Alternative Dispute Resolution. Alarar

ATTERilTTTIVE DTSFU.
:rE
e,F
IARB|TRATTON, MED|ATTON AND CONC|LIAT|ON
UNDER REPUBLTC ACT NO. 92e51
2005 Edition
REYNALDO B. ARALAR
TABLE OF CONTENTS
REPUBLIC ACT NO. 9285
AN ACT TO INSTITUTIONALIZE THE USE OF AN
ALTERNATIVE DISPUTE RESOLUTION SYSTEM IN THE
PHILIPPINES AND TO ESTABLISH THE OFFICE FOR
ALTERNATIVE DISPUTE RESOLUTION, AND FOR OTHER
PURPOSES
CHAPTER
1-
GENERAL PROVISION
1
Section 7. Title
1
Section 2. Declsration of Policy
2
The Alternative Dispute Resolution Act of 2004
Party autonomy in dispute resolution explained ......... 2
How the State shall achieve alternative dispute
resolution
The case of Magellan Capital Management

Corporation vs. Zosa (355 SCRA 1,57).......,........... 3
Section 3. Definition of
Terms
Alternative Dispute Resolution System defined

Arbitration defined and explained ...........
ADR provider defined
Commercial arbitration defined
Arbitrator defined
..
12
13
13
1,4
1.4
Section 4. Electronic Signatttres in Global and

E-Commerce Act
..........
Effect of Signatures in Global and E-Commerce

Electronic Signature defined
1.4
Act....
ProaiderslPractitioners
1,4
1,4
15
Section 5. Liability of ADR
Liability of ADR providers / practitioners ...................... 15
l), ('lraptt.r r), lJook l, l{evist.rl

Aci rn i rr istra ti ve Code
St't'tiorr
3l.t(
15
Section 6. Exception to the Apptication of this Act ...

Non-applicability of Republic Act No. 92g5
15
1,6
CHAPTER 2 _ MEDIATION
Section 7. Scope
Scope of Chapter 2, Republic Act No. 92gS
Mediation defined
Mediation-Arbitration defined
L7
Section 8. Application and Interpretation
77
Considerations in applying and construing

mediation provisions
Integrity defined
Section 9. Confidentiality of lnformation
Confidentiality defined and explained
Privileged communication defined ......
Section 70. Waiaer of Confidentiality
Waiver defined and waiver of confidentiality
explained
Section 77. Exceptions to priailege
Instances when there is no privilege against
disclosure
Section 12. Prohibited Mediator REorts
Prohibited mediation r"po.ir .....
Section 13. Mediator's Disclosure and Conflict of Interest,.......
Mediator's disclosure and confl ict of interest ............ -. Section '1.4. Participation in Mediation
Designation of lawyer or non-lawyer to assist in
mediation
Rescind and rescission defined and explained
vi
L7
L7
77
18
18
18
79
20
20
21
21.
23
23
23
St't'tiorr 15. l'ltt ol Mtlitliot .................

l'l.tt't' of ntt'd iation
Scctiorr 16. L)ffcct ofAgreement to Submit Dispute
to Me dia t ion under lns t itutional Rul es ............
"Model Law" on mediation ..............
Effect of submission to mediation by institution..........
Section 17. Enforcement of Mediated Settlement Agreements ...
Deposit of mediated settlement agreement ...................
Enforcement if mediator is sole arbitrator
Award defined
Convention state defined
The case of Metro ConstructiorL Inc. vs. Chatham
Properties, Inc. (365 SCRA 697)...........
26
26
26
26
27
27
28
28
28
29
29
CHAPTER 3 - OTHER ADR FORMS

Section 78. Referral of Dispute to Other ADR Forms
Other forms of ADR defined
36
36
CHAPTER 4 - INTERNATIONAL COMMERCIAL
ARBITRATION
Section 79. Adoption of the Model Law on

Int er nat ional Commercial Arb itration .............
"Model Law" on international commercial
mediation
Section 20.lnterpretation of Model Law
"Model Act" defined and distinguished from
"Model Law"
How to interpret "Model Law"
J/
37
3/
38
38
24
24
Section
2'1..
Commercial Arbitr ation .............
Commercial arbitration defined
38
39
25
Section 22. Legal Representation in lnternstional

25
25
Arbitration
Representation in international arbitration
vii
39
39
Sct'tiorr 23. ('ott.l'idutIidiIy oI ArliInrtiott 1,,"(t(,((tIilrs............

llule on confidentitrlity of arbitratior-r
proceedings .................
40
Section 24. Referral to Arbitration ..............
40
3e
Court referral to arbitration proceedings...........

No referral of arbitration allowed
41
41
Section 25.Interpretation of the Act

Interpretation of Republic Act No. 9285
The case of Philrock, Inc. vs. Construction Industry
Arbitration Commission (359 SCRA 633)
41
Section 26. Meaning of "Appointing Authority', ..........
Appointing authority defined and explained .............

Section
27.IMat Functions
41.
42
CHAPTER 6 _ ARBITRATION OF
CONSTRUCTION DISPUTES
Scction 34. Arbitration of Construction Disputes:
Goaerning Laut ............
Governing law on construction arbitration
disputes....
Effect of decisions of voluntary arbitrators .................
59
59
59
59
60
51
Section 36. Authority to Act as Mediator or Arbitrator

Authority defined
52
52
54
54
54
Section 29. Further Authority for Arbitrator to

Grant Interim Measure of protection
Interim measures of protection by arbitrator ..............
54
55
Section 30. Place of Arbitration

Rules on place of arbitration
55
55
Section 31. Language of the Arbitration

Language or languages of arbitration .........
56
56
Section 37. Appointment of Foreign Arbitrator
International party defined

Who shall appoint foreign mediator...
Section 38. Applicability to Construction Arbitration ..............
Applicability to construction arbitration
Construction Industry Arbitration Commission
(CIAC) jurisdiction
Section 39. Court to Dismiss Case Inaolaing a
Construction Dispute
General rule is dismissal of construction arbitration
dispute
60
6-1.
61.
6L
62
62
62
62
63
63
CHAPTER 7 - IUDTCTAL REVTEW OF

ARBITRAL AYARDS
A. DOMESTIC AWARDS
CHAPTER 5 - DOMESTIC ARBITRATION
vlll
58
Section 35. Coaerage of the Law

Matters included in exclusive original jurisdiction
of CIAC
Section 28. Grant of Interim Measure of protection

Court may grant interim measure
Interim defined
When arbitral tribunal deemed constituted
Section 32. Law Goaerning Domestic Arbitration

Domestic Arbitration defined
5tt
51
51
may be Performed by
Appointing Authority
Function defined
Ayltlitbililry lo l)ortrtslir Arlrilruliotr

Applit'ability ol'Modcl l,aw arrd l{epublic Act
No. 92t15 to domestic arbitration
St'r'lirrrr .l.l.
58
58
Section 40. Confirmation of Award .............

Section 22, Republic Act No. 876 governs
domestic awards
1X
64
64
st't'liorr 23. ('rtrtf'ilttttiulirtl o.l' Arbitruliott I)rot,t,r,tlit,ts....

Itulc orr confidentiality of arbitration
proceedings
Section 2a. Referral to Arbitration .........
Court referral to arbitration proceedings
No referral of arbitration allowed
St't't
40
47
41
51
Section 35. Coaerage of the Law

Matters inclu ded in exclusive original jurisdiction
of CIAC
60
60
51
Section 36. Authority to Act as Mediator or Arbitrator

Authority defined
Section 37. Appointment of Foreign Arbitrator .........
International party defined
Who shall appoint foreign mediator.............
61
Section 38. Applicability to Construction Arbitr ation ..............

Applicability to construction arbitration .........
Construction Industry Arbitration Commission
(CIAC) jurisdiction.........
62
52
51
47
may be performed by
section 28. Grant of Interim Measure of protection

Court may grant interim measure
Interim defined
When arbitral tribunal deemed constituted
52
52
54
54
54
section2eFirtheril:*::;:lf#,ir;:,iiiii,nr,
Interim measures of protection by arbitrator
54
55
Section 30. Place of Arbitration

Rules on place of arbitration
55
55
Section 37. Language of the Arbitration

Language or languages of arbitration
56
56
v111
Section 39. Court to Dismiss Case Inaolaing a

Construction Dispute
General rule is dismissal of construction arbitration
dispute
67
61,
62
63
CHAPTER 7 - IUDICIAL REVIEW OF

ARBITRAL AIÂRDS
A. DOMESTIC AWARDS
CHAPTER 5 - DOMESTIC ARBITRATION

Section 32. Law Goaerning Domestic Arbitration
Domestic Arbitration defined
CHAPTER 6 - ARBITRATION OF
CONSTRUCTION DISPUTES
59
59
Section 26. Meaning of "Appointing Authority,, ............

Appointing authority defined and explained
Appointing Authority ........

Function defined
5n
Section 34. Arbitration of Construction Disputes:

Goaerning Law
Governing law on construction arbitration
disputes
Effect of decisions of voluntary arbitrators .......
41
27.IMat Functions
iufu il i I y I o I )orttt'sl ic Arbi I ru I iot, ........

Applit'ability of Modcl l,arw and ltepublic Act
A1t1il
No. 92tt5 to domestic arbitration
Section 25. lnterpretation of the Act

Interpretation of Republic Act No. 92g5
The case of Philrock, Inc. vs. Construction Industry
Arbitration Commission (359 SCRA 6gg)..........
Section
iorr'.1i.
58
58
Section 40. Confirmation of Award

Section 22, Republic Act No. 876 governs
domestic awards .............
1X
64
64
l;irral arrcl cxccutory judgment explairrecl .........

Corrfirmation defined
Iru nction of ordering execution of judgment ...............
The case of Del Monte Corporation-USA vs.
Court of Appeals (351 SCRA 373)
Section 41. Vacation award ............
Section 25, Republic Act No. 876 on grounds for
vacating domestic awards ............
Methods of vacating an award ...........
65
65
66
71
Set'tiorr 47. Vnrut utttl jurisdit'ttott .........
Vt,r'rut'and jurisdiction for recognition etc. of an

arbitral award
Venue and jurisdiction distinguished
Section 48. Notice of Proceeding to Parties ............
Notice defined and explained
Notice of proceedings to parties............
77
78
78
78
79
77
71
CHAPTER 8 - MISCETLANEOUS
PROVISIONS
B. FOREIGN ARBITRAL AWARDS

Section a2. Application of the New York Conaention ...............
New York Convention defined

Application of the New York Convention ........
Vacate defined and explained
Section 43. Recognition and Enforcement of Foreign
Arbitral '\wards not Coaered by the
New York Conaention ..........
Recognition defined
Enforcement defined
Recognition and enforcement of non-New
York Convention awards
Comity and "ju dicial comity" defined and
explained
lleciprocity defined and explained
St't'lion 44. Foreign Arbitral Award not Foreign

ludgment ............
liffect of a foreign arbitral award............
St'ction 45. Rejection of a Foreign Arbitral Award
I low foreign arbitral award rejected
Scction 46. Appeal from Court Decisions on
Arbitral Autards
Appeal defined
Appeal from decisions on arbitral awards
72
72
73
73
73
74
74
74
75
75
75
76
76
76
77
77
Section a9. Office for Alternatiae Dispute Resolution ..............

Office of Alternative Dispute Resolution
established ..........
Objectives of the Office for Alternative Dispute
Resolution..........
Section 50. Powers and Functions of the Office
for Alternatiae Dispute Resolution ................
Power defined
Functions of the Office of Alternative Dispute
Resolution explained
Formulation of standards for ADR training
Certification defined
81
81
81
82
82
Section 57. Appropriations

Appropriation defined
Appropriation for Republic Act No. 9285
82
82
83
Section 52. lmplementing Rules and Regulations (/RR)

Rules and regulations defined and explained
Functus oficio defined
83
84
84
Section 53. Applicability of the Katarungang Pambarangay ....

Katarungang Pambarangay provisions not
repealed
Section 54. Repealing clause ..........
Repealing clause defined
XI
85
85
Section 55. Separability clause

Separability clause defined ...........
Separability clause in Republic Act No. 9285
85
85
85
Section 56. Effectiuity
REPUBLIC ACT NO. 9285
APPENDICES
Appendix " A"
Appendix "8"
Appendix "C"
Appendix "D"
Appendix "F" -
Appendix "E"
Republic Act No. 9285 (An Act to

Institutionalize the Use of an
Alternative Dispute Resolution
System in the Philippines and to
Establish the Office for Alternative
Dispute Resolution, and For
Other Purposes) ..........
Executive Order No. 1008
(Creating an Arbitration
Machinery in the Construction
Industry of the Philippines)
AN ACT TO INSTITUTIONALIZE THE USE OF AN

ALTERNATIVE DISPUTE RESOLUTION SYSTEM IN
THE PHILIPPINES AND TO ESTABLISH THE OFFICE
FOR ALTERNATIVE DISPUTE RESOLUTION, AND FOR
OTHER PURPOSES
87
CHAPTER
GENERAL PROVISION
105
Republic Act No. 876 (An Act to

Authorize the Making of
Arbitration and Submission
Agreements, to Provide for the
Appointment of Arbitrators and
the Procedure for Arbitration
in Civil Controversies, and
For Other Purposes) .........
110
Republic Act No. 8792 (An Act

Providing for the Recognition
and Use of Electronic Commercial
and Non-Commercial Transactions,
Penalties for Unlawful Use thereof,
and For Other Purposes) ..........
121
Rules on Electronic Evidence .................
165
Uncitral Model Law on International

Commercial Arbitration ........
173
xil
SECTION 1. fifle.
This Act shall be known as
the "Alternative Dispute Resolution Act of 2004."
SEC. 2. Declaration of Policy.
hereby
- It ispromote
declared the policy of the State to actively
party autonomy in the resolution of disputes or the
freedom of the parties to make their own arrangements to resolve their disputes. Towards this end, the
State shall encourage and actively promote the use
of Alternative Dispute Resolution (ADR) as an important means to achieve speedy and impartial iustice
and declog court dockets. As such, the State shall
provide means for the use of ADR as an efficient tool
and an alternative procedure for the resolution of
appropriate cases. Likewise, the State shall enlist
active private sector participation in the settlement
of disputes through ADR. This Act shall be without
preiudice to the adoption by the Supreme Court of
any ADR system, such as mediation, conciliation,
arbitration, or any combination thereof as a means of
irchir.vinti specdy :rnd efficient means of resolving
Anrnrunrvr Drspurr Rrsolurroru Acr
or 2004
Rrpusl_rc
Chapter I
pending before all courts in the Philippines

which shall be governed by such rules as the Supreme
Court may approve from time to time,
cases
The Alternative Dispute Resolution Act of 2OO4.

The Alternative Dispute l{esolution Act of 2004 (ADR) is
Republic Act No. 9285.It was approved on April 2,2004, Republic
Act No. 9285 is entitled "An Act to Institutionalize the Use of an
Alternative Dispute l(esolution System in the Philippines and to
Establish the Office for Alternative Dispute Resolution and For
Other f'urposes."r
Party autonomy in dispute resolution explained.

Autonomv means the state of independence. It is a declared
policy of the State "to actively promote party autonomy in the
resolution of disputes for the freedom of the parties to make their
own arrangements to resolve their disputes. Towards this end,
the State shall encourage and promote the use of Alternative
Dispute Resolution (ADR) as an important means to achieve
speedy and impartial justice and declog court dockets."2
How the State shall achieve alternative dispute resolution.

The State shall use the alternative dispute resolution as an
important means and efficient tool "to achieve speedy and
impartial justice and alternative procedure for the resolution of
appropriate cases" by:
(1)
(2)
Enlisting the active private sector participation in the

settlement of disputes through ADR.
Without prejudice to the adoption by the Supreme
Court of any ADR system such as mediation,
conciliatiory arbitration or any combination thereof as

a means of resolving cases pending before all courts in
rSee
)lbid.
title and Sectron
l,
Republic Act No. 9'285.
Acr No. 9'285
-- Cieneral prcvi.sion
the Philippines which shall be governecl by such rules

as the
supreme court may approve from time to time.
The case of Magellan capitat Management corporation vs.

Zosa (355 SCRA tSTl.
In this case, the supreme Court heLJ that ,,under Act No.
876, otherwise known as the Arbitration Law, it is the Regional
Trial Court which exercises jurisdiction on questions relatlng to
arbitrati on." Moreover, "arbitration proceedingr are desigrr"d to
level the playing field among the parties in pursuit of mltually
acceptable solution to their conflicting claims, and any
arrangemenf or scheme that would give undue advantage to a
party in the negotiating table is anathema to the very puriose of
arbitration and should be resisted.." portions or [r,L dlcision
follows.
We rule against the petitioners.
It is error for the petitioners to claim that the
case should
fall under the jurisdiction of the securities and Exchange
Crmmission (SEC, for brevity). The controversy does not in

.rnyway involve the election lapporntment of officers of
1-rctitioner MCHC, as claimed by petitioners in their assignment

of errors. Respondent zosa's amended complaint focusesl-reavily
on the illegality of the Employment Agriement's ', Atbitration

