CHAPTER 9 - SPECIAL RULES OF COURT ON
There is between the parties a dispute
ALTERNATIVE DISPUTE RESOLUTION
The Specific Court Reliefs
A. Judicial Relief Involving the Issues of
Existence, Validity and Enforceability of the
Arbitration Agreement (Rules 3.1 to 3.22,
Special ADR Rules)
Judicial Relief
- Is a petition for judicial determination of the
existence, validity and/or enforceability of an
arbitration agreement.
- The issues involved in these proceedings
are:
1. Existence of the arbitration agreement –
whether or nor there is an arbitration
agreement;
2. Validity of arbitration agreement –
whether or not the arbitration agreement
complies with all the essential requisites
for a valid contract;
3. Enforceability of the arbitration
agreement – whether or not its
enforceability is in accordance with Art.
1403 of the Civil Code.
It is to note that this judicial relief is applicable only
to arbitration proceedings conducted in the
Philippines.
This special proceeding is the procedural
mechanism for the enforcement of the contract to
arbitrate. The jurisdiction of the courts in relation to
R.A. 867, sec. 6, as well as the nature of the
proceedings was expounded in the case of La Naval
Drug Corporation v. CA, where it held that R.A. 876
explicitly confines the court’s authority only to the
determination of whether or not there is agreement
in writing providing for arbitration. The statute
ordains that the courts shall issue an order
‘summarily directing the parties to proceed with the
arbitration in accordance with the terms thereof’.
Otherwise, if no agreement exists, the proceedings
shall be dismissed.
Judicial Relief Before Commencement of
Arbitration
a. The rules on judicial relief prior to the
commencement of arbitration apply when the
following circumstances are present:
1. The arbitration proceeding has not yet
been commenced; and
2.
regarding the existence, validity or
enforceability of the arbitration
agreement.
b. The procedural rules are as follows:
1. Petition – initiatory pleading filed before
the RTC where any of the parties resides
or has principal place of business. It shall
state the following: a. legal capacity; b.
the nature and substance of the dispute;
c. grounds and circumstances relied
upon by the petitioner; and, d. the relief
sought.
2. Comment/Opposition – Within fifteen
(15) days from service of petition, the
respondent must file his comment or
opposition;
3. Court action – in resolving the petition,
the court must exercise judicial restraint
or defer to the competence or jurisdiction
of the arbitral tribunal;
4. Relief against court action – the
determination of the court upholding the
existence, validity or enforceability of the
proceedings are merely prima facie.
Such prima facie determination shall not
be subject to a motion for
reconsideration, appeal or certiorari, but
shall be without prejudice to the parties.
Judicial Relief After Arbitration Commences
- After the commencement of arbitration and
the constitution of the arbitral tribunal, and
after the arbitral tribunal has rendered a
preliminary ruling on its jurisdiction, the
proper issue for judicial relief is whether or
not the arbitral tribunal has jurisdiction over
the arbitral proceedings.
- The rules on judicial relief after the
commencement of arbitration apply under
the following circumstances:
a. The arbitration proceeding has already
been commenced, the arbitral tribunal
has been constituted and has rendered a
preliminary ruling on its jurisdiction; and
b. A part desires to challenge the arbitral
tribunal’s ruling on the issue of
jurisdiction.
Generally, the commencement of arbitration is
determined by the agreement of parties, in the
absence of which, it is commenced in accordance
with the rules of the institutional arbitrator, or upon
the delivery by the claimant to the respondent of a
demand for arbitration if there is a prior arbitration
agreement, or if in the absence of such, upon the
agreement of the respondent to submit the dispute
to arbitration after being served a demand to
arbitrate.
Hereunder are the procedural rules:
1. Petition – within thirty (30) days from
receipt of notice from an arbitral tribunal,
an aggrieved party may file a petition with
the RTC, a) where the arbitration is taking
place; or b) where any of the petitioners
or respondents has his principal place of
business or residence, at the option of
petitioner, for judicial relief from the ruling
of the arbitral tribunal on a preliminary
question upholding or declining its
jurisdiction. The petition shall state the
following: 1. The facts showing that both
have legal capacity to sue and be sued;
2. The nature and substance of the
dispute; 3. The relief sought.
2. Comment/Opposition – the respondent
shall file within 15 days from receipt of
service of the petition.
3. Court Action – the court shall render
judgment within 30 days from the time the
petition is submitted;
4. Relief against court action – motions for
reconsideration, appeal and petition for
certiorari are not available to challenge
the decision of arbitral tribunal to defer
the resolution of the preliminary
jurisdiction issues. The parties can,
however, await the rendition of the final
arbitral award, and raise the same issues
before the court in a proceeding for
setting aside or vacating the award.
In a petition for judicial relief, the arbitrator or the
members of the arbitral tribunal shall be nominal
parties.
Nominal party – is one who is named as party in an
action although the real interest is with some other
party.
Real party-in-interest – the party who stands to be
benefited or injured by the judgment or the party
entitle to the avails of the suit.
Indispensable party – a party who has such an
interest in the controversy or subject matter that a
final adjudication cannot be made, in his absence,
without injuring or affecting that interest.
Necessary party – Is one who is not indispensable
but who ought to join as party if complete relief is to
be accorded as to those who are already parties, or
for complete determination or settlement of the claim
subject the action. These are included parties,
necessary to the arbitration proceedings because
their non-inclusion, while not affecting the validity of
the arbitration, will result in an incomplete
determination or settlement of the claim subject of
the arbitration.
B. Referral to ADR
This pertains to the referral of a pending court action
to arbitration rather than any other form of ADR. The
situation contemplated by this Rule is that where:
1. There is already a pending court action;
2. There is either a pre-action arbitration
agreement or present-action arbitration
agreement; and
3. One or both parties desire to undergo
arbitration.
