Adr Transcribe No Ciac

ALTERNATIVE DISPUTE RESOLUTION | 1
We are imperfect beings living in an imperfect

society governed by an imperfect system.
Diba? And because we are of that nature, how do we
define life? Life means our existence here. Another writer
once told that life is characterized by a series of pain.
What ends life? Death. What do we experience when
we die? End. Pain. Life is characterized by pain but the
beauty of it is you are given the option or the privilege of
having short moments of joy in between this long line of
suffering.
Why is human life full of conflicts? The root source of
this conflict is because of the limitations of man. Why do
you have needs? Because your potentials are limited.
Why does one want something? Because he is limited.
Diba? For as long as he exists, a person will always want
something. Unfortunately, there are other individuals are
also longing for their wants which brings us to conflict.
There will always be inequality. No two people are the
same. Consequently, if two or more individuals would
have different objectives in life, chances are, conflict will
arise.
Going further with the statement of Justice Romero in
the case of Chungfu, Conflict is inherent in human
existence and therefore, too much efforts of men and
institutions have been employed in order to resolve these
conflicts. If you realize that you are limited, you would be
needing other source to help and assist you. However,
since there are differences between two men, if you
join them together, what would they do? They would
search for an alignment of their interests. That is why
you have social institutions. And the purpose of these
institutions is aligning individuals interests with the
interests of others. It is in the process of this alignment
that solutions are arrived at.
Now, the word ADR is very much recent. In fact in our
legal system, we have not encountered that word until the
last part of the last century. What do you call the
primitive way of resolving a conflict? They were
governed by the survival of the fittest. Meaning, as early
as that era, men already use methods of resolving
conflicts. The survival of the fittest was supplanted by
the dictatorial system. When people started grouping
together, they chose a leader. And whatever his decision
is, it becomes their law. After this comes the era of the
monarchs wherein the power to decide was delegated to
the people, i.e., the early judges. This was followed by the
trial system.
What is the major characteristic of the trial system?
It involves presentation of evidence. It is one, explaining
his side as against the explanation of the other. It is a
more civilized way of combating with one another. Now,
they try to use reason but nonetheless, the use of reason

makes the process confrontational. It becomes
adversarial.
Why adversarial? Because when you institute or start
the process of solving the controversy, you start with an
accusation. When you are presenting your evidence, it is a
clash of evidence. Trial system is supposed to be
governed by due process of law. But the implementation
of due process has been abused. They use it to delay, to
defeat a valid claim on the prefix that they have to be
heard, they cause delay. And since they want to be heard,
the confrontation or adversary is always sustained.
What is the net output of the trial system? Decision.
A decision which is equivocal to what you use in the
ordinary parlance as winner takes all. When you lose, you
lose everything; when you win, you win everything. We
distance the winner from the loser like saying the rich
becomes richer and the poor becomes poorer. Do you
think that that is beneficial to both parties? No, but we
cannot do away with it. The sad reality, we have to live
with it. However we are not hopeless. Because we can
always adopt other methods. What are these?
Alternative dispute resolutions.
Does ADR change the trial system? No, we still have
to follow the trial system. We will just simply add other
options. We will not do away with the trial system. That
is why we call it alternative another option, another
way. Dont treat it as a substitute.
What are the other disadvantages of the trial system?
There is always delay. There is more effort and at the
end, it might only cause a denial of justice. Instead of the
trial system bringing justice to us, it might only be a
source of injustice. However there are instances that this
system will really work especially in cases which are not
compromisable.
ADR was only introduced in the latter part of the
thirteenth century or in the middle of the twentieth
century. For the longest time, it has been the trial system
which has been adopted.
In the Philippines, what was the first form of ADR
and when did we have the very first alternative
dispute resolution? Do you still remember what you
studied in Persons & Family Relations? That whenever
relatives are in conflict with one another, they cannot
resort to any judicial process unless they first resort to a
family counseling. Even before the Spaniards came,
family counseling has already been existent in our
country. The Spanish Civil Code institutionalized family
counseling. During their era, the Spanish Code of Civil
Procedure made mention of adjusters. They are the
proof of early form of arbitrators. But the Spanish Civil
Code already mentioned about arbitrators and
Fiat voluntas tua.

compromises. Unfortunately, the Spanish Civil
Procedure was repealed in its entirety when the
Americans
came.
Therefore,
arbitration
and
compromises under the Spanish Civil Code had no
procedural law to enforce them. Nonetheless, during the
American era, we adopted certain doctrines from the US
and they started to expound ADR, more specifically,
arbitration.
When did the Civil Code (RA 386) become a law?
August 30, 1950. In 1950, the laws on arbitration and
compromise were expanded.
This was followed by what law? By the Arbitration
Law of the Philippines (RA No. 876) which was enacted
in June 19, 1953.
In other fields of law, arbitration and mediation have
been introduced as well. However, they are not in the
concept of ADR that we understand today or as
embodied in the ADR Act.
In what fields of law are these? In Labor Law or
Industrial Relations, there was already voluntary and
compulsory arbitration. There is also mediation but it is
not the way it is contemplated in the ADR Act but they
are almost the same except for one thing.
What is that? The third person that would participate in
the conflict resolution is a public official. That is why
they do not fall under the ADR Act.
As far as ADR is concerned, what is the first
convention? In 1958, there was a New York Convention.
What was it all about? It was for the enforcement of
arbitral awards. When countries come out with
decisions or awards in their respective arbitrations, there
is no uniformity in the applicable rules and countries
have the tendency of protecting their own subjects, ergo,
you have favored awards. To resolve this problem,
members of the UN opted to adopt a common way of
recognizing and enforcing arbitral awards. And you call
that the 1958 New York Convention. The Philippines
adhered to this treaty. Therefore, we are mandated to
respect, recognize and enforce foreign arbitral awards. So
if you are a party debtor who resides in the Philippines
and there was an arbitral award in another country, you
are to recognize such award.
What is a uniform law? It is where each state has its

own law (domestic/local laws) but each state adheres to a
uniform law which is applicable to all the states
belonging to one country. In the US, commercial laws fall
under the local legislation but they adopt a uniform law
which is practically the same as the UNCITRAL Model
Law.
The concept of the UNCITRAL Model Law is that the
convention will come out with a model legislation on
arbitration. Member states of the UN are encouraged to
pass that model law as their own law on international
commercial arbitration. Purpose is so that there will be
uniformity in the procedure and enforcement of
arbitral awards.
If you will notice, under our ADR Act of 2004,
international commercial arbitration shall be principally
governed by UNCITRAL Model Law. That is in the field
of international commerce.
What is our basic social unit next to the family? The
Barangay. Under the LGC, the Katarungang
Pambarangay Law was mentioned. Here, we have 3
methods of ADR: mediation, conciliation and arbitration.
Although the ADR Act was passed in 2004, we are
already undergoing through this processes a long, long
time ago.
Not to be outdone, our courts have also adopted some
ADR forms: The JDR and the Court-Annexed Mediation
and in fact, CAM was introduced in the last decade of the
previous century while JDR, in the first decade of this
century. In other words, the judiciary is very much ahead
of the legislative branch as far as ADR is concerned.
When did the ADR Act become a law? This law was
approved April 2, 2004, pubished on April 13 and
became effective on April 28, 2004. (Case: Equitable PCI
Banking Corp. v. RCBC)
What kind of law is this? A special law. So as against
the Civil Code, this will have precedence. In one case, it
was considered as a procedural law but I would not
consider it as totally a procedural law. Perhaps, the better
way to describe it it that it is a remedial law.
The other UN Convention is all about what? The

UNCITRAL or the United Nations Commission on
International Trade Law. What is this all about? This
was also held in New York. Very easy to remember, the
first one was held in 1958, this one, just reverse, 1985.
New York Convention which is otherwise known as the
UNCITRAL. The purpose of the Convention was to
come out with a model law.
Fiat voluntas tua.
What is the implication of this? It can be

given a retroactive effect. (Case: Equitable PCI
Banking Corp. v. RCBC) Ang Rules of Court, yun,
procedural law yun but if it is a combination of a
substantive and procedural, you call it remedial
law. This says that even for those controversies
that happened prior to 2004, they are already
governed by the ADR Act.

