9285 April 2, 2004 to act as mediator, conciliator, arbitrator,
AN ACT TO INSTITUTIONALIZE THE USE OF AN or neutral evaluator of their dispute. ALTERNATIVE DISPUTE RESOLUTION SYSTEM IN Whenever reffered to in this Act, the term THE PHILIPPINES AND TO ESTABLISH THE OFFICE "ADR practitioners" shall refer to FOR ALTERNATIVE DISPUTE RESOLUTION, AND individuals acting as mediator, conciliator, FOR OTHER PURPOSES arbitrator or neutral evaluator; Be it enacted by the Senate and House of (c) "Authenticate" means to sign, execute or Representatives of the Philippines in Congress adopt a symbol, or encrypt a record in assembled: whole or in part, intended to identity the CHAPTER 1 - GENERAL PROVISIONS authenticating party and to adopt, accept SECTION 1. Title. - This act shall be known as the or establish the authenticity of a record or "Alternative Dispute Resolution Act of 2004." term; SEC. 2. Declaration of Policy. - it is hereby declared (d) "Arbitration" means a voluntary dispute the policy of the State to actively promote party resolution process in which one or more autonomy in the resolution of disputes or the arbitrators, appointed in accordance with freedom of the party to make their own the agreement of the parties, or rules arrangements to resolve their disputes. Towards this promulgated pursuant to this Act, resolve a end, the State shall encourage and actively promote dispute by rendering an award; the use of Alternative Dispute Resolution (ADR) as (e) "Arbitrator" means the person an important means to achieve speedy and appointed to render an award, alone or impartial justice and declog court dockets. As such, with others, in a dispute that is the subject the State shall provide means for the use of ADR as of an arbitration agreement; an efficient tool and an alternative procedure for (f) "Award" means any partial or final the resolution of appropriate cases. Likewise, the decision by an arbitrator in resolving the State shall enlist active private sector participation issue in a controversy; in the settlement of disputes through ADR. This Act (g) "Commercial Arbitration" An shall be without prejudice to the adoption by the arbitration is "commercial if it covers Supreme Court of any ADR system, such as matter arising from all relationships of a mediation, conciliation, arbitration, or any commercial nature, whether contractual or combination thereof as a means of achieving speedy not; and efficient means of resolving cases pending before (h) "Confidential information" means any all courts in the Philippines which shall be governed information, relative to the subject of by such rules as the Supreme Court may approve mediation or arbitration, expressly from time to time. intended by the source not to be disclosed, SEC. 3. Definition of Terms. - For purposes of this or obtained under circumstances that Act, the term: would create a reasonable expectation on (a) "Alternative Dispute Resolution System" behalf of the source that the information means any process or procedure used to shall not be disclosed. It shall include (1) resolve a dispute or controversy, other than communication, oral or written, made in a by adjudication of a presiding judge of a dispute resolution proceedings, including court or an officer of a government agency, any memoranda, notes or work product of as defined in this Act, in which a neutral the neutral party or non-party third party participates to assist in the participant, as defined in this Act; (2) an resolution of issues, which includes oral or written statement made or which arbitration, mediation, conciliation, early occurs during mediation or for purposes of neutral evaluation, mini-trial, or any considering, conducting, participating, combination thereof; initiating, continuing of reconvening (b) "ADR Provider" means institutions or mediation or retaining a mediator; and (3) persons accredited as mediator, conciliator, pleadings, motions manifestations, witness arbitrator, neutral evaluator, or any statements, reports filed or submitted in person exercising similar functions in any an arbitration or for expert evaluation; Alternative Dispute Resolution system. This (i) "Convention Award" means a foreign is without prejudice to the rights of the arbitral award made in a Convention parties to choose nonaccredited individuals State; (j) "Convention State" means a State that (u) "Mini-Trial" means a structured dispute is a member of the New York Convention; resolution method in which the merits of a (k) "Court" as referred to in Article 6 of case are argued before a panel comprising the Model Law shall mean a Regional Trial senior decision makers with or without the Court; presence of a neutral third person after (l) "Court-Annexed Mediation" means any which the parties seek a negotiated mediation process conducted under the settlement; auspices of the court, after such court has (v) "Model Law" means the Model Law on acquired jurisdiction of the dispute; International Commercial Arbitration (m) "Court-Referred Mediation" means adopted by the United