DOMESTIC

Source

Binding Effect of Arbitral

Agreements

RA 9285
RA 876
Model Law

Treated like any other contract; not contrary to law, morals and good
customs, public order or public policy
Philippine courts are mandated to suspend actions filed by a party in
disregard of arbitral agreement

Scope of the Arbitration

Clause/Arbitral Issues

Interim Remedies

Parties are free to stipulate except the following:

a. Labor disputes
b. Disputes involving the civil status of persons
c. Disputes on the validity of marriage
d. Disputes concerning any ground for legal separation
e. Disputes involving jurisdiction of courts
f. Disputes on future legitime
g. Disputes involving criminal liability
h. Those which by law cannot be compromised
Before constitution of the arbitral tribunal from a court

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RA 9285

Civil Code Art. 2028-2046

International conventions and treaties (Model Law)

Jurisprudence
Arbitration agreements those agreements of parties to submit to
arbitration all or certain disputes which have arisen or which may arise
between them in respect of a defined legal relationship, whether
contractual or not, and may either be in form of an arbitration clause or
in a contract or separate agreement.
SAME WITH DOMESTIC
The arbitral tribunal may rule on its own jurisdiction, including any
objections with respect to the existence or validity of the arbitration
agreement.
If arbitral tribunal rules that it has jurisdiction any party may request
within 30 days after having received notice of that ruling to decide the
matter.
SAME

After from the arbitral tribunal

Finality of Arbitral Award

Interim relief:
a. To prevent irreparable loss or injury, e.g. attachment
b. To require security for the performance of an obligation;
c. To require the production and preservation of any evidence;
and
d. To compel any other act or omission.
Within 1 month from the time an arbitral award is rendered any party
may apply with the Phil. Court having jurisdiction over the same for an
order confirming the award.
An agreement by the parties that the arbitral award or decision shall be
final is valid under Phil. Law.

30 days from receipt of arbitral award

Request correction of typo errors

Make an additional award

Request the arbitral tribunal to interpret a specific point or part

in the arbitral award.
Grounds to set aside the arbitral award:

Incapacity of a party

Invalidity of the arbitration agreement

No notice given to the appointment of an arbitrator or of the

arbitration proceeding

Dispute beyond the scope of the terms of submission to the

arbitration

Composition of the tribunal or the arbitral procedure is not in

accordance with the agreement or public policy

ENFORCEMENT OF ARBITRATION AGREEMENTS

Petition to Compel Arbitration
No need to petition the court.
The party need only to apply to the Appointing authority, or in its default,

SAME.

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the court, to appoint arbitrator/s

Ex Parte Proceedings

A party to any arbitration may lodge its plea to compel arbitration with
the arbitral tribunal.
May proceed in the absence of any party who, after due notice, fails to be
present at such hearing or fails to obtain the adjournment thereof.
But the award will not be made solely on the default of a party
The party that fails to appear may still be given an opportunity to submit
evidence

ESTABLISHMENT OF THE ARBITRAL TRIBUNAL

The number of Arbitrators
By Agreement

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Unless otherwise agreed by the parties, if, without showing sufficient

cause:
a. The claimant fails to communicate his statement of claim in
accordance with Art 23 (1), the arbitral tribunal shall terminate
the proceedings;
b. The respondent fails to communicate his statement of defense
in accordance with Art 23(1), the arbitral tribunal shall
continue the proceedings without treating such failure in itself
as admission of the claimants allegations;
c. Any party fails to appear at the hearing or to produce
documentary evidence, the arbitral tribunal may continue the
proceedings and make the award on the evidence before it.
SAME

If NO Agreement:
3 Arbitrators.
Appointing Authority: Parties/the Court
Appointing Authority the person or institution name in the agreement
as the appointing authority; or the regular arbitration institution under
whose rules the arbitration is agreed to be conducted.
Failure to name the appointing authority:
IBP or in case of failure to act RTC

Time Limits

Significance: to aid the parties in the appointment, challenge and

termination of the mandate of an arbitrator or arbitrators where the
parties are unable to agree.
Agreement of the Parties.
The aggrieved party may seek aid of the appointing authority or in its
default, the court in appoint the arbitrator in case of failure of either
party to name his arbitrator within 30 days from receipt of demand for
arbitration.

Manner of Appointment

Time to Accept or Decline with 7 days from being notified of the

appointment.
1. Nomination of specific person/s
2. Nomination of ascertainable person/s
3. Stipulation of a specific method
4. Reference to institutional arbitration rules or arbitration law

SAME
But no specific period for the Arbitrator to accept of decline his
appointment.

SAME

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IF WITH AGREEMENT and 1 of them fails to act
Refer the appointment to the Appointing Authority or court, as
the case may be which shall appoint the arbitrator

Qualifications

Challenge

IF NO AGREEMENT
SAME
1. Be of legal age;
2. Have full enjoyment of his civil status
3. Know how to read and write
4. Not related by blood or by marriage within the 6th degree to
either party
5. No financial, fiduciary, or other interest in the controversy or
cause to be decided or in result of the proceedings; and
6. Have no personal basis which might prejudice the right of any
party to a fair and impartial award.
Qualification
Justifiable doubts as to his impartiality and independence
Reason which was known only after the appointment

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No specific qualifications. By Agreement of the parties.

