CHAPTER 8: SPECIAL RULES OF COURT ON
SPECIAL ADR RULES)
ALTERNATIVE DISPUTE RESOLUTION
GENERAL PROVISION
 ADR act of 2004, RA876, the Model Law, and the IRR of
ADR Act, deferred to the SC’s authority to enact special
rules of procedure applicable in courts for specific areas
and aspects of ADR.
 Other sources of ADR rules are not the source of the
authority of the SC to enact the special rules on ADR.
 Under the Constitution, the SC has the exclusive power and
authority to promulgate rules of practice and procedure
subject to the constitution that they shall not diminish,
increase or modify substantive rights.
ART. VIII, SEC 5 of CONSTI:
o Promulgate rules concerning the protection and
enforcement of constitutional rights, pleading,
practice and procedure in all courts, the
admission to the practice of law, the integrated
bar, and legal assistance to the under-privileged.
Such rules shall provide a simplified and
inexpensive procedure for the speedy disposition
of cases, shall be uniform for all courts of the
same grade, and shall not diminish, increase, or
modify substantive rights. x x
SUBJECT MATTER AND COVERAGE
The special rules on ADR govern the following process and
proceedings:
(RRI-ACT-AC2R-CD)
1. Relief on the issue of existence, validity and enforceability
of the arbitration agreement;
2. Referral to ADR;
3. Interim measures of protection;
4. Appointment of arbitrator;
5. Challenge to appointment of arbitrator;
6. Termination of mandate of arbitrator;
7. Assistance in taking evidence;
8. Confirmation, correction or vacation of award in domestic
arbitration;
9. Recognition and enforcement or setting-aside of an award
in ICA;
10. Recognition and enforcement of foreign arbitral award;
11. Confidentiality or protective orders; and
12. Deposit and enforcement of mediated settlement
agreements
NOTE:
 The foregoing specific reliefs are applicable ONLY to
DOMESTIC arbitration and Philippine ICA,
EXCPTN:
1. Referral to ADR,
2. Assistance in taking evidence and
3. Recognition of the arbitral award are applicable
also to foreign arbitration, including foreign ICA.
 The foregoing proceedings under the special ADR rules are
summary in nature.
EXCEPT:
1. Those pertain to the confirmation or recognition
and enforcement of arbitral awards, whether
domestic, ICA; or foreign which are non-
summary proceedings; and
2. The deposit of mediated settlement agreements,
which is not a judicial proceeding.
SPECIAL PROCEEDINGS
(RULE 1.2.
 Except for the deposit of mediated settlement
agreements, the foregoing procedures are “special
proceedings.
 As such, jurisdiction over the persons of the parties is
acquired by the court, not through the service of
summons, but upon proof of compliance wit the
jurisdictional requirements, i.e., that the respondent was
furnished a copy of the petition.’
o The petitioner is required to serve copies of the
petition beta the respondent before it is filed in
court.
 Service of the petition shall be made through personal
service or by courier proof of which shall be attached to
the petition.”
SUMMARY PROCEEDINGS
(RULE 1.3. SPECIAL ADR RULES)
 GR: Summary Proceeding
o Conducted by way of submission of verified
pleadings, affidavits, and supporting documents
 EXCPTN:
1. Confirmation, recognition and enforcement of
arbitral awards
 generally non-summary
2. Deposit of mediated settlement agreements
 not a judicial proceeding.
As a consequence of summary nature, the ff. petitions or motions
are not allowed and shall not be accepted for filing, and if
inadvertently accepted, should be expunged from the records of the
case:
(DBN-RER-DA)
1. Motion to dismiss (any ground for a motion to dismiss
must be pleaded in the answer to opposition to the petition
or motion);
2. Motion for bill of particulars;
3. Motion for new trial OR for reopening of trial;
4. Petition for relief of judgment;
5. Motion for extension, except in cases where an ex parte
TRO of protection has been issued (in which case the
adverse party is amply protected from any delay that may
be caused by the extension)
6. Rejoinder to reply (the reply is the last pleading to be
filed)
7. Motion to declare a party in default
8. Any other pleading specifically disallowed under any
provision of the Special ADR rules.