Nations Commission mediation ordered by a court to be on International Trade Law on 21 June conducted in accordance with the 1985; Agreement of the Parties when as action is (w) "New York Convention" means the prematurely commenced in violation of United Nations Convention on the such agreement; Recognition and Enforcement of Foreign (n) "Early Neutral Evaluation" means an Arbitral Awards approved in 1958 and ADR process wherein parties and their ratified by the Philippine Senate under lawyers are brought together early in a Senate Resolution No. 71; pre-trial phase to present summaries of (x) "Non-Convention Award" means a their cases and receive a nonbinding foreign arbitral award made in a State assessment by an experienced, neutral which is not a Convention State; person, with expertise in the subject in the (y) "Non-Convention State" means a State substance of the dispute; that is not a member of the New York (o) "Government Agency" means any Convention. government entity, office or officer, other (z) "Non-Party Participant" means a than a court, that is vested by law with person, other than a party or mediator, quasi-judicial power to resolve or who participates in a mediation proceeding adjudicate dispute involving the as a witness, resource person or expert; government, its agencies and (aa) "Proceeding" means a judicial, instrumentalities, or private persons; administrative, or other adjudicative (p) "International Party" shall mean an process, including related pre-hearing entity whose place of business is outside the motions, conferences and discovery; Philippines. It shall not include a domestic (bb) "Record" means an information subsidiary of such international party or a written on a tangible medium or stored in coventurer in a joint venture with a party an electronic or other similar medium, which has its place of business in the retrievable form; and Philippines. (cc) "Roster" means a list of persons The term foreigner arbitrator shall mean a qualified to provide ADR services as person who is not a national of the neutrals or to serve as arbitrators. Philippines. SEC. 4. Electronic Signatures in Global and E- (q) "Mediation" means a voluntary process Commerce Act. - The provisions of the Electronic in which a mediator, selected by the Signatures in Global and E-Commerce Act, and its disputing parties, facilitates communication implementing Rules and Regulations shall apply to and negotiation, and assist the parties in proceeding contemplated in this Act. reaching a voluntary agreement regarding SEC. 5. Liability of ADR Provider and Practitioner. - a dispute. The ADR providers and practitioners shall have the (r) "Mediator" means a person who same civil liability for the Acts done in the conducts mediation; performance of then duties as that of public officers (s) "Mediation Party" means a person who as provided in Section 38 (1), Chapter 9, Book of participates in a mediation and whose the Administrative Code of 1987. consent is necessary to resolve the dispute; SEC. 6. Exception to the Application of this Act. - (t) "Mediation-Arbitration" or Med-Arb is The provisions of this Act shall not apply to a step dispute resolution process involving resolution or settlement of the following: (a) labor both mediation and arbitration; disputes covered by Presidential Decree No. 442, otherwise known as the Labor Code of the Philippines, as amended and its Implementing Rules confidential information by reason of and Regulations; (b) the civil status of persons; (c) his/her profession. the validity of a marriage; (d) any ground for legal (e) The protections of this Act shall separation; (e) the jurisdiction of courts; (f) future continue to apply even of a mediator is legitime; (g) criminal liability; and (h) those which found to have failed to act impartially. by law cannot be compromised. (f) a mediator may not be called to testify CHAPTER 2 - MEDIATION to provide information gathered in SEC. 7. Scope. - The provisions of this Chapter shall mediation. A mediator who is wrongfully cover voluntary mediation, whether ad hoc or subpoenaed shall be reimbursed the full cost institutional, other than court-annexed. The term of his attorney's fees and related expenses. "mediation' shall include conciliation. SEC. 10. Waiver of Confidentiality. - A privilege SEC. 8. Application and Interpretation. - In arising from the confidentiality of information may applying construing the provisions of this Chapter, be waived in a record, or orally during a proceeding consideration must be given to the need to promote by the mediator and the mediation parties. candor or parties and mediators through A privilege arising from the confidentiality of confidentiality of the mediation process, the policy information may likewise be waived by a nonparty of fostering prompt, economical, and amicable participant if the information is provided by such resolution of disputes in accordance with the nonparty participant. principles of integrity of determination by the A person who discloses confidential