What is the State Policy as far as ADR is concerned?
How many policies are embodied in Sec. 2? There
are 4 but there is only 1 principal policy, i.e., to actively
promote party autonomy in the resolution of disputes or
the freedom of the parties to make their own
arrangements to resolve their disputes.
What is the meaning of party autonomy? The
freedom of the parties to make their own arrangements
to resolve their disputes.
What are the 3 implementing policies in
order to promote party autonomy?
1. The law shall promote ADR systems;
2. The law shall provide facilities that will
be used in these ADR systems; and
3. To enlist private sector.
In other words, in coming out with the ADR
Act, the ADR forms that are countenanced by
this law must be such that instead of public
officials who will act as a neutral third party, it
will be the private sector who must be engaged.
What is the reason for this? Not because of
impartiality issues; people in the government can
be as impartial as in the private sector. It is
because when the public sector is involved in a
proceeding, people will always treat them as the
stronger arm. Isipin mo na lang kung si Mayor yan o
isang NBI agent, edi pag may sinabi ka, baka bukas,
kinakalkal na yung bahay mo. They are always
associated with the strong arm of the State. We
avoid that. Kaya pivate sector. This will encourage
people to open up and participate in order to
assure party autonomy.
What does the last paragraph of Sec. 2
provide? Without prejudice to the adoption by
the SC of any ADR system. Meaning, they
recognize that the SC already utilizes ADR
forms. However the SC, as you will observe later
on, the ADR Law made mention that the SC can
come out with rules in order to govern the
procedure in certain aspects of the ADR Act.
In addition to this, there is Section 52 or the Rule
Making Power of the Secretary of the DOJ where he is to
formulate the appropriate rules and regulations necessary
for the implementation of this act. So that when you
study the ADR Act, you will also have to study its IRR.
Aside from that, also study the Special Rules on ADR
but only the applicable provisions germane to our
discussion.
DEFINITION OF TERMS
ADR- In its most general sense, it is any method or
procedure of resolving dispute other than court litigation.
You do away with court litigation.
Under the ADR Act any process or procedure used to
resolve a dispute or controversy, other than by
adjudication of a presiding judge of a court or an officer
of a government agency, as defined in this Act, in which
a neutral third party participates to assist in the resolution
of issues, which includes arbitration, mediation,
conciliation, early neutral evaluation, mini-trial, or any
combination thereof.
What are the elements of ADR?
1. It is a process to resolve a dispute;
-It is intended to solve a dispute, not to give
birth to new problems.
-In interpreting the law on ADR, it has to be
interpreted liberally in favor of party autonomy,
confidentiality, choice of the private sector and
against the participation of the government.
2. It must not contravene any legal provision
(ex. gambling, combat, etc.);
3. It must observe party autonomy
4. It does not involve court litigation and the
participation of the public sector; and
5. There must be a neutral third person who
will assist the parties in coming out with a
resolution or who will render an award
Mediation a voluntary process in which a mediator,
selected by the disputing parties, facilitates
communication and negotiation, and assists the parties in
reaching a voluntary agreement regarding a dispute
It is a process in which a mediator, who is either selected
by the parties or appointed by the rules, will assist the
parties in communicating and negotiating with one
another in arriving at the solution. In other words, he is
the cupid.
Who makes the decision or the resolution in
mediation? The parties. They are the authors of their
own solution.
What is the output of this process? Mediated
settlement agreement.
Conciliation a special type of mediation whereby the
neutral third party, aside from assisting the parties in
communicating and negotiating with one another and
arriving in a solution, gives counseling and personal
opinion to the parties with regard to the controversy.
Fiat voluntas tua.

Where did we encounter conciliation? Did the law
define what conciliation is? Under the law on
mediation, you can find conciliation. It is included there.
conciliation? The parties.
What does the conciliator do?
Assist the parties in communicating and
negotiating with one another and arriving in a
solution
Gives counseling and personal opinion to the
parties with regard to the controversy
Gives an assessment or evaluation of the dispute
Parang ikaw, may away kayong dalawa, kunwari sinong mas

maganda. At the start of the proceeding, you try to convince me that
you are more beautiful than her. Same is true with your opponent.
Sa huli, mag-aassess yung evaluator kung sinong mas maganda.
Pero anong purpose nun? It is a nonbinding assessment. Pang-guide
lang. Parang sasabihin niya, Pareho kayong maganda, pero mas
maganda yung isa. so pwedeng maisip nung isa, Sige na nga,
mas maganda ka. Hindi yung Ikaw maganda, siya pangit.
That is trial system.
What is the net output of a successful arbitration? A
Who is the author of the solution? The parties
themselves.
Such that if it goes into a full-blown trial, they

would be guided where they stand. It is a nonbinding assessment. He is a mediator who gives
a non-binding assessment to the parties.
But what is the task of the neutral evaluator? He shall

come out with an assessment. But it is nonbinding. It
should only serve as a guidance.
What is the net output of a successful conciliation?

Mediated settlement agreement also.
Mini-Trial a structured dispute resolution method in

which the merits of a case are argued before a panel
comprising of senior decision makers with or without the
presence of a neutral third person after which the parties
seek a negotiated settlement.
Arbitration 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 this Act, resolve a dispute by rendering an
award.
arbitration? The arbitrator.
What is the net output of a successful arbitration?
GR: An award.
EXPN: Unless during the process of arbitration,
the parties agree to a mediation.
In such event, it will be a settlement
agreement.
Early Neutral Evaluation (ENE) ADR process
wherein parties and their lawyers are brought together
early in a pre-trial phase to present summaries of their
cases and receive a nonbinding assessment by an
experienced neutral person, with expertise in the subject
[or] in the substance of the dispute.
Please note that while the definition of ADR only
included ENE, when you go to the other forms of ADR,
another term is used: ENE followed by Neutral
Evaluation.
It is a procedure wherein part of the proceeding would
be for the parties to discuss the merits of their respective
positions. Thereafter, the evaluator will come out with an
assessment.
This is the only method wherein the participation of a

neutral third person is NOT mandatory. It normally
happens when people are represented. Most probably,
you will encounter this in the corporate setup wherein
the officers of different corporations will sit together and
submit their respective affidavits. Parang o, evaluate this, this
is our position, yung isa din, ganun. Then after the exchange
of ideas and documents, they discuss. After discussing,
the representatives are expected to bring with them an
authority to negotiate with one another and if possible, to
sign an agreement. So there is no need for a neutral third
party.
What is the net output here? Still a settlement
agreement. There is really no evaluation to be made.
Let us illustrate this. Assuming, ikaw, di ka makaka-attend
tapos ikaw di ka din makaka-attend so you send representatives.
Who would be your representatives? Your respective boyfriends.
Parang Mas maganda girlfriend ko yung isa ganun din. Tas
after ng exchange of ideas, someone will say, Maganda nga ang
girlfriend mo pero maganda din naman yung sakin, diba? So
Who is the author of the solution? The parties
themselves.
Let us go to Arbitration.
Fiat voluntas tua.

Conflict may arise among individuals, right? Conflict may
also arise between a corporation and an individual and
among two corporations. Likewise between two
government agencies, between a government agency and
a private entity, state agains a state, a corporation in one
state against a corporation in another state.
The ADR Act provides for 3 kinds of arbitration.
What are they?
1. Domestic arbitration
2. International commercial arbitration
3. Construction industry arbitration
Now, we have identified them already: Mediation they
shall be governed by the provisions of the ADR Act,
Conciliation same is true. If arbitration?
If it is international commercial arbitration, it
shall be governed by certain provisions of the
ADR Act as well as UNCITRAL Model Law
together with the 1958 New York Convention
If it is a domestic arbitration, it shall be governed
primarily by the ADR Act; secondarily, by the
Arbitration Law; thirdly, the Civil Code and
other related laws.
If it is construction industry arbitration, it shall
be governed by EO No. 1008 together with its
IRR.
Now, the problem is if it falls under the other forms of
ADR (ENE, mini-trial, etc.), what will govern? The law
says, if it partakes of the nature of arbitration, then you
adopt Arbitration Law. If it partakes of the nature of
mediation, adopt the Law on Mediation.
CASES UNDER CHAPTER 1
NOTE: ACTUAL FACTS OF THE ASSIGNED CASES
MAY DIFFER FROM WHAT WERE DISCUSSED. I
BASED THESE SOLELY UPON THE DISCUSSION OF
ATTY. FERNANDEZ.
1. EQUITABLE PCI BANK v. RCBC

This case involves a sales purchase agreement. There is
an arbitration clause in the agreement. Part of the
agreement is a guaranty. There is a general guaranty
covered by par. 5(g) and theres a specific guaranty
covered by par. 5(h). Under par. 5(g), all claims arising
therefrom must be raised within 3 years after the
perfection or the closing date of the Sales Purchase
Agreement. With respect to par. 5(h), it has to be filed
within 6 months from the closing date. So that if you
base your claim under Par. 5(g), you are given 3 years and
if 5(h), 6 months.
Now what is the materiality of this case to our lesson in
Chapter 1? Please note that it is in this case that the SC
confirmed the approval of RA 9285 by the President on

April 2, 2004 and published on the newspaper on April
13. So 15 days after the publication, which is April 28,
2014, it became a law. Henceforth, since it became a law
after that date, its application to cases should follow as
matter of course; any cases filed after that should follow
RA 9285.
In the case, the transaction happened sometime in 2000.
The request for arbitration was sometime in May of
2004. The arbitral award was sometime in 2008.
Consequently, this is governed by the ADR Act.
According to the SC, since the arbitration was initiated
after the effectivity of the law, the arbitration including
the remedies after the award has been made must comply
with RA 9285.
What does RA 9285 provide as far as questioning an
arbitral award is concerned? That there should be a
petition to vacate, petition to correct or petition to
amend, as the case may be. It has to be filed with the
RTC.
After a decision has been rendered by the RTC, the
remedy is to file an appeal under Sec. 46 of RA 9285. In
this particular case, Equitable PCI Bank did not file an
appeal. Instead, they filed a petition for review under
Rule 45. The SC said that the remedy is an appeal to the
CA and not a petition for review on certiorari under Rule
45. Having violated this, the petition was dismissed.
Nonetheless, the SC ruled on the merit. Why did
Equitable go to the Higher Court? Kasi sabi nila, may
manifest disregard of the law. And that is one of the grounds
to vacate an arbitral award. Manifest disregard of the law.
Why manifest disregard of the law according to them?
Because the arbitral award was allegedly not in
consonance with our law on prescription, due process of
law and that there was a failure to cross-examine the
witnesses of the winning party. The SC said that yes,
manifest disregard of the law is one of the grounds to
vacate an arbitral award. Nonetheless, you have to prove
it. In this case, they said that it was not present.
2. CHUNG FU INDUSTRIES V. CA
The reason why I included this case is because my
discussion last time centered on a statement made by the
ponente, conflict is inherent in human society, much
effort has been exerted by men and institutions in
devising ways of resolving conflicts. However, hindi
niya inexplain to. They made it as a gospel truth without
any explanation. Lahat ng tao, gustong umangat, eh sa
pagkagusto niya, lahat din ng tao, umaangat. Eh hindi common
ang mga tao so definitely there will be a clash of interest.
This case is about a contract supposedly to construct a
warehouse. The contractor was not able to finish the
construction. Ergo, the owner (Chung Fu) assumed the
construction. Roblecor, however, demanded for payment
Fiat voluntas tua.