(llause" initially invoked by him ir-r seeking his termination
bt'nefits under section 8 of the employment contract. And under
Itepublic Act No. 876, otherwise known as the ,,Arbitration
l,aw," it is the regional trial court which exercises jurisdiction
()v('|r cluestions relating to arbitration. we thus advert
to the
followirrg discussions made by the Court of Appeals, speaking
llu'u Justice Minerva P. Gonzaga-Reyes, in c.a.-c.n. b.p. No.
43059, uiz.:
"As regards thc fourth assigned error, asserting that
jrlriscliction lics with thc SEC, which is raised for tlrc first tlme i'
llris prt'liliolr, stlffict'it to stittt'thtrt tlrc Amt'nclccJ (ltllrprlai't
s(lltiln'ly 1'rul irr issur. lllr.tlucslion wht'llrt'r llrt'Ar-[ritr-ittiorr (]lirtrst.
,I
REpueuc
\nrnrunrvg Dtspure ResolurtoN Acr or 2004
is valid and effective between the parties. Although the
of
co.rtrorrersy which spawned the action concerns the validity
on
issue
the
officer,
the termination of thê service of a corporate
the validity and effectivity of the arbitration clause is determinable
by the ,"gulu, courts, and do not fall within the exclusive and
oiiginat jurisdiction of the SEC."
"The determination and validity of the agreement is not a
matter intrinsically connected with the regulation and internal
affairs of corporations (see Pereyra as. lAC,181 SCRA244; Sales
to be decided
us. sEC,169 SCR A7ll);it is rattrer an ordinary case
in accordance with the general laws, and do not require any
(Viray as'
particular expertise or triining to interpret and apPly
cA, r91. SCRA 308)."3
Furthermore, the decision of the court of Appeals in CAof
G.R. s.P. No. 43059 affirming the trial court',s assumPtion
which
case"
the
"law
of
jurisdiction over the case has b"ecome the
now binds the petitioners. The "law of the case" doctrine has been
when an
clcfincc-l as "a i".* applied to an established rule that
cause to
the
remands
.rprpclliltt' court passes on a question and
tlrt' lowt'r court for furth", pro."edings, the question there settled
lx,t.ont(.s tltt. law tlf the caie uPon subsequent appeal"' To note'
tlrt'('A's clt,cisi.n in CA-G.R. SP No.43059 has already attained
finality as t viclt,ncc.l by a Rcsolution of this Court ordering entry
tlf juclgnrcrlt tlf si.ricl case, to wit:
"Entry of judgement
This is to certify that on September 8, 1997 a decision/
resolution rendered in the above-entitled case was filed in this
Office, the dispositive part of which reads as follows:
,G.R. No. 129615 (Magellan Capital Management
Corporation, et al. vs. Court of Appeals, Rolando zosa, et
Considering the petitioner's manifestation dated
al.).
rLoevillo C. Agustin
scRA 457
(t9e7l.
vs.
Court of Appeals and Filinvest Finance Corpor'ttit-.rtt' 217
Chapter I
Acr No. 9285
-General
Provision
August II,1997 and withdrawal of intention to file petition

for review on certiorari, the Court Resolved to DECLARE
THIS CASE TERMINATED and DIRECT the Clerk of Court
to INFORM the parties that the judgment sought to be
reviewed has become final and executory, no appeal
therefore having been timely perfected.'
and that the same has, on September 17, t997, become final and
executory and is hereby recorded in the Book of Entries of
fudgments."
Petitioners, therefore, are barred from challenging anew,
through another remedial measure and in any other forum, the
authority of the regional trial court to resolve the validity of the
arbitration clause, lest they be truly guilty of forum-shopping
which the courts consistently consider as a contumacious practice
that derails the orderly administration of justice.
Equally unavailing for the petitioners is the review by this
Court, via the instant petitiory of the factual findings made by
the trial court that the composition of the panel of arbitrators
would, in all probability, work injustice to respondent Zosa. We
have repeatedly stressed that the jurisdiction of this Court in a
petition for review on certiorariunder Rule 45 ofthe Revised Rules
of Court is limited to reviewing only errors of law, not of fact,
unless the factual findings complained of are devoid of support
by the evidence on record, or the assailed judgment is based on
misapprehension of facts.a
Even if procedural rules are disregarded, and a scrutiny of
merits
the
of the case is undertakery this Court finds the trial
ctlurt's observations on why the composition of the panel of
arbitrators should be voided, incisively correct so as to merit our
.lpprovals. Thus,
"From the memoranda of both sides, the Court is of the view
lhat thr. defendants [petitioner] MCMC and MCHC represent the
silmc intercst. Thcrc is ncl cluarrel thatboth defendants are entirely
'r( or,,
1,,,, 1,,t,,,, I
ol llrl licltrpor
rs
ol lltr,Vltr;ltr M,rty vs (A. )')l \( llA lfl'r Ilg..tl)

r-)
AnrRrunrvE Drspure Rrsolurroru Acr
or 2004
two different corporations with personalities distinct and separate

from each other and that a corporation has a personality distinct
and separate from those persons composing the corporation as
well as from that of any other legal entity to which it may be
related.
"Butas the defendants [herein petitioner] represent the same
interest, it could never be expected, in the arbitration proceedings,
that they would not protect and preserve their own interest, much
less, would both or either favor the interest of the plaintiff. The
arbitration law, as all other laws, is intended for the good and
welfare of everybody. In fact, what is being challenged by the
plaintiff herein is not the law itself but the provision of the
Employment Agreement based on the said law, which is the
arbitration clause but only as regards the composition of the panel
of arbitrators. The arbitration clause in question provides, thus:
'In the event that any dispute, controversy or claim arise
out of or under any provisions of this Agreement, then the
parties hereto agree to submit such dispute, controversy or
claim to arbitration as set forth in this Section and the
determination to be made in such arbitration shall be final
and binding. Arbitration shall be effected by a panel of three
arbitrators. The Manager, Employee, and Corporation shall
designate one (1) arbitrator who shall in turry nominate and
elect as who among them shall be the chairman of the
committee. Any such arbitration, including the rendering of
an arbitration award, shall take place in Metro Manila. The
arbitrators shall interpret this Agreement in accordance with
the substantive laws of the Republic of the Philippines. The
arbitrators shall have no power to add to, subtract from or
otherwise modify the terms of this Agreement or to grant
injunctive relief of any nature. A.y judgment upon the award
of the arbitrators may be entered in any court having
jurisdiction thereof, with costs of the arbitration to be borne
equally by the parties, except that each party shall pay the
fees and expenses of its own counsel in the arbitration.'
(Emphasis supplied)
. n,f ',ii','
|"?;,
??j;,
"
"
"From thg foregoing arbitration clause, it appears

that the
two (2) defendants [petiiioners] (MCMC and MCircl have
one
(1) arbitrator each tocomporu ih" paner
of three (g) uJitrators.
As the defendant MCMC is the Minager of defendant
MCHC,
its decision or vote in the arbitratiott prJ."eding would
naturally
und
::{ainly be in favor of its employlr and theiefendant MCHC
would have to protect and preserve its own interesu hence,
the
two (2) votes of both defendants (MCMC and MCHC)
would
certainly be against the lone arbitrator for the plaintifi
[herein
defendantl. Hence, apparently, plaintiff
[defendant] wouli never
get or receive justice and fairness in the arbitration
proceedings
frg- the panel of arbitratoi's as provided in th" ii"r"quoted
arbitration clause. In fairness and justice to the plaintiff
[defendant], the two defendants (MCMC and MCHCi
[herein
petitionersl which represent the same interest should
be
considered as one and should be entitled to only one

arbitrator to
represent them in the arbitration proceedings. Accordingly,
the
arbitration clause, insofar a9 t]re compositlon of the pi'et
of
arbitrators is concerned should be declared void and
of no effect,
because the law r?Ir, "Any clause giving one of
the parties power
to choose more arbitrators than th;the; is void and
of no effect.,,
(Article 2045, Civil Code).
1Tt
dlspute or controversy between the defendants (MCMC
and- MCHC) thggejn petitionersJ and the plaintiff

iherein
defendantJ should be iettred in the arbitration proceeding
in
.ccordance with the EmploymentAgreemen! but,rrrd".
the panel
of three (3) arbitrators, otr"it) arbitiator to represent
the plaintiff,
.ne (1) arbitrator to represent both defendants (MCivtc ana
MCHC) [herein_petitioners] and the third arbitrator
to be chosen
by the plaintiff [defendant Zosa] and defendants (petitioners).
"xxx
XXX
XXX,,
In this connection, petitioners' attempt to put respondent
in
t'stoppel in assailing the arbitration clause must be struck
down.
li.r.ne, this issue of estoppel, as likewise noted by the Court of
Appcals, f.und it,s way for the first time only on'upp"alwellst'ltlt'cl is tht' rtlle tlrat issttt's/ not raisr.ci betow carrlr.t
ba rcs,tved
AnrRNntvE Dtspurr RrsolurtoN Acr
or 2004
agreements
on review in higher courts.s Secondly, employment
Aty
such as the onJ at bar are usually contracts of adhesion'
the party
ambiguity in its provisions is generally resolved against
case of
re5e{
relatively
who irafi"d the document. Tius, in ihe
and Fr' Benedicto
Phit. Federation of Credit Cooperatiaes,lnc. @FCCI)
Abril,6 we had the occasion to stress
layomaus. NLRC and Victoria
of
that "where a contract of employment' being a contract
be
should
adhesion, is ambiguous, any ambiguity therein
And, finally'
construed stricily ag"ainst the party who prepared it'"
(as
proceedings
aibitiation
respond entZo,sirrib*itt"a himsetf to
panel
the
of
there *u, .or," yet) before bewailing the composition
"arbitration
of arbitrators. ie in fact,lost no time in assailing the
arbitration
clause" upon realizing the inequities thatmay mar the
proceedings
if
the Jxisting iit't"-np of arbitrators remained
unchecked.
we need only to emph asize in closing t_hil arbitration

among the
proceedings are designed io level the playing field
to their
parties in pursuit oi a mutually acceptable solution
give
ionflictir.g .lui-s. Any arrangement or scheme that would
anathema
table.is
undue advantage to a'party ii the negotiating
be
to the very p.r?por" 3f uiUittation ind should, therefore,
resisted.
WHEREFORE, premises considered, the petitig"- it_l"reby
18' 1997
DISMISSED and the decision of the trial court dated Inly
is AFFIRMED.
SO ORDERED.
SEc.s.DefinitionofTetms._Forpurposesof
this Act, the term:
(a) "Alternative Dispute
Resolution System"
a
means any Process or procedure -used to resolve
dispute oi controversy, otn"t than by adiudication of
sCasolita, Sr. vs' Court of Ap peals,27SSCRA 257 (1997|; Manalilivs. Court of Appeals,
280 SCRA 400
l9e7l
6300 SCRA 72 (t998)
Rrpueuc
Chapter I
Acr No. 9285

General Provision
presiding iudge of a court or an officer of a government agency/ as defined in this Act, in which a neutral
third party participates to assist in the resolution of
issues, which includes arbitration, mediation, conciliation, early neutral evaluation, mini-trial, or any
combination thereof;
(b) 'ADR Provider" means institutions or
persons accredited as mediator, conciliator, arbitrator,
neutral evaluato+ or any person exercising similar
functions in any Alternative Dispute Resolution
system. This is without prejudice to the rights of the
parties to choose nonaccredited individuals to act as
mediatoq, conciliator, arbitrato1" ot neutral evaluator
of their dispute.
Whenever referred to in this Act, the term "ADR
practitioners" shall refer to individuals acting as
mediator, conciliator, arbitrator or neutral evaluator;
(c) "Authenticate" means to sigR, execute oradopt
a symbol, or encrypt a record in whole or in part intended
to identify the authenticating party and to adopt, accept
or establish the authenticity of a record or term;
(d) " Arbittation" means a voluntaty dispute
resolution process in which one or more arbitrators,
appointed in accordance with the agreement of the
parties, or rules promulgated pursuant to this Act,
resolve a dispute by rendering an award;
(e) "Arbitrator" means the person appointed to
render an award, alone or with others, in a dispute
that is the subiect of an arbitration agreemenf
(f) " Award" means any partial or final decision
by an arbitrator in resolving the issue in a controversy;
(S) "Commercial Arbitration" An arbitration is
"commercial" if it covers matter arising from all relationships of a commercial nature, whether contractual
rlr nol;
a
()
AlrrRruarve DtspurE Rrsolurtoru Acr
or 2004
REpusr-rc
Chapter I
(h) "Confidential information"
means any
information, relative to the subiect of mediation or
arbitration, expressly intended by the source not to
be disclosed, or obtained under circumstances that
would create a feasonable expectation on behalf of
the source that the information shall not be disclosed'
It shall include (L) communication, oral or written,
made in a dispute resolution proceedings, including
any memoranda, notes or work product of the neutral
party or non-party participant, as defined in this Acu
oral or written statement made or which occurs
iZ)
"tt
during mediation or for purposes of considering
conduiting, participating, initiating, continuing or
reconvening mediaiion or retaining a mediatol, and
(3) pleadings, motions, manifestations, witness
statements, reports filed or submitted in an arbitration
or for expert evaluation;
(i) "Convention Award" means a foreign
arbitral award made in a Convention State;
(i) .,,Convention State'' means a State that is a
member of the New York Convention;
(k)"Coutt"asreferredtoinArticle6ofthe
Model Law shall mean a Regional Trial Cour!

(l) "Court-Annexed Mediation" means any
mediation process conducted under the auspices of
the court, alter such court has acquired iurisdiction
of the dispute;
(m)"Court'ReferredMediation"meansmediato be conducted in accordance

tion ordered by
^court
with the Agreement of the Parties when an action is
prematurely commenced in violation of such agree-
Acr No. 9285

General Provision
maries of their cases and receive a nonbonding

assessment by an experienced, neutral person, with
expertise in the subiect in the substance of the dispute;
(o) "Government Agency" means any governmental entity, office or officeq, other than a court, that
is vested by law with quasi-iudicial power or the
power to resolve or adjudicate disputes involving the
government, its agencies and instrumentalities, or
private persons;
(p) "International Party" shall mean an entity
whose place of business is outside the Philippines.
It shall not include a domestic subsidiaty of such
international party or a co-venturer in a joint venture with a party which has its place of business in
the Philippines. The term foreign arbitrator shall

mean a person who is not a national of the Philippines;
(q) "Mediatiorr" means a voluntary process in
which a mediatol, selected by the disputing parties,
facilitates communication and negotiation, and assists
the parties in reaching a voluntary agreement

regarding a dispute;
(r)
"Mediator" means a person who conducts
mediation;
(s) "Mediation Party" means a person who
participates in a mediation and whose consent is

necessary to resolve the dispute;
(t)
"Mediation-Arbitration" or Med-Arb is a
two'step dispute resolution process involving both
"Early Neutral Evaluation" means an ADR

process wherein parties and their lawyers are brought
iogether early in a pre-trial phase to present sum-
mediation and arbitration;

(u) "Mini-trial" means a structured dispute
resolution method in which the merits of a case are
argued before a panel comprising senior decision
makers with <lr without the presence of a neutral third
10
il
menf
(n)
AlrrRrunrvr Dtspurr RrsolurloN Acr or 2004
person after which the parties seek a negotiated

settlemenf
(v) "Model Law" means the Model Law on
International Commercial Arbitration adopted by the
united Nations Commission on International Trade
Law on 21 fune 1985;
(w)"NewYorkConvention"meanstheUnited
Nations Convention on the Recognition and
Enforcement of Foreign Arbitral Awards apProved in
L958 and ratified by the Philippine Senate under
Senate Resolution No. 71;
(x) "Non-Convention Award" means a foreign
arbitral award made in a state which is not a
Convention State;
(y) "Non-Convention State" means a State that
is not a member of the New York Convention;
(zl "Non-Party Particip ant" means a person'
other than a party or mediato{, who participates in a
rnediation proceeding as a witness' resource Person
or exper!
(aa) "Procee ding" means a iudicial, administrative, or other adiudicative process, including
related pre-hearing or post-hearing motions' conferences and discover/i
(bb) "Records" means an information written on
a tangible medium or stored in an electronic or other
similir medium, retrievable in a perceivable form; and
(cc) "Roster" means a list of persons qualified
to provide ADR services as neutrals or to serve as
arbitrators.
Alternative Dispute Resotution system defined.

An Alternntiae Dispute Resolution System means " uny process
or procedure used to resolve a dispute or controversy, other than
t2
Rrpueuc
Chapter I
Acr No. 9285
-General
Provision
by adjudication of a presiding judge or officer of a government

agencyt" as defined in Republic Act No. 9285 , "inwhich a neutral
third party participates to assist in the resolution of issue, which
includes arbitration, mediation, conciliation, early neutral

evaluation, mini-trial or any combination thereof ."7 The
arbitratiory mediation, contemplated in Republic Act No. 9285 is
different from similar amicable settlement processes envisioned
in Republic Act No. 7160, in the lupon or pangkat.
Arbitration defined and explained.

Arbitration meatts a voluntary dispute resolution process in
which one or more arbitrators, appointed in accordance with the
agreement of the parties, or rules promulgated pursuant to
l{epublic Act No. 9285, resolve a dispute by renderingt an award.
lJefore Republic Act No. 9285, arbitratiory in its broad sense, is
understood to mean a substifution, by consent of the parties, of
another tribunal or the tribunals provided by the ordinary
processes of law. It is a domestic tribunal, as contradistinguished
from regularly organized court proceeding according to the course
of the common law, depending upon the voluntary act of the
parties disputant in the selection of the judges of their own choice.e
ADR provider defined.
An " ADR proaider" means institutions or persons accredited

irs medi atot, conciliator, neutral evaluator, or any person
cxercising similar functions in any Alternative Dispute Resolution
system. This is without prejudice to the rights of the parties to
choose non-accredited individuals to act as mediato(, conciliator
arbitrator or neutral evaluator. Non-accredited individuals,
therefore, who are chosen by the parties to a dispute themselves
are also considered by law as "ADR providers."ro
/\r.t.\t.r tron l[.r1. f?erpublir Act No. 9285

"\t'r'\r'r ttort i(rlJ, llrirl
')( lr,rrr l rnrlc vr l.rw l llrtott & lior k lnsur,tnr a, 4)r"')('('
ltot t l{lrf , h'r'1 rt tl rltr Ar I No '/,/tl',
"('r
l3
Pl-ttl.'tt>l>
AnEnrunrve Drspurr RrsoLurtoru
Act or 2004
REpuaLrc
Chapter I
Comme rcial arbitration defined.
An arbitration is "commercial" if it covers matters arising
Effect of Signatures in Global and E-Commerce Act.

The provisions of the Electronic Signatures in the Global and
E-Commerce Act, and its implementing rules and regulations,

shall apply to proceedings contemplated in Republic Act No. 9285.
This is because of advances in electronic communications and Ecommerce.la
Electronic signature defined.

" Electronic signature" refers to any distinctive mark,
characteristic andlor sound in electronic form, representing the
identity of a person and attached to and logically associated with
an electronic date message, or electronic document or any
methodology or procedure employed or adopted by uperson and
executed or adopted by such Person, with the intention of
authenticating, signing, or apProving an electronic data message
Provision
Liability of ADR Providers I Pr actitioners.

ADR providers and practitioners shall have
-theThe
same civil liability f or acts done in the
performance of their duties as that of public officers
as provided in Section 38(1), Chapter 9, Book I of the
Administrative Code of L987.
SEC. 5.
Arbitrator defined.
SEC. 4. Electronic Signatures in Global and EThe provisions of the Electronic

Commerce Act.
Signatures in Global and E-Commerce Act, and its
Implementing Rules and Regulations shall apply to
proceedings contemplated in this Act.
-General
or electronic document. For purposes of the Rules on Electronic

Evidence, an electronic signature includes digital signafures.rs
from all relationships of a commercial nature, whether contractual

or not.ll
" Arbitrator" means the person appointed to render an award,

alone or with others, in a dispute subject to an arbitration
agreernent.l2 He is a neutral person who resolve disputes between
the parties, especially by means of formal arbitration.l3
Acr No. 9285
Liability of ADR provide rslpractitioners.

