DOMESTIC

ARBITRATION
ADR Sec. 35
Atty. David Ballesteros

BY GRP. 6
DELA CRUZ, ARTHUR JAY
DELA FUENTE, CHARLOTTE
VIVAR, MARIA ANGELICA

1
 DOMESTIC ARBITRATION:
DEFINED AND APPLICABLE LAWS
Domestic arbitration is when parties’ place if
business, place of arbitration, and place of
performance of the obligation involved or
subject matter of the dispute are located in the
Philippines.
It shall be governed by R.A. No. 876, otherwise
known as the Arbitration Law, as amended by
R.A. No. 9285, pursuant to Section 32 of said
law.
Pursuant to Section 33 of R.A. No. 9285,
articles 8, 10, 11, 12, 13, 14, 18, 19, and 29-32
of the Model Law and Sections 22-31 of R.A.
No. 9285 shall also apply to domestic
arbitration.
Disputes covered by Domestic Arbitration
The provisions and rules on domestic
arbitration covers both commercial and non-
commercial disputes provided they are
susceptible of arbitration and do not fall within
the exclusive original arbitral jurisdiction of
quasi-judicial agencies.
Due process in Domestic Arbitration
The parties to domestic arbitration are entitled
to be treated equally and with due process.
However, such due process required shall not
be limited by the rigid technicalities of
procedure provided that they still adhere to the
basic concepts of fair play. Administrative
agencies exercising quasi-judicial powers do
not require trial type proceedings in order to
observe and comply with due process. As a
matter of fact, submission of position papers
may be sufficient as long as the parties are given
the opportunity to be heard.
Hence, in cases of domestic arbitration, due
process is deemed to have been complied with
when one was given the opportunity to be
heard, to explain one’s side, or seek
reconsideration of the action or ruling
complained of.
Place or venue of Arbitration
It shall be determined by the parties. If such
agreement is absent, it shall be conducted in
Metro Manila unless the tribunal decides on a
different place taking into consideration the
circumstances of the case and convenience of
the parties.
Language
The parties shall determine the language or
languages to be used. Absent such agreement,
the default language to be used shall be English
or Filipino. The language/s agreed, unless
otherwise specified, shall be used in all hearings
and all written statements, orders or other
communication by the parties and the arbitral
tribunal. The arbitral tribunal may order that
any documentary evidence shall be
accompanied by a translation into the language
or languages agreed upon by the parties.
Confidentiality
All records, evidence, award and other
confidential information of the arbitration
proceedings shall be considered privileged and
confidential.
It shall not be published unless it is with consent
of the parties, or for the limited purpose of
disclosing to the court relevant documents in
cases where resort to the court is allowed.
Provided however that the court in which the
action or the appeal is pending may issue a
protective order to prevent or prohibit
disclosure of documents or information
containing secret processes, developments,
research and other information where it is
shown that the applicant shall be materially
prejudiced by an authorized disclosure thereof.
Rules on receipt of written communications
Rules on receipt of written communications are
to be agreed upon by the parties. In the absence
of such agreement, written communications
shall be delivered personally, by registered mail
or courier service, and shall be deemed received
on the date it is delivered.
Waiver of objections
A party shall be estopped from questioning
non-compliance with the non-mandatory
provisions of the Rules or any requirement in
the arbitration agreement or is deemed to have
waived his objection thereto when he, with
2
knowledge of such non-compliance, fails to
raise the objection without delay or within the
time prescribed. If there is no period prescribed,
it shall be 30 days.
Extent of Court intervention
No Court shall intervene except in the instances
allowed by the Arbitration Law, ADR Act and
Special ADR Rules. Examples of which are
when, thirty (30) days having elapsed from
receipt of the request for arbitration, the
appointing authority fails to perform functions
imposed under Article 5.10(c) and (d), Article
5.11(a), and Article 5.13, in which cases the
applicant may apply with the courts for the
same relief. Interim measures may be requested
or enforced through the courts.
Representation
A party may appear by himself or be
represented or assisted by any person of his
choice, provided that such representative,
unless admitted to the practice of law in the
Philippines, shall not be authorized to appear as
counsel in any Philippine court or quasi-judicial
body.
Arbitration Agreement
Being that an agreement to arbitrate is a
contract, it must follow the requisites of a valid
contract.
There are two types of consent to arbitrate: pre
causal consent, which is an agreement to submit
to arbitration, and present causal consent, which
is the submission agreement where the
controversy already exists between the parties
at the time of the submission to arbitration.
