Alternative

 Dispute  Resolution         AUSL  2018-­‐2019  

 
CHAPTER  1   -­‐ Pre-­‐causal   consent:   parties   to   a   contract  
INTRODUCTION   stipulate  that  any  dispute  that  will  arise  from  
  the  contract  shall  be  resolved  by  arbitration.  
LAWYER’S  ROLE  (P2AB)   -­‐ Present-­‐causal   consent:   parties   to   an   existing  
1. Contribute  to  the  promotion  of  ADR;   controversy   voluntarily   submit   themselves  
2. Assist   the   courts   in   encouraging   the   parties   to   either  to  arbitration  or  mediation.  
avail  of  alternative  means  of  dispute  resolution;   4. ADR  avoids  court  trial;  and  
3. Explain   the   benefits   of   ADR   System   to   their   5. ADR   usually   involves   the   participation   of   a  
clients;  and   neutral  3rd  party.    
4. May   play   the   role   of   ADR   provider   or    
practitioner.     FORMS  OF  ADR  
  1. Arbitration  
Lawyers,   in   view   of   his   excellent   communication   skills,   -­‐ Voluntary   dispute   resolution   process   in   which  
probity   and   legal   foresight,   can   be   appointed   as   an   one   or   more   arbitrators,   appointed   in  
arbitrator,  mediator,  conciliator  or  neutral  evaluator.     accordance  with  the  agreement  of  the  parties,  
  or  rules  promulgated  pursuant  to  the  ADR  act,  
CHAPTER  2   resolve  a  dispute  by  rendering  an  award.    
FUNDAMENTALS  OF  ADR   2. Mediation  
  -­‐       Voluntary   process   in   which   a   mediator,  
ALTERNATIVE  DISPUTE  RESOLUTION  (ADR)   selected   by   the   disputing   parties,   facilitates  
-­‐A  system,  using  means  and  methods  allowed  by   communication   and   negotiation,   and   assists  
law   and   approved   by   the   parties,   for   the   purpose   of   the   parties   in   reaching   a   voluntary   agreement  
resolving   or   facilitating   the   resolution   of   disputes   and   regarding  a  dispute.  
controversies   between   them,   in   an   expeditious   and   3. Conciliation  
speedy  manner,  without  resorting  to  court  adjudication.     -­‐     The  adjustment  and  settlement  of  a  dispute  in  
  a  friendly,  unantagonistic  manner.    
PRINCIPLES  OF  ADR   4. Neutral  or  Early  Neutral  Evaluation  
1. Promotion   of   party   autonomy   and   self-­‐ -­‐     Process   wherein   the   parties   and   their   lawyers  
determination  in  the  resolution  of  disputes.   are  brought  together  to  present  summaries  of  
-­‐ Parties   are   give   the   freedom   to   choose   the   their   cases   and   receive   a   non-­‐binding  
form   of   ADR   they   desire   to   avail   of,   they   also   assessment   by   an   experiences   neutral   person  
have  the  discretion  to  prescribe  the  procedure   with   expertise   in   the   subject   or   in   the  
to   govern   the   ADR   process.   Party   autonomy   substance  of  the  dispute.  
extends   to   the   choice   of   ADR   providers   or   5. Mini-­‐Trial  
practitioners,   the   venue   and   the   terms   of   the   -­‐       Structured   dispute   resolution   method   in   which  
concluding  agreements.     the  merits  of  a  case  are  argued  before  a  panel  
2. Recognition   of   ADR   as   an   efficient   tool   and   an   composed   of   senior   decision   makers,   with   or  
alternative  procedure  for  the  resolution  of  cases.   without   the   presence   of   a   neutral   3rd   person,  
3. Enlisting  of  private  sector  participation.   after   which   the   parties   seek   a   negotiated  
  settlement.    
OBJECTIVES  &  BENEFITS  OF  ADR   6. Any  Combination  
1. Speedy  and  Impartial  Justice   7. Any  other  ADR  form    
2. Declogging  of  court  dockets.   -­‐     Any   arrangement   agreed   upon   by   the   parties  
-­‐ Decongestion   of   court   dockets   is   the   ultimate   that  satisfies  the  requisites  of  ADR  
objective  of  ADR.      
  ARBITRATION  VS  MEDIATION  
FEATURES  OF  ADR   ARBITRATION   MEDIATION  
1. ADR   as   a   means   used   to   resolve   a   dispute   or   An   arbitral   tribunal   or   The   parties   to   the  
controversy;   arbitrator   evaluates   controversy   are   convinced  
-­‐ To   resolve   or   facilitate   the   resolution   of   a   evidence   and   the   merits   of   by   a   mediator   to   settle  
dispute  or  controversy  in  a  speedy,  amicable   the   case   and   renders   and   their  controversy  through  a  
and  inexpensive  manner.   arbitral  award  based  on  his   voluntary   agreement  
2. ADR  utilizes  means  and  methods  allowed  by  law;   appreciation  thereof.   executed   by   the   parties  
3. ADR  is  contractual  in  nature;   themselves   called  
-­‐ In   line   with   the   policy   of   the   law   to   actively   “mediated   settlement  
promote   party   autonomy,   the   parties   to   a   agreement.”  
dispute   are   given   the   freedom   to   agree   to   Arbitral   award   is   rendered   Voluntary   agreement  
resolve   their   dispute   and   decide   on   the   by   the   3rd   party   arbitral   executed   by   the   parties  
procedure   therefor.   ADR   and   its   procedures   tribunal  or  arbitrator.   themselves.  
are  contractual  in  character.      
CLASSIFICATION  OF  FORMS  OF  ADR  

