ALTERNATIVE DISPUTES RESOLUTION
would have been more practical to have availed of
1. What are the reasons why parties are hesitant to
file cases in courts?
● It is expensive on their part. Expensive costs
pertain to both financial expenditure expenses
and excessive time costs.
○ E.g.: Lawyer’s fees, docket fees, etc.
● Parties don’t want a judicial delay. Human
failings in court proceedings refers to the
lapses of persons who are working in the
judicial department such as judges, lawyers,
court personnel, prosecutors, sheriffs, defense
lawyers, process servers and others.
○ Cause of failure: Delayed resolution
of cases emanates from inefficiency,
incompetence, sloth or laziness,
corruption or conflict of interests of
these officials
■ E.g. Sa court proceeding -
hearing - wala ang abogado,
na kailangan ay nand’on kasi
may hearing. Doon papasok
ang human failings kasi ang
naging cause of failure ng
abogado ay laziness, tas mas-
sched na naman ng panibago
ang hearing dahil sa laziness.
■ E.g. Si witness ‘di sisipot
CONSTITUTIONAL AND PROCEDURAL
PROCEEDINGS
Factors arising from the adversary nature of the
judicial process and the constitutional requirements of
due process of law also cause judicial delays. Thus,
the constitutional presumption of innocence requires
careful screening of criminal charges in the form of
preliminary investigations conducted by
prosecutors or Municipal Trial Courts performing
this function. Only upon an affirmative preliminary
finding of merit may the criminal charge be filed in
court.
 Proseso ng pagga-gather ng evidence and
investigation process - dito rin nagtatagal
CLOGGED DOCKETS DUE TO INDISCRIMINATE
FILING OF COURT CASES
Chief Justice Fred Ruiz Castro largely blames the
overcrowding of court dockets which he calls the
“over-use, misuse and abuse” of the judicial remedy.
This Means that a person seeking redress of a
grievance has gone directly to court when it probably
other modes of dispute resolution. The hypothesis of
Chief Justice Castro is that litigation prone lawyers
have the courts the place of initial settlement rather
than the ultimate place of dispute resolution that they
were originally meant to be. The solution to this cause
must start with the law curriculum to give more
emphasis to the “preventive lawyering function” in
order to balance the heavy concentration of
preparation for litigation. A re-orientation of lawyers
along this line seems wanting.
DOCKETS
 The official record of all of the proceedings
pending in a court. A docket normally
includes, for each proceeding, a chronological
listing of each of the: Papers filed by the
parties. Orders, judgments, and other papers
issued by the court. Appearances, verdicts,
and other in-court events.
CLOGGED DOCKETS
 The most vivid representation of how delay in
the delivery of justice amounts to its denial.
Each day that a case is left to rot in the docket
translates to a day more of wait for one
unjustly accused, or another denied of a
rightful claim.
 Pending records and documents in the court
due to indiscrimination filing of cases - one of
the reason is they look after sa payment.
o Problem - 0vercrowding ang court
dockets. Dapat sa court pa lang that
would be the place for initial
settlement to remedy or resolve
dispute. Pero hindi yun ang
nangyayari - dahil ang nangyayari ay
tambak at nakapending na file of court
cases.
o Solution – if ganito ang nangyayari ay
it must start with the law curriculum
to give more emphasis to the
“preventive lawyering function” in
order to balance the heavy
concentration of preparation for
litigation - or in other words,
mabigyan ng remedy or solution.
Parties often fails to comprehend the legal system
Popular incomprehensibility of the judicial process
refers not only to the use of English as the official
language of the formal legal system but also to the use
of technical jargon of lawyers. It also refers to highly
technical rules of procedure designed to ensure the
accuracy of the fact-finding that is the essential basis
for judicial decision-making. The rules are also
intended to ensure that the judge is a neutral,
impartial, objective and fair decision-maker.
 Complicated words or terms is used na dapat
ay understandable.
 Being accurate in using words to prove the
fact as basis for judicial decision making
Perceived unsuitability of the judicial process to
the resolution of everyday conflicts
Unsuitability of judicial proceedings for everyday
interpersonal disputes related to the nature of the
judicial process as essentially punitive and
backward-looking. It is simply concerned with the
issue of “who did what to whom” and not to the why
and the wherefore. Only the symptoms are recognized
but not the cause of malady.
 Ang nakikita nila, hindi angkop o sala ang
ginagawang proseso o ruling na batas para
ma-resolve ang dispute. Bakit? In judicial
process, ang nakikita laging tanong is who,
what at whom na ang hinahanap dapat ay why
at wherefore or even how para hanapin ang
causes ng issue or conflict.
 Parang kung kapag inihambing sa sakit “Only
the symptoms are recognized but not the cause
of illness.” meaning kung sa judicial
proceeding, ang symptoms ay ang issue kung
saan yun lang ang nakikita, hindi ang causes
ng illness or ang causes ng issue kung sa
judicial proceeding.
WHAT IS ALTERNATIVE DISPUTE
RESOLUTION? (ADR)
The Republic Act No. 9285, or also known as the
Alternative dispute resolution Act of 2004 (ADR Act),
provides for the much-needed legislation to
institutionalize arbitration in the Philippines. The
ADR Act addressed most of the inadequacies of its
predecessor, Republic Act No. 876.
ADR SYSTEM
 A system, using means and methods allowed
by law and approved by the parties, for the
purpose of resolving or facilitating the
resolution of disputes and controversies
between them, in an expeditious and speedy
manner, without resorting to court
adjudication.
 Any process or procedure used to resolve a
dispute or controversy, other than by
back to the community a deeper involvement in the
adjudication of a presiding judge of a court or
an officer of a government agency which
neutral third party participates to assist in the
resolution of issues.
 It governs both domestic and international
commercial arbitration, and has adopted the
1985 UNCITRAL Model Law as a
complement to the Philippines’ earlier
accession to the 1958 New York Convention
on the recognition and enforcement of Foreign
Arbitral Awards on 19 June 1958, which it
ratified on6 July 1967.
3. What is the policy of ADR?
Section 2 of RA 9285 states that, it is hereby
declared the policy of the State to actively promote
party autonomy in the resolution of disputes or the
freedom of the party 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 justice 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 prejudice to the adoption by
the Supreme Court of any ADR system, such as
mediation, conciliation, arbitration, or any
combination thereof as a means of achieving speedy
and efficient means of resolving cases pending before
all courts in the Philippines which shall be governed
by such rules as the Supreme Court may approve from
time to time.
4. What are the objective of ADR?
● To promote, develop and expand the use of
alternative dispute resolution (ADR) in the
private and public sectors;
● to assist the government to monitor, study and
evaluate the use by the public and private
sector of ADR; and
● to recommend to Congress needful statutory
changes to develop, strengthen and improve
ADR practices in accordance with world
standards.
5. What are the benefits of ADR?
● This system is very feasible and convenient
considering the efficacy of the Barangay
System
life of their members and reduces the monopoly of
power and wisdom in the hands of lawyers and judges.
 ❖ Speedy and impartial justice
❖ Declogging of court dockets
ADR gives parties in dispute the opportunity to work