information shall parties, and the policy that the decision-making be precluded from asserting the privilege under authority in the mediation process rests with the Section 9 of this Chapter to bar disclosure of the parties. rest of the information necessary to a complete SEC. 9. Confidentiality of Information. - understanding of the previously disclosed Information obtained through mediation information. If a person suffers loss or damages in a proceedings shall be subject to the following judicial proceeding against the person who made principles and guidelines: the disclosure. (a) Information obtained through A person who discloses or makes a representation mediation shall be privileged and about a mediation is preclude from asserting the confidential. privilege under Section 9, to the extent that the (b) A party, a mediator, or a nonparty communication prejudices another person in the participant may refuse to disclose and may proceeding and it is necessary for the person prevent any other person from disclosing a prejudiced to respond to the representation of mediation communication. disclosure. (c) Confidential Information shall not be SEC. 11. Exceptions to Privilege. - subject to discovery and shall be (a) There is no privilege against disclosure inadmissible if any adversarial proceeding, under Section 9 if mediation whether judicial or quasi-judicial, However, communication is: evidence or information that is otherwise (1) in an agreement evidenced by admissible or subject to discovery does not a record authenticated by all become inadmissible or protected from parties to the agreement; discovery solely by reason of its use in a (2) available to the public or that mediation. is made during a session of a (d) In such an adversarial proceeding, the mediation which is open, or is following persons involved or previously required by law to be open, to the involved in a mediation may not be public; compelled to disclose confidential (3) a threat or statement of a information obtained during mediation: (1) plan to inflict bodily injury or the parties to the dispute; (2) the mediator commit a crime of violence; or mediators; (3) the counsel for the (4) internationally used to plan a parties; (4) the nonparty participants; (5) crime, attempt to commit, or any persons hired or engaged in connection commit a crime, or conceal an with the mediation as secretary, ongoing crime or criminal activity; stenographer, clerk or assistant; and (6) (5) sought or offered to prove or any other person who obtains or possesses disprove abuse, neglect, abandonment, or exploitation in a proceeding in which a public recommendation, finding, or other communication agency is protecting the interest of regarding a mediation to a court or agency or other an individual protected by law; authority that make a ruling on a dispute that is but this exception does not apply the subject of a mediation, except: where a child protection matter is (a) Where the mediation occurred or has referred to mediation by a court terminated, or where a settlement was or a public agency participates in reached. the child protection mediation; (b) As permitted to be disclosed under (6) sought or offered to prove or Section 13 of this Chapter. disprove a claim or complaint of SEC. 13. Mediator's Disclosure and Conflict of professional misconduct or Interest. - The mediation shall be guided by the malpractice filed against mediator following operative principles: in a proceeding; or (a) Before accepting a mediation, an (7) sought or offered to prove or individual who is requested to serve as a disprove a claim of complaint of mediator shall: professional misconduct of (1) make an inquiry that is malpractice filed against a party, reasonable under the nonparty participant, or circumstances to determinate representative of a party based on whether there are any known conduct occurring during a facts that a reasonable individual mediation. would consider likely to affect the (b) There is no privilege under Section 9 if impartiality of the mediator, a court or administrative agency, finds, including a financial or personal after a hearing in camera, that the party interest in the outcome of the seeking discovery of the proponent of the mediation and any existing or past evidence has shown that the evidence is not relationship with a party or otherwise available, that there is a need for foreseeable participant in the the evidence that substantially outweighs mediation; and the interest in protecting confidentiality, (2) disclosure to the mediation and the mediation communication is parties any such fact known or sought or offered in: learned as soon as is practical (1) a court proceeding involving a before accepting a mediation. crime or felony; or (b) If a mediation learns any fact described (2) a proceeding to prove a claim in paragraph (a) (1) of this section after or defense that under the law is accepting a mediation, the mediator shall sufficient to reform or avoid a disclose it as soon as practicable. liability on a contract arising