Chapter5.

InternationalCommercialArbitrationUndertheADRActof2004
andItsImplementingRulesandRegulations

TheADRActof2004:
AdoptedtheUNCITRAL(UnitedNationsCommissiononInternationalTradeLaw)ModelLaw
onInternationalCommercialArbitration
MadetheModelLawthegoverningstatuteforinternationalcommercialarbitration(ICA)
conductedinaccordancewithPhilippineLaw
Devotedsomeofitsprovisionsoninternationalcommercialarbitrationtotheharmonization
oftheprinciplescontainedintheModelLawwithexistingPhilippinelaws,rulesand
jurisprudence.

IRR(ImplementingRulesandRegulations)ofADRActof2004:
BecametherepositorynotonlyoftherulesimplementingtheADRActbutalsotherules
implementingtheModelLaw.
WaspassedbyDepartmentofJustice(DOJ)on26October2009andtookeffecton31
December200915daysafterthecompletionofitspublicationinatleasttwo(2)newspapers
ofgeneralcirculation

InternationalCommercialArbitration

Arbitrationisinternationalifanyofthefollowinginstancesoccur:
Thepartiesplacesofbusiness,whichatthetimeoftheconclusionofthearbitration
agreement,isindifferentstates
Theplaceofarbitrationprovidedinthearbitrationagreementandinwhichthe
partieshavetheirplacesofbusiness,isoutsidethePhilippines
Theplacewhereasubstantialpartoftheobligationistobeperformedortheplace
withwhichthesubjectmatterofthedisputeismostcloselyconnected,andinwhich
thepartieshavetheirplacesofbusiness,isoutsidethePhilippinesor
Thepartieshaveexpresslyagreedthatthesubjectmatterofthearbitration
agreementrelatestomorethanonecountry.

NOTES: Arbitration is commercial if it covers matters arising from all relationships of a

commercialnature,whethercontractualornot.

AninternationalcommercialarbitrationwiththePhilippinesasits seatisgovernedbytheADR
Act and the IRR, evenif the placeofarbitrationisoutsidethe Philippines.Ontheotherhand,
an international commercial arbitration whose seat is outside the Philippines is a foreign
arbitrationeveniftheplaceofarbitrationisinthePhilippines.

TheADRActanditsIRRgovernonlytheaspectofrecognitionandenforcementoftheforeign
arbitralaward.

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Chapter5.InternationalCommercialArbitrationUndertheADRActof2004
andItsImplementingRulesandRegulations

CoverageofIRRProvisionsonICA

The provisions of the IRR on international commercial arbitration are default rules, which
means that they are applicable only in the absence or in default of applicable provisions
containedin:
AnagreementinforcebetweenthePhilippinesandotherstateorstates
Anagreementbetweenthepartiesontheapplicablerules

RulesofInterpretation

Thefollowing are the rules in the interpretation of theADR Act of 2004, theModelLawand
theIRR:
Interpretation of the ADR Act: The court interpreting the ADR Act and the IRR shall
havedueregardtothepolicyofthelawfavoringarbitration
Interpretation of the Model Law: Regard should be giventothe fact that theModel
Law is of international origin and there is a need for uniformity in itsinterpretation.
Hence, concepts and principles under the Model Law should be understood in the
lightoftheirinternationalusageratherthantheirordinarydomesticorlocalusage.
InterpretationoftheIRR:
a. The same policies on the interpretation of the ADR Act and Model Law are
applicable
b. Partyautonomyshouldbepromotedintheresolutionofthedispute
c. The freedom of the parties to determine certain issues includes the right to
authorizeathirdparty,includinganinstitution,tomakethatdetermination
d. Areferencetoanagreement of the partiesincludesanyarbitrationrulesreferred
tointhatagreement.
e. And, the rules applicable to claims are equally applicable to counterclaims, and
those applicable to defenses are equally applicable to defenses against
counterclaims.

RulesonReceiptofWrittenCommunicationsinICA

Communicationisdeemedreceived:
If it is delivered to the addressee personally or at his place of business, habitual
residenceormailingaddressor
If there isnone,ifitisdeliveredbyregisteredletteroranyothermeanswhichprovide
a record of the attempt to deliver it, to the last known place of business, habitual
residenceormailingaddress.

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Chapter5.InternationalCommercialArbitrationUndertheADRActof2004
andItsImplementingRulesandRegulations

NOTE: Written communication isdeemedreceivedonthedayit isdeliveredandnotonthe

daythe
mailispostedwiththepostoffice.