For purposes of determining the timeliness of the
request for referral to arbitration and the number of
parties who are required to make the request, the
relevant classification is based on the time of the
execution relative to the filing of the action.
Pre-action – if executed prior to filing of an action.
Present-action – if executed after the filing of an
action.
On the other hand, in determining the date of
commencement of the arbitration, the pertinent
classification is that based on the time of the
execution of the arbitration agreement relative to the
existence of the dispute, i.e., pre-casual or present-
casual arbitration agreement.
Pre-action arbitration agreement
- It may either be an agreement to submit to
arbitration or a submission agreement, the
request for referral to arbitration may be
made by any one of the parties not later than
the pre-trial conference. Provided, request
made after the pre-trial conference must be
within the agreement of both parties.
Present-action arbitration agreement
- It is necessarily a submission agreement, the
parties may request the referral to arbitration
at any time during the proceedings.
- Hereunder are the procedural rules:
 a. Request/motion – this contemplates the
existence of a pending court action
already initiated either by complaint or a
petition. It must be served upon
respondent and is set for hearing;
b. Comment/Opposition – it must be filed
within 15 days from service of request or
motion, that must show: 1. There is no
agreement to refer the dispute to
arbitration; 2. The agreement is null and
void; and 3. The subject matter of the
dispute is not capable of settlement or
resolution by arbitration.
c. Court action – the court may:
1. Grant, if it finds prima facie that there
is valid and enforceable arbitration,
and that subject matter of the dispute
is capable of arbitration; or
2. Deny, if the court finds otherwise.
It is to note, either way, the court should
stay the judicial proceedings while the
motion for referral is pending.
d. Relief against court action – the order
granting the motion for referral to
arbitration shall be immediately
executory and not subject to motion for
reconsideration. On the other hand, an
order denying the request for referral,
may be subject to motion for
reconsideration.
In accordance with the principle of preference for
alternative dispute resolution, courts are prohibited
from denying the request for referral of some or all
of the parties to arbitration for any of the following
reasons:
1. Not all disputes subject of the civil action
may be referred to arbitration;
2. Not all of the parties to the civil action are
bound by the arbitration agreement and
referral to arbitration would result to
multiplicity of suits;
3. The issues raised in the civil action could
be speedily and efficiently resolved in its
entirety by the court rather than in
arbitration;
4. Referral to arbitration does not appear to
be the most prudent action; and
5. The stay of the action would prejudice the
rights of the parties to the civil action who
are not bound by the arbitration
agreement.
In the case of Koppel, Inc. v. Makati Rotary Club
Foundation Inc., the Supreme Court discussed the
legal effects of the non-application of the arbitration
clause to a case, as follows:
a. The judicial proceedings conducted beyond
the point when the dispute should have been
referred to arbitration are rendered invalid;
b. The decisions, including those of the
appellate courts, must be vacated and set
aside;
c. The case must be remanded to the court a
quo to be suspended at said point;
d. The petitioner and respondent must then be
referred to arbitration pursuant to the
arbitration clause.
C. Interim Measures of Protection (Rules 5.1 to
5.6, Special ADR Rules)
The rules on judicial issuance of interim measures of
protection contemplate the situation:
1. Either
(i) before the commencement of
arbitration, or
(ii) after the commencement of the
arbitration but prior to the constitution
of the arbitral tribunal, or
(iii) after the arbitral tribunal's constitution
but it has no power to act or is unable
to act effectively; and
2. Where a party desires to secure interim
measures of protection.
A measure of protection may either be interim or
temporary.
Interim Measures of Protection
The parties may request from the court, among
others, the following interim measures:
1. Preliminary injunction directed against a
party to arbitration;
2. Preliminary attachment against property or
garnishment of funds in the custody of a bank
or third person;
3. Appointment of a receiver;
4. Detention, preservation, delivery or
inspection of property; or
5. Assistance in the enforcement of an interim
measure of protection granted by the arbitral
tribunal which it cannot enforce effectively.
The following are the rules of procedure for the
application for interim measures of protection with
the court:
1. Petition. The application for an interim
measure of protection is initiated by filing a
petition with the Regional Trial Court of the
place where
(i) any of the parties has his principal
place of business or residence; or
(ii) any of the acts sought to be enjoined
are being performed or threatened to
be performed; or
(iii) the real property subject of the
arbitration is situated, at the option of
the petitioner.
Prior notice must be served upon the
adverse party unless the petitioner alleges in
the petition an application for an ex parte
temporary protective measure to the effect
that there is an urgent need to either
(i) preserve property;
(ii) prevent the respondent from
disposing of, or concealing, the
property; or
(iii) prevent the relief prayed for from
becoming illusory because of prior
notice, and the court finds that the
reasons given are meritorious.
2. Comment / opposition. The comment or
opposition must be filed within fifteen (15)
days from service of the petition.
3. Court action. The court shall resolve the
petition within thirty (30) days from the
(i) submission of the opposition, or
(ii) (ii) upon the lapse of the period to file
the same, or
(iii) (iii) from the termination of the
hearing that may be set if there is
need for clarification or further
argumentation. In resolving the
petition, the court is required to
balance the relative interests of the
parties and the inconveniences that
may be caused.
4. Relief against court action. An order of the
court granting or denying an interim measure
may be the subject of a motion for
reconsideration, appeal or a petition for
certiorari. If the protective measure was
issued in a proceeding where at the adverse
party was given an opportunity to be heard,
the order of the court granting the petition
shall be immediately executory.
