Recognition & Enforcement of

ICA & Foreign Arbitral Awards

By: Cyndall Jardinel
 Definition of Terms
• Recognition
– Legal acknowledgment
– Capability to be enforced under Philippine law
• Confirmation
– Judicial Affirmation of a domestic arbitral award
• Enforcement
– Execution and implementation of the foreign arbitral
award through PH legal processes
• Foreign Arbitral Award (FAA)
– One rendered in an arbitration whose seat is outside
of the PH
• DOMESTIC ARBITRAL AWARD
–Does not require recognition
–Needs confirmation before it can be
implemented
–Can be vacated and set aside
• FOREIGN ARBITRAL AWARD
–Needs to be recognized in order to be
enforced in the Philippines
–Can only be recognized or refused
recognition
 JURISDICTION, VENUE AND NATURE
OF PROCEEDINGS
• JURISDICTION
– Vested by ADR on RTCs
• VENUE
– Where arbitration proceedings are conducted
– Where the asset to be attached or act to be enjoined
is located
– Place of business of any party
– National Capital Judicial Region
• NATURE
– All proceedings, except for appeal are deemed
SPECIAL PROCEEDINGS
– Summary in Nature
 REQUISITES FOR
RECOGNITION OF FAA
• CONVENTION AWARD
– FAA made in a state which is a party to the NY
Convention
• NON CONVENTION AWARD
– FAA made in a state, not a party to the NY
Convention
• AS-IN CONVETION AWARD
– Made in a state not a party to the NY Convention
but may be recognized by reason of comity and
reciprocity
 GROUNDS FOR REFUSING
RECOGNITION AND ENFORCEMENT
• CONVENTION AND AS-IN CONVETION
AWARDS: (DVLV)
1. Defect in the arbitration agreement
2. Violation of due process
3. Lack or excess of jurisdiction of arbitral
tribunal
4. Violation of arbitration agreement
 GROUNDS FOR REFUSING
RECOGNITION AND ENFORCEMENT
• Or there is a finding from the court that:
– The subject of dispute is not capable of
settlement under PH laws; or
– The award is in conflict with the public
policy of PH
 AS-IN CONVENTION ADDITIONAL
PROOFS
• PROOF OF COMITY AND RECIPROCITY
BETWEEN THE PHILIPPINES AND THE STATE
WHERE THE ARBITRAL AWARD WAS
RENDERED
 “ANY OTHER GROUND SHALL BE
DISREGARDED BY THE COURT”
• CASE: TUNA PROCESSING vs. PHIL. KINGFORD
• FACTS:
– Respondent sought for the refusal of the recognition
of the FAA as petitioner has no capacity to sue, it
being a foreign corporation not licensed to do
business in the PH, as prohibited by Corporation Code.
• HELD:
– Petitioner, although not licensed to do business in the
PH, may seek recognition and enforcement of the FAA
in accordance with ADR Act of 2004.
PROCEDURE FOR RECOGNITION OF CONVENTION AND
AS-IN CONVENTION AWARDS

CONSOLIDATION/CO
FILING OF NCURRENT
RECOGNITION HEARINGS
APPLICATION

REJECTION/SUSPENSION

APPEALS
 FILING OF APPLICATION
• WHERE: RTC
• WHAT: File the following
– Original or duly authenticated copy of the award
– Original arbitration agreement
– Translated copy if not in official language of the PH
 RECOGNITION
• Once recognized:
– Enforced similarly just like any other final and
executory decisions of PH courts
 CONSOLIDATION/ CONCURRENT
HEARINGS
• WHAT may be agreed upon by the parties?
– Consolidation of proceedings;
– Conduct of concurrent hearings with other related
arbitration proceedings
 REJECTION/SUSPENSION
• Upon subsequent application for rejection or
suspension of enforcement of the award may:
– VACATE or
– SUSPEND the enforcement
– Order the party seeking rejection, to provide a
security (bond)
 APPEALS
• Decisions of RTC are appealable to the CA
• Appealing party is required to post a
counterbond in favor of the prevailing party in
the amount of the award
• Right to appeal:
– Waivable by agreement or stipulation
– But without prejudice to judicial review (RULE 65)
LEGAL EFFECTS OF NON CONVENTION
AWARDS
• NOT entitled to recognition or enforcement under ADR Act.
• BUT Rule 39, Section 48 or ROC may be availed of:
– Section 48. Effect of foreign judgments or final orders. — The
effect of a judgment or final order of a tribunal of a foreign
country, having jurisdiction to render the judgment or final
order is as follows:
(a) In case of a judgment or final order upon a specific thing, the judgment
or final order, is CONCLUSIVE UPON THE TITLE TO THE THING, and
(b) In case of a judgment or final order against a person, the judgment or
final order is PRESUMPTIVE EVIDENCE OF A RIGHT AS BETWEEN THE
PARTIES AND THEIR SUCCESSORS IN INTEREST BY A SUBSEQUENT
TITLE. In either case, the judgment or final order may be repelled by
evidence of a want of jurisdiction, want of notice to the party, collusion,
fraud, or clear mistake of law or fact. (50a)