The ADR providers and practitioners shall have the same
civil liability for acts done in the performance of their public duties
that of public officers in Section 38(1). Chapter 9, Book I of the
Administrative Code of 1987.16
as
Section 38f
ll,
Chapter 9, Book
l,
Revised Administrative
Code.
The liability of ADR providers and practitioners are similar
to the liability of superior public officers as set forth in Section
38(1), Chapter 9, Book I of the Administrative Code of 7987
pertinently provides that:
"(1) A public officer shall not be civilly liable for acts

done in the performance of his official duties, unless there is
a clear showing of bad faith, malice or gross negligence."
SEC. 6. Exception to the Application of this Act.
The provisions of this Act shall not apply to
-resolution or settlement of the following: (a) labor
disputes covered by Presidential Decree No. 442,
otherwise known as the "Labor Code of the Philippines," as amended and its Implementing Rules
and Regulations; (b) the civil status of persons; (c)
rrSee Section 3(g), lbid.

i2See Section 3(e), lbid.
l3Black3 Law Dictionary, 7th Edition,

raSee
p. I 00.
Section 4. Republic Act No. 9285
t4
r"\r,r'\r'r lrolr l(1), llLrlt'./. lltrk'ort Ek'r"tronic Fvtrlenct', A.M

l''\r.r, \r'r lrolr 'r, h'r'1 rt tlrltr Ar t Nt t '))tltt
t5
OT'01, )uly l
/, )0Ol
ALrERrunrve DrspurE
ResolurrorlAcr or
'2004
the validity of marriage; (d) any ground for legal

separation; (e) the iurisdiction of courts; (f) future
legitime; ($ criminal liability; and (h) those which
by law cannot be compromised.
CHAPTER 2
MEDIATION
Non-applicability of Republic Act No. 9285.

The provisions of Republic Act No. 9285 "shall not apply to
resolution or settlement of the following: (1) labor disputes

covered by Presidential Decree No. 442, otherwise known as the
"Labor Code of the Philippines," as amended and its
implementing Rules and Regulations; (2) the civil status of
persons; (3) the validity of marri age; (4) any ground for legal
separation; (5) the jurisdiction of the courts; and (5) future legitime;
(7) criminal liability; and (8) those which by law cannot be
compromised. Republic Act No. 9285 does not apply to noncompromiseable cases, because the law prohibits it.17
SEC. 7. Scope.
provisions of this Chapter
- The
shall cover voluntary
mediation, whether ad hoc or
institutional, other than court-annexed. The term
"mediation" shall include conciliation.
Scope of Chapter 2, Republic Act No. 9285.

The provisions of Chapter 2, Republic Act No. 9285, shall
cover voluntary mediation, whether adhoc or institutional, other
than court annexed. The term mediation shall include

conciliation. Mediation is aoluntary
the parties.l
rf.
mutually agreed upon by
Mediation defined.
"Medistion" means a voluntary process in which a mediatot
sclected by the disputing parties, facilitates communication and
rrcgotiation, and assists the parties in reaching a voluntary
irgreement regarding a dispute.2 "Mediator" means a person who
t'onducts mediation.3
Mediation-Arbitration defined.
Mediation-arbitration is a two-step dispute resolution
[)rocess involving both mediation and arbitration.a
SEC. 8. Application and Interpretation.
In
applying and construing the provisions of- this
'\,r' \,\ ti,)rr,
Rr,lrulrlrr Act
''\r,r'\r'r trotr l(r1). llrirl

'\('('',r'r ltotr l(tf, llrtrl
rTSee
Section 6, Republic Act No 9285.
16
r',(,(",(,r lrrrrr t(l),
No
9285.
ll rrrl
t7
AnERrunrvr Drspurr Rrsorurroru
Rrpusuc-
Acr or 2004
Acr No. 9285
Chapter 2
Mediation
Chapter, consideration must be given to the need to

promote candor of parties and mediators through
confidentiality of the mediation process, the policy
other person from disclosing a mediation communication.
of fostering prompt, economical, and amicable

resolution of disputes in accordance with principles
of integrity of determination by the parties, and the
policy that the decision-making authority in the
mediation process rests with the parties.
subject to discovery and shall be inadmissible in any

adversarial proceeding, whether judicial or quasijudicial. However, evidence or information that is
otherwise admissible or subject to discovery does not
become inadmissible or protected from discovery
solely by reason of its use in a mediation.
(c) Confidential information shall not be
in applying and construing mediation
(d) In such an adversarial proceeding, the
In applying and construing mediation provisions,
following persons involved or previously involved

in a mediation may not be compelled to disclose
confidential information obtained during the me-
Considerations
provisions.
consideration must be given: (L) to the need to promote candor

of the parties and mediators through confidentiality of the
mediation process; (2) the policy of fostering prompt, economical
and amicable resolutions of disputes in accordance with the
principles of integrity of determination by the parties; and (3) the
policy that the decision-making authority in the mediation process
rests with the parties.s
diation: (1) the parties to the dispute; (2) the mediator

or mediators; (3) the counsel for the parties; (4) the
non-party participants; (5) any persons hired or
engaged in connection with the mediation as secretary,
stenographer, clerk or assistan! and (5) any other
person who obtains or possesses confidential
information by reason of his/her profession.
lntegrity defined.
Integrity means the soundness of moral principles and
(e) The protections of this Act shall continue

to apply even if a mediator is found to have failed to
character of a public officer in the discharge of the trust reposed

in such officer.6
impartially.
(f) A mediator may not be called to testify to
provide information gathered in mediation. A
mediator who is wrongfutly subpoenaed shall be
reimbursed the full cost of his attorney's fees and
SEC. 9. Confidentiality of lnformation.

Information obtained through mediation proceedings
shall be subiect to the following principles and
guidelines:
(a) Information obtained through mediation
shall be privileged and confidential.
(b) A party, a mediatol, or a non-party participant may refuse to disclose and may prevent any
sSee Section 6, Republic Act No. 9285
'Dizon vs. Dollete, I 20 SC-I?A 456.
l8
act
related expenses.
Confidentiality defined and explained.

ConfidentialitU means secrecy, the state of having the
rlissemination of certain information restricted. The guidelines
orr confidentiality of information ohtained in mediation proceedings
rtrc sct forth irr Scction c), Rcpublic Act No. 9285.In the law on
t'v
cl
crrcr', thcy il r(' c()nsi cl t'rt.cl pri

l()
lt'gt'd
c()
nl m u n i ca tiotr.
AnERrumvr Dtspurr Rrsorurtoru
Privileged communication defined.

Priaileged communication is a doctrine that utterances made
in the course of judicial proceedings, including all kinds of
pleadings, petitions and motions belong to the class of
io-tttnttications that are absolutely privileged, if the same are
relevant, pertinent, or material to the cause at hand or subject of
inquiry.T lt is communication which in the context of legal or other
recognized professional confidentiality. The fact that certain
communication is termed privileged allows the speakers to resist
legal pressures to disclose its contents.
A privilege
may
information
of
arising from the confidentiality
be waived in a record, or orally during a Proceeding
by the mediator and the mediation parties.
A privilege arising from the confidentiality of
information may likewise be waived by a non-party
participant if the information is provided by such nonparty participant.
A peison who discloses confidential information
shall be precluded from asserting the privilege under
Section 9 of this Chapter to bar disclosure of the rest
of the information necessary to a complete understanding of the previously disclosed information. If
a person suffers loss or damage as a result of the
disclosure of the confidential information, he shall
be entitled to damages in a iudicial proceeding against
the person who made the disclosure.
A person who discloses or makes a rePresentation about a mediation is precluded from
asserting the privilege under section 9, to the extent
that the communication prejudices another person in
the proceeding and it is necessary for the person
SEC. 70.Waiaer of Confidentiality.
/See Black3 Law Dictionary, Tth Edition,
20
Rrpueuc
Acr or 2004
l2B5
Acr No. 9285
Chapter 2
Mediation
preiudiced to respond to the representation of disclosure.
Waiver defined and waiver of confidentiality explained.

Waiaer means the voluntary relinquishment or abandonment, express or implied of a right.8 In Section 10, Republic Act
No. 9285, a privilege arising from the confidentiality of
information may be waived in a record, or orally during a
proceeding by the mediator and the mediation parties. Howeveq,
a privilege arising from the confidentiality of information may
likewise be waived by a non-party participant if the information
is provided by the non-party participant.e
ll.
(a) There is
Exceptions to Privilege.
no privilege against disclosure under Section 9 if
mediation communication is:
SEC.
(1)
in an agreement evidenced by record

^
authenticated by all parties to the agreemen!
(2) available to the public or that is made
during a session of a mediation which is open,
or is required by law to be open, to the public;
(3) a threat or statement of a plan to inflict
bodily injury or commit a crime of violence;
(4) intentionally used to plan a crime,
attempt to commit, or commit a crime, or conceal
an ongoing crime or criminal activity;
(5)
sought or offered to prove or disprove

abuse, neglect, abandonment, or exploitation in
a proceeding in which a public agency is protecting the interest of an individual protected by
law; but this exception does not apply where a
child protection matter is referred to mediation
'f\er' []l,rcks l,rw l)iclrorr.rry, 7lh Fclilion. p 1574
''\r'r' lrl ,rtrrl /tll.l 1t,u,r(lr,rl rl rs. \r'r ltotr lO, lit'1 lt tlllt< Ar I No '/,/tJtr
2l
ArrnruRrve Dlspure Rrsorurotrt Acr or 2004
Rrpusl-rc
Acr No. 9285
chapter 2
by court or public agency participates in the

" protection mediation;
child
(6)
sought or offered to prove or disprove

a claim or complaint of professional misconduct
or malpractice fited against mediator in
proceeding; or
(71 sought or offered to prove or disprove

claim or complaint of professional misconduct
or malpractice filed against a party, nonparty
participant, or representative of a party based on
conduct occurring during a mediation.
a
(b) There is no privilege
under Section 9 if a
court or administrative agency, finds, after a hearing
in camera, that the party seeking discovery of the
proponent of the evidence has shown that the
evidence is not othenryise available, that there is a need
for the evidence that substantially outweighs the

interest in protecting confidenti ality, and the
mediation communication is sought or offered in:
(1) a court proceeding involving a crime or
felony; or
(21 a proceeding to prove a claim or

defense under the law is sufficient to reform or
avoid a liability on a contract arising out of the
mediation.
(c) A mediator may not be compelled to provide
evidence of a mediation communication or testify in
such proceeding.
(d) If a mediation communication is not

privileged under an exception in subsection (a) or (b),
only the portion of the communication necessary for
the application of the exception for non-disclosure
may be admitted. The admission of particular

evidence for the limited purpose of an excePtion does
Mediation
not render that evidence, or any other mediation

communication, admissible for any other purpose.
lnstances when there is no privilege against disclosure.
Section L1(a), Republic Act No. 9285 enumerates the instances
when there is no privilege against disclosure. In those instances,lO
the privilege can be used as shield against the law itself which is
against public policy. A law cannot be used against the law. Section
l1(a) enumerates the instances when allowing disclosure

outweighs the reasons for existence of the privilege.ll
SEC. 12. Prohibited Mediator Reports.

A
mediator may not make a report, assessment, evaluation, recommendation, findin g, or other communication regarding a mediation to a court or agency or
other authority that may make a ruling on dispute that
is the subject of a mediation, except:
a) where the mediation occurred or has terminated, or where a settlement was reached.
b) as permitted to be disclosed under Section
13 of this Chapter.
Prohibited mediation reports.

A mediator may not make a report, assessment, evaluatiory
r('commendatiory finding, or other communication regarding a
lrtt.diation to a court or agency or other authority that may make
rr finding on a dispute that is the subject of a mediatiory except:
(l) where the mediation occurred or has terminated, or where
llrt' scttlement was reached; and (2) as permitted to be disclosed
tttrtler Section L3 of Republic Act No. 9285.12
"'\r\,\r'r lron
I I(,r), llt'Jltrltlrr Ar t
rr\r'r' \r,r lrorr I l (lr), llrrrl

I '(,1 ' (rr'(
'1
lt( )t
22
I I /,
h'r'1 rt
tlrltr Ar I
No
No
gTBr>
t,),/ll',
23
AneRrunrvE Dlspure ResoruloN
Acr or 2004
SEC. 13. Mediator's Disclosure and Conflict of

lnterest
The mediation shall be guided by the
following- operative principles:
(a)
Before accepting a mediation, an individual

who is requested to serve as a mediator shall:
(1) make an inquiry that is reasonable under
the circumstances to determine whether there are
any known facts that a reasonable individual
would consider likely to affect the impartiality of
the mediatory including a financial or personal
interest in the outcome of the mediation and any
existing or past relationship with a party or
foreseeable participant in the mediation; and
(2) disclose to the mediation parties any
such fact known or learned as soon as is practical
before accepting a mediation.
G) If a mediator learns any fact described in
paragraph (a)(1) of this section after accepting a
mediation, the mediator shall disclose it as soon as
practicable.
At the request of a mediation party,an individual

who is requested to serve as mediator shall disclose
his/her qualifications to mediate a dispute.
This Act does not require that a mediator shall
have special qualifications by background or profession unless the special qualifications of a mediator
are required in the mediation agreement or by the
mediation parties.
Mediator3 disclosure and conflict of interest.

At the request of a mediation party, an individual who is
requested to serve as a mediator shall disclose his/her
qualifications to mediate a dispute. But before accepting a
mediatiory an individual who is requested to be a mediator shall:
(1) make an inquiry that is reasonable under the circumstances to
24
Rrpuslrc Acr
No. 9285
Chapter Z
Mediation
determine whether there are any known facts

that a reasonabre
individual would consider likely to affect trru imfu;"irry
of the
mediatiory including the financial interest in
the outcome of the
mediation and any existing or past relationship
with a party o.
fores.eeable participant in t-he mediation;
and (2) disclose to the
mediation parties any such fact known or learned
as soon as
practical before accepting a mediation.13 The
purpose of this
provision is transparency on the part of the mediator
to convince
theparties that he has .,o p".ronul ug"r-,da to pursue
in the course
of the mediation.
sEC. 14. participation in Mediation.- Except
as
otherwise provided in this Act, a party may
desiglate
a lawyer or any other person to piovide
assistan"ce ir,
the mediation. A waiver of this right shall
be made in
writing by t_h" party waiving it. A-waiver of participation or legal representation may be rescinded at
iny
time.
Designation of lawyer or non-tawyer to assist

in mediation.
A
lawyer
or
a
non-lawyer
may be designated to provide
.
trssistance in the mediation,
as otherwise provided in
"*.upi
Itepublic Act No. 929s. A waiver
or thi, right shall'be .r,ua" ir.,
writing by thep u:ty waiving it. A waiver of"legal
,"pr"r"r-,ration
may be rescinded at any time.la
Rescind and rescission defined and exprained.

To rescind means to abrogate, annul, avoid
or cancel a
trrntract.ls Rescission is aparty's.rnilut".ul
unmaking of a contract
for a legally sufficient reisory such as the other
pJay;, ;;erial
lrreach. Rescissio,Le.is generally available as
a remedy or defense
frrr a nondegaliting party and restores the
parties to their
prt'con tractu aI positions. 16
,
i(i',-s,,
rr\r,( , ,,r,r
r-it
.t.
llott
14,
tt,1l rtrlrr Ar I No 9)t)5

rltr Ar I No ,/,/{J,r
lir,1 rr tl
'"l,tl tl lr,tyv., Wr,,,l ( o,rsl lrlt,lrrsrtr,l)((,(,. rrl l,l,l 3tj.

lr li, l, rw I )tr lror r,tty, /ltr r,r lrlror r.
1r I j()lt
r'lll,
2,5
AlrrRrunrvr Dlspurr Rrsolurtoru Acr
or 2004
SEC. L5- Place of Mediati
freetoagreeonthept"."ofmediation.Failingsuch
agreement,theplaceofmediationshallbeanyplace
cJnvenient anilappropriate to all parties'
Place of mediation'
of the parties'
The place of mediation shall be by agreement
of mediation shall
In case of airugr"-"trll;t of the parties, ih" ptut"
to all parties' This place
be any place convenient and upptoptiate
shall alio be bY the Parties'l7
SEc.t6.EffectofAgreementtoSubmitDisputeto
An a gre ement
di
Me ati o n un iir rnsiltiti o n al Rule s.
tosubmitadisputetomediationbyaninstitution
to be bound by the internal

shall include an agreement
-"att ittistrative policies of such
mediation and
institution.Further'anagreementtosubmitadispute
shall
mediation under instit-utional mediation rules
to
bedeemedtoincludeanagreementtohavesuchrules
the
govern the mediation oi th" dispute and for
mediator,theparties,theirrespectivecounsel,and
non-party participants to abide by such rules'
In case of conflict between the institutional
the
mediation rules and the provisions of this Act,
latter shall Prevail'
"Model
La\A/"
on mediation'
Model Law on
The ,,Model Law,, on mediation means the
bv^Jl" United
International Commercial Arbitration adopted
on11
Law
fune 1983'
Nations Commission on International Trade
nations such
International Agreements are agreements between
as treati"r, .orr.i"ntions and protocols'18
lSee Section 16. Republic Act No' 9285'

rsSee Section 3{v}, Republic Act No' 9285
Rrpueuc
Acr No. 9285
Chapter 2
Mediation
Effect of submission to mediation by institution.

An agreement to submit a dispute to mediation by an
institution shall include an agreement to be bound by the internal
mediation and the administrative policies of such institution
including the rules thereof.le In case of conflict between the
institutional mediation rules and Republic Act No. 9285, the latter
shall prevail.2o
SEC. 17. Enforcement of Mediated Settlement
Agreements.
shall be guided by the
- The mediation
following operative
principles:
(a) A settlement agreement following
succes-
sful 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.
(b) The parties and their respective counsels, if
anlr shall sign the settlement agreement. The mediator
shall certify that he/she explained the contents of the
settlement agreement to the parties in a language
known to them.
(c) If the parties so desire, they may deposit
such settlement agreement with the appropriate Clerk
of a Regional Trial Court of the place where one of
the parties resides. Where there is a need to enforce
the settlement agreement, a petition may be filed by
any of the parties with the same court, in which case,
the court shall proceed summarily to hear the petition,
l''ll,notn l.rw I)rr ttolt.uy, )OO I I r,hliort,
/,'\r'r. \r.r ltott I(r, \uf )t,I
27
1t. )Gt>
Aurnru,qrvr Drspure Rrsorurroru Acr
or 2004
Rrpust_rc
Acr No. 9285
Chapter 2
in accordance with such rules of procedure

promulgated by the Supreme Court.
Deposit of mediated settlement agreement.

If the parties so desire, they may deposit the mediated
settlement agreement with the appropriate Clerk of the Regional
Trial Court of the place where one of the parties resides. Where
there is need to enforce the settlement agreement, a petition may
be filed by any of the parties with the same court, in which case,
the court shall proceed summarily to hear the petition, in
accordance with such rules of procedure as may be promulgated
by the Supreme Court.21
Enforcement if mediator is sole arbitrator.
The parties may agree in the settlement agreement that the
mediator shall become a sole arbitrator for the dispute and treat
the mediation agreement as an arbitral award which shall be subject
to enforcement under Republic Act No. 876, otherwise known as
the "Arbitration Law," notwithstanding the provisions of
Executive Order No. L000 for mediated disputes outside of the
CIAC.22
Award defined.
Convention state defined.