The submission and contract must be valid,
enforceable and irrevocable except upon
grounds provided by law for the revocation of
contracts.
A controversy cannot be arbitrated when one of
the parties to the controversy is an infant, or a
person judicially declared to be incompetent
unless the appropriate court having jurisdiction
approves a petition for permission to submit
such controversy to arbitration made by the
general guardian ad litem of the infant or of the
incompetent.
The form of the arbitration agreement shall be
in writing and subscribed by the party sought to
be charged or by his lawful agent.
When the court action is multi-party, it
shall refer the parties involved to the
arbitration agreement to arbitration, and
proceed with the court action as to those who
are not bound by such arbitration agreement.
The court may also issue an order directing the
inclusion in the arbitration of those who are not
bound by the arbitration agreement provided
that the original party did not object to the said
inclusion.
Corporate representatives may be compelled to
submit to arbitration proceedings pursuant to a
contract entered into by the corporation they
represent.
Determination of applicable rules of procedure
The parties are free to agree on the procedure to
be followed by the arbitral tribunal in
conducting the proceedings. In default of such
agreement, the tribunal may conduct the
arbitration in a manner it deems appropriate,
subject to the provisions of the Rules. The
power conferred upon the arbitral tribunal
includes the power to determine admissibility,
relevance, materiality and weight of evidence.
COMMENCEMENT OF ARBITRAL
PROCEEDINGS
(Article 5.20, IRR of R.A. 9285)
Where there is a prior arbitration agreement
between the parties, arbitration is deemed
commenced as follows:
(i) In institutional arbitration, arbitration is
commenced in accordance with the arbitration
rules of the institution agreed upon by the
parties.
(ii) In ad hoc arbitration, arbitration is
commenced by the claimant upon delivering to
the respondent a demand for arbitration. A
demand may be in any form stating:
(aa) the name, address, and description
of each of the parties;
(bb) a description of the nature and
circumstances of the dispute giving rise
to the claim;
3
 (cc) a statement of the relief sought,
including the amount of the claim;
(dd) the relevant agreements, if any,
including the arbitration agreement, a
copy of which shall be attached; and
(ee) appointment of arbitrators and /or
demand to appoint.
If the arbitration agreement provides for the
appointment of a sole arbitrator, the demand
shall include an invitation of the claimant to the
respondent to meet and agree upon such
arbitrator at the place, time and date stated
therein which shall not be less than thirty (30)
days from receipt of the demand.
If the arbitration agreement provides for the
establishment of an arbitral tribunal of three (3)
arbitrators, the demand shall name the arbitrator
appointed by the claimant. It shall include the
curriculum vitae of the arbitrator appointed by
the claimant and the latter’s acceptance of the
appointment.
Where there is no prior arbitration agreement,
arbitration may be initiated by one party
through a demand upon the other to submit their
dispute to arbitration. Arbitration shall be
deemed commenced upon the agreement by the
other party to submit the dispute to arbitration.
The demand shall require the respondent to
name his/her/its arbitrator within a period
which shall not be less than fifteen (15) days
from receipt of the demand. This period may be
extended by agreement of the parties. Within
said period, the respondent shall give a written
notice to the claimant of the appointment of the
respondent’s arbitrator and attach to the notice
the arbitrator’s curriculum vitae and the latter’s
acceptance of the appointment.
ARBITRATORS & ARBITRAL
TRIBUNALS
Numbers of Arbitrators
Unless the parties have agreed otherwise, there
shall be three (3) arbitrators for domestic
arbitration.
Qualifications and Disqualification
An arbitrator must:
1. Be of legal age
2. Be in full enjoyment of his civil rights
3. Know how to read and write
No person shall serve as an arbitrator in
any proceeding if:
1. he is related by blood or marriage
within the sixth degree to either party
to the controversy
2. he has or has had financial, fiduciary or
other interest in the controversy or
cause to be decided, or in the result of
the proceeding
3. he has personal bias which might
prejudice the right of any party to a fair
and impartial award
4. he has been selected to act as champion
or to advocate party’s cause.
NOTE: the arbitrator is required to disclose
these circumstances and may be challenged on
account thereof.
Procedure for Appointment of Arbitrators
The parties are free to agree on the procedure
for the appointment or arbitrators except
that, in order to prevent undue advantage, an
agreement or clause giving a party the power to
choose more arbitrators than the other is void.
The parties may agree to empower the
arbitrators already appointed to select and
appoint additional arbitrators who shall sit with