WaiveroftheRighttoObjectinICA

Objections to noncompliance with the rules or any requirement under the arbitration
agreementmust be raised withoutunduedelayorwithinthetimeprescribedtherefor,failing
which the right to object is deemed waived. Thisruleis based on the equitable doctrine of
estoppels.Underthis doctrine,anadmissionorrepresentationcannotbedeniedordisproved
asagainstthepersonrelyingonit.

ConfidentialityinICA

As in the case ofmediation, the proceedings, records,evidence, and the arbitral award inan
internationalcommercialarbitrationareconfidentialandshallnotbedisclosedexcept:
Withtheconsentoftheparties
For the limited purpose ofdisclosingtothe court relevant documents in caseswhere
resorttothecourtisallowed.

Thecourtmayissueprotectiveorderstopreventorprohibitthedisclosureofdocumentsor
informationcontainingsecretprocesses,developments,researchandotherinformation
whereitisknownthattheapplicantshallbemateriallyprejudicedbyanunauthorized
disclosurethereof.

DueProcessinICA
IRRmandates:
partiesshallbetreatedequally
begivenafullopportunitytopresenttheirsides

Dueprocessiscompliedwithifapartyisgivenanopportunitytopresenthissideofthe
disputeevenifhedoesnotactuallyavailofsuchopportunity.

Aspartofdueprocess:
arbitraltribunalisdirectedtogivethepartiessufficientadvancenoticeofanyhearing
andofanymeetingofthearbitraltribunalforpurposeofinspectinggoods,properties
ordocuments
apartyisdirectedtocommunicatetotheotherpartyallstatements,documentsor
otherinformation,includingexpertreportsorevidentiarydocument,thathewill
supplytothearbitraltribunal
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Chapter5.InternationalCommercialArbitrationUndertheADRActof2004
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PlaceorVenueofICA

Theplaceshouldbedeterminedbytheparties.

DefaultplaceofarbitrationshallbeinMetroManila,unlessthearbitraltribunaldecidesona
differentplacetakingintoconsiderationthecircumstancesofthecase.

CommencementofICAProceedings

Thedateisdeterminedbytheparties.

Defaultdateisthedateonwhicharequestforthedisputetobereferredtoarbitrationis
receivedbytherespondent.

LanguageinICA

Partiesshalldeterminethelanguageorlanguagetobeusedduringarbitralproceedings.The
arbitraltribunalmayrequireanydocumentaryevidenceaccompaniedwiththetranslationof
suchdocument.

DefaultlanguageisEnglish.

ApplicableLawinICA

Lawapplicabletothedispute
substantivelawunderwhichtherightsandobligationsofthepartieswillbe
determined
Lawapplicabletothearbitralproceeding
thelawwhichwillgovernthearbitralproceedingsandvestjurisdictiononthe
arbitratororarbitraltribunal

PartiesinICAcanagreeonthegoverninglawthatwillbeappliedtotheresolutionoftheir
dispute.

Substantivelawisthelaworlegalsystemapplicabletothecompleteresolutionofthedispute
whileconflictsoflaworprivateinternationallawisthatpartofthemunicipallawofastate
whichdirectscourtsandadministrativeagencies,whenconfrontedwithalegalproblem
involvingaforeignelement,whetherornottheyshouldapplyaforeignlaworforeignlaws.

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Chapter5.InternationalCommercialArbitrationUndertheADRActof2004
andItsImplementingRulesandRegulations

Conflictsoflaworprivateinternationallawisasetofdomesticlawsthatdetermineswhich
betweenthedomesticlawsoftwoormorestatesshouldapplytotheresolutionofadispute
involvingforeignelements.

Intheabsenceofanagreementbetweentheparties,thelawdeterminedbytheconflictsof
lawrulesasdeterminedbythearbitraltribunaltobeapplicabletakingintoaccounttheterms
ofthecontractandtheusagesofthetrade,shallbeapplied.

