2014 BAR POINTERS

IN ALTERNATIVE DISPUTE RESOLUTION II. RELEVANT CONCEPTS/SUBJECTS.

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

Art. 2029. The court shall endeavor to persuade the 3. PRIVATE LITIGATION DISTINGUISHED FROM PUBLIC LITIGATION.
litigants in a civil case to agree upon some fair compromise.
3.1. In Private Litigation:
Art. 2030. Every civil action or proceeding shall be 3.1.1. There is private-party autonomy in the resolution of disputes or
suspended: the freedom of the parties to make their own arrangements to resolve their
(1) If willingness to discuss a possible compromise is disputes;
expressed by one or both parties; or 3.1.2. Neutral third party participates to assist in the resolution of
(2) If it appears that one of the parties, before the issues, which includes arbitration, mediation, conciliation, early neutral
commencement of the action or proceeding, offered to discuss a evaluation, mini-trial, or any combination thereof;
possible compromise but the other party refused the offer. 3.1.3. Parties have the freedom to choose either accredited or non-
The duration and terms of the suspension of the civil accredited to act as arbitrator, mediator, conciliator, neutral party
action or proceeding and similar matters shall be governed by evaluator;
such provisions of the rules of court as the Supreme Court shall 3.1.4. Voluntary dispute resolution;
promulgate. Said rules of court shall likewise provide for the 3.2. In Public Litigation:
appointment and duties of amicable compounders. 3.2.1. Disputes are resolved pursuant to the application or
interpretation of laws and rules of procedure;
Art. 2042. The same persons who may enter into a 3.2.2. Adjudication of a presiding judge of a court or an officer of a
compromise may submit their controversies to one or more government agency;
arbitrators for decision. 3.2.3. Parties do not choose the adjudicator or hearing officer;
3.2.4. Parties are subjected to the operative force (i.e. jurisdiction,
2. PERTINENT SPECIAL LAWS/RULES: compulsory processes, etc.) of the court or government agency;
2.1. R.A. No. 876 – THE ARBITRATION LAW
2.2. E.O. No. 1008 – CONSTRUCTION INDUSTRY ARBITRATION LAW 4. MODES OF ADR.
2.3. CIAC REVISED RULES OF PROCEDURE GOVERNING CONSTRUCTION 4.1. Arbitration
ARBITRATION, AS AMENDED 4.2. Mediation
2.4. R.A. No. 9285 – ALTERNATIVE DISPUTE RESOLUTION ACT OF 2004 4.3. Conciliation
2.5. A.M. No. 07-11-08-SC - SPECIAL RULES OF COURT ON ALTERNATIVE 4.4. Negotiation
DISPUTE RESOLUTION 4.5. Neutral Early Evaluation/Mini-Trial
2.6. DOJ DEPARTMENT CIRCULAR NO. 98 - IMPLEMENTING RULES AND
REGULATIONS OF THE ALTERNATIVE DISPUTE RESOLUTION ACT OF 2004. 5. JUDICIAL DISPUTE RESOLUTION DISTINGUISHED FROM ARBITRATION.
2.7. “NEW YORK CONVENTION” - CONVENTION ON THE RECOGNITION AND 5.1. In JDR:
ENFORCEMENT OF FOREIGN ARBITRAL AWARDS adopted by the UNITED NATIONS on 5.1.1. The framework is based on the processes
10 JUNE 1958, ratified by the Philippine Senate under SENATE RESOLUTION No. 71. of mediation, conciliation or early neutral evaluation which entails the
2.8. “MODEL LAW” - MODEL LAW ON INTERNATIONAL COMMERCIAL submission of a dispute before a "JDR judge" who shall merely "facilitate
ARBITRATION, adopted by the UNITED NATIONS COMMISSION ON INTERNATIONAL settlement" between the parties in conflict or make a "non-binding
TRADE LAW (UNCITRAL) on 21 JUNE 1985. evaluation or assessment of the chances of each party's case."
 5.1.2. The JDR judge lacks the authority to 2. Courts shall not refuse to refer parties to arbitration for reasons including, but not limited to,
render a resolution of the dispute that is binding upon the parties in the following:
conflict. 2.1. The referral tends to oust a court of its jurisdiction;
5.2. In Arbitration: 2.2. The court is in a better position to resolve the dispute subject of arbitration;
5.2.1. The dispute is submitted to an arbitrator, who is a neutral third 2.3. The referral would result in multiplicity of suits;
person or a group of thereof; 2.4. The arbitration proceeding has not commenced;
5.2.2. An Arbitrator or Arbitral Tribunal shall have the authority to 2.5. The place of arbitration is in a foreign country;
render a resolution binding upon the parties. 2.6. One or more of the issues are legal and one or more of the arbitrators are
not lawyers;
6. “CHOICE OF LAW” AND “CHOICE OF PROCEDURE”. 2.7. One or more of the arbitrators are not Philippine nationals; or
6.1. Freedom to Adopt Procedures to Resolve or Settle their Controversies. 2.8. One or more of the arbitrators are alleged not to possess the required
6.2. Whenever the parties agree to submit their dispute to mediation by an qualification under the arbitration agreement or law.
institution it is deemed to include the agreement to be bound by the institutional rules
of such body. 3. Where court intervention is allowed under ADR Laws or the Special ADR Rules, courts shall not
6.3. An agreement to submit a dispute to mediation by any institution shall refuse to grant relief for any of the following reasons:
include an agreement to be bound by the internal mediation and administrative 3.1. Prior to the constitution of the arbitral tribunal, the court finds that the
policies of such institution. Further, an agreement to submit a dispute to mediation principal action is the subject of an arbitration agreement; or
under international mediation rule shall be deemed to include an agreement to have 3.2. The principal action is already pending before an arbitral tribunal.
such rules govern the mediation of the dispute and for the mediator, the parties, their
respective counsel, and nonparty participants to abide by such rules. 4. The Special ADR Rules recognize the principle of competence-competence - which means that
In case of conflict between the institutional mediation rules and the provisions of this the arbitral tribunal may initially rule on its own jurisdiction, including any objections with
Act, the latter shall prevail. (Sec. 16) respect to the existence or validity of the arbitration agreement or any condition precedent to
the filing of a request for arbitration.
