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INTERNATIONAL COMMERCIAL ARBITRATION DOMESTIC ARBITRATION

Meaning Arbitration is international if Arbitration is domestic if


1. the parties’ place of business is in different states 1. conducted in the Philippines.
2. place of arbitration is outside of the Philippines 2. if the components of parties’ places of business,
place of arbitration, place of performance of
3. place of performance of substantial part of the substantial part of the obligation and place where the
obligation and place where the subject matter of the subject matter of the dispute is most closely
dispute is most closely connected, and in which the connected, are all located in the Philippines.
parties have their places of business, is outside the
Philippines; or
4. The parties have expressly agreed that the subject
matter of the arbitration agreement relates to more
than one country.

Applicable Law Model Law and ADR Act of 2004 Arbitration Law R.A. 876

Disputes Covered Disputes covered are only those commercial in nature Disputes covered are both commercial and non-commercial
disputes provided they are susceptible of arbitration and do
not fall within the exclusive original arbitration jurisdiction of
quasi-judicial agencies

Place of Arbitration Parties are free to agree on the place of arbitration. Failing such, the place of arbitration shall be in Metro Manila, unless the
tribunal shall decide on a different place of arbitration.

Language of The parties are free to agree on the language to be used. The parties are free to agree on the language to be used.
Arbitration Failing such agreement, the language to be used shall be Failing such agreement, the language to be used shall be
ENGLISH FILIPINO or ENGLISH

Confidentiality The arbitration proceedings, including the records, evidence and the arbitral award, shall be considered CONFIDENTIAL
and shall not be published except:
1. with the consent of the parties; or
2. for the limited purpose of disclosing to the court of relevant documents in cases where resort to the court is allowed
therein

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Provided 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 where it is shown that the applicant shall be materially prejudiced thereby.
Receipt of General rule in receipt of communications is that provided for by the parties in their agreement. In the absence thereof, written
Communications communication among the parties and the arbitrators shall be delivered personally, by registered mail, and shall be deemed
to be received on the date it is delivered.

The use of electronic mail is permitted, as long as, there is a record of the sending and receipt of the communications and
such shall be deemed received on the same date of its transmittal.
Waiver of Objection A party may by estopped from questioning non-compliance or is deemed to have waived his objection if he fails to raise the
objection without delay within 30 days provided that he knows of such non-compliance.

Extent of Court RA 9285 allows the filing of provisional or interim measures RA 876, Section 14 recognizes the rights of any party to
Intervention with the courts whenever the arbitral tribunal has no power petition the court to take measures to safeguard and/or
to act conserve any matter, which is the subject of the dispute in
arbitration
Representation A party may represent himself or be represented or assisted by any person of his choice provided that such representative,
unless admitted to the practice of law in the Philippines, shall not be authorized to appear as counsel in any court in the
Philippines or quasi-judicial body.
Arbitral Agreement The consent to arbitrate can either be PRE-CAUSAL CONSENT (agreement to submit to arbitration) when the parties agree
in a contract to settle by arbitration a controversy that will arise between them; or PRESENT CAUSAL CONSENT
(submission agreement) when the controversy already exist between the parties at the time of the submission to arbitration.

Arbitration agreement must be in writing and subscribed by the party sought to be charged or by his lawful agent/s.

A court before which an action is brought on a matter which is the subject of an arbitration agreement shall, if at least one
party requests not later than the pre-trial conference, or upon the request of both parties, refer to arbitration unless it finds that
the arbitration agreement is void.

When the court action is multi-party and one or more but not all of them are parties to an arbitration agreement, the court shall
refer those who are parties to the arbitration agreement to arbitration and proceed with the court action to those who are not
bound by such agreement.
Determination of Except for the reference to UNCITRAL Arbitration Rules, the determination of the applicable rules of procedure is the same
applicable rules of for domestic arbitration and ICA.
procedure
The parties are free to agree on the applicable rules of procedure, in the absence of which, the arbitral tribunal may conduct
arbitration in the manner it considers appropriate.