and damages because he was not allowed to complete the
transaction. In this particular case, there was an
agreement in the arbitration clause which says, no
further judicial recourse shall be allowed if the parties
disagree with the findings of the arbitrator because the
award shall be considered final and unappealable. The SC
made an outline on the reports assuming there is an
arbitration clause. If there is an arbitration clause, the
claimant must institute an arbitration. If and when
another party to the arbitration went to the court ahead
of the arbitration and subsequently a request for
arbitration is filed, what happens now? The SC said, you
do not dismiss the case. You simply suspend the case and
await for the outcome of the arbitration.
3. INSULAR SAVINGS BANK v. FEBTC

Checks are special types of bills of exchange. Instead of
paying cash, you issue checks. Now, how are these
checks processed? Present it to the bank and that bank
(depository bank) will bring the check to Philippine
Clearing House Corp (PCHC). It is a body whose
members are financial institutions. Its function is to serve
as the clearing center. It is where they bring a check to
allow another bank (the drawee bank) either to accept or
refuse the validity of the check. PCHC provided for
arbitration of disputes. Assuming that one bank refuses
to honor a check, magkakaron ng claim pag yung isa has
already paid the check blablabla. Then the dispute shall have
to be resolved by the arbitral body.
In this case, the arbitration was supposed to take place in

Korea. Please note that the contract was executed in and
the project was in the Philippines. If you are going to
read the Construction Arbitration Law, the arbitration
here must be filed before the CIAC. However, in this
case, the arbitration in Korea may continue. Why?
Because the lawyer of the local company did not raise it
as an issue. So, the lower court dismissed the case and let
the parties arbitrate. But there is a twist in this particular
case. Here, instead of filing an arbitration before the
Korean Center for Arbitration, the Filipino company
filed a case so that there will be an arbitration in the
Philippines. What Chung Fu did was to raise the
arbitration clause. However, the court tried to convince
the parties to enter into a new arbitration agreement and
that agreement was approved by the court. There, it was
agreed that the award by the arbitral body shall be final
and unappealable. Unfortunately for Chungfu, syempre,
Pilipino sa kapwa Pilipino, natalo siya.
In this case, Insular Bank was still under the name of

another bank. Here, the clearing house provided for
remedies for its own awards. Sabi ng PCHC, if we have an
award and you want to question our award, you file a
notice of appeal before us and file a petition for review
with the RTC. The SC said that jurisdiction is something
that cannot be agreed upon by the parties. Jurisdiction is
provided for by law. PCHC, although it has adopted its
own arbitration rule, that rule cannot change our mode
of going to courts. Consequently, the SC said that the
petition for review is not accordance with the Rules of
Court. Under the Rules, in order to do away with the
arbitral award, you must first file a petition to vacate the
award. Hence, the petition for review was dismissed.
It is valid to provide in the arbitration clause that the

award shall be final and unappealable. However, that
agreement will not deprive the court of its jurisdiction to
review in appropriate cases. In this case, under the new
arbitration clause, the arbitrator acted with grave abuse of
discretion. Therefore, resort to the Supeme Court is
proper. A certiorari is proper.
The award was vacated for being manifest disregard of
the law, there being an abuse of discretion. Why?
Because of the 12 grounds, there are no less than 5
grounds that could show that there was really an abuse of
discretion.
Nagkaroon ng coup d etat. Dahil dun, nagkadelay. During the
delay, the arbitrator awarded damages in favor of
Roblecor dahil daw sa delay nung nagka-coup. Pati nung
nagkabagyo, binigyan din niya ng compensation si Roblecor. Pati
sa increase ng presyo ng cement. Obviously, the arbitrator
favored one party. SC held that the lower court should
have exercised its authority to vacate.
In this case, the SC also came out with an observation

that the benefits that we derive out of ADR include
the following:
It is less time-consuming
It is less tedious
It is less costly
It is less confrontational
It promotes goodwill
It fosters a good lasting relationship
4. REYES v. BALDE
It is a case involving the construction of a house, the
house belongs to spouses Esquig. On the other hand, the
contractor is Reyes, the party here is the judge. Esquiq
initiated an arbitration pursuant to the arbitration clause
before the CIAC then Reyes filed a case with the RTC
for accounting. According to Reyes, there is a need for
accounting and since this is does not involve
construction anymore but mere computation blablabla,
the CIAC has no jurisdiction. In the same manner, the
Esquig spouses questioned the case for accounting. They
said that under the under the law, this is within the
exclusive jurisdiction of CIAC because this is involves a
dispute in the construction industry. Now please note
that in a claim that involves construction, regardless of
Fiat voluntas tua.

whether it is merely a collection of a sum of money, Pera
na lang pinag-usapan diba wala nang construction, still, it arose
out of the construction contract, it will still be the CIAC
who will have jurisdiction and the RTC case has to be
dismissed.
5. ABS-CBN
v.
WORLD
INTERACTIVE
NETWORK SYSTEMS (WINS) JAPAN CO.
In ABS-CBN, there is this arbitration clause, which
included a sweeping clause that says that: The decision
of the arbitrator shall be final and unappealable; and no
further judicial recourse if either party disagrees with
whole or any part thereof may be availed of. The
Supreme Court noted that if the arbitral award rendered
in favor of WINS, the ABS-CBNs petition on the
confirmation of the award, (ito ba yung naging segurista sila
na they filed two cases). In other words, they filed a petition
for review which combines Rule 45 on one hand and
Rule on the other. Thinking perhaps, that if one is
dismissed because it is the wrong mode of appeal, we still
have the other one. In other words, this is the doublebarrel approach. Now for this reason alone, if you go to
the Higher Court using Rule 45 and Rule 65 in a single
petition, the Supreme Court said, this is a no-no in
appellate practice. If you do so, your petition is doomed
for dismissal. Regardless of whatever is the subject
matter of your petition, combining the two rules is a nono, it is a pandaraya. You have to choose only one.
However, the Supreme Court said, if you have no ground
to vacate because the grounds are very limited, if your
ground is there is palpable error in question of fact or law
which does not necessarily fall under the four grounds to
vacate, a party still has a remedy in Rule 43. In short,
even if naging sigurista sila, none of those two are the
appropriate remedies, not 45, not 46 but Rule 43. Why?
Because Rule 43 specifically provides that among the
cases involving arbitral awards, the decision of various
governmental entities, including an arbitral board shall be
appealable under this Rule. So if you want to go to the
Higher Court and you have no more ground to vacate,
Rule 43 can be your remedy. In which case, you go to the
Court of Appeals directly from the arbitral body.
6. CHANG
v.
ROYAL
EXCHANGE
ASSURANCE CORPORATION
Ive included this case in your syllabus because I want
you to realize that ADR was not initially acceptable for
our courts. In this case, if you will notice, the Supreme
Court did not say out right that the arbitration clause is
invalid, instead they said that since the issue to be
resolved is a factual issue, then the arbitration clause did
not deprive the court of its jurisdiction. Now assuming
that the arbitration clause at that time is to the effect that
all the rulings of the arbitral body involving all questions
of law and questions of fact shall be final and
unappealable, definitely the SC at that time should have
stricken down that arbitration clause.
Their statement in these two cases is that, the arbitration

clause is valid because anyway, the arbitrators are simply
authorized to determine factual issues. As what youve
learned in Insurance Law, there are insurance adjusters,
the ones whod compute the real amount of the claim,
when you bring your policy after an incident. After an
incident, the insurance company doesnt give you the
whole amount in your contract, they will have their
adjuster visit your place and he will compute the amount
of their liability. Yun yung method nila sa insurance way back
in 1910. So that determines nothing about the law, only
the value, price, and all other factual issues. In other
words, had the arbitration clause was to the effect that all
findings of law or fact are final and unappealable, the
Supreme court would have stricken it down. Fortunately,
the arbitration clause here was not invalidated precisely
because limited lang naman yung trabaho ng arbitrators noon:
only to determine factual issues. So it does not deprive us
of our jurisdiction. Why? If questions of law are not
involved, we can always review.
7. ALLEN v. PROVINCE OF TAYABAS
VEGA v. SAN CARLOS MILLING CO.
In these two cases, the SC started to change its attitude
about arbitration already. The SC believes that an
arbitration clause which is declared by the parties in the
agreement that the arbitral award shall be final and
unappealable shall not be declared unlawful simply
because of that provision. It will only be declared
unlawful if it absolutely deprives the courts of
jurisdiction. And we will not interpret any arbitration
clause as invalid unless there is strong evidence that the
arbitration clause is really invalid. Oo, pwede pa din siyang ideclare as invalid especially if it absolutely deprives the
court of its jurisdiction.
The view of Justice Malcolm is that even if the
arbitration clause declares that the arbitral award is final
and unappealable, it shall not be invalid just for that
simple reason alone. Parang absolute yung kanyang
interpretation. Therefore, in his dissenting opinion, he
said that this decision, the shift in the attitude of the
court toward arbitration clauses started to crystallize yung
change in the attitude.
8. KOREAN TECHNOLOGIES v. LERMA
DEL MONTE CORP-USA v. CA
In these cases, considering that arbitration is supposed to
be international commercial arbitration, is it invalid if you
provide an arbitration clause which says that the
arbitration should be done outside of the Philippines?
The SC said no, because if that is your agreement that
yours is an international commercial arbitration, then that
is a valid clause. Why? Because after all, according to SC,
these two cases show that the SC has confirmed our
Fiat voluntas tua.

