the
proceedings should be suspended and the parties should be
directed to go through the motions of arbitration at least within
a 60 day period. With the consent of the parties, the trial court
may appoint a 3rd arbitrator to prevent a deadlock between
the 2 arbitrators. In the event that the disputes between the
parties could not be settled definitively by arbitration, then the
hearing of the instant case should be resumed.
NOTE: The LM Power case provides that if a dispute is arbitrable and and
a party moves for the referral of the dispute to arbitration, the court’s
resolution of the dispute on the merits is ineffectual and cannot serve to
prevent an arbitral tribunal from resolving the dispute.
LM Power Engineering Corp. vs. Capitol Industrial Construction
Facts: RTC ruled on the merits; denied Motion on the ground
that the dispute did not involve the
interpretation/implementation of the agreement and therefore,
not covered by the arbitral clause.
Bayona Encarnacion
Issue: WON the dispute is arbitrable.
Held: Consistent with the policy of encouraging alternative
dispute resolution methods, courts should liberally construe
arbitration clauses. Provided such clause is susceptible of an
interpretation that covers the asserted dispute, an order to
arbitrate should be granted. Any doubt should be resolved in
favor of arbitration
If action commenced by or against multiple parties, who are parties to an
arbitration agreement, the court shall refer to arbitration those parties
who are bound by the arbitration agreement although the civil action may
continue as to those who are not bound by such arbitration agreement.
Court shall not decline to refer some or all of the parties to arbitration for
any of the following reasons:
1) Not all of the disputes subject of the civil action may be
referred to arbitration;
2) Not all parties to the civil action are bound by the AA and
referral to arbitration would result in multiplicity of suits;
3) The issues raised in the civil action could be speedily and
efficiently resolved in its entirety by the court rather that in
arbitration;
4) Referral to arbitration does not appear to be the most prudent
action
5) The stay of an action would prejudice the rights of the parties
to the civil action who are not bound by the AA.
Summary proceeding determining if dispute is arbitrable → Refer parties
bound by AA → However, court may issue an order directing the
inclusion (in arbitration) of those parties who are not bound by the AA, but
who agree to such inclusion provided those originally bound by it do not
object.
Toyota Motor vs. CA
Issue: What is the effect of the involvement of a 3rd party (Sun
Valley) in the dispute between 2 other parties (Toyota & APT)
who are both bound by an arbit agreement?
Held: The contention that the arbitration clause has become
dysfunctional because of the presence of 3rd parties is
untenable. Toyota is bound to respect the provisions of the
contract it entered with APT.
Heirs of Salas vs. Laparel Realty [Note: Resort to trial because splitting
proceedings into arbit & litigation would result in multiplicity of suits.
Author does not agree]
Facts: The Supreme Court distinguished between who are
bound and who are not by the arbitration clause.
Issue: WON dispute should be referred to arbit
Held:
● Submissions to arbitration is a contract. Agreement,
containing stipulation on arbit, binds the parties,
assigns and heirs. But only they. Petitioner &
respondent are certainly bound by the agreement. If
respondent assigned rights under agreement to 3rd
party, such assignee will be bound by the arbit
provision.
● HOWEVER, to split proceedings into arbitration for
respondent and trial for respondent lot buyers would
in effect result in multiplicity of suits, duplicitous
procedure and unnecessary delay. It would be in the
interest of justice if the trial court hears the
complaint against all respondents and adjudicate
 petitioners’ rights in a single and complete
proceeding.
Del Monte Corp-USA vs. CA [Referred to Salas ruling. Author does not
agree]
Issue: WON the dispute between the parties warrants an order
compelling them to submit to arbitration.
Held:
● Referral to arbitration and the suspension of the
proceedings in the civil case pending the return of
arbitral award could be called for but only as to
petitioner DMC USA and Derby, Jr. and
respondents MMI and Lily Sy. Not as to other parties
in this case.
● In Salas, in recognizing the right of the contracting
parties to arbitrate, the splitting of the proceedings
to arbitration as to some of the parties on one hand
and trial for others, should not be allowed as it would
result in multiplicity of suits.
European Resources and Tech., Inc. vs. Ingenieuburo [Del Monte was
reiterated in European Resources]
Issue: WON the dispute between the German Consortium and
petitioners ERTI and Delfin, should be referred to arbitration.
Held: Interest of justice would only be served if the trial court
hears and adjudicates the case in a single and complete
proceeding.
NOTE:
● Salas and Del Monte have been rectified by the enactment in
2004 of RA 9285, wherein it is provided in Sec. 25 that “where
action is commenced by or against multiple parties, one or
more of whom are parties to an arbitration agreement, the
court shall refer to arbitration those parties who are bound by
the arbitration agreement although the civil action may
continue as to those who are not bound by such arbit
agreement.
● Applied to domestic & international.
Salas, Del Monte and European responsible for rule in 2009 SADR: “The
court shall not decline to refer parties to arbit for any of the following
reasons (Reworded: The court shall still refer to arbit when:)
1) Some disputes may be referred to arbit
2) Some parties are bound by arbit agreement
3) Issues raised in civil action could be speedily & efficiently
resolved by court
4) Referral to arbit does not appear most prudent action
5) Stay of action will prejudice parties to civil action not bound by
arbit agreement”
CHAPTER 7: INTERIM MEASURES OF PROTECTION
Interim Measures of Protection in General
A party in arbitration may apply for interim or provisional relief to prevent
irreparable loss or injury, to provide security for the performance of any
obligation, to produce or preserve any evidence, or to compel any other
appropriate act or omission.
QUESTION –From whom may obtain interim relief: court/tribunal/both?
The Rule under RA 876
Bayona Encarnacion
SEC. 14 – BOTH. Sec 14, governing domestic arbitration, arbitral tribunal
and the court have concurrent powers without any qualification.
Before the constitution of the arbitral tribunal = only the court
But once the arbitral tribunal has been constituted = either. The option
belongs to the party.