the original arbitrators
If there is no agreement for the appointment,
the following are the default rules:
1. Appointment by the parties.
In an arbitration with three (3)
arbitrators, each party shall appoint
one (1) arbitrator, and the two (2)
arbitrators thus appointed shall appoint
the third arbitrator within thirty (30)
days from receipt of a request to do so,
failing which, the appointment shall be
made by the appointing authority.
In an arbitration with a sole arbitrator,
the parties shall agree on the arbitrator,
failing which, the appointment shall be
4
 made by the appointing authority upon
the request of a party
2. Default appointment by appointing
authority.
The appointing authority in an ad hoc
domestic arbitration, in the absence of
an agreement of the parties, is the
National President of the IBP or his
duly authorized representative.
In the case of institutional domestic
arbitration, there is no need for an
appointing authority for purposes of
appointing arbitrators because the
parties have already designated the
institutional ADR provider under
whose rules the arbitrator or arbitrators
are to be selected.
In case of sole arbitrators, Article 5.10
of the IRR additionally empowers the
appointing authority to summon the
parties and their counsel to appear
before it in order to select and appoint
the sole arbitrator, failing which, the
appointing authority shall make the
appointment.
In making the default appointment
the appointing authority shall
consider:
a. The likelihood of securing an
impartial and independent
arbitrator
b. The place of residence or
business of the arbitrator to
ensure speedy dispensation
and moderate cost of
arbitration
3. Request for appointment.
The Request for Appointment with
proof of delivery to the adverse party
shall be filed with the appointing
authority. Within seven (7) days from
receipt of the Request for Appointment,
the adverse party may file his
objections to the Request or ask for an
extension not exceeding thirty (30)
days to appoint an arbitrator.
4. Acceptance of appointment.
An arbitrator, in accepting his
appointment, shall submit an
acceptance letter which shall include
statements that:
a. He agrees to comply with the
applicable law and rules of
arbitration
b. He accepts the applicable
arbitrator’s fees
c. He agrees to devote as much
time and attention to the
arbitration as the
circumstances may require
5. Oath of arbitrators.
Before hearing any testimony,
arbitrators shall take an oath to
faithfully and fully hear and examine
the matters in controversy and to make
a just award according to the best of
their ability and understanding.
Grounds for Challenge
An arbitrator may be challenged only if:
1. Circumstances exist that give rise to a
justifiable doubt as to his impartiality
or independence
2. He does not possess the qualifications
provided for under the law or agreed to
by the parties
3. He is disqualified to an act as an
arbitrator
4. He refuses to respond to questions by a
party regarding the nature and extent of
his professional dealings with a party or
his counsel
NOTE: The third (disqualification) and the
fourth (refusal to an answer) grounds are not
provided for in the rules on international
commercial arbitration but provided for in
the rules on domestic arbitration based on
Section 10 of R.A. No. 876.
The party appointing an arbitrator may
challenge that arbitrator for reasons which the
party became aware of after the appointment
was made. 42 Otherwise he is already estopped
from challenging the appointment he himself
made.
If an arbitrator so appointed discovers the
existence of any circumstance that would create
5
a presumption of bias, he must immediately
disclose the information to the parties.
The parties may agree in writing to either:
1. Waive the presumptive disqualifying
circumstance
2. Declare the office that such arbitrator
vacant and appoint a substitute
arbitrator in the same manner as the
original appointment
NOTE: the arbitrators’ refusal to disclose facts
to the parties and respond promptly in good
faith to questions from a party shall be grounds
to challenge him.
Procedure for the Challenge
The procedure for the challenge against an
arbitrator in a domestic arbitration is similar to
that provided for an international commercial
arbitration.
The general rule is that the procedure that is
agreed upon by the parties for challenging
an arbitrator shall be applied.
In default thereof, the following procedure
shall govern:
1. The challenging party shall send a
written statement of the reasons for
the challenge to the arbitral tribunal
within fifteen (15) days after becoming
aware of the constitution of the arbitral
tribunal or after becoming aware of the
circumstances surrounding the ground
for the challenge.
The challenge shall be in writing and
shall state specific facts that provide
basis for the ground for the challenge.
A request for inhibition shall be
deemed a challenge.
2. Within fifteen (15) days from receipt of
a challenge, the challenged arbitrator
may either accept or reject the
challenge. If he accepts it, he shall
voluntarily withdraw as arbitrator.
3. If he rejects the challenge, he shall