Notes  by  Geraldine  L.  Yu   1  

 Alternative  Dispute  Resolution         AUSL  2018-­‐2019  
 
As   to   the   number   Bilateral   Multilateral  or   Following  issues  are  not  susceptible  of  ADR:    
of  parties   Multi-­‐party   1. Civil  Status  of  Persons  
As   to   the   number   Simple   Complex   2. Validity   of   Marriage   or   any   ground   for   legal  
of  issues  involved   -­‐Only  a  single  issue  is   -­‐2  or  more  issues   separation  
involved   involved   3. Jurisdiction  of  the  Courts  
As   to   the   extent   of   Complete   Partial   4. Future  Legitime  
conclusion   -­‐All  the  issues   -­‐Only  1  or  some   5. Criminal  Liability  
involved  are   of  the  issues   6. In   general,   those   which,   by   law,   cannot   be  
resolved   involved  are   compromised.  
resolved    
As   to   the   role   of   Evidentiary  or   Non-­‐ SEAT  &  VENUE  OF  ADR  
evidence   in   the   Merit-­‐based   evidentiary  or   -­‐  The  seat  of  ADR  is  the  jurisdiction  under  whose  law  the  
proceedings   -­‐Arbitration   Non-­‐merit   proceeding  is  conducted.  
based   -­‐   The   venue   or   place   of   ADR   is   the   actual   site   where   the  
-­‐Mediation   arbitration  is  being  conducted.  
As   to   the   pendency   Case-­‐related   Independent   -­‐  It  is  possible  for  the  venue  or  place  of  arbitration  to  be  in  
of  a  court  case   -­‐Conducted  in   -­‐Conducted   a   country   different   from   the   country   where   the  
connection  with  or   irrespective  of   arbitration  has  its  seat.    
as  a  pre-­‐requisite  to   any  pending    
trial     court  case   BASIC  CONCEPTS  
involving  the   1. Concluding  Acts  or  Agreements  
issue   -­‐ ADR   proceedings   are   completed   upon   the  
As   to   the   Ad  hoc   Institutional   execution   of   a   concluding   act   or   agreement.  
permanence  of  the   -­‐Existence  of  the   -­‐Existence  of  the   These   may   take   the   form   of   a   mediated  
ADR   provider   or   ADR  practitioner  is   ADR  provider  is   settlement   agreement   or   a   compromise  
practitioner   only  temporary  for   permanent  in   agreement   in   the   case   of   mediation,   a  
the  purpose  of  a   character  and  is   judgement  based  on  compromise  in  the  case  of  
particular  dispute  or   not  dependent   a   court   annexed   mediation,   or   a   waiver   or  
controversy   on  any  dispute   quitclaim   in   case   of   conciliation.   They   make  
or  controversy   take   the   forms   of   arbitral   award,   award   on  
As   to   the   Domestic   International   Foreign   agreed   terms,   consent   award   or   award   based  
applicable   -­‐Parties’   -­‐Parties’   places   of   -­‐If   it   is   on  compromise  in  case  of  arbitration.    
law   places   of   business   are   in   conducted   2. ADR  Providers  and  Practitioners  
business,   different   states;   or   outside   -­‐ The   arbitrator   is   unquestionably   authorized  
place   of   the   place   of   the  PH.     to   render   a   binding   resolution   of   the   dispute  
arbitration,   arbitration   is   between  the  parties  and  is  bound  to  consider  
place   of   outside   the   PH,   the  merits  of  the  controversy.    
performanc place   where   a   -­‐ The   mediator   is   precluded   from   discussion  
e   of   the   substantial   part   of   the   merits   of   the   controversy   and   cannot  
obligation   the  obligation  is  to   render  a  binding  assessment  of  the  dispute.    
involved   be   performed    
are   located   outside   the   PH,   or   By   nature   of   their   functions,   ADR   providers   and  
in  the  PH.   the   parties   have   practitioners,   including   arbitrators   and   mediators,   act   in  
agreed   that   the   quasi-­‐judicial  capacity.  They  are  quasi-­‐judicial  agencies  or  
subject   matter   of   instrumentalities.    
the   dispute   relates    
to   more   than   one   Theirs   decisions   or   awards   are   generally   reviewable   in   a  
country.   special   civil   action   for   certiorari   under   Rule   65   of   the  
  1997  Rules  of  Civil  Procedure  as  amended.    
COMPONENTS  OF  ADR    
1. Contending  Parties   OFFICE   FOR   ALTERNATIVE   DISPUTE   RESOLUTION  
2. Dispute  or  Controversy   (OADR)  
3. Form  of  ADR   The   ADR   Act   of   2004   created   the   OADR,   which   is   an  
4. ADR  Provider  or  Practitioner   attached  agency  of  the  Department  of  Justice  (DOJ).    It  is  
  headed   by   an   Executive   Director   appointed   by   the  
SUBJECT  MATTERS  OF  ADR   president   upon   the   recommendation   of   the   Secretary   of  
All   adversarial   disputes   and   controversies   can   be   the   Justice.    
subject   matter   of   ADR,   except   those   which   by   law   or    
reasons  of  public  policy  are  declared  not  capable  of  being   Objectives,  Powers  and  Functions  of  the  OADR:    
subjected  to  ADR.    
 
Notes  by  Geraldine  L.  Yu   2  
Alternative  Dispute  Resolution         AUSL  2018-­‐2019  
 
1. To  promote,  develop  and  expand  the  used  of  ADR   Mediation  shall  be  closed  and  concluded:  
in   the   private   and   public   sectors   through   1. By   the   execution   of   a   settlement   agreement   by  
information,  education  and  communication;     the  parties;  
2. To   assist   the   government   to   monitor,   study   and   2. By   the   withdrawal   of   any   party   from   mediation;  
evaluate  the  use  by  the  public  and  private  sectors   or  
of   ADR,   and   recommend   to   Congress   needful   3. By   the   written   declaration   of   the   mediator   that  
statutory   changes   to   develop,   strengthen   and   any  further  effort  would  not  be  helpful.    
improve  ADR  practices  in  accordance  with  world    
standards;   Advantages  of  Mediation  
3. To   act   as   an   appointing   authority   of   mediators   The   following   assurances   are   provided   for   the   parties   in  
when  the  parties  agree  in  writing  that  it  shall  be   order  to  maintain  the  confidence  of  the  mediation  parties  
empowered  to  do  so;  and   in   the   mediation   process   and   encourage   them   to   avail   of  
4. To   compile   and   publish   a   list   or   roster   of   ADR   mediation  as  a  mode  of  settling  their  disputes:    
providers/practitioners,   and   to   compile   a   list   or   1. Confidentiality  in  the  mediation  process;  
roster   of   foreign   or   international   ADR   providers   2. Prompt,   economical   and   amicable   resolution   of  
or  practitioners.     disputes;  and  
  3. The   decision-­‐making   authority   rests   in   the  
CHAPTER  3   parties.  
MEDIATION  UNDER  THE  ADR  ACT  OF  2004    
  CONFIDENTIAL   AND   PRIVILEGED   NATURE   OF  
MEDIATION  IN  GENERAL   MEDIATION  COMMUNICATION  
  The   ADR   Act   of   2004   maintains   the   confidentiality   of  
Mediation   is   a   voluntary   process   un   which   a   mediation   process   by   declaring   that   all   information  
mediator,  selected  by  the  disputing  parties,  facilitates   obtained   through   mediation   proceedings   are   privileged  
communication   and   negotiation,   and   assists   the   and  confidential  in  character.    
parties  un  reaching  a  voluntary  agreement  regarding    
a  dispute.  (Definition  under  the  ADR  Act  of  2004)     One   way   by   which   the   ADR   Act   of   2004   is   enforcing   and  
  guaranteeing   this   privilege   is   by   declaring   certain  
Excluded   from   the   coverage   of   ADR   Act   are   the  court-­‐ information   as   confidential   and   therefore,   not   capable   if  
annexed   mediation   (CAM),   conciliation   conducted   by   being   disclosed.   Another   way   of   ensuring   the   privilege   is  
lupong   tagapamayapa   and   pangkat   ng   by   declaring   the   privileged   information   inadmissible   in  
tagapagkasundo   and   the   judicial   dispute   resolution   evidence.  
(JDR).    
  Confidential  Information  includes:  (not  exclusive)    
Classification  of  Mediation   1. Communication,   oral   or   written,   made   in   a  
-­‐Mediation   is   non-­‐evidentiary   or   non-­‐merit   based.   dispute   resolution   proceeding,   including   any  
Mediation   focuses   on   the   facilitation   of   memorandum,   note   or   work   product   of   the  
communication   and   negotiation   between   the   parties   neutral  or  non-­‐party  participant;  
in  order  to  encourage  them  to  voluntarily  settle  their   2. An   oral   or   written   statement   made   or   which  
dispute.     occurs   during   the   mediation   or   for   purposes   of  
  considering,   conducting,   participating,   initiating,  
Place  of  Mediation   continuing  or  reconvening  mediation  or  retaining  
-­‐To   promote   party   autonomy,   the   parties   are   given   a  mediator;  and  
the  freedom  to  agree  on  the  place  of  mediation.  In  the   3. Pleadings,   motions,   manifestations,   written  
absence   of   such   agreement,   the   place   of   mediation   statements   and   reports   filed   or   submitted   in  
shall   be   any   place   convenient   and   appropriate   to   all   arbitration  or  for  expert  evaluation.    
parties  (default  venue).    
  Legal  Effects  of  Confidential  and  Privileged  Nature  
Stages  in  Mediation   1. A   party,   mediator   or   non-­‐party   participant   may  
1. Opening  statement  of  the  mediator;   refuse   to   disclose   and   may   prevent   any   other  
2. Individual  narration  by  the  parties;   person  from  disclosing  confidential  information.  
3. Exchange  by  the  parties;   2. Confidential   information   shall   not   be   subject   to  
4. Summary  of  issues;   discovery   and   shall   be   inadmissible   in   any  
5. Generalization  and  evaluation  of  options;  and   adversarial   proceeding   whether   judicial   or   quasi-­‐
6. Closure.     judicial.  
The   foregoing   process   is   not   obligatory   and   the   parties,   3. In  an  adversarial  proceeding,  persons  involved  or  
under   the   principle   of   party   autonomy   may   choose   the   previously   involved   (party   or   non-­‐party)   in  
procedure  that  will  govern  their  mediation.     mediation   may   not   be   compelled   to   disclose  
  confidential   information   obtained   during  
  mediation.  
 