NON-SUMMARY PROCEEDINGS
What are the proceedings under the special ADR rules, which are
in general non-summary?
They are the following: (CRR)
1. Confirmation, correction or vacation of award in domestic
arbitration;
2. Recognition and enforcement of an award in an ICA; and
3. Recognition and enforcement of a foreign arbitral award.
NOTES:
 Rules on the service of summons ordinarily applicable to
regular court proceedings only, not to Special ADR Rules.
 SAR requires non-summary proceeding;
o where initiatory pleading is filed directly with
the court which in turn will serve the copy
 thereof to the respondent by personal service or
courier.
o If the court action is already pending, the
initiatory pleading or motion shall be served by
personal service or courier service upon the
respondent before it is filed in court.
o In the event that courier service is not available,
resort may be had to service by registered mail.
o SAR also allows filing and service of pleading by
electronic means through agreement of the
parties.
JURISDICTION AND VENUE
Where is the jurisdiction lodged over any of the proceedings
covered by SAR?
 Regional Trial Courts.
 On the other hand, the venue is, generally, either:
o Place where any of the Party Resides or his
business; or
o Place where the Asset Or Act Involved Is
Located; Or
o At the National Capital Judicial Region, at the
choice of the petitioner.
FUNDAMENTAL PRINCIPLES ADOPTED BY THE SAR
(RULES 2.1 to 2.7, SAR)
The special rules took into account the following fundamental,
principles and objectives of ADR: *****
(SPD-FCN)
1. Self-determination, party autonomy and promotion of
ADR as means of resolving disputes
 Adopted the objective of ADR of achieving for a
speedy and efficient resolution of disputes,
impartial justice, curbing a litigation and to
declogging court dockets.
2. Preference for Arbitration.
 SAR requires courts to refer to arbitration
parties who have agreed to submit their disputes
to arbitration and
 precludes courts from refusing the referral for
any of the following and similar reasons: (RCR-
AP3O)
I. Referral tends to oust the court of its
jurisdiction;
II. Court is in better position to resolve
the dispute subject of arbitration;
III. Referral would result to multiplicity of
suits;
IV. Arbitration proceeding has not
commenced
V. Place of arbitration is in foreign
country;
VI. One or more of the issues are legal and
one or more arbitrators are not
lawyers;
VII. One or more of arbitrators are not
Philippine nationals;
VIII. One or more of the arbitrators are
alleged not to possess the required
qualification under the arbitration
agreement of law
3. Doctrine of separability/severability
 Arbitration clause is an agreement independent
of the contract; and
 a decision that the contract is null and void
shall not entail ipso jure invalidity of the
arbitration clause.
4. Freedom to agree on the procedure to be followed in the
conduct of arbitral proceedings
 only in the absence of an agreement may the
arbitral tribunal conduct arbitration in the manner
it considers appropriate
5. Competence-competence principle
 Arbitral tribunal shall be accorded the first
opportunity or competence to rule on the issue
whether or not it has 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
6. No arbitrator shall act as mediator in any proceeding in
which he is acting as arbitrator and vice versa.
EXCPTN:
 The parties to mediation have agreed in the
written settlement agreement that the mediator
shall become the sole arbitrator for dispute; or
 that the settlement agreement shall become an
arbitral award,
 the mediator-arbitrator shall issue the
settlement agreement as an arbitral award which
shall be subject to enforcement under the law.
SPECIAL RULES Of Court
On ALTERNATIVE Dispute RESOLUTION
— The Specific Court Reliefs —
THE SPECIFIC COURT RELIEFS
A. Judicial Relief Involving the Issues of Existence,
Validity and Enforceability of the
Arbitration Agreement
(Rules 3.1 to 3.22, Special ADR Rules)
Judicial relief referred to in Rule 3 of the SAR is a petition for
judicial determination of the existence, validity, and/or enforceability
of an arbitration agreement.
Issues involve are: (EVE)
1. Existence of Arbitration Agreement
2. Validity of Arbitration Agreement
 pertains to essential requisites for a valid contract
3. Enforceability of Arbitration Agreement
 In accordance w/ ART. 1403 of CC
 Proceedings are summary in nature and applicable only to
arbitration conducted in the Philippines.