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Commencement of The commencement of said proceeding is determined by the The commencement of said proceeding is determined by the
Arbitral Proceedings prior agreement of the parties. prior agreement of the parties.

In default of such, it is commenced on the date on which a In default, arbitration is deemed commenced upon the
request for the dispute to be referred to arbitration is received agreement of the other party to submit the dispute to
by the respondent. arbitration.

In an institutional arbitration where there is no prior


arbitration agreement, it is commenced in accordance with the
arbitration rules of the institutional arbitrator.

In an ad hoc arbitration where there is no prior agreement, it


is commenced upon the delivery by the claimant to the
respondent of a demand for arbitration.
Number of arbitrators The parties are free to determine the number of arbitrators and procedure for appointment. In default, number of arbitrator is
three.
Qualifications of Parties are free to agree on the qualifications of the arbitrator An arbitrator must be:
Arbitrator 1. of legal age
2. be in full employment of his civil rights; and
3. know how to read and right
Disqualifications of An arbitrator may be challenged if he does not possess the No person shall serve as an arbitrator in any proceedings if:
Arbitrator qualifications agreed to by the parties. 1. He is related by blood or marriage within the 6th
degree to either party to the controversy
2. He has or had financial, fiduciary or other interest in
the controversy or cause to be decided, or in the result
of the proceeding
3. He has personal bias which might prejudice the right
of any party to a fair and impartial award
4. He has been selected to act as champion or to
advocate a party’s cause
Procedure for Parties are free to agree on the procedure. The following is Parties are free to agree on the procedure for the appointment
Appointment the default procedure: of arbitrators except that, in order to prevent undue advantage,
and agreement or clause giving a party the power to choose
1. In arbitration with 3 arbitrators each party shall more arbitrators than the other is void.
appoint one arbitrator and both appointed arbitrators
shall appoint the third arbitrator, failing such, the If there is no agreement, the following are the default rules:

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appointment shall be made by the appointing
authority 1. Appointment by the parties: in an arbitration with
2. In arbitration with sole arbitrator, the arbitrator shall three arbitrators, each party shall appoint one
be appointed, upon a request of a party, by the arbitrator and both appointed arbitrators shall appoint
appointing authority the third arbitrator within 30 days from receipt of
request, failing such, the appointment shall be made
The decision of the appointing authority on this matter is by the appointing authority.
immediately executory and shall not be subject to a motion 2. Default appointment: the appointing authority in ad
for reconsideration or appeal. hoc domestic arbitration, in the absence of agreement
of the parties, is the National President of IBP or his
If any party is not satisfied with the appointment of any, authorized representative.
some, or all of the arbitrators, he may file a petition in court
challenging the appointment of the arbitrators. In institutional arbitration, there is no need for an
appointing authority for purposes of appointing because
the parties have already designated the institutional ADR
provider under whose rules the arbitrators are to be
selected.

3. Request for appointment: the request for


appointment with proof of delivery to the adverse
party shall be filed with the appointing authority.
Within 7 days from the receipt of the request, the
adverse party may file his objections to request or to
ask for an extension not exceeding 30 days to appoint
arbitrator
4. Acceptance of appointment: submit an acceptance
letter which shall include statements that (a) he agrees
to comply with the applicable law and rules of
arbitration; (b) he accepts the applicable arbitrator’s
fees; (c) he agrees to devote much time and attention
to the arbitration as required.
5. Oath of arbitrators: take an oath to faithfully and
fully hear and examine the matter in controversy and
to make a just award according to the best of their
ability

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RTC shall appoint an arbitrator or arbitrators in the
following instances:

(a) If the parties to the contract or submission are unable to


agree upon a single arbitrator;

(b) If an arbitrator appointed by the parties is unwilling or


unable to serve, and his successor has not been appointed in
the manner in which he was appointed;

(c) If either party to the contract fails or refuses to name his


arbitrator within fifteen days after receipt of the demand for
arbitration;

(d) If the arbitrators appointed by each party to the contract or


appointed by one party to the contract and by the proper Court,
shall fail to agree upon or to select the third arbitrator.