(Thus while arbit proceedings are being conducted, RA 876 gives a party
the option to obtain interim relief outside the arbitration proceedings by
going to court.)
CASE: Home Bankers Savings and Trust Company v CA (1999)
Issue: WON the FEBTC which commenced an arbitration proceeding
under the auspices of the PCHC may subsequently file a separate case in
court over the same subject matter of arbitration despite the pendency of
that arbitration, simply to obtain the provisional remedy of attachment
against the bank, the adverse party in the arbitration proceeding.
Held: YES, following Sec. 14 of RA 876.
Participants in the regional clearing operations of the PCHC cannot
bypass the arbitration process laid out by the body and seek relief directly
from the courts. In the case at bar, resp. has initiated arbit proceedings
as required and pending arbit has sought relief from the trial court for
measures to safeguard and/or conserve the subject of the dispute.
The Rule under RA 9285
SEC. 28 – ARBIT TRIBUNAL. RA 9285 tilted in favour of the arbitral
tribunal by imposing a limitation on the power of the court.
The power of the court the grant interim relief under Sec. 14 of RA 876
w/o qualification was maintained up to that point only BEFORE the
constitution of the arbitral tribunal.
However, AFTER the constitution, and DURING the arbitral proceedings,
the GENERAL RULE NOW is that the request for an interim measure of
protection may be made with the ARBITRAL TRIBUNAL.
Ø EXCEPTION: may be made with the court only to the
extent that the tribunal has-- (a) no power to act on
the request or (b) is unable to act effectively.
o Transfield Philippines, Inc. v Luzon Hydro
Corporation
- Needed to obtain injunctive
relief against two banks not
parties to the arbitration
agreement. SC ruled that it
was valid that application for
injunctive relief before the RTC
was valid.
Ø Now the rule for both domestic arbitration and int’l
commercial arbitration conducted in the PH.
To what extent may the arbitral tribunal modify the interim relief previously
granted by the court?
(Answer in next part!)
The Present Rule under the Special ADR Rules
That power of an arbitral tribunal to modify any court action granting or
denying an application for interim relief includes the power to amend,
revise, or revoke an interim measure of protection previously issued by
the court.
Effect on the Applicability of the Model Law
Deemed modified by Sec. 28 of RA 9285 and Rule 5.2 of the SADR.
Court Procedure under the Special ADR Rules
Verified petition must state the ff:
a. Fact that there is an arbit agreement
b. Fact that arbit tribunal not been constituted, or if yes, would
be unable to act or unable to act effectively
c. Detailed description of the appropriate relief sought
d. Grounds relied on for the allowance of petition
*Attach: authentic copy of the arbitration agreement.
Grounds the court shall consider in granting relief:
a. Need to prevent irreparable loss or injury
b. Need to provide security for the the perf of any obligation
c. Need to produce or preserve evid
d. Need to compel any other appropriate act or omission
May be filed in RTC w/c has jurisdiction over any of ff:
a. Where principal place of business of any of parties is located
b. Where any of parties resides
c. Where any of the acts sought to be enjoined are being
performed, threatened to be performed, or not being performed, or
d. Where real property subject of arbitration, or a portion thereof
is situated.
Comment/opposition must be filed w/in 15 days from service of petition;
should state reasons why not be granted. Court to resolve in summary
proceedings.
Court Action
Court to balance relative interests; to resolve matter within 30 days from –
(a) Submission of opposition
(b) Lapse of period to file the same, or
(c) From termination of the hearing (that the court may set only if
needs clarification/further argument) –within the context of Rule 1.3;
hearing summary; to be conducted in 1 day
If others fail to file opposition to the petition for interim relief on/day of
hearing, court shall motu proprio render judgement only on basis of
allegation in petition.
After notice and hearing, court to grant or deny pet for interim measure of
protection; must indicate issued w/o prejudice to subsequent grant,
modification, amendment, revision, or revocation by an arbitral tribunal;
order may be conditioned.
However court shall defer action when informed that a tribunal has been
constituted.
Court Order Immediately Executory
But may be subject of MR and/or appeal, or if warranted, pet for
certiorari.
When Ex-Parte Court Action Allowed
May dispense with prior notice to other party by alleging there is an
urgent need…if court finds meritorious, it shall issue temporary order of
protection and require pet w/in 5 days from receipt to post a bond to
answer for any damage resp may suffer.
The ex-parte TOP = valid for only 20 days from service.
Resp has option to lift the TOP by posting appropriate counterbond.
Court may also extend period of TOP for no more than 20 days from
expiration of original period.
Court may grant/deny petition for interim measure of protection. Must
indicate w/o prejudice. Order may be conditioned.
When Arbitral Tribunal Grants Interim Relief
GR: after constitution of arbitral tribunal and at any time during
proceedings, an interim measure of protection must be obtained from the
tribunal.
Bayona Encarnacion
^but a potential problem may arise from the fact that tribunal does not
possess power to cite in contempt and to impose coercive penalty in the
event a party disobeys an interim measure of protection.
SO present rules provide that tribunal is to make court assistance
available to enforce the interim relief.
The court shall not deny any application for assistance on any or all of the
ff grounds:
a. Tribunal granted interim relief ex parte, or
b. Party opposing application found new material evidence
which tribunal had not considered which if considered may produce
diff result
*if court finds there is sufficient merit in the
opposition – refer back to tribunal
c. Measure of protection ordered by tribunal amends, revokes,
modifies, or is inconsistent with an earlier measure of protection
issued by the court.
In addition to making court assistance available, party that does not
comply will also be liable for damages.
The Rule in a Nutshell
pp. 167-168 (rehash)
CHAPTER 8: THE ARBITRAL AWARD IN DOMESTIC ARBITRATION
The Award in General
RA 9285 = “award” – any partial or final decision by an arbitrator in
resolving the issue in controversy.
Final award = equivalent of the judgement in litigation
Any stipulation that the arbitrator’s award or decision be final is valid, w/o
prejudice to Arts 2038-40 of the NCC.