Notes  by  Geraldine  L.  Yu   3  

Alternative  Dispute  Resolution         AUSL  2018-­‐2019  
 
4. The  protection  under  the  ADR  Act  shall  continue   1. Where   the   mediation   occurred   or   has  
to  apply  even  if  a  mediator  is  found  to  have  failed   terminated,  or  where  settlement  was  reached;  or  
to  act  impartially.     2. As  permitted  to  be  disclosed  under  Sec.  13  of  the  
5. A  mediator  may  not  be  called  to  testify  to  provide   ADR   Act,   i.e.:   disclosure   of   known   facts   that  
information  gathered  in  mediation.   would   likely   affect   the   impartiality   of   the  
  mediator.  
Exceptions   based   on   Agreement,   Nature   of   Proceedings,    
Crime  or  Social  Justice   Waiver  of  Confidentiality  
The   privilege   does   not   attach   to   or   exist   in   the   ff   The  protection  of  confidentiality  and  privileged  nature  of  
communication:     mediation  communication  is  susceptible  to  waiver.    
1. Those  contained  in  an  agreement  evidenced  by  a    
record   authenticated   by   all   parties   to   the   Waiver  can  either  be  expressed  or  implied:  1.  By  failing  to  
agreement.   timely   object   to   an   objectionable   question   propounded  
2. Those   available   to   the   public   or   made   during   a   during   a   trial,   or   to   a   document   being   offered   in   evidence,  
session  of  mediation  which  is  open,  or  is  required   or   2.   By   testifying   or   presenting   a   witness   to   testify   on  
by  law  to  be  open  to  the  public.   confidential  and  privileged  information.    
3. A   threat   or   statement   of   a   plan   to   inflict   bodily    
injury  or  commit  a  crime  of  violence.     THE  MEDIATOR  
4. Communication   intentionally   used   to   plan,   A   mediator   who   refuses   to   act   may   withdraw   or   may   be  
attempt  to  commit,  or  commit,  a  crime,  or  conceal   compelled   to   withdraw   from   the   mediation   proceedings  
an  on-­‐going  crime  or  criminal  activity.   under  the  ff  circumstances:    
5. Communication   sought   or   offered   to   prove   or   1. If   any   of   the   parties   requests   the   mediator   to  
disprove   abuse,   neglect,   abandonment,   or   withdraw.  
exploitation   in   a   proceeding   in   which   a   public   2. The   mediator   does   not   have   the   qualifications,  
agency  is  protecting  the  interest  of  an  individual   training   and   experience   to   enable   him   to   meet  
protected  by  law.     the  reasonable  expectations  of  the  parties.    
6. Communication   sought   or   offered   to   prove   or   3. Mediator’s  impartiality  is  in  question.  
disprove   a   claim   or   complaint   of   professional   4. The   continuation   of   the   process   will   violate   an  
misconduct   or   malpractice   filed   against   a   ethical  standard.  
mediator  in  a  proceeding.   5. Safety   of   any   one   of   the   parties   will   be  
7. Communication   sought   or   offered   to   prove   or   jeopardized.  
disprove   a   claim   or   complaint   of   professional   6. Mediator  is  unable  to  provide  effective  services.  
misconduct   or   malpractice   filed   against   a   party,   7. In  case  of  conflict  of  interest.  
non-­‐party   participant,   or   representative   of   a   8. Other  instances  provided  for  under  the  IRR.    
party   based   on   conduct   occurring   during    
mediation.     Duties  &  Functions  of  Mediators  
  1. Prior  to  mediation  
Exceptions  based  on  Public  Policy   a. On   Competence-­‐   should   maintain   and  
For   reasons   of   public   policy,   the   privilege   cannot   be   continually   upgrade   his   professional  
invoked   for   evidence   that   is   shown,   before   a   court   or   competence   in   mediation   skills;   ensure  
administrative  agency,  after  a  hearing  in  camera.  There  is   that   his   qualifications,   training   and  
a  need  for  that  evidence  that  substantially  outweighs  the   experience   are   known   to   and   accepted  
interest  in  protecting  confidentiality.   by  the  parties.    
1. A  court  proceeding  involving  a  crime  or  felony;   b. On   Impartiality-­‐   mediator   should   make  
2. A   proceeding   to   prove   a   claim   or   defense   that   an   inquiry   that   is   reasonable   under   the  
under   the   law   is   sufficient   to   reform   or   avoid   a   circumstances   to   determine   whether  
liability  on  a  contract  arising  out  of  mediation.     there   are   known   facts   that   are  
  reasonable   individual   would   consider  
Privilege  of  the  Mediator   likely  to  affect  his  impartiality.    
-­‐The   mediator   himself   is   bound   by   the   confidential   and   2. During  the  mediation  
privileged   nature   of   mediation   communication.   He   is   a. Confidentiality    
required   to   keep   in   utmost   confidence   all   confidential   b. On   consent   and   self-­‐determination-­‐   shall  
information  obtained  in  the  course  of  mediation  process,   exert   reasonable   efforts   to   ensure   that  
and  to  discuss  issues  of  confidentiality  with  the  mediation   each   party   understands   the   nature   and  
parties  before  beginning  the  mediation  process.   character  of  the  mediation  proceedings.  
  c. On   promotion   of   respect   and   control   of  
A  mediator  may  not  be  compelled  to  provide  evidence  of  a   abuse   of   process-­‐   mediator   shall  
mediation   communication   or   testify   in   such   proceeding.   encourage   mutual   respect   between   the  
He   may   not   make   a   report,   assessment,   evaluation,   parties.  
recommendation,   or   other   authority   that   will   make   a    
ruling  on  a  dispute  that  is  the  subject  of  mediation  except:      

Notes  by  Geraldine  L.  Yu   4  

Alternative  Dispute  Resolution         AUSL  2018-­‐2019  
 
Mediator’s  Costs  and  Fees   The  ADR  Act  and  its  IRR  govern  voluntary  arbitration.    
In  an  ad   hoc  mediation,  the  parties  are  free  to  make  their    
own  arrangements  as  to  mediation  costs  and  fees.     International  Arbitration:  
In   an   institutional   mediation,   mediation   costs   shall   Parties’  place  of  business:   Is   in   different  
include   the   administrative   charges   of   mediation   states  
institution,  mediator’s  fees  and  associated  expenses.     Place  of  arbitration:   Outside  the  PH  
  Place  where  a  substantial  part  of  the   Outside  the  PH  
If   the   mediator   withdraws   from   the   mediation,   he   shall   obligation  is  to  be  performed:  
return  any  unearned  fee  and  unused  deposit.     Parties   have   expressly   agreed   that   the   subject   matter   of  
  the  arbitration  agreement  relates  to  more  than  1  country.    
MEDIATED  SETTLEMENT  AGREEMENT    
-­‐It  is  the  concluding  document  in  a  successful  mediation.     Domestic  Arbitration:  
  Parties’  place  of  business:    
In  whatever  form  it  may  be,  the  concluding  agreement  has   Place  of  arbitration:    
the  effect  of  res  judicata  and,  therefore,  binding  upon  the   Place  where  a  substantial  part  of  the    
parties  whether  or  not  it  has  been  submitted  to  the  court   obligation  is  to  be  performed:   Located  In  the  PH  
for  approval.     Place   where   the   subject   matter   of  
  the  dispute  is  mostly  connected:  
ROLE  OF  COUNSEL  IN  MEDIATION  
 