Temporary Order of Protection or-Temporary
Protective Measure
Temporary Protective Measure (TPM) / Temporary
Order of Protection (TOP)
➢ is an injunctive relief the office of which is to
preserve property subject matter of the
arbitration, prevent the disposition or
concealment thereof, or prevent the relief
prayed for from becoming moot and
academic, during the period that the court is
resolving the application for the interim
protective measure.
A TOP or TPM may be issued by the court
under the following conditions:
1. There is an urgent need to
(i) preserve property;
(ii) prevent the respondent from
disposing of, or concealing the
property; or
(iii) prevent the relief prayed for from
being illusory because of prior notice;
2. The petitioner shall post a bond to answer for
any damage that the respondent may suffer
as a result thereof;
3. It shall be valid only for twenty (20) days from
the service on the party required to comply
therewith, unless extended but not for more
than twenty (20) days;
4. During the twenty (20) day period and any
extension thereof, the court shall determine
the propriety of issuing the principal interim
protective measure requested; and
5. It can be lifted by the respondent by posting
an appropriate counter-bond as determined
by the court.
A TOP or TPM is similar to a temporary
restraining order (TRO) in that these measures are
temporary in character, intended to ensure the
efficacy of the principal relief and have, as a general
rule, a lifetime of twenty (20) days.
They are, however, different in the following
respects:
1. The effectivity of a TOP or TPM is
susceptible of extension for not more than
twenty (20) days, while a TRO is non-
extendible and becomes functus oficio after
the lapse of twenty (20) days from the service
thereof.
 2. A bond is required for a TOP or TPM unlike
a TRO which does not generally require the
posting of a bond. Instead, a bond is required
for the issuance of a writ of preliminary
injunction.
3. And a TOP or TPM may be lifted through the
posting of a counter-bond which is not true of
a TRO. Instead, a counter-bond may lift a writ
of preliminary injunction.
Preference for Arbitration
The rules on interim measures of protection
recognize the principle of preference for arbitration
over judicial proceedings. The following instances
illustrate this principle:
1. Any court order granting or denying an
interim measure of protection is without
prejudice to the subsequent grant,
modification, amendment, revision or
revocation thereof by the arbitral tribunal.
2. An interim measure of protection issued by
the arbitral tribunal shall, upon its issuance
be deemed to have ipso jure modified,
amended, revised or revoked an interim
measure of protection issued by the court to
the extent that it is inconsistent with the
subsequent interim measure of protection
issued by the arbitral tribunal.
3. Any question involving a conflict or
inconsistency between an interim measure of
protection issued by a court and one issued
by an arbitral tribunal shall be immediately
referred by the court to the arbitral tribunal
which shall have the authority to decide such
question.
4. The court shall defer action on any pending
petition for an interim measure of protection
filed by a party to an arbitration agreement
arising from or in connection with a dispute
thereunder upon being informed that an
arbitral tribunal has been constituted
pursuant to such an agreement.
5. And the court shall assist in the enforcement
of an interim measure of protection issued by
the arbitral tribunal which the latter is unable
to effectively enforce.
D. Appointment of Arbitrators (Rules 6.1 to 6.9,
Special ADR Rules)
The rules on the judicial appointment of arbitrators
apply if:
1. There is a failure to appoint an arbitrator
under the following circumstances:
a. Where any of the parties in an
institutional arbitration failed or refused
to appoint an arbitrator, or the parties
have failed to reach an agreement on
the sole arbitrator in an arbitration
before a sole arbitrator, or when the two
designated arbitrators have failed to
reach an agreement on the third or
presiding arbitrator, and the institution
under whose rules arbitration is to be
conducted fails or is unable to perform
its duty as appointing authority within a
reasonable time from receipt of the
request for appointment;
b. Where the arbitration is ad hoc and the
parties failed to provide a method for
appointing or replacing an arbitrator, or
substitute arbitrator, or the method
agreed upon is ineffective, and the
National President of the Integrated
Bar of the Philippines (IBP) or his duly
authorized representative fails or
refuses to act within such period as
may be allowed under the pertinent
rules of the IBP or within such period as
may be agreed upon by the parties, or
in the absence thereof, within thirty (30)
days from receipt of such request for
appointment; or
c. Where the parties agreed that their
dispute shall be resolved by three
arbitrators but no method of appointing
those arbitrators has been agreed
upon, and the parties, and
subsequently, the appointing authority,
fails or refuses to appoint the arbitrator
within a reasonable time from receipt of
the request to do so.
2. And any party or the appointed arbitrators
request the court to act as the appointing
authority and appoint the arbitrator or third
arbitrator as the case may be.
Hereunder are the rules of procedure for the
judicial appointment of arbitrators:
1. Petition. The petition for the
appointment of an arbitrator shall be
filed with the Regional Trial Court
(i) where the principal place of
business of any of the parties is
located;
 (ii) if any of the parties are
individuals, where those
individuals reside; or
(iii) in the National Capital Judicial
Region, at the option of the
petitioner.
The petition shall state
(i) the general nature of the
dispute;
(ii) a description of the procedure
for the appointment of the
arbitrators, if there is any, and
the agreement containing such
procedure;
(iii) the number of the arbitrators
agreed upon or the absence of
such an agreement;
(iv) the special qualifications of the
arbitrators if there is any
agreement thereon;
(v) the fact that the appointing
authority, without justifiable
cause, has failed or refused to
act as such within the time
prescribed or within a reason
able time, from the date a
request was made; and
(vi) the petitioner is not the cause of
the delay or in the failure of the
appointment of the arbitrator.
2. Comment/ opposition. The comment or
opposition must be filed within fifteen
(15) days from the service of the
petition.
3. Court action. In addition to making the
appointment, the court may require
each party to submit a list of not less
than three (3) proposed arbitrators
together with their curriculum vitae from
whom the court may appoint the
arbitrator.