Form and Contents of Domestic Arbitral Award
Rendered w/in 30 days, unless parties stipulated diff period.
Must be in writing, signed, and acknowledged by majority of arbitrators if
more than one or by sole arbitrator. (w/o prejudice to the right of parties
to stipulate must be signed by all arbitrators and not just the majority).
RA 876 does not allow default awards.
Each party shall be furnished with a copy of the award.
Remedy or relief must be within the scope of the agreement of the
parties.
No arbitrator shall act as a mediator in any proceeding in which he is
acting as arbitrator, and all negotiations toward settlement must take
place w/o presence of the arbitrators.
Judicial Confirmation of Domestic Arbitral Award
Arbitral award by itself is valid. It needs no court approval for validy.
*However, in the event that the losing party refuses to comply
à need to obtain judicial confirmation
At any time after lapse of 30 days from receipt (*present rule under
SADR) by petitioner of the arbitral award, he may petition the court to
confirm the award. The petition for confirmation of a domestic arbitral
award may be filed with the RTC having jurisdiction
CASE: Romago, Inc. v Siemens Building Technologies, Inc. (2009)
Construction case.
Issue: WON there was jurisdiction on the part of the Arbitrator over the
dispute, and on the part of RTC to confirm the Arbitrator’s award.
Held: YES. Issue on jurisdiction rendered moot by ROMAGO’s active
participation in the proceedings before the PDRCI and the RTC. In filing
the petition for relief from judgement, ROMAGO recognized the PDRCI to
have jurisdiction. Certainly, the Arbitrator’s decision, which was confirmed
by the RTC, had attained finality when ROMAGO failed to interpose an
appeal to the CA. Hence, the decision may now be executed.
Petition for Confirmation or Motion for Confirmation?
Depends on whether a court case arising from the same arbitrable
dispute exists at the time of the issuance of the arbitral award.
- there is existing court case = motion for confirmation; if wala pa =
petition.
CASE: Asset Privatization Trust v CA
Case where petition for confirmation is the appropriate remedy.
Issue: WON trial court has jurisdiction to confirm the decision of the
arbitration committee.
Held: The order the RTC stated that the “complaint was dismissed.” By its
own action, the trial court had lost jurisdiction over the case. As there was
no pending action, the petition to confirm the arbitral award should have
been filed as a new case and raffled accordingly to one of the branches of
the RTC.
Effect of Judicial Confirmation of Arbitral Award
Rebaptizes and transforms it into a judgement of the court granting the
confirmation, and the court has the power to use its compulsory and
coercive processes, such as a writ of execution, in order to enforce the
arbitral award.
Correction or Modification of Domestic Arbitral Award
Any party may petition the court to correct a domestic arbitral award
within a period of not later than 30 days from receipt of the arbitral award.
Pet. may be filed with the RTC having jurisdiction.
Respondent may comment/opposition w/in 15 days; or file petition in
opposition. Pet. to have 15 days to file reply.
Vacation of Domestic Arbitral Award
Not later than 30 days from receipt of arbitral award.
a. Corruption/fraud/undue means
b. Evident partiality or corruption
c. Guilty of misconduct or any form of misbehaviour
d. 1/more arbitrators was disqualified and wilfully refrained from
disclosing such disqualifications
e. Tribunal exceeded its powers
f. Agreement did not exist or is invalid or unenforceable
g. Party is a minor or incompetent (judicially declared)
Court shall disregard any other ground than those enumerated above.
CASE: Adamson v CA (1994)
Evident partiality of arbitrators.
Issue: WON there was proof of evident partiality on part of arbitrators.
Held: NO. Petitioners failed to prove their allegations of partiality on the
part of the arbitrators. Proofs other than mere inferences are needed to
establish evident partiality. That they were disadvantaged by the decision
of the Arbitration Committee does not prove evident partiality.
*The award was vacated by the trial court not because of evident
partiality but because the latter interpreted the contract in a way which
was not favourable to the Adamson group and because it considered that
APAC, by submitting the controversy to arbitration, was seeking to
renege on its obligations under the contract.
Bayona Encarnacion
Under the case of Equitable PCI Banking Corporation v RCBC Capital
Corporation, it rules that: to justify the vacation of an arbitral award on
account of ‘manifest disregard of the law,’ the arbiter’s findings must
clearly and unequivocally violate an established legal precedent. Anything
less would not suffice.”
In the 1998 decision of Asset Privatization Trust case, it held that an
award must be vacated if it was made in “manifest disregard of law.”
Rule 11.4 of the SADR turned the four-item listing of the grounds in Sec
24 of RA 876 into a seven-item listing.
Contents of Petition to Vacate Domestic Arbitral Award
Petition must state—
a. Addresses and any change thereof
b. Jurisdictional issues raised during arbit proceedings
c. Grounds relied upon by the parties in seeking vacation of
award
d. Statement of date of receipt of award and circumstances
under which it was received by perition
Ff must also be attached---
a. Authentic copy of arbit agreement
b. Authentic copy of arbitral award
c. Certification against forum shopping executed by applicant
(Sec 5, Rule 7 of RoC)
d. Authentic copy or copies of appointment of arbitral tribunal
Jurisdiction Issue in a Petition to Vacate Domestic Arbitral Award
Judicial issue can be resurrected in a petition to vacate the arbitral
award.
Expressly recognized in Rule 3.11 of SADR (Judicial Relief BEFORE
Commencement of Arbitration)
Also expressly recognized in Rule 3.21 of SADR (AFTER)
Factual Issues in a Petition to Vacate Domestic Arbitral Award
Issues of fact must relate to the ground/s raised to support the application
to vacate the arbitral award. Cannot refer to those already resolved in the
arbitral award because the court has no authority to disturb the arbitral
tribunal’s determination of facts and/or interpretation of law.
Effect of Vacating Domestic Arbitral Award
In resolving petition to vacate domestic arbitral award, the court shall not
disturb the arbitral tribunal’s determination of facts and/or interpretation of
law.