1. Collaborate   with   the   other   lawyer   in   working  
International   Commercial   Arbitration   (ICA)   vs   Foreign  
together  towards  a  common  goal  of  helping  their  
Arbitration  
clients   resolve   their   differences   to   their   mutual  
ICA   FOREIGN  
advantage.  
Seat   is   with   the   PH   even   if   Seat  is  outside  the  PH  even  
2. Encourage   and   assist   the   client   to   actively  
the   place   of   arbitration   is   if  the  place  of  arbitration  is  
participate  in  positive  discussions  and  cooperate  
outside  the  PH.   in  the  PH.  
in  crafting  an  agreement  to  resolve  their  dispute.  
 
3. Assist   the   client   to   comprehend   and   appreciate  
OBJECTIVES  OF  ARBITRATION  
the  mediation  process  and  its  benefits,  as  well  as  
The  basic  objective  of  arbitration  is  to  provide  speedy  and  
the   client’s   greater   and   personal   responsibility  
inexpensive   method   of   settling   disputes   by   allowing   the  
for   the   success   of   mediation   in   resolving   the  
parties   to   avoid   the   formalities,   delay,   expense   and  
dispute.    
aggravation   which   commonly   accompany   ordinary  
4. Confer   and   discuss   with   the   client   the   mediation  
litigation,   especially   litigation   which   goes   through   the  
process  and  substance.    
hierarchy  of  courts.    
 
 
CHAPTER  4  
ARBITRATOR  
ARBITRATION  IN  GENERAL  
An  arbitrator  is  the  person  appointed  to  render  an  award,  
 
alone  or  with  others,  in  a  dispute  that  is  the  subject  of  an  
CONCEPT  OF  ARBITRATION  
arbitration  agreement.    
 
 
Arbitration   is   a   voluntary   dispute   resolution   process   in  
Voluntary   arbitrators,   by   the   nature   of   their   functions,   act  
which   one   or   more   arbitrators,   appointed   in   accordance  
in   quasi-­‐judicial   capacity,   such   that   their   decisions   are  
with   the   agreement   of   the   parties   or   rules   promulgates  
within   the   scope   of   judicial   review.   A   voluntary   arbitrator  
pursuant   to   the   ADR   Act,   resolve   a   dispute   by   rendering  
has  been  characterized  as  a  quasi-­‐judicial  instrumentality.    
an  award.    (Definition  under  the  ADR  Act  of  2004)    
 
 
ARBITRATION  AGREEMENT  
ARBITRATION   MEDIATION  
-­‐The  agreement  of  the  parties  to  submit  to  arbitration  all  
It  is  the  arbitrator  that   It  is  the  parties  
or  certain  disputes  which  have  arisen  or  which  may  arise  
decides  the  dispute  and   themselves  who  enter  
between   them   in   respect   of   a   defined   legal   relationship,  
renders  an  arbitral  award   into  and  execute  a  
whether   contractual   or   not.   By   nature,   an   arbitration  
to  conclude  the  arbitral   mediated  settlement  
agreement   is   contractual,   it   should   have   the   essential  
proceeding.   agreement  to  conclude  
requisites  of  a  contract  (Consent,  Object,  Cause).  
the  mediation  
 
proceeding.  
There   are   2   modes   of   submitting   a   dispute   or   controversy  
 
to  arbitration:  1.  Agreement  to  submit  to  arbitration,  and  
KINDS  OF  ARBITRATION  
2.  Submission  agreement.    
1. Voluntary-­‐   parties   freely   consent   in   advance   to  
 
abide  by  the  arbitral  award  
Agreement  to  submit  to   Submission  Agreement  
2. Compulsory-­‐   where   the   parties   are   compelled   to  
Arbitration  
accept   the   resolution   of   their   dispute   through  
Some   future   dispute   An  agreement  to  submit  an  
arbitration  by  a  third  party.    
usually  stipulated  upon  in  a   existing   matter   of  
 
civil   contract   between   the   difference  to  arbitrators.    
Notes  by  Geraldine  L.  Yu   5  
Alternative  Dispute  Resolution         AUSL  2018-­‐2019  
 
parties   Under   the   Special   Rules   of     Court   on   ADR,   the   court   may  
  issue   an  order   directing   the   inclusion   in   the   arbitration   of  
An  arbitration  agreement  is  a  formal  contract;  its  validity   those   parties   who   are   not   bound   by   the   arbitration  
is   dependent   on   the   contract   being   executed   in   a   agreement   but   who   agree   to   such   inclusion   provided  
particular   form.   It   shall   be   in   writing   and   subscribed   by   those   originally   bound   by   it   do   not   object   to   their  
the  party  to  be  charged,  or  by  his  lawful  agent.  It  may  be   inclusion.    
included   in   the   container   contract   in   which   case,   it   is    
referred   to   as   an   arbitration   clause   or   a   compromissoire,   Non-­‐compliance   with   the   arbitration   agreement   renders  
or  may  be  constituted  in  a  separate  contract.     null  and  void  all  the  judicial  proceedings  conducted  after  
  the  case  should  have  been  referred  to  arbitration.    
DOCTRINE  OF  SEPARABILITY    
Otherwise   known   as   the   doctrine   of   severability,   this   CHAPTER  5  
doctrine   enunciates   that   an   arbitration   agreement   is   INTERNATIONAL  COMMMERCIAL  ARBITRATION  
independent  of  the  main  contact  even  if  it  is  contained  in   UNDER  THE  ADR  ACT  OF  2004  AND  ITS  IRR  
an  arbitration  clause.      
  International  Arbitration:    
DUE  PROCESS  IN  ARBITRAL  PROCEEDINGS   Parties’  place  of  business:   Is   in   different  
Principles  of  Administrative  Due  Process  equally  apply  to   states  
arbitral  proceedings.     Place  of  arbitration:   Outside  the  PH  
  Place  where  a  substantial  part  of  the   Outside  the  PH  
JUDICIAL  REVIEW  AND  COURT  INTERVENTION   obligation   is   to   be   performed   or   the  
Three  types  of  Judicial  Intervention:     place   with   which   the   subject   matter  
1. Judicial  Assistance  in  Arbitration   of  the  dispute  is  mostly  connected:  
-­‐       Allows   the   parties   in   an   arbitration   to   secure   Parties   have   expressly   agreed   that   the   subject   matter   of  
from   the   courts   orders   or   processes   that   will   the  arbitration  agreement  relates  to  more  than  1  country.    
aid  in  the  conduct  of  arbitration.    
2. Judicial  Review  of  Arbitral  Awards   Arbitration  is  commercial  if  it  covers  matters  arising  form  
-­‐    Involves  the  passing  upon,  to  the  extent  allowed   all   relationships   of   a   commercial   nature,   whether  
and   on   grounds   provided   for   by   law,   the   contractual  or  not.    
propriety  of  the  arbitral  award.    
3. Judicial  Review  of  Court  Decisions  in  ADR  Related   International   Commercial   Arbitration   (ICA)   vs   Foreign  
cases   Arbitration  
-­‐        Involves  the  remedies  available  from  decisions   ICA   FOREIGN  
or   orders   of   the   RTC   and   the   CA   rendered   in   An   ICA   with   the   PH   as   its   An   ICA   whose   seat   is  
the  first  two  types  of  judicial  intervention.   seat   is   governed   by   the   outside   the   PH   is   a   foreign  
  ADR  Act  and  the  IRR,    even   arbitration  even  if  the  place  
Decisions   of   an   arbitral   award   are   subject   to   judicial   if  the  place  of  arbitration  is   of  arbitration  is  in  the  PH.  
review.     outside  the  PH.  
   