Conaention state means a state that is a member of the New
York Convention.2s
The case Metro construction, lnc. vs. chatham properties,

lnc. f365 SCRA 697t.
In this case, the supreme Court held that: ,,Executive order
(E.o.) No. 1008 vests upon the cIAC original and exclusive
jurisdiction ove,r disputes arising from, or connected with,
contracts entered into by the parties involved in construction in
the Philippines, whether the dispute arises before or after the
completion of the contract, or ifter abandonment or breach
thereof." Moreovel, "Circular No. 1-91 covers the CIAC. A quasijudicial agency or body has been defined as ar-, orgin of
governmenf other than a court and other than a legislafure,"which
affects the rights of the parties through adjudication or rulemaking." Portions of the decision foilo*.
In sum, under Circular No. 1-19, appeals from the arbitral
nwards of the CIAC may be brought to the Court of Appeals, and
to the supreme Court alone.ln" grounds for the appeal ure
1yt
likewise broadened to include appeali on questions of facts and
nppeals involving mixed questions of fact and law.
The jurisdiction of the Court of Appeals over appeals from
_
final orders or decisions of the CIAC is further fortiiied by the
rrmendments to B.P F.Lg.729, as introduced by R.A. No. 7902.
with
lhe amendments, the Court of Appeals is vlsted with appellate
u risdiction over all final judgments, decisions,
resolutions,trders
or awards of Regional Trial courts and quasi-judicial agencies,
irrstrumentalities, boards or commissions, except,,those"within
llrt'appellate iurisdiction of the supreme Court in accordance with
f
Award means any partial or final decision by an arbitrator in

resolving the issue in a controversy.23An arbitral awardis an award
2rSee Section l7 (cl, Republic
Act No. 9285

Section l7 (d), Republic Act No. 9285
i rSee Section 39(fl, Republic Act No 9285
22See
28
Mediation
resulting from arbitration or mediation. ,'Conoention Awqrd,,

means a foreign arbitral award in a Convention state.2a
as may be
(d) The parties may agree in the settlement

agreement that the mediator shall become a sole
arbitrator for the dispute and shall treat the settlement
agreement as an arbitral award which shall be subiect
to enforcement under Republic Act No. 875, otherwise
known as the " Arbitration Lawi'notwithstanding the
provisions of Executive Order No. L008 for mediated
disputes outside of the CIAC.
''"r,r',,r, f,,,i,- )(tl. IltttI

'"'',r,(,.,('r Itorr I(1f. llrtrI
?()
furrRrunrvr Dtspurr RrsolurtoN Acr
or 2404
the Constitution, the Labor Code of the Philippines under

presidential Decree No. 442, as amended, the provisions of this
Act, and of subparagraph (1) of the third Paragraph and
subparagraph (a) of tf,e fburth paragraph of Section 17 of the
judiciary Act of L948."
While, agairy the CIAC was not specifically namgd in said
provision, its inclusion therein is irrefutable. The CIAC was not
fxpressly covered in the exclusion. Further, it is a quasi-judicial
uglrr.y or instrumentality. The decision inLuzonDeaelopment Bank
,i. Lrron Deaelopment Bank Employees26 sheds light on the mattel,
thus:
Assumin garguendo thatthe voluntary arbitrator or the panel
of voluntary uibitiutors may not strictly be considered as a quasijudicial ugut.y, board or commission, still both he and the panel
ur" .o*frehlnded within the concept of a 'quasi-judicial

instrumentality.' It may even be stated that it was to meet the
very situation present"a uy the quasi-judicial functions of the

voluntary arbitrators here, as *elfas the subsequent arbitt-atot f
arbitral iribunal operating under the Construction Industry
Arbitration Commission, that the broader term'instrumentalities'
was purposely included in (Section 9 of B.P. Blg.129 as amended
by R.A. No. 7902).
An'instrumentality' is anything used as a means or agency'

Thus, the terms governmental'agency' or'instrumentality' are
synonymous in tf,e sense that either of them is a means by which
a government acts, or by which a certain government act or
fuiction is performed. The word 'instrumentality,' *it! respect
to a state, contemplates an authority to which the state delegates
goverrunental Power for the performance of a state function'
Aty remaining doubt on the procedural mutation of the
provisions on upp"it in E.O. No. 1008, ais-a-ais Circular No. 1-91
and R.A. No. ZSOZ, was completely removed with the issuance
by the Supreme Court of Revised Administrative Circular No. L95 and the 1997 Rules of Civil Procedure. Both categorically
26249 SCP'A
t62 (19951.
30
Rrpuauc
Acr No. 9285
Chapter 2
Mediation
include the CIAC in the enumeration of quasi-judicial agencies

comprehended therein. Section 3 of the former and Section 3, Rule
43 of the latteq, explicitly expand the issues that may be raised in
an appeal from quasi-judicial agencies or instrumentalities to the
Court of Appeals within the period and in the manner therein
provided. Indisputably, the review of the CIAC award may
involve either questions of fact, of law or of fact and law.
In view of all the foregoing, we reject MCI's submission that
Circular No. L-91, B.P. Blg.l29, as amended by R.A. 7902, Revised
Administrative Circular L-95, and Rule 43 of the 1997 Rules of
Civil Procedure failed to efficaciously modify the provision on
appeals in E.O. No. 1008. We further discard MCI's claim that
these amendments have the effect of merely changing the forum
for appeal from the Supreme Court to the Court of Appeals.
There is no controversy on the principle that the right to
appeal is statutory. Howeve{, the mode or manner by which this
right may be exercised is a question of procedure which may be
altered and modified provided that vested rights are not impaired.
The Supreme Court is bestowed by the Constitution with the
power and prerogative, inter alia, to promulgate rules concerning
pleadings, practice and procedure in all courts, as well as to review
rules of procedure of special courts and quasi-judicial bodies,
which, however, shall remain in force until disapproved by the
Supreme Court.27 This power is constitutionally enshrined to
enhance the independence of the Supreme Court.28
The right to appeal from judgments, awards, or final orders
of the CIAC is granted in E.O. No. 1008. The procedure for the
cxercise or application of this right was initially outlined in E.O.
No. 1008. While R.A. No. 7902 and circulars subsequently issued
by the Supreme Court and its amendments to the 1,997 Rules on
Procedure effectively modified the manner by which the right to
appeal ought to be exercised, nothing in these changes impaired
//Arti< k'Vlll. Serction 5 of the l987 Constitution.
/rr5({, F ( lrer;,tr.ry vs Secrctary of Justice, 301 SCRA 96 (19991: See arlso GSIS vs. Court
(/(/ l)
r rl z\1r1 tr',{s. ) ) ) S( liA t'rti'r ( I
3l
AnrRrunrvr Dtspurr Rrsolurtoru Acr
or 2004
Rrpueuc
Acr No. 9285
Chapter 2
Mediation
vested rights. The new rules do not take away the right to appeal
of MCI engineers and the subcontracting of various phases of the
allowed in E.O. No. L008. They only prescribe a new procedure

to enforce the right.2e No litigant has a vested right in a particular
remedy, which may be changed by substitution without impairing
vestedrights; hence, he can have none in rules of procedure which
relate to remedy.3o
The foregoing discussion renders academic MCI's assertion
on the binding effect of its stipulation with CHATHAM in the
TOR that the decision of the CIAC shall be final and nonappealable except on questions of law. The agreement merely
adopted Section L9 of E.O. No. 1008, which, as shown above, had
been modified.
The TOR, any contract or agreement of the parties cannot
amend, modify, limit, restrict or circumscribe legal remedies or
the jurisdiction of courts. Rules of procedure are matters of
public order and interest and unless the rules themselves so
allow, they cannot be altered, changed or regulated by agreements between or stipulations of the parties for their singular
work, constituted an implied takeover of the project. The CIAC

then concludes that the cut-off date for delineating the fiscal
liabilities of the parties is 23 May 1996 when CHATHAM
evaluated MCI's work accomplishment at 94.72% and then
suspended all further progress payments to MCI. For these
reasons, the CIAC found it trifling to determine whether MCI
was in delay based on the Overall Schedule. Howeveq, the CIAC
discovered that MCI was in-as-in delay for 294 days in the
concreting milestone and held the latter liable for liquidated
damages in the amount of P3,062,498.78.
convenience.3l
Having reSolved the existence of the authority of the Court

of Appeals io review the decisions, awards, or final orders of the
CIAC, the Court shall now determine whether the Court of
Appeals erred in rendering the questioned decision of 30
Septemb er L999.
Settled is the general rule that the findings of facts of the

Court of Appeals are binding on us. There are reco gnized
exceptions to the rule, such as when the findings are contrary to
those of the trial court, as in this case. Hence, we have to take a
closer re-examination of this case.
The CIAC is certain that the evidence overwhelmingly

tended to prove that the manner by which CHATHAM took
charge in the procurement of materials, fielding of labor, control
2eSee
Fabian vs. Desierto, 295 SCRA 470 {1998}.
30lbid.
3rsee Republic of the Philippines vs. Hernandez, 253 SCRA 509 (19961
32
The Court of Appeals made a contrary conclusion and

declared that MCI was in delay for 193 days based on the overall
schedule of completion of the project and should incur liquidated
damages in the amount of P24,1,25,000.00.
It is undisputed that the CIAC and the Court of Appeals

found MCI liable for liquidated damages but on different
premises. Based on the CIAC's assessment, MCI's responsibility
was anchored, on its delay in the concreting milestone, whlle the
Court of Appeals' evaluation concentrated on MCI's delay in

completing the project based on the oaerall schedule of work. The
variance in the evaluation spells a staggering difference in the
party who should ultimately be held liable and the net amount
involved.
A study of the final computation of the net amount due in

both the final disquisitions of the CIAC and the Court of Appeals
shows that all the other figures therein are constant, save for the
.trnount of liquidated damages for which MCI should be
rrccountable. If this Court concurs with the CIAC's conclusions,
MCI's responsibility for liquidated damages is, as already stated,
l'3,062,498.78. Setting this off against CHATHAM's overall fiscal
lt'cotrntability would bring the latter's total liability to MCI to
l'16,126,922.91. If the Court of Appeals is correct, MCI would be
Itt.lcl liable for a much higher P24,125,000 liquidated damages.
St'tlirrg tlris off agarinst Cf {ATFIAM's monetary responsibilities,
M('l w()ultl still hitvt' to 1-ray ('I lnTHn M l'4,935,575.31.
ALrgRrunrvr Dtspuru Rrsorurton
Act ot' 2004
Rrpueuc
Acr No. 9285
Chapter 2 __ Mediation
After painstakingly combing through the voluminous

records, we affirm the findings of the CIAC. The evidence taken
as a whole or in their totality reveals that there was an implied
takeover by CHATHAM on the completion of the project. The
evidence that appears to accentuate the Court of Appeals' decision
ironically bolstered the CIAC's conclusion. The testimonies of
Engr. Kapunary Engr. Bautista ,Dr.Lar, and the letter of Engr. Ruiz,
acknowlbdging the "temporary takeover" by CHATHAM of the
project, underscore the palpable fact that there was indeed a
iakeover. We confer particular credit to Dr. Lai's testimony that
as of 15 Febru ary 1,995, MCI was relieved of bill control of the
construction operations, that it was relegated to a mere supplier
of labot, materials and equipment, and that the alleged interim
takeover actually extended through the completion of the project.
Even CHATHAM admits the takeover but sugarcoated the same
with words like "interim" and "charging the costs to MCI."32 With
these glaring admissions, we can even consider that the takeover
was not implied but blatant.
Exhibits "4," "4-Ai' "4-ci' "BA/' "8," "4-D," "3," "3-1.," "3M," "Nr " "3-W-Li', "3-Xi', "3-Y," "3-Zi', "5," "s-A:', "s-Bi', "S-Cr"
"S-Di' "5-E;' "5-F," "s-Oi' "C-7i' "E-g/' etc., relied upon by the
Court of Appeals when considered by themselves and singly,
seemingly and initially evince MCI's control over the project.
HoweveA they eventually lose evidentiary puissance to support
the Court of Appeals' conclusion when reckoned against the
totality of the evidence that CHATHAM took charge of the
completion of the project, particularly, the fact that CHATHAM
suspended all progress billing payments to MCI. The continued
presence and participation of MCI in the proiect was, as found by
ine CnC, a matter of mutual benefit to and convenience of the
parties.
WHEREFORE, IN VIEW OF ALL THE FOREGOING, thc
assailed 30 September 7999 decision of the Court of Appeals in
CA-G.R. SP No. 49429 is hereby PARTIALLY MODIFIED by
ll0
setting aside the order directing Metro Constructiory Inc. to pay

Chatham Properties, Inc. the amount of P4,935,578.37. The arbitral
award of the Construction Industry Arbitration Commission in
CIAC Case 1,0-98, promulgated on 19 October 7998, directing
Chatham Properties, Inc. to pay Metro Constructiory Inc. the sum
tIf SIXTEEN MILLION ONE HUNDRED TWENTY-SIX
THOUSAND NrNE HUNDRED TWENTY-TWO & 91 / rOO
(P 76,126,922.91) PESOS, is accordingly REINSTATED.
No pronouncement as to costs.
SO ORDERED.
32litorlua vs. Court of Appeals, 286 SCRA I 36 (l c/98); Rosario vs. Court of Appeals,
464 (l9cl9); Republic vs. Court of Appeals, 314 SCRA 230 (1991)1.
SCRA
34
:15
CHAPTER
CHAPTER 4
OTHER ADR FORMS
NTE RNATI
ONAL COM M E RCI..AL
ARBITRATION
SEC. 18. Referral of Dispute to Other ADRForms.
refer one or more or all
The parties may agree to

-issues
arising in a dispute or during its pendency to
other forms of ADR such as but not limited to: (a) the
evaluation of a third Person' or (b) a mini-trial, (c)
mediation-arbitration, or a combination thereof.
For purposes of this Act, the use of other ADR
forms shall be governed by Chaptet 2 of this Act
except where it is combined with arbitration in which
case it shall likewise be governed by Chapter 5 of this
Act.
Other forms of ADR defined.

There are other forms of AD& namely: (1) Evaluation of third
person; (2) Mini-trial; (3) mediation-arbitration; or @) a
combination thereof. Mini-trial means structured dispute
resolution method in which the merits of a case are argued before
a panel comprising senior decision makers with or without the
presence of a neutral third person after which the parties seek a
negotiated settlement.l Mediation-arbitration or Med-Arb is a
two-step dispute resolution process involving both mediation and
arbitration.2
rSee Section
ZSee
3(u|, RepublicAct No. 9285.
Section 3{t), lbid.
36
SEC. 19. Adoption of the Model Law on International Commercial Arbitration.

International
commercial arbitration shall be governed by the
Model Law on International Commercial Arbitration
(the "Model Law"l adopted by the United Nations
Commission on International Tiade Law on 21]une
L985 (United Nations Document A/40117) and
recommended f or enactment by the General
Assembly in Resolution No. 40172 approved on L1
December 1985, copy of which is hereto attached as
Appendix " A."
"Model Law" on international commercial mediation.

International commercial arbitration shall be governed by
the Model Law on International Commercial Arbitration, the
"Model Law" adopted by the United Nations Commission on
lnternational Trade Law on27 fune 1985 and recommended for
cnactment by General Assembly Resolution No. 10 172 on 17
December 1985.1
SEC. 20. Interpretation of Model Law.

In
interpreting the Model Law, regard shall be had -to its
international origin and to the need for uniformity in
its interpretation and resort may be made to the
traasux preparatories and the report of the Secretary
General of the United Nations Commission on
International Trade Law dated 25 March 1985 entitled,
r\r'r'\r'r ltott lll,
lit'1
rrtlrltt Ar I
No
'/,/lJrr
37
AnrRrunrvr DrspurE RgsolurroN Acr
or 2004
chapter
"International Commercial Arbitration: Analytical

Commentary on Draft Text identified by reference
number A/CN 91264J'
"Model Act" defined and distinguished from "Model Law."
AModeI Act is statute drafted by the National Conference of
Commissioners in Uniform State Laws and proposed as
guidelines for legislation for the states to borrow from or adapt
to suit their individual needs. It is different from "Model Law" as
defined here.2
How to interpret "Model faw."

Interpreting the Model Law, regard shall be had to its
international origin and to the need for uniformity in the
I
11l
interpretation and regard may be had to the traaaux preparatories

and the report of the Secretary General Commission on
International Trade Law dated 25 March 1985 entitled,
International Commercial Arbitration: Analytical Documentary
on Draft Text identified by reference number AICN 9 lZi+.t
Arbitr ation.- An arbitration

matters arising from all
relationships of a commercial nature, whether contractual or not. Relationships of a commercial nature
include, but are not limited to, the following transactions: any trade transaction for the supply or
exchange of goods or services; distribution agreements; construction of works; commercial representation or agency; factoring; leasing; consulting
engineeritg licensing; investmenf financing; banking
insurance; ioint venture and other forms of industrial
or business cooperation; carriage of goods or
passengers by ait, sea, rail or road.
SE C. 21. C ommerci al
is "commercial"
if it covers
2See Black3 Law Dictionary, 7th Edition, p. I 919.

rSee Section 20. Republic Act No. 9285.
38
- H:,'":1,:[,Tffi
3,.?,u,
ri
on
^,.o,,ra
Commercial arbitration defined.

An arbitration is "commercial" if it covers matters arising
from all relationships of a commercial nafure, whether contracfual
or not. Relationships of a commerciar nafure include, but are not
limited to the following transactions: (1) any trade transaction
for the supply or exchange of goods or services; (2) distribution
agreements, construction
9f works, engineering, licensing,
investmenf financing; (3) banking
and insuiance; (a)",oint venture
and other forms of industrial oi business corporuiiorr; and (5)
carriage of goods or passengers by air, sea, rail or road.a
sEc. 22. Legal Representation in rnternational
Arbitrati
In international arbitration conducted

in the nnifgnil"r, a pary may be represented by any
person of his choice: proaided, That such representative, unless admitted to the practice of law in tlie philippines, shall not be authorized to appear as counsel in
any Philippine court, or any other quasi-judicial body
whether or not such appearance ii in relation to thl
arbitration in which he appears.
Representation in internationar arbitration.
_ Rupresentation in international arbitration could be by a
lawyer or non-lawyer. In international arbitration conducted in
the Philippines, a party may be represented by any person of his
choice: Proaided, That such representative, unless admitted to the
practice of law in the Philippines, shall not be authorized to appear
as counsel in any Philippine court, or any quasi-judicial'body
whether or not such appeatance is in relation to the arbitration in
which he appears.s
sEC- zg. Confidentiarity of Arbitration

Pro
c e e ding
s.
proceedings, including
- The arbitration
the records, evidence
and the arbitral awird, shail bI
'r\r'r'\r'r lrnt ) l, llt'Jrr rltlir Arl No (),2llrj

"\r'r, \rt lrnr / /, lir,1rrrlrlrt Ar I Nr t,))gt,
3()
ArrRru,qrvr Dtspurr RrsorulotlAcr or 2004

cha prer o
- fi in'"',fil T: J;3,.?,u, ^,o,,rarion
considered confidential and shall not be published

except (1) with the consent of the parties, or (2) for
thereafter, refer the parties to arbitration nnless it

finds that the arbitration agreement is null 6nd void,
inoperative or incapable of being performed.
is allowed herein: Prooided, howeaer, That the court

in which the action or the appeal is pending may issue
a protective order to prevent or prohibit disclosure of
documents or information containing secret processes,
developments, research and other information where
it is sho*tt that the applicant shall be materially
prejudiced by an authorized disclosure thereof.
Court referral to arbitration proceedings.