adherence to both the New York Convention of 1958
and the New York Convention of 1985.
Section 4 of the ADR Act

(Electronic Signatures in Global and E-Commerce Act)
Here, the SC held that ADR such as arbitration,

mediation and conciliation are encouraged. And because
they are encouraged, interpretation of the law must be in
favor of ADR.
What laws shall govern alternative dispute

resolutions?
Republic Act 9285 (ADR Act)
Section 54 provides that a general repealing
clause. What is the problem about that? Since it
is a general repeal, there is still something done
by the reader, you do not know with certainty
which laws were repealed already.
The Implementing Rules & Regulations
Civil Code provisions on Compromises
When we go to Mediation, the result of a
successful mediation would be a mediated
settlement agreement. It is nothing else but a
compromise. Compromise is defined as a
contract where parties give reciprocal
concessions in order to avoid litigation or stop
that which has already been instituted.
What laws shall govern arbitration?
1. International Commercial Arbitration
The provisions of the ADR Act on Arbitration

The Implementing Rules & Regulations
The Model Law
The New York Convention of 1958 as far as
recognition and enforcement of foreign arbitral
award is concerned.
2. Domestic Arbitration
The provisions of the ADR Act

The IRR on Domestic Arbitration.
Arbitration Law (Republic Act 876)
3. Construction Industry Arbitration
CIAC
EO 1008
Procedural rules on Construction Industry
Arbitration.
Its provisions are also applied in ADR meaning

we can now use electronic evidence in defending
our claims in our proceedings.
An information cannot be denied validity or
enforceability solely on the ground that is in the
form of an electronic data message
An information cannot be denied validity and
enforceability upon ground that it is merely
incorporated by reference; that it is just attached
or referred to in your principal document.
Kunwari, yung arbitration clause, naka-attach lang sa isang page

na hindi nasign-an, basta duly incorporated by reference siya,
pwede na. If I were the signatory I would have perhaps
signed the major contract, but since mostly are annexes I
wouldnt have the patience to sign all pages. The
principal contract were the ones signed by the signatories
but since there are attachments, yet unfortunately only
one of the parties signed the annexes.
MEDIATION
Is it possible that when the parties have a mediation
agreement but nonetheless, no one invoked that
provision in their agreement such that the action
that transpired has proceeded the pre-trial and
during pre-trial, there was a CAM. Is it possible that
the court will again refer this to a second mediation?
YES. It is not a waste of time. The court has the
discretion to do so and it is merely enforcing the
agreement of the parties.
Let us twist the facts. Assuming that there was
already a Court-Referred Mediation and after such,
there is again CAM, can there be a third mediation?
YES. As far as mediation after pre-trial is concerned, the
law provides that --------------------What are the duties of a mediator? Classify.
1. Duties relative to Impartiality
2. Duties relative to Self-determination
3. Duties relative to Confidentiality
4. Duties relative to Requisite Qualification
5. Duties relative to the Conciliation Process
6. Duties relative to the Mediation Process
What laws shall govern the other forms of ADR?

Law on Mediation if akin to mediation
Law on Arbitration if akin to arbitration
Not to be outdone, the SC came out with Special Rules
of Court on ADR.
Fiat voluntas tua.

DUTIES RELATIVE TO IMPARTIALITY
1. Make an inquiry
When: Before accepting a mediation

What: If there are any known facts that a reasonable
individual would consider likely to affect the

impartiality of the mediator.
- The Mediator shall inquire whether he has financial
or personal interest in the outcome of the
proceeding.
- Whether he has past or existing relationship with
the parties involved.
Assuming that he has discovered something, he has duty
to disclose it with the parties.
2. Make a disclosure
4 instances which the mediator is mandated to make a
disclosure:
1. Things that he already knows even prior to the
inquiry or as long as the fact will affect his
impartiality;
2. Things he has discovered by reason of the
inquiry;
3. After acceptance, things that he has discovered that
will affect his impartiality;
4. Things that one of the parties require him to
disclose, whether it will affect his impartiality of
not, he has to disclose.
3. Make a solicitation
4. Not to be engaged professionally
DUTIES RELATIVE TO CONFIDENTIALITY
1. Duty to keep with utmost confidence all
confidential information
Not because he wants to disclose it, he has the right to
do so because the parties, aside from being given the
right to be protected of confidentiality of the information
gathered from the mediation proceedings, he himself has
the duty keep it confidential.
2. He has to assure the parties that whatever
will be discussed in these proceedings will
be kept confidential
DUTIES RELATIVE TO CONSENT OR

SELF-DETERMINATION
Principle of Self-determination
Giving the party the choice on the manner in which the
proceedings will be done. The practice lies on the parties
on how it will be done.
1. Determine whether the parties know the
nature of mediation as an alternative dispute
resolution procedure.
If the parties are not aware of its nature, perhaps their
confrontation will result into an adversarial procedure.
2. Determine whether the parties know that
they have the right to participate and to
provide solution to the problem.
3. If the mediator finds out that the parties do not appreciate
the nature of mediation, to limit the issues to
matters which the powers or the
understanding
of
the
parties
can
accomodate.
Kung hanggang diyan lang sila, wag mo silang pilitin mag mediate
further if they can only appreciate the matter up to that point.
4. Terminate the proceeding if it appears to be
useless.
Primary duty as to the principle of selfdetermination: Mediator must always remind himself
that it is not his role to come up with a solution, rather it
is within the parties to do so.
Otherwise, if the solution comes from him, the parties
will think that it is a superimposed solution which will
result to mistrust with the proceedings. There will be no
or half-hearted acceptance of the result.
DUTIES RELATIVE TO THE
CONCILIATION PROCESS
1. GR: Refrain from giving legal or technical advice
EXPN: 1. If it is an evaluative mediation
2. Both parties agrees to it
2. GR: Refrain from giving an assessment or evaluation
on the merit of the controversy
EXPN: 1. If it is an evaluative mediation
2. Both parties agrees to it
Fiat voluntas tua.

Sa palagay niyo, mediator, ano ang dapat? Oo nga naman,
mediator, ano sa tingin niyo? Both parties agree.What is
evaluative mediation? Assuming the only dispute is
about the interpretation of the law (example, are we
covered by this law or not) and both parties are not
aware of the technicalities, the mediator can give his
opinion because he cannot discuss with them unless he
delves into the issue.
When the parties are not represented, what are his
duties with regard to conciliation?Recommend that
the parites seek legal or professional advice.
DUTIES RELATIVE TO THE
MEDIATION PROCESS
1. To let the parties know the settlement cost
At the end of the day, they will have to know the total
settlement cost of the settlement as far as the resolution
is concerned. It is his duty to explain the parties to the
actual settlement cost and their individual responsibilities
2. Observe professionalism
The mediator should have professional relationship with
the parties. He should be well-versed with the situation.
3. Establish mutual respect
In case it comes to a point that one of the parties are
already shouting, he should know how to stop them. The
mediator should be in control of the proceedings, when
one party is discussing he should make sure that the
other would listen instead of cutting the conversation.
4. Ensure that there is no abuse of the process
Examples could be when one of the parties would
successively avoid the proceedings using different
excuses, when one of them would keep you waiting
during a proceeding, or when during a proceeding one of
the parties would bring a very influential person so that
the other wouldnt be able to react well.
But this specific provision (Section 14) talks of a lawyer

or any third person which may assist the party. What are
the rules?
1. Unless prohibited by the rules, the parties may
designate a lawyer to participate in the proceedings
2. The right to have lawyer may be waived provided
that it is in writing
3. That such waiver may be rescinded at any time of
the proceeding.
Please note that the IRR gave several duties to the
lawyer when he is participating in a mediation
proceeding. What are these?
1. To remember that his role in participating in a
mediation proceeding is to act as a collaborator
to the other party.
Since they are collaborators, there should be cooperation
among them. They should love one another.
Normally what happens is that lawyers would create
more friction if they dont collaborate which would not
help in resolving the problem.
2. That the lawyer shall encourage his client to
actively participate in the proceeding.
Say what you mean and mean what you say.
3. The lawyer shall prepare his client by letting him
understand the mediation process, what the dispute
is all about, the issues, the position of the parties, the
possible solutions to the problem, and if
unsuccessful, what other alternatives they have.
PROVISIONS OF THE CIVIL CODE
ON COMPROMISES
If the party is a minor, a ward who is legally incapacitated, or

an estate of a deceased
There should be a court approval so that the
compromise may be valid.
PARTICIPATION IN THE
MEDIATION PROCESS
Who are the participants in a mediation proceeding?
The mediator, the parties, and if they want, they may
designate a lawyer, counsel, or any third person whom
the parties agree to be present. These can also be experts
who have knowledge on the matter or the people who
are employed in the mediation process such as the
secretary, the messenger, etc.
As a mediator, you should know whether your client is

legally incapacitated because if so, the court would have
to approve the settlement agreement.
If one of the parties is a corporation or a partnership

Juridical persons may compromise only in the form
and with the requisites which may be necessary to
alienate their property.
Fiat voluntas tua.

