CASTILLO MARIA GINALYN P.

BATANGAS STATE UNIVERSITY

COLLEGE OF LAW
SY January 2020 – June 2020 FINAL EXAMINATION IN ALTERNATIVE DISPUTES RESOLUTION
DO NOT LEAVE ANY QUESTION UNANSWERED . REFER TO YOUR NOTES AS WELL AS YOUR
REFERENCES.
1. X and Y who have an arbitration clause in a service contract where they are parties, are
already engaged in a civil action in RTC on an “arbitrable” dispute. Can both or any one
of them still move for arbitration in the RTC? If your answer is yes describe the process,
time limit, disqualifier and exceptions to time bar. Can X and Y proceed with
arbitration without court order? Why? What happens to the civil action? 20 points
ANSWER:
Any or both of them may still move for arbitration in the RTC, provided that
the party requesting for the dispute to be subjected to arbitration is not in default
or did not violate the arbitration agreement. This is in accordance with Rule 4.1 of
the SADR.
The requesting party shall file a motion to the court to refer the case to
arbitration which shall be made not later than the pre-trial conference which is the
general rule. The exception is that the dispute may still be referred to arbitration
even after the pre-trial conference provided that both parties request the court to
refer the dispute to arbitration. The court will stay in action or proceeding the
civil action initially filed and determine whether the dispute is a really an
arbitrable dispute.
The request for referral shall be in the form of a motion, which shall state
that the dispute is covered by an arbitration agreement. Apart from other
submissions, the movant shall attach to his motion an authentic copy of the
arbitration agreement. The request shall contain a notice of hearing addressed to
all parties specifying the date and time when it would be heard. The party making
the request shall serve it upon the respondent to give him the opportunity to file a
comment or opposition. The comment/opposition must be filed within fifteen (15)
days from service of the petition.
The resolution of the case is through summary proceedings. Upon finding
of the court that the dispute is indeed an arbitrable one, it will issue an order and
refer the parties to arbitration. Otherwise, the court shall continue with the
judicial proceedings.
X and Y can still resort to arbitration proceeding even without court order
because resorting to arbitration is primarily based on party autonomy and not
with the court. It is based on the consent of both parties to engage into
arbitration. The civil action in this instance will be ineffectual, the court cannot
pre-empt the resolution of an arbitral tribunal.
CASTILLO MARIA GINALYN P.

2. Distinguish domestic arbitration from international commercial arbitration citing

particular differences and features including the law and rules applicable to each
process. 10

ANSWER:
In domestic arbitration, is a form of ADR where one or more person(s) are
appointed to hear a case that takes place within one jurisdiction while in
international arbitration, arbitration is between companies or individuals in
different states.
In domestic arbitration, a party may petition to the Regional Trial Court for
the confirmation, correction or vacation of the award. While, in international
arbitration, a party may only petition for the recognition/enforcement or setting
aside of the arbitral award, the court cannot modify or correct the award unlike in
domestic arbitration.
In domestic arbitration the venue for the filing of petition for confirmation,
correction/modification or vacation of a domestic arbitral award may be filed with
Regional Trial Court having jurisdiction over the place in which one of the parties
is doing business, where any of the parties reside or where arbitration
proceedings were conducted. While in arbitration proceeding, a petition to
recognize and enforce or set aside an arbitral award may, at the option of the
petitioner, be filed with the Regional Trial Court: (a) where arbitration proceedings
were conducted; (b) where any of the assets to be attached or levied upon is
located; (c) where the act to be enjoined will be or is being performed; (d) where
any of the parties to arbitration resides or has its place of business; or (e) in the
National Capital Judicial Region.
In domestic arbitration, the governing laws are Republic Act No. 876, 9285
and SADR. While in international domestic arbitration, the recognition and
enforcement of a foreign arbitral award shall be governed by the 1958 New York
Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the
"New York Convention") and this Rule. The court may, upon grounds of comity
and reciprocity, recognize and enforce a foreign arbitral award made in a country
that is not a signatory to the New York Convention as if it were a Convention
Award.