7. EXCLUSIONS IN ADR.
7.1. Labor disputes covered by Presidential Decree No. 442, otherwise known as 5. The Special ADR Rules recognize the principle of separability of the arbitration clause - which
the Labor Code of the Philippines, as amended and its Implementing Rules and means that said clause shall be treated as an agreement independent of the other terms of the
Regulations; contract of which it forms part. A decision that the contract is null and void shall not entail ipso
7.2. Civil status of persons; jure the invalidity of the arbitration clause.
7.3. Validity of a marriage;
7.4. Any ground for legal separation; 6. Judicial restraint. In resolving the petition, the court must exercise judicial restraint in
7.5. Jurisdiction of courts; accordance with the policy set forth in Rule 2.4 deferring to the competence or jurisdiction of
7.6. Future legitime; the arbitral tribunal to rule on its competence of jurisdiction.
7.7. Criminal liability;
7.8. And those which by law cannot be compromised. (Sec. 6, R.A. No. 9285) IV. ARBITRATION AGREEMENT.

8. SOME ADR PROVIDERS. 1. FORMS:

8.1. Some Institutional Providers: 1.1. Arbitral Agreement or Clause;
8.1.1. CIAC (Construction Industry Arbitration Commission) 1.2. Submission Agreement;
8.1.2. PDRCI (Philippine Dispute Resolution, Inc.)
8.1.3. ICC (International Chamber of Commerce) 2. ARBITRAL AGREEMENT OR CLAUSE DISTINGUISHED FROM SUBMISSION.
8.1.4. SIAC (Singapore International Arbitration Center) 2.1. Arbitral Agreement or Clause (Pre-causal consent) – the parties to any
8.1.5. HKIAC (Hong Kong International Arbitration Center) contract agree in such contract to settle by arbitration a controversy thereafter arising
8.2. Ad Hoc: between them.
8.2.1. Parties have not identified their procedural rules that shall 2.2. Submission Agreement (Present causal consent) – no pre-existing
govern their arbitral proceedings; arbitration agreement, but parties subsequently agree to submit to arbitration any
8.2.2. Parties determine their own procedural rules as they undergo controversy existing between them at the time of the submission and which may be
arbitration; the subject of an action.

III. POLICIES (Rule 2.2. Special ADR Rules; Note: KOPPEL CASE). V. ARBITRATION LAW (under R.A. No. 876).
1. PRELLIMINARY PROCEDURE:
1. Arbitration agreement is the law between the parties and that they are expected to abide by it 1.1. IN CASE OF ARBITRAL AGREEMENT/CLAUSE:
in good faith 1.1.1. Demand/request for arbitration; (Not applicable in controversies
covered by CIAC)
1.1.2. Statement of the nature of the controversy;
 1.1.3. Amount involved, if applicable; 4.1.6. Has any personal bias, which might prejudice the right of any
1.1.4. Relief sought; party to a fair and impartial award;
1.1.5. Attached true copy of the contract providing the arbitration;
1.1.6. Demand shall be served in person or registered mail;
1.1.7. Should the contract provides for the appointment of single 4.2. No party shall select as an arbitrator any person to act as his champion or to
arbitrator: advocate his cause.
a. Indicate the time and date within which the parties shall agree upon such
arbitrator;
1.1.8. Should the contract provides for the appointment of three 4.3. If, after appointment but before or during hearing, a person appointed to
arbitrators: serve as an arbitrator shall discover any circumstances likely to create a presumption
a. Indicate the name of the arbitrator appointed; of bias, or which he believes might disqualify him as an impartial arbitrator, the
b. Require the other party within 15 days from notice/receipt to make an arbitrator shall immediately disclose such information to the parties. Thereafter the
advice in writing the name of the person appointed by the second party; parties may agree in writing:
1.2. The 2 arbitrators appointed must agree on the third arbitrator within 10 days from the
4.3.1. to waive the presumptive disqualifying
date of such notice;
circumstances; or
1.3. In case of default by the other party in answering the demand, aggrieved party may
file, through a verified petition, with the RTC having jurisdiction of the parties: 4.3.2. to declare the office of such arbitrator vacant. Any
1.3.1. A copy of the demand/request for arbitration; such vacancy shall be filled in the same manner as the original
1.3.2. A statement that an original demand was sent and which set appointment was made. (Sec. 10, R.A. No. 876)
forth:
a. The nature of the action; 5. CHALLENGE OF ARBITRATOR(S).
b. Amount involved, if applicable;
c. Relief sought; 5.1. The arbitrators may be challenged only for the reasons mentioned in Sec 10, R.A. No.
d. Attached true copy of the contract providing for arbitration; 876 which may have arisen after the arbitration agreement or were unknown at the
time of arbitration.
2. SAME PROCEDURE TO BE FOLLOWED IN SUBMISSION AGREEMENTS. The challenge shall be made before them.
3. HEARING BY COURT IN CASE OF FAILURE, NEGLECT OR REFUSAL TO ARBITRATE. If they do not yield to the challenge, the challenging party may renew the challenge
3.1. File an application by way of a verified petition with the RTC for an order directing that before the RTC of the province or city in which the challenged arbitrator, or, any of
such arbitration to proceed in the manner provided in the agreement; them, if there be more than one, resides. While the challenging incident is
3.2. Notice to the defaulting party; discussed before the court, the hearing on arbitration shall be suspended, and it
3.3. RTC shall summarily hear the parties: shall be continued immediately after the court has delivered an order on the
3.3.1. If the RTC is satisfied that the making of the agreement or such challenging incident. (Sec.11, R.A. No. 876)
failure to comply therewith is not in issue, it shall issue an order directing
the parties to proceed to proceed to arbitration in accordance with the
terms of the agreement; 5.2. GROUNDS FOR CHALLENGE (Under the Model Law)
3.3.2. If the making of the agreement or default be in issue, the RTC
5.2.1. When the person is approached in connection with a possible
shall proceed to summarily hear such issue;
appointment as an arbitrator, he shall disclose any circumstances likely to
3.4. Should it be found that there is no agreement or no default, the proceeding shall be
give rise to justifiable doubts as to his impartiality or independence. An
dismissed;
arbitrator from the time of his appointment and throughout the arbitral
3.5. Should it be found that there was written provision for arbitration was made or there
proceedings, shall without delay disclose any such circumstances to the
is a default in proceeding thereunder, the RTC shall direct the parties to proceed with
parties unless they have already been informed of them by him.