 The duty of the court is not to resolve the merits of the parties’
claims but only to determine whether to proceed to
arbitration or not.
CLASSIFICATION OF JUDICIAL RELIEF:
1. BEFORE Commencement of Arbitration (Rule 3.2 –
3.11)
Following circumstances must be present:
 I. Arbitration proceeding has not yet commenced;
and
II. Dispute between the parties involves the
existence, validity or enforceability of the
arbitration agreement.
2. AFTER commencement of Arbitration (Rule 3.12 –
3.22)
I. Arbitration proceeding has already commenced,
the arbitral tribunal has been constituted and has
rendered a preliminary ruling on its jurisdiction;
and
II. A party desires to challenge the arbitral tribunal’s
ruling on the issue of jurisdiction
PROCEDURAL RULES:
BEFORE Commencement of Arbitration (Rule 3.2 – 3.11)
PETITION
• Filed before RTC where any of the party resides or has
his principal place of business.
• It should state:
1. Legal capacity to sue and be sued;
2. Nature and substance of the dispute; and
3. Grounds and circumstances relied upon, and
4. Relief sought.
• Must be verified and accompanied by Cert. of non-
forum shopping.
• Authentic copy of the arbitration agreement
• Service of copy to the respondent before filing in
court.
• Proof of service shall be attached to the petition filed in
court.
NOTE: Filing of the petition does not prevent the
commencement of the arbitration, or the continuation thereof
and the rendition of an award therein. (Rule 3.3)
COMMENT/OPPOSITION
• Within fifteen (15) days from service of the petition.
COURT ACTION
• Must exercise judicial restraint and defer to the
competence or jurisdiction of the arbitral tribunal to rule
on its competence and jurisdiction.
• Competence-competence principle
− instructs that the arbitral tribunal should be
accorded the first opportunity or competence to
rule on the issue of whether or not it has the
competence or jurisdiction to decide a dispute
submitted to it for decision
RELIEF AGAINST COURT ACTION
• Determination of the court on upholding the
existence, validity or enforceability of the arbitration
agreement is merely prima facie.
• Not subject to MR, appeal, or certiorari.
• Without prejudice to the right of any party to:
 raise the same issues before the arbitral tribunal
or
 the court in a petition to vacate or set aside the
arbitral award.
• In the latter case, the court’s review of the arbitral
tribunal’s ruling upholding the existence, validity, or
enforceability of the arbitration agreement shall no
longer be limited to a mere prima facie determination
of such issue or issues as prescribed in this Rule, but
shall be a full review of such issue or issues with due
regard, however, to the standard for review for arbitral
awards prescribed in these Special ADR Rules.
• Denial of existence, validity or enforceability, then it is
subject to MR, or Certiorari under Special ADR
Rules.
AFTER commencement of Arbitration (Rule 3.12 – 3.22)
Proper Issue
 After the commencement of the arbitration and the
constitution of the arbitral tribunal, and after the tribunal
has rendered a preliminary ruling on its jurisdiction, the
proper issue for judicial relief is whether or not the
arbitral tribunal has jurisdiction over the
proceedings
o Subsumed into the said issue is the existence,
validity or enforceability of the arbitration
agreement.
RULES HERE ARE APPLICABLE WHEN:
1. The arbitration proceeding has already commenced, the
arbitral tribunal has been constituted and has rendered a
preliminary ruling on its jurisdiction; and
2. A party desires to challenge the arbitral tribunal’s
ruling on the issue of jurisdiction
PETITION
 Within thirty (30) days from receipt of the notice of a
ruling from an arbitral tribunal, an aggrieved party may
file a petition with the Regional Trial Court:
1. Where the arbitration is taking place, or
2. where any of the petitioners or respondents
has his principal place of business or
residence, at the option of the petitioner, for
judicial relief from the ruling of the arbitral
tribunal on a preliminary question upholding
or declining its jurisdiction.
 It should state:
1. Legal capacity to sue and be sued;
2. Nature and substance of the dispute; and
3. Grounds and circumstances relied upon, and
4. Relief sought
 Attach a copy of the request for arbitration and the
ruling of the arbitral tribunal.
