PIArb: Commercial Arbitration Handbook
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About this ebook
The Philippine Institute of Arbitrators (PIArb) is the first learned society in the Philippines dedicated to both promoting the private dispute resolution within the country as well as pursuing initiatives to enable the country to serve as a viable and practical venue for alternative dispute resolution.
This handbook is PIArb’s official introductory reference to the practice and process of commercial arbitration.
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PIArb - Philippine Institute of Arbitrators PIArb
PIArb
COMMERCIAL
ARBITRATION
HANDBOOK
COMMERCIAL
ARBITRATION
HANDBOOK
Philippine Institute of
Arbitrators (PIArb)
Commercial Arbitration Handbook
A Publication of the Philippine Institute of Arbitrators (PIArb)
Copyright to this digital edition © 2016 by
Philippine Institute of Arbitrators and Anvil Publishing, Inc.
All rights reserved. No part of this publication may be reproduced, stored in
a retrieval system, or transmitted in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the written
permission of the copyright owners.
Published and exclusively distributed by
ANVIL PUBLISHING, INC.
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1550 Philippines
Trunk Lines: (+632) 477-4752, 477-4755 to 57
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marketing@anvilpublishing.com
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www.anvilpublishing.com
Book design by Francis Manio (outside) and Ysa Garcia (inside)
Photograph by Louise Silvestre
ISBN 9789712733116 (e-book)
Version 1.0.1
TABLE OF CONTENTS
PREFACE
Who should read this?
The Philippine Institute of Arbitrators (PIArb) is proud to present its first official edition of the Commercial Arbitration Handbook. Given the Handbook’s very nature as a portable and compact reference, we do not claim that it is a complete treatise on every topic under the discipline. Instead, we aim to provide the following:
An essential reference of information to new users and counsels who are planning to, or have initiated, commercial arbitrations; and
A comprehensive perspective on how to approach and study the discipline for those exploring commercial arbitration as a full or part-time professional service.
The Handbook seeks to achieve these objectives through a question-and-answer format explaining the fundamentals of the commercial arbitration process. This is supplemented by appropriate figures and appendices that either summarize key information for ready reference or provide models of best practice. For new arbitrators, the Institute’s current Code of Professional Responsibility, applicable to all its members, is also provided. For new or prospective users and their counsels, the Handbook also includes the Institute’s own Model Arbitration Rules for ad hoc commercial arbitrations.
Why this book?
This handy reference illustrates the ideal blending of our initiatives: complementing capability-building through training and development of practitioners with education and user-awareness campaigns. This is the core of our Programs Community, and a part of our mission to be the voice of private dispute resolution in the Philippines.
New neutrals will find this book to be a sufficiently comprehensive overview on the discipline of commercial arbitration that fits the syllabus of our basic arbitration course, giving them the big picture as they go through the program’s more detailed materials.
This Handbook will help prospective and current users of commercial arbitrations facilitate better decision-making and dispute management, by providing them with a more grounded understanding of the arbitration process and enabling them to better comprehend advice provided by their legal counsel.
A word of caution
The Institute has undertaken its best efforts in preparing this Handbook in order to provide you with useful and accurate information. However, laws, procedures, technology, and business conditions change frequently and/or are subject to different interpretations. Thus, we necessarily make no representations or warranties, with respect to the completeness and accuracy of the Handbook, or its application to a particular situation. If you use this book, please note that it is your responsibility to make sure that the information contained in it is applicable to your situation and/or is up to date.
A note of thanks
On a personal note and on behalf of the officers and members of the Institute, I must commend our Programs Community, as ably led by our Senior Vice-President for Programs, Atty. Donemark J.L. Calimon, and Vice-President for Research & Public Information, Atty. Asuncion D. Omila, for ably steering the implementation of this initiative through. To them and their fellow contributors, all of us in the Institute owe our heartfelt thanks for their commitment and service to the profession and to the stakeholders of private dispute resolution.
Welcome to Commercial Arbitration!