out At the request of a mediation party, an individual of the mediation. who is requested to serve as mediator shall disclose (c) A mediator may not be compelled to his/her qualifications to mediate a dispute. provide evidence of a mediation This Act does not require that a mediator shall have communication or testify in such special qualifications by background or profession proceeding. unless the special qualifications of a mediator are (d) If a mediation communication is not required in the mediation agreement or by the privileged under an exception in subsection mediation parties. (a) or (b), only the portion of the SEC. 14. Participation in Mediation. - Except as communication necessary for the otherwise provided in this Act, a party may application of the exception for designate a lawyer or any other person to provide nondisclosure may be admitted. The assistance in the mediation. A lawyer of this right admission of particular evidence for the shall be made in writing by the party waiving it. A limited purpose of an exception does not waiver of participation or legal representation may render that evidence, or any other be rescinded at any time. mediation communication, admissible for SEC. 15. Place of Mediation. - The parties are free any other purpose. to agree on the place of mediation. Failing such SEC. 12. Prohibited Mediator Reports. - A mediator agreement, the place of mediation shall be any place may not make a report, assessment, evaluation, convenient and appropriate to all parties. SEC. 16. Effect of Agreement to Submit Dispute to provisions of Executive Order No. 1008 for Mediation Under Institutional Rules. - An mediated dispute outside of the CIAC. agreement to submit a dispute to mediation by any CHAPTER 3 - OTHER ADR FORMS institution shall include an agreement to be bound SEC. 18. Referral of Dispute to other ADR Forms. - by the internal mediation and administrative The parties may agree to refer one or more or all policies of such institution. Further, an agreement to issues arising in a dispute or during its pendency to submit a dispute to mediation under international other forms of ADR such as but not limited to (a) mediation rule shall be deemed to include an the evaluation of a third person or (b) a mini-trial, agreement to have such rules govern the mediation (c) mediation-arbitration, or a combination thereof. of the dispute and for the mediator, the parties, For purposes of this Act, the use of other ADR their respective counsel, and nonparty participants forms shall be governed by Chapter 2 of this Act to abide by such rules. except where it is combined with arbitration in In case of conflict between the institutional which case it shall likewise be governed by Chapter mediation rules and the provisions of this Act, the 5 of this Act. latter shall prevail. CHAPTER 4 - INTERNATIONAL COMMERCIAL SEC. 17. Enforcement of Mediated Settlement ARBITRATION Agreement. - The mediation shall be guided by the SEC. 19. Adoption of the Model Law on following operative principles: International Commercial Arbitration. - (a) A settlement agreement following International commercial arbitration shall be successful mediation shall be prepared by governed by the Model Law on International the parties with the assistance of their Commercial Arbitration (the "Model Law") adopted respective counsel, if any, and by the by the United Nations Commission on International mediator. Trade Law on June 21, 1985 (United Nations The parties and their respective counsels Document A/40/17) and recommended approved shall endeavor to make the terms and on December 11, 1985, copy of which is hereto condition thereof complete and make attached as Appendix "A". adequate provisions for the contingency of SEC. 20. Interpretation of Model Law. - In breach to avoid conflicting interpretations interpreting the Model Law, regard shall be had to of the agreement. its international origin and to the need for (b) The parties and their respective uniformity in its interpretation and resort may be counsels, if any, shall sign the settlement made to the travaux preparatories and the report agreement. The mediator shall certify that of the Secretary General of the United Nations he/she explained the contents of the Commission on International Trade Law dated settlement agreement to the parties in a March 25, 1985 entitled, "International language known to them. Commercial Arbitration: Analytical Commentary on (c) If the parties so desire, they may Draft Trade identified by reference number A/CN. deposit such settlement agreement with 9/264." the appropriate Clerk of a Regional Trial SEC. 21. Commercial Arbitration. - An arbitration Court of the place where one of the parties is "commercial" if it covers matters arising from all resides. Where there is a need to enforce relationships of a commercial nature, whether the settlement agreement, a petition may contractual or not. Relationships of a transactions: be filed by any of the parties with the same any trade transaction for the supply or exchange of