 Furnished with a copy of the petition before it is filed.
COMMENT/OPPOSITION
 Within fifteen (15) days from the date of service of the
petition
COURT ACTION
 Judgement be rendered within 30 days from the time
petition is submitted for resolution
o When the arbitration has commenced, but the
arbitral tribunal has not yet been constituted,
or although constituted, has not yet rendered a
ruling on its jurisdiction, courts are enjoined
not to entertain any petition for judicial relief
on the issue of jurisdiction or, if already pend-
ing, to refer the issue back to the arbitral
tribunal once constituted.
o In accordance with Competence-competence
principle
 agreement to submit to arbitration
RELIEF AGAINST COURT ACTION or a submission agreement. the
 Aggrieved party may file MR but cannot be subject to request for referral to
appeal arbitration may be made by
 ORDER ON JURISDICTION OF Arbitral tribunal: ANY ONE of the parties not
o AFFIRMED – Not subject to certiorari later than the pre-trial
o DENIAL – May be subject to certiorari conference.
 A request made after the pre-
NOTE: trial conference must be with the
o If the arbitral tribunal, instead of rendering a agreement of BOTH parties.
preliminary ruling on its jurisdiction,
decides to defer such ruling until the rendition  PRESENT-ACTIONS
of the arbitral award, none of the parties can  In the case of a present-action
seek judicial relief from the deferment. arbitration agreement, which is
o MR, Appeal and Certiorari are not necessarily a submission
available to challenge the decision of the agreement (PRESENT-
tribunal to defer resolution about jurisdiction. CAUSAL), the parties may request
o After award, parties may raise the same the referral to arbitration at any
issue before court in a proceeding for time during the proceedings.
setting aside or vacating the award
PROCEDURAL RULES:
 EFFECT OF DEFERMENT – If the AT already REQUEST/MOTION
rendered an award, the prospective or pending  It is the pleading that initiates the referral to arbitration.
petition for judicial relief on the preliminary Presupposes the existence of a pending court action,
jurisdictional issue, will be rendered moot and thus, not a petition.
academic, and any pending petition ought to be  Supported with allegations, authentic copy of
dismissed. arbitration agreement.
 Arbitrators are nominal parties.  In case of litigated motions, must be served upon the
o Can be named in the action although not the respondent” and be set for hearing.`
real party interest. Not required to file
pleadings. COMMENT/OPPOSITION
 Real party in interest remained the claimant and  Filed within fifteen (15) days from service of the
respondent. request or motion and must show:
 Indispensable and necessary party must be included 1. No agreement to refer the dispute to
in the proceeding. arbitration;
2. Agreement is null and void; or
3. Subject matter of the dispute is not capable of
settlement or resolution by arbitration.

B. REFERRAL TO ADR COURT ACTION

(Rules 4.1 to 4.8, Special ADR Rules)
Situation contemplated by this Rule is that where:
1. There is already a pending court action;
2. There is either a pre-action arbitration agreement or a
present-action arbitration agreement; and
3. One or both parties desire to undergo arbitration.
CLASSIFICATION BASED ON THE TIME OF EXECUTION
RELATIVE TO:
1. EXISTENCE OF THE DISPUTE
− Relevant classification for purposes of
determining the timeliness of the request for
referral to arbitration and the number of the
parties who are required to make the request
 PRE-CAUSAL arbitration agreement
(agreement to submit to arbitration) or
 PRESENT-CAUSAL arbitration
agreement (submission agreement).
2. FILING OF THE ACTION
− Pertinent classification for purposes of
determining the date of commencement of the
arbitration
 PRE-ACTION
 If there is a pre-action arbitration
agreement, which may either be an
 [i] GRANT the motion if it finds prima facie that there
is a valid and enforceable arbitration agreement and
that the subject matter of the dispute is capable of
arbitration; or
o Prima facie but not conclusive among the
parties
 [ii] DENY it if the court finds otherwise
NOTE: the court should stay the judicial proceedings while the
motion for referral is pending resolution.
Arbitral proceedings, however, may be commenced or continued,
and an award may be made thereon, while the action is pending in
court.
