INTERNATIONAL

COMMERCIAL ARBITRATION

Rules on Recognition and

Enforcement of Award
• Foreign Arbitral Award shall be recognized as
binding and shall be enforced subject to the
provisions of this article and of Article 4.36
2 Kinds

• Convention Award
The petitioner shall establish that the country in which the foreign
arbitration award was made is a party to the New York Convention

• Non-Convention Award
Covers countries that are not party to the New York Convention
Award
Shall be done in accordance with the procedural rules to be
promulgated by the Supreme Court
 

Petition for recognition and enforcement of

arbitral awards shall be filed with the RTC in
accordance with Special ADR Rules;
(Rule 12 A.M. 07-11-08-SC)
In petition to set aside:

• Can no longer be filed after the lapse of three(3)

months;
• Dismissal will not automatically result in the approval of
petition for recognition and enforcement
• Failure to file petition to set aside shall preclude a party
from raising grounds to resist enforcement of the award.
Requirements

The party relying on an award or applying for its

enforcement shall file with the RTC the following:

• Original or duly authenticated copy of the award

• Original or duly authenticated copy of the arbitration
agreement in an official language
***in case the agreement is not in an official
language, the country shall submit a duly
certified translation of the agreement to the
country’s official language
Confirmation by FOREIGN COURTS
• A foreign arbitral award when confirmed by a foreign
court is not a judgement of a foreign court, it shall be
recognized and enforce as FOREIGN ARBITRAL
AWARD.
Confirmation by RTC
• 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.
 
Vacation/Suspension of
Arbitral Award
 Rejection/suspen
Application sion of
enforcement of
award

RTC

Application:
Proper/Meritorious

Vacate/Suspen
d
RTC to Render Decision
Issue order to
adverse party to
file appropriate
security
With respect to Non-Convention Arbitral Awards
Rejection/suspen
Application sion of
enforcement of
award
Counter-Petition RTC

If objections Application:
are curable Proper/Meritorious
Vacate/Suspen
1. Remit award to
d
arbitral tribunal RTC to Render Decision
2. Suspend the Issue order to losing
recognition and party for filing of
enforcement appropriate security
proceedings
3. Issue order to losing
party for filing of
appropriate security
If the RTC has recognized the arbitral award
but there is an application for rejection
and/or suspension of enforcement of the
award filed, the RTC may do the following:

• If the application for rejection/suspension is

proper, VACATE or SUSPEND the decision the
enforcement of the award; or
Court Action

• Order the other party seeking rejection or suspension to

provide appropriate security, upon the application of
the party claiming for the recognition and enforcement
of the award.
  
Grounds for Refusing Recognition or Enforcement of
Convention and Non-Convention
Award
With Respect to Convention Award

1. Incapacity, invalid agreement under the law to

which the parties have subjected it for;

2. No proper notice of the appointment of an

arbitration of the arbitral proceedings was
furnished to the party against whom the award is
invoked
3. The award deals with dispute not contemplated
by or not falling within the terms of the
submission to arbitration; or

the award contains decisions on matters beyond

the scope of the submission to arbitration (those
within the scope of the submission to arbitration
may be recognized and enforced);
4. The composition of the arbitral tribunal or the arbitral
procedure as not in accordance with the agreement of
the parties; or the agreement was not in accordance with
the law of the country where the arbitration took place;

5. The award has not become binding on the parties or

has been set aside or suspended by a court of the
country in which, or under the law of which, that award
was made;
6. The subject-matter of the dispute is not
capable of settlement by arbitration under the law
of Philippines; or

7. The recognition or enforcement of the award

would be contrary to the public policy of the
Philippines.
With Respect to Non-convention
Award
 
1. Absent proof of the existence of comity
and reciprocity , the non-convention award
cannot be recognized and enforced but may be
deemed as presumptive evidence of a right as
between the parties in accordance with Sec. 48 of
the Rules of Court;
2. If the RTC has recognized the arbitral award but there
is an application for rejection and/or suspension of
enforcement of the award filed, the RTC may do the
following:
 