through disputed issues with the help of a neutral third
party. It is generally faster and less expensive than
going to court. When used appropriately, ADR can:
save a lot of time by allowing resolution in weeks or
months, compared to court, which can take years
6. What is arbitration?
Arbitration has been defined under the ADR Act as a
voluntary dispute resolution process in which one or
more arbitrators appointed in accordance with the
agreement of the parties resolve a dispute by rendering
an award.
Ang arbitration ay isang proseso sa paglutas ng
hidwaan kung saan ang mga partido ay nagkasundo na
susunod sa ibibigay na desisyon o susunod sa resulta
ng arbitration. Ang desisiyon ng mga arbitrators ay
tatawaging arbitration award
Arbitration agreement is formed when two or more
parties agree to submit to one or more arbitrators
any controversy existing between them at the time
of the submission, of thereafter. This agreement is
valid, enforceable, and irrevocable, save upon such
grounds that exist under the law for the revocation
of any contract (Section 2, Arbitration Law). A
contract or a submission to arbitrate must be in
writing and signed by the parties of their lawful
agents (Section 4, Arbitration Law).
In entering into an arbitration agreement, both parties
involved agrees submit their dispute to an
arbitrator or tribunal of their own choice and be
bound by the latter’s resolution, Being contractual
and consensual in character, the parties in an
arbitration agreement cannot implead a third party in
the proceedings even if the latter’s participation is
indispensable for a complete settlement of the dispute.
The tribunal does not have the power to compel a
person to participate in the arbitration proceedings
without the latter's consent. It also has no authority
to decide on issues that the parties did not submit (or
agree to submit) for its resolution.
FRUEHAUF ELECTRONICS PHILIPPINES
CORPORATION vs. TECHNOLOGY
ELECTRONICS ASSEMBLY AND
MANAGEMENTPACIFIC CORPORATION (GR.
204197) November 23, 2016
Moreover, resorting to arbitration is voluntary, it
requires consent from both parties in the form of
either arbitration clause that pre-existed the
dispute a subsequent submission agreement. This
written arbitration agreement is an independent and
legally enforceable contract that must be complied
with good faith.
Why Arb?
● There are far too many cases pending in the
courts of certain countries, and the majority of
parties would like to receive a quick and fair
outcome to a dispute. Arbitration delivers
results much faster than traditional court
procedures, if a proper arbitration lawyer is
used to guide the procedure.
● Parties have the authority to select
arbitrators known for their competence to
handle particular types of disputes. Quick
results can mean that it will cost parties less
money as compared to traditional court
procedures where cases can last for years.
If possible, try to use a fast-track procedure.
● An arbitration hearing usually takes place
in a private room and can offer complete
confidentiality. It’s very beneficial especially
for businesses involved in a conflict, because
it helps them to retain their reputation among
their clients.
7. What is mediation?
Another form of ADR is mediation which includes
conciliation. Mediation, under the ADR Act, is defined
as a voluntary process in which a mediator, selected
by the disputing parties facilitates communication and
negotiation and assists the parties, in reaching a
voluntary agreement regarding a dispute.
Ang mediation ay isang proseso kung saan ang mga
partido ay nag-uusap para ayusin ng mapayapa o
amicably ang kanilang hidwaan
Conciliation-mediation is a mode of dispute
settlement that brings together two disputing parties to
negotiate and settle their differences. It is a process of
rational and orderly discussion of differences between
the parties to a dispute under the guidance of a
Conciliator-Mediator.
To differentiate, conciliation is a mild form of
intervention by a neutral third party, the Conciliator-
Mediator, relying on his persuasive expertise, who
takes an active role in assisting parties by trying to
keep disputants talking, facilitating other procedural
niceties, carrying messages back and forth between the
parties, and to keep things forward-looking in a
situation. Mediation is an intervention through the
Conciliator-Mediator, whereby restarts advising the
parties or offering solutions or alternatives to the
problems with the end in view of assisting them
towards voluntarily reaching their own mutually
acceptable settlement of the dispute.
Unlike an arbitrator, however, a mediator selected by
the parties usually does not have the power to
compel the parties to accept a recommended
solution. Nevertheless, 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.
Although parties have the freedom to agree to submit
their disputes to these alternative dispute resolution
methods, it must be noted that not all subject matters
of disputes may be resolved through these means.
Section 6 of the ADR Act provides for exceptions to
the application of the Act. In general, resort to ADR
methods cannot be had if the dispute involves matters
which are, as the law provides, not subject to
compromise.
a
Exclusions:
1. court-annexed mediation : conducted under
the auspices of the court
2. court-referred mediation : mediation ordered
by a court to be conducted in accordance
with the agreement of the parties when an
action is prematurely commenced in violation
of such agreementconciliation conducted by
the Pangkat ng Tagapagsundo
3. judicial dispute resolution : conducted by the
judge of a pending case after a failed CAM
Classification of Mediation
1. Non-evidentiary / Non-merit based
2. Institutional or ad hoc
Place of Mediation
GR: parties’ agreement
Default: any place convenient and
appropriate to all parties
**shall be held in private unless consented
not
Stages in Mediation
1. Opening statement of the mediator
2. Individual narration by the parties
3. Exchange by the parties
4. Summary of issues
5. Generalization and evaluation of options
6. Closure
**not obligatory
Conclusion of Mediation
1. by execution of MSA
2. by the withdrawal of any party from
mediation
3. by the written declaration of the mediator
that any effort would not be helpful
Advantages of Mediation
1. Confidentiality
2. Prompt, economical and amicable resolution
3. decision-making authority rests with the
parties
Confidential and Privileged Nature of Mediation
Communication
Privilege - A rule of law that either permits a witness
to refrain from giving testimony he otherwise could
be expected to give, or permits someone usually one
of the parties to prevent the witness from revealing
certain information
Confidential Information - any info relative to the
subject matter of med or arb, expressly intended by
the source not to be disclosed, or obtained under
circumstances that would create a reasonable
expectation on behalf of the source that the info shall
not be disclosed
1. expressly confidential
2. impliedly confidential
Legal Effects of Confidential and Privileged Nature
1. participants may refuse to disclose and
prevent another to disclose
2. CI not subject to discovery and shall be
inadmissable in any adversarial proceeding
3. persons involved shall not be compelled to
disclose CI
4. protection under ADR continues to apply
even mediator fails to act impartially
5. mediator may not be called to testify to
provide info
Exceptions (Privilege does not attach to the following
communication)
1. those contained in an agreement evidence by
a record authenticated by all parties to the
agreement
 2. those available to the public or made in an
open
3. threat or statement of plan to commit
violence
4. intentionally used to plan, commit, conceal a
crime
5. offered to prove or disprove abuse et al.
6. offered to prove or disprove claim or
complaint of misconduct