RELIEF AGAINST COURT ACTION
 GRANTED
 immediately executory and
 shall not be subject to a MR, appeal or
petition for certiorari under the Special ADR
Rules.
 DENIED
 Not subject to appeal,
 BUT may be the subject of a MR and a
petition for certiorari under the Special ADR
Rules.

In accordance with competence-competence principle, courts are
prohibited from denying the request for referral to arbitration
merely for any of the ff grounds:
1. Not all of the disputes subject of the civil action may be
referred to arbitration.
2. Not all of the parties to the civil action are bound by the
arbitration agreement and referral to arbitration would
result in multiplicity of suits.
3. The issues raised in the civil action could be speedily and
efficiently resolved in its entirety by the court rather than
in an arbitration.
4. Referral to arbitration does not appear to be the most
prudent action.
5. The stay of the action would prejudice the rights of the
parties to the civil action who are not bound by the
arbitration agreement.
 The court may, however, issue an order
directing the inclusion in the arbitration of those
parties who are not bound by the arbitration
agreement but who agree to such inclusion
provided that those originally bound by it do
not object to their inclusion.
Koppel, Inc. v. Makati Rotary Club Foundation, Inc.,
 Judicial decisions without referral to arbitration are invalid
 Decisions including of those of the appellate court must be
vacated and set aside.
 Remanded to court a quo to be suspended at said point
 Must be referred to arbitration
C. INTERIM MEASURES OF PROTECTION
(Rules 5.1 to 5.6, Special ADR Rules)
Contemplates the situation:
 Either:
o before the commencement of arbitration, or
o after the commencement of the arbitration but
prior to the constitution of the arbitral tribunal,
or
o after the arbitral tribunal’s constitution but it has
no power to act or is unable to act effectively;
and
 Where a party desires to secure interim measures of
protection.
A measure of protection may either be interim or temporary.
INTERIM MEASURES OF PROTECTION
What are the interim measures of protection?
(2PAD-A)
1. Preliminary Injunction
2. Preliminary Attachment
 against property or
 garnishment of funds in the custody of a bank or third
person;
3. Appointment of Receiver
 Receiver - an officer of the court who will manage the
property of the litigants pending litigation.
 Removal of property from the control of a party who
may dispose of it.
4. Detention, preservation, delivery or inspection of
property; or
5. Assistance in the enforcement of an interim measure
issued by AT which it cannot enforce effectively.
PROCEDURE:
PETITION
 File with the RTC, at the option of the petitioner, where:
o any of the parties has his principal place of
business or residence; or
o any of the acts sought to be enjoined are being
performed or threatened to be performed; or
o the real property subject of the arbitration is
situated.
 Prior notice must be served.
o Unless ex parte temporary protective measure is
applied where there is Urgent need to either
1. Preserve the property;
2. Prevent the respondent from disposing
of, or concealing the property;
3. Prevent the relief prayed for from
becoming illusory.
COMMENT/OPPOSITION
 filed within fifteen (15) days from service of the petition.
COURT ACTION
 resolve the petition within thirty (30) days from the:
I. Submission of the opposition, or
II. Upon the lapse of the period to file the same, or
III. From the termination of the hearing that may be set
if there is need for clarification or further
argumentation.
 In resolving the petition, the court is required to balance the
relative interests of the parties and the inconveniences that
may be caused.”
NOTE: If the basis for the petition for an interim measure is the
non-constitution of the arbitral tribunal, the court, upon being
informed of the subsequent constitution of the arbitral tribunal,
shall defer action on the petition
o UNLESS it is established that the arbitral
tribunal has no power to act on any such interim
measure of protection or is unable to act thereon
effectively.
NOTE: Interim measure of protection issued by the court is
WITHOUT PREJUDICE to the subsequent grant,
modification, amendment, revision or revocation thereof by the
arbitral tribunal.
RELIEF AGAINST COURT ACTION.
 GRANT OR DENY – subject to MR, Appeal or certiorari.
 If the protective measure was issued in a proceeding whereat
the adverse party was given an opportunity to be heard,
the order of the court granting the petition shall be
immediately executory.
o Otherwise, the order of the court shall not be
immediately executory, except if it is a temporary
protective measure.
