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b. Parties
i. (p) "International Party"
shall mean an entity whose
place of business is outside the
Philippines. It shall not include
a domestic subsidiary of such
international party or a
coventurer in a joint venture
with a party which has its place
of business in the Philippines.
ii. (s) "Mediation Party" means
a person who participates in a
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procedure as may be promulgated by the For purposes of this Act, the use of other
Supreme Court. ADR forms shall be governed by Chapter
2 of this Act except where it is combined
c. Enforcement with arbitration in which case it shall
i. Summary procedure likewise be governed by Chapter 5 of this
(c) If the parties so desire, they Act.
may deposit such settlement b. Kinds
agreement with the appropriate i. Third party evaluation
Clerk of a Regional Trial Court of ii. Mini trial
the place where one of the Arbitration
parties resides. Where there is a
need to enforce the settlement I. Governing Law
agreement, a petition may be a. International Commercial
filed by any of the parties with Arbitration
the same court, in which case, b. Domestic Arbitration
the court shall proceed c. Construction Disputes
summarily to hear the petition, II. Kinds and Governing Laws
in accordance with such rules of a. Non commercial
procedure as may be i. Domestic
promulgated by the Supreme ii. International
Court. b. Commercial
SEC. 21. Commercial Arbitration. - An
ii. Possibility of mediation and arbitration is "commercial" if it covers
arbitration matters arising from all relationships of a
1. mediator as sole commercial nature, whether contractual
arbitrator or not. Relationships of a transactions:
(d) The parties may agree any trade transaction for the supply or
in the settlement exchange of goods or services;
agreement that the distribution agreements; construction of
mediator shall become a works; commercial representation or
sole arbitrator for the agency; factoring; leasing, consulting;
dispute and shall treat the engineering; licensing; investment;
settlement agreement as financing; banking; insurance; joint
an arbitral award which venture and other forms of industrial or
shall be subject to business cooperation; carriage of goods
enforcement under or passengers by air, sea, rail or road.
Republic Act No. 876,
otherwise known as the i. International
Arbitration Law, ii. Domestic
notwithstanding the 1. Generally
provisions of Executive SEC. 32. Law Governing
Order No. 1008 for Domestic Arbitration. -
mediated dispute outside of Domestic arbitration shall
the CIAC. continue to be governed by
Republic Act No. 876,
IX. Other forms of ADR otherwise known as "The
a. Referral Arbitration Law" as
SEC. 18. Referral of Dispute to other amended by this Chapter.
ADR Forms. - The parties may agree to The term "domestic
refer one or more or all issues arising in a arbitration" as used herein
dispute or during its pendency to other shall mean an arbitration
forms of ADR such as but not limited to that is not international as
(a) the evaluation of a third person or (b) defined in Article (3) of the
a mini-trial, (c) mediation-arbitration, or a Model Law.
combination thereof. SEC. 33. Applicability to
Domestic Arbitration. -
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Article 8, 10, 11, 12, 13, 14, SEC. 25. Interpretation of the Act.
18 and 19 and 29 to 32 of - In interpreting the Act, the court
the Model Law and Section shall have due regard to the policy of
22 to 31 of the preceding the law in favor of arbitration. Where
Chapter 4 shall apply to action is commenced by or against
domestic arbitration. multiple parties, one or more of whom
are parties who are bound by the
2. Construction arbitration agreement although the
SEC. 34. Arbitration of civil action may continue as to those
Construction Disputes: who are not bound by such arbitration
Governing Law. - The agreement.
arbitration of construction i. In favor of arbitration
disputes shall be governed ii. However,multiple parties
by Executive Order No.