3. From an international commercial arbitration award B desires to question the wrongful

computation of the value of undelivered and damaged goods reached by the arbitral
tribunal. Can B move for a reconsideration in the tribunal ? If denied, what is the
remedy available to him and how will his petition be made , with what court? 20
CASTILLO MARIA GINALYN P.

ANSWER:
Yes, B can move for the reconsideration in the tribunal and if it was denied he
may file a petition to set aside the award. The petition to set aside an arbitral
award may only be filed within three (3) months from the time the petitioner
receives a copy thereof. If a timely request is made with the arbitral tribunal for
correction, interpretation or additional award, the three (3) month period shall be
counted from the time the petitioner receives the resolution by the arbitral
tribunal of that request.
A petition to set aside can no longer be filed after the lapse of the three (3)
month period. The dismissal of a petition to set aside an arbitral award for being
time-barred shall not automatically result in the approval of the petition filed
therein and in opposition thereto for recognition and enforcement of the same
award. Failure to file a petition to set aside shall preclude a party from raising
grounds to resist enforcement of the award.
The petition shall be filed in the Regional Trial Court (a) where arbitration
proceedings were conducted; (b) where any of the assets to be attached or levied
upon is located; (c) where the act to be enjoined will be or is being performed; (d)
where any of the parties to arbitration resides or has its place of business; or (e)
in the National Capital Judicial Region.

4. If B would have the same problem and this time the arbitration was a domestic one, not
International commercial arbitration, can he move that the tribunal vacate its order? If
denied, what kind of court intervention or what further recourse can B seek? 20

ANSWER:
Yes, B can move for the reconsideration and vacation of the order of the
tribunal. If it was denied, he may file a petition for, correction/modification or
vacation of a domestic arbitral award may be filed with Regional Trial Court
having jurisdiction over the place in which one of the parties is doing business,
where any of the parties reside or where arbitration proceedings were conducted
which must be filed within 30 days from receipt of the arbitral award.
The petition must state the following: a. the addresses of the parties and
any change thereof; b. the jurisdictional issues raised by a party during
arbitration proceedings; c. the grounds relied upon by the parties in seeking the
vacation of the arbitral award whether the petition is a petition for the vacation or
setting aside of the arbitral award or a petition in opposition to a petition to
confirm the award; and, d. a statement of the date of receipt of the arbitral award
and the circumstances under which it was received by the petitioner.
Apart from other submissions, the petitioner must attach to the petition the
following: a. an authentic copy of the arbitration agreement; b. an authentic copy
CASTILLO MARIA GINALYN P.

of the arbitral award; c. a certification against forum shopping executed by the

applicant in accordance with Section 5 of Rule 7 of the Rules of Court; and, d. an
authentic copy or authentic copies of the appointment of an arbitral tribunal.

5. In a construction agreement, the following provision is included:

“ Any dispute arising from disagreements on nature of work, quality of
materials, delay in execution of phases of work xxx shall first be submitted by
the party adversely affected to a Special Consulting Group (SCG) to be
constituted as the needs arise, from nominees of each party with a third party
selected by the two nominees from any officer or member of the local Building
Contractors Association. The SCG shall resolve the dispute before the same is
brought before the Construction Arbitrator”
The following procedure shall be followed in choosing ….”
Can a party in this agreement bring any dispute falling under any of the
differences specified , before the CIAC directly? Cite the law under EO 1008
ANSWER :
YES, a party in this agreement may bring any dispute falling under any of
the differences specified before the CIAC. Section 4 of EO 1008 provides:
The CIAC shall have original and exclusive jurisdiction over 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 after the
abandonment or breach thereof. These disputes may involve government
or private contracts. For the Board to acquire jurisdiction, the parties to a
dispute must agree to submit the same to voluntary arbitration.
For a particular contract (assuming there will be or there is dispute) to fall
WITHIN THE JURISDICTION OF THE CIAC, it is merely necessary that parties
agree to submit their disputes to voluntary arbitration.