TEMPORARY ORDER OF PROTECTION OR TEMPORARY
PROTECTIVE MEASURE
TOP or TPM
− injunctive relief the office of which is to:
o Preserve property subject matter of the
arbitration;
o Prevent the disposition or concealment thereof; or
 o Prevent the relief prayed for from becoming moot 2. Any party or the appointed arbitrators request the court to
and academic, during the period that the court act as the appointing authority
− applied Ex parte
1. FAILURE TO APPOINT AN ARBITRATOR WHERE:
− immediately executory
I. Any of the parties in an institutional
− Has a lifetime of 20 days from issuance, unless extended arbitration:
for another 20 days. Failed or refused to appoint an
arbitrator; or
CONDITIONS FOR ITS ISSUANCE: Parties failed to reach an agreement on
1. Urgent need to either the sole arbitrator; or
a. Preserve the property; The two (2) designated arbitrators have
b. Prevent the respondent from disposing of, or failed to reach an agreement on the
concealing the property; third or presiding arbitrator & the
c. Prevent the relief prayed for from becoming institution under whose rule arbitration
illusory. is to be conducted fails or is unable to
2. Petitioner shall post a bond to answer for any damage that perform its duty as appointing authority
the respondent may suffer as a result thereof; within a reasonable time from receipt
3. Valid only for twenty (20) days from the service on the of the request for appointment;
party required to comply therewith, unless extended but not
for more than twenty (20) days; II. Arbitration is ad hoc and:
4. Can be lifted by the respondent by posting an appropriate i. there is failure on the part of the
counter-bond as determined by the court. parties to provide for a method for
appointing or replacing an arbitrator;
TOP v. TRO or
COMMON: Both are temporary in character, intended to ensure ii. method agreed upon is ineffective, and
the efficacy of the principal relief.  the National President of the
Integrated Bar of the
DISTINGUISHMENT: Philippines (IBP) or his duly
TOP TRO authorized representative
EFFECTIVITY Susceptible of Non-extendible; fails or refuses to act within
extension for not becomes functus period allowed by IBP rules
more than 20 day function after lapse or agreed by parties or in
of 20 days from absence thereof, within 30
service thereof days frand om receipt of
BOND REQUIRED Not generally request of appointment
required; But
require in issuance III. Parties agreed that their dispute shall be resolved
of writ of by three arbitrators
preliminary i. But NO METHOD of appointing of
injunction arbitrator has been agreed upon; and
COUNTER- May be lifted Not applicable; but ii. Failure or refusal to appoint the
BOND may lift writ of arbitrator within a reasonable time
preliminary
injunction PROCEDURAL RULES:
PETITION
 Same rules as to venue
PRINCIPLES ON PREFERENCE FOR ARBITRATION  State:
Rules on interim measure of protection recognize the principal  [i] the general nature of the dispute;
preference of arbitration over judicial proceeding.  [ii] a description of the procedure for the appointment of
1. Grant or denial of IMP by court shall be without prejudice the arbitrators, if there is any, and the agreement * Td,
to modification, reversion, or revocation thereof by arbitral containing such procedure;
tribunal.  [iii] the number of the arbitra tors agreed upon or the
2. IMP issued by arbitral tribunal shall ipso jure amend, absence of such an agreement; [iv] the special
modify, reverse or revoke IMP issued by court to the extent qualifications of the arbitrators if there is any agreement
that is inconsistent to the former. thereon; [v] the fact that the appointing authority,
3. Questions or conflict from IMP issued by court and arbitral without justifiable cause, has failed or refused to act as
tribunal shall be resolved by the latter. such within the time prescribed or within a reasonable
4. Court should defer action to any petition of IMP once time, from the date a request was made; and [vi] the
arbitral tribunal has been constituted pursuant to the petitioner is not the cause of the delay or in the failure to
arbitration agreement. appoint the arbitrator.
5. Court shall assist the enforcement of IMP issued by arbitral 
tribunal which the latter is unable to enforce effectively

D. APPOINTMENT OF ARBITRATORS
(Rules 6.1 to 6.9, Special ADR Rules)

JUDICIAL APPOINTMENT OF ARBITRATORS APPLY IF:

1. Failure to appoint an arbitrator; or