Mediator - Selected by the parties

May withdraw or may be compelled to withdraw

when:

1. requested by the party/ies

2. does not have the qualifications
3. impartiality is in question
4. continuation of process will evaluate ethical
standards
5. safety of any one of the parties will be
jeopardized
6. inability to provideeffective services
7. conflict of interest
8. others - provided by IRR

Duties and Functions of Mediation

Prior

a. On Competence: maintain and continually

upgrade professional competence
b. On impartiality: make an inquiry re financial
or personal interest that may affect
impartiality

During

a. Confidentiality
b. ensure parties understand the nature and
character
c. encourage mutual respect between parties

Role of Counsel in Mediation

1. collaborate with other lawyers

2. encourage client to actively participate
3. assist client to comprehend and appreciate
process
4. confer and discuss with client the process
8. What is international commercial
arbitration?
International commercial arbitration is a
means of resolving disputes arising under
international commercial contracts. It is
used as an alternative to litigation and is
controlled primarily by the terms previously
agreed upon by the contracting parties,
rather than by national legislation or
procedural rules.
Arbitration has become of the best ways of
handling a dispute because of its many
advantages.
International Arbitration is a technique for
finding a solution to conflicts outside the
court. Qualified arbitrators handle the entire
matter, rather than judges, when parties
agree for the settlement of the matter
outside traditional court procedures. It is
private dispute resolution, rather than public
dispute resolution.
International commercial arbitration is
good for the handling of conflicts arising
under international business contracts.
Parties choose this method of resolving
conflicts to avoid local court practices of
litigations in different jurisdictions, which
often provide the “home court advantage”
to one party.
Why choose ICA?
● There are far too many cases
pending in the courts of certain
countries, and the majority of
parties would like to receive a quick
and fair outcome to a dispute.
Arbitration delivers results much
faster than traditional court
procedures, if a proper arbitration
lawyer is used to guide the
procedure.
● Parties have the authority to select
arbitrators known for their
competence to handle particular
types of disputes. Quick results can
mean that it will cost parties less
money as compared to traditional
court procedures where cases can
last for years. If possible, try to use a
fast-track procedure.
● An arbitration hearing usually takes
place in a private room and can
offer complete confidentiality. It’s
very beneficial especially for
businesses involved in a conflict,
because it helps them to retain their
reputation among their clients.
International
1. parties’ places of business - in
different states
2. place of arb (AA)- outside Phils
3. place of substantial part of the oblig
- outside Phils
4. parties expressly agreed - SM of the
arb - relates to more than one
country
Commercial
1. covers matters arising from all
relationships of a commercial nature
(contractual or not)
Rules on Receipt of Written
Communications
GR: based on agreement
Default: delivered to the addressee
personally / last know address
Waiver of Right to Object in ICA**
Place/Venue
GR: agreement
Default: Metro Manila
Commencement of ICA Proceedings
GR: agreement
Default: when a request to be
referred to arbi is RECEIVED by respondent
Interim measures of protection (also known
as interim relief or conservatory measures)
are orders granted on a temporary basis in
order to safeguard the rights of a party until
there has been a final determination of a
dispute.
SEC. 27. What Functions May be Performed
by Appointing Authority. - The functions
referred to in Articles 11(3), 11(4), 13(3) and
14(1) of the Model Law shall be performed
by the Appointing Authority, unless the
latter shall fail or refuse to act within thirty
(30) days from receipt of the request in
which case the applicant may renew the
application with the Court.
Article 11. Appointment of arbitrators
(3) Failing such agreement, (a) in an arbitration
with three arbitrators, each party shall appoint
one arbitrator, and the two arbitrators thus
appointed shall appoint the third arbitrator; if a
party fails to appoint the arbitrator within thirty
days of receipt of a request to do so from the
other party, or if the two arbitrators fail to agree
on the third arbitrator within thirty days of their
appointment, the appointment shall be made,
upon request of a party, by the court or other
authority specified in article 6; (b) in an
arbitration with a sole arbitrator, if the parties
are unable to agree on the arbitrator, he shall be
appointed, upon request of a party, by the court
or other authority specified in article 6.
(4) Where, under an appointment procedure
agreed upon by the parties, (a) a party fails to
act as required under such procedure, or (b) the
parties, or two arbitrators, are unable to reach
an agreement expected of them under such
procedure, or (c) a third party, including an
institution, fails to perform any function
entrusted to it under such procedure, any party
may request the court or other authority
specified in article 6 to take the necessary
measure unless the agreement on the
appointment procedure provides other means
for securing the appointment.
Article 13. Challenge procedure
(3) If a challenge under any procedure agreed
upon by the parties or under the procedure of
paragraph (2) of this article is not successful, the
challenging party may request, within thirty days
after having received notice of the decision
rejecting the challenge, the court or other
authority specified in article 6 to decide on the
challenge, which decision shall be subject to no
appeal; while such a request is pending, the
arbitral tribunal, including the challenged
arbitrator, may continue the arbitral proceedings
and make an award.
Article 14. Failure or impossibility to act
(1) If an arbitrator becomes de jure or de facto
unable to perform his functions or for other
reasons fails to act without undue delay, his
mandate terminates if he withdraws from his
office or if the parties agree on the termination.
Otherwise, if a controversy remains concerning
any of these grounds, any party may request the
court or other authority specified in article 6 to
decide on the termination of the mandate, which
decision shall be subject to no appeal.
SEC. 32. Law Governing Domestic
Arbitration. - Domestic arbitration shall
continue to be governed by Republic Act No.
876, otherwise known as "The Arbitration
Law" as amended by this Chapter. The term
"domestic arbitration" as used herein shall
mean an arbitration that is not international
as defined in Article (3) of the Model Law.
SEC. 34. Arbitration of Construction
Disputes: Governing Law. - The arbitration
of construction disputes shall be governed
by Executive Order No. 1008, otherwise
known as the Constitution Industry
Arbitration Law.
SEC. 40. Confirmation of Award. - The
confirmation of a domestic arbitral award
shall be governed by Section 23 of R.A. 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 confirmation of a domestic award shall
be made by the regional trial court in
accordance with the Rules of Procedure 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 23. Confirmation of award. - At
any time within one month after the award is
made, any party to the controversy which was
arbitrated may apply to the court having
jurisdiction, as provided in section twenty-eight,
for an order confirming the award; and
thereupon the court must grant such order
unless the award is vacated, modified or
corrected, as prescribed herein. Notice of such
motion must be served upon the adverse party
or his attorney as prescribed by law for the
service of such notice upon an attorney in action
in the same court.
SEC. 41. Vacation Award. - A party to a
domestic arbitration may question the
arbitral award with the appropriate regional
trial court in accordance with the rules of
procedure to be promulgated by the
Supreme Court only on those grounds
enumerated in Section 25 of Republic Act
No. 876. Any other ground raised against a
domestic arbitral award shall be disregarded
by the regional trial court.
Section 24. Grounds for vacating
award. - In any one of the following cases, the
court must make an order vacating the award
upon the petition of any party to the controversy
when such party proves affirmatively that in the
arbitration proceedings:
(a) The award was procured by
corruption, fraud, or other undue means; or
(b) That there was evident partiality or
corruption in the arbitrators or any of them; or
(c) That the arbitrators were guilty of
misconduct in refusing to postpone the hearing
upon sufficient cause shown, or in refusing to
hear evidence pertinent and material to the
controversy; that one or more of the arbitrators
was disqualified to act as such under section nine
hereof, and wilfully refrained from disclosing
such disqualifications or of any other
misbehavior by which the rights of any party
have been materially prejudiced; or
(d) That the arbitrators exceeded their
powers, or so imperfectly executed them, that a
mutual, final and definite award upon the
subject matter submitted to them was not
made.
Where an award is vacated, the court, in
its discretion, may direct a new hearing either
before the same arbitrators or before a new
arbitrator or arbitrators to be chosen in the
manner provided in the submission or contract
for the selection of the original arbitrator or
arbitrators, and any provision limiting the time in
which the arbitrators may make a decision shall
be deemed applicable to the new arbitration and
to commence from the date of the court's order.
Where the court vacates an award,
costs, not exceeding fifty pesos and
disbursements may be awarded to the prevailing
party and the payment thereof may be enforced
in like manner as the payment of costs upon the
motion in an action.
Section 25. Grounds for modifying or
correcting award. - In any one of the following
cases, the court must make an order modifying
or correcting the award, upon the application of
any party to the controversy which was
arbitrated:
(a) Where there was an evident
miscalculation of figures or an evident mistake in
the description of any person, thing 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
controversy, 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.
Section 26. Motion to vacate, modify or
correct award: when made. - Notice of a motion
to vacate, modify or correct the award must be
served upon the adverse party or his counsel
within thirty days after the award is filed or
delivered, as prescribed by law for the service
upon an attorney in an action.
Section 27. Judgment. - Upon the
granting of an order confirming, modifying, or
correcting an award, judgment may be entered
in conformity therewith in the court wherein said
application was filed. Costs of the application and
the proceedings subsequent thereto may be
awarded by the court at its discretion. If
awarded, the amount thereof must be included
in the judgment.
SEC. 44 - judgement is delivered on a plaint
or complaint; the award is one made by the
adjudicatory (who arbitrate) authority on a
common ground of disputes. the award is
not a judgment but that is general govt
order
SEC. 45. Rejection of a Foreign Arbitral
Award. - 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.
Any other ground raised shall be disregarded
by the regional trial court.
Article V
1. Recognition and enforcement of the
award may be refused, at the request of the
party against whom it is invoked, only if that
party furnishes to the competent authority
where the recognition and enforcement is
sought, proof that:
(a) The parties to the agreement
referred to in article II were, under the law
applicable to them, under some incapacity, or
the said agreement is not valid under the law to
which the parties have subjected it or, failing any
indication thereon, under the law of the country
where the award was made; or
(b) The party against whom the award is
invoked was not given proper notice of the
appointment of the arbitrator or of the
arbitration proceedings or was otherwise unable
to present his case; or
(c) The award deals with a difference
not contemplated by or not falling within the
terms of the submission to arbitration, or it
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,
that part of the award which contains decisions
on matters submitted to arbitration may be
recognized and enforced; or
(d) The composition of the arbitral
authority or the arbitral procedure was not in
accordance with the agreement of the parties,
or, failing such agreement, was not in
accordance with the law of the country where
the arbitration took place; or
(e) The award has not yet become
binding on the parties, or has been set aside or
suspended by a competent authority of the
country in which, or under the law of which, that
award was made.
2. Recognition and enforcement of an
arbitral award may also be refused if the
competent authority in the country where
recognition and enforcement is sought finds
that:
(a) The subject matter of the difference
is not capable of settlement by arbitration under
the law of that country; or
 (b) The recognition or enforcement of
the award would be contrary to the public policy
of that country.

https://www.academia.edu/20286096/
Alternative_Dispute_Resolution_in_the_Phil
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https://engrjhez.files.wordpress.com/
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https://dirp3.pids.gov.ph/ris/taps/
tapspp9926.pdf