the arbitration in accordance with the terms thereof;
5.2.2. An arbitrator may be challenged only if circumstances exist that
4. ARBITRATOR(S). give rise to justifiable doubts as to his impartiality or independence, or if he
4.1. QUALIFICATIONS: does not possess qualifications agreed to by the parties. A party may
4.1.1. Must be of legal age; challenge an arbitrator appointed by him, or in whose appointment he has
4.1.2. In full-enjoyment of his civil rights; participated, only for reasons of which he becomes aware after the
4.1.3. Knows how to read and write; appointment has been made.
4.1.4. Not related by blood or marriage within the sixth degree to
either party to the controversy;
4.1.5. No financial, fiduciary or other interest in the controversy or 5.3. CHALLENGE PROCEDURE. (Under the Model Law)
cause to be decided or in the result of the proceeding, or
 5.3.1. The parties are free to agree on a procedure for challenging an The order may modify and correct the award so as to effect the intent
arbitrator, subject to the provisions of paragraph (3) of thia article. thereof and promote justice between the parties. (Sec. 25, R.A. 876)
5.3.2. Failing such agreement, a party who intends to challenge an
arbitrator shall, within 15 days after becoming aware of the constitution of
VI. SPECIAL RULES OF COURT ON ALTERNATIVE DISPUTE RESOLUTION (A.M. No. 07-11-
the arbitral tribunal or after becoming aware of any circumstance referred
08-SC)
to in article 12.2., send a written statement of the reasons for the challenge
to the arbitral tribunal. Unless the challenged arbitrator withdraws from his
1. All proceedings under the Special Rules on ADR are special proceedings.
office or the other party agrees to the challenge, the arbitral tribunal shall
decide on the challenge.
2. Proceedings are conducted summarily in certain cases.
5.3.3. If a challenge under any procedure agreed upon by the parties
or the procedure of paragraph (2) of this article is not successful, the 3. In cases covered by the Special ADR Rules no summons is issued, a court acquires authority to
challenging party may request, within 30 day after having received notice of act on the petition or motion upon proof of jurisdictional facts, i.e., that the respondent was
the decision rejecting the challenge, the court or other authority specified furnished a copy of the verified petition and the notice of hearing. (Rule 1.9.)
in article 6 to decide on the challenge, which decision shall be subject to no 3.1. Prior service is jurisdictional and material to satisfy the requirement of due process.
appeal; while such a request is pending, the arbitral tribunal, including the
challenge arbitrator, may continue the arbitral proceedings and make an 4. SERVICE AND FILING OF PETITIONS IN SUMMARY PROCEEDINGS.
award.
4.1. Before filing in court, service of the verified petition coupled by a notice of hearing unto
the respondent through:
6. VACATING AN ARBITRAL AWARD. 4.1.1. Personal service, proven by an affidavit of the server;
4.1.2. Registered mail, shown by the signed courier proof of delivery
6.1. GROUNDS:
(postal registry return cards);
6.1.1. The award was procured by corruption, fraud, or other undue 4.1.3. Private courier, proven by an affidavit executed by the
means; or responsible officer of the private courier service showing the transmittal; or
by the signed courier proof of delivery.
6.1.2. That there was evident partiality or corruption in the arbitrators 4.1.4. In case of refusal or failure, by an affidavit of the server stating
or any of them; or the facts and circumstances of refusal or failure to receive. (Rule 1.9.)
6.1.3. That the arbitrators were guilty of misconduct in refusing to
postpone the hearing upon sufficient cause shown, or in refusing to hear 4.2. VERIFICATION AND SUBMISSIONS.
evidence pertinent and material to the controversy; 4.2.1. Need to be Verified:
a. Any pleading, motion, opposition, comment, defense or claim.
6.1.4. That one or more of the arbitrators was disqualified to act as b. Attached legal brief of counsel which state the pertinent facts, legal
such under section 9 of R.A. No. 876, and willfully refrained from disclosing arguments in support of a party’s position in the case, applicable laws
such disqualifications or of any other misbehavior by which the rights of and jurisprudence.
any party have been materially prejudiced; or c. All initiatory pleadings must contain a certification against forum
6.1.5. That the arbitrators exceeded their powers, or so imperfectly shopping.
executed them, that a mutual, final and definite award upon the subject
matter submitted to them was not made. (Sec. 24, R.A. No. 876) 4.3. PROHIBITED SUBMISSIONS:
4.3.1. Motion to dismiss
4.3.2. Motion for bill of particulars
7. MODIFYING OR CORRECTING AN ARBITRAL AWARD. 4.3.3. Motion for new trial or for reopening of trial
7.1. GROUNDS: 4.3.4. Petition for relief from judgment
7.1.1. Where there was an evident miscalculation of figures, or an 4.3.5. Motion for extension, except in cases where an ex-parte
evident mistake in the description of any person, thing or property referred temporary order of protection has been issued
to in the award; or 4.3.6. Rejoinder to reply
7.1.2. Where the arbitrators have awarded upon a matter not 4.3.7. Motion to declare a party in default; and
submitted to them, not affecting the merits of the decision upon the matter 4.3.8. Any other pleading specifically disallowed under any provision of
submitted; or the Special ADR Rules.
7.1.3. Where the award is imperfect in a matter of form not affecting
the merits of the controversy, and if it had been a commissioner's report, 5. SERVICE AND FILING OF PLEADINGS, MOTIONS AND OTHER PAPERS IN NON-SUMMARY
the defect could have been amended or disregarded by the court. (Regular) PROCEEDINGS.