AppointingAuthorityinICA

Thepersonorinstitutionnamedinthearbitrationagreementassuch,ortheregular
arbitrationinstitutionunderwhoserulesthearbitrationsis:
agreedtobeconducted
authorizedtomakethedefaultappointmentofarbitratorsorthesolearbitrator

Alsohasthefollowingfunctions:
takethenecessarymeasurestoappointanarbitratorincaseanyparty,orarbitrators
alreadyappointed,oranythirdpartyfailstoperformanyfunctionnecessaryforthe
appointmentofthearbitrator
decideonthechallengeagainstanarbitratorifthearbitraltribunalrejectsthe
challenge
considerthequalificationsofanarbitrator,,thenecessityofensuringimpartialityand
independenceofthearbitrator,andtheadvisabilityofappointinganarbitratorwhois
ofanationalitydifferentfromthoseoftheparties.

Wherepartiesagreedtosubmittheirdisputetoinstitutionalarbitrationrules,andunlessthey
agreedtoadifferentprocedure,theyshallbedeemedtohaveagreedtotheprocedureunder
sucharbitrationrulesfortheselectionandappointmentofarbitrators.

Inadhocarbitration,thedefaultappointmentofanarbitratorshallbemadebytheNational
PresidentoftheIntegratedBarofthePhilippinesorhisdulydesignatedrepresentative.

ArbitratorsandArbitralTribunalsinICA

Defaultnumberofarbitrators:3

Defaultprocedureforappointmentofarbitrators:
incaseofthree(3)arbitrators:eachpartyshallappoint1arbitrator,whointurn,shall
appointthe3rd

arbitrator,otherwiseappointmentshallbemadebytheappointing
authority
incaseofsolearbitrator:thearbitratorshallbeappointed,upontherequestofa
party,bytheappointingauthority
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Chapter5.InternationalCommercialArbitrationUndertheADRActof2004
andItsImplementingRulesandRegulations

Thearbitrationagreementbythepartiesshallgovern.Ifthereisnone,anypartymayrequest
theappointingauthoritytotakemeasurestoappointanarbitrator.Hisdecisionshallbe
immediatelyexecutoryandshallnotbesubjecttoamotionforreconsiderationorappeal.
However,ifanypartyisnotsatisfiedwiththeappointment,apetitionchallengingthe
appointmentmaybefiledincourt

Factorsintheappointmentofarbitrators
Qualificationsrequiredbytheparties
Independentandimpartialarbitrators
Advisabilityofappointinganarbitratorofanationalityotherthanthoseoftheparties
toavoidbiasthatmayarisefromhometowndecisions

GroundsforChallengeonanArbitratorinICA

Ifcircumstancesexistthatgiverisetoajustifiabledoubtastohis:
Impartialityorindependence
Possessionofthequalificationsagreeduponbytheparties

However,apartywhoappointedanarbitratorshallnotbeallowedtochallengethat
arbitrator.(estoppel).

DefaultProcedurefortheChallengeinICA

Within15days

within30daysfrom

notice

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Chapter5.InternationalCommercialArbitrationUndertheADRActof2004
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ProcedureincasetheArbitratorfailstoactinICA

Ifanarbitratorbecomesdejureordefacto,unabletoperformhisfunctionsorfailstoact
withoutunduedelay,hismandateterminates:
1. Ifhewithdraws,or
2. Ifthepartiesagreeonthetermination

Thewithdrawalofthearbitratordoesnotcarrywithitanimpliedacceptanceoftheexistence
orveracityofthegroundfortermination

JurisdictionofArbitralTribunalinICA

Jurisdiction is therighttoactorthepowerandauthoritytohearanddetermineacause.Inthe
case of an arbitral tribunal,it is the authority by virtueof which it can resolve disputedinan
arbitrationproceedingbyrenderinganawardthereon.

JurisdictionOvertheSubjectMatter
The jurisdiction of an arbitral tribunal over the subject matter if the controversy is
conferredbylaw,whichistheADRActif2004.
Two instances when a court, quasijudicial agency or arbitral tribunal acts without
jurisdiction,namely:
1. When it has no jurisdiction in the first place, in which case there is lack of
jurisdiction;or
2. When it goes beyond its jurisdiction which it had in thefirst place, in which
caseitactedinexcessofjurisdiction.

