ADR continuous notes
Advantages of ADR
1. Less time consuming,
2. less tedious
3. Less confrontational
4. More productive of goodwill and lasting
relationships
5. Parties are in control
a. Everything is in the hands of the
parties, including the proceedings
6. Privileged and confidential
a. No records (only with the arbitral
tribunal BUT it cannot be
published)
Party autonomy
 Freedom of parties to make arrangements
to resolve their own disputes.
 If there is no agreement, the tribunal will
have a hand in the arbitration and will
conduct it in a manner it deems
appropriate.
 Basis: Civil code, Art 1306
Case: DENR vs UCPB
Discussion
The case is unusual because it does not concern
about construction. The construction or the CIAC
supposedly only governs those construction disputes
submitted to them over which there is an arbitration
agreement.
That may be the case, but in this case, the parties
specifically picked out the CIAC rules of procedure to
govern their arbitration – even if the dispute is not a
construction dispute The parties actually did not
submit to the jurisdiction of CIAC but only borrowed
their rules.
SC said this is allowed. Since they submitted to the
rules of CIAC in the governance of their arbitration,
they are governed by such.
Special ADR rules
Special rules of court when part of arb proceedings
submitted to the court. There are certain arts that
can be submitted for resolution – the remedy is
similar to provisional remedies. (interim measures of
protection)
Applies during enforcement of arbitral award or
declaration of nullity of the arbitral award.
As to the arbitration proceedings, the procedure
chosen by the parties will govern the arbitration
proceeings.
Liability of ADR providers
Sec 5
The ADR providers and practitioners shall have the
same civil liability for the Acts done in the
performance of then duties as that of public officers
as provided in Section 38 (1), Chapter 9, Book of the
Administrative Code of 1987. – upon a clear showing
of :
1. bad faith
2. malice
3. gross negligence
(b) "ADR Provider" means institutions or persons
accredited as mediator, conciliator, arbitrator,
neutral evaluator, or any person exercising similar
functions in any Alternative Dispute Resolution
system. This is without prejudice to the rights of the
parties to choose nonaccredited individuals to act as
mediator, conciliator, arbitrator, or neutral evaluator
of their dispute.
Construction dispute
Construction disputes which fall within the original
and exclusive jurisdiction of the Construction
Industry Arbitration Commission (the "Commission")
shall include those between or among parties to, or
who are otherwise bound by, an arbitration
agreement, directly or by reference whether such
parties are project owner, contractor, subcontractor,
quantity surveyor, bondsman or issuer of an
insurance policy in a construction project.
The Commission shall continue to exercise original
and exclusive jurisdiction over construction disputes
although the arbitration is "commercial" pursuant to
Section 21 of this Act.
If a case is filed in court and in is a construction
dispute – dismiss the case
XPT if parties submit a written agreement to have
the case resolved by court instead of CIAC.
Reason: in a construction dispute, the process is
almost complete- CIAC can enforce judgment.
In a commercial dispute – even if submitted to an
arbitral institution, such institution has no power to
execute its own arbitral award – it has to go to court
for enforcement.
If any dispute other than construction– the court
will not dismiss the case but suspend the
proceedings.
Case: LM Power vs CIAC
The dispute here is with respect to discrepancies as
to amount of advances and billable accomplishment
of the project – it is a construction dispute and it is
the CIAC which has jurisdiction over the case.
Case: Federal Builders vs Power
Here, they had an agreement to arbitrate but
unsigned and when the dispute arose, there was a
request for arbitration – even if unsigned, it’s a
source for an agreement to arbitrate.
The council submitted a letter that it agreed to
arbitrate and asked for extension to file.
Case: Philrock vs CIAC
It originally started with RTC but dismissed due to an
arbitration agreement and submitted to CIAC. To
parties went to CIAC but there were issues as to
ADR continuous notes
inclusion of other officers in the proceedings. When
they could not agree, they withdrew their consent to
arbitrate and went back to the court but the court
did not accept.

Should CIAC resume proceedings? YES

There was an arbitration agreement. Once parties
agree, that vests jurisdiction to the tribunal. The only
thing that will terminate the jurisdiction is UNTIL
AND WHEN IT RENDERS AN AWARD. Jurisdiction is
NOT lost by mere withdrawal of parties.

Can CIAC award damages in this case?

YES.

Power of CIAC is clear-like an RTC has power to

resolve issues, so long as connected with
construction dispute.

It can also award damages based on evidence

presented by parties.

CIAC’s jurisdiction is complete and has power to

enforce its own award. No need to seek intervention
of court.

Can also award interests, atty’s fees and expenses of

litigation, other than damages.

Next time, proceed with mediation.

Assignment: watch a movie – DISCLOSURE

[Michael douglas and Demi moore]