5.1. Initiatory pleadings filed with the court;
 5.2. Court shall cause the service of the initiatory pleading/petition upon the respondent 6.5. WHEN TO MAKE REQUEST FOR ARBITRATION BEFORE THE RTC.
through: 6.5.1. FORM
5.2.1. Personal service; a. Motion
5.2.2. Registered postal mail; b. With notice of hearing
5.2.3. Private courier; 6.5.2. Should there be an existing arbitration agreement:
5.2.4. Electronic mail, as agreed upon by parties and approved by the a. Before pre-trial, by either party;
court. b. After pre-trial, by way of agreement by the parties;
6.5.3. In case of submission agreement:
5.3. All subsequent pleadings must be priorly served and then filed with the court. a. At any stage of the proceedings.

6. JUDICIAL RELIEF ON THE ISSUE OF EXISTENCE, VALIDITY, OR ENFORCEABILITY OF THE 6.6. An order referring the dispute to arbitration shall be immediately executory and shall not
ARBITRATION AGREEMENT (PRELIMINARY QUESTIONS). be subject to a motion for reconsideration, appeal or petition for certiorari.
6.7. An order denying the request to refer the dispute to arbitration shall not be subject to an
6.1. JUDICIAL BEFORE THE COMENCEMENT OF ARBITRATION. appeal (because it is interlocutory), but may be the subject of a motion for reconsideration
6.1.1. Service of verified petition upon the respondent. and/or a petition for certiorari.
6.1.2. Filing of verified petition with certification against forum
shopping before the RTC. 7. MULTIPLE ACTIONS AND PARTIES.
6.1.3. Respondent has 15 days from notice to take a comment/ 7.1. Court shall not decline to refer some or all of the parties to arbitration for any of the
opposition. following reasons:
6.1.4. RTC must exercise judicial restraint conformably with the policy 7.1.1. Not all of the disputes subject of the civil action may be referred
on competence-competence principle. to arbitration;
6.1.5. Arbitral proceedings may nevertheless commenced and render 7.1.2. Not all of the parties to the civil action are bound by the
an arbitral award despite pendency of judicial relief. arbitration agreement and referral to arbitration would result in multiplicity
6.1.6. RTC prima facie determination upholding the existence, validity of suits;
or validity of arbitration agreement is not subject to motion for 7.1.3. The issues raised in the civil action could be speedily and
reconsideration, appeal or certiorari. efficiently resolved in its entirety by the court rather than in arbitration;
a. But same issue(s) may still be raised before the arbitral tribunal; 7.1.4. Referral to arbitration does not appear to be the most prudent
b. Or in a latter action to vacate or set aside the arbitral award. action; or
7.1.5. The stay of the action would prejudice the rights of the parties
6.2. JUDICIAL RELIEF AFTER THE COMENCEMENT OF ARBITRATION. to the civil action who are not bound by the arbitration agreement.
7.2. The court may, however, issue an order directing the inclusion in arbitration of those
6.2.1. Within 30 days from notice, file a verified petition (with parties who are not bound by the arbitration agreement but who agree to such inclusion
certification against forum shopping) assailing the ruling of the arbitral provided those originally bound by it do not object to their inclusion. (Rule 4.7.)
tribunal on the preliminary question upholding or declining its jurisdiction.
6.2.2. Respondent has 15 days from notice to take a 8. INTERIM MEASURES OF PROTECTION.
comment/opposition.
6.2.3. Arbitration proceedings shall continue and render its award 8.1. When to file petition before the RTC:
thereon. 8.1.1. Before arbitration is commenced;
6.2.4. No court may enjoin the arbitration proceedings pending the 8.1.2. After arbitration is commenced, but before the constitution of
petition in court. the arbitral tribunal;
8.1.3. After the constitution of the arbitral tribunal and at any time
6.3. RELIEFS FROM A COURT ACTION: during arbitral proceedings but, at this stage, only to the extent that the
6.3.1. Motion for reconsideration; arbitral tribunal has no power to act or is unable to act effectively.
6.3.2. But not subject to appeal;
6.3.3. A ruling by the court affirming the jurisdiction of the arbitral 8.2. GROUNDS FOR ITS ALLOWANCE (NON-EXCLUSIVE):
tribunal shall not be subject to petition for certiorari (under Rule 65). 8.2.1. Need to prevent irreparable loss or injury;
6.3.4. A ruling by the court denying the jurisdiction of the arbitral 8.2.2. Need to provide security for the performance of any obligation;
tribunal may be the subject of petition for certiorari (under Rule 65). 8.2.3. Need to produce or preserve evidence; or
8.2.4. Need to compel any other appropriate act or omission.
6.4. ABITRAL TRIBUNAL DEFERING TO RESOLVE THE ISSUE OF ITS JURISDICTION.
6.4.1. A ruling by the arbitral tribunal deferring resolution on the issue 8.3. TYPES OF INTERIM MEASURES THAT MAY BE GRANTED:
of its jurisdiction until final award is not subject to a motion for 8.3.1. Preliminary injunction;
reconsideration, appeal or a petition for certiorari. 8.3.2. Preliminary attachment or garnishment;
8.3.3. Appointment of a receiver;
 8.3.4. Detention, preservation, delivery or inspection of property; or, 11.1.2. A party, a mediator, or a non-party participant may refuse to
8.3.5. Assistance in the enforcement of an interim measure of disclose and may prevent any other person from disclosing a mediation
protection granted by the arbitral tribunal, which the latter cannot enforce communication.
effectively. 11.1.3. Confidential Information shall not be subject to discovery and
shall be inadmissible in any adversarial proceeding, whether judicial or
8.4. INSTANCES WHERE PRIOR NOTICE IS DISPENSED: quasi-judicial. However, evidence or information that is otherwise
8.4.1. Urgent need to either: admissible or subject to discovery does not become inadmissible or
protected from discovery solely by reason of its use in a mediation.
a. preserve property; 11.1.4. In such an adversarial proceeding, the following persons
b. prevent the respondent from disposing of, or concealing, the property; involved or previously involved in a mediation may not be compelled to
disclose confidential information obtained during mediation:
c. prevent the relief prayed for from becoming illusory because of prior a. the parties to the dispute;
notice; b. the mediator or mediators;
c. the counsel for the parties;
9. APPOINTMENT OF ARBITRATOR. d. the non-party participants;
9.1. Relief against court action: e. any persons hired or engaged in connection with the mediation as
9.1.1. If the court appoints an arbitrator, the order appointing an secretary, stenographer, clerk or assistant; and
arbitrator shall be immediately executory and shall not be the subject of a f. any other person who obtains or possesses confidential information by
motion for reconsideration, appeal or certiorari. reason of his/her profession.