In referring the case back to the arbitral tribunal or to a new arbitral
tribunal…the court may not direct it to revise its award in particular way
or to revise its findings or fact or conclusions or otherwise encroach upon
the independence of a tribunal.
Simultaneous Petitions for Confirmation, Correction/Modification and
Vacation of Domestic Arbitral Tribunal
A petition to confirm domestic arbitral award may be opposed in the
same action by a petition to vacate. Similarly, a petition to vacate may be
opposed in the same action by a petition to confirm. However, certain
periods must be observed.
First Case – Petition to Confirm opposed by Petition to Vacate
in one and the same action
The counter-petition to vacate must be filed not later
than 30 days from receipt of the award by the party
seeking to vacate the award.
 *if filed beyond reglementary period, shall be 3) GR: State reason upon which it is based
dismissed a. XPN: Unless parties have agreed 1) no reasons are to be
Second Case – Petition to Vacate opposed by Petition to given or award is 2) an AAAT
Confirm in one and the same action 4) Date and place of arbitrations as determined in accordance with
May be opposed in the same action by a petition, or Article 20 (1) of the Model Law and it shall be deemed to have been
counter-petition, to confirm the arbitral award at any made at that place.
time after the petition to vacate such arbitral award 5) Note: After award is made à copy signed by the arbitrators to be
is filed. delivered to each party.
*dismissal of pet to vacate for having filed beyond
reglementary period shall not result to dismissal of Termination of proceedings –
the pet for confirmation
Third Case – Petition to Correct as Part of Petition to Confirm
Arbitral proceedings are The mandate of the AT terminates
[or] to Vacate
terminated by (1) final award or with the termination of the arbitral
As part. When pet. to confirm is pending, pet to
(2) an order of the AT for the proceedings, subject to:
correct/modify shall be dismissed upon motion as a
termination of the arbitral
violation of forum-shopping. When pet to
proceedings, when:
correct/modify is pending also to be dismissed on
forum shopping. As alternative to the dismissal of
1) Claimant withdraws his claim 1) Further proceedings for the
the pet for confirmation, the court or courts may
(unless respondents objects and correction and interpretation of the
allow consolidation of the two in one court and in
the AT recognizes a legitimate arbitral award or for additional award;
once case.
interest on his part in obtaining a 2) Further proceedings for the
Fourth Case – Simultaneous Petitions to Confirm, Vacate, or
final settlement of the dispute); purpose of eliminating the grounds
Correct/Modify
2) The parties agree on the for setting aside the arbitral award;
Upon motion, court may order the consolidation of
termination of the proceedings;
the two cases before either court (if diff).
3) The arbitral tribunal finds that
the continuation of the
CHAPTER 9 – THE ARBITRAL AWARD IN INTERNATIONAL proceedings has for any other
COMMERCIAL ARBITRATION reason become unnecessary or
impossible.
Governing law for international commercial arbitration (ICA) in the Ph –
Pursuant to Sec. 19 of RA 9288, 1985 Model Law governs
Correction and interpretation of award; additional award –
Making of Award in international commercial arbit
GR: Designated law – (1) REQUEST- Within 30 days of receipt of the award (unless period
· Unless otherwise expressed, presumed to refer to State’s previously agreed upon), party can request the following:
substantive law, NOT its conflict of law rules.
· AT decides ex aequo et bono ("according to the right and CORRECTION INTERPRETATION
good" or "from equity and conscience") or as amiable compositeur only if
expressly authorized by parties
· In all cases, AT to decide according to 1) terms of contract and Party with notice to the other If agreed by parties, party with notice
2) usages of the trade applicable to the transaction party can request AT to correct to other party can request AT to give
in the award any 1) errors in interpretation of a specific point or
XPN: No designation – Arbit tribunal will apply law determined by the computation 2) clerical or part of the award.
conflict of laws rules, which it considers applicable typographical errors or 3) errors
of similar nature
AT decision, if more than 1 arbitrator –
· Majority of all members – any decision of the AT
(2) WITHIN 30 DAYS FROM RECEIPT OF REQUEST – AT to give C/I if
· 1 Presiding arbitrator – questions of procedure, if so authorized by
it considers request justified. The interpretation shall form part of the
the parties/all members of the AT
interpretation.
“Arbitral Award on Agreed Terms” (AAAT) – During the arbitral
Procedure in Petition for E&R and Petition to SA –
proceedings, if the parties settle the dispute, the AT shall terminate the
proceedings and, if 1) requested by the parties and 2) not objected by
the AT, record the settlement in the form of an AAAT. PETITION FOR PETITION TO SET ASIDE
· Same status an effect as award on the merits of the case ENFORCEMENT &
RECOGNITION OF
Form & content of award in ICA AA
1) In writing
2) Signed
a. 1 arbitrator – his signature
b. More then 1 – majority of all members of AT, provided
that the reason for any omitted signature is stated
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 Period Filed anytime from a. Filed within 3 months from the Attachments 1) Authentic copy of Same.
receipt of the time the petitioner receives a copy the arbit agreement
award. thereof. 2) Authentic copy of
the arbit award
b. If there is request for 3) A verification and
correction/interpretation/additional certification against
award, 3 months to be counted forum shopping
from time the petitioner receives executed by the
the resolution by the AT. applicant in
accordance with
Note: Time-barred Petition à will Section 4 and 5 of
NOT automatically result in Rule 7 of the Rules
approval of Counter-Petition for of Court
E/R. 4) Authentic copy of
the appointment of
Failure to file a Petition to Set an arbitral tribunal
Aside will preclude party from
raising grounds to resist Note: Petition shall
enforcement of the award. be verified by a
person who has
Opposition It may be opposed It may be opposed in the same personal knowledge
in the same proceeding by a Counter-Petition of the facts stated.
proceeding by a for Recognition and Enforcement
Counter-Petition to of the same award within period
Set Aside Arbitral for filing of an opposition.