SPECIAL RULES OF COURT ON ADR
(A.M. NO. 07-11-08 SC)
What are the subject matters covered by
special ADR rules?
 Relief on the issue of existence,
validity, or enforceability Of the
arbitration agreement;
 Referral to ADR
 Interim measures of protection
 Appointment of arbitrator
 Challenge to appointment of
arbitrator
 Termination of mandate of arbitrator
 Assistance in taking evidence
 Confirmation, correction or vacation
of award in domestic arbitration
 Recognition and enforcement or
setting aside of an award in
international commercial arbitration
 Recognition and enforcement of a
foreign arbitral award
 Confidentiality/protective orders
 Deposit and enforcement of mediated
settlement Agreements
What is the nature of the ADR
proceedings?
 Special proceedings
What must be done by the petitioner prior
to the filing of the petition in court?
 The petitioner shall serve, either by
or personal service courier, a copy of
the petition upon the respondent
before the filing thereof. Proof of
service shall be attached to the
petition filed in court.
What constitute proof of service?
 For personal service, proof of service
of the petition consists of the
affidavit of the person who effected
service, stating the time, place and
manner of the service on the
respondent
 For service by courier, proof of
service consists of the signed courier
proof of delivery
 If service is refused or has failed, the
affidavit or delivery receipt must
state the circumstances of the
attempted service and refusal or
failure thereof
How many days do the court gave to
resolve the matter?
 30 days from the day of the hearing
Are pleadings filed under the special ADR
rules need to be verified?
 Yes. Any pleading, motion,
opposition, comment, defense or
claim filed under the special ADR
rules by the proper party shall be
supported by verified statements that
the affiant has read the same and that
the factual allegations therein are true
and correct of his own personal
knowledge or based on authentic
records and shall contain as annexes
the supporting documents.
What may be included in the annexes to
the pleadings?
 The annexes to the pleading, motion,
opposition, comment, defense or
claim filed by the proper party may
 include a legal brief duly verified by
the lawyer submitting it, stating the
pertinent facts, the applicable law
and jurisprudence to justify the
necessity for the court to rule upon
the issue raised.
Is a certification against forum shopping
required?
 Yes, a certification against forum
shopping shall be appended to all
initiatory pleadings except a motion
to refer the dispute to ADR.
 A CAFS is one made under oath by
the petitioner or movant: that he has
not theretofore commenced any
action or filed any claim involving
the same issues in any court, tribunal
or quasijudicial agency and, to the
best of his knowledge, no such other
action or claim is pending therein; if
there is such other pending action or
claim, a complete statement of the
present status thereof; and if he
should thereafter learn that the same
or similar action or claim has been
filed or is pending, he shall report
that fact within 5 days therefrom to
the court wherein his aforementioned
petition or motion has been filed.
What are the prohibited pleadings in the
cases governed by the special ADR rules?
 Motion to dismiss
 Motion for bill of particulars
 Motion for new trial or reopening of
trial
 Petition for relief from judgment
What are the prohibited pleadings in the
cases governed by the special ADR rules?
 Motion for extension, except in cases
where an exparty temporary order of
protection has been issued
 Rejoinder to reply
 Motion to declare a party in default
 Any other pleading specifically
disallowed under any provision of
the special ADR rules
Is the filing and service of pleadings by
electronic transmission allowed under the
ADR rules?
 Yes, filing and service of pleadings
by electronic transmission may be
allowed by the agreement of the
parties approved by the court. If the
filing or service of a pleading or
motion was done by electronic
transmission, proof of filing and
service shall be made in accordance
with the rules on electronic evidence.
Are the technical rules on service of
summons applicable to the proceedings
under the special ADR rules?
 No, the technical rules on service of
summons do not apply to the
proceedings under the special ADR
rules. In instances where the
respondent, whether a natural or a
juridical person, was not personally
served with a copy of the petition and
notice of hearing in the proceedings
contemplated in the first paragraph of
rule 1.3 (b), or the motion in
proceedings contemplated in the
second paragraph of rule 1.3 (B), the
method of service resorted to must be
such as to reasonably ensure receipt
thereof by the respondent to satisfy
the requirement of due process.
What are the required contents of the
petition?
 The initiatory pleading in the form of
a verified petition or motion, in the
appropriate case where court
proceedings have already
commenced, shall include the names
of the parties, their addresses, the
necessary allegations supporting the
petition and the relief(s) sought.
What is meant by “ADR laws”?
  ADR laws refer to the whole body of
ADR laws in the Philippines.
What are foreign arbitral awards?
 Foreign arbitral award is one made in
a country other than the Philippines.
agreement is the law between the
parties and that they are expected to
abide by it in good faith. • The courts
shall not refuse to refer parties to
arbitration for reasons including but
not limited to:

What rule will apply in situations wherein  Referral tends to oust the court of its
no specific rule is provided under the jurisdiction.
special ADR rules?
 In situations where no specific rule
 The court is in a better position to
under the special ADR rules, the
resolve the dispute subject of
court shall resolve such matter
arbitration.
summarily and be guided by the
spirit and intent of the special ADR
 The referral would result in
rules and the ADR laws.
multiplicity of suits.
What is the policy of the state regarding
ADR?  The arbitration proceeding has not
commenced.
 It is the policy of the state to actively
promote the use of various modes of
 The place of arbitration is in a
ADR ad to respect party autonomy or
foreign country.
the freedom of the parties to make
their own arrangements in the
resolution of disputes with the  One or more of the issues are legal
greatest cooperation of and the least and one or more of the arbitrators are
intervention from the courts. To this not lawyers.
end, the objectives of the special
ADR rules are to encourage and  One or more of the arbitrators are not
promote the use of ADR, particularly Philippine nationals.
arbitration and mediation, as an
important means to achieve speedy  One or more of the arbitrators are
and efficient resolution of disputes, alleged not to possess the required
impartial justice, curb a litigious qualification under the arbitration
culture and to de-clog court dockets. agreement or law.
What is meant by the phrase “The special
 The court shall exercise the power of
ADR rules recognize the Principle of
judicial review as provided by these
Competence-Competence”?
special ADR rules. Courts shall
intervene only in the cases allowed  It means that the arbitral tribunal may
bylaw or these special ADR rules. initially rule on its own jurisdiction,
What should the court do when the parties including any objections with respect
have agreed to submit their dispute to to the existence or validity of the
arbitration? arbitration agreement or any
condition precedent to the filing of a
 Courts shall refer the parties to request for arbitration.
arbitration pursuant to R.A. 9285
How is the competence-competence
bearing in mind that such arbitration
implemented?
  The arbitral tribunal shall be
accorded the first opportunity or
competence to rule on the issue of
whether it has the competence or
jurisdiction to decide a dispute
submitted to it for decision, including
any objection with respect to the
existence or validity of the arbitration
agreement. When a court is asked to
rule upon issue/s affecting the
competence of an arbitral tribunal in
a dispute brought before it, either
before or after the arbitral tribunal is
constituted, the court must exercise
judicial restraint and defer the
competence of the arbitral tribunal by
allowing the arbitral tribunal the first
opportunity to rule upon such issue.
Are the special ADR rules applicable to
court-annexed mediation?
 No, the special ADR rules do not
apply to court-annexed mediation,
which shall be governed by issuances
of the Supreme Court.
 Where the parties have agreed to
submit their dispute to mediation, a
court before which that dispute was
brought shall suspend the
proceedings and direct the parties to
submit their dispute to private
mediation. If the parties subsequently
agree, however, they may opt to have
their dispute settled through court-
annexed mediation.
May an arbitrator act as mediator?
 No, the arbitrator shall act as a
mediator in any proceeding in which
he is acting as arbitrator; and all
negotiations towards settlement of
the dispute must take place without
the presence of that arbitrator.
Conversely, no mediator shall act as
arbitrator in any proceeding in which
he acted as mediator.
May a settlement agreement be converted
as an arbitral award?
 Yes, where the parties to mediation
have agreed in the written settlement
agreement that the mediator shall
become the sole arbitrator for the
dispute or that the settlement
agreement shall become an arbitral
award, the sole arbitrator shall issue
the settlement agreement as an
arbitral award, which shall be subject
to enforcement under the law.
Who may file a petition to determine any
question concerning the existence, validity
and enforceability of arbitration
agreement?
 Any party to arbitration to an
arbitration agreement may petition
the appropriate court to determine
any question concerning the
existence, validity and enforceability
of such arbitration agreement serving
a copy thereof on the respondent in
accordance with rule 1.4.
When may the petition for judicial
determination of the existence, validity
and/or enforceability of an arbitration
agreement be filed?
 It may be filed at any time prior to
the commencement of arbitration.
 Despite the pendency of the petition
provided herein, arbitral proceedings
may nevertheless be commenced and
continue to the rendition of an award,
while the issue is pending before the
court.
Where is the filing of the said petition?
 Court of the place where any of the
petitioners or respondents has his
principal place of business or
residence
On what grounds may the petition be
granted?
  A petition may be granted only if it is
shown that the arbitration agreement
is, under the applicable law, invalid,
void, unenforceable or inexistent.
Is forum shopping allowed?
 No, a petition for judicial relief under
this rule may not be commenced
when the existence, validity or
enforceability of an arbitration
agreement has been raised as one of
the issues in a prior action before the
same or another court.
Who may file a petition for judicial relief
from the ruling of the arbitral tribunal on
a preliminary question upholding or
declining its jurisdiction?
 Any party to arbitration may petition
the appropriate court for judicial
relief from the ruling of the arbitral
tribunal on a preliminary question
upholding or declining its
jurisdiction. Should the ruling of the
arbitral tribunal declining its
jurisdiction be reversed by the court,
the parties shall be free to replace the
arbitrators or any one of them in
accordance with the rules that were
applicable for the appointment of
arbitrator sought to be replaced.
What is the period for filing the petition?
 Within 30 days after having received
notice of that ruling by the arbitral
tribunal.
Where the petition may be filed?
 Before the RTC of the place where
arbitration is taking place, or where
any of the petitioners or respondents
has his principal place of business or
residence.
On what grounds may the petition be
granted?
 The petition may be granted when
the court finds that the arbitration
agreement is invalid, inexistent or
unenforceable as a result of which
the tribunal has no jurisdiction to
resolve the dispute.
What are the required contents of the
petition?
 The facts showing that the person
named as petitioner or responded has
legal capacity to sue or be sued
 The nature and substance of the
dispute between the parties
 The grounds and the circumstances
relied upon by the petitioner
 The relief/s sought
 In addition to the submissions, the
petitioner shall attach to the petition a
copy of the request for arbitration
and the ruling of the arbitral tribunal
 The arbitrators shall be impleaded as
nominal parties to the case and shall
be notified of the progress of the case
May the court issue injunction over
arbitration proceedings?
 No, the court shall not enjoin the
arbitration proceedings during the
pendency of the petition • Judicial
recourse to the court shall not prevent
the arbitral tribunal from continuing
the proceedings and rendering its
award.
When is the dismissal of the petition
appropriate?
 The court shall dismiss the petition if
it fails to comply with Rule 3.16; or
if upon consideration of the grounds
alleged and the legal briefs submitted
by the parties, the petition does not
appear to be prima facie meritorious.
What is the remedy of the aggrieved party
on the order of the court?
 He may file a motion for
reconsideration of the order of the
court. The decision of the court shall,
however, not be subject to appeal.
The ruling of the court affirming the
arbitral tribunal’s jurisdiction shall
not be subject to a petition for
certiorari. The ruling of the court that
the arbitral tribunal has no
jurisdiction may be the subject of a
petition for certiorari.
Who may make a request to refer the
parties to arbitration?
 A party to a pending action filed in
violation of the arbitration
agreement, whether contained in an
arbitration clause or in a submission
agreement, may request the court to
refer the parties to arbitration in
accordance with such agreement.
When should the request be made?
 Where the arbitration exists before
the action is filed – the request for
referral shall be made not later than
the pretrial conference. After the pre-
trial conference, the court will only
act upon the request for referral if it
is made with the agreement of all
parties to the case.
 Submission agreement – if there is no
existing arbitration agreement at the
time the case is filed but the parties
subsequently enter into an arbitration
agreement, they may request the
court to refer their dispute to
arbitration at any time during the
proceedings.
Is the order referring the dispute to
arbitration subject to a motion for
reconsideration, appeal or petition for
certiorari?
 No, an order referring the dispute to
arbitration shall be immediately
executory.
What is the proper remedy to an order
denying the request to refer the dispute to
arbitration?
 An order denying the request to refer
the dispute to arbitration shall not be
subject to an appeal, but may be the
subject of a motion for
reconsideration and/or a petition for
certiorari.
Who may ask for interim measures of
protection?
 A party to an arbitration agreement
may petition the court for interim
measure of protection.
When is the filing of the petition for
interim measures of protection?
 A petition for an interim measure of
protection may be made: before
arbitration is commenced; after
arbitration is commenced but before
the constitution of the arbitral
tribunal; or after the constitution of
the arbitral tribunal and at any time
during arbitral proceedings but, at
this stage, only to the extent that the
arbitral tribunal has no power to act
or is unable to act effectively.
Where is the filing of the petition?
 May be filed with the RTC which has
jurisdiction over the principal place
of business of any of the parties to
arbitration; the residence of the
parties who are individuals; place
where any of the acts sought to be
enjoined are being performed,
threatened to be performed not being
performed; or place where the real
property subject of arbitration, or a
portion thereof is situated.
What are the grounds that the court may
consider in granting the relief?
  The need to prevent irreparable loss
or injury;
 The need to provide security for the
performance of any obligation;
