Voluntary Arbitration – involves the reference of a dispute to an

impartial body, the members of which are chosen by the parties

themselves, which parties freely consent in advance to abide by the
arbitral award issued after the proceedings where both parties had
the opportunity to be heard.
b. Compulsory Arbitration – process of settlement of disputes by a
government agency which has the authority to investigate and to
make an award which is binding on all parties and as a mode of
arbitration where the parties are compelled to accept the resolution
of their dispute through arbitration by a 3rd party.

Being an inexpensive, speedy and amicable method of settling disputes

arbitration – along with mediation, conciliation and negotiation – is encouraged by SC.
Aside from unclogging judicial dockets, arbitration also hastens the resolution of
disputes, especially of the commercial kind. It is thus regarded as the “wave of the
future” in international civil and commercial disputes. Brushing aside a contractual
agreement calling for arbitration between the parties would be a step backward.
(Korea Technologies Ltd. Vs. Lerma 542 SCRA 1, 2008)

The basic objective of arbitration is to provide a speedy and inexpensive

method of settling disputes by allowing the parties to avoid formalities, delay,
expense and aggravation which commonly accompany ordinary litigation, especially
litigation which goes through the hierarchy of courts.
The decisions of an arbitral tribunal are subject to judicial review. The
inclusion of an arbitration clause in a contract does not ipso facto divest the courts to
pass upon the findings of arbitral bodies.
In case of ABS-CBN BROADCASTING CORP. VS WINS JAPAN LTD
(544 SCRA 308, 2009) enumerated the judicial remedies an aggrieved party to an
arbitral award may take, namely:
1. A petition in the proper RTC to issue an order to vacate the award on the
grounds provided in Section 24 or RA876;
2. A petition for review in the CA under Rule 43 of ROC on questions of fact,
of law or mixed questions of fact and law;
3. A petition for certiorari under Rule 65 of ROC should the arbitrator have
acted without or in excess of his jurisdiction or with grave abuse of
discretion amounting to lack or excess of jurisdiction.
In domestic arbitration, if the arbitral tribunal decides to defer such ruling until
the rendition of the arbitral award, none of the parties can seek judicial relief from the
deferment.