1008, otherwise known as
the Constitution Industry
Arbitration Law. III. Definition of Commercial Arbitration
SEC. 21. Commercial Arbitration. - An
International Commercial Arbitration arbitration is "commercial" if it covers matters
arising from all relationships of a commercial
I. Adoption of UNCITRAL Model Law nature, whether contractual or not. Relationships
SEC. 19. Adoption of the Model Law on of a transactions: any trade transaction for the
International Commercial Arbitration. - supply or exchange of goods or services;
International commercial arbitration shall be distribution agreements; construction of works;
governed by the Model Law on International commercial representation or agency; factoring;
Commercial Arbitration (the "Model Law") leasing, consulting; engineering; licensing;
adopted by the United Nations Commission on investment; financing; banking; insurance; joint
International Trade Law on June 21, 1985 (United venture and other forms of industrial or business
Nations Document A/40/17) and recommended cooperation; carriage of goods or passengers by
approved on December 11, 1985, copy of which air, sea, rail or road.
is hereto attached as Appendix "A".
IV. Parties
II. Rules of Interpretation a. Representation
a. For model law SEC. 22. Legal Representation in
SEC. 20. Interpretation of Model International Arbitration. - In
Law. - In interpreting the Model Law, international arbitration conducted in the
regard shall be had to its international Philippines, a party may be presented by
origin and to the need for uniformity any person of his choice. Provided, that
in its interpretation and resort may be such representative, unless admitted to
made to the travaux preparatories the practice of law in the Philippines, shall
and the report of the Secretary not be authorized to appear as counsel in
General of the United Nations any Philippine court, or any other quasi-
Commission on International Trade judicial body whether or not such
Law dated March 25, 1985 entitled, appearance is in relation to the arbitration
"International Commercial Arbitration: in which he appears.
Analytical Commentary on Draft Trade i. Maybe a lawyer
identified by reference number A/CN. ii. But if non-lawyer,not
9/264." appear in judicial andquasi
judicial
i. International character
ii. Travaux preparatories V. Confidentiality of Arbitration
iii. Report of SecGen of Proceedings
Uncitral (1985) SEC. 23. Confidential of Arbitration
Proceedings. - The arbitration proceedings,
b. For Act including the records, evidence and the arbitral
award, shall be considered confidential and shall
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not be published except (1) with the consent of Where the parties have agreed to submit
the parties, or (2) for the limited purpose of their dispute to institutional arbitration
disclosing to the court of relevant documents in rules, and unless they have agreed to a
cases where resort to the court is allowed herein. different procedure, they shall be deemed
Provided, however, that the court in which the to have agreed to procedure under such
action or the appeal is pending may issue a arbitration rules for the selection and
protective order to prevent or prohibit disclosure appointment of arbitrators. In ad hoc
of documents or information containing secret arbitration, the default appointment of an
processes, developments, research and other arbitrator shall be made by the National
information where it is shown that the applicant President of the Integrated Bar of the
shall be materially prejudiced by an authorized Philippines (IBP) or his duly authorized
disclosure thereof. representative.
a. Generally,proceedings Confidential; Model Law Article 6. Court or other
Including records evidence and authority for certain functions of
arbitral award arbitration assistance and supervision
i. Except The functions referred to in articles 11(3),
1. consent of parties 11(4), 13(3), 14, 16(3) and 34(2) shall be
2. disclosing relevant performed by ... [Each State enacting this
documents where model law specifi es the court, courts or,
resort to courts are where referred to therein, other authority
allowed competent to perform these functions.]
b. Power of court to issue protective
order, material prejudice i. Agreement:
i. Secret processes person,authority,institution
ii. Developments ii. National President,IBP
iii. Research
iv. Other information b. If Institution, their rules on
appointment apply
VI. Referral to arbitration SEC. 26. Meaning of "Appointing
SEC. 24. Referral to Arbitration. - A court Authority.". - "Appointing Authority" as
before which an action is brought in a matter used in the Model Law shall mean the
which is the subject matter of an arbitration person or institution named in the
agreement shall, if at least one party so requests arbitration agreement as the appointing
not later that the pre-trial conference, or upon authority; or the regular arbitration
the request of both parties thereafter, refer the arbitration institution under whose rules
parties to arbitration unless it finds that the the arbitration is agreed to be conducted.