Prior to the appointment, if the court is
informed that the appointing authority
has already made an appointment, it
shall dismiss the petition.
4. Relief against court action. The order of
the court appointing an arbitrator shall
be immediately executory and shall not
be the subject of a motion for
reconsideration, appeal or certiorari.
E. Challenge to Appointment of Arbitrator (Rules
7.1 to 7.9, Special ADR Rules)
The rules of procedure on the judicial challenge to
the appointment of arbitrators apply to the following
situation:
1. The challenge to the appointment of an
arbitrator before the arbitral tribunal is not
successful, and the appointing authority fails
or refuses to act on the challenge within such
period of time as may be allowed under the
applicable rule or, in the absence thereof,
within thirty (30) days from receipt of the
request; and
2. The aggrieved party wants to secure judicial
action on the challenge.
The procedure for the challenge to the appointment
of an arbitrator before the court is as follows:
1. Petition. The petition for the judicial
challenge shall be filed with the Regional
Trial Court
(i) where the principal place of business
of any of the parties is located, (ii)
(ii) if any of the parties are individuals,
where those individuals re. side, or
(iii) in the National Capital Judicial
Region, at the option of the petitioner.
The petition shall state
(i) the name of the arbitrator challenged
and his address;
(ii) the grounds for the challenge;
(iii) the facts showing that the ground for
the challenge has been expressly or
impliedly rejected by the challenged
arbitrator; and
(iv) the facts showing that the appointing
authority failed or refused to act on
the challenge. A copy of the petition
shall be served upon the respondent
before it is filed in court.
2. Comment / opposition. The challenged
arbitrator or other parties may file a comment
or opposition within fifteen (15) days from
service of the petition.
3. Court action. The court has any of the
following options in resolving the petition:
a. Grant the petition by removing the
challenged arbitrator if it finds merit in
the petition;
 b. Dismiss the petition if there is no merit
thereto;
c. Allow the challenged arbitrator to
withdraw as arbitrator;
d. Accept the challenge and remove the
arbitrator if
(i) the party or parties who named
and appointed the challenged
arbitrator agree to the challenge
and with draw the appointment;
(ii) the other arbitrators in the arbitral
tribunal agree to the removal of the
challenged arbitrator; or
(iii) the challenged arbitrator fails or
refuses to submit his comment on
the petition or the brief of legal
arguments as directed by the
court, or he fails to object to his
removal.
4. No relief against court action. Any order of
the court resolving the petition shall be
immediately executory and shall not be
subject to a motion for reconsideration,
appeal or certiorari.
F. Termination of Mandate of Arbitrator (Rules
8.1 to 8.8, Special ADR Rules)
The rules on the judicial termination of mandate of
an arbitrator apply when:
1. An arbitrator becomes de jure or de facto
unable to perform his functions or for other
reasons fail to act without undue delay;
2. The arbitrator, upon request of any party,
fails or refuses to withdraw from his office;
3. The appointing authority fails or refuses to
decide on the termination of the mandate of
the arbitrator within such period of time as
may be allowed under the applicable rule or,
in the absence thereof, within thirty (30) days
from the time the request is brought before
him; and
4. Any party seeks judicial action in terminating
the mandate of the arbitrator.
The procedure for the judicial termination of the
mandate of an arbitrator is as follows:
1. Petition. The petition shall be filed with the
Regional Trial Court
(i) where the principal place of business
of any of the parties is located,
(ii) where any of the parties who are
individuals reside, or
(iii) in the National Capital Judicial
Region, at the option of the petitioner.
The petition shall state
(i) the name of the arbitrator whose
mandate is sought to be terminated;
(ii) the grounds for the termination;
(iii) the fact that one or all of the parties
had requested the arbitrator to
withdraw but he failed or refused to
accede; and
(iv) the fact that one or all of the parties
requested the appointing authority to
act on the request but is unable or
has failed to act within thirty (30) days
from the request or within such period
of time as may have been agreed
upon by the parties or allowed under
the applicable rule.
2. Comment / opposition. The comment or
opposition must be filed within fifteen (15)
days from service of the petition.
3. Court action. The court shall grant the
petition and terminate the mandate of the
arbitrator if it finds merit in the petition;
otherwise it shall dismiss the petition. If the
petition is granted, a substitute arbitrator
shall be appointed according to the rules that
were applicable to the appointment of the
arbitrator being replaced.
4. No relief against court action. Any order of
the court re solving the petition shall be
immediately executory and shall not be
subject to a motion for reconsideration,
appeal or petition for certiorari.
G. Assistance in Taking Evidence (Rules 9.1-
9.11, Special ADR Rules)
The rules on judicial assistance in taking evidence
apply in the following situation:
1. There is a pending arbitration, whether
domestic of foreign.
2. A party desires to present evidence or abitral
tribunal ordered the takin of evidence,
necessitating court assistance
3. The evidence is sought from person,
including a representative of a corporation,
association, partnership or other entity, other
 than a party to the arbitration or its officers
found in the Philippines
Rule 24 of the 1997 Rules of Civil Procedure may be
avail when:
1. Arbitration has not yet commenced
2. Arbitral tribunal has not yet constituted
3. Any person who desires to perpetuate his
testimony
Example of court assistance in taking evidence in
Rule 9.5 of the Special ADR rules:
1. On testimonial evidence:
a. To comply with subpoena ad
testificandum.
b. To appear as witness before an officer for
taking of his deposition upon oral
examination or written interrogatories.
2. On documentary evidence:
a. To comply with subpoena duces tecum.
b. To allow the examination and copying of
documents.
3. On real evidence:
a. To allow physical examination of the
condition of persons, or the inspection of
things or premises.