court, in which case, the court shall goods or services; distribution agreements; proceed summarily to hear the petition, in construction of works; commercial representation or accordance with such rules of procedure as agency; factoring; leasing, consulting; engineering; may be promulgated by the Supreme licensing; investment; financing; banking; insurance; Court. joint venture and other forms of industrial or (d) The parties may agree in the business cooperation; carriage of goods or passengers settlement agreement that the mediator by air, sea, rail or road. shall become a sole arbitrator for the SEC. 22. Legal Representation in International dispute and shall treat the settlement Arbitration. - In international arbitration conducted agreement as an arbitral award which shall in the Philippines, a party may be presented by any be subject to enforcement under Republic person of his choice. Provided, that such Act No. 876, otherwise known as the representative, unless admitted to the practice of Arbitration Law, notwithstanding the law in the Philippines, shall not be authorized to appear as counsel in any Philippine court, or any Model Law shall be performed by the Appointing other quasi-judicial body whether or not such Authority, unless the latter shall fail or refuse to act appearance is in relation to the arbitration in which within thirty (30) days from receipt of the request he appears. in which case the applicant may renew the SEC. 23. Confidential of Arbitration Proceedings. - application with the Court. The arbitration proceedings, including the records, SEC. 28. Grant of Interim Measure of Protection. - evidence and the arbitral award, shall be considered (a) It is not incompatible with an confidential and shall not be published except (1) arbitration agreement for a party to with the consent of the parties, or (2) for the request, before constitution of the tribunal, limited purpose of disclosing to the court of relevant from a Court an interim measure of documents in cases where resort to the court is protection and for the Court to grant such allowed herein. Provided, however, that the court in measure. After constitution of the arbitral which the action or the appeal is pending may issue tribunal and during arbitral proceedings, a a protective order to prevent or prohibit disclosure request for an interim measure of of documents or information containing secret protection or modification thereof, may be processes, developments, research and other made with the arbitral tribunal or to the information where it is shown that the applicant extent that the arbitral tribunal has no shall be materially prejudiced by an authorized power to act or is unable to act effectively, disclosure thereof. the request may be made with the Court. SEC. 24. Referral to Arbitration. - A court before The arbitral tribunal is deemed constituted which an action is brought in a matter which is the when the sole arbitrator or the third subject matter of an arbitration agreement shall, if arbitrator who has been nominated, has at least one party so requests not later that the accepted the nomination and written pre-trial conference, or upon the request of both communication of said nomination and parties thereafter, refer the parties to arbitration acceptance has been received by the party unless it finds that the arbitration agreement is null making request. and void, inoperative or incapable of being (b) The following rules on interim or performed. provisional relief shall be observed: SEC. 25. Interpretation of the Act. - In interpreting (1) Any party may request that the Act, the court shall have due regard to the provision relief be granted against policy of the law in favor of arbitration. Where the adverse party: action is commenced by or against multiple parties, (2) Such relief may be granted: one or more of whom are parties who are bound by (i) to prevent irreparable the arbitration agreement although the civil action loss or injury: may continue as to those who are not bound by (ii) to provide security for such arbitration agreement. the performance of any SEC. 26. Meaning of "Appointing Authority.". - obligation; "Appointing Authority" as used in the Model Law (iii) to produce or shall mean the person or institution named in the preserve any evidence; or arbitration agreement as the appointing authority; (iv) to compel any other or the regular arbitration arbitration institution appropriate act or under whose rules the arbitration is agreed to be omission. conducted. Where the parties have agreed to submit (3) The order granting provisional their dispute to institutional arbitration rules, and relief may be conditioned upon the unless they have agreed to a different procedure, provision of security or any act or they shall be deemed to have agreed to procedure omission specified in the order. under such arbitration rules for the selection and (4) Interim or provisional relief is appointment of arbitrators. In ad hoc arbitration, requested by written application the default appointment