9.1.2. An order of the court denying the petition for appointment of an g. a mediator who is found to have failed to act impartially.
arbitrator may be the subject of a motion for reconsideration, appeal or h. a mediator may not be called to testify to provide information gathered
certiorari. (Rule 6.9.) in mediation. (Sec. 9)

10. ASSISTANCE IN TAKING EVIDENCE; 12. WAIVER OF CONFIDENTIALITY.

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

21.1. WHO DEPOSITS THE MEDIATED SETTLEMENT AGREEMENT? 22.1.2. WHEN NOT ALOWED.
21.1.1. Any party to a mediation that is not court-annexed may deposit a. No motion for reconsideration shall be allowed from the following rulings
with the court the written settlement agreement, which resulted from that of the RTC:
mediation. (Rule 15.1.1) (1) A prima facie determination upholding the existence, validity or
enforceability of an arbitration agreement pursuant to Rule 3.1 (A);
21.2. WHEN IS THE MEDIATED SETTLEMENT AGREEMENT DEPOSITED? (2) An order referring the dispute to arbitration;
21.2.1. At any time after an agreement is reached, the written (3) An order appointing an arbitrator;
settlement agreement may be deposited. (15.2.) (4) Any ruling on the challenge to the appointment of an arbitrator;
(5) Any order resolving the issue of the termination of the mandate of
21.3. VENUE. an arbitrator; and
21.3.1. Written settlement agreement may be jointly deposited by the (6) An order granting assistance in taking evidence. (Ibid.)
parties or by one party with prior notice to the other party/ies with the
Clerk of Court of the RTC: 22.2. No second motion for reconsideration is allowed.
a. Where the principal place of business in the Philippines of any of the
parties is located; 23. APPEAL AND CERTIORARI.
b. If any of the parties is an individual, where any of those individuals 23.1. No appeal or certiorari on the merits of an arbitral award - An agreement to refer a
resides; or dispute to arbitration shall mean that the arbitral award shall be final and binding.
c. In the National Capital Judicial Region. (Rule 15.3.) Consequently, a party to an arbitration is precluded from filing an appeal or a petition for
certiorari questioning the merits of an arbitral award. (Rule 19.7.)
21.4. ENFORCEMENT OF MEDIATED SETTLEMENT AGREEMENT.
21.4.1. Any of the parties to a mediated settlement agreement, which 24. APPEAL FROM RTC TO COURT OF APPEALS.
was deposited with the Clerk of Court of the RTC, may, upon breach 24.1. MODE OF APPEAL – Petition for review on certiorari under Rule 43
thereof, file a verified petition with the same court to enforce said
agreement. (Rule 15.5.) 24.2. PERIOD – 15 days from notice of the final order, decision, or motion for
reconsideration.
22. MOTION FOR RECONSIDERATION, APPEAL AND CERTIORARI.
22.1. MOTION FOR RECONSIDERARION WITHIN 15 DAYS BEFORE THE RTC. 24.3. GROUNDS:
22.1.1. WHEN ALLOWED: 24.3.1. Granting or denying an interim measure of protection;
a. That the arbitration agreement is inexistent, invalid or unenforceable 24.3.2. Denying a petition for appointment of an arbitrator;
pursuant to Rule 3.10 (B); 24.3.3. Denying a petition for assistance in taking evidence;
b. Upholding or reversing the arbitral tribunal’s jurisdiction pursuant to Rule 24.3.4. Enjoining or refusing to enjoin a person from divulging
3.19; confidential information;
c. Denying a request to refer the parties to arbitration; 24.3.5. Confirming, vacating or correcting/modifying a domestic arbitral
d. Granting or denying a party an interim measure of protection; award;
e. Denying a petition for the appointment of an arbitrator; 24.3.6. Setting aside an international commercial arbitration award;
f. Refusing to grant assistance in taking evidence; 24.3.7. Dismissing the petition to set aside an international commercial
g. Enjoining or refusing to enjoin a person from divulging confidential arbitration award even if the court does not decide to recognize or enforce
information; such award;
h. Confirming, vacating or correcting a domestic arbitral award; 24.3.8. Recognizing and/or enforcing an international commercial
i. Suspending the proceedings to set aside an international commercial arbitration award;
arbitral award and referring the case back to the arbitral tribunal;
 24.3.9. Dismissing a petition to enforce an international commercial
arbitration award; 26.3. MODE – Verified petition for review on certiorari (under Rule 45)
24.3.10. Recognizing and/or enforcing a foreign arbitral award; 26.3.1. Purely questions of law (Rule 19.37.)
24.3.11. Refusing recognition and/or enforcement of a foreign arbitral 26.3.2. Discretionary appeal
award;
24.3.12. Granting or dismissing a petition to enforce a deposited 26.4. GROUNDS:
mediated settlement agreement; and The following, while neither controlling nor fully measuring the court's
24.3.13. Reversing the ruling of the arbitral tribunal upholding its discretion, indicate the serious and compelling, and necessarily, restrictive nature
jurisdiction. (Rule 19.12.) of the grounds that will warrant the exercise of the Supreme Court’s discretionary
powers, when the Court of Appeals:
25. SPECIAL CIVIL ACTION FOR CERTIORARI (Under RULE 65). 26.4.1. Failed to apply the applicable standard or test for judicial review
25.1. WHERE – Court of Appeals prescribed in these Special ADR Rules in arriving at its decision resulting in
25.2. PERIOD - petition must be filed within 15 days from notice of the judgment, order or substantial prejudice to the aggrieved party;
resolution sought to be annulled or set aside. 26.4.2. Erred in upholding a final order or decision despite the lack of
25.3. No extension of time to file the petition shall be allowed. (Rule 19.28.) jurisdiction of the court that rendered such final order or decision;
26.4.3. Failed to apply any provision, principle, policy or rule contained
25.4. GROUNDS: in these Special ADR Rules resulting in substantial prejudice to the
25.4.1. When the Regional Trial Court, in making a ruling under the aggrieved party; and
Special ADR Rules, has acted: 26.4.4. Committed an error so egregious and harmful to a party as to
a. without jurisdiction; amount to an undeniable excess of jurisdiction.
b. in excess of its jurisdiction, or
c. with grave abuse of discretion amounting to lack or excess of jurisdiction, The mere fact that the petitioner disagrees with the Court of Appeals’
and there is no appeal or any plain, speedy, and adequate remedy in the determination of questions of fact, of law or both questions of fact and law, shall
ordinary course of law, a party may file a special civil action for certiorari to not warrant the exercise of the Supreme Court’s discretionary power. The error
annul or set aside a ruling of the Regional Trial Court. imputed to the Court of Appeals must be grounded upon any of the above
prescribed grounds for review or be closely analogous thereto.