A   review   by   the   SC   is   not   a   matter   of   right,   but   of   sound   COVERAGE  OF  IRR  PROVISIONS  ON  ICA  
judicial  discretion,  which  will  be  granted  only  for  serious   The   provisions   of   Chapter   4   of   the   IRR,   dealing   with   the  
and  compelling  reasons  resulting  in  grave  prejudice  to  the   subject   of   ICA,   are   applicable   only   to   ICA   conducted   in  
aggrieved   party.   The   error   imputed   to   the   CA   must   be   accordance   with   Philippine   Law   covering   disputes   that  
grounded  upon  any  of  the  prescribed  grounds  for  review   are   not   prohibited   by   Philippine   law   to   be   submitted   for  
or  be  closely  analogous  thereto.     arbitration.   This   may   also   be   applied   for   ICA   conducted  
  outside  the  Philippines  if  they  are  adopted  as  the  rules  of  
Arbitration   and   court   action   are   not   incompatible.   They   procedure  by  the  parties  in  the  exercise  of  their  privileges  
may  proceed  at  the  same  time  and  independently  of  each   of  party-­‐autonomy  and  self-­‐determination.    
other.  They  may  even  complement  each  other.      
  The   provisions   of   the   IRR   on   ICA   are   default   rules,  
As  a  rule,  only  those  parties  who  have  agreed  to  submit  a   meaning   they   are   applicable   only   in   the   absence   or   in  
controversy  to  arbitration  may  be  compelled  to  submit  to   default  of  applicable  provisions  contained  in:    
arbitration,  including  their  heirs  and  assignees.  However,   1. An   agreement   in   force   between   the   Philippines  
in   a   jurisprudence,   the   SC   held   that   corporate   and  other  state  or  states;  and  
representatives   may   be   compelled   to   submit   to   2. An   agreement   between   the   parties   on   the  
arbitration   proceedings   pursuant   to   a   contract   entered   applicable  rules.    
into   by   a   corporation   they   represent   if   there   are    
allegations  of  bad  faith  or  malice  in  their  acts  warranting   RULES  OF  INTERPRETATION    
the  piercing  of  the  veil  of  corporate  fiction.     1. Interpretation  of  the  ADR  Act  
    -­‐       Shall   have   due   regard   to   the   policy   of   the   law  
favoring  arbitration.  
Notes  by  Geraldine  L.  Yu   6  
Alternative  Dispute  Resolution         AUSL  2018-­‐2019  
 
2. Interpretation  of  the  Model  Law   APPOINTING  AUTHORITY  IN  ICA  
-­‐        Concepts  and  principles  under  the  Model  Law   The   appointing   authority   in   an   ICA   is   the   person   or  
should   be   understood   in   the   light   of   their   institution  named  in  the  arbitration  agreement  as  such,  or  
international  usage  rather  than  their  ordinary   the  regular  institution.  The  appointing  authority  in  an  ICA  
domestic  or  international  usage.     has  the  following  functions:    
3. Interpretation  of  the  IRR   1. Take   the   necessary   measures   to   appoint   an  
  arbitrator  
RULES   ON   RECEIPT   OF   WRITTEN   COMMUNICATIONS   2. Decide   on   the   challenge   against   an   arbitrator   if  
IN  ICA   the  arbitral  tribunal  rejects  the  challenge  
In   default   of   such   rules,   communication   is   deemed   3. Consider  the  qualifications  of  an  arbitrator.  
received:      
1. If  it  is  delivered  to  the  addressee  personally  or  at   The  default  appointing  authority  in  an  ad  hoc  arbitration  
his   place   of   business,   habitual   residence   or   is  the  IBP  National  President  or  his  representative.    
mailing  address;  or    
2. If   there   is   none,   if   it   is   delivered   by   registered   ARBITRATORS  AND  ARBITRAL  TRIBUNALS  IN  ICA  
letter   or   any   other   means   which   provide   a   record   In  line  with  the  principle  of  party  autonomy,  the  parties  to  
of   the   attempt   to   deliver   it,   to   the   last   known   an   ICA   are   free   to   determine   the   number   of   their  
place   of   business,   habitual   residence   or   mailing   arbitrators  and  the  procedure  for  their  appointment.  The  
address.   default  number  of  arbitrators  is  3.  The  default  procedure  
Written  communication  is  deemed  received  on  the  day  it   for  the  appointment  of  arbitrators  is:    
is  delivered  and  not  on  the  day  the  mail  is  posted  with  the   1. In   an   arbitration   with   3   arbitrators,   each   party  
post  office.     shall   appoint   1   arbitrator,   and   both   appointed  
  arbitrators   shall   appoint   the   3rd   arbitrator,   failing  
WAIVER  OF  THE  RIGHT  TO  OBJECT  IN  ICA   which   the   appointment   shall   be   made   by   the  
Objections   to   non-­‐compliance   with   the   rules   or   any   appointing  authority.  
requirement   under   the   arbitration   agreement   must   be   2. In   an   arbitration   with   a   sole   arbitrator,   the  
raised  without  undue  delay  or  within  the  time  prescribed   arbitrator  shall  be  appointed,  upon  the  request  of  
therefor,   failing   which,   the   right   to   object   is   deemed   the  party,  by  the  appointing  authority.    
waived.   This   rule   is   based   on   the   equitable   doctrine   of    
estoppel.     The   appointing   authority   shall   consider   the   ff.   factors   in  
  the  appointment  of  arbitrators:    
CONFIDENTIALITY  IN  ICA   1. Qualifications   required   by   the   agreement   of   the  
The   proceedings,   records,   evidence,   and   the   arbitral   parties;  
award   in   an   ICA   are   confidential   and   shall   not   be   2. Considerations   as   are   likely   to   secure   the  
disclosed  except:     appointment   of   an   independent   and   impartial  
1. With  the  consent  of  the  parties;  or   arbitrator;  and  
2. For  the  limited  purpose  of  disclosing  to  the  court   3. In   the   case   of   sole   or   3rd   arbitrators,   the  
relevant   documents   in   cases   where   resort   to   the   advisability   of   appointing   an   arbitrator   of   a  
court  is  allowed.   nationality   other   than   those   of   the   parties   (to  
  avoid  bias)  
DUE  PROCESS  IN  ICA    
The   parties   shall   be   treated   equally   and   shall   be   given   full   If  any  party  is  not  satisfied  with  the  appointment,  he  may  
opportunity   to   present   their   sides.   The   essence   of   due   file   a   petition   in   court   challenging   the   appointment   of  
process  lies  in  the  reasonable  opportunity  to  be  heard.     arbitrators.    
   
