International

Commercial Arbitration
• United Nations Commission on International Trade Law (UNCITRAL)
Model law on International Commercial Arbitration
• RA 9285 Sec. 42- 48
• Chapter 4 Rule 6 of the Implementing Rules and Regulations of
Alternative Dispute Resolution
International Arbitration

1. Places of business in Different States

2. One of the Following is situated outside the
Philippines
I. Place determined by the arbitration agreement
II. Any place where a substantial part of the obligation is to
be performed or closely connected
3. Express Agreement that subject matter relates to
more than one country
I. Party has more than one place of business- place which
has closest relationship to agreement
II. Party has no place of business- habitual residence
 Interpretation

• Governed by the Model law on

International Commercial Arbitration
• Travaux Preparatoires
• Report of Secretary General of UNCITraL
Sec 42. Application of New York
Convention (Art. 4.35 Rule 6 of
IRR)
• Foreign Arbitral Awards recognized as binding
and enforceable
• Recognition and Enforcement shall be filed with
Regional Trial Court
– Original or authenticated copy of the award and
arbitration agreement, and if not in the official
language, a duly certified translation
• Establish that foreign arbitration Award was
made is a party to the New York Convention
 Sec. 43. Recognition and Enforcement of
Foreign Arbitral Awards Not Covered by the
New York Convention (Art. 4.35 Rule 6 of IRR)

• What if it is not Covered by New York

Convention? (Non-Convention Award)
– Supplemented with Procedural Rules
promulgated by the Supreme Court
– On Grounds of Comity and Reciprocity
Sec 44. Foreign Arbitral Award Not
Foreign Judgement
(Art. 4.35 Rule 6 of IRR)

• Foreign award confirmed by Foreign court

– Foreign Arbitral Award, not a judgment of
foreign Court
• Foreign award when Confirmed by RTC
– Foreign Arbitral Award, not a Judgement of
Foreign Court
• Foreign award when Confirmed by RTC
– Final and executory decision of courts of law of
the Philippines
Sec. 45. Rejection of a Foreign Arbitral
Award (Art. 4.36 Rule 6 of IRR)
Grounds for Refusing Recognition or Enforcement
• Convention Award
1. Agreement is not valid under the law of the country where the
award was made
2. Party against the invoked award was not given proper notice
of appointment or was not able to present his case
3. Dispute does not fall within the terms of submission to
arbitration or it is a matter beyond the scope of arbitration.
Provided that the part of the award that may be submitted can
be separated and be enforced
4. Composition of arbitral tribunal was not in accordance with the
agreement of the parties
5. Award was not binding on the parties or has been set aside or
suspended by a court of the country the award was made
6. Subject matter is not capable of settelement by arbitration
under the law of the Philippines
7. Award would be contrary to Public Policy
Sec. 45. Rejection of a Foreign Arbitral Award
(Art. 4.36 Rule 6 of IRR)
Grounds for Refusing Recognition or Enforcement

• Non-Convention award
– Will only be recognized upon proof of the
existence of comity and reciprocity and may
be treated as a convention award
– Hence subject to the same grounds
– If no comity or reciprocity exist non-
convention awards cannot be recognized
and/or enforced
Sec. 46 Appeal from Court Decision on
Arbitral Awards (Art. 4.37 Rule 6 of IRR)

• Appealed to the CA in accordance with rules of

procedure
• Losing party who appeals from judgement shall
be required to post counterbond equal to the
amount of the award
• Any stipulation that parties arbitral tribunal award
shall be final and therefore not appealable shall
be VALID. Carries with it waiver of right to
appeal subject only to judicial review.
Sec. 47 Venue and Jurisdiction
(Art. 4.38 Rule 6 of IRR)

• Application with a court for arbitration assistance

and supervision shall be deemed as special
proceedings and shall be filled with the RTC
– Where arbitration proceeding are conducted
– Where asset to be attached or levied, or the act to be
enjoined is located
– Where any of the parties to the dispute resides or has
his place of business
– Or; in the National Judicial Capital Region, at the
option of the applicant
Sec 48.Notice of Proceeding
to Parties
• Court shall send notice to parties at their
address of record in the arbitration
• If any party cannot be served at such
address- at party’s last known address
• Notice shall be sent at least 15 days
before the date set for initial hearing
 Other notes

• A party may be represented by any person

of his/her choice
• Arbitration proceeding shall be confidential
• A petition for recognition and enforcement
of awards shall be heard and dealt with
summarily
• Death of a party after submission may be
continued upon application of the estate