The procedure for judicial assistance in taking
evidence:
1. Petition – the petition must be filed with
Regional Trial Court where [i] the arbitration
proceedings are taking place; [ii] the witness
resides or may be found; [iii] the evidence
may be found, at the option of petitioner.
2. Comment/Opposition – must be filed within
fifteen (15) days from service of the petition.
3. Court action – the court shall grant the
request for assistance in taking evidence and
shall order the petitioner to pay the cost
attendant to such assistance.
4. Relief against court action – the order of
granting the request for assistance in taking
evidence shall be immediately executory and
not subject to a motion for consideration.
H. Confidentiality/Protective Orders (Rules 10.1
– 10.10, Special ADR Rules)
The rules on confidentiality and protective orders
apply when:
1. An ADR proceeding is pending;
2. A party, counsel or witness disclosed
information or was otherwise compelled to
disclose information.
3. The disclosure was made under
circumstances that would create a
reasonable expectation, on behalf of the
source, that the information shall be kept
confidential;
4. The source of the information or the party
who made the disclosure has the right to
prevent such information from being
disclosed.
5. The source of the information or the party
who made the disclosure has not given his
express consent to any disclosure;
6. The applicant would be materially prejudiced
by an unauthorized disclosure of the
information obtained, or to be obtained,
during the ADR proceeding.
Hereunder is the procedure for the judicial
enforcement of confidentiality or protective
measures:
1. Petition or motion – if there is no pending
court proceeding in which the information
obtained in an ADR proceeding is required to
be divulged or being divulged, the initiatory
pleading shall be a petition to be filed with the
Regional Trial Court of the place where the
order is implemented. If there is already a
pending court proceeding, a separate
petition will be improper because that will
amount to multiplicity of suits and forum-
shopping.
2. Comment/Opposition – the comment or
opposition must be filed within fifteen (15)
days from service of the petition or motion.
3. Court action – if the petition is meritorious,
it shall issue an order enjoining the persons
involved from divulging confidential
information.
4. Relief against court action – the order
enjoining the disclosure of confidential
information shall immediately executory and
may not be enjoined while the order is being
questioned before the appellate court.
I. Confirmation, Recognition, Enforcement,
Correction, Vacation or Setting Aside of Arbitral
Awards (Rules 11 – 13, Special ADR Rules)
The circumstances covered by these rules are as
follows:
1. An arbitral award has been rendered either
in a
i. Domestic arbitration;
ii. Philippine ICA
 iii. Foreign arbitration resulting in a
convention award or non-
convention award
2. A party seeks to:
i. Confirm, a correct or vacate the
domestic arbitral award;
ii. Recognize and enforce, or set
aside the Philippine ICA award;
iii. Recognize and enforce the
foreign award or foreign as-in
convention award.
Ia. Confirmation, Correction, Vacation of Arbitral
Awards (Rules 11.1 – 11.9, Special ADR Rules)
The Special ADR Rules clarify that judicial
affirmation of a domestic arbitral award is done
through “confirmation” and not “recognition”.
“Recognition” pertains to the grant of legal effect by
Philippine courts to an arbitral award with foreign
elements.
A domestic arbitral award carries with it the
presumption that it was rendered in due course of
the arbitration and is, therefore, entitled to
confirmation by the court.
Causes of Action and Grounds
Three principal causes of action are covered by Rule
11 of the Special ADR Rules:
1. Confirmation of domestic arbitral award,
the petition for which can be filed at any
time after the lapse of thirty (30) days
from receipt by the petitioner of the
arbitral award.
2. Correction or modification of domestic
arbitral award, the petition for which
must be filed not later than thirty (30)
days from receipt of the arbitral award
unless the correction is applied for as
supplementary relief to a petition for
confirmation. The grounds are as follow:
a. Where there is evident
miscalculation of figures or an
evident mistake in the description
of any person, thing or property
referred to in the award;
b. Where the arbitrators have
awarded upon the matter not
submitted to them, not affecting
the merits of the decision upon
the matter submitted;
c. Where the arbitrators have
omitted to resolve an issue
submitted to them for resolution;
or
d. Where the award is imperfect in a
matter of form not affecting the
merits of controversy
3. Vacation of domestic arbitral award, the
petition or petition-in-opposition for which
must be filed not later than thirty (30)
days from the receipt of the arbitral
award. The ground are as follow:
a. The arbitral was procured through
corruption, fraud or other undue
means;
b. There was evident partiality or
corruption in the arbitral tribunal
or other undue means;
c. The arbitral tribunal was guilty of
misconduct or any form of
misbehavior that has materially
prejudiced the rights of any party;
d. One or more arbitrators was
disqualified to act as such under
the law and willfully refrained from
disclosing such disqualification;
e. The arbitral tribunal exceeded its
power, or so imperfectly executed
them, such that a complete, final
and definite award upon the
subject matter submitted to them
was not made;
f. The arbitration agreement did not
exist, or is invalid for any ground
for the revocation of a contract or
is otherwise unenforceable;
g. A party to the arbitration is a
minor or a person judicially
declared to be incompetent, in
which case, the petition shall be
filed only in behalf of the minor or
the incompetent person and shall
allege that:
• The other party had
knowingly entered into
submission or agreement
with such minor or
incompetent;
• The submission to
arbitration was made by a
guardian or guardian ad
litem who was not
authorized to do so by a
competent court.
The foregoing grounds are exclusive and
the court cannot consider any other grounds.