If the application for rejection/suspension is proper,
VACATE or SUSPEND the decision the enforcement of
the award; or
Order the other party seeking rejection or
suspension to provide appropriate security, upon
the application of the party claiming for the
recognition and enforcement of the award.
3. If the RTC finds the counter-petition for the
rejection of the arbitral award to be proper but the
objections may be rectified or cured

- remit the award to the arbitral tribunal for

appropriate action;
- in the meantime suspend the recognition and
enforcement proceedings; and
- may also order the counter-petitioner to provide
appropriate security, upon motion of the petitioner
(Art. 4.36).
 ART. 4.37
Remedy of the Losing Party
1. APPEAL

Appeal to the Court of Appeals in accordance with the

rules of procedure to be promulgated by the Supreme
Court (Art. 4.37)

Requirement:
The losing party who appeals from the judgment of the
court recognizing and enforcing an arbitral award shall be
required by the Court of Appeals to POST A COUNTER-
BOND executed in favor of the prevailing party equal to the
amount of the award in accordance with the Special ADR
rules (Art. 4.37)
When is a right to appeal waived?
***Any stipulation by the parties that the
arbitral tribunal’s award or decision
shall be final and not appealable is
VALID;

hence such stipulation carries with it a

waiver of the right to appeal from an
arbitral award (Art. 4.37)
 
2. CERTIORARI under Rule 65

• If appeal is deemed waived by virtue of

the parties stipulations, the parties may in
accordance with the implementing rules
resort to judicial review by way of
certiorari under Rule 65 of the Rules
of Court (Art. 4.37)
 ART. 4.38
 
SPECIAL PROCEEDINGS:
1. Recognition and enforcement of an
arbitration agreement;

2. Vacation or setting aside of an arbitral

award;

3. Any application with a court for arbitration

assistance and supervision, except appeal
Venue: RTC where

1. The arbitration proceedings are conducted;

2. Where the asset to be attached or levied upon,
or the act to be enjoined is located;
3. Where any of the parties to the dispute resides
or has its place of business; or
4. In the national Capital Judicial Region at the
option of the applicant
 ART. 4.39
SERVICE OF NOTICE
It is mandatory for the court to send
NOTICE to the parties
• 15 days before the date set for the initial
hearing of the application;
• at their address of record in the arbitration,
or if any party cannot be served notice at
such address, at such party’s last known
address
 ART. 4.40
ENTITLEMENT TO LEGAL
REPRESENTATION
For ICA conducted in the Philippines

• a party may be represented by any person of

his/her choice

• such representative shall not be authorized

to appear as counsel in any Philippine
court or any other quasi-judicial body
whether or not such appearance is in relation to
the arbitration in which he/she appears in the
Philippines
 ART. 4.41
CONFIDENTIALITY OF
ARBITRATION PROCEEDINGS
GR: Arbitration proceedings, records, evidence
and the arbitral award shall be considered
confidential and shall not be published.

XPN:
(a) with consent of the parties
(b) for the limited purpose of disclosing to the
court relevant documents in cases where resort to
the court is allowed therein
 ART. 4.42
SUMMARY NATURE OF
PROCEEDINGS BEFORE THE
COURT
A petition for recognition and
enforcement of awards brought before
the court shall be heard and dealt with
summarily in accordance with the
Special ADR Rules
 ART. 4.43
DEATH OF A PARTY (after making a
submission or a contract to arbitrate)
• the proceedings may ne begun or continued
upon the application of or notice to his/her
executor or administrator , or temporary
administrator of his/her estate;

• the court may issue an order extending the time

within which notice of a motion to recognize or
vacate an award
• if death happened after an award has been
recognized, filed or delivered, the court must
enter judgment in the name of the original party;