25.5. A special civil action for certiorari may be filed against the following orders of the A mere general allegation that the Court of Appeals has committed serious
court. and substantial error or that it has acted with grave abuse of discretion resulting
25.5.1. Holding that the arbitration agreement is inexistent, invalid or in substantial prejudice to the petitioner without indicating with specificity the
unenforceable; nature of such error or abuse of discretion and the serious prejudice suffered by
25.5.2. Reversing the arbitral tribunal’s preliminary determination the petitioner on account thereof, shall constitute sufficient ground for the
upholding its jurisdiction; Supreme Court to dismiss outright the petition. (Rule 19.36)
25.5.3. Denying the request to refer the dispute to arbitration;
25.5.4. Granting or refusing an interim relief; VII. REMEDIES RE: DOMESTIC ARBITRAL AWARDS:
25.5.5. Denying a petition for the appointment of an arbitrator; 1. CONSTRUCTION INDUSTRY ARBITRATION COMMISSION (CIAC [E.O. No. 1008])
25.5.6. Confirming, vacating or correcting a domestic arbitral award; 1.1. Original and exclusive jurisdiction over:
25.5.7. Suspending the proceedings to set aside an international NB: ORIGINAL AND EXCLUSIVE JURISDICTION over:
commercial arbitral award and referring the case back to the arbitral -Disputes arising from, or connected with, contracts entered into by parties involved in construction in the
tribunal; Philippines;
25.5.8. Allowing a party to enforce an international commercial arbitral -Whether the dispute arises before or after the completion of the contract, or after the abandonement or
award pending appeal; breach thereof;
25.5.9. Adjourning or deferring a ruling on whether to set aside, -Involving government or private contracts;
recognize and or enforce an international commercial arbitral award; -The parties must agree to submit to voluntary arbitration (N.B. : No need to make a request pursuant to
25.5.10. Allowing a party to enforce a foreign arbitral award pending Sec. 1 Art 3 of the New Rules of Procedure Governing Construction Arbitration for as long as there is an
appeal; and arbitration clause)
25.5.11. Denying a petition for assistance in taking evidence. (Rule
19.26.) 1.1.1. disputes arising from, or connected with, contracts entered into by parties
involved in construction in the Philippines, whether the dispute arises:
26. APPEAL BY CERTIORARI TO THE SUPREME COURT. a.i.1.a. before or after the completion of the contract, or
26.1. WHERE – Supreme Court a.i.1.b. after the abandonment or breach thereof.
1.1.2. Violation of specifications for materials and workmanship;
26.2. PERIOD – 15 days from notice of judgment or final order or resolution appealed from, 1.1.3. Violation of the terms of agreement;
or of the denial of the petitioner's motion for new trial or reconsideration filed in due 1.1.4. Interpretation and/or application of contractual time and delays;
time after notice of the judgment. 1.1.5. Maintenance and defects;
 1.1.6. Payment, default of employer or contractor and changes in contract cost.
1.2. These disputes may involve government or private contracts.
1.3. For the Board to acquire jurisdiction, the parties to a dispute must agree to submit the
same to voluntary arbitration.
1.4. Jurisdiction of a court is determined by the law in force at the time of the
commencement of the action.
1.5. Jurisdiction of CIAC is over the dispute, not the contract.
1.6. As long as the parties agree to submit to voluntary arbitration, regardless of what
forum they may choose (ad hoc or institutional), their agreement will fall within the
jurisdiction of the CIAC, such that, even if they specifically choose another forum, the
parties will not be precluded from electing to submit their dispute before the CIAC
because the right has been vested upon each party by law, i.e., E.O. No 1008. (NIA vs.
Court of Appeals, 318 SCRA 255).
1.7. When a contract contains a clause for the submission of a future controversy to
arbitration, it is not necessary for the parties to enter into a submission agreement
before the claimant may invoke the jurisdiction of the CIAC.
1.8. ARBITRATOR(S).
1.8.1. A sole arbitrator:
1..1.a. Parties, by agreement, nominate him from the list of arbitrators
accredited by the CIAC for appointment and confirmation.
1..1.b. If the parties fail to agree as to the arbitrator, the CIAC taking
into consideration the complexities and intricacies of the dispute/s, has
the option to appoint a single arbitrator or an Arbitral Tribunal.
1.8.2. Three arbitrators:
a. If the CIAC decides to appoint an Arbitral Tribunal, each party may
nominate one (1) arbitrator from the list of arbitrators accredited by
the CIAC for appointment and for confirmation.
b. The third arbitrator who is acceptable to both parties confirmed in
writing shall be appointed by the CIAC and shall preside over the
Tribunal. (Sec. 14)
1.9. As soon as a decision, order or award has become final and executory, the Arbitral
Tribunal or the single arbitrator with the occurrence of the CIAC shall motu propio, or
on motion of any interested party, issue a writ of execution requiring any sheriff or
other proper officer to execute said decision, order or award. (Sec. 20)
2. COURT OF APPEALS.
1.1. 15 days from receipt of notice of the assailed final arbitral award, petition
for review under Rule 43, either on questions of fact, of law, or of fact and law.
Ground: errors of arbitral award (judgment). (Sec. 18.2, CIAC Revised Rules of
Procedure Governing Construction Arbitration)
1.2. 60 days from receipt of notice of the assailed final arbitral award, special
civil action for certiorari or petition for certiorari under Rule 65 (N.B.: Hierarchy of
Courts must be observed, as the remedy is an original and concurrent jurisdiction with
the Supreme Court). Ground: errors of jurisdiction.
2. SUPREME COURT.
2.1. 15 days from receipt of notice of the assailed judgment or denial of motion
for reconsideration by the Court of Appeals, ordinary appeal of petition for review on
certiorari under Rule 45. Ground: errors of judgment.