 The need to produce or preserve
evidence; or
 The need to compel any other
appropriate act or omission.
What are the interim measures of
protection that a court may grant?
 Preliminary injunction directed
against a party to arbitration;
 Preliminary attachment against a
property or garnishment of funds in
the custody of a bank or a third
person;
 Appointment of a receiver;
 Detention, preservation, delivery or
inspection of property; or
 Assistance in the enforcement of an
interim measure of protection granted
by the arbitral tribunal, which the
latter cannot enforce effectively.
What should the respondent do if he wants
to lift the temporary order of protection?
 The respondent has the option of
having the temporary order of
protection lifted by posting an
appropriate counter-bond as
determined by court.
Is the order of the court giving respondent
an opportunity to be heard immediately
executory?
 Yes, if respondent was given an
opportunity to be heard on a petition
for an interim measure of protection,
any order by the court shall be
immediately executory, but may be
the subject of a motion for
reconsideration and/ or appeal or, if
warranted, a petition for certiorari.
RA 876 – ARBITRATION LAW
WHAT IS ARBITRATION?
 Arbitration has been defined under
the ADR Act as a voluntary dispute
resolution process in which one or
more arbitrators appointed in
accordance with the agreement of the
parties resolve a dispute by rendering
an award.
 It is a non-adversarial settlement
wherein the parties are free to choose
the arbitrators that will compose the
tribunal, the procedure to be followed
in the proceedings, the venue of
arbitration, and the substantive law
that will govern the proceedings.
Benefits of Arbitration
 Fast, quick and easy. The
number-one benefit of arbitration
is that it serves as a forum to
resolve disputes outside of the
judicial system. Arbitration can
be fast, quick and easy, whereas
lawsuits can drag on for years
and years. Since the rules of
evidence and procedure are
usually relaxed in arbitration
proceedings, the parties are also
in a better position to represent
them without having to get
lawyers involved.  
 Less expensive. It naturally
follows that arbitration also tends
to be less expensive than
pursuing a lawsuit. While the
parties will usually end up
having to pay the arbitrator, his
or her fees will inevitably be less
than the attorneys' fees that they
may have to pay to take the same
case to trial.
 Gives parties glimpse of where
things are headed. Even in non-
binding arbitration, a benefit can
be that it serves to bridge the gap
in an adversarial proceeding so
that the parties can get a better
glimpse of where things are
 headed if they are unable to
resolve their differences. Most
cases settle, but many times it is
not until the parties are "on the
courthouse steps." Non-binding
arbitration may help to facilitate
a settlement sooner rather than
later.
 Not bound by strict rules of
procedure. Another good thing
about arbitration is that an
arbitrator is typically not bound
by the strict rules of procedure in
reaching a decision. He or she
can consider a lot more facts and
circumstances than a judge or
jury. Arbitrators typically try to
be practical and oftentimes look
at compromise as being
inherently fair. Thus, the
likelihood is that an arbitrator's
decision will award something to
at least one of the parties.
However, you would not expect
that damages would be awarded
that were anywhere near what a
jury might have awarded if (and
that is a big if) the matter were to
have been tried before a jury.
 Brings finality. Arbitration can
also bring finality. Sometimes for
the better, a decision on a
binding arbitration cannot be
appealed or overturned in the
absence of a showing
of extraordinary circumstances
(for example, fraud, bias or other
inappropriate actions on the part
of the arbitrator). Thus, once a
decision is rendered, the case is
over. The losing party will
typically not be able to appeal
(which can make the matter drag
on for years and years).
 Privacy and confidentiality.
Unlike in court litigation, greater
confidentiality can be enjoyed by
the parties.
Policy to promote arbitration
 The constitution provides in Article
VIII section 5 par. 5 which mandates
the Supreme Court to promulgate
rules that shall provide a simplified
and inexpensive procedure for the
speedy disposition of cases.
Arbitration proceedings are designed
to level the playing field among the
parties in pursuit of mutually
acceptable solution to their
conflicting claims, and any
arrangements or scheme that would
give undue advantage to a party in
negotiating table is anathema to the
very purpose of arbitration and
should be resisted.
KINDS OF ARBITRATION
 Voluntary Arbitration
 Compulsory Arbitration
Voluntary arbitration
 Binding, adversarial dispute
resolution process in which the
disputing parties choose one or more
arbitrators to hear their dispute and to
render a final decision or award after
an expedited hearing
 Implies that the two contending
parties, unable to compromise their
differences by themselves or with the
help of mediator or conciliator, agree
to submit the conflict/ dispute to an
impartial authority, whose decisions
they are ready to accept. In other
words, under voluntary arbitration
the parties to the dispute can and do
they refer voluntarily and dispute to
arbitration before it is referred
for adjudication. This type of
reference is known as “voluntary
reference”, for the parties themselves
 volunteer to come to a settlement
though an arbitration machinery.
Essential elements in voluntary arbitration
 The voluntary submission of dispute
to an arbitrator.
 The subsequent attendance of
witnesses and investigations.
 The enforcement of an award may
not be necessary and binding because
there is no compulsion.
 Voluntary arbitration may be
specially needed for disputes arising
under agreements.
Compulsory arbitration
 Non-binding, adversarial dispute
resolution process in which one or
more arbitrators hear arguments,
weigh evidence and issue a non-
binding judgment on the merits after
an expedited hearing. The arbitrator's
decision addresses only the disputed
legal issues and applies legal
standards. Either party may reject the
ruling and request a trial de novo in
court.
 One where the parties are required to
accept arbitration without any
willingness on their part. When one
of the parties to an industrial dispute
feels aggrieved by an act of the other,
it may apply to the appropriate
government to refer the dispute to
adjudication machinery. Such
reference of a dispute is known as
“compulsory” or “involuntary”
reference, because reference in such
circumstances does not depend on
the sweet will of either the
contending parties or any party to the
dispute. It is entirely the discretion of
the appropriate govt. based on the
question of existing dispute, or on the
apprehension that industrial dispute
will emerge in particular
establishment.
 Parties are forced to arbitration by
the state when:
o The parties fail to arrive at a
settlement by a voluntary
method
o When there is a national
emergency which requires
that the wheels of production
should not be obstructed by
frequent work-stoppages
o The country is passing
through a grave economic
crisis
o There is a grave public
dissatisfaction with the
existing industrial relations
o Public interest and the
working conditions have to
be safeguarded and regulated
by the state.
Modes of arbitration
 Ad hoc arbitration. Philippine law
grants the parties the right to select
an arbitrator or arbitrators and to
choose procedures to govern the
proceedings, including rules of
arbitration institutions. So long as the
main requirement for arbitration,
namely consent, is present, the State
allows the parties to conduct the
arbitration in any manner they
stipulate, provided that the arbitration
process is not "contrary to law,
morals, good customs, public order
or public policy."
 Institutionalized arbitration. It is
conducted through organized bodies
such as courts of  arbitration, trade
associations, and arbitration centers
and institutes, each prescribing its
own different arbitration procedure.
Foremost among these institutions in
the Philippines is the Philippine
Dispute Resolution Center Inc.
 ("PDRCI"). These institutions do not
actually participate in settling the
dispute but help administer the
arbitration and provide a set of rules
to govern the proceedings.
For international arbitration, the
popular institutional rules referred to
are those of the International
Chamber of Commerce ("ICC"), the
Hongkong International Arbitration
Centre ("HKIAC") and the Singapore
International Arbitration Centre
("SIAC").
 Specialized arbitration. It involves
particular industries or kinds of
disputes.
For example, banking disputes on
check clearing are resolved by a
specialized system administered
under the auspices of the Bankers'
Association of the Philippines. In the
construction industry, the
Construction Industry Arbitration
Commission (“CIAC”) was created
in 1985 by Executive Order No. 1008
("E.O. No. 1008") in recognition of
the need for technical expertise to
resolve various factual questions in
construction disputes. Subject to the
agreement of the parties to submit the
dispute to voluntary arbitration, the
CIAC was given original and
exclusive jurisdiction over all
construction disputes. Indeed, so
comprehensive is the jurisdiction of
the CIAC over construction
controversies, that it has been
decreed 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
CIAC, such that, even if they
specifically choose another forum,
the parties will not be precluded from
electing to submit their dispute
before the CIAC because this right
has been vested upon each party by
law.” (This ruling could be
reconsidered in the light of the New
York Convention to enforce the
international arbitration agreements
between parties of different
nationalities made within a
contracting state.) As such, the CIAC
has become one of the premier
specialized arbitration institutions in
the Philippines.
FORMS OF ARBITRATION AGREEMENT
Requisites
 Section 4 RA 876
o It shall be in writing
o Subscribed by the party
sought to be charged or by
his lawful agent
Who may be parties?
 Two or more persons or parties to
any controversy existing between
them at the time of submission which
may be the subject of an action b.
Parties to a contract with an
agreement in such contract to settle
by arbitration any controversy
thereafter arising between them.
Exception
 One of the parties to the controversy
is:
o Infant
o Person judicially declared to
be incompetent
Exception to exception
 Submission to controversy was made
by a general guardian or guardian
adlitem of the infant or  incompetent
and court approved such petition for
permission to submit to arbitration
MATTERS THAT ARE SUBJECT TO
ARBITRATION
 Controversy arising from contract
with arbitration clause