Combination of Causes of Action
The principle of combined reliefs is available in
proceedings allowing vacation or setting aside and
correction of the arbitral award. These are the
proceedings involving domestic arbitral awards and
Philippine ICA awards, but not for foreign arbitral
awards which cannot be vacated or set aside. The
initiatory relief which is pleaded in the initiatory
petition, while relief-in-opposition is that prayed for in
order to oppose initiatory relief. A supplementary
relief as in the case of a prayer for correction of an
arbitral award in support of a petition for
confirmation. An alternative relief as in the case of a
prayer for correction as an alternative to a petition to
vacate in opposition to a petition for confirmation.
The following combinations are possible:
1. Confirmation/vacation - a petition for
confirmation of a domestic award can be
opposed by a petition-in-opposition
seeking to vacate the award.
2. Confirmation/Correction – a petition for
confirmation of a domestic award may
include a petition for the correction of the
arbitral award. The correction of
arbitral award necessarily implies the
confirmation of the corrected or modified
award.
3. Vacation/Correction – a petition to vacate
an award may include a petition for the
correction of the domestic arbitral award.
It may also be opposed by a petition-in-
opposition seeking the correction or
modification of the award in order to
make the award acceptable to the party
seeking its vacation.
Combination is possible only in the following
instances:
1. If the petition to vacate, with filing a filing
period of thirty (30) days from the receipt
of the arbitral award, is filed first as it can
be opposed by a petition-in-opposition for
a confirmation which can be filed at any
time after the petition to vacate has been
filed.
2. Or if the arbitral award is received ahead
by the party intending to vacate it, in
which case, the filing period for the
petition to set aside the arbitral award will
overlap with the filing period for the
petition for confirmation.
Procedural Rules
Hereunder is the procedure for the judicial
confirmation:
1. Petition - The initiatory pleading for
confirmation, correction or vacation of
domestic arbitral award in the first instance is
a petition to be filed with RTC having
jurisdiction.
2. Comment/Opposition/Petition-in-opposition
– if the petition is sufficient in form and
substance, the court shall cause notice and
a copy of the petition to be delivered to the
respondent.
3. Reply – petitioner may file a reply within
fifteen (15) days from receipt of the comment
or opposition.
4. Hearing – the proceeding for the
confirmation, correction or vacation of
domestic arbitral award may be summary or
regular.
5. Court action – the court may either confirm or
vacate the award. It shall confirm the award
unless a ground exist to vacate the domestic
arbitral award.
6. Relief against court action – the order of the
court confirming, vacating or correcting a
domestic arbitral award may the subject of a
motion for reconsideration, appeal or petition
for certiorari.
Ib. Recognition, Enforcement or Setting Aside of ICA
Awards (Rules 12.1 to 12.14, Special ADR Rules)
Rule 12 of the Special ADR Rules governs
the recognition and enforcement or setting aside of
a Philippine ICA award.' A foreign ICA award shall
be treated as a foreign arbitral award, and its
recognition and, enforcement will be governed by
Rule 13 of the Special ADR Rules. In these
discussions, reference to "ICA" or International
Commercial Arbitration" pertains to "Philippine ICA."
On the other hand, ICA whose seat is other than the
Philippines are referred to as "foreign ICA."
Causes of Action
The following are the exclusive causes of action
covered by Rule 12 of the Special ADR Rules:
1. Recognition and enforcement of an ICA
award, the petition for which can be filed at
any award. The court shall grant the petition
unless any of the grounds for setting aside
the arbitral award is established. If a timely
petition to set aside has first been filed, the
oppositor must file therein and in opposition
 thereto the petition for recognition and
enforcement thereof within the period for
filing an opposition.
2. Setting aside an ICA award, the petition for
which should be filed within three (3) months
from the time the petitioner receives a copy
of the ICA award or the resolution of the
arbitral tribunal for the correction or
interpretation of the award or the rendition of
an additional award if a timely request has
been filed therefor. It can also be filed in
opposition to a petition for recognition and
enforcement provided it is not yet time-
barred.157 Be that as it may, the dismissal of
a petition to set aside for being time-barred
shall not automatically result in the approval
of the petition filed therein or in opposition
thereto for the recognition or enforcement of
the same award.
Judicial correction or modification is not available for
an ICA award. Any other judicial recourse against an
ICA award, such as an appeal, petition for review or
petition for certiorari, are disallowed and shall be
dismissed.
Grounds
The grounds for setting aside an ICA award or to
resist its enforcement which are the same grounds
for the non-recognition of foreign arbitral awards, are
as follows:
1. The party making the application furnishes
proof that:
a. 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;
b. 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;
c. 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
d. 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;
2. Or 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.
The foregoing grounds are similar to the grounds for
the non- recognition of foreign arbitral awards thus
showing that, while ICA proceedings in the
Philippines are domestic arbitral proceedings, ICA
awards are treated more like foreign arbitral awards;
hence, the requirement for the recognition, rather
than mere confirmation, of ICA awards.
As in the case of domestic arbitral awards, if a party
to the ICA is a minor or a person judicially declared
to be incompetent, the petition to set aside the ICA
award shall be filed only on behalf of the minor or the
incompetent person, and shall allege that [i] the
other party had knowingly entered into a submission
or agreement with such minor or incompetent; and
[ii] the submission to arbitration was made by a
guardian or guardian ad litem who was not
authorized to do so by a competent court.
The court should disregard any other ground to set
aside or enforce the arbitral award, unless it
amounts to a violation of public policy.
Combination of Causes of Action
The same principle allowing combinations of reliefs
and the dismissal of petitions or petitions-in-
opposition seeking reliefs filed beyond the
reglementary periods applicable to the confirmation,
enforcement or setting aside of domestic arbitral
awards, are applicable to international commercial
arbitral awards.