Arbitration proceedings are not mandatory but subject to
the will of the parties to a controversy. Strictly, it is consensual.
F{owever, "d court before which an action is brought in a matter
of an arbitration agreement shall, if at least one pafiy so requests
not later than the period of the pre-trial conference, or upon
the iimited purpose of disclosing to the court of

relevant documents in cases where resort to the court
Rule on confidentiality of arbitration proceedings.

Arbitration proceedings are confidential because arbitration
is more of an amiiable settlement proceeding rather than a judicial
process where discussions and records are privileged_communications. It has to be recorded for practical reasons. Thus, the
arbitration proceedings, including the records, evidence and the
arbitral awird shall be considered confidential and shall not be
published, except (1) with the consent of the partieg, 9r (2) fot
ih" ti*ited purpose of disclosing to the court in which the action
or appeal is pending may issue a protective order to prevent or
p.ohitit disciosure of documents or information containing secret
pro."rr"s, developments, research and other information where
it is shown that thg applicant shall be materially preiudiced by
an auth orrzed, disclosure thereof. For instance trade secrets
revealed by any of the parties in an arbitration Proceeding is
highly confidential.6
Arbittati
which an action is brought in a matter which is the
subject matter of an arbitration agreement shall, if at
request of both parties thereafte r, refer the parties to ?n arbitration

unless it finds that the arbitration agreement is null and void,
inoperative or incapable of being performed."T
No refercal of arbitration allowed.

In instances when the arbitration agreement is null and aoid,
inoperatiae or incapable of being performed, at the determination of
the court, no referral to arbitration is allowed. For instance, if the
subject of the arbitration agreement is prohibited by 1aw.8
SEC. 25. Interpretation of the Act.
inter- [n to the
preting the Act, the court shall have due regard
policy of the law in favor of arbitration. Where action
is commenced by or against multiple parties, one or
more of whom are parties to an arbitration agfeement,
the court shall refer to arbitration those parties who
are bound by the arbitration agreement although the
civil action may continue as to those who are not
bound by such arbitration agreement.
SEC. 24. Refeffal to
least one party so requests not later than the pre-trial
conferet ce, or upon the request of both parties
lnterpretation of Republic Act No. 9285.

lrr irrterpreting Republic Act No. 9285, the court shall have
tltrt' regarcl to the policy of the law in favor of arbitration. Where
'(r('('(r(
6See Section
23, Republic Act No. 9285
40
"llrlr
'rllttt )4,
lir,1 rr tl
rltr Ar I
No ,/,/litr
,l
AnrRNnrvr Dtspurr RrsoruloN Acr
or 2004
action is commenced by or against multiple parties, one of whom

are parties to an arbitration agreement, the court shall refer to
arbitration those parties who are bound by the arbitration
agreement although the civil action may continue as those who
are not bound by such arbitration agreement.e
The case of Philroc[ lnc. vs. Construction lndustryArbitration
Commission 1359 SCRA 6331.
In this case, the Supreme Court ruled that: "The Supreme
Court will not countenance the effort of any patry to subvert or
defeat the objective of voluntary arbitration." Moreoveq "by the
nature of their functions, acts in a quasi-judicial capacity, such
that their decisions are within the scope of judicial review."
Portions of the decision follow.
rhe petitioneq, in its
issues:
::::^ndum,
"8,
Whether or not Respondent Cid sPouses have a cause of
action against Petitioner Philrock.
"c.
Whether or not the awarding of the amount of. P23,276.75
for materials ordered by Respondent Spouses Cid plus
42
- fii::jf,f[
T:#3,?,,,
Arb*rarion
interest thereon at the rate of 6% fuom26 September 1995 is

ProPer.
"D.
whether or not the awarding of the amount of p65,000.00 as
retrofitting costs is proper.
"8.
whether or not the awarding of the amount of p'1,,340,454

for the value of the delivered but the allegedly unworkable
concrete which was wasted is proper.
"F.
whether or not the awarding o[f] moral and nominal
raises the following
Whether or not the CIAC could take jurisdiction over the

case of Respondent Cid spouses against Petitioner Philrock
after the case had been dismissed by both the RTC and the
CIAC.
damages and attorney's fees and expenses of litigation in

favor of respondents is proper.
,,A.
eSee Section
chaprer
Whether or not Petitioner Philrock should be held liable for

the payment of arbitration fees."
In sum, petitioner imputes reversible error to the CA: (1) for
upholding the jurisdiction of the CIAC after the latter had
dismissed the case and referred it to the regular courf (2) for ruling
that respondent spouses had a cause of aition against petitioneq,
and (3) for sustaining the award of damages.
This Court's Ruling

The Petition has no merit.
First Issue:
lurisdiction
I'etitioner avers that the CIAC lost jurisdiction over the

irrlril.rati()t] casc aftcr botlr parties had withdrawn their consent
4i
r
Ar-rrRNnrvr Drspurr Rrsorurroru Acr
or 2004
chaprer--T;i:,'j::,H,T#;3,?,,,Arbitration
to arbitrate. The ]une 73,1995 RTC Order remanding the case to
the CIAC for arbitration was allegedly an invalid mode of
referring a case for arbitration.
arguing that the regular court also lost jurisdiction after the
arbitral tribunal's April rg, 1,994 order referring the case Back
We disagree. Section 4 of Executive Order 1008 expressly
section 4. lurisdiction.
The CIAC shall have original
and exclusive- jurisdiction -over disputes arising from, or
connected with, contracts entered into by partieJ involved
in construction in the philippines, whethei the dispute arises
before or after the completion of the contract, or after the
abandonment or breach thereof. These disputes may involve
government or private contracts. For the Board to acquire
jurisdiction, th_e parties to a dispute must agree to submit
the same to volun tary arbitration.
"The jurisdiction of the CIAC may include but is not
vests in the CIAC original and exclusive jurisdiction over disputes
arising from or connected with construction contracts entered into

by parties that have agreed to submit their dispute to voluntary
arbitration.
It is undisputed that the parties submitted themselves to the

jurisdiction of the Commission by virtue of their Agreement to
Arbitrate dated Novemb er 24,1993. Signatories to the Agreement
were Attys. Ismael |. Andres and Perry Y. Uy (president of
Philippine Rock Products, Inc.) for petitioneq, and Nelia G. Cid
and Atty. Esteban A. Bautista for respondent spouses.
Petitioner claims, on the other hand, that this Agreement
was withdrawn by respondents on April 8, 1994, because of the
exclusion of the seven engineers of petitioners in the arbitration
case. This withdrawal became the basis for the April 13,1994 CIAC
Order dismissing the arbitration case and referring the dispute
back to the RTC. Consequently, the CIAC was divested of its
jurisdiction to hear and decide the case.
This contention is untenable. First, private respondents

removed the obstacle to the continuation of the arbitration,
precisely by withdrawing their obiection to the exclusion of the
seven engineers. Second, petitioner continued participating in the
arbitration even after the CIAC Order had been issued. It even
concluded and signed the Terms of References on Augu st27,7995,
in which the parties stipulated the circumstances leading to the
dispute; summarizedtheir respective positions, issues, and claims;
and identified the composition of the tribunal of arbitrators. The
document clearly confirms both parties' intention and agreement
to submit the dispute to voluntary arbitration. In view of this
f.act, we fail to see how the CIAC could have been divested of its
jurisdiction.
Finally, as pointed out by the solicitor general, petitioner
maneuvered to avoid the RTC's final resolution of the clisptrte by
to the RTC.
limited to violation of specifications for materials and

workmanship; violation of the terms of agreement;
interpretation and I or application of contractual"provisions
amount of damages and penalties; commencement time and
delays; maintenance and defects; payment; default of

employer or contractor and changes in contract cost.
"Excluded from the coverage of this law are disputes
arising froT employer-employee relationships whichshall
continue to be covered by the Labor Code of thL philippines.,,
(EO 1008)
In so doing, petitioner conceded and estopped itself from

further questioning the jurisdiction of the CIAC. The Court will
not countenance the effort of any party to subvert or defeat the
objective of voluntary arbitration-for itr o*n private motives.
After submitting itself to arbitration proceedings and actively
participating thet"T, petitioner is estbpped froir assailing thl
jurisdiction of the CIAC, merely because the latter rendered
an
nciverse decision.lo
r"\r't'\1x)u\('\
lJ('rrrrt.z
vs ( or lrt ()f nl)[ x\
4s
tls,
)(/t
\(r].A )4).l,rrrrr,rry l(t, l<)g/
r
AueRNnrvr Dtspurr Rrsor-urtoru
Aci or
Rrpuauc
2OO4
Chapter 4
Second Issue:
Cause of Action
Acr No. 9285
lnternational Commercial Arbitration
that all the transit mixers arrived at the site within the
allowable time that would ensure the workability of the
concrete mix delivered.
Petitioner contends that respondent spouses were negligent

in not engaging the services of an engineer or architect who should
-tn"i.lonstruction, in violation of Section 308 of the
oversee
National Building Code. It adds that even if the concrete it
delivered was defective, resPondent sPouses should bear the loss
arising from their illegal operation. In short, it alleges that they
had no cause of action against it.
We disagree. Cause of action is defined as an act or omission
by which a party violates the right of another.ll A complaint is
dlemed to have itut"d a cause of action provided it has indicated
the following: (1) the legal right of the plaintiff, (2) the correlative
obligation of"the defendant, ind (3) the act or the omission of the
defendant in violation of the said legal right.l2 The cause of
action against petitioner was clearly established. Respondents
were pr.It"hasers of ready-mix concrete from petitioner. The
.o.r.rdt" delivere d by the latter turned out to be of substandard
quality. As a result, respondents sustained damages when the
siructures they built using such cement developed cracks and
honeycombs. Co.s"qrrently, the construction of their residence
had to be stopped.
Furthel the CIAC Decision clearly spelled out respondents'
cause of action against petitioner, as follows:
"On the other hand, there is sufficiently strong evidence

to show that difficulties were encountered in the pouring of
concrete mix from certain transit mixers necessitating the
Petitioner assails the monetary awards given by the arbitral

tribunal for alleged lack of basis in fact and in law. The solicitor
general counters that the basis for petitioner's assigned errors
with regard to the monetary awards is purely factual and beyond
the review of this Court. Besides, Section1.9, EO 1008, expressly
provides that monetary awards by the CIAC are final and
,,Accordingly, this Tribunal finds drat the mix was of

the right proporiior,s at the time it left the plant. This,
howevef, doeJ not necessarily mean that all of the concrete
mix delivered had remained workable when it reached the
jobsite. It should be noted that there is no evidence to show
We disagree with the solicitor general. As pointed out earlieq,

fnctual findings of quasi-judicial bodies that have acquired
t xpertise are generally accorded great respect and even finality,
if they are supported by substantial evidence.la The Court,
Iroweveq, has consistently held that despite statutory provisions
llCamara vs. Court of Appeals, 310 SCRA 608, 6lB, )uly 20, 1999; Delos Reyes vs.
Courr of Appeats, 285 SCRA B l, 85, January 27 , l99B: Leberman Realty Corporation vs.
Typingco, 293 SCRA 316, 327, )uly 29, l99Br2Baluyot vs. Cûrt of Appeals, 3l I SCRA 29, 45, July 22, 1999;Vergara vs. Court of
Appeals. 319 SCRA 323, 327, November 26, 1999, Leberman vs. Typinco, ibid , trt 328
'CIAC Decisions dated September 24, 1996; CA rollo for G.R. SP No. 42443. p. 12.
laVillitflor vs. Court of Appeals. 280 SCRA 297,33O, October 9, 1997; Philippine
Mt.rrlr,rrrt M.rrinc School, lnc. vs Court of Appeals, 224 SCav4.77O.785, June 2, 1995;
( ( X ( )l I l) vs Ir,rj,rno. /41 S('lil 261, )(rtl. Fr.t;ru.rry i'5, l99ti
46
47
[addition] of water and physically pushing the mix,

obviously because the same [was] no longer workable. This
Tribunal holds that the unworkability of said concrete mix
has been firmly established.
"There is no dispute, howeveq, to the fact that there are
defects in some areas of the poured structures. In this regard,
this Tribunal holds that the only logical reason is that the
unworkable concrete was the one that was poured in the
defective section s." \3
Third Issue:
Monetary Awards
unappealable.
r
AnrRNnrvr Drspurr Rrsolurtoru Acr or 2004
Chaprer--fi i:;'::,ffi ,T"",t;3,?,,,Arbirrarion

making the decisions of certain administrative agencies " final,"
it still takes cognizance of petitions showing want of jurisdiction,
grave abuse of discretion, violation of due process, denial of
substantial justice or erroneous interpretation of the law.ls
Voluntary arbitrators, by the nature of their functions, act in a
quasi-judicial capacity, such that their decisions are within the
scope of judicial review.16
The same issue was discussed during the hearing before the
arbitration tribunal on Decemb er 19,lggi.It was also-mentioned
in that tribunal's Decision dated septemb er 24, 1996.
The payment of interest is based on Article 2209 of the Civil
Code, which provides that if the obligation consists of the payment
of a sum of money, and the debtor incurs delay, the inde*rrity ro,
damages shall
!e the payment of legal interest which is six percent
par annum, rn the absence of a stipulation of the rate.
Petitioner protests the award to respondent spouses of

P23,276.25 as excess payment with six percent interest beginning
September 26, L995.It alleges that this item was neither raised as
an issue by the parties during the arbitration case, nor was its
justification discussed in the CIAC Decision. It further contends
that it could not be held liable for interest, because it had earlier
tendered a check in the same amount to respondent spouses, who
refused to receive it.
Petitioner's contentions are completely untenable.

Respondent Nelia G. Cid had already raised the issue of
overpayment even prior to the formal arbitration. In paragraphg
of the Terms of Reference, she stated:
"9. Clairnants were assured that the problem and her
demands had been the subject of several staff meetings and that
Arteche was very much aware of it, a memorandum having been
submitted citing all the demands of [c]laimants. This assurance
was made on July 3L, 1,992 when Respondents Secillano,
Martillano and Lomibao came to see Claimant Nelia Cid and
offered to refundP23,276.25, [t]he difference between the billing
by Philrock's Marketing Department in the amount of P725,586.25
and the amount charged by Philrock's Batching Plant Department
in the amount of only P'1,02,586.25, which claimant refused to
accept by saying' Saka na lang.'
Awards for Retrofitting Costs. Wasted

L I nworkable But D eliaered
()oncrete, and Arbitration Fees
Petitioner maintains that the defects in the concrete structure

were due to respondent spouses'failure to secure the services of
iln engineer or architect to supervise their project. Hence, it claims
that the award for retrofitting cost was wiihout legal basis. It also
denies liability for the wasted unworkable but delivered concrete,
frrr which the arbitral court awarded p1g,404.54. Fin ally, it
trrmplains against the award of litigation expenses, inasmuc"h as
tlre case should not have been institutea at att haj ,espondents
complied with the requirements of the National Building Code.
we are unconvinced. Not only did respondents disprove the
contention of petitioner; they also showed that they sustained
tlirmages due to the defective concrete ithad delivered. These were
llt'ms of actual damages th"y sustained due to its breach of contract.
Mornl and Nominal Damageq
Atlorney's Fees and Costs
Petitioner assails the award of moral damages, claiming no
trrnlicc or bad faith on its part.
we disagree. Respondents were deprived of the comfort and
fety of a house and were exposed tb the agony of witnessing
llrt' wastage and the decay of the structure r* *br" than seven
y('lrs. ln lrcr Mcmorandum, Respondent Nelia G. Cid describes
Itlt' l'arrtily's strffcrings arising fiom the unrcasgnabp. clclay in
SCRA
rsVillaflor vs. CA, ibid., De Ysasi lll vs. National Labor Relations Commission. 231
173, lB5, March 11,1994.
r6Chung Fu lndustries
{Phils.), lnc. vs. Court otAppeals. 206 SCRA 545, 556, February
25, 1992.
lrt'
sa
4()
r
AnEnNnrvr Dtspurr Rrsorurtoru Acr
or 2004
c
the construction of their residence, as follows: "The family lives

separately for lack of space to stay in. Mrs. Cid is staying in a
small dingy bodega, while her son occupies another makeshift
room. Their only daughter stayed with her aunt from 1992 until
she got married rn1.996. x x x. The Court also notes that during
the fendency of the case, Respondent Vicente Cid died without
seeing the completion of their home.17 Under the circumstances,
the award of moral damages is proper.
Petitioner also contends that nominal damages should not
have been granted, because it did not breach its obligation to
respondent spouses.
Nominal damages are recoverable only
if no actual
or
substantial damages resulted from the breactU or no damage was

or can be showt . Sit't." actual damages have been proven by
private respondents for which they were amply compensated,
they are no longer entitled to nominal damages.
Petitioner protests the grant of attorney's fees, arguing that
respondent spouses did not engage the services of legal counsel.
Also, it contends that attorney's fees and litigation exPenses are
awarded only if the opposin g patty acted in gross and evident
bad faith in refusing to satisfy plaintiff's valid, just and

demandable claim.
We disagree. The award is not only for attorney's fees, but
also for expenses of litigation. Hence, it does not matter if
respondents represented themselves in court, because it is obvious
that they incuired expenses in pursuing their action before the
CIAC, as well as the regular and the appellate courts. We find no
reason to disturb this award.
WHEREFORE, the Petition is DENIED and the assailed
Decision AFFIRMED; howeve{, the award of nominal damages
ts DELETED for lack of legal basis. Costs against petitioner.
SO ORDERED.
rTGovs. lntermediateAppellateCourt, 197 SCRA22,28-29, May 13, l99l;Ventenilla
(
vs. Centeno. I SCRA 215, 220, January 28, l96l; Robes-Francisco Realty vs. otrrt of First
l97B
30,
October
65-66,
lnstance. B(, SCRA 59,
50
ha
pte
- T; i:,Tj;,lll,T?J; :,:, ", Arb
tra
ri
SEC. 26. Meaning of "Appointing Authority.,,
"Appointing Authority" as used in the Model Law

shall mean the person or institution named in the
arbitration agreement as the appointing authority; or
the regular arbitration institution under whose rules
the arbitration is agreed to be conducted. where the
parties have agreed to submit their dispute to institutional arbitration rules, and unless they have agreed
to a different procedure, they shall be deemed to have
agreed to the procedure under such arbitration rules
for the selection and appointment of arbitrators. In
ad hoc arbitration, the default appointment of an
arbitrator shall be made by the National President of
the Integrated Bar of the Philippines (IBp) or his duly
authorize d representative.
Appointing authority defined and explained.