• proceedings are the same as where the party

dies after a verdict
 ART. 4.44
RULES ON MULTI-
PARTY ARBITRATION
When a single arbitration involves more
than two parties, the foregoing rules, to the
extent possible, shall be used, subject to
such modifications consistent with the rules
on Commercial International Arbitration as
the arbitral tribunal shall deem appropriate
to address possible complexities of a multi-
party arbitration.
 ART. 4.45
CONSOLIDATION OF PROCEEEDINGS
AND CONCURRENT HEARINGS
GR: the tribunal has no power to order consolidation of
arbitration proceedings on concurrent parties unless the
parties agree to confer such power on the arbitral
tribunal.
Exception:
• The parties and the arbitral tribunal may agree
• That the arbitration proceedings shall be consolidated
with other arbitration proceedings; or
• That concurrent hearings shall be held, on such terms
as may be agreed
 ART. 4.46
COSTS OF ARBITRATION IN THE
ARBITRAL TRIBUNAL’S AWARD
A. The arbitral tribunal shall fix the costs of arbitration in its award

1. Fees to be stated separately for each

arbitral tribunal and shall be fixed by the
arbitral tribunal itself;
2. Travel and other expenses incurred by
the arbitrators;
3. Costs of expert advice and of other
assistance required by the arbitral tribunal;
4. Costs for legal representation and
assistance of the s successful party if such
costs were claimed during the arbitral
proceedings, and only to the extent that
the arbitral tribunal determines that the
amount of such cost is reasonable; and
5. Any fees and expenses of the appointing
authority.
B. Fees shall be reasonable in amount , taking into account the following:

1. Amount in dispute
2. Complexity of the subject matter
3. Time spent by the arbitrators
4. Any other relevant circumstances of
the case
If with schedule of fees:

• If an appointing authority has issued a

schedule of fees for arbitration cases in
international cases which it administers,
the arbitral tribunal shall take that schedule
of fees into account to the extent that it
considers appropriate in the circumstances
of the case;
• If not, any party may, at any time request the appointing
authority

to furnish a statement setting forth the basis for

establishing fees;

if the appointing authority consents to such, the

arbitral tribunal shall take that statement into account to
the extent that it considers appropriate in the
circumstances of the case;
 
C. When a party so requests for a statement
setting forth the basis for establishing fees, the
arbitral tribunal, shall fix its fees only AFTER
CONSULTATION with the appointing authority
which may make any comment it deems
appropriate to the arbitral tribunal concerning the
fees;
D. In principle, the costs of arbitration shall be
borne by the unsuccessful party;

however the tribunal may apportion each of

such costs between the parties if it determines
that apportionment is reasonable, taking into
account the circumstances of the case.
Legal representation costs and assistance:

the tribunal is FREE TO DETERMINE which

party shall bear the costs, or may
APPORTION such costs between the parties
if appointment is found reasonable;
When the arbitral tribunal issues an order
for the termination of the arbitral
proceedings, or makes an award on agreed
terms, the tribunal shall fix the costs of
arbitration
DEPOSIT/SUPPLEMENTARY
DEPOSITS/ACCOUNTING

E. The arbitral tribunal, on its establishment, may

request each party to deposit an equal
amount as an advance for the
(a) costs in the fees of the arbitrators;
(b) travel and other expenses; and
(c) cost of expert’s advice;
Supplementary Deposits:
Who may Request and When

• During the proceedings, the tribunal may request for

supplementary deposits from the parties;
• If an appointing authority has been agreed upon by the
parties and upon request for supplementary deposits of
a party and with the former’s consent, the tribunal shall
fix the amounts of any deposits or supplementary
deposits only AFTER CONSULTATION with the appointing
authority which may make any comment it deems
appropriate concerning the amount of such deposits
and supplementary deposits
Non-payment of Deposits
• Failure to pay in full of the required deposits
within thirty (30) days after receipt of the
request, the tribunal shall inform the parties that
the require payment be paid, otherwise, the
tribunal may order the SUSPENSION or
TERMINATION of the arbitral proceedings.
 
 
Accounting of Deposits
• Accounting of the deposits received
and return of any unexpended
balance to the parties shall be
rendered by the tribunal after the
award has been made.