arbitration agreement is null and void, Where the parties have agreed to submit
inoperative or incapable of being performed. their dispute to institutional arbitration
rules, and unless they have agreed to a
a. Upon request of one party different procedure, they shall be deemed
b. Except, arbitration agreement is to have agreed to procedure under such
i. Null and void arbitration rules for the selection and
ii. Inoperative appointment of arbitrators. In ad hoc
iii. Incapable of being arbitration, the default appointment of an
performed arbitrator shall be made by the National
President of the Integrated Bar of the
VII. “Appointing Authority” Philippines (IBP) or his duly authorized
a. Who representative.
SEC. 26. Meaning of "Appointing
Authority.". - "Appointing Authority" as c. Functions
used in the Model Law shall mean the i. Appointment of arbitrator
person or institution named in the Model Law Article 11.
arbitration agreement as the appointing Appointment of arbitrators
authority; or the regular arbitration (3) Failing such agreement,
institution under whose rules the
arbitration is agreed to be conducted.
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2. The arbitral tribunal shall issue an The Commission shall continue to exercise
order for the termination of the arbitral original and exclusive jurisdiction over
proceedings when: construction disputes although the arbitration is
(a) the claimant withdraws his claim, "commercial" pursuant to Section 21 of this Act.
unless the respondent objects thereto III. Authority to act as mediator or
and the arbitral tribunal recognizes a arbitrator
legitimate interest on his part in SEC. 36. Authority to Act as Mediator or
obtaining a final settlement of the Arbitrator. - By written agreement of the parties
dispute; to a dispute, an arbitrator may act as mediator
(b) the parties agree on the and a mediator may act as arbitrator. The parties
termination of the proceedings; may also agree in writing that, following a
(c) the arbitral tribunal finds that the successful mediation, the mediator shall issue the
continuation of the proceedings has for settlement agreement in the form of an arbitral
any other reason become unnecessary award.
or impossible. a. By agreement of the parties
3. The mandate of the arbitral tribunal b. Mediated settlement can be an
terminates with the termination of the arbitral award
arbitral proceedings, subject to the
provisions of articles 33 and 34 (4). IV. Appointment of Foreign arbitrator
SEC. 37. Appointment of Foreign Arbitrator.
- The Construction Industry Arbitration
III. Applicability of Chapter 4 Commission (CIAC) shall promulgate rules to
allow for the appointment of a foreign arbitrator
or coarbitrator or chairman of a tribunal a person
who has not been previously accredited by CIAC:
Provided, That:
(a) the dispute is a construction dispute in which
one party is an international party
(b) the person to be appointed agreed to abide by
the arbitration rules and policies of CIAC;
(c) he/she is either coarbitrator upon the
nomination of the international party; or he/she is
the common choice of the two CIAC-accredited
arbitrators first appointed one of whom was
nominated by the international party; and
Arbitration of Construction Disputes (d) the foreign arbitrator shall be of different
nationality from the international party.
I. Applicability of EO 1008
SEC. 34. Arbitration of Construction
Disputes: Governing Law. - The arbitration of V. Applicability of provisions of ADR
construction disputes shall be governed by law
Executive Order No. 1008, otherwise known as SEC. 38. Applicability to Construction
the Constitution Industry Arbitration Law. Arbitration. - The provisions of Sections 17 (d)
of Chapter 2, and Section 28 and 29 of this Act
II. Coverage of Law shall apply to arbitration of construction disputes
SEC. 35. Coverage of the Law. - Construction covered by this Chapter.
disputes which fall within the original and a. Provisions in settlement agreement
exclusive jurisdiction of the Construction Industry b. Grant of interim measures of
Arbitration Commission (the "Commission") shall protection
include those between or among parties to, or c. Additional grant of interim
who are otherwise bound by, an arbitration measures of protection
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.
