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ALTERNATIVE DISPUTE RESOLUTION

INTERNATIONAL COMMERCIAL ARBITRATION vs. DOMESTIC ARBITRATION1

When International or
Domestic

Disputes Covered

Rule on Receipt
of Written
Communication
(same but different point of
emphasis)

Waiver of the Right to


Object (same)
Confidentiality
(same)

Due Process

ICA

DA

Arbitration is international if any of the


components of parties places of business,
place of arbitration, place of performance of a
substantial part of the obligation, and place
where the subject matter of the dispute is
most closely connected, is located outside of
the Philippines.

Arbitration is domestic if the components of


parties places of business, place of
arbitration, place of performance of a
substantial part of the obligation, and place
where the subject matter of the dispute is most
closely connected, are all located in the
Philippines.

The provisions and rules on domestic


arbitration cover both commercial and nonArbitration is commercial if it covers matters
commercial disputes provided they are
arising from all relationships of a commercial
susceptible of arbitration and do not fall within
nature.
the exclusive original arbitral jurisdiction of
quasi-judicial agencies.

Deemed received on the day it is delivered


personally or by registered letter or any other
means.

Shall be delivered personally, by registered


mail or courier service, and shall be deemed to
be received on the date it is delivered.

A party may be estopped from questioning non-compliance with a non-mandatory rule or any
requirement in an arbitration agreement or is deemed to have waived his objection thereto if he
fails to raise the objection without delay.
The proceedings, records, evidence, and the arbitral award is confidential and shall not be
disclosed except: (1) With consent of the parties; or (2) For the limited purpose of disclosing to
the court relevant documents in cases where resort to the court is allowed.
Parties shall be treated equally and shall be given a full opportunity to present their sides.

(same)

Default Place
(same)

Metro Manila, unless the arbitral tribunal decides on a different place of arbitration taking
into consideration the circumstances of the case.

Default Commencement

The date on which a request for that dispute


to be referred to arbitration is received by the
respondent.

Reckoned from the date when the other party


agreed to submit the dispute to arbitration.

Default Language

English

English and Filipino

Default
Applicable Law

Arbitrators
(Default no. &
Procedure)
(same)

Arbitrators
(Qualifications/
Diqualifications)

The law determined by conflicts of law rules


as determined by the arbitral tribunal to be
applicable taking into account the terms of
the contract and the usages of the trade.

1. The Arbitration Law


2. Some provisions of the Model Law
and the ADR Act
3. IRR of the ADR Act
4. All other rules applicable to
international commercial arbitration
which may be given suppletory
application in the absence of specific
applicable provisions.

3 arbitrators
(1) Each party shall appoint 1 arbitrator, and both appointed shall appoint the 3rd arbitrator,
failing which the appointment shall be made by the appointing authority.
(2) sole arbitrator shall be appointed by the appointing authority.

None. But the appointing authority shall


consider the following factors:
1) Qualifications required by the
agreement of the parties

An arbitrator must:
1. Be of legal age
2. Be in full enjoyment of his civil
rights; and
3. Know how to read and write

G. T. ROBENIOL (2011)
pg. 1

A. MARONILLA

2) Considerations as are likely to secure


the appointment of an independent
and impartial arbitrator and
3) In the case of sole arbitrator or third
arbitrator, the advisability of
appointing an arbitrator of a
nationality other than those of the
parties.

Grounds for Challenge


of an Arbitrator

(same)

Procedure in Case the


Arbitrator Fails to Act
(same)

Interim Measures
(same)

Legal Representation
(same)

Default Rules of
Procedure
(with slight variance)

pg. 2

1. He is related by blood or marriage


within the 6th degree to either party.
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; or
4. He has been selected to act as
champion or to advocate a partys
cause.
If circumstances exist that give rise to a
justifiable doubt as to his

If circumstances exist that give rise to a


justifiable doubt as to his:
1) Impartiality or independence, or
2) Possession of the qualifications
agreed upon by the parties

Default Procedure for


the Challenge

No person shall serve as an arbitrator if:

1) Impartiality or independence
2) Possession of the qualifications
provided for under the law or agreed
upon by the parties
3) Disqualification to act as arbitrator
4) Refusal to respond to questions by a
party regarding the nature and extent
of his professional dealings with a
party or his counsel