communicate within the same period of
fifteen (15) days his rejection of the
challenge and state the facts and
arguments relied upon therefore. He
shall be given an opportunity to be
heard on the matter.
4. Notwithstanding the rejection of the
challenge by the challenged arbitrator,
within the same period of fifteen (15)
days, the parties may agree to the
challenge and replace the challenged
arbitrator.
5. If the challenged arbitrator does not
accept the challenge or does not
withdraw from his office, and the
parties do not agree to the challenge,
the arbitral tribunal shall decide the
challenge within thirty (30) days from
receipt of the notice of the decision
rejecting the challenge.
6. If the challenge before the arbitral
tribunal is not successful, or a party or
arbitral tribunal shall decline to act,
within thirty (30) days from notice of
the decision rejecting the challenge, the
challenging party may request the
appointing authority to decide the
challenge.
7. If the appointing authority shall fail to
act on the challenge within thirty (30)
days from the date of its receipt, or
within such further time as it may fix,
the requesting party may, with notice to
the parties, renew the request with the
court.
8. Until a decision is made by the
challenged arbitrator, the parties, the
arbitral tribunal, or the appointing
authority as the case may be, the
arbitration proceeding shall continue
notwithstanding the challenge and the
challenged arbitrator shall continue to
participate therein as arbitrator.
However, once the challenge is
elevated to the court the arbitration
proceeding shall be suspended until
after the court shall have decided the
incident.
9. The decision of the parties, the arbitral
tribunal, the appointing authority or the
court, in proper cases to accept or reject
6
 a challenge shall be immediately
executory and is not subject to appeal
or motion for reconsideration.
4. Hearing and written proceedings.
10. The appointment of a substitute
arbitrator shall be made pursuant to
the procedure applicable to the
appointment of the arbitrator being
replaced.
Procedure in Case the Arbitrator Fails to
Act
If an arbitrator in a domestic arbitration
becomes de jure or de facto or unable to
perform his functions or fails to act without
undue delay, his mandate terminates if:
1. He withdraws
2. The parties agree on the termination.
If the controversy remains, any party may
request the appointing authority to decide on
the termination of the arbitrator, which decision
shall be immediately executory, and shall not be
subject to a motion for reconsideration or
appeal.
The appointment of substitute arbitrator,
whether on account of a challenge procedure, or
on account of his failure or impossibility to act,
shall be governed by the same rules applicable
in the appointment of the replaced arbitrator.
ARBITRAL PROCEEDINGS
Default procedures in domestic arbitration:
1. Statement of claims.
As in international commercial
arbitration, the claimant in a domestic
arbitration is required to submit within
the time agreed upon by the parties or
determined by the arbitral tribunal his
statement of claims including the
supporting facts, points at issue and the
relief sought.
2. Statement of defenses.
In the same manner and period, the
respondent shall state his defense.
3. Amendment of claims or defenses.
The parties may amend or supplement
their claims, as the case may be, unless
the arbitral tribunal considers the
amendment inappropriate or dilatory.
In an ad hoc domestic arbitration, the
procedure determined by the arbitrator
with the agreement of the parties shall
be followed.
In an institutional domestic
arbitration, the rules of procedure of
the institutional arbitrator shall be
followed which has been impliedly
accepted by the parties on account of
the designation of the institutional
arbitral tribunal.
In domestic arbitration, the following
procedure will be followed:
a. Pre-hearing conference.
The parties in a domestic
arbitration are required to undergo
a pre-hearing conference within
thirty (30) days from the
appointment of the arbitrator or the
constitution of an arbitral tribunal
during which they shall discuss:
i. the venue of the arbitration
ii. manner of recording the
proceedings
iii. periods of communication of
the statement of claim, answer,
and answer to counterclaims,
and the form and contents
thereof
iv. manner of offering evidence
v. delivery of certain types of
communication
vi. issuance of subpoena by the
arbitral tribunal
vii. manner of receiving expert
testimony
viii. possibility of applying for
interim relief
ix. possibility of site or ocular
inspection
x. the fees of the arbitral tribunal
xi. such other relevant matters.
The possibility of compromise is
not among those that the parties
and the arbitral tribunal are
required to discuss during the pre-
7
 hearing conference. No arbitrator
shall act as mediator in any
proceeding where he is acting as an
arbitrator except where, under a
settlement agreement, the parties
agree to constitute the mediator as
an arbitrator under Section 17 of
the ADR Act of 2004.
b. Threshold issues.