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a. Generally
RA 876 Section 23. Confirmation of
award. - At any time within one month
after the award is made, any party to
the controversy which was arbitrated
may apply to the court having
jurisdiction, as provided in section
twenty-eight, for an order confirming
the award; and thereupon the court
must grant such order unless the
award is vacated, modified or
corrected, as prescribed herein. Notice
of such motion must be served upon
the adverse party or his attorney as
prescribed by law for the service of
such notice upon an attorney in action
in the same court.
i. One month from award
ii. Court with jurisdiction
iii. Documents to accompany
motion
Section 28. Papers to
accompany motion to
confirm, modify, correct, or
vacate award. - The party
moving for an order
confirming, modifying,
correcting, or vacating an
award, shall at the time that
such motion is filed with the
court for the entry of
judgment thereon also file
the following papers with
the Clerk of Court;
(a) The submission, or
contract to arbitrate; the
appointment of the
JUDICIAL REVIEW OF ARBITRAL AWARDS arbitrator or arbitrators; and
each written extension of
Domestic Arbitral Awards the time, if any, within
I. Confirmation of Awards which to make the award.
SEC. 40. Confirmation of Award. - The (b) A verified of the award.
confirmation of a domestic arbitral award shall be (c) Each notice, affidavit, or
governed by Section 23 of R.A. 876. other paper used upon the
A domestic arbitral award when confirmed shall application to confirm,
be enforced in the same manner as final and modify, correct or vacate
executory decisions of the Regional Trial Court. such award, and a copy of
The confirmation of a domestic award shall be each of the court upon such
made by the regional trial court in accordance application.
with the Rules of Procedure to be promulgated by The judgment shall be
the Supreme Court. docketed as if it were
rendered in an action.
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which the arbitrators may make a decision shall regional trial court in accordance with
be deemed applicable to the new arbitration and the rules of procedure to be
to commence from the date of the court's order. promulgated by the Supreme Court.
Where the court vacates an award, costs, not Said procedural rules shall provide that
exceeding fifty pesos and disbursements may be the party relying on the award or
awarded to the prevailing party and the payment applying for its enforcement shall file
thereof may be enforced in like manner as the with the court the original or
payment of costs upon the motion in an action. authenticated copy of the award and
the arbitration agreement. If the award
a. Awards procured by corruption, or agreement is not made in any of the
froud, or other undue means official languages, the party shall
b. Evident partiality supply a duly certified translation
c. Or corruption of arbitrator thereof into any of such languages.
d. Arbitrator misconduct in refusing to The applicant shall establish that the
postpone or hear evidence country in which foreign arbitration
e. Disqualification of arbitrator was award was made is a party to the New
not made known York Convention.
f. Arbitrators exceeded powers, If the application for rejection or
imperfect execution no final award suspension of enforcement of an
award has been made, the regional
IV. Modifying or correcting award trial court may, if it considers it proper,
RA 876 Section 25. Grounds for modifying or vacate its decision and may also, on
correcting award. - In any one of the following the application of the party claiming
cases, the court must make an order modifying or recognition or enforcement of the
correcting the award, upon the application of any award, order the party to provide
party to the controversy which was arbitrated: appropriate security.
(a) Where there was an evident miscalculation of Article 35 - Recognition and
figures, or an evident mistake in the description enforcement
of any person, thing or property referred to in the 1. An arbitral award, irrespective of
award; or the country in which it was made, shall
(b) Where the arbitrators have awarded upon a be recognized as binding and, upon
matter not submitted to them, not affecting the application in writing to the competent
merits of the decision upon the matter submitted; court, shall be enforced subject to the
or provisions of this article and of article
(c) Where the award is imperfect in a matter of 36.
form not affecting the merits of the controversy, 2. The party relying on an award or
and if it had been a commissioner's report, the applying for its enforcement shall
defect could have been amended or disregarded supply the duly authenticated original
by the court. award or a duly certified copy thereof,
The order may modify and correct the award so and the original arbitration agreement
as to effect the intent thereof and promote justice referred to in article 7 or a duly
between the parties. certified copy thereof. If the award or
agreement is not made in an official
International Commercial Awards language of this State, the party shall
supply a duly certified translation
Recognition and Enforcement thereof into such language.