of an arbitrator shall be transmitted by reasonable means made by the National President of the Integrated to the Court or arbitral tribunal as Bar of the Philippines (IBP) or his duly authorized the case may be and the party representative. against whom the relief is sought, SEC. 27. What Functions May be Performed by describing in appropriate detail Appointing Authority. - The functions referred to in the precise relief, the party Articles 11(3), 11(4), 13(3) and 14(1) of the against whom the relief is requested, the grounds for the decision or other communication by the arbitral relief, and evidence supporting the tribunal. request. The arbitral tribunal may order that any (5) The order shall be binding documentary evidence shall be accompanied by a upon the parties. translation into the language or languages agreed (6) Either party may apply with upon by the parties or determined in accordance the Court for assistance in with paragraph 1 of this section. Implementing or enforcing an CHAPTER 5 - DOMESTIC ARBITRATION interim measure ordered by an SEC. 32. Law Governing Domestic Arbitration. - arbitral tribunal. Domestic arbitration shall continue to be governed (7) A party who does not comply by Republic Act No. 876, otherwise known as "The with the order shall be liable for Arbitration Law" as amended by this Chapter. The all damages resulting from term "domestic arbitration" as used herein shall noncompliance, including all mean an arbitration that is not international as expenses, and reasonable defined in Article (3) of the Model Law. attorney's fees, paid in obtaining SEC. 33. Applicability to Domestic Arbitration. - the order's judicial enforcement. Article 8, 10, 11, 12, 13, 14, 18 and 19 and 29 SEC. 29. Further Authority for Arbitrator to Grant to 32 of the Model Law and Section 22 to 31 of Interim Measure of Protection. - Unless otherwise the preceding Chapter 4 shall apply to domestic agreed by the parties, the arbitral tribunal may, at arbitration. the request of a party, order any party to take such CHAPTER 6 - ARBITRATION OF CONSTRUCTION interim measures of protection as the arbitral DISPUTES tribunal may consider necessary in respect of the SEC. 34. Arbitration of Construction Disputes: subject matter of the dispute following the rules in Governing Law. - The arbitration of construction Section 28, paragraph 2. Such interim measures disputes shall be governed by Executive Order No. may include but shall not be limited to preliminary 1008, otherwise known as the Constitution injuction directed against a party, appointment of Industry Arbitration Law. receivers or detention, preservation, inspection of SEC. 35. Coverage of the Law. - Construction property that is the subject of the dispute in disputes which fall within the original and exclusive arbitration. Either party may apply with the Court jurisdiction of the Construction Industry Arbitration for assistance in implementing or enforcing an Commission (the "Commission") shall include those interim measures ordered by an arbitral tribunal. between or among parties to, or who are otherwise SEC. 30. Place of Arbitration. - The parties are free bound by, an arbitration agreement, directly or by to agree on the place of arbitration. Failing such reference whether such parties are project owner, agreement, the place of arbitration shall be in contractor, subcontractor, quantity surveyor, Metro Manila, unless the arbitral tribunal, having bondsman or issuer of an insurance policy in a regard to the circumstances of the case, including construction project. the convenience of the parties shall decide on a The Commission shall continue to exercise original different place of arbitration. and exclusive jurisdiction over construction disputes The arbitral tribunal may, unless otherwise agreed although the arbitration is "commercial" pursuant to by the parties, meet at any place it considers Section 21 of this Act. appropriate for consultation among its members, SEC. 36. Authority to Act as Mediator or for hearing witnesses, experts, or the parties, or for Arbitrator. - By written agreement of the parties inspection of goods, other property or documents. to a dispute, an arbitrator may act as mediator SEC. 31. Language of the Arbitration. - The parties and a mediator may act as arbitrator. The parties are free to agree on the language or languages to be may also agree in writing that, following a used in the arbitral proceedings. Failing such successful mediation, the mediator shall issue the agreement, the language to be used shall be English settlement agreement in the form of an arbitral in international arbitration, and English or Filipino award. for domestic arbitration, unless the arbitral tribunal SEC. 37. Appointment of Foreign Arbitrator. - The shall determine a different or another language or Construction Industry Arbitration Commission languages to be used in the proceedings. This (CIAC) shall promulgate rules to allow for the agreement or determination, unless otherwise appointment of a foreign arbitrator or