Hence, petitions for recognition and enforcement
and setting aside of international commercial arbitral
awards rendered in the Philippines may be filed in
the first instance. They may also be filed by way of
petitions-in-opposition. Considering that the period
for filing a petition for the recognition of an ICA award
is anytime after it has been received by the party
seeking its recognition, and the period for filing a
petition for setting it aside is anytime within three (3)
months from receipt thereof by the party seeking to
set it aside, the possibility of filing a petition-in-
opposition is greater and the overlapping period
during which the petition-in-opposition can be filed is
longer, for ICA awards than those for domestic
arbitral awards. The proscription against forum
shopping is also strictly observed in the filing of
these combined petitions. Once a petition for
recognition has been filed in court, the adverse party
cannot file a separate petition for setting aside but
must seek that relief by filing a petition-in-opposition
for setting aside the arbitral award in the same
proceeding. Similarly, once a petition for setting
aside has been filed in court, the adverse party
cannot file a separate petition for recognition but
must seek that relief by filing a petition-in-opposition
for recognition in the same proceeding.
Procedural Rules
1. Petition. The petition shall be filed with
the Regional Trial Court [i] where the
arbitration proceedings were conducted;
[ii] where any of the assets to be attached
or levied upon is located; [iii] where the
act to be enjoined will be or is being
performed; [iv] where any of the parties
to the arbitration resides or has his place
of business; or [v] in the National Capital
Judicial Region, at the option of the
petitioner.
The petitions to set aside, for recognition
and enforcement, to set aside in
opposition to a petition for recognition or
enforcement, and for recognition and
enforcement in opposition to a petition to
set aside, shall be verified' and shall state
[1] the addresses of record of the parties;
[ii] that the arbitration agreement or
submission-exists; [iii] the names of the
arbitrators and proof of their
appointment; [iv] that an arbitral award
was issued and the date when the
petitioner received it; and [v] the relief
sought. The petitioner shall attach to the
petition [i] an authentic copy of the
arbitration agreement; [ii] an authentic
copy of the arbitral award; [iii] the
verification and certification against
forum shopping; and [iv] an authentic
copy of the appointment of the arbitrator
or the arbitral tribunal. In addition, the
petition to set aside and petition to set
aside in opposition to a petition for
recognition and enforcement should
state the grounds relied upon therefor.
2. Notice, opposition and reply. If the
petition is sufficient in form and
substance, the court shall cause a notice
and a copy of the petition to be delivered
to the respondent directing him to file an
opposition thereto, including a petition for
recognition or to set aside in opposition
thereto, if not yet time-barred, within
fifteen (15) days from receipt of the
petition. The petitioner may file a reply
within fifteen (15) days from receipt of the
opposition or petition in opposition.
3. Hearing. The court may conduct the
hearing through [i] the submission of
briefs of legal arguments if the issue is
mainly one of law; or [ii] the submission
of affidavits of witnesses, reply affidavits
and documents in support thereof if there
are issues of fact relating to the grounds
relied upon for the petition. Up to this
point, the proceedings are summary in
nature. If, on the basis of the petition, the
opposition, the affidavits and reply
affidavits, the court finds a need to
conduct an oral hearing, it shall set the
case for hearing during which the
affidavits of witnesses shall take the
place of their direct examination.' Upon
this stage, the proceedings become non-
summary in character.
4. Suspension of the proceedings. In a
petition to set aside, the court, upon
motion of party, may suspend the
 proceedings in order to give the arbitral
tribunal an opportunity to resume the
arbitral proceedings or take such other
action as will eliminate the grounds for
setting aside. The court, however, cannot
direct the arbitral tribunal to re- vise the
arbitral award one way or the other,
revise its findings of fact or conclusions
of law, or otherwise encroach upon the
independence of the arbitral tribunal in
making the final award.
Also, when the preliminary ruling of an
arbitral tribunal affirming its jurisdiction
has been appealed to the court, the
proceedings for setting aside may be
suspended to await the ruling of the court
on such pending appeal, or may be
consolidated with the earlier appeal.
5. Judgment. The arbitral award carries with
it the presumption of having been made
and released in due course and is subject
to enforcement by the court.' In resolving
the petition, the court shall either set
aside or enforce the arbitral award and
may award costs including attorney's
fees. The court shall not disturb the
arbitral tribunal's de- termination of facts
or interpretation of the law!
6. Relief from court action. The court order
setting aside, dismissing the petition to
set aside, recognizing and enforcing, or
dismissing the petition to recognize, an
ICA award may be the subject of a motion
for reconsideration or an appeal, but not
of a petition for certiorari.
A court order suspending the
proceedings to set aside an ICA award
and referring the case back to the arbitral
tribunal or adjourning or deferring a ruling
on a petition to set aside, or recognizing
and enforcing an ICA award, are
susceptible of motions for
reconsideration or petitions for certiorari.
A court order allowing a party to enforce
an award pending appeal or adjourning
or deferring a ruling on whether to set
aside or recognize and enforce an ICA
award may be the subject of a petition for
certiorari.
lc. Recognition and Enforcement of Foreign Arbitral
Awards (Rules 13.1 to 13.12, Special ADR Rules)
A foreign arbitral award is one that is made in a
country other than the Philippines. It includes an
international commercial arbitral award rendered in
an ICA whose seat is outside the Philippines. The
recognition and enforcement of foreign arbitral
awards is governed by the 1958 New York
Convention on the Recognition and Enforcement of
Foreign Arbitral Awards (New York Convention) and
Rule 13 of the Special ADR Rules.
Rule 13 of the Special ADR Rules is applicable only
to convention and as-in convention awards. A
convention award is a foreign arbitral award made in
a state which is a party to the New York Convention,
may be recognized and enforced by Philippine
courts by reasons of comity and reciprocity as if it is
a convention award.