LackofJurisdiction
Thejurisdictionof an arbitraltribunalincludestheauthoritytoruleonitsownjurisdiction
in thesame way that courts havethe power to rule on motions todismiss complaints or
petitionsbasedonlackofjurisdiction.
The arbitral tribunal has the powertoruleon objectionstoits jurisdiction such as those
raised against the existence or validity of the arbitration agreement or any condition
precedenttothefilingofarequestforarbitration.Italsoincludesthepowertodetermine
the admissibility, relevance, materiality and weight of any evidence, and theissuanceof
subpoenatocompeltheattendanceofwitnessesandtheproductionofdocuments.
In determining the jurisdiction of an arbitral tribunal, the arbitration agreement or
arbitration clauseshould betreated as anindependentandseparateagreementfromthe
container agreement and the invalidity of thelatter does not automaticallyresultin the
nullity of the former. It is only in the event that the arbitration agreement or clause is
itself void, inexistent or inoperative that the arbitral tribunals jurisdiction may be
questioned.

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Chapter5.InternationalCommercialArbitrationUndertheADRActof2004
andItsImplementingRulesandRegulations

In general, jurisdiction over the subject matterbeing amatterof law, cannot bewaived
andcannotbethesubjectofacompromiseorthestipulationoftheparties.
The issue of jurisdiction may be raised at any stage of the proceedings,even on appeal
andisnotlostbywaiverorestoppels.
It is only in exceptional instances that the SC has sustained waivers of or against the
jurisdiction of a court such as when a party has incurred laches in raising the issue of
jurisdiction or is stopped by reason of his active participation in the proceedings of the
courtwhosejurisdictionhequestions.
In a challenge againstthe jurisdiction of arbitral tribunals in an international commercial
arbitration, the challengeshouldbe raisednotlaterthanthesubmission ofthestatement
of defense in the answer or in a motion to dismiss; otherwise, the objectionis deemed
waived.
However, a party is not precluded from raising a jurisdictional challenge even if he has
participatedintheappointmentofanarbitratororhashimselfappointedone.

ExcessofJurisdiction
Where an arbitral tribunal which has jurisdiction in the first place but exceeds the
scopeofitsauthority,apartymayraisetheobjectionassoonastheexcessofjurisdictionover
a matter alleged to be beyond the scope of itsauthority becomes apparent;otherwise, the
objectionwillbedeemedwaived,unlessthedelayisjustified.

JudicialReviewofJurisdictionalIssue
Thearbitral award of an arbitraltribunalwhich does nothave jurisdiction isalsonulland
voidabinitiounlessthereisawaiveroftheabsenceofjurisdiction.
In an ICA, petitioner under Rule 43 (petition for review) and Rule 65 (petition for
certiorari)arenotavailable.
Thearbitral tribunalwhoseacts arechallengedforlackorexcessofjurisdictionmayeither
(i) consider the challenge as a preliminary question or a threshold issue and render a
ruling thereonbefore conducting the arbitration, or(ii)defer theresolutionthereof until
the rendition of the arbitral award and the resolutionofthejurisdictionalissue shallform
part thereof especially in instances when thejurisdictional challenge doesnot appear to
beindubitable.
If thearbitral tribunalrendersa preliminaryrulingonthejurisdictionalissue,anaggrieved
party may elevate the ruling for review by the RTC within 30 days from receipt of the
ruling, and the decision of the court therein shall be immediately executoryandnot be
subjecttoamotionforreconsiderationorappeal.
Thearbitrationproceedingmayproceednotwithstandingthependencyofa judicialaction
with the RTC unless thecourt issues inthe meantimeatemporary restraining order or a
writ of preliminary injunction enjoining the conduct of an international commercial
arbitrationduringthependencyofthecourtactionorpetition.

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Chapter5.InternationalCommercialArbitrationUndertheADRActof2004
andItsImplementingRulesandRegulations

If the arbitral tribunal defers the resolution of the jurisdictional issue which will be
resolved as part of the arbitralaward,theorderofdefermentisnotsusceptibleof judicial
relief.

JurisdictionOvertheParties
The jurisdiction of an arbitral tribunal over the person of the parties in arbitration is
conferredbytheconsentofthepartiestosubmittoarbitration.
Theconsent may becontainedeitherinanagreementtosubmittoarbitration(precausal
consent) which is enteredintoatthetimeofthe executionofanarbitrationagreementor
acontractwhichincludesanarbitrationclause.
It can also be contained in a submission agreement (present causal consent) between
parties whodo not have anarbitrationagreementoracontractwithanarbitrationclause
butwhononethelessagreetosubmitanexistingdisputeorcontroversytoarbitration.