This means, since corporations act only by
representatives, these representatives should have
appropriate authority; there should be a board resolution,
secretarys certificate and if necessary, a special power of
attorney to negotiate and to settle the dispute.
PLACE OF MEDIATION
INSTITUTIONAL MEDIATION
Section 16 provides two agreements:
1. When they agree that their mediation shall be
conducted by an institution;
2. That their mediation shall be conducted in
accordance with the rules of the institution.
The parties may determine the place of mediation.

In the absence of such agreement, the mediation
shall be done in any place that is considered as
convenient and appropriate as to all parties.
Who decides if the place is convenient and
appropriate? The mediator should decide but done
in consultation with the parties.
If they simply agreed to the first one, then they will be

bound by the internal policies of the institution.
However, if the further agree that the rules of the
institution shall apply to their mediation, then their
mediation shall be conducted in accordance with the
rules and that the parties as well as the mediator shall be
bound by such rules.
The mediator must consult the parties. If there is no

consultation, would it be invalid, can they object to
the proceeding? This premise is subject to selfdestruction of the resolution because they are given to
chance to cancel the negotiation when they find it
inconvenient.
Why did I make such fine distinction? Because even if

you chose a particular institution, you can still agree to a
different rule. Party autonomy guarantees your right that
you can still agree on a different set of rules.
GUIDELINES IN THE
CONDUCT OF THE MEDIATION
1. There should be no untruthful/exaggerated
statements on the dispute resolution process and the
outcome.
2. The mediator shall help the parties reach a
satisfactory resolution to the dispute but has no
authority to impose a settlement to the parties.
The principle of self-determination where the parties
will decide the solution to the problem shall be
observed.
3. The parties should personally appear, if they do not
want to do so, their representatives should be
present with written authority to negotiate/settle.
4. The mediation should be held in private.
The actual conduct of the mediation proceedings may be
agreed upon by the parties but usually, these are the
stages:
1. Opening statement of the mediator
2. Individual narration by the parties
3. Exchange by the parties
4. Summary of the issues
5. Generalization and evaluation of options
6. Closure
ADR Act/IRR shall govern over institutional

mediation rules in case of conflict.
What will govern a mediation if it is ad hoc? The
agreement of the parties. In case of absence of
agreement, the ADR Act and its IRR.
Assuming that there is conflict between the
agreement of the parties and the ADR Act/IRR,
what will prevail? Mandatory provisions shall
prevail. But if the conflict is between the agreement of
the parties and mere directory provisions of the Act, the
former shall govern.
What will govern the procedure of mediation if it is
institutional? The agreement of the parties. In case of
absence of agreement, the ADR Act and its IRR.
Assuming that there is conflict between the
agreement of the parties and the ADR Act/IRR,
what will prevail? Mandatory provisions shall
prevail. But if the conflict is between the agreement of
the parties and mere directory provisions of the Act, the
former shall govern.
The court cannot force the parties to enter into an
agreement. It can only refer.
What is a Mediated Settlement Agreement? The
concluding document in a successful mediation.
How do you prepare it?
The parties, assisted by their counsels, if any,
and the mediator, shall prepare it.
Fiat voluntas tua.
The mediator, parties and their counsels shall

sign it.
The mediator shall certify (by signing) that he
has read the agreement before the parties and
the have understood the contents thereof.
The settlement agreement shall be sealed and
not disclosed to the courts except there is a
petition for enforcement of the agreement
If they do not wish to seal the agreement, they may
choose to deposit the same with the court.
Article 2037 of the Civil Code provides that there shall

be no execution except in compliance with judicial
compromise.
What is the purpose of the deposit with the court? It
is the initiatory or preparatory step for future
enforcement. Why? Because the IRR so provides that
only deposited settlement agreements can be the subject
of enforcement by the court.
Assuming that there is already an enforcement proceeding, what

will you do? You raise your grounds for annulment as
alternative defenses to the enforcement.
Will a newly discovered document affect the issues
settled?
GR: No.
EXPN: The document pertains to all the issues
or a single issue which is also an issue with the
mediator.
What are the remedies in case of non-compliance by
the other party or if the party who is trying to enforce
extrajudicially fails?
Article 2041 of the Civil Code provides that he may:
1. Go to the court for enforcement
2. File an action for rescission
COSTS AND FEES
Rule: Distinguish.
Who makes the deposit? The parties.
If it is ad hoc,
Assuming that one of the parties would not agree to the deposit,
what is the effect? Ideal situation is both parties would
agree to the deposit. If the other party does not agree,
your remedy is simply notify that other party that you will
deposit it unilaterally.
If it is institutional,
When are you supposed to make the deposit? Is

there a prescriptive period? Since a compromise is a
contract, apply the prescriptive period for contracts.
Recommendations under the IRR relative to the
preparation of the settlement agreement:
1. Strive to make the terms and agreement
complete.
2. To address the contingencies of non-compliance
or non-performance by the parties
What is the effect of compromise under the Civil
Code? It has the effect of res judicata. The parties shall
be bound by their agreement and they can no longer
enforce their claim which is already covered by a
compromise agreement in a court of law.
What is the remedy of a party who does not want to
comply/has a valid reason not to comply with the
settlement agreement? File an annulment proceeding.
What would be his grounds? Those provided for under
annulment of contracts.
- The parties are free to agree on the charges

- In the absence of such agreement, they shall be
governed by the rates that are pegged by the Office for
Alternative Dispute Resolution
- Mediation cost shall include the administrative charges
of the mediation institution, mediators fees and
associated expenses
- In default of agreement of the parties as to the amount
and manner of payment of the mediations cost and fees,
the same shall be determined in accordance with the
applicable internal rules of the mediation service provider
taking into consideration the following factors:
Complexity of the case
Number of hours spent in mediaiton
Training, experience and stature of the mediators
The mediators fee cannot be dependent on the outcome.
If the mediation is terminated, the fees shall be adjusted.
ARBITRATION, IN GENERAL
As far as arbitration is concerned, that is the history of
ADR is the history of arbitration.
When we defined arbitration last time, we emphasized on
the fact that as far as the ADR Law is concerned, it is a
voluntary process. If it is not a voluntary process, then it
is not an arbitration under the ADR because all
arbitrations made under the ADR Law are voluntary.
Meaning to say, it is a choice made by the parties.
Fiat voluntas tua.

In arbitration, the parties still litigate; there is still trial.
The procedure is still adversarial. The neutral third
person still renders a decision and such is supposed to be
based on the merits of the case. Consequently, the parties
still need to present evidence. So if it is not different with
the ordinary court trial, then what is the advantage in
engaging in arbitration than a court trial? It is the
choice of the neutral third person whom they can trust.
If he is a judge, any misdemeanor on his part means that
he could be disciplined. How about the arbitrator? His
liability is limited to damages. In that, as far as neutrality
is concerned, a judge is expected to be more neutral.
Is arbitration really inexpensive? I dont think so.
Most of arbitration proceedings involve a panel. If there
is savings, perhaps, you can find that in the fact that
parties are allowed to stipulate that whatever award is
rendered can be considered as final and unappealable.
Since there is no more appeal, there will be a savings of
time, cost and efforts. But as to the fees, I think its more
expensive to pay arbitrators.
Kinds of Arbitrations
As to the relationship of the parties to one another
International Commercial
Domestic
Construction Industry
Who can be an arbitrator? Anyone. Is there a need to

become a laywer? No need. For as long as you have
some intelligence. You will not get someone who has
very low IQ. Other than that, anyone can be an
arbitrator. Who appoints? Normally, the parties. But the
appointment can be done indirectly by the parties
through an appointing authority or through certain
mechanism. What is the composition? The usual is
composed of a panel of three but sometimes, a sole
arbitrator is allowed. Who determines if it should be
sole or a panel? The agreement of the parties. Assuming
that the parties failed to indicate their choice, what is the
default mode? In international commercial and
domestic arbitrations, the default is it should be
composed of 3 arbitrators. In construction industry
arbitration, there is no such presumption. The parties are
allowed to agree and if they failed to do so and the
arbitration has already been commenced, the CIAC will
ask the parties to advise the CIAC of their choice.
However, chances are, in the real practice, CIAC would
always appoint a panel of arbitrators, meaning they have
some sort of veto power. So even if the parties have
agreed that they want a sole arbitrator, CIAC will appoint
a panel. So what would they do? They will ask each of
the parties to nominate 3 arbitrators then the CIAC will
make the choice.
Can foreign individuals be arbitrators? Yes. Do they
need accreditation? No. Accreditation is for the benefit
of the parties and not as a recognition of the
performance of that arbitrator.
As to the venue
Domestic in the Philippines
Foreign outside the Philippines
As to consent
Voluntary choice of the parties
Compulsary imposed by law
As to the service provider
Ad hoc
Instutional/administered
What is the objective of arbitration? To provide a
speedy, inexpensive and voluntary process of resolving a
dispute hence, it will avoid the formalities, expenses,
aggravation and the delay that are incumbent in an
ordinary trial.
What is the policy of the State with regard to
arbitration? The State encourages the parties to arbitrate
rather than to litigate.
What is the coverage of the ADR Act? Only up to
voluntary arbitration and these are international
commercial, domestic and construction industry
arbitration.
What is arbitration agreement? It is a contract

whereby the parties agree that their dispute shall be
settled by an arbitration. It can be simply a one liner but
it can go as long as they want. Kung gusto niyo na ilagay
lahat, lagay niyo na hanggang venue, effect, enforcement blablabla.
It must always be in writing. The three elements of a
contract must be present.
Types of arbitration agreement
Agreement to Arbitrate
o Arbitration Clause
o Independent Contract
o Contract by way of reference
Submission Agreement after the dispute has
already arisen, thats the time when the parties
will agree to submit their dispute to arbitration
Doctrine of Separability or Severability
In the cases assigned, one decision says that if the
principal contract is null and void, the ancillary contract,
which is the arbitration agreement, is also null and void.
However, two years thereafter, the SC reversed itself in
that it already adopted the Principle of Severability.
Fiat voluntas tua.