(e) The court shall, in its discretion appoint one or three


arbitrators, according to the importance of the controversy
involved in any of the preceding cases in which the agreement
is silent as to the number of arbitrators.

(f) Arbitrators appointed under this section shall either accept


or decline their appointments within seven days of the receipt
of their appointments. In case of declination or the failure of
an arbitrator or arbitrators to duly accept their appointments
the parties or the court, as the case may be, shall proceed to
appoint a substitute or substitutes for the arbitrator or
arbitrators who decline or failed to accept his or their
appointments.
Grounds for 1. Doubt as to his impartiality or independence 1. Circumstances exist that give rise to a justifiable
Challenge 2. Doubt as to the possession of qualifications agreed doubt as to his impartiality or independence
upon by the parties 2. He does not possess the required qualifications under
the law or agreement of the parties
3. He is disqualified to act as an arbitrator

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4. He refuses to respond to questions by a party
regarding the nature and extent of his professional
dealings with a party or counsel
Procedure for 1. Challenging party shall send written statement of the The general rule is that the procedure that is agreed upon by
Challenge reasons for the challenge to arbitral tribunal within the parties for challenging an arbitrator shall be applied.
15 days after becoming aware of the circumstances
consisting the ground for challenge. In default, the following shall govern:
2. If the challenge before the arbitral tribunal is not 1. Challenging party shall send a written statement of
successful, the challenging party may request the the reasons for the challenge to the arbitral tribunal
appointing authority within 30 days from notice of within 15 days after becoming aware of the
the decision, to decide the challenge, which decision constitution of the tribunal or of the ground for
shall be immediately executory and not subject to a challenge.
motion for reconsideration or appeal. 2. Within 15 days from receipt, the challenged arbitrator
either accept or reject it. If he accepts, he shall
A party may file a petition in court questioning the decision voluntarily withdraw as arbitrator.
in the challenge against an arbitrator in accordance with 3. If he rejects, he shall communicate within 15 days his
Special Rules of Court on ADR. rejection and state the facts and arguments relied
After a successful challenge, a substitute arbitrator will have upon
to be appointed. 4. Notwithstanding the rejection, within 15 days the
parties may agree to the challenge and replace the
challenged arbitrator.
5. If the challenged arbitrator does not accept the
challenge or does not withdraw from his office and
the parties do not agree to the challenge, the arbitral
tribunal shall decide the challenge within 30days
from receipt of the notice of the decision rejecting the
challenge.
6. If the challenge before the arbitral tribunal is not
successful or a party or tribunal shall decline to act,
the challenging parties may request the appointing
authority to decide the challenge within 30 days.
7. If the appointing authority shall fail to act on the
challenge within 30days from the date of its receipt,
the requesting party may, with the notice to the
parties, renew the request with the court.
8. Until a decision is made by the challenged arbitrator,
the parties, arbitral tribunal or the appointing

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authority, the arbitration proceeding shall continue.
Once the challenge is elevated to the court, the
arbitration proceeding shall be suspended until after
the court shall have decided the incident.
9. The decision of the parties, the arbitral tribunal, the
appointing authority pr the court, to accept or reject a
challenge shall be immediately executory and is not
subject to appeal or MR.
10. The appointment of a substitute shall be made
pursuant to the procedure applicable to the
appointment of the arbitrator being replaced
Procedure in case As in the case of ICA, if an arbitrator in a domestic arbitration becomes de jure or de facto unable to perform his functions or
arbitrator fails to act fails to act without undue delay, his mandate terminates if 1. He withdraws, or 2. The parties agree on the termination.