2.2. Concurrent jurisdiction with the Court of Appeals on Petition for Certiorari
under Rule 65. Hierarchy of courts must be observed. (Note: the petition for certiorari
[writ of certiorari] under Rule 65 is an original action).
3. REMEDIES FROM INTERNATIONAL COMMERCIAL ARBITRATION.
3.1. Petition for confirmation, recognition and enforcement of foreign arbitral award before
the Regional Trial Court;
3.1.1. Attach the original or authenticated copy of the arbitral award or the
arbitration agreement.
3.1.2. The award or agreement must be made in any of the official languages
(English), if not the party shall supply a duly certified translation thereof
into any of such languages.
3.1.3. The country in which the foreign arbitration award was made must be a
party to the New York Convention.
3.1.4. When confirmed by RTC it shall be enforced in the same manner as final
and executory decisions of courts of law of the Philippines.
3.1.5. If the application for rejection or suspension of enforcement of an award
has been made, the RTC may, if it considers it proper, vacate its decision
and may also, on the application of the party claiming recognition or
enforcement of the award, order the party to provide appropriate security.
4. The recognition and enforcement of foreign arbitral awards not covered by the New York
Convention shall be done in accordance with procedural rules to be promulgated by the
Supreme Court. The Court may, grounds of comity and reciprocity, recognize and enforce a
nonconvention award as a convention award. (Sec. 43)
5. A foreign arbitral award when confirmed by a court of a foreign country, shall be recognized
and enforced as a foreign arbitral award and not a judgment of a foreign court. (Sec. 44)
6. A foreign arbitral award, when confirmed by the RTC, shall be enforced as a foreign arbitral
award and not as a judgment of a foreign court.
7. A foreign arbitral award, when confirmed by the RTC, shall be enforced in the same manner as
final and executory decisions of courts of law of the Philippines.
VIII. CASES.
A. Tuna Processing, Inc., vs. Philippine Kingford, Inc., G.R. No. 185582, February 29,
2012.)
1. A foreign corporation not licensed to do business in the Philippines, but
which collects royalties from entities in the Philippines, have legal capacity to sue for
the recognition and enforcement of foreign arbitral award in accordance with the
provisions of the Alternative Dispute Resolution Act of 2004 [R.A. No. 9285] .
2. When a party enters into a contract containing a foreign arbitration clause
and, in fact, submits itself to arbitration, it becomes bound by the contract, by the
arbitration and by the result of arbitration, conceding thereby the capacity of the
other party to enter into the contract, participate in the arbitration and cause the
implementation of the result. (Ibid.)
3. The New York Convention shall govern the recognition and enforcement of
arbitral awards covered by the said Convention. (Sec. 42, R.A. No. 9285)
 4. Also, international commercial arbitration is governed by the Model Law on
International Commercial Arbitration (the “Model Law”) adopted by the United
Nations Commission on International Trade Law (UNCITRAL) on 21 June 1985.
5. Exclusive grounds for opposition in the application for recognition and
enforcement of arbitral 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. (New York
Convention)
B. National Irrigation Administration (NIA), vs. Honorable court of Appeals [4th Division],
Construction Industry Arbitration Commission, and Hydro Resources Contractors
Corporation, G.R. No. 129169. November 17, 1999.
1. The Construction Industry Arbitration Commission (CIAC) has original and
exclusive jurisdiction over disputes arising from, or connected with contracts entered
into by parties involved in construction in the Philippines, whether the dispute arises
before or after the completion of the contract, or after the abandonment or breach
thereof.
2. Jurisdiction of a court is determined by the law in force at the time of the
commencement of the action.
3. The disputes may involve government or private contracts.
4. As long as the parties agree to submit to voluntary arbitration, regardless of
what forum they may choose, their agreement will fall within the jurisdiction of the
CIAC, such that, even if they specifically choose another forum, the parties will not be
precluded from electing to submit their dispute before the CIAC because this right has
been vested upon each party by law, i.e., E.O. No. 1008.
C. LM Power Engineering Corporation vs. Capitol Industrial Construction Groups, Inc., G.R.
No. 141833, March 26, 2003.
8. Whenever there is an arbitration clause, there is no more need to file request
with the CIAC in order to vest it with jurisdiction to decide a construction
dispute.
9. A prematurely filed complaint before the RTC without prior recourse to
arbitration, the proper procedure to enable the CIAC to decide on the dispute is
to request the stay or suspension of such an action, as provided under Sec. 7,
R.A. No. 876 (the Arbitration Law).
“Sec. 7. Stay of Civil Action. — If any suit or
proceeding be brought upon an issue arising out of an
agreement providing for the arbitration thereof, the court in
which such suit or proceeding is pending, upon being satisfied
that the issue involved in such suit or proceeding is referable to
arbitration, shall stay the action or proceeding until an
arbitration has been had in accordance with the terms of the
agreement: Provided, That the applicant for the stay is not in
default in proceeding with such arbitration.”
D. JPlus Asia Development Corporation vs. Utility Assurance Corporation, G.R. No. 199650,
June 26, 2013.
1. CIAC arbitral award is final and executory.
2. A CIAC arbitral award need not be confirmed by the RTC to be executory as
provided under E.O. No. 1008.
3. Domestic arbitral award, not falling under CIAC, shall be confirmed by way of a
petition for such an order within 30 days before the RTC. (Sec. 23 in relation to
Sec. 28, Arbitration Law [R.A. No. 876])
4. The judgment in the confirmation of a domestic arbitral award is docketed as if
it were rendered in an action. (Ibid.).
5. The judgment in the confirmation of a domestic arbitral award so entered have
the same force and effect in all respects, as, and be subject to all provisions
 relating to a judgment in an action; and it may be enforced as if it had been
rendered in the court in which it is entered. (Ibid.)
E. Koppel, Inc. vs. Makati Rotary Club Foundation, Inc., G.R. No. 198075, September 4,
2013.
1. Doctrine of Separability – Under the doctrine of separability, an arbitration
agreement is considered as independent of the main contract. Being a separate
contract in itself, the arbitration agreement may thus be invoked regardless of
the possible nullity or invalidity of the main contract.
2. Even the very party who repudiates or assails the validity of such contract may
invoke the arbitration clause.