 Any controversy between two or
more persons which may be the
subject of an action
 Includes valuation, appraisals or
other controversies which may be
collateral, incidental, precedent,
subsequent to any issue between the
parties.
Exception
 Cases subject to jurisdiction of CIR
(Court of Industrial Relations)
Institution of Arbitration of a dispute how
made
 In case of a contract to arbitrate
future controversies. By the service
of the other party upon the other of a
demand for arbitration in accordance
with the contract (in person or by
registered mail).
o Contents of demand
 Nature of
controversy
 Amount involved
 Relief sought
 True copy of the
contract providing
for arbitration
In case the contract between the
parties provides for appointment of a
single arbitrator – demand shall set
forth a specific time within which the
parties shall agree upon such
arbitrator  In case the contract
between the parties provides for the
appointment of three arbitrators, one
to be selected by each party –
demand shall name the arbitrator
appointed by the party making the
demand and shall require that the
party upon whom the demand is
made shall within fifteen days after
the receipt thereof advise in writing
the party making such demand of the
name of the person appointed by the
second party. Two arbitrators shall
appoint the third within 10 days form
such date or notice.
 In case of an existing controversy
to be submitted to arbitration. By
filing with the clerk of court of CFI
having jurisdiction of the submission
agreement – setting forth nature of
cont, amount involved. – may be
filed by any party.
Procedure in administered arbitration
If in the contract for arbitration or in the
submission to arbitration, a provision is made
for a method of naming or appointing an
arbitrator or arbitrators – such method shall
be followed. Otherwise, the CFI shall
designate an arbitrator or arbitrators.
The CFI shall appoint an arbitrator or
arbitrators in the following instances:
 If the parties are unable to agree
upon a single arbitrator 
 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
 If either party to the contract fails or
refuses to name his arbitrator within
15 days after receipt of  the demand
for arbitration
 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 
 Where the agreement is silent as to
number of arbitrators in the
preceding cases, the court shall
appoint the third arbitrator
  Arbitrators appointed under this
section shall either accept or decline
their appointments within seven days
of the receipts of their appointments.
In case of declination or the failure of
arbitrators to duly accept their
appointment the parties or court shall
appoint their substitute.
Special proceeding to compel arbitration
In the event that one party defaults in
answering the demand – aggrieved party may
file with the clerk of court of CFI having
jurisdiction over the parties a copy of the
demand for arbitration under the contract to
arbitrate with a notice that the original
demand was sent by registered mail or
delivered in person to the party against whom
the claim is asserted.
Demand shall set forth:
 Nature of controversy
 Amount involved
 Relief sought
 Attach true copy of the contract
providing for arbitration
 Attach true copy of the contract
providing for arbitration
Remedy for failure or refusal to arbitrate
 In the event that one party neglects,
fails or refuses to arbitrate under a
submission agreement – the
aggrieved party shall serve the other
by a demand for arbitration and in
case of default file a copy with the
clerk of court.
When court may be involved
Sec 6 – Failure, neglect or refusal of another
to perform under an agreement un writing
providing for arbitration gives a right to the
aggrieved party to petition the court for an
order directing that such arbitration may
proceed in the manner set forth in the
agreement.
 5-day notice of the hearing of such
application shall be served to the
party in default.
 Court shall hear the parties
 Court shall order the parties to
proceed to arbitration upon being
satisfied that the making of the
agreement is not an issue
 If the making of the agreement is in
issue, court shall summarily hear
such issue
 If the finding is that there is no
written arbitration agreement – court
shall dismiss the proceeding
 Court has 10 days to resolve motions,
petitions heard by it.
ENFORCEMENT OF ARBITRATION
AGREEMENT
 Sec 4 par 2 of RA 876 provides that
the making of the contract or
submission for arbitration of any
controversy shall be deemed a
consent of the parties to the
jurisdiction of the Court of First
Instance of the province or City
where any of the parties resides, to
enforce such contract or submission.
Existence of arbitration agreement
 In case of a suit arising out of an
agreement with arbitration clause, the
court in which the suit is pending,
upon being satisfied that the suit is
referable to arbitration shall stay the
action or proceeding until an
arbitration has been had.
 Provided: the applicant for stay is not
in default in arbitration proceeding.
 Toyota Motor Philippines Corp. r.
Court of Appeals, G.R. No. 102881,
Dec. 7, 1992, 216 SCRA 236.
  Teresita V. Idolor v. Court of
Appeals, et al., G.R. No. 141853,
February 7, 2002
 China Chiang Jiang Energy Corp. v.
Court of Appeals, et al., G.R. No.
125706, Sept. 30, 1996;
 National Irrigation Administration v.
Court of Appeals, CIAC, et al., G.R.
No. 129169, Nov. 17, 1999, 318
SCRA 255, 268
ALTERNATIVE DISPUTES RESOLUTION
REVIEWER
SECTION 2 – PERSONS AND MATTERS
SUBJECT TO ARBITRATION
Who may submit matters to arbitrators?
 Two or more persons where any
controversy exist between them
which may be the subject of an
action or a controversy in a contract.
 The parties to any contract may in
such contract agree to settle by
arbitration a controversy thereafter
arising between them.
 Ex. There is an arbitration clause in
said contract
The submission or contract may include
question arising out of what?
 Valuation
 Appraisal
 Other controversies which may be
collateral, incidental, precedent or
subsequent to any issue between the
parties
When a controversy cannot be arbitrated?
 Where one of the parties is a:
o Infant
o Judicially declared to be
incompetent, unless
petitioned by the guardian or
guardian ad litem and
approved by a court having
jurisdiction
Where a person capable of entering into a
submission or contract has knowingly
entered into the same with a person
incapable of so doing, may the former
object on the ground of incapacity?
 No. The incapacity can be taken only
in behalf of the person so
incapacitated.
SECTION 3 – CONTROVERSIES OR
CASES NOT SUBJECT TO THE
PROVISIONS OF THIS ACT
What are controversies or cases not
subject to the provisions of this Act?
Controversies and to cases which are subject
to the jurisdiction of the NLRC.
SECTION 4 – FORM OF ARBITRATION
AGREEMENT
What is the form of arbitration
agreement?
 In writing and subscribed by the
party sought to be charged, or by his
lawful agent.
What shall be deemed the making of a
contract or submission for arbitration
described in section two providing for
arbitration of any controversy?
 Consent of the parties to the
jurisdiction of the R.T.C. of the
province or city where any of the
parties resides, to enforce such
contract or submission.
SECTION 5 – PRELIMINARY
PROCEDURE
(A) In the case of a contract to arbitrate
future controversies by the service by
either party upon the other of a demand
for arbitration in accordance with the
contract, how shall such demand be set
forth?
Such demand shall be set forth:
 Nature of the controversy;
 Amount involved;
 Relief sought, together with the
 True copy of the contract providing
for arbitration. The demand shall be
either in person or by registered mail.
In the event that the contract between the
parties provides for the appointment of a
single arbitrator, how shall such demand
be set forth?
 The demand shall be set forth a
specific time within which the parties
shall agree upon such arbitrator.
If the contract between the parties
provides for the appointment of three
arbitrators, one to be selected by each
party, the demand shall state what?
 Name the arbitrator appointed by the
party making the demand; and
 Shall require that the party upon
whom the demand is made shall
within fifteen days after receipt
advise in writing the party making
such demand of the name of the
person appointed by the second
party;
 Such notice shall require that the two
arbitrators so appointed must agree
upon the third arbitrator within ten
days from the date of such notice.
(B) In the event that one party defaults in
answering the demand, what is the remedy
of the aggrieved party?
 File with the Clerk of the R.T.C.
having jurisdiction over the parties, a
copy of the demand for arbitration
under the contract to arbitrate, with a
notice that the original demand was
sent by registered mail or delivered
in person to the party against whom
the claim is asserted.
(C) In the case of the submission of an
existing controversy by the filing with the
Clerk of the Court of First Instance having
jurisdiction, of the submission agreement,
setting forth the nature of the controversy,
and the amount involved, if any. Such
submission may be filed by any party and
shall be duly executed by both parties.
(D) In the event that one party neglects, fails
or refuses to arbitrate under a submission
agreement, the aggrieved party shall follow
the procedure prescribed in subparagraphs (a)
and (b) of this section.
SECTION 6 – HEARING BY COURT
A party aggrieved by the failure, neglect or
refusal of another to perform under an
agreement in writing providing for
arbitration may do what?
 Petition the court for an order
directing that such arbitration
proceed in the manner provided for
in such agreement.
How many days after notice of hearing of
such application shall be served either
personally or by registered mail upon the
party in default before?
 5 days
The court shall hear the parties, shall
make an order directing the parties to
proceed to arbitration in accordance with
the terms of the agreement after what
condition?
 Upon being satisfied that the making
of the agreement or such failure to
comply therewith is not in issue.
When shall the court not submit the
matter to arbitration but proceed to
summarily hear the issue?
  If the making of the agreement or
default be in issue.
When shall the proceeding be dismissed by
the court upon petition for arbitration?
 When the court finds that no
agreement in writing providing for
arbitration was made, or that there is
no default in the proceeding
thereunder.
The court shall decide all motions,
petitions or applications filed under the
provisions of this Act, within how many
days after such motions, petitions, or
applications have been heard by it?
 10 days
SECTION 7 – STAY OF CIVIL ACTION
What shall the court do if any suit or
proceeding be brought upon an issue
arising out of an agreement providing for
the arbitration thereof, the court in which
such suit or proceeding is pending, upon
being satisfied that the issue involved in
such suit or proceeding is referable to
arbitration?
 The court shall stay the action or
proceeding until an arbitration has
been had in accordance with the
terms of the agreement: Provided,
that the applicant, for the stay is not
in default in proceeding with such
arbitration.
SECTION 8 – APPOINTMENT OF
ARBITRATORS
When will the R.T.C. shall appoint an
arbitrator or arbitrators in the following
instances?
The R.T.C. shall appoint an arbitrator or
arbitrators, in the following instances:
 Unable to agree upon a single
arbitrator; or
 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; or
 If either party to the contract fails or
refuses to name his arbitrator within
fifteen days after receipt of the
demand for arbitration; or
 If the arbitrators shall fail to agree
upon or to select the third arbitrator.
 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.
 In case of arbitrator declines, the
court shall proceed to appoint a
substitute or substitutes for the
arbitrator or arbitrators who decline
or failed to accept his or their
appointments.
SECTION 9 – APPOINTMENT OF
ADDITIONAL ARBITRATORS
Where a submission or contract provides
that two or more arbitrators therein
designated or to be thereafter appointed
by the parties, may select or appoint a
person as an additional arbitrator, the
selection or appointment must be in what?
 In writing
SECTION 10 – QUALIFICATIONS OF
ARBITRATORS
Qualifications of arbitrators
 Legal age;
 Full-enjoyment of his civil rights;
and
 Know how to read and write.
Disqualifications of arbitrators (Reasons