If the controversy remains, any party may request the appointing authority to decide on the termination of the arbitrator, which
decision shall be immediately executory and shall not be subject to a MR or appeal.
Arbitral Proceedings Parties are free to determine the rules that will govern their GR: Agreement of the parties.
arbitration proceedings. The default procedure in domestic arbitration is as follows:

The procedures in ICA in default of an agreement of the 1. Statement of Claims – the claimant is required to
parties are as follows: submit within the time agreed upon by the parties or
1. Statement of claims – within the period agreed determined by the arbitral tribunal his statement of claims
upon by the parties, the claimant shall state the facts including the supporting facts, points at issue and the relief
supporting his claim; the issues and relief or remedy sought sought.
and shall be submit or refer to relevant documents. 2. Statement of defense – in the same manner and
2. Statement of Defenses – respondent shall state his period, the respondent shall state his defenses.
defenses. 3. Amendment of claims – the parties may amend or
3. Default of the parties – failure of the claimant or supplement their claims or defenses unless the arbitral tribunal
respondent to communicate their statements of claims or considers the amendment appropriate or dilatory.
defenses during the period or their failure to appear at a 4. Hearing and written proceedings – in an ad hoc
hearing or to produce documentary evidence, results in the domestic arbitration, the procedure determined by the
default of the failing party. arbitrator with the agreement of the parties shall be followed.
Default of the claimant results in termination of proceedings. In an institutional arbitrator shall be followed which has been
Default of the respondent shall not terminate the proceedings impliedly accepted by the parties on account of the
and instead shall proceed without such failure being designation of the institutional arbitral tribunal.
considered as an admission of claimant’s allegation.
Default procedure in Domestic Arbitration:

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4. Amendment of claims or defenses – parties may
amend or supplement their claims or unless the tribunal a. Pre-hearing conference – the parties are required to
considers amendment inappropriate. undergo a pre-hearing conference within 30days from the
5. Hearings – the tribunal shall determine whether to appointment of the arbitrator or the constitution of an arbitral
hold oral hearings only, oral arguments only or just require tribunal during which they shall discuss the venue of the
the submission of documents during the appropriate stages of arbitration.
arbitral proceedings.
a. Court assistance in taking evidence – the tribunal The possibility of a compromise is not among those that the
or any party with the approval of the tribunal, may request parties and the arbitral tribunal are supposed to discuss during
from the courts assistance in taking evidence. the pre-hearing conference.
b. Subpoena – the tribunal has the power to issue
subpoena in order to compel the attendance of witnesses No arbitrator shall act as mediator in any proceeding where he
and/or the production of documents. ARBITRAL is acting as an arbitrator except where, under a settlement
TRIBUNAL DOES NOT HAVE CONTEMPT agreement, the parties agree to constitute the mediator as an
POWERS. arbitrator.
c. Expert – the tribunal may appoint experts to report
to it on specific issues, require the parties to provide the b. Threshold issues – issues on the jurisdiction of the
expert with relevant information or access to documents. arbitral tribunal over the claims and counterclaims or the
6. Conclusion/Closure – an ICA may be concluded or arbitrability of the claims or counterclaims, shall be resolved
closed in either of two ways: by the arbitral tribunal as threshold issues if the parties so
a. By an award or settlement request, unless the issues are intertwined with the factual
b. Termination – tribunal shall issue an order for issues that they cannot be resolve ahead of the hearing on the
termination of arbitration when: merits.
i. The claimant withdraws his claim unless the respondent c. Hearing dates and postponements – arbitral
objects on the basis of legitimate interest in obtaining a final tribunal shall in consultation with the parties fix the date and
settlement; time of hearings. The hearings shall not be postponed except
ii. The parties agree to terminate proceedings in writings; with the conformity of the arbitrator and for good and
iii. Tribunal finds that the continuation of the proceedings has sufficient cause.
become unnecessary or impossible. d. Default of the party – if the claimant fails to
communicate his statement of claims, the tribunal shall
In both instances, the mandate of the arbitral tribunal ends terminate the proceedings. If it is the respondent who fails to
except if the conclusion of the proceedings is by way of an communicate his statement of defenses, the arbitral tribunal
award or settlement, the tribunal’s mandate extends: shall continue the proceedings without treating such failure as
i. To correct and interpret the award an admission of the claimant’s allegation. If any party fails to
ii. To set aside an exclusive recourse against the arbitral appear or produce evidence, he shall have deemed waived
award them.