a. Applicability of new york
convention
SEC. 42. Application of the New b. Grounds for refusing
York Convention. - The New York Article 36 - Grounds for refusing
Convention shall govern the recognition or enforcement
recognition and enforcement of arbitral 1. Recognition or enforcement of an
awards covered by the said arbitral award, irrespective of the
Convention. country in which it was made, may be
The recognition and enforcement of refused only:
such arbitral awards shall be filled with
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modifying or correcting an arbitral award may be business; or (iv) in the National Judicial Capital
appealed to the Court of Appeals in accordance Region, at the option of the applicant.
with the rules of procedure to be promulgated by
the Supreme Court. a. Where arbitration was
The losing party who appeals from the judgment conducted
of the court confirming an arbitral award shall b. Where assets to be attached
required by the appealant court to post c. Where parties reside or place
counterbond executed in favor of the prevailing of business
party equal to the amount of the award in d. In national capital judicial
accordance with the rules to be promulgated by region
the Supreme Court.
a. Notice of proceeding
SEC. 48. Notice of Proceeding to Indicative Checklist for Contract Provision
Parties. - In a special proceeding for
recognition and enforcement of an Forms of ADR, including third party
arbitral award, the Court shall send evaluation , mediation, arbitration
notice to the parties at their address of Reference to Arbitration
record in the arbitration, or if any party Mediation
cannot be served notice at such Special Qualification of Mediator
address, at such party's last known SEC. 13. Mediator's Disclosure and
address. The notice shall be sent at Conflict of Interest. - The mediation shall
least fifteen (15) days before the date be guided by the following operative
set for the initial hearing of the principles:
application. xxxThis Act does not require that a
mediator shall have special qualifications
III. Venue and jurisdiction,choice of applicant by background or profession unless the
SEC. 47. Venue and Jurisdiction. - Proceedings special qualifications of a mediator are
for recognition and enforcement of an arbitration required in the mediation agreement or by
agreement or for vacation, setting aside, the mediation parties.
correction or modification of an arbitral award, Waivers of Legal Representation
and any application with a court for arbitration SEC. 14. Participation in Mediation. -
assistance and supervision shall be deemed as Except as otherwise provided in this Act, a
special proceedings and shall be filled with the party may designate a lawyer or any other
regional trial court (i) where arbitration person to provide assistance in the
proceedings are conducted; (ii) where the asset mediation. A lawyer of this right shall be
to be attached or levied upon, or the act to be made in writing by the party waiving it. A
enjoined is located; (iii) where any of the parties waiver of participation or legal
to the dispute resides or has his place of
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representation may be rescinded at any provisions of Executive Order No. 1008 for
time. mediated dispute outside of the CIAC.
Place of Mediation Appointing authority in arbitration
SEC. 15. Place of Mediation. - The parties
are free to agree on the place of
mediation. Failing such agreement, the
place of mediation shall be any place
convenient and appropriate to all parties.
Institutional Mediation
SEC. 16. Effect of Agreement to Submit
Dispute to Mediation Under Institutional
Rules. - An agreement to submit a dispute
to mediation by any institution shall
include an agreement to be bound by the
internal mediation and administrative
policies of such institution. Further, an
agreement to submit a dispute to
mediation under international mediation
rule shall be deemed to include an
agreement to have 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.
In case of conflict between the
institutional mediation rules and the
provisions of this Act, the latter shall
prevail.
Enforcement, preparation of
agreement
SEC. 17. Enforcement of Mediated
Settlement Agreement. - The mediation
shall be guided by the following operative
principles:
(a) A settlement agreement following
successful mediation shall be prepared by
the parties with the assistance of their
respective counsel, if any, and by the
mediator.
The parties and their respective counsels
shall endeavor to make the terms and
condition thereof complete and make
adequate provisions for the contingency of
breach to avoid conflicting interpretations
of the agreement.