PLACE  OR  VENUE  OF  ICA   Grounds  for  Challenge  of  an  Arbitrator  in  ICA  
-­‐Shall  be  determined  by  the  parties.   An   arbitrator   may   be   challenged   only   if   circumstances  
-­‐The  default  place  of  arbitration  shall  be  in  Metro  Manila   exist  that  give  rise  to  a  justifiable  doubt  as  to  his:    
unless  the  arbitral  tribunal  decides  on  a  different  place  of   1. Impartiality  or  independence;  or  
arbitration.   2. Possession   of   the   qualifications   agreed   upon   by  
  the  parties.    
COMMENCEMENT  OF  ICA  PROCEEDINGS    
-­‐To  be  determined  by  the  parties.     A  party  who  appointed  an  arbitrator  shall  not  be  allowed  
-­‐The   default   date   of   commencement   of   arbitration   is   the   to   challenge   and   arbitrator.   This   rule   is   grounded   on  
date  on  which  a  request  for  that  dispute  to  be  referred  to   estoppel.   However,   estoppel   does   not   apply   where   the   act  
arbitration  is  received  by  the  respondent.   of  appointing  was  performed  without  the  knowledge.  
   
LANGUAGE  OF  ICA   Procedure  for  the  Challenge  in  ICA  
-­‐Determined  by  the  parties   The  Default  procedure:    
-­‐The  default  language  is  English.   1. The   challenging   party   shall   send   a   written  
  statement  of  the  reasons  for  the  challenge  to  the  

Notes  by  Geraldine  L.  Yu   7  

Alternative  Dispute  Resolution         AUSL  2018-­‐2019  
 
arbitral   tribunal   within   15   days   after   becoming   ruling  for  review  by  the  RTC  within  30  days  form  receipt  
aware   of   the   circumstance   constituting   the   of  the  ruling,  and  the  decision  of  the  court  therein  shall  be  
ground   for   challenge.   Thereafter,   the   arbitral   immediately   executor   and   not   be   subject   to   a   motion   for  
tribunal  shall  decide  the  challenge.   reconsideration  or  appeal.    
2. If  the  challenge  before  the  arbitral  tribunal  is  not    
successful,  the  challenging  party  may  request  the   If   the   arbitral   tribunal   defers   the   resolution   of   the  
appointing   authority   within   30   days   from   notice   jurisdictional   issue   which   will   be   resolved   as   part   of   the  
of   the   decision   rejecting   the   challenge,   to   decide   arbitral   award,   the   order   of   deferment   is   not   susceptible  
the   challenge,   which   decision   shall   be   of  judicial  relief.    
immediately   executor,   and   not   be   subject   to   a    
motion  for  consideration  or  appeal.     Jurisdiction  Over  the  Parties  
  The  jurisdiction  of  an  arbitral  tribunal  over  the  person  of  
Procedure  in  Case  the  Arbitrator  Fails  to  Act  in  ICA     the  parties  in  an  arbitration  is  conferred  by  the  consent  of  
If   an   arbitrator   in   an   ICA   becomes   de   jure   or   de   facto   the  parties  to  submit  to  arbitration.  This  consent  may  be  
unable   to   perform   his   functions   or   fails   to   act   without   contained   either   in   an   agreement  to  submit  to  arbitration  
undue  delay,  his  mandate  terminates:     (pre-­‐causal)   which   is   entered   into   at   the   time   of   the  
1. If  he  withdraws;  or   execution  of  an  arbitration  agreement  or  a  contract  which  
2. If  the  parties  agree  on  the  termination.   includes   an   arbitration   clause,   or   in   a   submission  
  agreement   (present   causal)   between   parties   who   do   not  
JURISDICATION  OF  ARBITRAL  TRIBUNAL  IN  ICA   have   an   arbitration   agreement   or   a   contract   with   an  
Jurisdiction  is  the  right  to  act  or  the  power  and  authority   arbitration  clause  but  who  nonetheless  agree  to  submit  an  
to   hear   and   determine   a   cause.   In   the   case   of   arbitral   existing  dispute  or  controversy  to  arbitration.    
tribunal,   it   is   the   authority   by   virtue   of   which   it   can    
resolve   disputes   in   an   arbitration   proceeding   by   rending   INTERIM  MEASURES  IN  ICA  
an  award  thereon.     1. Request   shall   be   in   writing   transmitted   by  
  reasonable   means   to   the   arbitral   tribunal   and   the  
Jurisdiction  over  the  Subject  Matter   adverse  party  
-­‐Conferred  by  law.   2. Relief   may   be   granted   in   order   to   prevent  
-­‐There  are  2  instances  when  a  court,  quasi-­‐judicial  agency   irreparable  loss  
or  arbitral  tribunal  acts  without  jurisdiction:     3. Grant   of   interim   measures   may   be   conditioned  
1. When  there  is  lack  of  jurisdiction;     upon  the  provision  of  security  
-­‐        Challenge  should  be  raised  not  later  than  the   4. The  order  either  granting  or  denying  the  request  
submission  of  the  statement  of  defense  in  the   for   interim   measures   shall   be   binding   upon   the  
answer   or   in   a   motion   to   dismiss,   otherwise,   parties    
the  objection  is  deemed  waived.     5. A  party  who  refuses  to  comply  with  the  order  for  
2. When  there  is  excess  of  jurisdiction.   an   interim   measure   shall   be   liable   for   damages  
-­‐        A  Party  may  raise  the  objection  as  soon  as  the   resulting  from  non-­‐compliance  
excess  of  jurisdiction  over  a  matter  alleged  to   6. Interim   measure   may   be   requested   from   the  
be  beyond  the  scope  of  its  authority  becomes   courts   in   accordance   with   the   Special   Rules   of  
apparent;   otherwise,   the   objection   will   be   Court  on  ADR.  
deemed  waived  unless  the  delay  is  valid.      
  LEGAL  REPRESENTATION  IN  ICA  
Judicial  Review  of  Jurisdictional  Issue   In   an   ICA   conducted   in   the   PH,   a   party   may   be  
The   arbitral   award   if   an   arbitral   tribunal   which   does   not   represented   by   a   person   of   his   choice   even   if   a   non-­‐
have  jurisdiction  over  the  subject  matter  is  null  and  void   lawyer,   but   he   shall   not   be   authorized   to   appear   as  
ab   initio   unless   there   is   a   waiver   of   the   absence   of   counsel  in  any  PH  court  or  any  quasi-­‐judicial  body  even  if  
jurisdiction.     such  appearance  is  in  relation  to  the  arbitration  in  which  
  he  appears.    
The  arbitral  tribunal  whose  acts  are  challenged  for  lack  or    
excess  of  jurisdiction  may  either:   RULES  OF  PROCEDURE  IN  ICA  
1. Consider  the  challenge  as  a  preliminary  question   Determination  of  Rules  of  Procedure  
or   a   threshold   issue   and   render   a   ruling   thereon   General  Rule:  the  parties  in  an  ICA  are  free  to  determine  
before  conducting  the  arbitration,  or   the  rules  that  will  govern  their  arbitration  proceedings.    
2. Defer   the   resolution   thereof   until   the   rendition   of   In   default   thereof:   the   arbitral   tribunal   shall   apply   the  
the   arbitral   award   and   the   resolution   of   the   UNCITRAL  Arbitration  Rules.    
jurisdictional   issue   shall   form   part   thereof    
especially   in   instances   when   the   jurisdictional   The   procedure   in   ICA   in   default   of   an   agreement   of   the  
challenge  does  not  appear  to  be  indubitable.     parties  is  as  follows:    
  1. Statement  of  Claims  
If  the  arbitral  tribunal  renders  a  preliminary  ruling  on  the  
jurisdictional   issue,   an   aggrieved   party   may   elevate   the  