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iii. When reserved, to the quantification of costs and the e. Decision on interlocutory matters – the arbitral
determination of the party liable therefore, or the division. tribunal may authorize its chairman to issue or release its
decision on interlocutory matters.
The arbitral tribunal retains jurisdiction until the award f. Consolidation or concurrent hearings – they may
becomes final and executory. agree to consolidate the arbitration proceedings with other
arbitration proceedings or hold concurrent hearings.
g. Closure of hearing – no further motion,
manifestation or submission maybe allowed except for post-
hearing briefs and reply briefs, unless the tribunal, motu
propio or upon the request of a party allows the reopening of
the hearing.
5. Rules on taking evidence –
a. Testimonial evidence – witnesses shall be required
to take an oath or affirmation to tell the truth. The parties may
also agree in writing to submit their dispute to arbitration other
than by oral hearing.
b. Documentary evidence – the tribunal may require
the parties to submit or produce such other necessary
documents.
c. Subpoena – the tribunal shall have the power to issue
subpoena.
d. Expert – the tribunal may appoint one or more
experts to report to it on specific issues, may require the
parties to submit relevant information or grant access to such
expert and may grant the parties opportunity to ask questions
of the expert and present their own experts to testify on the
points at issue.

In domestic arbitration, upon the agreement of the parties, the


finding of the expert engaged by the tribunal shall be binging
upon them and the tribunal.
e. Court assistance in taking evidence – the
provisions of IRR on domestic arbitration specified some of
the modes.

6. Decision – the decision of the tribunal shall be made


by the sole arbitrator or unless otherwise agreed upon by the

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parties, by the majority of the arbitrators in multi-arbitrator
proceedings.
However, questions of procedure may be decided by the
chairman of the tribunal if authorized by the parties or by all
members of the tribunal. The tribunal shall render its written
award within 30days after the closing of the hearing,
submission of the parties’ briefs.
7. Form and content of the award –shall be in writing,
signed by the arbitrator, and shall state the rendition and the
place of arbitration.
The award need not be acknowledged or sworn to unless
required by the parties. The parties may require the tribunal to
supply the omission within 30days from receipt of the award.
8. Settlement – the proceedings will be terminated by
the execution of an arbitral award on agreed terms.
9. Termination of the claim – unless the respondent
objects for the purpose of prosecuting his counterclaim or the
tribunal recognizes a legitimate interest on his part in
obtaining a final settlement of the dispute.
Interim Measures The procedures for granting interim measures in ICA are Parties may seek interim measures including preliminary
as follows: injunction, appointment of receiver, detention of property and
preservation and inspection. Either party may also secure
1. After the arbitral tribunal has been constituted, any assistance from the courts for the implementation of interim
party may request for the grant of interim measure from the measures.
arbitral tribunal against the adverse party. Request shall be in
writing transmitted by reasonable means to the arbitral
tribunal and the adverse party, describing the precise relief in
appropriate detail, the ground and the evidence supporting
the request.
2. The relief may be granted in order to prevent
irreparable loss; to provide for security for the performance
of an obligation; to produce or preserve evidence; to compel
any other appropriate acts or omissions.
3. The grant of interim measure may be conditioned
upon the provision security or any act or omission specified
in the order.

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4. The order either granting or denying the request for
interim measure shall be binding upon the parties and either
party may apply with the courts for assistance in
implementing or enforcing it.
5. A party who refuses to comply with the order for an
interim measure shall be liable for damages resulting from
non-compliance including all expenses and reasonable
attorney’s fees paid in obtaining judicial enforcement. The
party who refuses to comply with the court order compelling
compliance with an interim measure may be cited for indirect
contempt of court.
6. Before the constitution of the arbitral tribunal, or to
the extent that the arbitral tribunal already constituted has no
power to act effectively, the interim measure may be
requested from the court in accordance with the Special
Rules of Court on ADR.
Fees and Costs Costs in an ICA includes: Fees of the arbitrator in a domestic arbitration shall be
1. Fees of the arbitral tribunal; determined by the agreement of the parties in writing prior to
2. Travel and other expenses; the arbitration.
3. Costs of expert advise; In default, the arbitrators’ fees shall be determined in
4. Travel and other expenses of witnesses; accordance with the applicable rules of the regular arbitration
5. Costs for legal representation and assistance; and institution
6. Fees and expenses of the appointing authority.