What is this doctrine? When you studied ObliCon, you
were asked to distinguish a principal contract from an
ancillary contract. Principal can stand on its own and the
ancillary depends on the existence of the other.
Therefore, if the principal contract is null and void, there
can be no ancillary contract which is valid. Principle of
severability is an exception. Regardless of the validity or
invalidity of the principal contract, the arbitration
agreement, whether it is a separate contract, or merely an
arbitration clause or by way of reference or a submission
agreement, it shall be treated independently in such a
manner that the validity of the principal will not affect
the arbitration agreement. Why? By necessity because
how else can arbitration serve its function if the moment
you declare the principal contract as null and void, it
loses its authority.
NOTE: An arbitral body is not a governmental agency but it is

still considered as an instrumentality. Why? Because its
organization is authorized by law for purposes of exercising
quasi-judicial function hence, there should be observance of
due process, nonetheless. What kind of due process?
Administrative due process, not judicial. What are the
requirements? Dual requirements of notice and hearing. In
fact, even if there is no notice, as long as he had the
opportunity to ventilate his cause, administrative due process
has been complied with. How about hearing or crossexamination? The law says if allowed by the rules, then it
becomes a matter of right however, it is a mere personal right.
Therefore, it can be waived.
Commencement of Arbitration
The law says arbitration shall start by the agreement of
the parties but if they failed to provide, it shall
commence when the respondent receives a notice or
request for arbitration. From that time on, arbitration
commences.
The law on international commercial arbitration can be

found on 4 documents:
Constitution of the Arbitral Body

Arbitral Body may refer to sole arbitrator or a panel
of arbitrators.
When is it deemed constituted?
If he is a sole arbitrator, from the moment he
accepts his nomination and such acceptance has
been communicated to the parties.
If it is a panel of arbitrators, there must be be 3
arbitrators and the 3rd arbitrator shall be chosen
by the first 2 arbitrators so the acceptance of the
3rd arbitrator is pivotal here and such acceptance,
when communicated to the parties, shall start the
constitution of the arbitral body.
Why is this material? Because prior to to the
constitution, you ask for interim measures of
protection from the courts alone. After the
constitution, you can now ask the arbitral body
to issue such protection unless it is obvious that
the arbitral body has the authority to grant such
protection or is ineffective. In which event, go to
the court.
Doctrine of Competence Competence
Why do you use the word twice? An arbitral body is
competent to determine its own competence. In other
words, it has the authority to determine for itself if it has
jurisdiction over a particular dispute. It doesnt have to
go to another entity to determine if it is competent.
INTERNATIONAL COMMERCIAL
ARBITRATION
1.
2.
3.
4.
ADR Act PRINCIPAL LAW

UNCITRAL Model Law
IRR of the ADR Act
1958 New York Convention for the
enforcement and recognition of arbitral awards
SECTION 19- ADOPTION OF THE MODEL

LAW ON INTERNATIONAL COMMERCIAL
ARBITRATION
What is a model law? A pattern or sample law. It is
intended for several States therefore, its provisions must
be simple.
Does it regulate anything? Unless a State adopts it as
its own law, it is nothing else but a piece of paper.
When was it formed? 1985
When did the Philippines adopt it? 2004
What are the purposes of adopting the model law?
1. To recognize the desirability of uniformity on
the law of arbitral procedures
2. To recognize the specific needs of international
arbitration practice for a uniform law
NOTE: The adopting States are still free to add matters that
are germane to their respective system. Therefore, not all
subject matters relative to arbitration are governed by the
Model Law. Only those that are deemed common to all shall
be governed by it.
It is considered as lex specialis. Meaning that for matters
governed specifically by the Model Law, no other provisions of
the domestic law shall interfere on that particular matter.
Fiat voluntas tua.

Whatever is provided for by the Model Law, it will be to the
exclusion of all domestic provisions. It is a special law.
Matters NOT governed by the Model Law

Arbitrability of the subject matter of dispute
Capacity of the parties to enter into an arbitraion
agreement
State immunity from suit
Enforcement by national courts of interim
measures of protection
Competence of the arbitrator to reform a
contract
- Under our Civil Code, our courts cannot
contract for the parties.
Fixing of arbitrators fees
Request for deposit
Prescription or time limit
Consolidation of arbitral proceedings
Contractual relations between the arbitrators,
parties or the arbitral body
Security fees
Enforcement of the award by the court
That is why after the adoption of the Model Law, the SC
came out with the Special Rules of Court on ADR.
SECTION 20 INTERPRETATION OF THE
MODEL LAW
In interpreting the Model Law, regard shall be had
into its international origin. Because of its
international character and because our ADR Law is
recent, we can use the jurisprudence of other countries.
We can rely on how they interpreted the provisions of
the Model Law.
In interpreting the Model Law, regard shall be made
of the need for uniformity in its interpretation.
Precisely, it is adopted by the UN Commission on
International Trade Law for purposes of uniformity. You
cannot come out with an interpretation contrary to the
interpretation made by other countries.
In interpreting the Model Law, resort may be made
to travaux preparatories. It is the UNCITRAL. Like in
Congress, diba may journal. Dito naman, UNCITRAL.The
preparatory work or report of the Secretary General.
Whenever you read Section 20, please do not forget
Article 4.2 of the IRR. It talks about the rules of
interpretation and it gave us additional tools of
interpretation.
In interpreting this chapter, the court shall have
due regard of the policy of the law with regard to
arbitration.
What is that policy? That it favors arbitration.
Where a provision of this chapter leaves the

parties free to determine a certain issue, such
freedom includes the right of the parties to
authorize a third party, including the institution,
to make that determination.
It means that the parties are free to delegate the
right to agree or to stipulate on matters which
they are allowed to to other persons including
the institution.
ARBITRATION
As discussed last time, the UNCITRAL Model Law was
intended to be a pattern and member states of the United
Nations are encouraged to adopt it as their own law with
respect to arbitration conducted between international
parties. Because of this, the UNCITRAL Model Law,
being a pattern law, must be simple, brief and without
much of details. Otherwise, while the conflict may not be
among the states, the conflict will arise between domestic
law and the model law. So, only the essentials are
provided by the model law. It will not tell you about the
details.
Article 1 - The scope of application
Par. 1 says that the model law shall apply to international
commercial arbitration (ICA) subject to any agreement in
force between the state and any other state/s. What does
this mean? It will govern international commercial
arbitration. However, it is without prejudice to existing
agreements among states. Do you still remember your
Transpo Law? Have you heard of CoGSA? That is an
international treaty. For as long as carriage of goods by
sea, it will be governed by that treaty and not the Model
Law.
Par. 2 a lot of students are confused whether ICA is the
same as foreign arbitration. That is not the case. ICA is
more akin to domestic arbitration. Why? Because it is an
arbitration that must be conducted within the Philippine
territory. It is not a foreign arbitration with an
international color. Why do we call it an international
color? Because the parties therein are international
parties. While we call it international, it is not a foreign
arbitration. The second clause of par. 2 provides for an
exception. Except Arts. 8, 9, 35 and 36.
Fiat voluntas tua.

Art. 8 The referral by the court of the
dispute to an arbitration
If and when the parties go to Philippine Courts but they
have an arbitration agreement, in order to submit their
dispute to a foreign institution, that is a situation where
the arbitration will take place outside of the Philippines
but nonetheless, to the extent that the referral is to be
made, it will be governed by the Model Law. That is the
exception. Meaning to say, you apply the law only in the
Philippines except in these four instances. First one is
referral.
Art. 9 The interim measures of protection
While the arbitration may take place outside of the
Philippines, you still apply the Model Law applicable to
the Philippine arbitration for applications for interim
measures of protection.
Art. 35 & 36 Recognition, enforcement and
the action to vacate foreign arbitral awards
For as long as the arbitration is conducted
outside but they want it to be enforced in the Philippines,
they want it to be vacated in the Philippines, you apply
the Model Law in these instances, only to the extent that
you are enforcing, recognizing or vacating the foreign
arbitral award.
Par. 3 International Arbitration. Please note that the
Model Law did not define what a commercial law is all
about. Rather, it gave emphasis to what is international
arbitration. Your definition of commercial arbitration is
found in ADR Act. An arbitration is deemed
international in several instances. The first one is if the
parties to an arbitration have their places of business in
different states. Ex. Company A conducts business in
Japan. Company B conducts business in the Philippines.
The principal office of Company A is in Japan. The
principal office of Company B is in the Philippines. They
have an aggravation in the Philippines. Thats not
domestic arbitration. It is an international arbitration.
What is the international element there? The fact that
one party does not have its place of business in the
Philippines. This is the Place of Business Test. If the
places of business of the parties to an arbitration pertain
to various states and the arbitration is conducted in the
Philippines, then the arbitration is international.
What about if both parties hold their places of business
in one and the same country? That is provided for by
subparagraph b of par. 3 of Art. 1. Assuming that the
parties conduct their business in the same State, there can
still be an international arbitration for as long as their
places of business is different from where the arbitration
is conducted as agreed upon in the arbitration agreement.
Company A is in Japan as well as Company B. However,