How will you dispose of opposition that since the law between the parties is the
contract which requires prior recourse to SCG, this requirement must first be complied
with ? 15

ANSWER:
In CHINA CHANG v. ROSAL INFRA BUILDERS (1996) ruled that AS LONG
AS the parties agree to submit to voluntary arbitration, regardless of what
forum they may choose, their agreement will fall within the jurisdiction of the
CASTILLO MARIA GINALYN P.

CIAC, such that even if they choose another forum, the parties will not be
precluded from electing to submit their disputes before the CIAC because this
right has been vested upon each party by EO 1008.
Hence, as ruled in this jurisprudence even if there is stipulation to resort to
some other forum, a party cannot be precluded to resort to CIAC since it has
original and exclusive jurisdiction over construction disputes.

6. Recognition of a foreign arbitral award is pending with RTC Batangas City. An

opposition to the recognition was filed by the opposing party . We learned that the
RTC can only recognize or refuse recognition. Under what instances can such refusal
be justified ? If refusal is justified, what can the losing party do to enforce the award ,
not necessarily within our country?
ANSWER:
Under Rule 12.4 of the SADR the grounds to set aside or resist enforcement
are:
a. The party making the application furnishes proof that:
(i). A party to the arbitration agreement was under some incapacity, or
the said agreement is not valid under the law to which the parties have
subjected it or, failing any indication thereof, under Philippine law; or
(ii). The party making the application to set aside or resist enforcement
was not given proper notice of the appointment of an arbitrator or of the
arbitral proceedings or was otherwise unable to present his case; or
(iii). 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 to arbitration; provided that, if
the decisions on matters submitted to arbitration can be separated from
those not so submitted, only that part of the award which contains
decisions on matters not submitted to arbitration may be set aside or only
that part of the award which contains decisions on matters submitted to
arbitration may be enforced; or
(iv). The composition of the arbitral tribunal or the arbitral procedure
was not in accordance with the agreement of the parties, unless such
agreement was in conflict with a provision of Philippine law from which the
parties cannot derogate, or, failing such agreement, was not in accordance
with Philippine law;
b. The court finds that:
(i). The subject-matter of the dispute is not capable of settlement by
arbitration under the law of the Philippines; or
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(ii). The recognition or enforcement of the award would be contrary to

public policy.
If the refusal is justified, the losing party may enforce the award in the
foreign country involve in the contract.

If recognition is granted, is a motion for reconsideration allowed? The rules say that
the award is immediately executory if recognized. Does this prevent the losing party
from appealing to the CA? If your answer is yes what is the mode of appeal ? IF CA
still finds that the recognition confirmed by the CA from the action of the RTC is
proper, can this CA ruling be still elevated to the SC? Reasons. 15.
ANSWER:
YES, a motion for recognition is allowed as provided for under Rule 19.1 of
SADR which must be filed withing 15 days from receipt of order or ruling.
Upon denial of the motion for reconsideration, the party may appeal to the
Court of Appeals as provided for under Rule 19.12 of the SADR through a petition
for review under Rule 45 of the Rules of Court which must be files within 15 days
from the date of receipt of award.
The ruling of the CA can still be appealed to the Supreme Court but only on
the ground that the Court of appeals
a. Failed to apply the applicable standard or test for judicial review
prescribed in these Special ADR Rules in arriving at its decision resulting
in substantial prejudice to the aggrieved party;
b. Erred in upholding a final order or decision despite the lack of
jurisdiction of the court that rendered such final order or decision;
c. Failed to apply any provision, principle, policy or rule contained
in these Special ADR Rules resulting in substantial prejudice to the
aggrieved party; and
d. Committed an error so egregious and harmful to a party as to
amount to an undeniable excess of jurisdiction.
This is provided for under Rule 19.36 of the SADR and through appeal by
Certiorari to the Supreme Court within 15 days from notice of the final judgment
or resolution being appealed.
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