In principle, the costs shall borne by the unsuccessful party.


However, the arbitral tribunal may apportion the costs if
unreasonable under the circumstance of the case.
Modification of Awards The arbitral award may be amended in any of the Tribunal may amend or modify awards when:
following manners: 1. Under the arbitration agreement – if provided, the
1. Quantification of the costs and the determination of tribunal may cause the amendment.
the party liable or the division between the parties – provided 2. Failure to resolve the issue – if the tribunal failed to
that a reservation for such hearing and quantification has resolve an issue, parties may ask for the resolution.
been made by the tribunal. 3. Quantification of costs – if the tribunal made
2. Correction of typographical and similar errors reservation in the final award, it may supplement the award by
initiated by a party – parties may ask the tribunal for the such quantification, determination or apportionment.
correction of the award within 30days from receipt of the 4. Correction of typographical error and similar errors
award and with notice to the other party, for any error in initiated by a party – a party may ask the tribunal for the

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computation, clerical or typographical error. An error is correction of the award within 30days from the receipt of the
typographical or clerical in nature and therefore correctible award and with notice to the other party.
even after the decision has become executory, if the error is 5. Interpretation of the award – within the same period,
occasioned by a mistake in copying or typing does not alter the parties may agree to request the tribunal to give an
the substance of the decision and does not affect or prejudice interpretation on a specific point or part of the award.
substantial rights. 6. Correction of the typographical errors initiated by the
3. Interpretation of the award – within the same period tribunal – within 30days from the date of the award, the
for the correction of typographical errors initiated by the tribunal may motu propio correct any typographical error
parties, the parties may agree to request the tribunal to give 7. Additional award – within 30days from receipt of the
an interpretation of a specific point or part of the award. If award, a party with notice to the other, may request the
the tribunal finds the request for correction justified, it shall tribunal to make an additional award as to claims presented in
make the correction or give the interpretation within 30days the arbitral proceedings but omitted in the award. If justified,
from receipt of the request and the interpretation or the tribunal shall make the additional award within 60days
correction shall form part of the award. from the receipt of the request.
4. Correction of typographical error initiated by the
arbitral tribunal – within 30days from the date of award, the Unless the parties have granted upon any period of time, the
tribunal may motu propio correct any typographical error. parties may ask for correction, interpretation or the rendition
5. Additional award – within 30days from receipt of of an additional award within 30days from the receipt of the
the award, a party, with notice to the other party, may request award.
the tribunal to make an additional award as to claims
presented in the arbitral proceedings but omitted in the A court may amend or modify a domestic arbitral award
award. in the following instances:

1. Where there is an evident miscalculation of figures or


an evident mistake in the description of any person, thing or
property referred to in the award;
2. Where the arbitrators have awarded upon a matter not
submitted to them, not affecting the merits of the decision
upon the matter submitter;
3. Where the award is imperfect in a matter of form not
affecting the merits of the controversy and if it has been a
commissioner’s report, the defect could have been amended
or disregarded by the court.

If the award upon a matter not submitted for arbitration, or if


the imperfect form of the award, affects the merits of the

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decision or controversy, the award should be vacated instead
of merely being amended or modified by the court.

The notice of a motion to vacate, modify or correct an award


must be served upon the adverse party within 30days after the
award is filed or delivered.

The judgment of RTC rendered in a motion to confirm,


modify, correct or vacate an award shall have the same force
and effect as judgment in an action and may be enforced as if
it had been rendered in the court in which it is entered.