Whether as a prospective or current user of commercial arbitration, a new arbitrator, or both, we in PIArb hope this Handbook will serve you well in the years ahead.
Teodoro Kalaw IV
President
ACKNOWLEDGMENTS
The PIArb is grateful to the following individuals for
their contributions to this handbook:
Editors
Calimon, Donemark J.L. (Quisumbing Torres)
Kalaw IV, Teodoro (Kalaw Sy Selva & Campos)
Amoroso, Dranyl Jared P. (Quisumbing Torres)
Lazaro, Grace Ann C. (Quisumbing Torres)
Aguila, Erasto Miguel (Quisumbing Torres)
Omila, Asuncion De Leon (Soller & Omila)
Contributors
Aguila, Erasto Miguel (Quisumbing Torres)
Amoroso, Dranyl Jared P. (Quisumbing Torres)
Calimon, Donemark J.L. (Quisumbing Torres)
Castro, Alexandra C. (Quisumbing Torres)
Ceniza, Eduardo R. (Eduardo R. Ceniza and Partners)
Cruz, Anna Theresa
Gallardo-Batungbakal, Myra Angeli
Kalaw IV, Teodoro (Kalaw Sy Selva & Campos)
Lazaro, Grace Ann C. (Quisumbing Torres)
Morallos, Jesusito G. (Follosco, Morallos & Herce)
Omila, Asuncion De Leon (Soller & Omila)
Omila, Julius Anthony Ruiz (Soller & Omila)
Ongkiko, Ricardo Ma. P.G. (SyCip Salazar Hernandez & Gatmaitan)
Ongkiko-Acorda, Zenaida (Custodio Acorda Sicam
De Castro & Panganiban)
Santiago, Jay Patrick R. (Hong Kong International Arbitration Center)
Valderrama, Mario E.
Vinarao-Pilapil, Joannes Untalan
PHILIPPINE INSTITUTE OF ARBITRATORS, INC.
TRUSTEES AND OFFICERS FOR 2014 & 2015
Want to know more about PIArb?
Visit: www.philippinearbitrators.org
PIArb
COMMERCIAL
ARBITRATION
HANDBOOK
Figure 1 – Some Terms to Remember
Alternative Dispute Resolution (ADR) refers to dispute resolution processes which the parties voluntarily agree to adopt as the means of resolving their dispute. Dispute resolution processes which are mandatory or required by law (such as court-annexed mediations) are, strictly speaking, not forms of ADR.
Arbitration is a voluntary dispute resolution process in which one or more arbitrators, appointed in accordance with the agreement of the parties, or rules promulgated pursuant to the Alternative Dispute Resolution Act (Republic Act No. 9285), resolve a dispute by rendering an award.
Institutional Arbitrations are arbitrations administered by an organization or regular arbitral center, usually in accordance with its own rules of arbitration.
Ad hoc Arbitrations are arbitrations not formally administered by any established arbitral agency; instead the parties opt to administer the arbitration themselves, e.g. craft their own procedures for a given arbitration.
Arbitration Agreement is an agreement to submit to arbitration all or certain disputes, which have arisen, or which may arise between the parties in respect of a defined legal relationship, whether contractual or not.
Arbitral Institutions are organizations or institutions which provide arbitration services by handling the procedural aspects of the arbitration process.
Award means any partial or final decision by an arbitrator(s) that resolves the issue or controversy submitted to arbitration.
Local Awards are awards rendered in domestic or international arbitral proceedings in the Philippines.
Foreign Awards are awards rendered in international arbitral proceedings outside the Philippines.
Commercial Arbitration – An arbitration is commercial
if it covers matters arising from all relationships of a commercial nature, whether contractual or not.
Relationships of a commercial nature include, but are not limited to, the following commercial transactions: any trade transaction for the supply or exchange of goods or services; distribution agreements; construction of works; commercial representation or agency; factoring; leasing; consulting; engineering; licensing; investment; financing; banking; insurance; joint venture and other forms of industrial or business cooperation; carriage of goods or passengers by air, sea, rail or road.
Domestic Arbitration – If the dispute is between parties who have