Rule 13 is not applicable to foreign arbitral awards
rendered in a non-convention country which does
not extend comity or reciprocity to the Philippines
(non convention awards). They may nevertheless be
recognized and enforced under Section 48, Rule 39
of the 1997 Rules of Civil Procedure, which provides
that:
"SEC. 48. Effect of foreign judgments or final orders.
— The effect of a judgment or final order of a tribunal
of a foreign der country, having jurisdiction to render
the judgment or final order is as follows:
(a) In the case of a judgment or final order
upon a specific thing, the judgment or
final order is conclusive upon the title
to the thing: and
(b) In case of a judgment or final order
against a person, the judgment or final
order is presumptive evidence of a
right as between the parties and their
successor in interest by subsequent
title.
In either case, the judgment or final order may be
repelled by evidence of want of jurisdiction, want of
notice to the party, collusion, fraud, or clear mistake
of law or fact.
Philippine courts do not have the authority to set
aside, correct or modify foreign arbitral awards they
having been rendered under the authority and
jurisdiction of another state. This is rooted in the
international law principle of equality among states.
Thus, no state can exercise the power to review,
revise, amend, modify, supplant, set aside, alter,
revoke or cancel the decision of a foreign court or
tribunal. All that Philippine courts may do is to
recognize them or refuse to recognize them. Thus,
there is no rule or proceeding for the vacation or
setting aside of foreign arbitral awards. As such,
combination of reliefs is not available for foreign
arbitral awards.
The grounds upon which Philippine courts may
refuse recognition and enforcement to foreign
arbitral awards which, except for no. 1(e) below,
constitute the same grounds for setting aside an ICA
award, are the following:
1. The party making the application to
refuse recognition and enforcement
furnishes proof that:
a. 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;
b. 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;
c. 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
re- fused recognition;
d. 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
e. 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;
2. Or the court finds that:
a. The subject matter of the dispute is
not capable of settlement by
arbitration under Philippine law; or
b. The recognition or enforcement of
the award would be contrary to public
policy.
No other ground shall be considered by the court.
This exclusionary rule was applied by the Supreme
Court in the case of Tuna Processing, Inc. v.
Philippine Kingford, Inc., where the issue for
resolution was: "does a foreign corporation not
licensed to do business in the Philippines have legal
capacity to sue under the provisions of the
Alternative Dispute Resolution Act of 2004?" The
Supreme Court answered in the affirmative and held
that "the opposing party in an application for
recognition and enforcement of the [foreign] arbitral
award may raise only those grounds that were
enumerated under Article V of the New York
Convention, x x x not one of [which] x x x touched on
the capacity to sue of the party seeking the
recognition and enforcement of the award."
Procedural Rules
The following are the procedural rules in petitions for
the recognition or enforcement of convention and as-
in convention foreign arbitral awards:
1. Petition. The petition can be filed at any time
after receipt of the foreign arbitral award and
shall be filed with the Regional Trial Court [i]
where the assets to be attached or levied
upon are located; [ii] where the act to be
enjoined is being performed; [iii] where the
principal place of business in the Philippines
of any of the parties is located; [iv] if any of
the parties is an individual. where any of
those individuals resides; or [v] in the
National Capital Judicial Region, at the
option of the petitioner.
 In resolving the petition, the court shall either
The petition shall state [i] the addresses of [i] recognize and enforce; or [ii] refuse to
the parties; [ii] in the absence of any recognize or enforce the foreign arbitral
indication in the award, the country where the award, depending on the presence or
arbitral award was rendered and whether absence of any of the grounds to refuse the
such country is a signatory to the New York recognition or enforcement.
Convention; and [iii] the relief sought. The
petition should contain an [i] authentic copy The court may adjourn or defer the rendition
of the arbitration agreement; [ii] an authentic of a decision if in the meantime an
copy of the arbitral award, and [iii] a application for the setting aside or
translation of the arbitral award or the suspension of the award has been made with
agreement certified by an official, sworn a competent authority in the country where
translator, or a diplomatic or consular agent, the award was made. The court, upon the
if these documents are not in English. application of the petitioner, may require the
other party to give suitable security.
2. Notice and opposition. If the petition is
sufficient in form and substance, the court The court order recognizing and enforcing, or
shall cause notice and a copy of the petition refusing to recognize or enforce, a foreign arbitral
to be delivered to the respondent who may award, may be the subject of a motion for
file a verified opposition thereto within thirty reconsideration and an appeal, but not of a petition
(30) days from receipt of the notice and for certiorari. However, a court order allowing a party
petition. to enforce a foreign arbitral award pending appeal is
susceptible of a petition for certiorari.
3. Hearing. The court may conduct the hearing
through [i] the submission of briefs of legal
arguments if the issue is mainly one of law;
or [ii] the submission of affidavits of
witnesses, reply affidavits and documents in
support thereof if there are issues of fact
relating to the grounds relied upon for the
petition. The proceeding is summary up to
this stage. If, on the basis of the petition, the
opposition, the affidavits and reply affidavits,
the court finds a need to conduct an oral
hearing, it shall set the case for hearing
during which the affidavits of witnesses shall
take the place of their direct examination.
From this stage, the proceedings are non-
summary.

4. Decision. As in the case of an international

commercial arbitral award, it is presumed
that a foreign arbitral award was made and
released in due course of the arbitration and
is subject to enforcement by the court.
Having been rendered by a foreign arbitral
tribunal over which Philippine courts do not
have jurisdiction, the latter do not have the Written Report Prepared By:
judicial power to set aside, annul, vacate, or
modify the foreign arbitral award. Neither can o ALABA, Kerwin
the court disturb the arbitral tribunal's o BELLO, John
determination of facts or interpretation of the
o HONRADO, Adriana
law.
o LUBO, Ferdinand