In arbitratiory the "Appointing Authority" is by agreement
rrf the parties. Thus, in the
Model Law, appointing authority shall

mean the person named in the arbitration agreement as the
rrppointing authofity; or the regular institution under whose rules,
nnd unless they have agreed to a different procedure, they shall
lre deemed to trave ug."Jd to the procedur".rrld"r such arbiiration
rules for the selection and appointment of arbitrators. In ad hoc
nrbitration, the default appointment of an arbitrator shall be made
by the National President of the Integrated Bar of the Philippines
(lltP) or his duly authorized representative.ls The appointing
rtuthority, therefore of the National President of the Ir*egrated
llirr of the Philippines may be delegated.le
SEC. 27. What Functions May be performed by
Appointing Authority.
functions referred to in
- The
Articles 1L(3), t't(4),13(3)
and 14(1) of the Model Law
shall be performed by the Appointing Authority,
'i's,'" i."
r''(r( ,( ,
l,
l\l
i,,
\(
tn
,t
/(t,
tl ( 't
Ii,1 rrrl rlir Ar

tr r ,, ll rtr I
I No g)11,,.
tit
AlrrRnnrtvr Dtspure Rrsolurtoru Acr or 2004
REpusllc
Chapter 4
Acr No. 9285
lnternational Commercial Arbitration
(i) to prevent irreparable
unless the latter shall fail or refuse to act within thirty
loss or
injury;
(30)daysfromreceiptoftherequestinwhichcase
(ii)
the apilicant may renew the application with the

Court.
to provide security for the performance of any obligation;
(iii) to produce or preserve any eviFunction defined-
dence; or
a particular
Functionmeans an activity that is appropriate to
"Appointing
business or profession.20 The functions of the
No' 9285'
Authori ty" aieenumerated in Section 27,Republic Act
sEc.
28.
(iv) to compel any other appropriate

act or omission.
(3)
The order granting provisional relief

may be conditioned upon the provision
of security or any act or omission specified in the order.
(4)
Interim or provisional relief is re-
Grant of lnterim Measure of Protection.
-(a)Itisnotincompatiblewithanarbitration
agreementforapartytorequest,beforeconstitution
of the tribunal, iro," a Court an interim measure of

protectionandfortheCourttograntsuchmeasure.
After constitution of the arbitral tribunal and during
arbitral proceedings, a request for an interim measure
of protection, or riodificition thereof' may be made
with the arbitral tribunal or to the extent that the
arbitral ftibunal has no Power to act or is unable to
the
act effectively, the request may be made with
Court. The arbitral tritunal is deemed constituted
when the sole arbitrator or the third arbitrator, who
and
has been nominated, has accepted the nomination
written communication of said nomination and
acceptancehasbeenreceivedbythepartymakingthe
quested by written application transmitted by reasonable means to the Court

or arbitral tribunal as the case may be
and the party against whom the relief is
sought, describing in appropriate detail
the precise relief, the party against
whom the relief is requested, the

grounds for the relief, and the evidence
supporting the request.
(s)
The order shall be binding upon the

parties.
(6)
Either party may apply with the Court
request.
for assistance in implementing or
(b)Thefollowingrulesoninterimor
provisional relief shall be observed:
(1) Any Party may request that provisional
reliei be granted against the adverse
partY.
Ql
/('See Section
Such relief may be granted:
27, RePublic Act No 9285
52
(71
enforcing an interim measure ordered

by an arbitral tribunal.
A party who does not comply with the
order shall be liable for all damages
resulting from non-compliance, including all expenses/ and reasonable
attorney's fees, paid in obtaining the
order's iudicial enforcement.
furERrunrve DrspurE Resolurroru
Acr or 200+
Court may grant interim measure.

It is not incompatible with an arbitration agreement for a
party to request, before constitution of the tribunal, to request from
a Court an interim measure. After constitution of the arbitral
tribunal and during arbitral proceedings, a request for an interim
measure of protection, or modification thereof, may be made with
the arbitral tribunal or to the extent that the arbitral tribunal has
no power to act for an interim measure of protectiory the request
may be made with the Court.2l
lnterim defined.
lnterim means in the meantime.22 An interim order is a
temporary orde4, made until another or final order takes its place
or final event occurs.23
When arbitral tribunal deemed constituted.

The arbitral tribunal is deemed constituted when the sole
arbitrator or the third arbitratoq, who has been nominated, has
accepted the nomination and written communication of said
nomination has been received by the party making the request.2a
Authority for Arbitrator to Grant

lnterim Measure of Protection.
- Unless otherwise
agreed by the parties, the arbitral tribunal may, at the
request of apafty, order any party to take such interim
measures of protection as the arbitral tribunal may
consider necessary in respect of the subject-matter of
SEC. 2g.Further
the dispute following the rules in Section
28,
paragraph 2. Such interim measures may include but
shall not be limited to preliminary injunction directed
against aparty, appointment of receivers or detention,
preservation, inspection of property that is the subiect
2lSee Section ZB(a), Republic Act No. 9285.
22Bouvier3 Law Dictionary, citing 2 Bell Comm. 265,
zrBarron3 Law Dictionary, 20O3 Edition, p. 254.
7a3rd sentence, Section
p. 1649.
Z9lal, Republic Act No. 9285.
54
chaprero-fi i:,'"'"',,til,T"".t;3,?,",Arbirrarion
of the dispute in arbitration. Either pafty may apply
with the court for assistance in implementing or
enforcing an interim measure ordered by an arbitral

tribunal.
lnterim measures of protection by arbitraton

An arbitral tribunal may grant interim measures of protection
it may consider necessary,in respect of the subject matter in

dispute, unless otherwise agreed upon by the parties. It shall
include but shall not be limited to: (1) pieliminary injunction
as
directed against aparty; (2) appointment of receivers or detention;

(3) preservatiory inspectior"t oi the property that is the subject
of
the dispute in arbitration. Either party m ay appry with the Court
for assistance in the implementingbr enforcing aninterim measure
ordered by the arbitral tribunal.2s
sEC. 30. Place of Arbitration

parties are
- Therining
free to agree on the place of arbitration.
such
agreement, the place of arbitration shail be in Metro
Manila, unless the arbitral tribunal, having regard to
the circumstances of the case, includirlg the
convenience of the parties shall decide on a different

place of arbitration.
The arbitral tribunar may, unless otherwise
agreed by the parties, meet at any prace it considers

appropriate for consultation among its members, for
hearing witnesses, experts or the parties, or for

inspection of goods, other property oi documents.
Rules on place of arbitration.
. The parties
a1e free to agree on the place of arbitration. Failing

such agreement, the place of arbitration shall be in Metro Manila,
unless the arbitral tribunal, having regard to the circumstances

tlf thc case, including the conveniur,"" of the parties shall decide
"'\t,r,\rtlt<nt /().lit'1 lrrltlrr
Ar I No
()
)Il1,
55
ALTERi'rcrrvE
Drspurr REsoLurroN Acr
or 2004
Chapter
on a different place of arbitration. The arbitral tribunal may, unless
otherwise agreed by the parties, meet at any place it considers

appropriate for consultation among its members, for hearing
witnesses, experts or the parties, or for the inspection of goods,
other property or documents.26
- fiifl':l,ff:
may order that any documentary evidence

shall be accompanied
by u translation.into.the_language or languages
agreed upon by
the parties or determined in u..oidunce
wlth paragraph 1, section
31, Republic Act No. 92g5.22
The
SEC. 31. Langunge of the Arbitration.
parties are free to agree on the language or languages
to be used in the arbitral proceedings. Failing such
agreement, the language to be used shall be English
in international arbitration, and English or Filipino
for domestic arbitration, unless the arbitral tribunal
shall determine a different or another language or
languages to be used in the proceedings. This agreement or determination, unless otherwise specified
therein, shall apply to any written statement by a
parfir any hearing and any award, decision or other
communication by the arbitral tribunal.
The arbitral tribunal may order that any documentary evidence shall be accompanied by trans^
by
lation into the language or languages agreed upon
the parties or determined in accordance with Paragraph 1 of this Section.
Language or languages of arbitration,
As a general rule, the parties are free to agree on the language
or languages to be used in the arbitral proceedings. Failing such
agreement, the language to be used shall be English in

international arbitration, and English and Eilipino tn domestic
arbitr ati o n, unle ss the arbitr al tribunal shall determine a different
or another language or languages to be used in the proceedings.
This agreement or determination, unless otherwise specified
therein, shall apply to any hearing and any award, decision or
other communication by the arbitral tribunal. The arbitral tribunal
26See
Section 32. Republic Act No. 9ZB5
56
T:,t;:,?,u, o.o,,rar.n
57
CHAPTER
DOMESTIC ARBITRATION
CHAPTER 6
ARBITRATION OF CONSTRUCTION
DISPUTES
SEC.S2.LawGoaerningDomesticArbitration._
Domestic arbitration shafilontinue to be governed
,,The
by Republic Act No. 875, otherwise known as
Arbitration Law " as arnended by this chapter. The
term,,domestic arbitration" as used herein shall mean
an arbitration that is not international as defined in
Article 1(3) of the Model Law'
SEC. 34. Arbitration of Construction Disputes:

Goaerning Law.
- The arbitration of construction
disputes shall be governed by the Executive Order No.
1-008, otherwise known as the "Construction Industry
Arbitration Law."
Domestic Arbitration defined'

No'
The term "domestic arbitration" asused in Republic Act
defined
as
g2gs,shall mean an arbitration that is not international
in Article 1(3) of the Model Law. Domestic arbitration shall
continue to bg governed by Republic Act No. 876, otherwise
known as "The"Arbitration Law," as amended by Chapter 5,
Republic Act No. 9285.1
Governing law on construction arbitration disputes.

The arbitration of construction disputes shall be governed
by Executive Order No. 1008, otherwise known as the
"Construction Industry Arbitration Law."l Executive Order No.
1008 vests upon the Construction Industry Arbitration
Commission (CIAC) original and exclusive jurisdiction over
disputes arising from, or connected with contracts entered into
by the parties involved in construction in the Philippines.2
sEc. 33. Applicability to Domestic Arbittation.
8, L0',LL,L2,lg,l4,Lgand 19 and'29 to 32 of
-theArticles
Model Law and sections 22 to 31 of the preceding
chapter 4 shall apply to domestic arbitration.
Applicability of Model Law and Republic Act No. 9285 to

domestic arbitration'
There are certain provisions of the Model Law and Republic
Act No. 9285 which, by virtue of section 33, Republic Act No'
They are
9285 are expressly appiicable to domestic arbitration'
enumerated in that provision of law'2
lsee Section 32, Republic Act No' 9285'
2See Section 32, Republic Act No 9285'
Effect of decisions of voluntary arbitrators.

While under the law decisions of voluntary arbitrators are
irccorded finality, the same may still be subject to judicial review
such as where there was a violation of a party's right to due
process and to be heard.3
SEC. 35. Coaerage of the Law.

Construction
disputes which fall within the original and exclusive
iurisdiction of the Construction Industry Arbitration
Commission (the "Commission") shall include those
l\r,r'\<'r tion 14. licptrtrlir Act No. 9285
"\t'r'Mclro ( on\lru(lr()tt. lttr vs. ( h,rth.tnt Propcrticr, Inr., l(t'.i SCRA (rcl7
't Jtrtr t,rll ltrrlttslttr'., lnl('l lt,rlton,rl ( r)rlx)t.rll()t )v\ ( olrrl ol /\1 rl rr',tl\, l',', S( [{A l',',
5()
AnrRrunrvr DrspurE Rrsolurroru Acr or 2004
Chaprer._X':ryii:,ii'"il;,1",,,,.:1,,ono,,0,,",
between or among parties to/ or who are otherwise

bound by, an arbitration agreement, directly or by
reference whether such parties are proiect owner,
contractoq, subcontractol, fabricatol, proj ect managel,
design professional, consultant, quantity surveyor,
bondsman or issuer of an insurance policy in a construction project.
The Commission shall continue to exercise

original and exclusive iurisdiction over construction
disputes although the arbitration is "commercial"
pursuant to Section 2L of this Act.
Matters included in exclusive original jurisdiction of CIAC.
Construction disputes which fall within the exclusive
original jurisdiction of the CIAC shall include those between or
among the parties, or who are otherwise bound by, anarbitration
agreement, directly or by reference, whether such parties are
project owner, contractor, subcontractor, fabricator, project
manageq, design professional, consultant, quantity surveyor,
bondsman or issuer of an insurance policy in a construction
project.a The Commission shall continue to exercise original and
exclusive jurisdiction over construction disputes although
arbitration is "commercral" pursuant to Section 21 of Republic
Act No. 9285.5
SEC. 36. Authority to Act as Mediator or Arbitrator.
- By written agreement of the parties to a dispute, an arbitrator may act as mediator and a mediator
may act as arbitrator. The parties may also agree in
writing that, following a successful mediation, the
mediator shall issue the settlement agreement in the
form of an arbitral award.
4see Section
slbid.
Authority defined.
Authority is the permission or power delegated to another.
Jhis Tuy be express or implied. If express, it is usually embraced
in a document called apower of attoriey.6
sEC. 37. Appointment of Foreign Arbitrator.
The Construction Industry Arbitration commission
(cIAc) shall promulgate rules to allow for the
appointment of a foreign arbitrator as co-arbitrator
or chairman of a tribunal a person who has not been
previously accredited by GIAC: proaided, That:
(a) the dispute is a construction dispute in
which one party is an international partli
(b) the person to be appointed agreed to abide
by the arbitration rules anilpolicies of CIAQ
(c) he/she is either co-arbitrator upon the
nomination of the international partlior he/she is the
common choice of the two clAc-accredited arbitrators
first appointed, one of whom was nominated by the
international party; and
(d) the foreign arbitrator shall be of different
nationality from the international party.
lnternational party defined.

"International qarty-" shall mean an entity whose
place of
business is outside the Philippines. It shall not include

a domestic
subsidiary of such internation-al party or co-venfurer in a joint

venture with a party which hai its place of business in the
f 'hilippines. The b-rTforeign arbitrator
shall mean a person who
is not a national of the Philippines.T
''ll,rtorrs l,rw l)lr lrorr,rry, )00 I I tlrtrorr, 1,l 40
'\r'r'\t'r trorr
l(1rf, lir'1 rrrlrlrr Ar I
No (/./lli,
(rl
furrRrunrvr Dtspurr Rrsolurtoru Acr or 2004

C ha
pter
. -i'|l,',,.::,ff '"i3;
l,,,2.,.?,?,,
on o*
0,,",
SEC. 39. Court to Dismiss Case Inaolaing a

A Regional Trial Court before
which a construction- dispute is filed shall, upon
becoming aware, not later than the pre-trial conference, that the parties had entered into an arbitration
agreement, dismiss the case and refer the parties to
arbitration to be conducted by the CIAC, unless both
parties, assisted by their respective counsel, shall
submit to the Regional Trial Court a written agreement
exclusively for the Court, rather than the CIAC, to
resolve the dispute.
Who shall appoint foreign mediator?
Construction Dispute.
The Construction Industry Arbitration Commission (CIAC)
shall promulgate rules to allow for the appointment of a foreign

arbitrltor as co-arbitrator or chairman of a tribunal a person who
has been previously accredited by CIAC: Proaided, That: (1) the
dispute is a construction dispute in which one Party is an
international party; (2) the Person to be appointed agreed to abide
by the arbitrition rules and policies of the CIAC; (3) he / she is
either co-arbitrator upon the nomination of the international part!,
or he, she is the common choice of the two CIAC accredited
arbitrators first applied, one of whom was nominated by the
international party| and (4) the foreign arbitrator shall be of
different nationality than the international Party.8
General rule is dismissal of construction arbitration dispute.

A regional trial court before which a construction dispute is
filed shall, upon becoming aware, not later than the pre-trial
conference, thatthe parties entered into an arbitration agreemenf
dismiss the case and refer the parties to arbitration to be conducted by
the CIAC unless both parties, assisted by their respective counsef
shall submit to the regional trial court, a written agreement
exclusively rather than the CIAC, to resolve the dispute. Because
the CIAC has exclusive original jurisdiction over11 disputes arising
from or connected with in construction in the Philippines, whether
the dispute arises before or after completion if the contract, or
ufter abandonment or breach thereof.l2
SEC. 35. Applicability to Construction Arbi'

The provisions of Sections l7(d, of Chapter
2, and, Sections 28 and 29 of this Act shall apply to
arbitration of construction disputes covered by this
tration.Chapter.
Applicability to construction arbitration.

The provisions of section 17(d) and sections 28 and 29,
Republic Act No. 9285 shall apPly to arbitration of construction
disputes.e
Construction lndustry Arbitration Commission (ClACl

jurisdiction.
Section 4 of Executive Order No. 1008 expressly vests in the
Construction Industry Arbitration Commission (CIAC) original
and exclusive jurisdiction over dispute arising from or connected
with construction contracts entered into by parties that have
agreed to submit their dispute to voluntary arbitration.lO
I
BSee
Section 37, lbid.
eSee Section
38, Republic Act No. 9785.

roPhilrock, lnc. vs. Construction lndustryArbitration Commission. 3t,(/
62
\(
RA l{12
llSr:t' 5t.r tion 39, Repubhc Act No 9285

r/Mt.lro ( orrslrtrr lron. lrrr vs ( h,tth,rrrr l'l<lpt.rltt's.
63
lrtr
l5(r S('tlA /r(,)/
Cha
pter
jTff''::"1-':ffi
:r'f;irra r Awa rds
by the Supreme Court. But a CIAC award shall not be confirmed

as final and executory as provided in EO No. L008.1
CHAPTER 7
JUDICIAL REVIEW OF
ARBITRAL AWARDS
A.
DOMESTIC AWARDS
sEc.40.ConfirmationofAward,-Theconfir.
mation of a domestic arbitral award shall be governed

by Section 23 of the R.A- No. 876'
A domestic arbitral award when confirmed shall
be enforced in the same manner as final and executory
decisions of the Regional Trial Court'
The recognition and enforcement of an award in
an international commercial arbitration shall be
governed by Article 35 of the Model Law'
The confirmation of a domestic award shall be
made by the Regional Trial Court in accordance with
the Ruies of Piocedure to be promulgated by the
Supreme Court.
A CIAC Arbitral award need not be confirmed by
the Regional Trial Court to be executory as provided
under E.O. No. 1008.
Section 22, Republic Act No. 87 6 governs domestic awards'

The confirmation of a domestic award shall be governed by
section 23, Republic Act No. 876. A domestic award when
confirmed shali be enforced in the same manner as final and
executory decisions of the Regional Trial Court' The recognition
of an international commerciil arbitration shall be governed by
Article 35 0f the Model Law. The confirmation of domestic award
shall be in accordance with the Rules of Procedure as promulgated
Final and executory judgment explained.