Issues on the jurisdiction of the
arbitral tribunal over the claims and
counterclaims, or the arbitrability
of claims or counterclaims, shall be
resolved by the arbitral tribunal as
threshold issues if the parties so
request, unless the issues are
intertwined with factual issues that
they cannot be resolved ahead of
the hearing on the merits.
c. Hearing dates and
postponements.
The arbitral tribunal shall, in
consultation with the parties, fix
the date and time of the hearings.
The hearings shall not be
postponed except with the
conformity of the arbitrator and for
good and sufficient cause.
5. Rules on taking evidence.
d. Default of a party.
If the claimant fails to
communicate his statement of
claims, the arbitral tribunal shall
terminate the proceedings.
If it is the respondent who fails to
communicate his statement of
defenses, the arbitral tribunal shall
continue the proceedings without
treating such failure in itself as an
admission of the claimant’s
allegations.
If any party fails to appear at a
hearing or produce evidence, he
shall be deemed to have waived
them, and the arbitral tribunal may
continue the proceedings and
render an award based on the
evidence before it.
e. Decision on interlocutory matters.
Decisions on interlocutory matters
shall be made by the sole arbitrator
or by the majority of the arbitral
tribunal. The arbitral tribunal may
authorize its chairman to issue or
release its decision on interlocutory
matters.
f. Consolidation or concurrent
hearings.
In consonance with the authority of
the parties to determine the rules of
procedure to be followed in
arbitration, they may agree to
consolidate the arbitration
proceedings with other arbitration
proceedings or hold concurrent
hearings.
g. Closure of hearing.
After the hearing is closed, no
further motion, manifestation or
submission may be allowed except
for post-hearing briefs and reply
briefs, unless the arbitral tribunal,
motu proprio or upon request of a
party allows the re-opening of the
hearing.
The following are the rules on
reception of evidence as well as the
processes that the arbitral tribunal may
employ in taking evidence:
a. Testimonial evidence.
Witnesses, before giving
testimony, shall be required to
take an oath or affirmation to
tell the truth, the whole truth
and nothing but the truth. The
arbitral tribunal shall arrange
for the transcription of the
recorded testimony of the
witnesses.
The parties may also agree in
writing to submit their dispute
to arbitration other than by oral
hearing.
b. Documentary evidence.
Each party shall provide the
other with copies of the
8
 statements or documents
submitted to the arbitral
tribunal.
The arbitral tribunal may
require the parties to produce
such other necessary
documents. The arbitral
tribunal shall receive as
evidence all exhibits submitted
by a party marked and
identified at the time of the
submission.
c. Subpoena.
The arbitral tribunal shall have
the power to issue subpoena
duces tecum and ad
testificandum.
d. Expert.
The arbitral tribunal may
appoint one or more experts to
report to it on specific issues,
may require the parties to
submit relevant information or
grant access thereto to such
expert, and may grant the
parties opportunity to ask
questions of the expert and
present their own experts to
testify on the points at issue.
Upon the agreement of the
parties, the finding of the
expert engaged by the arbitral
tribunal shall be binding upon
them and the arbitral tribunal.
e. Court assistance in taking
evidence.
The provisions of the IRR on
domestic arbitration specified
some of these modes of
assistance, such as:
i. issuance of subpoena duces
tecum and ad testificandum
ii. interim or provisional
reliefs
iii. protective orders with
respect to confidentiality
iv. orders that may affect third
parties
v. examination of debtors
6. Decision.
The decision of an arbitral tribunal
shall be made by the sole arbitrator, or,
unless otherwise agreed upon by the
parties, by the majority of the
arbitrators in a multi-arbitrator
proceeding.
However, questions of procedure may
be decided by the chairman of the
arbitral tribunal if so authorized by the
parties or by all members of the arbitral
tribunal.
The arbitral tribunal shall render its
written award within thirty (30) days
after the closing of the hearings, the
submission of the parties’ respective
briefs, or the declaration by the arbitral
tribunal that the proceedings have been
closed. This period may be extended by
the parties.
7. Form and contents of the award.
The award in a domestic arbitration
shall be in writing, signed by the
arbitrator, and shall state the date of
rendition and the place of arbitration. In
an arbitration with more than one (1)
arbitrator, the award shall be signed by
majority of all the members provided
that the reason for any omitted
signature is stated. The award shall
state the reason upon which it is based
unless the parties have agreed
otherwise or the award is an award on
agreed terms, consent award or award
based on compromise. A signed copy
of the award shall be delivered to each
party.
The award in a domestic arbitration
need not be acknowledged or sworn to
under oath or affirmed by the arbitral