Award, if not yet
time-barred.
Grounds There are 6 exclusive grounds to
Contents 1) Addresses of Same. set aside an arbitral award:
record of parties to 1) VALIDITY OF THE
arbitration ARBITRATION AGREEMENT –
2) Statement that the arbit agreement is not valid or
arbitration a party to arbit agreement suffers
agreement or from legal incapacity to enter arbit
submission exists agreement
3) Names of the 2) DUE PROCESS – party was not
arbitrators and given proper notice of the
proof of their appointment of an
appointment arbitrator/arbitral proceeding; or
4) Statement that unable to present his cacse
an arbit award was 3) JURISDICTIONAL
issued when the COMPLIANCE OF AWARD TO
petitioner received it AGREEMENT – arbit award deals
5) Relief sought with dispute not contemplated by
or not falling within the terms of
the submission or contains
matters beyond the scope of the
submission to arbit.
4) PROCEDURAL COMPLIANCE
W/ ARBIT AGREEMENT –
composition of arbitral
tribunal/conduct of arbit
proceedings not in accordance
with the agreement of the parties
5) ARBITRABILITY OF DISPUTE –
subject matter of the dispute not
capable of settlement by
arbitration under Ph law.
6) PUBLIC POLICY –
recognition/enforcement of award
is contrary to public policy

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If sufficient in Court to cause Same. · Suspend proceedings for a · Cannot direct it to revise award
form & notice and a copy of period of time determined by it to in a particular way/revise findings of
substance the petition will be give the AT an opportunity to fact or conclusions of laws/encroach
delivered to the take action to eliminate the upon the independence of an AT in
respondent grounds for setting aside the making of a final award.
directing filing of · When preliminary ruling of
Opposition/Counter- an AT affirming its jurisdiction
petition within 15 had been appealed by the party
days. Petitioner’s aggrieved by such preliminary
Reply may be filed ruling:
15 days from 1) Suspend the proceedings
receipt of the to set aside to await the ruling of
counter-petition. the court on such pending
appeal
If issue Parties required to Same. 2) In the alternative,
raised is one submit briefs of consolidate the proceedings to
of law legal arguments, set aside WITH the earlier appeal
not more than 15
days from receipt of
the order Judgment of the court –
· Court will not disturb AT’s determination of facts or interpretation of
If issue Not more than 15 Same. law
raised is one days from receipt of · Unless agreed upon in writing, same time that case is submitted to
of fact order à require court for decision à party praying for R/E/SA will submit a statement
parties to submit the under oath confirming costs. Prevailing party shall be entitled to an award
affidavits of of costs, including attorney’s fees.
witnesses w/
attached
documents in CHAPTER 10 – FOREIGN ARBITRAL AWARD
support of the
statements Concept of foreign arbitration under Ph law – FA is one made in a country
other than the Ph; one conducted in a country other than the Ph.
Within 10 days from
receipt of affidavits Adoption of the NY Convention in the Philippines –
à Reply Affidavits w/ · Governs the recognition and enforcement of foreign arbitral awards
attached in the Philippines. Enforced as a FAA not as a judgment of a foreign court;
documents in · Non-convention awards –
support of the A. May still be r/e on the grounds of comity and reciprocity.
statements B. If no comity and reciprocity, under Rule 39, Section 48 of the Rules
of Court
Oral hearings in this · Enforceable in the same manner as a final and executory decision of
case shall have a court of law in the Ph.
preference over
other cases before A contracting state under the NY Convention has the fundamental
the court, except obligation to recognize and enforce:
criminal cases. 1) Arbitration Agreement
2) Arbitral awards rendered in another contracting state

Presumption in favor of enforcement –

GR: An arbitral award is presumed made and released in due course and
Procedure for recognition and enforcement of foreign arbitral award –
is subject to enforcement by the court.
XPN: Unless the adverse party is able to establish a ground for setting
aside or not enforcing an arbitral award Venue RTC where:
1) The assets to be
When court is asked to SA an arbit award – attached/levied upon is located
2) The act to be enjoined is
Allowed Prohibited
being performed
3) In the principal place of
business in the Philippines of any of
the Parties
4) If any of the parties is an
individual, where any of those

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 individuals resides
5) In the National Capital
Judicial Region
Content 1) Addresses of the parties to
the arbitration
2) Country where the arbitral
award was made in the absence of
any indication in the award; and
whether the country is a signatory
to the New Your Convention
3) The relief sought
Attachments 1) Authentic copy of the arbit
agreement
2) Authentic copy of arbitral
award
Opposition 30 days from receipt of notice and
copy of petition à Opposition shall
be verified by a person who has
personal knowledge of the facts
stated
a. If sufficient in form & Court to cause notice and a copy of
substance the petition will be delivered to the
respondent directing filing of
Opposition/Counter-petition within
15 days. Petitioner’s Reply may be
filed 15 days from receipt of the
counter-petition.
b. If issue raised is one of law Parties required to submit briefs of
legal arguments, not more than 30
days from receipt of the order
c. If issue raised is one of fact Not less than 15 not more than 30
days from receipt of order à require
parties to submit the affidavits of
witnesses w/ attached documents
in support of the statements
Not less than 15 not more than 30
days from receipt of order granting
request à Reply Affidavits w/
attached documents in support of
the statements
Oral hearings in this case shall
have preference over other cases
before the court, except criminal
cases.
A foreign arbitral award is presumed to be subject to enforcement by the
court. In resolving the petition for recognition and enforcement of a
foreign arbitral award, the court is provided with 2 choices:
1) To recognize/enforce
2) To refuse to recognize/enforce
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GR: The court shall r/e a foreign arbit award – Decision of court r/e a
foreign arbit award is immediately executory.