InterimMeasuresinICA
1. Request must be in writing and shall be transmitted by reasonable means to the arbitral
tribunal and adverse party including the description of the precise relief and the ground
thereforeandevidencesupportingtherequest

2. ReliefmaybeGRANTEDbecauseofthefollowingreasons:
Topreventirreparableloss
Providesecurityfortheperformanceofobligation
Produceorpreserveevidence
Compelappropriateactoromission

Grantshallbeconditionedupon:
Provisionofsecurity
Anyactoromissionspecifiedintheorder

3. The grant or denial shall be binding among the parties and shall apply with the courts for
assistanceintheimplementation

4. Refusaltocomplywiththeordershallincurliabilityfordamagesincludingexpenses

LegalRepresentationinICA

ApartymayberepresentedbyanonlawyerBUTmaynotbeauthorizedtoappearas counsel
inanyPhilippinecourtorquasijudicialbody
RulesofProcedureinICA:

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Chapter5.InternationalCommercialArbitrationUndertheADRActof2004
andItsImplementingRulesandRegulations

1. Statementofclaims
2. StatementofDefenses
3. DefaultorParties:
Claimant:resultstoterminationofproceedings
Respondent : continuation ofthe proceedings, previoushearings, documentssubmitted
shallbeusedasbasisofevidencetorenderaward

4. Amendmentofclaims/defensesareallowed.

5. HearingsshallbedeterminedbytheArbitraltribunalwhethertohold:
Oralhearingsonly
Oralargumentsonly
Submissionofdocumentsonly
TakingofEvidences:
a) Assistedbycourts
b) Powertoissuesubpoenas(bothadtestificandumandducestecum)
c) Appointexpertwitnessesandconsiderthemasafriendofthecourt

6. Conclusion/Closure
a) AwardorSettlement
Terminatesproceedingsandawardingbasedonagreedterms
Agreement must be In writing signed by arbitrator or majority of arbitrators of the
arbitral tribunal, contains date and place of arbitrationand copies delivered to each
party

Whendeemedfinalandexecutory:
I.
Renditionofarbitralaward
II.
Hearingfor Quantificationof the costs and determination ofpartyliabletherefor
betweentheparties
III.
Expiration of period for the correction and interpretation of the award or for
makingadditionalaward

b) Termination
Withdrawalofclaim
Byagreementofparties
Continuationisunnecessaryorimpossible

CostsinICA

Bornebyunsuccessfulparty,mayapportionunderreasonablecircumstances
Mustbe reasonabletakingintoaccountcomplexityofsubjectmatter,timespentbyarbitrator
andothercircumstances
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Chapter5.InternationalCommercialArbitrationUndertheADRActof2004
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Coststobepaid:
Feesofthearbitraltribunal
Travelandotherexpenses
Costofexpertadvise
Travelandotherexpensesofwitnesses
Costsforlegalrepresentationandassistance
Feesandexpensesoftheappointingauthority

CorrectionandInterpretationofICAAward

Anarbitralawardmaybeamendedinanyofthefollowingmanners:
1. Agreementoftheparties
2. Quantificationofthecostsandthedeterminationofthepartyliabletherefor,orthe
divisionthereofbetweentheparties.
3. Correctionoftypographicalandsimilarerrorsinitiatedbyaparty.
4. Correctionoftypographicalerrorinitiatedbythearbitraltribunal.
5. Interpretationoftheaward
6. Additionalaward

SettingAsideanICAAward

Thepetitionerfurnishesproofthattherewas:
Defectinthearbitrationagreement
Violationofdueprocess
Lackorexcessofjurisdictiononthepartofthearbitraltribunal
Thearbitrationagreementwasviolated

Orthecourtfindsthat:

Thesubjectofthedisputeisnotcapableofsettlement
Theawardisinconflictwithpublicpolicy

TimeforFilingthePetitionforSettingAside

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Chapter5.InternationalCommercialArbitrationUndertheADRActof2004
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RecognitionandEnforcementofICAandForeignArbitralAwards

Philippine courts give legal acknowledgement to a foreign arbitral

Recognition
award and confers upon it the capability to be enforced under
PhilippineLawthroughPhilippinelegalprocess

Confirmation

Judicialaffirmationofadomesticarbitralaward.

Enforcement

Executionandimplementationoftheforeignarbitralawardthrough
Philippinelegalprocesses

DefinedinspecialrulesofcourtofADR
OnerenderedinanarbitrationwhoseseatisoutsidethePhilippines

Foreignarbitralawards

Domesticarbitralaward While not needed to be recognized, it should go through itshould

gothroughtheprocessofconfirmationtoimplement.