in that arbitration agreement pertaining to a project in the
Philippines, they said that the arbitration shall be
conducted in the Philippines. It becomes now an
international arbitration as well.
The third instance where there will be an international
arbitration notwithstanding the fact that the parties hold
their principal office in the same state is if the obligation
which under that relationship between them (dafuq) is to
be performed substantially in another state or the subject
matter of their relationship is closer to another state.
Finally, par. c, it would still be an international arbitration
if by agreement, the parties stipulated that the subject
matter of their arbitration agreement relates to more than
one country. In these 4 instances, arbitration is
international. And these international arbitrations are
conducted in our country being the adoptive state.
Par. 4 is just a clarification. Assuming that a party has
several places of business. It conducts business in HK, in
Japan and Singapore. How would you know his place of
business as far as international commercial arbitration is
concerned? The place of business is that which has the
closest relationship to the arbitration agreement.
Assuming Company A conducts business in Japan, HK,
Singapore and the Philippines. Now, there is a
transaction where a supply agreement of materials is
involved. The materials should be supplied in the
Philippines. What is the place of business, then? As far as
an arbitration relating to that subject, the place of
business is in the Philippines.
If a party has no place of business, then his place of
business shall be deemed to be his habitual residence.
Par. 5 Do you still remember the first few provisions of
the ADR Act where there can be certain matters which
cannot be the subject of alternative dispute resolution?
That is what is being contemplated in this provision. In
the Philippines, if there is a a law that provides for
arbitration of a particular subject matter, under certain
procedure, then that will not be governed by the
international commercial arbitration under the Model
Law. For example, a labor dispute, seamen, crew
members of a particular vessel docked in Palawan. The
crewmen are Indians claiming their salary from the
owners of the vessel who are Russians. Unfortunately,
they are in the Philippines. They filed a case. Can they
just say, lets file for arbitration? What are they claiming?
Unpaid salary of seamen. Under our law, it will be
governed by arbitration under the NLRC. All the
elements of internationality are present but you will not
apply the international commercial arbitration provisions
of the Model Law because there is a law in the
Philippines which deals with these matters.
Fiat voluntas tua.

ARTICLE 2 Definition of Arbitration
Remember that international commercial arbitration can
either be ad hoc or administered. Whenever you use the
term Arbitral tribunal, using the Model Law, that
tribunal may either be sole arbitrator or a panel of
arbitrators. So you can refer a single individual as an
arbitral tribunal. Simply speaking, if you are into
grammar, then, thats wrong.
We discussed already the last 3 paragraphs of Article 2
when we discussed the interpretation of the law on ICA.
The 1st one being if there is an agreement, if the parties
are allowed to agree, then they can extend themselves
through their representatives. Assuming that they have
made an agreement, that agreement shall include the
rules of an institution if they agreed that their arbitration
shall be administered by an institution. We also discussed
last time that whenever the words claim and defense are
used in the Model Law, they shall refer to counterclaims
as well as defense to the counterclaim except in Article
35-a (the provision in default) or Art. 32 par 2, subpar. a.
ARTICLE 3 Receipt of Written Communication
The reason in including this provision is because most of
the delays happen because of this exchange of
communications. So, to avoid further delay, the framers
of the Model Law deemed it appropriate to provide
provisions on the receipt of communications. The receipt
may refer to actual receipt or constructive receipt. If it is
actual, it could be in two ways. The first one is when
you personally deliver the communication to the person
wherever he is found. You reside in Cebu but you are in
Baguio for a convention. I give it to you in Baguio. That
is personal delivery. Anywhere you are found. Second
actual receipt is when you deliver the communication to
the place of business, to his habitual residence or his last
known address. For as long as there is proof of delivery,
it is valid. Constructive receipt happens when the one
sending the communication is no longer aware of the
current whereabouts of the addressee. What you do is if
you know his last place of business, his last habitual
residence or his last known address, you send it there
through mail or any kind of delivery for as long as there
is a record to that effect. If you use LBC, it is recorded.
They are more efficient than our postal office. When is it
deemed received? On the day it is delivered.
The provisions of this article do not apply to
communications in all court proceedings.
ARTICLE 4 Waiver of Right to Object
One term which you should be very particular with is the
term derogate. Law from which the parties to
arbitration may not derogate. There are provisions of the
Model Law as well as the ADR Act that are mandatory

and there are those which are merely directory. Rule of
thumb to guide you whether it is mandatory or directoryif the law says UNLESS the parties agree to the
contrary, the rule is it is merely directory. But that is
only a guide. Chances are directory lang yan. The parties
are given discretion eh. If a provision of law or a
procedure by agreement of the parties is something that
the parties may derogate from, then non-compliance by
one party without the other party raising an objection but
rather proceeded with the arbitration and the objection
was not given in due time or within the period provided
for, then such failure to object is deemed a waiver of that
provision. Eh directory lang, hindi mandatory eh.
ARTICLE 5
The court, as much as possible, should not interfere with
the arbitration. But this is not absolute. There are
instances where the court is allowed to interfere in the
dispute. Appeal, interim measures of protection, etc.
However, Art. 5 emphasizes the fact that if at all, let us
not involve the courts anymore unless it is necessary.
When is it necessary? When it is allowed by the law itself.
Some of this instances are in Art. 6
There are 6 provisions in the Model Law where the
courts are allowed to intervene in arbitration. In Section
27 of the ADR Act which defines appointing authority,
only the first 4 are provided. However, here in Article 6
of the Model Law, added are Art. 16 par 3 and Art. 34
par 2. Who is the appointing authority under Sec. 27 of
the ADR Act? He is the one appointed by the parties or
the institution designated by the parties to act as the
appointing authority. In default of that, if the arbitration
is ad hoc, the appointing authority shall be the National
President of the IBP or his representative. If it is
institutional, the officer of the institution as defined by
the rules of such institution. Those are the appointing
authorities. Art. 16 pertains to challenge procedure.
Challenging the appointment of the arbitrator. In other
words, tapos na ang appointment. In this instance, if
there is an issue regarding the challenge procedure, you
go to the court directly na. Art. 34 par 2 pertains to the
setting aside of an award. That is a purely judicial action.
The appointing authority has no business in that award.
So, kapag courts ang usapan, yung anim. Kapag
appointing authority, yung apat lang na nasa Section 27
ng ADR Act.
Now if there is a mix-up, where do you go first? The rule
is you go first to the appointing authority. If he neglects
his duty, go to the court.
Fiat voluntas tua.

Pivotal matter: when we defined commercial arbitration,
it pertains to a dispute arising from a commercial
relationship. Diba? Whether it is contractual or not. Look
at the words in this law. which may arise between them
in respect of a defined legal relationship, whether
contractual or not. As contemplated by the Model Law,
it may apply to any kind of relationship for as long as it is
legal. However in the Philippines, if we talk of
international arbitration, it must be an arbitration which
is commercial as well. Why? Because when we signed the
UN Convention of New York of 1958 for the
enforcement and recognition of foreign arbitral awards,
our subscription to the treaty was conditioned upon the
fact that the award must be in a dispute which must be
commercial in character. So to be uniform, since we
limited our participation in the 1958 Convention to
commercial arbitration, by necessity, we also have to
define commercial arbitration and limit our international
arbitration to commercial ones.
FORM OF ARBITRATION AGREMENT
Arbitration Agreement is present when:
ARBITRATION AGREEMENT IN WRITING
o
o
o
If expressly stipulated and signed by the parties

Exchange of communications if the agreement to
arbitrate can be traced therein, then that will
constitute an agreement to arbitrate
I made a request to you, let us please arbitrate on
the dispute that happened between us. In your
defense, you did not address the invitation to
arbitrate. From that exchange of statement of claims
and defenses, it can be inferred that the parties
considered to submit their dispute to arbitration,
then it can be deemed to be an agreement to
arbitrate.
If a contract refers to a document which embodies
an arbitration clause provided that the major contract
is in writing and that the referral is very clear that the
arbitration clause shall likewise apply to the main
contract. Pag walang reference na mag-aapply din
yung clause sa main contract, hindi pwede.
ARTICLE 8
Section 24 of the ADR Act pertains to the referral to

arbitration. Actually, Article 8 is nothing else but Sec. 24.
However, there is a slight difference. Dun sa isa, there is
a mention of pre-trial. Prior to pre-trial, one party may
request. After pre-trial, both parties must request. Sa
Model Law, sabi lang, a party may request that the
dispute be referred to arbitration prior to his statement
on the substance of the dispute. In other words, prior to
the filing of any pleading. Our conclusion? Since our
principal law on ADR is the ADR Act, Article 8 of the
Model Law is deemed modified by Sec. 24 of the ADR