XPN: Refuse
· Grounds:
A. THE PARTY MAKING THE APPLICATION TO REFUSE RECOGNITION
AND ENFORCEMENT OF THE AWARD FURNISHES PROOF THAT:
(i). 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
(ii). 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
(iii). 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
(iv). 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
(v). 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
B. THE COURT FINDS THAT:
(i). The subject-matter of the dispute is not capable of settlement or
resolution by arbitration under Philippine law; or
(ii). The recognition or enforcement of the award would be contrary to
public policy.
Note: Court may defer rendering a decision if an application for setting
aside/suspension of award has been made with a competent authority in
the country where award was made. Court may also require security.
Legal capacity of foreign corporation to sue for enforcement of foreign
arbitral award – not licensed to do business in the Philippines but collects
royalties from entities in the Philippines and filed a petition to enforce a
foreign arbitral award. The SC resolved in the affirmative.
Tuna Processing, Inc. vs. Philippine Kingford, Inc. – To resolve issue,
relied on municipal law (RA 9285) + but also declared that NY Convention
and the Model Law already form part of Philippine law.
Issue: Can a foreign corporation not licensed to do business in
the Philippines, but which collects royalties from entities in the
Philippines, sue here to enforce a foreign arbitral award?
Ruling: Section 42 of RA 9285 provides that the NY
Convention shall govern the r/e of arbitral awards covered by
said convention. Article V of the NY Convention provides the
 grounds to refuse recognition and enforcement of foreign
arbitral awards. Not one of these exclusive grounds touched
on the capacity to sue of the party seeking the
recognition/enforcement of the award.
Article V
1. Recognition and enforcement of the award may be refused,
at the request of the party against whom it is invoked, only if
that party furnishes to the competent authority where the
recognition and enforcement is sought, proof that:
(a) The parties to the agreement referred to in article
II were, under the law applicable to them, under
some incapacity, or the said agreement is not valid
under the law to which the parties have subjected it
or, failing any indication thereon, under the law of
the country where the award was made; or
(b) The party against whom the award is invoked
was not given proper notice of the appointment of
the arbitrator or of the arbitration proceedings or
was otherwise unable to present his case; or
(c) The award deals with a difference not
contemplated by or not falling within the terms of the
submission to arbitration, or it contains decisions on
matters beyond the scope of the submission to
arbitration, provided that, if the decisions on matters
submitted to arbitration can be separated from those
not so submitted, that part of the award which
contains decisions on matters submitted to
arbitration may be recognized and enforced; or
(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.
CHAPTER 11: MOTION FOR RECONSIDERATION, APPEAL AND
CERTIORARI
Remedies from Court Rulings
Rule 19.1 specifies the instances when a party may move for
MR of an RTC ruling related to arbitration.
Other remedies in Rule 19 – appeal and certiorari; CA
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*IMPT: Rule 19 – remedies from COURT rulings, NOT arbitral
tribunal.
Existence, Validity or Enforceability (EVE) of Arbitration Agreement and
Jurisdiction of Arbitral Tribunal
MR
1. Before commencement of arbitration + subject of court action
is EVE = NO MR if EVE upheld
2. “
“ = may be subject of MR if EVE rejected
3. After arbitration has commenced + ruled on a prelim question
upholding/declining its jurisdiction = may ask RTC to reconsider its
rulings that the arbit agreement is inexistent, invalid, or
unenforceable; may also ask RTC to reconsider its ruling
upholding/reversing the arbitral tribunal’s jurisidiction
Appeal
- Appeal to CA through pet. for review = allowed from a final
order of the RTC reversing the ruling of the arbitral tribunal
upholding its jurisdiction
- Other than that, any ruling on EVE not subject to appeal
Certiorari
- If characterized by lack or excess of jurisdiction, or grave
abuse of discretion amounting to lack or excess of discretion, and
there is no appeal or any plain, speedy, and adequate remedy in the
ordinary course of law.
- With CA
Referral to Arbitration
- Request to refer to arbitration denied by RTC = subject to
MR; no appeal; may be assailed through certiorari before CA
- Ruling referring to arbitration = NO MR/appeal/cert.;
immediately executory
Interim Measures of Protection
- Before constitution or arbit trib = court may grant
- After constitution = may be made with the court IF tribunal
has no power to act on the request/unable to act
- RTC order granting or denying = may be subject of MR;
appeal to CA from final order of RTC ok
o Certiorari – if with grave abuse, etc.
Appointment of Arbitrator
- Rule 6.1
- RTC Order appointing arbit = immediately executor; NO
MR/appeal/cert
- RTC Order denying= appeal to CA allowed
o Certiorari – if with grave abuse, etc.
Challenge to Appointment of Arbitrator
- When challenge not successful – aggrieved party may
request AA to rule on challenge
o May renew challenge in court if AA fails or
refuses to act
§ Any ruling of the court = immediately
executor; NO MR/appeal/cert
Termination of Mandate of Arbitrator
- If AA refuses or refuses to decide = any party may file with
court a petition to terminate the mandate of the arbitrator
- Any order of the court resolving the petition = immediately
executor; NO MR/appeal/cert
Assistance in Taking Evidence
- RTC Order granting assistance = immediately executor; NO
MR/appeal
- RTC Order declining= may file MR/appeal
 o Certiorari – if with grave abuse, etc.