3. The operation of the arbitration clause is not at all defeated by the failure of the
party to file a formal "request" or application therefor. The filing of a "request"
pursuant to Section 24 of R.A. No. 9285 is not the sole means by which an
arbitration clause may be validly invoked in a pending suit.
Section 24 of R.A. No. 9285 reads:
Sec. 24. Referral to Arbitration. — A court before
which an action is brought in a matter which is the subject
matter of an arbitration agreement shall, if at least one party so
requests not later that the pre-trial conference, or upon the
request of both parties thereafter, refer the parties to
arbitration unless it finds that the arbitration agreement is null
and void, inoperative or incapable of being performed.
The "request" referred to in the above provision is, in turn, implemented by
Rules 4.1 to 4.3 of A.M. No. 07-11-08-SC or the Special Rules of Court on Alternative
Dispute Resolution (Special ADR Rules):
RULE 4: REFERRAL TO ADR
Rule 4.1.Who makes the request. — A party to a
pending action filed in violation of the arbitration agreement,
whether contained in an arbitration clause or in a submission
agreement, may request the court to refer the parties to
arbitration in accordance with such agreement.
Rule 4.2. When to make request. — (A) Where the
arbitration agreement exists before the action is filed. — The
request for referral shall be made not later than the pre-trial
conference. After the pre-trial conference, the court will only act
upon the request for referral if it is made with the agreement of
all parties to the case.
(B) Submission agreement. — If there is no existing
arbitration agreement at the time the case is filed but the
parties subsequently enter into an arbitration agreement, they
may request the court to refer their dispute to arbitration at any
time during the proceedings.
Rule 4.3. Contents of request. — The request for
referral shall be in the form of a motion, which shall state that
the dispute is covered by an arbitration agreement.
Apart from other submissions, the movant shall
attach to his motion an authentic copy of the arbitration
agreement.
The request shall contain a notice of hearing
addressed to all parties specifying the date and time when it
would be heard. The party making the request shall serve it
upon the respondent to give him the opportunity to file a
comment or opposition as provided in the immediately
succeeding Rule before the hearing. Attention must be paid,
however, to the salient wordings of Rule 4.1. It reads: "[a] party
to a pending action filed in violation of the arbitration
agreement . . . may request the court to refer the parties to
arbitration in accordance with such agreement."
In using the word "may" to qualify the act of filing a "request" under Section 24 of R.A.
No. 9285, the Special ADR Rules clearly did not intend to limit the invocation of an arbitration
agreement in a pending suit solely via such "request." After all, non-compliance with an
arbitration agreement is a valid defense to any offending suit and, as such, may even be raised in
an answer as provided in our ordinary rules of procedure.
4. In this case, it is conceded that petitioner was not able to file a separate
"request" of arbitration before the MeTC. However, it is equally conceded that
the petitioner, as early as in its Answer with Counterclaim, had already apprised
the MeTC of the existence of the arbitration clause in the 2005 Lease Contract
and, more significantly, of its desire to have the same enforced in this case. This
act of petitioner is enough valid invocation of his right to arbitrate.
5. The fact that the parties already underwent through JDR proceedings before the
RTC, will not make the subsequent conduct of arbitration between the parties
unnecessary or circuitous. The JDR system is substantially different from
arbitration proceedings.
6. JUDICIAL DISPUTE RESOLUTION DISTINGUISHED FROM ARBITRATION.
The JDR framework is based on the processes of mediation, conciliation or
early neutral evaluation which entails the submission of a dispute before a "JDR judge"
who shall merely "facilitate settlement" between the parties in conflict or make a
"non-binding evaluation or assessment of the chances of each party's case." Thus in
JDR, the JDR judge lacks the authority to render a resolution of the dispute that is
binding upon the parties in conflict.
In arbitration, on the other hand, the dispute is submitted to an arbitrator/s
— a neutral third person or a group of thereof — who shall have the authority to
render a resolution binding upon the parties.
7. Mere submission of a dispute to JDR proceedings would not necessarily render the
subsequent conduct of arbitration a mere surplusage. The failure of the parties in
conflict to reach an amicable settlement before the JDR may, in fact, be supplemented
by their resort to arbitration where a binding resolution to the dispute could finally be
achieved.
8. Neither would the summary nature of ejectment cases be a valid reason to disregard
the enforcement of the arbitration clause of the 2005 Lease Contract. Notwithstanding
the summary nature of ejectment cases, arbitration still remains relevant as it aims not
only to afford the parties an expeditious method of resolving their dispute.
R.A. No. 9285
Sec. 24. Referral to Arbitration. — A court before
which an action is brought in a matter which is the subject
matter of an arbitration agreement shall, if at least one party so
requests not later that the pre-trial conference, or upon the
request of both parties thereafter, refer the parties to
arbitration unless it finds that the arbitration agreement is null
 and void, inoperative or incapable of being performed.
[Emphasis supplied]
The violation by the MeTC of the clear directives under R.A. Nos. 876 and
9285 renders invalid all proceedings it undertook in the ejectment case after the filing
by petitioner of its Answer with Counterclaim — the point when the petitioner and the
respondent should have been referred to arbitration.

9. Doctrine of COMPETENCE-COMPETENCE.
Rule 2.4. Policy implementing competence-
competence principle. - The arbitral tribunal shall be accorded
the first opportunity or competence to rule on the issue of
whether or not it has the competence or jurisdiction to decide a
dispute submitted to it for decision, including any objection with
respect to the existence or validity of the arbitration agreement.
When a court is asked to rule upon issue/s affecting the
competence or jurisdiction of an arbitral tribunal in a dispute
brought before it, either before or after the arbitral tribunal is
constituted, the court must exercise judicial restraint and defer
to the competence or jurisdiction of the arbitral tribunal by
allowing the arbitral tribunal the first opportunity to rule upon
such issues.
Where the court is asked to make a determination of
whether the arbitration agreement is null and void, inoperative
or incapable of being performed, under this policy of judicial
restraint, the court must make no more than a prima facie
determination of that issue.
Unless the court, pursuant to such prima facie
determination, concludes that the arbitration agreement is null
and void, inoperative or incapable of being performed, the court
must suspend the action before it and refer the parties to
arbitration pursuant to the arbitration agreement.