"Fir:ral" in the phrase "judgments and final orders" found in
Section 49 ofthe Rules of Court has two accepted interpretations.
ln the first sense, it is an order that one can no longer appeal
because the period to do so has expired, or because the order has
been affirmed by the highest possible tribunal involved. In the
second sense, it connotes that it is an order that leaves nothing
else to be done, as distinguished from that which is interlocu tory.2
Final judgments on the merits rendered by a court of competent
jurisdiction is conclusive on the rights of the parties and their
privies and constitutes an absolute bar to subsequent actions
involving the same claim, demand or cause of action.3 A final
decision rendered by a competent court can no longer be
relitigated.a
Once a decision becomes final and executory, it is removed
from the power or jurisdiction of the Court which rendered it to
further amend, much less revoke it to further amend, much less
rcvoke it.5 A judgment becomes final and executory by operation
of law.6 Finality of judgment becomes a fact upon the lapse of the
pcriod for appeal if no appeal is perfected.T
Confirmation defined.
Confirmation is the act of giving formal approval.s

('orrfirmation by the Regional Trial Court, therefore, of a domestic
rtward means court approval thereof.
rSee Section 40, Republic Act No. 9285.

/Macahilig vs. Heirs of Grace M. Magalit. 344 SCRA B3B.
'l)cvelopment Bank of the Philippines vs. Court of Appeals. 357
rlbiri
"Al,rtr.rns,rs
vs lntermediate Appellate Court, 204 SCRA 304.

vs ('orrrt of Aprlrr'.rls. ?04 SCRA 367
''( rly ol M,rrril,r
/llnl
"lfl,
rr
l.', l, rw
I )tr
liotr, rty,
/llr I rliltotr, p ltl)

(r5
SCRA
626
AnERrumvr Drspurr Rrsolurroru Acr
or 2004
C
Function of ordering execution of judgment.

The function of ordering execution of judgment being
judicial, devolves upon the judge whereas the act of issuing a
writ of execution may be performed by another person, like the
clerk of court.e The court loses jurisdiction upon finality of the
decision, except to order its execution. A final judgment or order
becomes "final and executory" upon expiration <lf the periodlO
for appeal therefrom where t o upp*al his been duly perfected
oI, an appeal therefrom having been takery the judgment of the
appellate court becomes final-it is called "final and executory
judgment because execution at such point issues as a matter of
right.11 Execution pending appeal is the only exception to the
general rule that only a final judgment may be executed, thus the
existence of "good reasons" for it is what confers discretionary
power to issue a writ of execution pending appea1.12
The case of Del Monte Corporation-USA vs. Court of Appeals

(3sr scRA 3731.
In this case, the Supreme Court held that: "Even before the
enactment of Republic Act No. 876, the Supreme Court has
countenanced the settlement of disputes through arbitration; Unless
the agreement is such as absolutely to close the doors of the courts
against the parties, which agreement would be void, the courts
will look with favor upon such amicable arrangement and will
only interfere with great reluctance to anticipate or nullify the action
of the arbitrator." Moreove{, "Only parties to the Agreement, their
assigns or heirs have the right to arbitrate or could be compelled to
arbitrate ." FinalLy, "Where the issue before the Court could not be
speedily and efficiently resolved in its entirety if simultaneous
arbitration proceedings and trial, or suspension of trial pending
arbitration" is allowed, the trial court should hear and adjudicate
the case in a single proceeding." Portions of the decision follow.
eCasaje vs. Cabalite, 331 SCRA 508.
toLizardo, Sr. vs. Montano, 332 SCRA 163.
rrlntramuros Tennis Club vs. Philippine Racing Authority, 341 S( Iln lio
t)lbid
ha p re
r'
jT,.-,J,l:,1-':ffi
3 X!o,,,
^,Awa
rds
The crux of the controversy boils down to whether the

dispute between the parties warrants an order compelling them
to submit to arbitration.
Petitioners contend that the subject matter of private
respondent's causes of action arises out of or relates to the
Agreement between petitioners and private respondents. Thus,
considering that the arbitration clause of the Agreement provides
that all disputes arising out of or relating to thJAgr""-J1t
or the
parties' relationship, including the termination tf,ereol shall
be
resolved by arbitration, they insist on the suspension of
the
lroceedings in civil Case No. 2632-MN as mandut"a by sec.7 of
I{A
976.13
sec. 7. stay of Ciail Action.

- If any suit or proceeding be
hrought.rpgr an issue arising out_of
an ugr""*unt providing for
nrbitration thereof, the courtin which rrrlh suit or proceediig is
pending, uPon being satisfied that the issue involved in such
Juit
or proceeding is referable to arbitration, shall stay the action or
proceeding until an arbitration has been had in accordance
with
thc terms of the agreeme nt. prouided, That the uppli.u^t ior the
ntay is not in default in proceeding with such arbiiration.
Private respondents claim, on the other hand, that their cause
i'Arts.20,2L and2J of the civil code, the
tlt'tcrmination of which demands a full blown trial, as correctly
f.'ld bythe Court of Appeals. MoreoveS they claim that the issues
ht'frre the trial court were'ot joined so thaithe Honorull"
|udge
wns not given the opportunity to satisfy himself that the issue
lnv.lved in the case was referable to arbitration. They submit
thnt, apparently, petitioners filed a motion to suspend proceedings
lnstcad of sending a written demand to private respondents
to
arlritrate because petitioners were not sureihether thl case
could
lrt' n subject of arbitration. They maintain that had petitioners
done
rrf action are rooted
xo
lnd
private_responclents failed to answer the demand,

Pt'litione''rs could have filed with the trial court their demand for
nrlritration that would warrant a determination by the juclge
'
'llrr,
Ar lrrlr, rlror r I , rw
67
AnrnN,qrrvr Drspurr Rrsoluroru
Acr or 2004
chaprer
whether to refer the case to arbitration. Accordingly,private

respondents assert that arbitration is out of the question.
Private respondents further contend that the arbitration
clause centers more on venue rather than on arbitration. They
finally allege that petitioners filed their motion for extension of
time to file this petition on the same datela petitioner DMC-USA
filed a petition to compel private respondent MMI to arbitrate
before the United States District Court in Northern California,
docketed as Case No. C-98 -4446. They insist that the filing of the
petition to compel arbitration in the United States made the
petition filed before this Court an alternative remedy and, in a
way, an abandonment of the cause they are fighting for here in
the Philippines, thus warranting the dismissal of the present
petition before this Court.
There is no doubt that arbitration is valid and constitutional
in our jurisdiction.ls Even before the enactment of RA 876, this
Court has countenanced the settlement of disputes through
arbitration. Unless the agreement is such as absolutely to close
the doors of the courts against the parties, which agreement would
be void, the eourts will look with favor upon such amicable
arrangement and will only interfere with great reluctance to
anticipate or nullify the action of the arbitrator.l6 Moreover, as
RA 876 expressly authorizes arbitration of domestic disputes,
foreign arbitration as a system of settling commercial disputes
was likewise recognized when the Philippines adhered to the
United Nations " Cont)ention on the Recognition and the Enforcement
of Foreign Arbitrnl Awards of 1958" under the 10 May 1965
Resolution No. 77 of the Philippine Senate, giving reciprocal
recognition and allowing enforcement of international arbitration
agreements between parties of different nationalities within a
contracting state.17
jT,T,::"i-'Jffi
3,.'ff
iffatAwards
A careful examination of the instant case shows that the

arbitration clause in the Distributorship Agreement between
petitioner DMC-usA and private respond"r,i MMI is valid and
the dispute between the puiti"r is arbiirable. HoweveL this
Court
must deny the petition.
The Agreement between petitioner DMC-USA and private
respondent MMI is a contract. The provision to submit to

arbitration any-part
dispute arising therefrom and the relationship of
the parties is
of that contract and is itself a contract. As a
rule, contracts are respected as the law between the contracting
partie_s and produce effect as between them, their assigns
and
heirs.l8 Clearly, only parties to the Agreem ent, i.e., petltioners
DMC-usA and its Managing Director for Export sales paul E.
Derby, Jr., ury| private respondents MMI uttd itr Managing
l)irector LILY SY are bound 6y the Agreement and its arbitration
c'lause as they are the only signatoriei thereto. Petitioners Daniel
Collins and Luis Hidalgo, attd private respondent sFI, not parties
to- rlr" Agreement and cannot u,run be considered
assigns o. h"i6
rf the parties, are not bound by the Agreement and the arbitration
c'lause therein. Consequently, referril to arbitration in the
state
of California pursuant to the arbitration clause and the suspension
of the proceedings in Civil Case No. 2637-MN pending thf return
trf the arbitral award could be called forle but oilyas to"petitioners
DMC-usA and Paul E. Derby, Jr., and private tbrporrdents MMI
nnd LILY sY and not as to the other parties in this case, in
rtccordance with the recent case of Heirs oy augusto L. Salas,lr. as.
l.!!1:!il Realty corporation,2o which r.rp"rr"-dea ihat of Toyota' Motor
Ithilippines Corp. us. Court of Appeals.il
rn Toyota, the Court ruled that ',[t]he contention that the
nrlritration clause has become dysfunctional because of the
Jtrcscnce of third parties is untenable ratiocinating that [c]ontracts
ra
lB November 1998.
r5Chapter 2, Title XIV Book lV New Civil Code of the Philippines.
l6Puromines, lnc. vs. Court of Appeals, G.R. No. 91228,22 March 1993, 220 SCIIA
7Bt.
rTNational Union Fire lnsurance Company of Pittsburg vs. Stolt-Nielst'n. PhiIpprnt's
lnc., G.R. No. 87958, 26 Aprrl 1990, I 84 SCRA 682.
r"Art I J I I, Nc'w
r''\r't' Nott'
''"(r
''rt r
Crvll Code of the phrlippines.
l(-l.
l{ Nr) I .l') l(,). I I l)t'rr,rrrlrt,r l()()(), l)O SCRA6l0

li Nr t l(l)tltll, / l)t'tOilrlX,r l,),)). ) 11, \( liA,/ J1r
('r()
furrRN,crrvE DrspurE Rrsolurtoru
Acl or 2004
Repuauc
Chapter 7
are respected as the law between the contracting parties22 and

that "[a]s such, the parties are thereby expected to abide with
good faith in their contractual commitments.23 Howeveq, in Salas,
lr., only parties to the Agreement, their assigns or heirs have the
right to arbitrate or could be compelled to arbitrate. The Court
went futher by declaring that in recognizing the right of the
contracting parties to arbitrate or to compel arbitration, the
splitting of the proceedings to arbitration as to some of the parties
on one hand and trial for the others on the other hand, or the
suspension of trial pending arbitration between some of the
parties, should not be allowed as it would, in effect, result in
multiplicity of suits, duplicitous procedure and unnecessary
delay.2a
The object of arbitration is to allow the expeditious

determination of a dispute.2s Clearly, the issue before us could
not be speedily and efficiently resolved in its entirety if we allow
simultaneous arbitration proceedings and trial, or susPension of
trial pending arbitration. Accordingly, the interest of justice would
only be served if the trial court hears and adjudicates the case in
a single and cemplete proceedi.g.t'
WHEREFORE, the petition is DENIED. The Decision of the
Court of Appeals affirming the Order of the Regional Trial Court
of Malabory Metro Manila, in Civil Case No. 2637-MN, which
denied petitioners' Motion to Suspend Proceedinss, is AFFIRMED.
The Regional Tiial Court concerned is directed to proceed with
the hearing of Civit Case No. 2537-MN with dispatch. No costs.
SO ORDERED.
zzCiting Mercantile lns. Co. vs. Felipe Ysmael, Jr. & Co., lnc., G.R. No. 43862. l3
January 1989, | 69 SCRA 66.

23ciring Ouillian vs. Court of Appeals. G.R. No.
55457,20 January 1989, 169
SCR
279.
24lbid.
zsCoquia, Jorge R., Annotation, Arbitration as a Means of Reducing Court Congestion,

29 Juty t977, 78 SCRA l2l.
26See
Note 20.
70
Acr No. gZB5
Judicial Review of ArbitralAwards
sEC. 41. vacation
Autard.- A party to a domestic
arbitration may question the arbitral award with the

appropriate Regional Trial court in accordance with
rules of procedure to be promulgated by the supreme

Court or.ty on those grounds enumerated in section
25 of Republic Act No. g76. A.y other ground raised
against a domestic arbitral award shall be disregarded
by the Regional Trial Court.
section 25, Republic Act No. gr6 on grounds for vacating

domestic awards.
_ In any one of the following cases, the court must make an
order modifying or correctingthe award, upon application of any
party to the controversy which was arbitrited:
(a) where there was an evident miscalculation of figures,

or an evident mistake in the description of any person, thi"ng
or
property referred to in the award; or
(b) where the arbitrators have awarded upon a matter not
submitted to them, not affecting the merits of the decision upon
the matter submitted; or
(c) where the award is imperfect in a matter of form not
affecting the merits of the coniroversy, and if it had been a
commissioner's report, the defect could have been amended or
disregarded by the court.
The order may modify and correct the award so as to effect
the intent thereof and promote justice between the parties.,
Methods of vacating an award.
A party to a domestic arbitration may question an arbitral
ruward with the appropriate Regional Triai Cburt in accordance
with rules of procedure to be promulgated by the s,rpr"*" Court
orrlv on those grounds enumerated in siction is oy n pLwi, Act
No.
/\r.r ltrlrr
/',,
lir'1 rr
rlrlrr Ar t Nr
t ll/(,
7t
AnrRxRrve Drspure Rrsolurroru Acr
or 2004
Repueuc
Chapter 7
876. Any other ground raised against a domestic arbitral award

shall be disregarded by the Regional Trial Court.28
B.
FOREIGN ARBITRAL A\YARDS
Application of theNew York Conaention.

The New York Convention shall govern the
-recognition and enforcement of arbitral awards
covered by said Convention.
The recognition and enforcement of such arbitral
awards shall be filed with the Regional Trial Court in
accordance with the rules of procedure to be promulgated by the Supreme Court. Said procedural rules
shall provide that the party relying on the award or
applying for its enforcement shall file with the court
the original or authenticated copy of the award and
the arbitration agreement. If the award or agreement
is not made in any of the official languages, the party
shall supply a duly certified translation thereof into
any of such.languages.
The applicant shall establish that the country in
which foreign arbitration award was made is a party
to the New York Convention.
If the application for reiection or suspension of
enforcement of an award has been made, the Regional
Trial Court fitalr if considers it proper, vacate its
decision and may also, on the application of the party
claiming recognition or enforcement of the award,
order the party to provide appropriate security.
SEC.
Vacqte means to render void; to set aside.31 It is a fundamental

precept that a final decision cannot be amended or corrected
t'xcept for clerical errors, mistakes or misprisions. Because the
t'ourt loses jurisdiction upon the finality of its decisiory except to
orcler its decision within its lifetime.32 An award, being merely a
partial or final decision of an arbitrator in resolving the issue in
t'orrtroversy is not a final decision of a court.
i
i
l
i
SEC. 43. Recognition and Enforcement of Foreign
Arbitral Awards Nof Coaered by the New York Con''l\t'r lton t(w). lk'pLrbltr Act No. 9285
"'\r'r lrr tt 4). lltttl.
rrll, ltoli, l,rw l)tr ltottny, /OO I I rlitton.
tt4(;
1t
' l t,r,nt lrr ',1 v', MoI tl, u to I l.) 'r( lin I/, I
Section 41, Republic Act No. 9285.
72
Application of the New York Convention.
Vacate defined and explained.
285ee
Awards approved in 1958 and ratified by the Philippine Senate

under Resolution No. 72.2e
The New York Convention shall govern the recognition and

enforcement of awards by said Convention. The recognition and
e'nforcement of such arbitral awards shall be filed with the
Regional Trial Court in accordance with rules of procedure to be
promulgated by the Supreme Court. Said procedural rules shall
provide that the party relying on the award or applying for its
t'nforcement shall file with the court the original or authenticated
copy of the award and the arbitration agreement. If the award or
irgreement is not made in any of the official languages, the party
shall apply a duly certified translation thereof in any of such
languages. The applicant shall establish that the country in which
the foreign arbitration award was made a party to the New York
Convention. If the application for rejection or suspension of the
rrward has been made, the Regional Trial Court rr.ay, if it considers
it propeq, vacate its decision and may also, on the application of
the. party claiming recognition or enforcement of the award, order
the party to provide appropriate security.30
42.
New York Convention defined.

New York Convention means the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral
Acr No. 9285
73
Anrnrunrvr Drspurr Rrsolurott Acr
or 2004
cha prer
The recognition and enforcement of

z)ention
foreign arbitral awards not covered by the New York
Convention shall be done in accordance with procedural rules to be promulgated by the Supreme Court.
The Court malr on grounds of comity and reciprocity,
recognize and enforce a non-convention award as a
convention award.
Recognition defined.
Recognition is a confirmation that an act done for another
person was authorized. It is the formal admission that a person,
entity or thing has a particular status.33
Enforcement defined.
Enforcement is the act or process of compelling compliance
with a law, mandate or command.3a Enforcement can be done
extrajudicially or by means of legitimate law enforcement
agencies.
Recognition and enforcement of non-New York Convention

awards.
The recognition and enforcement of foreign arbitral awards
not covered by the New York Convention shall be done in
accordance with procedural rules to be promulgated by the
Supreme Court. The Court may, on grounds of comity and
reciprocity, reco gnize and enforce a non-convention award as a
convention award.3s
Comity and "judicial comity" defined and explained.
Comity is a rule of courtesy by which one court defers to the
concomitant jurisdiction of another. "fudicial comity is not a rule
of law, but one of practical convenience and expediency" based
33Black3 Law Dictionary,
34lbid.
35See
Tth Edition, p. 1277
Section 43. Republic Act No. 9285.
74
jT,T'::"mffi
3if;irra
Awa rds
on the theory that a court which first asserts jurisdiction will not
with in continuance of its assertion of another court...
it
is
unless
desirable that one give way to the other.36
be interfered
Reciprocity defined and explained.

Reciprocity, is generally a relationship between persons,
states or countries whereby favors or privileges granted by one
are returned by the other. Thus, if state " A" certifies engineers
already certified by state "8" to work in state " A," reciprocity
exists when state "B" similarly certifies engineers certified by state
" A." Reciprocity does not involve a vested right but would exist
without it.37
SEC. 44. Foreign Arbitral Award Nof Foreign
fudgment.-A foreign arbitral award when confirmed
by court of a foreign country, shall be recognized
and"enforced as a foreign arbitral award and not as a
judgment of a foreign court.
A foreign arbitral award, when confirmed by the
Regional Trial Court, shall be enforced in the same
manner as final and executory decisions of courts of
law of the Philippines.
Effect of a foreign arbitral award.
A foreign arbitral award when confirmed by a court of a
foreign country shall be enforced as a foreign arbitral award and
not as a judgment of a foreign court. As such foreign arbitral
award, it can be vacated by a regional trial court in the Philippines.
Howevet when aforeign arbitral award has been confirmed by the
regional trial court, the same shall be enforced as a final and
executory decisions of courts of law in the Philippines.3s The effect
of confirmation by uregional trial court of a foreign arbitral award
'nBarronls Law Dictionary, 2003 Edition,
t/lbttl , rrtrrrr; 100 S.E 2rl705. ?,O8.
frf\t.r. St'< lt<'tt't 44, llt.1lrrtllir Ar t No 9?85
75
p BB, citing 177 U.S. 485. 4BB
fureRrunrve Dtspurr RrsolurtoN
Acr or 2004
Rrpueuc
Chapter 7
with the force and effect of a final and executory

court decision in the Philippines.
is to clothe them
SEC. 45. Reiection of a Foreign Arbitral Autard.
A party to a foreign arbitration Proceeding may
-oppose an application for recognition and enforce-
ment of the arbitral award in accordance with the

procedural rules to be promulgated by the Supreme
Court only on those grounds enumerated under
Article V of the New York Convention. Any other
ground raised shall be disregarded by the Regional
Trial Court.
How foreign arbitral award rejected.