Jurisdiction,VenueandNatureofProceedings

JurisdictionoverproceedingsfortherecognitionandenforcementofICAandforeignarbitral
awards,vacatingorsettingasideanICAaward,andanyapplicationwithacourtforarbitration
assistancethereon,isvestedbytheADRACTonRTC.

Thevenueofproceedingsshallbe:

a) Wherethearbitrationproceedingsareconducted
b) Wheretheassettobeattachedorleviedupon,ortheacttobeenjoined,islocated
c) Whereanyofthepartiestothedisputeresidesorhashisplaceofbusiness
d) IntheNationalCapitalJudicialRegion,attheoptionoftheapplicant

Proceedings shall be deemed as special proceedings. They shall be summary in nature.

Hearingsaretobeconductedonthebasisoftheaffidavitsofthepartiesandtheirwitnesses.
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Chapter5.InternationalCommercialArbitrationUndertheADRActof2004
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In proceedings for the recognition and enforcement of ICA and foreign arbitral awards
susceptible for recognition, the court shall send notice to their address. The notice shall be
sentatleastfifteen(15)daysbeforethedatesetforinitialhearing.

GroundsforRefusingRecognitionandEnforcementtoConventionandAsinConventionAwards
Defect in the arbitrationagreementbecausea party wasunder some incapacity or the said
agreementisnotvalidunderapplicablelaw.
Violation of due process because the petitioner was not given proper notice of the
appointment of an arbitrator orthe arbitralproceeding, or wasotherwiseunable to present
hiscase.
Lack or excess of jurisdiction
on the part of the arbitral tribunal because the award deals
with a dispute not contemplated by or not falling within the terms of the submission to
arbitration, or contains decisions on matters beyond the scope of the submission of the
arbitration,subjecttotheapplicationofthe
doctrineofseverability/separability.
Violation of arbitration agreement
because the composition of the arbitral tribunal or the
arbitral process was not in accordance with the agreement of the parties, unless such
agreement was in conflict with the provisions of ADR Act from which the parties cannot
derogate,or,failingsuchagreement,wasnotinaccordancewiththeADRAct.

Or,uponfindingfromthecourtthat:
Thesubjectofthe disputeis
not
capableofsettlementunderthelawsoftheRepublic
ofthePhilippines;or
Theawardisin
conflictwithpublicpolicy
ofthePhilippines.

Can a foreign country not duly registered to conduct business in the Philippines seekrecognition
andenforcementofforeignarbitralaward?
Yes.Whenapartyentersintoacontractcontainingforeignarbitration,andsubmitsitself
toarbitrationandbyitsresults,itbecomesboundbythecontract,bythearbitration,and
byitsresults.(TunaProcessingInc.vs.Phil.KingfordInc.)

ProcedureforRecognitionofConventionandAsinConventionAwards
1. Filing of Application
in the RTC of the originalor duly authenticated copy of award and the
arbitrationagreement.
2. Recognition of the award will have the same manner offinality and execution as any other
decisionsofthecourt.
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Chapter5.InternationalCommercialArbitrationUndertheADRActof2004
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3. Consolidation/concurrent hearings may be agreed upon by the parties and the arbitral
tribunaltoconsolidateorconductconcurrentrelatedarbitrationproceedings.
4. Rejection/suspension
bytheRTCuponfilingofanapplicationforrejectionorsuspension.
5. Appeals on the decisions of the RTC are elevated to the CA in accordance with the special
rulesonADR.
LegalEffectsofNonConventionAwards
General Rule: Nonconventionawards, unlessthey qualify tobeasinconventionawards,are
notentitledtorecognitionorenforcement.
Exception:
applicationof

Rule39ofthe1997RulesofCivilProcedure
Sec.48.Effectofforeignjudgmentsorfinalorders.

Theeffect ofajudgment orfinalorderofatribunalofaforeigncountry,havingjurisdictionto

renderthejudgmentorfinalorderisasfollows:

(a) In case of a judgment or final order upon a specificthing,the judgment or final order is
conclusiveuponthetitletothething;and

(b) In case of a judgment or final order against a person, the judgment or final order is
presumptive evidence of a right as between the parties and their successors in interestby a
subsequenttitle.

In either case, the judgment or final order may be repelled by evidence of a want of
jurisdiction,wantofnoticetotheparty,collusion,fraud,orclearmistakeoflaworfact.

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