tribunal unless so required in writing by
the parties. The parties may require the
arbitral tribunal to supply the omission
within thirty (30) days from receipt of
the award, or they may waive the
effects thereof by not objecting thereto
within the said period.
9
 8. Settlement.
The rule is the same for the settlement
of disputes whether the arbitration is
domestic or international. Said form of
award shall have the same status and
effect as any other award on the merits.
9. Termination of proceedings.
Like in an international commercial
arbitration, a domestic arbitration is
terminated either by:
a. Withdrawal of the claim
unless the respondent objects
thereto for the purpose of
prosecuting his counterclaims
or the arbitral tribunal
recognizes a legitimate interest
on his part in obtaining a final
settlement of the dispute. The
circumstance that the
respondent has a counterclaim
that he intends to prosecute is
also provided for as a ground
for objection to the dismissal
of actions upon motion of the
plaintiff under Section 2, Rule
17 of the 1997 Rules of Civil
Procedure.
b. The agreement of the parties
to terminate the proceedings
c. The finding by the arbitral
tribunal that the continuation
of the proceeding has become
unnecessary or impossible
d. Non-payment of the required
deposits in full. This provision
is based on the principle
obtaining under Philippine law
that the payment of docket fees
is necessary to the completion
of the filing of complaints,
appeals or positions whenever
required by the rules.
INTERIM MEASURES
(Art. 5.8, 5.16 & 5.24 – IRR)
Procedure:
1. After the arbitral tribunal has been
constituted, any party may request for
the grant of interim measures from the
arbitrator or arbitral tribunal against the
adverse party.
2. The relief may be granted in order to
prevent irreparable loss (similar to
preliminary investigation); to provide
security for the performance of an
obligation (similar to preliminary
attachment); to produce or preserve
evidence (similar to modes of
discovery); or to compel any other
appropriate act of omission.
3. The grant of the interim measure may
be conditioned upon the provision of
security (similar to an attachment bond
or injunction bond) or any act or
omission specified in the order.
4. The order either granting or denying
the request for interim measures shall
be binding upon the parties and either
party may apply with the courts for
assistance in implementing or
enforcing an interim measure.
5. A party who refuses to comply with the
order shall be liable for damages
resulting from non-compliance,
including all expenses and reasonable
attorney’s fees paid in obtaining
judicial enforcement.
6. Before the constitution of the arbitral
tribunal, or to the extent that the arbitral
tribunal already constituted has no
power to act effectively, the interim
measures may be requested from the
court in accordance with the Special
Rules of Court on ADR.
MULTI-PARTY ARBITRATION
In a multi-party domestic arbitration, the
arbitral tribunal is empowered to implement
procedural modifications as it shall deem
appropriate to address the complexities of the
multi-party arbitration.
FEES & COSTS
GR: the fees of the arbitrators in domestic
arbitration shall be determined by the
agreement of the parties in writing prior to
the arbitration
10
 In default of such an agreement, the
arbitrator’s fees shall be determined in
accordance with the applicable internal
rules of the regular arbitration
institution under whose rules the
arbitration is conducted, or in an ad hoc
arbitration, the Schedule of Fees that
may be approved by the Integrated Bar
of the Philippines, if any, or the
Schedule of Fees that may be approved
by the Office for Alternative Dispute
Resolution.
The costs of arbitration shall be
determined by the arbitral tribunal
CORRECTION, INTERPRETATION &
ADDITIONAL AWARD BY THE
ARBITRAL TRIBUNAL
(Article 5.33, IRR; Sec. 17, 25, and 26,
Arbitration Law)
Art 5.32 (d) states that “No motion for
reconsideration, Correction, and Interpretation
of award or additional award shall be filed with
the arbitral tribunal”
As a general rule, when arbitral tribunal
renders its final award, it loses its jurisdiction
over the dispute and the parties. Thus, an
award once rendered cannot be amended or
modified.
However, as per RA 876, Sec. 17, the
continuation of the arbitral proceeding motu
proprio by the arbitrators or upon motion of a
party, upon good cause shown, is allowed.
Exceptions:
1. Amendment under the arbitration
agreement. If the amendment is
provided for in the agreement
itself, the arbitral tribunal may
cause the amendment of the award.
This answers the question on
whether the international or
domestic is the agreement of the
parties, and it provides the
agreement for the amendment of
the arbitral award.
2. Failure to resolve an issue by the
arbitral tribunal.
Domestic arbitral award may be
modified or amended in order to
completely resolve all matters
involved in the dispute.
3. Quantification of Costs. Wherein
the tribunal makes a reservation in
the final award for the conduct of a
hearing to quantify the cost and