Confidentiality/Protective Order
- RTC Order enjoining or refusing to enjoin a person from
divulging confidential information = may be subject of MR; appeal to
CA allowed
Domestic Arbitral Award
- RTC Order confirming, vacating or correcting domestic
arbitral award = may be the subject of MR
o Appeal to CA allowed
o Certiorari – if with grave abuse, etc
o SADR is silent if may ask RTC to reconsider its
ruling refusing to confirm/vacate/correct
o “There is reasonable basis to believe that an
order of the RTC refusing… may be subject of
an MR”
§ Not in list under Rule 19.1
International Commercial Arbitral Award
Where such award becomes the subject of a petition for
recognition and enforcement or a petition to set aside before
the RTC, the rule is that a party may ask the court to
reconsider its ruling on the ff:
l. Recognizing and/or enforcing, or dismissing a
petition to recognize and/or enforce an international
commercial arbitral award;
j. Setting aside an international commercial arbitral
award;
k. Dismissing the petition to set aside an
international commercial arbitral award, even if the
court does not recognize and/or enforce the same;
n. Adjourning or deferring a ruling on a petition to set
aside, recognize and/or enforce an international
commercial arbitral award;
i. Suspending the proceedings to set aside an
international commercial arbitral award and referring
the case back to the arbitral tribunal (in reference to
Rule 12.11)
The ff orders of the RTC are appealable to the CA through a
petition for review:
l. Recognizing and/or enforcing, or dismissing a
petition to recognize and/or enforce an international
commercial arbitral award;
j. Setting aside an international commercial arbitral
award;
k. Dismissing the petition to set aside an
international commercial arbitral award, even if the
court does not recognize and/or enforce the same;
The ff may be subject of certiorari before CA:
i. Suspending the proceedings to set aside an
international commercial arbitral award and referring
the case back to the arbitral tribunal
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n. Adjourning or deferring a ruling on a petition to set
aside, recognize and/or enforce an international
commercial arbitral award;
Allowing a party to enforce an international
commercial arbitral award pending appeal
(Rule 19.26)
Foreign Arbitral Award
- RTC ruling recognizing/enforcing/refusing recognition - may
be subject of MR; appeal able to CA
o If RTC Allows party to enforce foreign arbitral
award pending appeal and court acted…
Certiorari – if with grave abuse, etc.
Procedure in Filing and Resolving Motion for Reconsideration
pp. 251-2 (recap)
No party shall be allowed a second MR.
General Provisions on Appeal and Certiorari
- Precluded from filing an appeal or a petitioner for cert
questioning the merits of an arbitral award
- General rule – court can only vacate/set aside upon a clear
showing that award suffers from any of the infirmities or grounds for
vacating an arbitral award in a domestic arbit under Sec. 24, RA
876, or for setting aside an award in an international arbitration
under Art. 34, Model Law, or for other grounds under SADR.
o If ground not in SADR, court shall entertain only
if amounts to a violation of public policy
- Appeal to the CA only allowed from final orders of the RTC:
(Rule 19.12)
a. Granting or denying an interim measure of
protection;
b. Denying a petition for appointment of an
arbitrator;
c. Denying a petition for assistance in taking
evidence;
d. Enjoining or refusing to enjoin a person from
divulging confidential information;
e. Confirming, vacating or correcting/modifying a
domestic arbitral award;
f. Setting aside an international commercial
arbitration award;
g. Dismissing the petition to set aside an
international commercial arbitration award even if
the court does not decide to recognize or enforce
such award
h. Recognizing and/or enforcing an international
commercial arbitration award;
i. Dismissing a petition to enforce an international
commercial arbitration award;
j. Recognizing and/or enforcing a foreign arbitral
award;
k. Refusing recognition and/or enforcement of a
foreign arbitral award;
l. Granting or dismissing a petition to enforce a
deposited mediated settlement agreement; and
m. Reversing the ruling of the arbitral tribunal
upholding its jurisdiction.
- Certiorari upon grave abuse (etc) (Rule 19.26)
 a. Holding that the arbitration agreement is
inexistent, invalid or unenforceable;
b. Reversing the arbitral tribunal’s preliminary
determination upholding its jurisdiction;
c. Denying the request to refer the dispute to
arbitration;
d. Granting or refusing an interim relief;
e. Denying a petition for the appointment of an
arbitrator;
f. Confirming, vacating or correcting a domestic
arbitral award;
g. Suspending the proceedings to set aside an
international commercial arbitral award and referring
the case back to the arbitral tribunal;
h. Allowing a party to enforce an international
commercial arbitral award pending appeal;
i. Adjourning or deferring a ruling on whether to set
aside, recognize and or enforce an international
commercial arbitral award;
j. Allowing a party to enforce a foreign arbitral award
pending appeal; and
k. Denying a petition for assistance in taking
evidence.
CASE: Cargill Philippines Inc v San Fernando Regala Trading Inc (2011)
Supra
Issue: WON SCA for cert is a proper remedy against refusal of a trial
court to refer a dispute to arbitration
Held: YES. Since there is no plain, speedy, and adequate remedy in the
ordinary course of law, Cargill’s resort to a petition for cert is the proper
remedy.
*Present Rule: Where the remedies of appeal and certiorari are
specifically made available to a party under the SADR, recourse to one
shall preclude recourse to the other.
Procedure and Effect of Appeal
Rule 19.16
Subject of Appeal Restricted in Certain Instance
If decision refusing…is premised on a finding of fact, CA may only inquire
only to determine the existence or non-existence of the specific ground.
Can’t substitute court’s judgement.
Procedure in Filing a Special Civil Action for Certiorari
With CTC; arbitral tribunal only a nominal party (not required to submit
pleadings or written submissions)
Arbitration may Continue Despite Petition for Certiorari
Rule 19.32
Action of the Court of Appeals in Certiorari Proceedings
Dismiss petition if not accompanied by required annexes/attachments, or
fails to pay fees, or filed out of timel or not appear to be prima facie
meritorious
During pendency, shall not prohibit or enjoin commencement of
arbitration or continuation
Appeal by Certiorari to the Supreme Court
Only questions of law, which must be distinctly set forth.
Not a matter of right but of sound judicial discretion.
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Time for Filing SC Petition and other Requirements
Within 15 days from notice of judgement or final order or resolution
appealed from or the denial of petitioner’s MNT/MR filed in due time after
notice of judgement.
Contents of Petition
Rule 19.40. Contents of petition. -
The petition shall be filed in eighteen (18) copies, with the original copy
intended for the court being indicated as such by the petitioner, and shall
(a) state the full name of the appealing party as the petitioner
and the adverse party as respondent, without impleading the
lower courts or judges thereof either as petitioners or
respondents;
(b) indicate the material dates showing when notice of the
judgment or final order or resolution subject thereof was
received, when a motion for new trial or reconsideration, if any,
was filed and when notice of the denial thereof was received;
(c) set forth concisely a statement of the matters involved, and
the reasons or arguments relied on for the allowance of the
petition;
(d) be accompanied by a clearly legible duplicate original, or a
certified true copy of the judgment or final order or resolution
certified by the clerk of court of the court a quo and the
requisite number of plain copies thereof, and such material
portions of the record as would support the petition; and
(e) contain a sworn certification against forum shopping.