Setting Aside of an An ICA award may be set-aside through the RTC A domestic award may be set-aside through the courts
Award provided that: only on the following grounds:
1. The arbitral award was procured by corruption, fraud
1. The petitioner furnishes proof that there was: or other undue means
a. Defect in the arbitration agreement – party was 2. There was evident partiality or corruption in the
under some incapacity or agreement is not valid under tribunal or any of its members
applicable law; 3. The tribunal was guilty of misconduct or any form of
b. Violation of due process – petitioner was not given misbehavior that has materially prejudiced the rights
proper notice of the appointment of an arbitrator or of any party
proceeding or otherwise unable to present his case; 4. One or more of the arbitrators was disqualified to act
c. Lack or excess of jurisdiction on the part of arbitral as such and willfully refrained from disclosing such
tribunal – the award deals with a dispute not contemplated disqualifications
by or not falling within the terms of submission to arbitration, 5. The arbitral tribunal exceeded its powers or so
subject to the application of the doctrine of imperfectly executed them such that a complete, final
severability/separability; and definite award upon the subject matter submitted
d. Violation of arbitration agreement – the to it was not made.
composition of tribunal or process was not in accordance
with the agreement, unless such agreement was in conflict The court before which the petition for setting-aside a
with a provision of the ADR act domestic arbitral award is filed has the prerogative and
option to suspend the court proceedings in the following
2. Or the court finds that: instances:
a. The subject of the dispute is not capable of
settlement under the laws of RP

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b. The award is in conflict with the public policy of the 1. To give the tribunal an opportunity to resume the
Philippines arbitral award proceedings or take such action which will
eliminate the grounds for setting aside an award;
2. The petitioner or the oppositor may petition the court
to remit the case to the same tribunal for the purpose of
making new or revised final and definite award or to direct a
new hearing before the same or new tribunal; or
3. If the ground for vacating an arbitral award does not
affect the merits of the case and may be cured or remedied,
the adverse party may oppose the petition and instead request
the court to suspend the vacation or setting aside proceedings
to give the arbitral tribunal an opportunity to cure or remedy
the award or resume the arbitration proceedings or take such
action as will eliminate the grounds for vacation or setting
aside.

In the foregoing instances, opportunity is being given to the


tribunal to cure any defect in its proceedings and award.
Recognition of Award In general, the conditions and requisites for the recognition Recognition of a domestic arbitral award is made by filing a
and enforcement of foreign judgments in the Philippines are: motion for confirmation and securing an entry of judgment
1. Proof of foreign judgment; from the court. An award in domestic arbitration is rendered
2. The judgment must be on a civil or commercial by a Philippine arbitral tribunal applying RP law. All that is
matter; required in order to enforce a domestic award is to have it
3. There must be no lack of jurisdiction, no want of confirmed through a motion filed in court.
notice, no collusion, no fraud, no clear mistake of law or fact;
4. The judgment must not contravene a sound and
established public policy of the forum; and
5. The judgment must be res judicata in the state that
rendered it.

The procedure for the recognition and enforcement of


convention and as-in convention awards are as follows:

1. Filing of application – party relying upon an award


or applying for its enforcement shall file with the RTC the
original or duly authenticated copy of the award and the
original arbitration agreement.

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2. Confirmation – once confirmed, the foreign arbitral
award shall be enforced in the same manner as final and
executory decisions of the courts of law of the RP.
3. Consolidation/concurrent hearings – the parties and
tribunal may agree on 1. Consolidation of proceedings; or 2.
The conduct of concurrent hearings with other related
arbitration proceedings.
4. Rejection/suspension – the RTC, upon application
for rejection or suspension of the enforcement of the award,
may vacate or suspend the enforcement, order the party
seeking rejection or suspension to provide appropriate
security like a bond for example. In the case of as-in
convention award, the court may also remit the award to the
arbitral tribunal of the objections raised may be cured or
rectified.
5. Appeals – the decision of RTC recognizing,
enforcing, vacating or setting aside an arbitral tribunal
awards may be appealed to the CA in accordance with the
special rules on ADR, which shall require the appealing party
to post a counter-bond in favor of the prevailing party in the
amount of the award. The right to appeal may be validly
waived by the agreement or stipulation of the parties without
prejudice to judicial review by certiorari

ICA VS DOMESTIC ARBITRATION


15
BY: ANGELINE WILSON

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