for challenge)
 Related by blood or marriage within
the sixth degree to either party to the
controversy.
 Financial, fiduciary or other interest
in the controversy or cause to be
decided or in the result of the
proceeding,
 Personal bias, which might prejudice
the right of any party to a fair and
impartial award.
Who shall no party select as an arbitrator?
 Any person to act as his champion or
to advocate his cause
If, after appointment but before or during
hearing, a person appointed to serve as an
arbitrator shall discover any
circumstances likely to create a within the same city or province, or
presumption of bias, or which he believes
might disqualify him as an impartial
arbitrator, the arbitrator shall
immediately do what? The parties shall do
what thereafter?
Disclose such information to the parties.
Thereafter the parties may agree in writing:
 Waive the presumptive disqualifying
circumstances; or
 To declare the office of such
arbitrator vacant. Any such vacancy
shall be filled in the same manner as
the original appointment was made.
SECTION 11 – CHALLENGE OF
ARBITRATORS
If the arbitrators do not yield to the
challenge, the challenging party has what
remedy?
 Renew the challenge before the
R.T.C. of the province or city in
which the challenged arbitrator, or,
any of them, if there be more than
one, resides.
While the challenging incident is
discussed before the court, what
happens to the hearing or arbitration?
 The hearing or arbitration shall be
suspended, and it shall be continued
immediately after the court has
delivered an order on the challenging
incident.
SECTION 11 – PROCEDURE BY
ARBITRATORS
Subject to the terms of the submission or
contract, if any are specified therein, what
must arbitrators selected as prescribed
do?
 Within five days after appointment if
the parties to the controversy reside
within fifteen days after appointment
if the parties reside in different
provinces, set a time and place for
the hearing of the matters submitted
to them, and must cause notice
thereof to be given to each of the
parties.
The hearing can be postponed or
adjourned by the arbitrators only by what
condition?
 Agreement of the parties; otherwise,
adjournment may be ordered by the
arbitrators upon their own motion
only at the hearing and for good and
sufficient cause.
General rule
 No adjournment shall extend the
hearing beyond the day fixed in the
submission or contract for rendering
the award
Exceptions
  Time so fixed is extended by the
written agreement of the parties to
the submission or contract or their
attorneys
 Parties have continued with the
arbitration without objection to such
adjournment.
True or False: The hearing may proceed in
the absence of any party who, after due
notice, fails to be present at such hearing
or fails to obtain an adjournment thereof.
 True
True or False: An award shall be made
solely on the default of a party.
 False
Who shall be permitted by the arbitrators
to represent before him or them any party
to the arbitration?
 Party to said arbitration, or
 Person in the regular employ of such
party duly authorized in writing by
said party, or
 Practicing attorney-at-law
Any party desiring to be represented by
counsel is required to do what?
 Notify the other party or parties of
such intention at least five days prior
to the hearing
True or False: Persons having a direct
interest in the controversy which is the
subject of arbitration shall have the right
to attend any hearing; but the attendance
of any other person shall be at the
discretion of the arbitrators.
 True
SECTION 13 – OATH OF ARBITRATORS
Before hearing any testimony, arbitrators
must be what?
 Sworn, by any officer authorized by
law to administer an oath.
Arbitrators shall have the power to
administer the oaths to whom?
 All witnesses requiring them to tell
the whole truth and nothing but the
truth in any testimony which they
may give in any arbitration hearing.
This oath shall be required of every
witness before any of his testimony is
heard.
SECTION 14 – SUBPOENA AND
SUBPOENA DUCES TECUM
General rule
 An award by the majority of the
arbitrators is valid.
Exception
 Concurrence of all of them is
expressly required in the submission
or contract to arbitrate.
SECTION 15 – HEARING BY
ARBITRATORS
Arbitrators may, at the commencement of
the hearing, ask both parties for what?
 For brief statements of the issues in
controversy and/or an agreed
statement of facts. Thereafter the
parties may offer such evidence as
they desire, and shall produce such
additional evidence as the arbitrators
shall require or deem necessary to an
understanding and determination of
the dispute.
True or False: The arbitrators shall be
bound to conform to the Rules of Court
pertaining to evidence.
 False
All exhibits shall remain in the custody of
whom during the course of the arbitration
and shall be returned to the parties at the
time the award is made?
 Clerk of Court
The arbitrators may make an ocular
inspection of any matter or premises which
are in dispute, but such inspection shall be
made only under what condition?
 In the presence of all parties to the
arbitration Exception? Unless any
party who shall have received notice
thereof fails to appear, in which
event such inspection shall be made
in the absence of such party.
SECTION 16 – BRIEF
At the close of the hearings, the arbitrators
shall do what?
 Specifically inquire of all parties
whether they have any further proof
or witnesses to present; upon the
receipt of a negative reply from all
parties, the arbitrators shall declare
the hearing closed unless the parties
have signified an intention to file
briefs.
When shall the briefs be filed?
 Briefs may filed by the parties within
fifteen days after the close of the oral
hearings; the reply briefs, if any,
shall be filed within five days
following such fifteen-day period.
SECTION 17 – REOPENING OF
HEARING
When shall the hearing be reopened?
 Upon good cause, shown at any time
before the award is rendered.
SECTION 18 – PROCEEDING IN LIEU OF
HEARING
 They may also submit their
respective contentions to the duly
appointed arbitrators in writing; this
shall include a statement of facts,
together with all documentary proof.
 Parties may also submit a written
argument. Each party shall provide
all other parties to the dispute with a
copy of all statements and documents
submitted to the arbitrators. Each
party shall have an opportunity to
reply in writing to any other party's
statements and proofs
Each party shall have an opportunity to
reply in writing to any other party's
statements and proofs; but if such party
fails to do so within seven days after
receipt of such statements and proofs, he
shall be deemed what?
 Waived his right to reply
SECTION 19 – TIME FOR RENDERING
AWARD
General rule
 The written award of the arbitrators
shall be rendered within 30 days after
the closing of the hearings or if the
oral hearings shall have been waived,
within 30 days after the arbitrators
shall have declared such proceedings
in lieu of hearing closed. This period
may be extended by mutual consent
of the parties.
Exception
 Unless the parties shall have
stipulated by written agreement the
time within which the arbitrators
must render their award.
SECTION 20 – FORM AND CONTENTS
OF AWARD
The award must be made how?
 In writing and signed and
acknowledged by a majority of the
arbitrators, if more than one; and by
the sole arbitrator, if there is only
one.
In the event that the parties to arbitration
have, during the course of such
arbitration, settled their dispute, they may
request of the arbitrators to do what?
 That such settlement be embodied in
an award which shall be signed by
the arbitrators. No arbitrator shall act
as a mediator in any proceeding in
which he is acting as arbitrator; and
all negotiations towards settlement of
the dispute must take place without
the presence of the arbitrators.
True or False: The arbitrators shall have
the power to decide only those matters
which have been submitted to them. The
terms of the award shall be confined to
such disputes.
 True
When shall the arbitrators have the power
to assess in their award the expenses of any
party against another party?
 When such assessment shall be
deemed necessary.
SECTION 22 – ARBITRATION DEEMED
A SPECIAL PROCEEDING
What is the implication of an arbitration
being deemed as a special proceeding?
 The court specified in the contract or
submission, or if none be specified,
the R.T.C. for the province or city in
which one of the parties resides or is
doing business, or in which the
arbitration was held, shall have
jurisdiction.
SECTION 23 – CONFIRMATION OF
AWARD
After the award is made, until when shall
any party to the controversy which was
arbitrated may apply to the court having
jurisdiction, as provided in section twenty-
eight, for an order confirming the award?
 At any time within one month
SECTION 24 – GROUNDS FOR
VACATING AWARD
Grounds (Acronym: MiPaCoPo)
 The award was procured by
COrruption, fraud, or other undue
means; or
 That there was evident PArtiality or
corruption in the arbitrators or any of
them; or
 That the arbitrators were guilty of
MIsconduct in refusing to
o Postpone the hearing upon
sufficient cause shown, or in
refusing to
o Hear evidence pertinent and
material to the controversy;
that one or more of the
arbitrators was
o Disqualified to act as such
under section nine hereof,
and wilfully refrained from
disclosing such
disqualifications or of any
other misbehavior by which
the rights of any party have
been materially prejudiced;
or
 o That the arbitrators exceeded
their POwers, or so
imperfectly executed them,
that a mutual, final and
definite award upon the
subject matter submitted to
them was not made.
True or False: Where an award is vacated,
the court, in its discretion, may direct a
new hearing either before the same
arbitrators and never before a new
arbitrator or arbitrators.
 False
 Or before a new arbitrator or
arbitrators to be chosen in the manner
provided in the submission or
contract for the selection of the
original arbitrator or arbitrators, and
any provision limiting the time in
which the arbitrators may make a
decision shall be deemed applicable
to the new arbitration and to
commence from the date of the
court's order.
SECTION 25 – GROUNDS FOR
MODIFYING OR CORRECTING AWARD
Acronym: ImMaMi
 Evident MIscalculation of figures, or
an evident mistake in the description
of any person, thing or property
referred to in the award; or
 Where the arbitrators have awarded
upon a MAtter not submitted to
them, not affecting the merits of the
decision upon the matter submitted;
or
 Where the award is IMperfect in a
matter of form not affecting the
merits of the controversy, and if it
had been a commissioner's report, the
defect could have been amended or
disregarded by the court.
SECTION 26 – MOTION TO VACATE,
MODIFY, OR CORRECT AWARD: WHEN
MADE
Notice of a motion to vacate, modify or
correct the award must be served upon the
adverse party or his counsel w/n how
many days?
 Within 30 after award is filed or
delivered, as prescribed by law for
the service upon an attorney in an
action.
SECTION 28 – PAPERS TO ACCOMPANY
MOTION TO CONFIRM, MODIFY,
CORRECT, OR VACATE AWARD
 The submission, or contract to
arbitrate; the appointment of the
arbitrator or arbitrators; and each
written extension of the time, if any,
within which to make the award.
 A verified copy of the award.
 Each notice, affidavit, or other paper
used upon the application to
confirm, modify, correct or vacate
such award, and a copy of each of
the court upon such application.
SECTION 29 – APPEALS
How may an appeal be taken from an
order made in a proceeding under this Act,
or from a judgment entered upon an
award?
 Petition for certiorari
Appeals shall be limited to what?
 Questions of law
The proceedings upon such an appeal,
including the judgment thereon shall be
governed by what?
  Rules of Court in so far as they
applicable

SECTION 30 – DEATH OF PARTY

Where a party dies after making a

submission or a contract to arbitrate, what
happens to the proceedings?
 The proceedings may be begun or
continued upon the application of, or
notice to, his executor or
administrator, or temporary
administrator of his estate. In any
such case, the court may issue an
order extending the time within
which notice of a motion to confirm,
vacate, modify or correct an award
must be served.
Upon confirming an award, where a party
has died since it was filed or delivered, the
court must enter judgment in the name of
whom?
 Name of the original party; and the
proceedings thereupon are the same
as where a party dies after a verdict.