Notes  by  Geraldine  L.  Yu   8  

Alternative  Dispute  Resolution         AUSL  2018-­‐2019  
 
-­‐ The   claimant   shall   state   the   facts   supporting   1. The  petitioner  furnishes  proof  that  there  was:  
his   claim,   the   issues   and   relief   or   remedy   a. Defect  in  the  Arbitration  Agreement  
sought   b. Violation  of  Due  process  
2. Statement  of  Defenses   c. Lack  or  excess  of  jurisdiction  on  the  part  
3. Default  of  the  Parties   of  the  arbitral  tribunal  
-­‐   Default   of   the   claimant   for   failure   to   d. The  arbitration  agreement  was  violated  
communicate   his   statement   of   claims   results   2. The  court  finds  that:    
in  the  termination  of  the  proceedings.     a. The  subject  of  the  dispute  is  not  capable  
-­‐         The   default   of   the   respondent   to   communicate   of  settlement  under  the  laws  of  the  RP    
his   statement   of   defenses   shall   not   terminate   b. The   award   is   in   conflict   with   public  
the   proceedings   and,   instead,   it   shall   proceed   policy  of  the  PH.  
without   such   failure   being   considered   as   an    
admission  of  the  claimant’s  allegations.     Time  for  Filing  the  Petition  for  Setting  Aside  
-­‐     Failure   of   any   party   to   appear   during   the   Petition   for   setting   aside   must   be   filed   within   3   months  
hearings,   or   to   produce   documents,   amounts   from  the  date  on  which  the  party  making  that  application  
to   a   waiver   thereof   and   the   arbitral   tribunal   received   the   award,   or   from   the   date   on   which   a   request  
shall  render  an  award  on  the  basis  of  evidence   for   correction,   interpretation   or   additional   award   has  
submitted  to  it.     been  disposed  of  by  the  arbitral  tribunal.    
4. Amendment  of  Claims  or  defenses    
5. Hearings   RECOGNITION   AND   ENFORCEMENT   OF   ICA   AND  
-­‐  In  the  conduct  of  hearings,  the  arbitral  tribunal   FOREIGN  ARBITRAL  AWARDS  
can   employ   the   following   processes   in   taking   1. Recognition-­‐   means   by   which   the   PH   court   gives  
evidence:   legal   acknowledgement   to   a   foreign   arbitral  
a) Court  Assistance  in  taking  evidence   award   and   confers   upon   it   the   capacity   to   be  
b) Subpoena   enforced   under   PH   law   through   PH   legal  
c) Expert   processes  
6. Conclusion/Closure   2. Confirmation-­‐   Judicial   affirmation   of   a   domestic  
-­‐  May  be  concluded  in  either  of  2  ways:     arbitral  award.  
a) By  an  award  or  settlement   3. Enforcement-­‐     the   execution   and   implementation  
b) Termination   of   the   foreign   arbitral   award   through   PH   legal  
  processes.  
COSTS  IN  ICA    
1. Fees  of  the  arbitral  tribunal   Jurisdiction,  Venue  and  Nature  of  Proceedings  
2. Travel  and  other  expenses   Jurisdiction   over   proceedings   for   the   recognition   and  
3. Costs  of  Expert  Advise   enforcement  of  ICA  and  foreign  arbitral  awards,  is  vested  
4. Travel  and  other  expenses  of  witnesses   by  the  ADR  Act  on  the  RTC.    
5. Costs  for  legal  representation  and  assistance    
6. Fees  and  expenses  of  the  appointing  authority.   The  venue  of  the  proceedings  shall  be:    
In   principle,   the   cost   shall   be   borne   by   the   unsuccessful   1. Where  the  arbitration  proceedings  are  conducted  
party,   but   the   Arbitral   tribunal   may   apportion   the   costs   2. Where   the   asset   to   be   attached   or   levied   upon,   or  
among  the  parties  if  reasonable  under  the  circumstances   the  act  to  be  enjoined,  is  located    
of  the  case.     3. Where  any  of  the  parties  to  the  dispute  resides  or  
  has  his  place  of  business  
CORRECTION  AND  INTERPRETATION  OF  ICA  AWARD   4. In  the  NCR,  at  the  option  of  the  applicant.    
An  arbitral  award  may  be  amended  in  any  of  the  following    
manners:     GROUNDS   FOR   REFUSING   RECOGNITION   AND  
1. Agreement  of  the  Parties   PROCEDURE   FOR   RECOGNITION   OF   CONVENTION   AS-­‐
2. Quantification  of  the  costs  and  the  determination   IN  CONVENTION  AWARDS    
of  the  party  liable  therefor,  or  the  division  thereof   In   general,   the   conditions   and   requisites   for   the  
between  the  parties   recognition   and   enforcement   of   foreign   judgments   in   the  
3. Correction   of   typographical   and   similar   errors   PH  are:    
initiated  by  a  party   1. Proof  of  foreign  judgment  
4. Correction   of   a   typographical   error   initiated   by   2. The   judgment   must   be   on   a   civil   or   commercial  
the  arbitral  tribunal   matter  
5. Interpretation  of  the  award   3. There  must  be  no  lack  of  jurisdiction,  no  want  of  
6. Additional  Award   notice,  no  collusion,  no  fraud,  no  clear  mistake  of  
Only  arbitral  tribunal  may  correct  an  ICA  award.     law  or  fact  
  4. The   judgment   must   not   contravene   a   sound   and  
SETTING  ASIDE  AN  ICA  AWARD   established  public  policy  of  the  forum  
The   court   may   set   aside   an   ICA   Arbitral   Award   provided   5. The   judgment   must   be   res   judicata   in   the   state  
that:     that  rendered  it.    

Notes  by  Geraldine  L.  Yu   9  

Alternative  Dispute  Resolution         AUSL  2018-­‐2019  
 
   
-­‐ Convention   Award-­‐   is   a   foreign   arbitral   award   PLACE  OR  VENUE  OF  ARBITRATION  
made  in  a  state  which  is  a  party  to  the  new  york   -­‐To  be  determined  by  the  parties  
convention.  Its  recognition  and  enforcement  shall   -­‐If   there   is   no   such   agreement,   the   arbitration   shall   be  
be   governed   by   the   New   York   Convention   as   conducted   in   Metro   Manila,   unless   the   arbitral   tribunal  
implemented  by  the  IRR.     shall   decide   on   a   different   place   taking   into   account   the  
-­‐ Non-­‐convention   Award-­‐   is   a   foreign   arbitral   circumstances  of  the  case  and  convenience  of  the  parties.    
award  made  in  a  state  which  is  not  a  party  to  the    
New  York  Convention.  It  cannot  be  recognized  or   LANGUAGE    
enforced  under  the  ADR  Act  of  2004  but  it  may  be   -­‐Default   language   in   domestic   arbitration   shall   be   Filipino  
deemed   as   a   presumptive   evidence   of   right   as   or  English.    
between   the   parties   in   accordance   with   sec   48,    
rule  39  of  the  1997  Rules  of  Civil  Procedure   CONFIDENTIALITY  
-­‐ As-­‐In  Convention  Award-­‐   one   which   is   made   in   a   GR:  Confidential  Information  are  privileged  and  shall  not  
state   which   is   not   a   party   to   the   New   York   be  published  
Convention   but   which,   by   reason   of   comity   and   XPN:  1.  With  the  consent  of  the  parties  
reciprocity,  may  be  recognized  and  enforced  as  if                      2.   for   the   limited   purpose   of   disclosing   to   the   court                  
it  is  a  convention  award.   relevant  documents  where  resort  to  court  is  allowed.    
   