determine the party that will bear
the cost or apportionment. Thus, it
can supplement the award by
determination and quantification,
determination, and apportionment.
4. Correction of typographical and
similar errors initiated by a party.
This is where a party asks the
arbitral tribunal for the correction
of the award which shall be filed
within 30 days from its receipt and
notice to the other party for any
errors such as in computations,
clericals, or typographical or the
same.
5. Correction of typographical errors
initiated by the arbitral tribunal.
Shall be also filed within 30 days
from the date of the award wherein
the tribunal may motu proprio
correct the errors therein.
6. Interpretation of the award. The
parties may agree, within the same
period, to request the arbitral
tribunal to give an interpretation on
a specific point or part of the
award.
If the tribunal finds the request for
correction or interpretation
justified, it shall make the
correction and interpretation in
accordance with the 4th exception.
7. Additional award by the arbitral
tribunal as to the claims presented
in the arbitral proceeding but
omitted in the award shall be
requested within 30 days from
receipt of the award & notice to the
other.
11
 If justified, the tribunal shall make
the additional award within 60 days
from the receipt of the request in
the form of an arbitral request.
As per the period of time, unless any other has
been agreed upon by the parties, correction,
interpretation or the rendition of the additional
award by the tribunal shall be made within 30
days from receipt of the award.
On the notice of motion to vacate, modify, or
correct an award, it shall be served upon the
adverse party or his counsel within 30 days after
the award is filed or delivered.
CORRECTION OF THE ARBITRAL
AWARD BY THE COURT.
(Sec. 25, Arbitration Law)
Grounds for amendment / modification of an
arbitral award by the tribunal:
1. There is evident miscalculation of
figures or when there is evident mistake
in the description of the person or
things, or property mentioned in the
award.
2. When the arbitrators awarded on a
matter that is not submitted to them and
does not affect the merits of the
decision.
3. When the Award is imperfect in a
matter of form and does not affect the
merits of the issue, thus, if it has been a
commissioner’s report, the error could
have been amended or disregarded by
the court.
If the award upon a matter NOT submitted for
arbitration, or of the imperfect form of award,
affects the merits of the decision or issue, the
award should be vacated instead of merely
being amended / modified by the Court.
The judgement of the RTC rendered in a motion
to confirm, modify, correct or vacate an award
shall have the same force & effect as a judgment
in an action & may be enforced as if it had been
rendered in the court in which it is entered. Such
judgment may be appealed to the CA thru
petition for review.
Remedy of correction, when not available.
In cases of international commercial arbitral
awards which can be corrected / modified only
by the arbitral tribunal.
SETTING ASIDE AN ARBITRAL
AWARD
(Art. 5.34, IRR of Arbitration Law)
Exclusive grounds in setting aside an
arbitral award:
1. If produced by corruption, fraud, and
other undue means.
2. When there was an evident partiality or
corruption to the tribunal or any of its
members
3. Such tribunal was found guilty of
misconduct or any form of misbehavior
that has materially prejudiced the rights
of any party.
4. When one or more arbitrators was
disqualified to act as such and willfully
refrained from disclosing such
disqualified
5. When there is abuse on the arbitral
tribunal powers or so imperfectly
executed such powers. In effect, final
and definite award upon the subject
was not made.
XPN to the exclusivity: ground that amounts to
a violation of public policy.
Grounds in setting aside an international
commercial arbitral award:
1. Defect in arbitration agreement
2. Violation of due process
3. Lack or excess of jurisdiction on the
part of the tribunal
4. Violation of the arbitration agreement.
5. The subject of the dispute is not
capable of settlement under the laws of
the PH (also applicable in domestic
arbitral awards)
6. The award is in conflict w/ public
policy of the PH (also applicable in
domestic arbitral awards)
Court’s, thru its prerogative, may suspend
its proceedings for a petition for setting aside
on the ff grounds:
1. To give the tribunal an opportunity to
resume the proceeding or take such
12
 action which will eliminate the grounds court proceedings shall be with RTC: Where
for setting aside an award arbitration proceedings were conducted, where
2. Both parties may petition the court to assets to be attached or levied upon or the act
remit the case to the same tribunal for enjoined is located, where any the parties to the
the purpose of making a new nor dispute reside or place of business or, the NCR
revised final & definite award or to at the option of the applicant.
direct a new hearing before the same or
new arbitral tribunal.
3. If the ground for vacating an award
does not affect the merits of the case
and may be cured or remedied.