coarbitrator specified therein, shall apply to any written or chairman of a tribunal a person who has not statement by a party, any hearing and any award, been previously accredited by CIAC: Provided, That: (a) the dispute is a construction dispute in B. FOREIGN ARBITRAL AWARDS which one party is an international party SEC. 42. Application of the New York Convention. - (b) the person to be appointed agreed to The New York Convention shall govern the abide by the arbitration rules and policies recognition and enforcement of arbitral awards of CIAC; covered by the said Convention. (c) he/she is either coarbitrator upon the The recognition and enforcement of such arbitral nomination of the international party; or awards shall be filled with regional trial court in he/she is the common choice of the two accordance with the rules of procedure to be CIAC-accredited arbitrators first appointed promulgated by the Supreme Court. Said procedural one of whom was nominated by the rules shall provide that the party relying on the international party; and award or applying for its enforcement shall file with (d) the foreign arbitrator shall be of the court the original or authenticated copy of the different nationality from the international award and the arbitration agreement. If the award party. or agreement is not made in any of the official SEC. 38. Applicability to Construction Arbitration. - languages, the party shall supply a duly certified The provisions of Sections 17 (d) of Chapter 2, and translation thereof into any of such languages. Section 28 and 29 of this Act shall apply to The applicant shall establish that the country in arbitration of construction disputes covered by this which foreign arbitration award was made is a Chapter. party to the New York Convention. SEC. 39. Court to Dismiss Case Involving a If the application for rejection or suspension of Construction Dispute. - A regional trial court which enforcement of an award has been made, the a construction dispute is filed shall, upon becoming regional trial court may, if it considers it proper, aware, not later than the pretrial conference, that vacate its decision and may also, on the application the parties had entered into an arbitration to be of the party claiming recognition or enforcement of conducted by the CIAC, unless both parties, assisted the award, order the party to provide appropriate by their respective counsel, shall submit to the security. regional trial court a written agreement exclusive SEC. 43. Recognition and Enforcement of Foreign for the Court, rather than the CIAC, to resolve the Arbitral Awards Not Covered by the New York dispute. Convention. - The recognition and enforcement of CHAPTER 7 - JUDICIAL REVIEW OF ARBITRAL foreign arbitral awards not covered by the New AWARDS York Convention shall be done in accordance with A. DOMESTIC AWARDS procedural rules to be promulgated by the Supreme SEC. 40. Confirmation of Award. - The Court. The Court may, grounds of comity and confirmation of a domestic arbitral award shall be reciprocity, recognize and enforce a nonconvention governed by Section 23 of R.A. 876. award as a convention award. A domestic arbitral award when confirmed shall be SEC. 44. Foreign Arbitral Award Not Foreign enforced in the same manner as final and executory Judgment. - A foreign arbitral award when decisions of the Regional Trial Court. confirmed by a court of a foreign country, shall be The confirmation of a domestic award shall be recognized and enforced as a foreign arbitral award made by the regional trial court in accordance with and not a judgment of a foreign court. the Rules of Procedure to be promulgated by the A foreign arbitral award, when confirmed by the Supreme Court. regional trial court, shall be enforced as a foreign A CIAC arbitral award need not be confirmed by arbitral award and not as a judgment of a foreign the regional trial court to be executory as provided court. under E.O. No. 1008. A foreign arbitral award, when confirmed by the SEC. 41. Vacation Award. - A party to a domestic regional trial court, shall be enforced in the same arbitration may question the arbitral award with manner as final and executory decisions of courts of the appropriate regional trial court in accordance law of the Philippines. with the rules of procedure to be promulgated by SEC. 45. Rejection of a Foreign Arbitral Award. - A the Supreme Court only on those grounds party to a foreign arbitration proceeding may enumerated in Section 25 of Republic Act No. 876. oppose an application for recognition and Any other ground raised against a domestic arbitral enforcement of the arbitral award in accordance award shall be disregarded by the regional trial with the procedural rules to be promulgated by the court. Supreme Court only on those grounds enumerated under Article V of the New York Convention. Any other ground raised shall be disregarded by the improve ADR practices in accordance with world regional trial court. standards. SEC. 46. Appeal from Court Decisions on Arbitral SEC. 50. Powers