Grounds  for  Refusing  Recognition   RULES  ON  RECEIPT  OF  WRITTEN  COMMUNICATIONS  
-­‐Similar   to   the   grounds   for   the   setting   aside   of   an   Written   communications   among   the   parties   and   the  
arbitral  award  in  an  ICA  (refer  to  page  9)   arbitrators   shall   be   delivered   personally,   by   registered  
  mail   or   courier   service,   and   shall   be   deemed   to   be  
Procedure   for   Recognition   of   Convention   and   As-­‐in   received   on   the   date   it   is   delivered   at   the   addressee’s  
Convention  Awards     address   of   record,   place   of   business,   residence   or   last  
1. Filing  of  Application   known  address.  
-­‐       shall   filed   with   the   RTC   the   original   or   duly    
authenticated   copy   of   the   award   and   the   Use   of   electronic   mail,   facsimile   transmission   or   other  
original  arbitration  agreement.     electronic  means  is  permitted  as  long  as  there  is  a  record  
2. Recognition   of   the   sending   and   receipt   of   the   communication   at   the  
3. Consolidation/concurrent  hearings   recipient’s   mail   box,   and   such   shall   be   deemed   to   have  
4. Rejection/suspension   been  received  on  the  same  date  of  its  transmittal.    
5. Appeals    
  WAIVER  OF  OBJECTIONS    
LEGAL  EFFECTS  OF  NON-­‐CONVENTION  AWARDS   A   party   may   be   estopped   from   questioning   non-­‐
A  non-­‐convention  award  which  does  not  qualify  as  an  as-­‐ compliance   or   is   deemed   to   have   waived   his   objection  
in  convention  award  is  either  “conclusive  upon  the  title  of   thereto   if   he   fails   to   raise   the   objection   without   delay   or  
a   thing”   or,   at   the   best,   is   a   “presumptive   evidence   of   a   within  the  time  prescribed  therefor  (30  days  if  no  period  
right   as   between   the   parties   and   their   successors   in   is   prescribed),   provided   he   knows   of   such   non-­‐
interest   by   subsequent   title,”   provided   there   is   no   want   of   compliance.  
jurisdiction,  no  want  of  notice,  no  collusion,  no  fraud  and    
no  clear  mistake  of  law.     EXTENT  OF  COURT  INTERVENTION  
  GR:  No  court  shall  intervene  
CHAPTER  6   XPN:   Instances   allowed   by   the   Arbitration   Law,   ADR   Act  
DOMESTIC  ARBITRATION   and  Special  ADR  Rules  
  a) 30   days   having   elapsed   from   receipt   of   the  
DOMESTIC  ARBITRATION   request   for   arbitration,   the   appointing  
Parties’  place  of  business:     authority   fails   to   perform   functions   imposed  
Place  of  arbitration:     under  Art.  5.10(c  and  d),  5.11,  5.13  
Place  where  a  substantial  part  of  the      
obligation  is  to  be  performed:   Located  In  the  PH   REPRESENTATION  
Place   where   the   subject   matter   of   A   party   may   appear   by   himself   or   be   represented   or  
the  dispute  is  mostly  connected:   assisted   by   a   person   of   his   choice,   provided   that   such  
  representative,   unless   admitted   to   the   practice   of   law   in  
DISPUTES   COVERED   BY   RULES   ON   DOMESTIC   the   PH,   shall   not   be   authorized   to   appear   as   counsel   in  
ARBITRATION   any  PH  court  or  quasi-­‐judicial  body.  A  party  desiring  to  be  
The   provisions   and   rules   on   domestic   arbitration   cover   represented   by   a   counsel   shall   notify   the   other   party   of  
both   commercial   and   non-­‐commercial   disputes   provided   such  intention  at  least  5  days  prior  to  the  hearing.    
they   are   susceptible   of   arbitration   and   do   not   fall   within    
the  exclusive  original  arbitral  jurisdiction  of  quasi-­‐judicial   ARBITRATION  AGREEMENT  
agencies.    

Notes  by  Geraldine  L.  Yu   10  

Alternative  Dispute  Resolution         AUSL  2018-­‐2019  
 
The   arbitration   agreement   must   satisfy   the   essential   3. He   has   personal   bias   which   might   prejudice   the  
requisites   of   a   valid   contract.   It   must   be   in   writing   and   right  of  any  party  to  a  fair  and  impartial  award;    
subscribed   by   the   party   sought   to   be   charged,   or   by   his   4. He   has   been   selected   to   act   as   champion   or   to  
lawful  agent.   advocate  a  party’s  cause.    
   
The   consent   to   arbitrate   can   either   be   a   pre-­‐causal   Procedure  for  the  Appointment  of  Arbitrators  
consent   (agreement   to   submit   to   arbitration)   such   as   Parties  in  a  Domestic  Arbitration  are  free  to  agree  on  the  
when   the   parties   agree   in   a   contract   to   settle   by   procedure  for  the  appointment  of  arbitrators  except  that,  
arbitration   a   controversy   that   will   arise   between   them;   or   in   order   to   prevent   undue   advantage,   an   agreement   or  
a  present  causal  consent  (submission  agreement)  such  as   clause   giving   a   party   the   power   to   choose   more  
when  the  controversy  already  exists  between  the  parties   arbitrators  than  the  other  is  void.    
at   the   time   of   the   submission   to   arbitration.     The    
submission   and   contract   shall   be   valid,   enforceable   and   [skipped   rest   of   chapter   6,   stopped   at   page   124   of   the  
irrevocable  except  upon  grounds  provided  by  law  for  the   book  of  Robeniol]    
revocation  of  contracts.  
 
The  arbitration  law  and  the  IRR  emphasize  the  incapacity  
of  a  party.  The  incapacity  of  a  party  will  bar  the  dispute  to  
enter   into   an   arbitration,   unless   referral   is   made   by   a  
general  guardian  or  a  guardian  ad  litem.    
 
COMMENCEMENT  OF  ARBITRAL  PROCEEDINGS  
In   general,   the   commencement   of   arbitral   proceedings   is  
determined   by   the   prior   arbitration   agreement   between  
the  parties.    
 
The   following   are   the   specific   rules   for   the  
commencement  of  domestic  arbitration:    
1. In   an   institutional   arbitration   where   there   is   no  
prior   arbitration   agreement,   it   is   commenced   in  
accordance   with   the   arbitration   rules   of   the  
institutional  arbitrator.  
2. In   an   ad   hoc   arbitration   where   there   is   prior  
arbitration  agreement,  it  is  commenced  upon  the  
delivery   by   the   claimant   to   the   respondent   of   a  
demand  for  arbitration.    
Where  there  is  no  prior  arbitration  agreement,  it  
is  initiated  by  one  party  through  a  demand  upon  
the   other   to   submit   their   dispute   to   arbitration,  
and   arbitration   is   deemed   commenced   upon   the  
agreement   by   the   other   party   to   submit   the  
dispute  to  arbitration.    
 
ARBITRATORS  AND  ARBITRAL  TRIBUNALS  
Number  of  Arbitrators  
GR:  3  Arbitrators  for  domestic  arbitration  
XPN:  Unless  the  parties  have  agreed  otherwise.  
 
Qualifications  and  Disqualifications  
An  Arbitrator  must  be:    
1. of  legal  age  
2. 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   6th  
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;  

Notes  by  Geraldine  L.  Yu   11