IMPORTANT: IMPARTIALITY AND INDEPENDENCE

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Parties are FREE to agree on the challenge procedures

Within 15 days from knowledge
MUST BE WRITTEN
If challenge is rejected by the A.T.
Petition the appointing authority or the court to decide on the
challenge within 30 days from receipt of notice of rejection.
While the challenge is pending the AT may continue with the arbitral
proceedings and make an award.
By agreement of the parties or P50 per day.

Fees of arbitrators
PROCEDURE OF ARBITRATION
By Agreement; or The applicable arbitration law
Basic Pleadings
Submission Agreement
Written document wherein the parties agree to submit to
arbitration an already existing dispute.

Forms of Basic Pleadings

Basic contents of the

Demand/Request for Arbitration

Treated as a complaint or petition wherein he ultimate facts
involved in the dispute, the causes of action and relief demanded
are already asserte.
Claimaints statement of claim.
NO SPECIFIC FORM PRESCRIBED
But it must be in writing and signed by the party against whom
arbitration is sought or by his lawful agent.
Demand in writing and served upon the other party in person or by
registered mail.
Submission Agreement

By Agreement
SAME

Demand/Request for Arbitration

Simply specifies the BASIS of the claimants right to arbitrate
and An OUTLINE of the issues to be arbitrated.
Statement of claims later
SAME

SAME

Submission Agreement or
Demand/Request for
Arbitration

1.
2.

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Statement that the parties agree to submit the existing dispute
to arbitration.
Other matters:
a. Procedure for appointing an arbitrator
b. Governing arbitration law
c. Language of the arbitration
d. Arbitration procedure
e. Others

Answer & counterclaim

Demand/Request
Nature of the controversy,
Amount involved
Relief sought
True copy of the contract providing for arbitration
Time to agree on the arbitrator (if only one arbitrator)
Name the arbitrator selected and require the other party to
appoint his within 15 days after receipt (if 3 arbitrators); that
the two arbitrators must appoint the 3rd within 10 days from
notice.
Prefatory/introduction
Reservation of the right to raise other claims/issued in the
course of the arbitration;
Occasionally, a compilation f the partys documentary evidence.
NOT MANDATORY. Time depends on the agreement of the parties.

Content of Answer

No particular form

Counterclaim
Reply and its necessity
THE AWARD
Time to Render

Same rules as a statement of claim

NOT necessary nor essential

Forma and Content

Grounds and Procedure to
Quash/Vacate the Award

Within the period agreed upon

Absence of agreement within 30 days after closing of hearing extendible
by mutual consent
In writing and signed by the arbitrator/s
State the reasons upon which it is based.
Date and Place of arbitration
Sec 24 of RA 876:
Corruption, fraud or other means in procuring the award;
Evident partiality or corruption in the arbitrators or any of
them;
Misconduct f the arbitrators in refusing to postpone the hearing
upon sufficient cause shown or misconduct in refusing to hear
pertinent and material evidence;
Disqualification of one or more arbitrators and said
arbitrator/s refrained from disclosing such disqualification;
Any other misbehavior of the arbitrators by which the right of
the parties have been materially prejudiced; or
The arbitrators exceeded their powers or imperfectly executed

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DEMAND/REQUEST
Detail the dispute involved
Show that it is covered by an arbitration agreement.

Time depends on the agreement.

In case if failure to communicate his defense not considered as an
admission; proceedings will continue
Defense with respect to facts and issues raised by the claimant and other
matters that the parties agreed.
SAME
SAME
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Absence of agreement within a reasonable period of time.
SAME

A party to the arbitration agreement was under some incapacity;

or the said agreement is not valid under the law which the
parties have subjected it, or failing any indication thereon, under
the law of the Phils.; or
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
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.
The composition of the arbitral tribunal or the arbitral

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them such that a mutual, final and definite award was not made.

Confirmation and Enforcement

of Award

Same manner as final and executor decisions of the RTC.

Within 1 month after award is made any party may file a motion with
the RTC a motion to have the award confirmed with notice to the other
party.
Confirmation is necessary before it can be judicially enforced.
Has an effect of res judicata.

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procedure was not in accordance with the agreement of the
parties.
The subject matter of the dispute is not capable of settlement by
arbitration under the law of the Phils.
The award is in conflict with the public policy of the Phils.
Art. 35 of the Model Law
1. Recognized as binding and upon application in writing to the
competent court, shall be enforced subject to the provisions of
this article and of Art. 36
2. The party relying on an award or applying for its enforcement
shall supply the duly authenticated original award or a duly
certified copy thereof, and the original arbitration agreement or
certified copy.
3. Translation if not in the language of the country.
4. Arbitral awards under the NY Convention petitioner to
establish that the country in which the award was made is a
party to the convention
5. If not covered according the rules of the SC. Based on comity
and reciprocity.