CONFIRMATION OF DOMESTIC
ARBITRAL AWARDS
(Arts 5.36 to 5.39, IRR; Sections 22,23 and 29,
Arbitration Law)

How does Judicial Affirmation of a Domestic

Award is made?
1. Filing a motion for confirmation. Such
confirmation of an award carries with
it by necessary implication the
execution thereof.
2. Securing an entry of judgment from the
court

In the ICA, proceedings for the confirmation,

vacation or setting aside of a domestic arbitral
award, and any application for arbitration
assistance, except, in appeal that shall be
deemed as special proceedings. Jurisdiction on
these petitions and motions lodged with RTC:
where arbitration proceedings were conducted,
where the asset to be attached or levied or the
act to be enjoined is located, where any of the
parties resides or has his place of business, or in
the NCR, at the option of the applicant.

Art. 5.39 of IRR discussed the location of the

asset or act involved and the NCJR as possible
venues for the confirmation of an arbitral
award, vacating the award or securing the court
assistance, in a domestic arbitration.

Sec. 22 of RA 876 limited the choice of the

venue of the residence of the parties, place of
business, or place of arbitration. The IRR
derives from the substantive law.

(RA 876) which it seeks to implement, cannot

provide for an additional venue apart from
those specifically mentioned on RA 876. Thus,
no conflict because sec 47 of ADR Act of 2004
is itself a substantive law that the IRR must
implement, provides jurisdiction and venue of

13