A party to a foreign arbitration proceeding may oppose an
application for recognition and enforcement of the arbitral award
in accordance with the procedural rules to be promulgated by
the Supreme Court only on those grounds enumerated under
Article V of the New York Convention. A.y other ground raised
shall be disregarded by the regional trial court.3e
SEC.
46.
Appeal from Court Decisions on Arbitral
Regional Trial Court
decision of the
- Avacating,
setting aside, modifying or
confirming,
Awards.
correcting an arbitral award may be appealed to the

Court of Appeals in accordance with the rules of
procedure to be promulgated by the Supreme Court.
The losing party who appeals from the judgment
of the court confirming an arbitral award shall be
required by the appellate court to post a counterbond
executed in favor of the prevailing party equal to the
amount of the award in accordance with the rules to
be promulgated by the Supreme Court.
3eSection
45, Republic Act No 9285.
76
Acr No. 9285
Appeal defined.
Appeal is a resort to a higher court for the purpose of
obtaining a review of a lower court decision and a reversal of the
lower court's judgment or the granting of new trial.ao
Appeal from decisions on arbitral awards.
A decision of the Regional Trial Cour! confirming, vacating,
setting aside or modifyirg or correcting an arbitral award may
be appealed to the Court of Appeals in accordance with the rules
of procedure to be promulgated by the Supreme Court. Flowever,
the losing parry who appeals from the judgment of the court
confirming an arbitral award shall be required by the appellate court
to post a counterbond executed in favor of the prevailin g party
equal to the amount of the award in accordance with the rules to
be promulgated by the Supreme Court.al
SEC. 47. Venue and
lurisdiction.
Proceedings
for recognition and enforcement of -an arbitration
agreement or for vacation, setting aside, correction or

modification of an arbitral award, and any application
with a court for arbitration assistance and supervision
shall be deemed as special proceedings and shall be
filed with the Regional Trial Court (i) where arbitration proceedings are conducted; (ii) where the asset
to be attached or levied upon, or the act to be enioined
is located; (iii) where any of the parties to the dispute
resides or has his place of business; or (iv) in the
National fudicial Capital Region, at the option of the
applicant.
Venue and jurisdiction for recognition etc. of an arbitral

award.
Proceedings for recognition and enforcement of an
arbitration agreement or for vacatiorL setting aside, correction or
aoB.rror)\ l..rw Dir-tiorvtry, 7OO3 Edition, p. 2B
arSct ltott 4/r, llcJrttlllir Ar I No 9)8';
77
\-rrRNRtvr Dtspure Rrsolurtoru Acr
or 2004
modification of an arbitral award, and any application with a court

for arbitration assistance and supervision ihall be filed with the
Regional Trial Court: (1) where arbitration proceedings are
or
coriduct ed,; (2) where the asset to be attached or levied uPon/
to
parties
(3)
any
where
the act to be enioined is located;
9!the
Region
the dispute resihes; or (a) in the National ]udicial Capital
at the option of the aPPlicant.a2
Venue andjurisdiction distinguished'

a case,
furisdiction implies the Power of a court to decide
not
procedural,
is
Venue
action.a3
while venue is the piu.u of the
jurisdictional, hence may be waived.4 Thus, the court m1y dismiss

subject
an action motu proprioin case of lack of jurisdiction over the
improper
for
not
but
prescription
litis p endentia,' r es' iudicata, and
policy
venue.as ]urisdiction is conferred by law and not by mere
of any court or tribunal.a6
cha
pter,
jT,Tni-i#; 3ffi ,uu, Awa rds
must be heard before he is condemned.$ The requirement of due

process is satisfied as long as a party is given a reasonable
opportunity to explain his side, even if he chooses not to
participate in the proceedings when his request for posponement
is denied.ae
Notice of proceedings to parties.

In special proceedings for recognition and enforcement of
an arbitral award, the Court shall send notice to the parties 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.
The notice shall be sent at least fifteen (15) days before the date
set for initial hearing of the application.s0
SEc.4s.NoticeofProceedingtoParties.-Ina
special proceeding for recognition and enforcement
aibitral awird, the Court shall send notice to
oi
partiei at their address of record in the arbitration,

the"t
or if any party cannot be senred notice at such address,
at such i^rty'E last known address. The notice shall
be sent at leas[ fifteen (15) days before the date set for
the initial hearing of the application'
Notice defined and exPlained.
Notice comes from the Latin "notitin," beirtg known or
knOWled ge, "nOtLtS," known and "nocefe." It meanS infOrmatiOn
actually ieceived by the Person to whom it is intended to be
impartld.aT Procedural drre process simply means that a Person
a2Section 47, Republic Act No' 9285.
a3Sulo ng Bayan vs. Gregorio Araneta, lnc', 72 SCRA 352'
44Heirs oJ Pedro Lopez vs. De Castro, 324 SCRA 591 '
asRudolf Lists Holdings, lnc. vs. Registry of Deeds. Parafraque ciry, 344 SCRA 380
a6Arranza vs. BF Homes. lnc.' 333 SCRA
aTEnriquez vs. Bautista,79 Phil- 234'
78
799'
4'rtJniversity of the lmmaculate Concepcion vs. U.l.C Teaching and Non-Teaching

It,rsortneland Employees Union. 362 SClFu4.242.
4'llbid.
"oSt.c St.r'tron
4f). Rt'prtrl>ilc Act No. 9285
79
Rrpusuc Acr No. 9295

Miscellaneous provisions
Chapter B
the ADR in the private and public sectors; and (2)

To assist the
government to monito[, study and evaluate the
use by the public
and private sectors of the AD& and recommend
tb Congress
needful statutory changes to develop, strengthen
ar,a improve
ADR practices in accordance with world standards.2
CHAPTER 8
M ISCELI.AN
EOUS PROVISIONS
sEC. s0. powers and Functions of the office

for
Alternatiue Dispute Resolution.- The bffice r*
aliurnative Dispute Resolution shall have the foflowing
powers and functions:
SEC. a9. Office for Alternatiae Dispute Resolution.
There is hereby established the Office for

-Alternative
Dispute Resolution, as an attached agency
to the Department of justice (DOD, which shall have
a Secretariat, headed by an Executive Director. The
Executive Director shall be appointed by the President
of the Philippines.
(a) To formulate standards for the training of

the ADR practitioners and service providers; v
G) To certify that such ADR practitioners and

ADR service providers rrave under:gone the professional training provided by the Offi"ce;
The objectives of the Office are:
(a) To promote,
develop and expand the use of

ADR in the private and public sectors; and
(b) To assist the government to monitor, study
and evaluate the use by the public and the private
sector of ADR, and recommend to Congress needful
statutory changes to develop, strengthen and improve
ADR practices in accordance with world standards.
Office of Alternative Dispute Resolution established.

An office of Alternative Dispute Resolution (ADR) is
established under Republic Act No. 9285, as an agency of the
Department of fustice (DOI). It shall have a secretariat headed by
an executive director who shall be appointed by the President of
the Philippines.l
Objectives of the Office for Alternative Dispute Resolution.

The objectives of the Office for Alternative Disputt'
Resolution are as follows: (1) To promote, develop and expancl
rSee
lst paragraph, Section 49 Republic Act No. 9285
80
(c)
To coordinate the development, implemen-
tation, monitoring and evaluation of go.r".rr*"it
ADR programs;
(d) To charge fees for their services; and

(e) To perform such acts as may be necessary to
carry into effect the provisions of this Act.
Power defined.
Power is thl authority granted to by one
person to another
Io do in his behalf the same thitrg which he
would do himself in
the' premises. The powers and, aithe same
time, functions
of the
office for Alternative Dispute Resolution is granted
by law.3
Functions of the office of Atternative Dispute

Resolution
explained.
when an office is engaged in the performance of
the
rf
lris office, he is said to

.;. Z*f tmqraph,
duties
iitihis functions. Thus, when the office
tbrrl.
'lrplorr vs Arrrltrr,z,r. r, f,lrrl 4g0
8l
Alrenx,atve Dtspurg Rrsolurtoru Acr
or 2004
Repusuc
Chapter B
for Alternative Dispute Resolution engages in the performance

50,
any of its powers and functions, as enumerated in Section
Republic Act No. 9285, that office is engaged in the performance
of its powers and functions.a
Formulation of standards for ADR training'

Formulation of standards for training of the ADR
of
practitioners and service providers means the establishment
iraining guidelines for enn practitioners and service providers'
Certification defined.
A certification is a written statement legally authenticated
by which
on the accomplishment of something. It is also a writing
testimony is given that fact has or has not taken place' CertiJication
or
may atso be"a writing that a thing has or has not been done'
the fact exist or does not exist.s
sEc.Sl.AppropriationS._Theamountneces.
sary to carry o.,t thu provisions of this Act shall be
inciuded in the Geniral Appropriations Act of the
year following its enactment into law and thereafter'
Appropriation defined.
at
Appropriatian is an authority fP* the legislature given
a
the proper time and legal form io the ProPer officer to apply
,,r- of honey out of that which may be used in the treasury in a
It is
given year inspecified objects or demand against the State'6
ih" u.iof the tegistature setting apart or assigning_to a particular
It is the setting
use the paymen"t of debt or duJs fiom its creditors.
revenue for a
public
apart Uy fu* of a certain sum from the
specified purPose.T
50, Republic Act No. 9286'
sBoard of Election lnspectors vs. Piccio. 8l Phil' 580'
6Dajao vs. Padilla, 124 ?nn. 6.
TBengson vs. Secretary of Justice, 67 Pnil' 916'
4See Section
82
Acr No. 9285
Miscellaneous Provisions
Appropriation for Republic Act No. 9285.

Appropriations "to catry out the provisions"
of Republic Act
No. 9285 "shall be included the General Appropriations Act of
the year following its enactment into law and thereafter."s
SEC. 52. Implementing Rules and Regulations

(IRR).
Within one (1) month after the approval of
this Act, the Secretary of justice shall convene a
Committee that shall formulate the appropriate rules
and regulations necessary f.ot the implementation of
this Act.
The Committee, composed of representatives

from:
(a) the Department of ]ustice;

(b) the Department of Trade and Industry;
(c) the Department of the Interior and Local
Governmenf
(d) the President of the Integrated
Bar of the
Philippines;
(e) a representative from the arbitration

profession;
(f) a representative from the mediation

profession; and
(g) a representative from the ADR organizations;

shall, within three (3) months after convening submit
the IRR to the Joint Congressional Oversight
Committee for review and approval. The Oversight

Committee shall be composed of the Chairman of the
Senate Committee on |ustice and Human Rights,
Chairman of the House Committee on fustice, and one
(1.) member each from the Maiority and Minority of
both Houses.
'\ilr, Sr\lr,rn l,
lleJltrtrlic Acl No.
9)85.
83
Anenrunrve DrspurE Rrsolurroru Acr
or 2004
c r,u p
The joint Oversight Committee shall become

functus officio upon approval of the IRR.
,lrtr'irlro'otherwise
Rules and regulations defined and explained.
rulilff
*:,,}"?ol,i
?1"
"o,.
",
known as the "Local Government

Code of
SEC. 54. Repealing Clause._

AII laws,
executive orders, rulei and regulations, decrees,
which are
inconsistent *itl the provisionsif
this Act, are hereby
repealed, amended oi modified
accordingly.
Rule is a prescribed for action or conduct, regulation or

principle.e Regulations are rules or other directives issued by
administrative agencies that must have specific authorization
to issue directives and upon such authorization must usually
follow prescribed conditions, such as prior notification of the
proposed action in a public record and an invitation for public
comment.lo
Repealing clause defined.

A repealing clause is a sratutory
provision
earlier statute' It is also called uyrlit;;;.t"h that repeals an
#;iative
act abrogating an earlier law.
,";";i
may
be
express if
.thir
effected by specific declaration in
the .L* statute. It is implied
lf it is effected by irreconcilable conftict
ii'* u.a
the new law.13
ffi
Functus oficio defined.
u"r*l"i;;fi
Functus oficio means "having performed his office," it is

without further authority or legal c-ompetence because the duties
and functions of the original commission have been fully
accomplished.ll
sEC' 55. Separab,ity crause.If for any reason

or reasons' any portion or provision
of this Act shali
be held unconstiturional oi invalil;
other parts
provisions not affected sharl thereby
"ii continue or
to
remain in fuII force and effect. - - ,
SEC. 53. Applicability of the Katarungang

This Act shall not be interpreted to
repeal, amend or modify the jurisdiction of the
Katarungang Pambarangny under Republic Act No.
Pambarahgoy.
Tl:h0,otherwise known as the "LocalGovernment Code
teparab ility clause defined.
of 1991.;'
separability clause rs a provision

that keeps the remaining
provisions of a contract or Jtut.rt"
in force if any t;;ti"";f that
c'ntract or statute is declared void or
rrr*.stitutional. It is also
cn I led severability clause. la
Katarun gang pambarangay provisions not repealed.
The katarungang pambarangay provisions in the Local

Government Code of 1991 also has provisions on arbitration,
mediation and conciliation on cases within the jurisdiction of the
lupong tagapamayapa. Section 53, Republic Act No. 9285 provides
that "This Act shall not be interpreted to repeal, amend, or modify
the jurisdiction of the Katarungang Pambarangay in Republic Act
eBarrons Law Dictionary, 2003 Edition, pp. 454-455.
rolbid., p. 431.
rrBlack3 Law Dictionary, 7th Edition. p. 682.
84
Scparabirity crause in Repubric Act

No. 92g5.
Republic Act No. 92g5 contains
a separability crause in
st'ction 55 thereof. It provides th;ililt;"",
reason or reasons
Itly provision of this Act shail be herd .tt
or
"orrrtitutional invalid,
F
----
r/\rt
St,rtion bJ, llepulllir Art No. g2BS.

lr\t'r'\r,r lr\ttt4,
Rr,1 rrrl rlir Arl No ?,r{}!
l'llll, rr k\
l, rw I )lr llor r, rry. /llr I rltf uttr.
1.t I I /<)
r{5
AlrERrunrvr DrspurE Rgsollrlror.r Acr
or 2004
all other parts or provisions not affected shall continue in full

force and effect.ls
SEC. 56. Effectioity.
This Act shall take effect
fifteen (15) days after its-publication in at least two
(2) national newspapers of general circulation.
Approved,
(Sgd.) FRANKLIN M. DRILON
(Sgd.) loSE DE VENECIA, JR.

Speaker of the House
President of the Senate
of Representatiaes
This Act which is a consolidation of Senate Bill No. 2671 and

House Bill No. 5654 was finally passed by the Senate and the
House of Representatives on February 4,2004.
(Sgd.) ROBERTO P. NAZARENO
(Sgd.) OSCAR G. YABES
Secretary General
Secretary of the Senate
House ofRepresentatiues
Approved. Apr. 2,2004
(Sgd.) GLORIA MACAPAGAL-ARROYO

President of the Philippines
r5See
Section 55, Republic Act No. 9285.
86

Alternative Dispute Resolution. Alarar

Uploaded by

Copyright:

Available Formats

You might also like

Alternative Dispute Resolution. Alarar

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Alternative Dispute Resolution. Alarar

Uploaded by

Copyright:

Available Formats

ATTERilTTTIVE DTSFU.

The case of Magellan Capital Management

Alternative Dispute Resolution System defined

Section 4. Electronic Signatttres in Global and

Effect of Signatures in Global and E-Commerce

l), ('lraptt.r r), lJook l, l{evist.rl

Section 6. Exception to the Apptication of this Act ...

Section 8. Application and Interpretation

Considerations in applying and construing

St't'tiorr 15. l'ltt ol Mtlitliot .................

CHAPTER 3 - OTHER ADR FORMS

CHAPTER 4 - INTERNATIONAL COMMERCIAL

Section 79. Adoption of the Model Law on

Commercial Arbitr ation .............

Commercial arbitration defined

Section 22. Legal Representation in lnternstional

Sct'tiorr 23. ('ott.l'idutIidiIy oI ArliInrtiott 1,,"(t(,((tIilrs............

Section 24. Referral to Arbitration ..............

Court referral to arbitration proceedings...........

Section 25.Interpretation of the Act

Section 26. Meaning of "Appointing Authority', ..........

Appointing authority defined and explained .............

Section 36. Authority to Act as Mediator or Arbitrator

Section 29. Further Authority for Arbitrator to

Section 30. Place of Arbitration

Section 31. Language of the Arbitration

Section 37. Appointment of Foreign Arbitrator

International party defined

CHAPTER 7 - IUDTCTAL REVTEW OF

CHAPTER 5 - DOMESTIC ARBITRATION

Section 35. Coaerage of the Law

Section 28. Grant of Interim Measure of protection

Section 32. Law Goaerning Domestic Arbitration

Ayltlitbililry lo l)ortrtslir Arlrilruliotr

Section 40. Confirmation of Award .............

st't'liorr 23. ('rtrtf'ilttttiulirtl o.l' Arbitruliott I)rot,t,r,tlit,ts....

Section 35. Coaerage of the Law

Section 36. Authority to Act as Mediator or Arbitrator

Section 38. Applicability to Construction Arbitr ation ..............

section 28. Grant of Interim Measure of protection

Section 30. Place of Arbitration

Section 37. Language of the Arbitration

Section 39. Court to Dismiss Case Inaolaing a

CHAPTER 7 - IUDICIAL REVIEW OF

CHAPTER 5 - DOMESTIC ARBITRATION

Section 26. Meaning of "Appointing Authority,, ............

Appointing Authority ........

Section 34. Arbitration of Construction Disputes:

iufu il i I y I o I )orttt'sl ic Arbi I ru I iot, ........

No. 92tt5 to domestic arbitration

Section 25. lnterpretation of the Act

Section 40. Confirmation of Award

l;irral arrcl cxccutory judgment explairrecl .........

Set'tiorr 47. Vnrut utttl jurisdit'ttott .........

Vt,r'rut'and jurisdiction for recognition etc. of an

B. FOREIGN ARBITRAL AWARDS

New York Convention defined

St't'lion 44. Foreign Arbitral Award not Foreign

Section a9. Office for Alternatiae Dispute Resolution ..............