and Functions of the Office for Awards. - A decision of the regional trial court Alternative Dispute Resolution. - The Office for confirming, vacating, setting aside, modifying or Alternative Dispute Resolution shall have the correcting an arbitral award may be appealed to following powers and functions: the Court of Appeals in accordance with the rules of (a) To formulate standards for the training procedure to be promulgated by the Supreme Court. of the ADR practitioners and service The losing party who appeals from the judgment of providers; the court confirming an arbitral award shall (b) To certify that such ADR practitioners required by the appealant court to post and ADR service providers have undergone counterbond executed in favor of the prevailing the professional training provided by the party equal to the amount of the award in office; accordance with the rules to be promulgated by the (c) To coordinate the development, Supreme Court. implementation, monitoring, and SEC. 47. Venue and Jurisdiction. - Proceedings for evaluation of government ADR programs; recognition and enforcement of an arbitration (d) To charge fees for their services; and agreement or for vacation, setting aside, correction (e) To perform such acts as may be or modification of an arbitral award, and any necessary to carry into effect the provisions application with a court for arbitration assistance of this Act. and supervision shall be deemed as special SEC. 51. Appropriations. - The amount necessary to proceedings and shall be filled with the regional trial carry out the provisions of this Act shall be included court (i) where arbitration proceedings are in the General Appropriations Act of the year conducted; (ii) where the asset to be attached or following its enactment into law and thereafter. levied upon, or the act to be enjoined is located; (iii) SEC. 52. Implementing Rules and Regulations where any of the parties to the dispute resides or (IRR). - Within one (1) month after the approval of has his place of business; or (iv) in the National this Act, the secretary of justice shall convene a Judicial Capital Region, at the option of the committee that shall formulate the appropriate applicant. rules and regulations necessary for the SEC. 48. Notice of Proceeding to Parties. - In a implementation of this Act. The committee, special proceeding for recognition and enforcement composed of representatives from: of an arbitral award, the Court shall send notice to (a) the Department of Justice; the parties at their address of record in the (b) the Department of Trade and Industry; arbitration, or if any party cannot be served notice (c) the Department of the Interior and at such address, at such party's last known address. Local Government; The notice shall be sent at least fifteen (15) days (d) the president of the Integrated Bar of before the date set for the initial hearing of the the Philippines; application. (e) A representative from the arbitration CHAPTER 8 - MISCELLANEOUS PROVISIONS profession; and SEC. 49. Office for Alternative Dispute Resolution. - (f) A representative from the mediation There is hereby established the Office for Alternative profession; and Dispute Resolution as an attached agency to the (g) A representative from the ADR Department of Justice (DOJ) which shall have a organizations Secretariat to be headed by an executive director. shall within three (3) months after convening, The executive director shall be appointed by the submit the IRR to the Joint Congressional Oversight President of the Philippines. Committee for review and approval. The Oversight The objective of the office are: Committee shall be composed of the chairman of (a) to promote, develop and expand the use the Senate Committee on Justice and Human of ADR in the private and public sectors; Rights, chairman of the House Committee on and Justice, and one (1) member each from the To assist the government to monitor, study and majority and minority of both Houses. evaluate the use by the public and the private sector The Joint Oversight Committee shall become functus of ADR, and recommend to Congress needful officio upon approval of the IRR. statutory changes to develop. Strengthen and SEC. 53. Applicability of the Katarungan Pambarangay. - This Act shall not be interpreted to repeal, amend or modify the jurisdiction of the Katarungan Pambarangay under Republic Act No. 7160, otherwise known as the Local Government Code of 1991. SEC. 54. Repealing Clause. - All laws, decrees, executive orders, rules and regulations which are inconsistent with the provisions of this Act are hereby repealed, amended or modified accordingly. SEC. 55. Separability Clause. - If for any reason or reasons, any portion or provision of this Act shall be held unconstitutional or invalid, all other parts or provisions not affected shall thereby continue to remain in full force and effect. SEC. 56. Effectivity. - This act shall take effect fifteen days (15) after its publication in at least two (2) national newspapers of general circulation.