Court Action on Petition
Failure to comply with any of the req = ground for dismissal
IF pet is given due course, the SC may require the elevation of the
complete record of the case or specified parts thereof within 15 days
from notice.
CHAPTER 12: CONSTRUCTION ARBITRATION
Creation of Construction Industry Arbitration Commission
EO 1008, series of 1985
To maintain and promote a healthy partnership bet the govt and the
private sector in the furtherance of natl devt goals
Jurisdiction of CIAC
Original and exclusive jurisdiction over disputes [on] construction in the
PH –whether dispute arises before/after the completion of the contract, or
after the abandonment or breach thereof.
- may involve govt or private contracts
- for Board to acquire jur = parties must agree to submit to
voluntary arbitration
- Fort Bonifacio Development Corp v Domingo –
“Construction” :on-site works on bldgs, land clearance, etc.
Two req for CIAC to have jurisdiction over a construction dispute:
1. Construction contract involves a construction in
the PH, and
2. The parties to the construction contract are bound
by an arbitration agreement, directly or by reference
Excluded: disputes arising from EER
Jurisdiction may also be asserted against the surety company that issues
the performance bond in construction projects. Prudential Guarantee and
Assurance, Inc. v ANSCOR Land, Inc: Although not the construction
contract itself, the performance bond is deemed an associate of the main
construction contract that it cannot be separatied or severed from its
principal.
CIAC arbitrators also have jurisdiction to grant interim measures of
protection
Court to Dismiss Case Involving Construction Dispute
Difference between construction disputes filed in court vis-à-vis arbitrable
non-construction disputes.
The court may, however, issue an order directing the inclusion in
arbitration of those parties who are bound by the arbitration agreement
directly or by reference thereto pursuant to Section 34 of Republic Act
No. 9285.
Furthermore, the court shall issue an order directing the case to proceed
with respect to the parties not bound by the arbitration agreement.

Arbitrable construction disputes Arbitrable non-construction

Court Confirmation of CIAC Award Not Required
disputes
On the other hand, non-CIAC arbitral award will need judicial confirmation
in order to enforce it.
Court has power to refer the May be referred only upon request
dispute motu proprio to CIAC of a least one party
May other arbitral bodies, aside from CIAC, take cognizance of
arbitration
construction arbitration disputes?
When referred to CIAC, court Court action merely stayed Parties automatically given an alternative forum –the CIAC
action dismissed
CASE: China Chang Jiang Energy Corporation (PH) v Rosal
Infrastructure Builders (1996)
Issue: WON the CIAC has jurisdiction over the dispute, given that the
The Demarcation Line Between Court and CIAC parties agreed to submit disputes arising thereform to arbitration before
the International Chamber of Commerce.
Held: Parties may continue to stipulate as regards their preferred forum in
case of voluntary arbitration, but in so doing, may not divest the CIAC of
Court Procedure in Referring to CIAC jurisdiction as provided by law.
*Was reiterated in National Irrigation Adminstration v CA
Request for dismissal of civil action and referral to arbitration – through a
verified motion; shall contain: *First to file rule: The contracting party which is first to file a request for
(1) Statement showing that the dispute is a construction dispute arbitration gets the opportunity to determine which arbitral institution will
(2) Accompanied by proof of the existence of the arbitration take cognizance of the arbitration
agreement
*IF alredy part of the record, need not be submitted to court CIAC Jurisdiction May Not be Subjected to Any Condition
provided cited in the motion (motion will also have notice of CASE: HUTAMA-RSEA Joint Operations Inc v Citra Metro Manila
hearing) Tollways Corporation (2009)
*IF other parties fail to file their opposition on or before day of Issue: Is prior resort by the parties to DAB a condition precendent for the
hearing, court shall motu proprio resolve the motion CIAC to assume jurisdiction?
*All doubts – resolved in favour of the existence of a Held: This condition precedent should not deprive CIAC of its jurisdiction
construction dispute and the arbitration agreement over the dispute. To affirm a condition…would be in conflict with the
recognized intention of the law…
Multiple Actions and Parties
What is the Remedy Against a CIAC Arbitral Award?
Rule 17.7. Multiple actions and parties. - The court shall not decline to Current practice – appeal by filing a petition for review with the CA (Sec.
dismiss the civil action and make a referral to arbitration by CIAC for any 1, Rule 43)
of the following reasons: In 2009 – SADR took effect. Rule 19.7 outlawed appeal or certiorari as
remedies against the merits of the award
a. Not all of the disputes subject of the civil action may be Does Rule 19.7 apply to CIAC arbitral awards?
referred to arbitration; ...Unless a more straightforward case is brought to the attention of the
SC to resolve the issue—what is the remedy against a CIAC arbitral
b. Not all of the parties to the civil action are bound by the award – the latest case on the matter, F.F. Cruz & Co. Inc. v HR
arbitration agreement and referral to arbitration would result in Construction Corp. leans towards a petition to vacate as that available
multiplicity of suits; remedy, which indirectly suggests the application of Rule 19.6 of the
SADR even to CIAC arbitral awards, providing that “a party to an
c. The issues raised in the civil action could be speedily and arbitration is precluded from filing an appeal or a petition for certiorari
efficiently resolved in its entirety by the Court rather than in questioning the merits of an arbitral award.”
arbitration;

d. Referral to arbitration does not appear to be the most

prudent action; or

e. Dismissal of the civil action would prejudice the rights of the

parties to the civil action who are not bound by the arbitration
agreement.

Bayona Encarnacion