1. The challenging party shall send a written statement of the reasons for the challenge to
the arbitral tribunal within15 days after becoming aware of the constitution of the
arbitral tribunal or after becoming aware of the circumstance constituting the ground
for the challenge.
2. If the challenge is not successful, the challenging party may request the appointing
authority within 30 days from notice of the decision rejecting the challenge, to decide
the challenge.
If an arbitrator becomes de jure or de facto unable to perform his functions or fails to act
without undue delay, his mandate terminates:
a) if he withdraws, or b) if the parties agree on the termination.
Any party may request for the grant of interim measures from the arbitral tribunal against the
adverse party. The relief may be granted in order to prevent irreparable loss, to provide security
for the performance of an obligation, to produce or preserve evidence, or to compel any other
appropriate acts or omissions.
A party may be represented by a person of his choice even if a non-lawyer. However, if a nonlawyer is so appointed, he shall not be authorized to appear as counsel in any Philippine court
or any quasi-judicial body even if such appearance is in relation to the arbitration in which he
appears.
1.
2.
3.
4.
5.
6.
7.
8.
9.

Statement of claims
Statement of defenses
Default of parties
Amendment of claims / defenses
Hearings
Court assistance in taking evidence
Power to issue subpoena
Appoint experts
Conclusion / Closure
a. When the claimant withdraws his
claim
b. By the agreement of the parties
c. By the finding of the arbitral
tribunal that the continuation of the
proceeding has become unnecessary
or impossible

1.
2.
3.
4.

Statement of claims
Statement of defenses
Amendment of claims or defenses
Hearing and written proceedings
a. Pre-hearing conference
b. Threshold issues
c. Hearing dates and
postponements
d. Default of a party
e. Decision of interlocutory
matters
f. Consolidation or concurrent
hearings
g. Closure of hearing
5. Rule on taking evidence
a. Testimonial evidence
b. Documentary evidence
c. Subpoena
d. Expert
e. Court assistance in taking
evidence
A. MARONILLA

6.
7.
8.
9.

Costs
(same)

In principle, the costs shall be borne by the unsuccessful party. However, the arbitral tribunal
may apportion the costs if reasonable under the circumstances of the case.

Correction &
Interpretation

1. Quantification of costs and the


determination of the party liable
therefor, or the division thereof.
(provided a reservation for such hearing
& quantification has been made)
2. Correction of typographical and similar
error initiated by a party. (within 30
days from the receipt of the award)
3. Correction of the typographical error
initiated by the arbitral tribunal. (within
30 days from the date of the award)
4. Interpretation of the award.
5. Additional award as to the claims
presented in the arbitral proceeding but
omitted in the award.

Setting Aside of
Arbitral Award

1. The petitioner furnishes proof that there


was:
a. Defect in the arbitration agreement
b. Violation of due process
c. Lack or excess of jurisdiction
d. Violation of the arbitration
agreement
2. Or, the court finds that:
a. The subject of the dispute is not
capable of settlement under the
laws.
b. The award is in conflict with public
policy.

Recognition/
Confirmation

pg. 3

Decision
Form and content of the award
Settlement
Termination of proceedings
a. When the claimant withdraws
his claim
b. By the agreement of the parties
c. By the finding of the arbitral
tribunal that the continuation of
the proceeding has become
unnecessary or impossible
d. Non-payment of the required
deposits in full

Must go through the process of recognition in


order to be entitled to enforcement in the
Philippines.

1. Quantification of costs
2. Correction of typographical and
similar errors initiated by a party
3. Correction of typographical and
similar errors initiated by the court
4. Interpretation of the award
5. Additional award
6. Under the arbitration agreement
7. Failure to resolve an issue as to
the unresolved issues

1. The arbitral award was procured by


corruption, fraud or other undue
means;
2. There was evident partiality or
corruption in the arbitral tribunal or
any of its members;
3. The arbitral tribunal was guilty of
misconduct or any form of
misbehavior that has materially
prejudiced the rights of any party;
4. One or more of the arbitrators was
disqualified to act as such and
willfully refrained from disclosing
such disqualification; or
5. The arbitral tribunal exceeded its
powers, or so imperfectly executed
them, such that a complete, final
and definite award upon the subject
matter submitted to it was not
made.
Must go through the process of
confirmation prior to their
implementation

A. MARONILLA

pg. 4

A. MARONILLA