Act.
Par 2 If there is a pending court proceeding, the
arbitration could still be availed of and award can still be
rendered.
ARTICLE 9 ARBITRATION AGREEMENT
AND INTERIM MEASURES
This is also Sec. 28 of the ADR Act. Why is the provision
in the ADR Act very detailed while this one is a one-liner
paragraph? Because this is supposed to be a uniform law.
The simpler it is, the better.
ARTICLE 10 NUMBER OF ARBITRATORS
The parties are free to agree on the number. Failure to do
so, default mode is the panel of arbitrators shall be
composed of 3 arbitrators. Rule of thumb, you shall
never forget, agree on only 1 arbitrator. Otherwise, the
default mode is 3 arbitrators. You triple the cost.
No person shall be excluded from acting as an arbitrator
by reason of his nationality unless otherwise agreed by
the parties There is another exception there. In case of a
sole arbitrator or the appointment of a third arbitrator.
Consideration must be made by the appointing authority.
The sole arbitrator or the 3rd arbitrator must not be of
the same nationality as any of the parties.
How about the manner of appointing them? The first
rule is you can adopt your own procedure. Kung gusto
mo, maglagay ka ng sarili mong qualifications, pwede.
Pano pipiliin, bunutan, tambyolo, pwede! Kung anong
gusto niyo. Par. 3 of Art. 11 talks about a situation
wherein no agreement on procedure has been made by
the parties. Nakaligtaan baka tinamad na si Attorney.
What does the Model Law provide? Each party shall
appoint their own members in the panel of arbitrators.
The third one shall be chosen by the two arbitrators
already chosen. That is in case of a panel of 3 arbitrators.
If sole arbitrator, he must be chosen by the parties. Now,
par. 11 subparagraph 3 (a) is to the effect that if there is a
problem, you can refer to the appointing authority or the
court. Subparagraph b is also a matter which can be
referred to the appointing authority or the court.
The first scenario is there is a procedure and it was
followed. The second scenario is there is no procedure,
use the law. The third scenario is there is a procedure but
there is a failure to comply with the procedure. In which
event, you can again refer to the appointing authority.
Please note that whenever the appointing authority or the
court will make the appointment for and in behalf of the
Fiat voluntas tua.

parties relative to par. 3 and 4 of this article, the court
shall take into consideration 3 matters:
1. The qualification of the arbitrator as agreed
upon by the parties
2. There should be no circumstances relative to this
appointee that would affect his independence
and impartiality, also the expectation of the
parties. Mamaya ang dispute regarding sa future
commodities tapos ang inappoint eh high school
graduate, anong malay niya dun.
3. The non-appointment of an arbitrator who is of
the same nationality as any of the parties
GROUNDS FOR CHALLENGE
When we studied mediation law under the ADR Act, we
talked about the duty to disclose of the mediator. Here in
arbitration, there is also that duty. However, the
provision of the Model Law is simpler than that of the
mediation law. Here what are they supposed to dispose?
1. Circumstances that might affect the
independence or impartiality of the
arbitrator If you think there is a circumstance
or a fact that might affect your impartiality or
independence, you have to divulge that. Kunwari
ex-girlfriend ko yung isang party tapos
kinindatan niya ko tapos kinindatan ko din siya.
That might affect my impartiality. So kailangan
kong sabihin na ex ko siya.
2. The arbitrator does not possess the
qualification as agreed upon by the parties.
Last sentence a party may challenge an arbitrator
appointed by him or in whose appointment he has
participated after he becomes aware of the circumstances
after the appointment has been made. Inappoint mo nga
siya eh hindi mo pa alam eh. Kapag nalaman mo ayun
pwede mo na ichallenge.
CHALLENGE PROCEDURE
The parties are free to agree on the procedure

In default thereof, follow what is provided for by
law. That is within 15 days from notice of the
constitution of the arbitral body or from the
time that you became aware of that
circumstance. File a request to inhibit.
Assuming that this challenge is not acted upon.
Then, you can go to the appointing authority
within 30 days.
The decision is without appeal. If the court
already decided, it is unappealable.
ARTICLE 14 FAILURE OR IMPOSSIBILITY

TO ACT
If an arbitrator is unable or for some reasons, fails to
perform his functions or fails to act with undue delay, his
mandate is terminated if he withdraws or if the parties
agree on his termination. Otherwise, the request maybe
made by one party in accordance with Article 6. When
you challenge a particular arbitrator or an arbitrator,
either de jure or de facto, fails to perform, there are three
options:
1. He voluntarily withdraws. Chinachallenge ako?
Withdraw na lang ako. To hell with these parties.
2. If he does not want to inhibit, for the other party
to agree na iterminate na siya.
Challenge is resolved on the merits. Under the law, it says
here that otherwise, if any of the controversy remains
concerning any of these grounds, any party may request
the court or the other authorities described in Article 6 to
decide on the termination which decision shall be subject
to no appeal.
If someone withdraws, it shall not be taken against him.
CHALLENGE OF JURISDICTION
Jurisdiction is defective in two ways.
1. One is the quasi-judicial body simply doesnt
have authority. Therefore, it has no jurisdiction.
2. Second, it has the jurisdiction. However, it
abused it by making acts which are beyond his
authority.
If the issue of jurisdiction of the arbitral tribunal is to be
raised, the law says that the tribunal can rule on its own
jurisdiction. Who will determine if it has jurisdiction or
not? The arbitral body has the authority to determine.
This is the principle of competence-competence.
Par 2 is the Principle of Separability. Par 3 is how the
arbitral tribunal will resolve. The decision of the arbitral
tribunal that the contract is null and void shall not ipso
facto or ipso jure entail the invalidity of the arbitration
clause. However, it can also be proven that the
arbitration clause is likewise void. There can be a ruling
that both the mother contract and the arbitration
agreement are null and void.
A plea that the arbitral tribunal does not have
jurisdiction shall be raised not later than the
submission of the statement of defense.
Lack of jurisdiction plea must be made before the
submission of defense
Fiat voluntas tua.

Abuse of discretion amounting to lack of jurisdiction
shall be raised as soon as the matter alleged to be
beyond the scope of its authority is raised during the
arbitral proceedings.
The arbitral tribunal may, in either case, admit a later plea
if it considers the delay justied.
What must be embodied in the claim?
Assuming you pleaded that there is lack of jurisdiction.

The arbitral tribunal has the option.
It may resolve the same as a preliminary issue; or

it may resolve the same at the time they render
judgment.
So to avoid all waste of time, money and effort, wag mo

ng tanggapin kung alam mong wala kang jurisdiction.
ARTICLE 18 Equal treatment of parties
This is the minimum requirement of due process in
arbitration proceedings. First, parties should be treated
with equality and they should be given full opportunities
to present their case.
Another requirement is he be given notice.
RULE 19 DETERMINATION OF RULES OF
PROCEDURE
Parties are free to agree on the procedure to be followed
by the arbitral tribunal in conducting the proceedings
subject to the mandatory provisions of the law.
If the parties fail to agree on the procedure, the arbitral
tribunal shall determine its own procedure subject to the
mandatory provisions of the law.
ART 20 & 22 PLACE OF ARBITRATION;
LANGUAGE
Slightly modified by Sec. 30 & 31 of the ADR Act.
ART 21 COMMENCEMENT OF THE
PROCEEDINGS
Unless otherwise agreed by the parties, the proceedings
shall commence from the time the respondent has
received the request to arbitrate.
ART 23 STATEMENTS OF CLAIMS AND
DEFENSES
These are your principal pleadings.
Facts supporting his claim

Issues and the ground relied upon
Relief prayed for
Attachments of documents
If the documents are voluminous, just make a
reference to the documents which you intend to
use during the proceedings.
ART 24 HEARINGS AND PROCEEDINGS

Subject to any contrary agreement by the parties, the
arbitral tribunal shall decide whether to hold:
oral hearings for the presentation of evidence or

for oral argument only, or
whether the proceedings shall be conducted on
the basis of documents and other materials.
However, unless the parties have agreed that no hearings

shall be held, the arbitral tribunal shall hold such hearings
at an appropriate stage of the proceedings, if so
requested by a party.
Normally, the arbitral tribunal will ask the parties
whether they agree that no hearing shall be conducted
anymore. But that is very risky. Always tell your client to
make a reservation that a hearing may be requested.
Par 2 & 3:
There must be a notice of any meeting or
hearing of the tribunal
Any document submitted by one party to the
arbitral tribunal must also be submitted to the
other party.
ART 25 DEFAULT OF A PARTY
In this case, only the complainant may be declared in
default. The result is dismissal of your case because here,
the initiatory act is the request, not a statement of claim
unlike in a regular judicial proceeding.
*Recording got cut. Just read the codal provisions of the
Model Law from Art. 26 onwards. Sorry!*
______________
10/15/14 Continuation of the discussion on the
Model Law
Whenever there is conflict or a proceeding, what are
the two types of laws involved? Substantive and
procedural laws.
Fiat voluntas tua.

As far as procedural law is concerned, what will
govern ICA?
The ADR Act. It is not a substantive law, it is a
remedial law.
UNCITRAL Model Law
Special Rules of Court on ADR
IRR
All of these allow the parties to agree on the procedure.
But the agreement of the parties is not the law. It is the
law between the parties but not the law that will govern
the arbitrators.
What about substantive law?
Law agreed upon by the parties
If you refer to a particular law belonging to a particular
state, that law is not its conflict of law but
substantive law. Example: Civil Code.
In default of such, adopt the processual

presumption which is the law of the place where
arbitration is conducted. In which event, you will
also consider the conflict of law in that country.
In my experience as a lawyer, an ICA was conducted

in Singapore but the parties agreed that the Civil
Code shall be applied. Unfortunately, the arbitrator
that was chosen was a Singaporean lawyer and since
he does not know what the Civil Code is all about,
we had to present evidence on what the Civil Code is
all about. Unfortunately again, he forgot everything
that we discussed. Thus, he applied the common law
on sales. And this is wrong because under our Civil
Code, the parties must restore to each other what
they may have received in case rescission occurs. In
the case, it was rescinded, there was no order to
restore the goods and we were required to pay the
purchase price.
Ex aequo et bono
The UNCITRAL Model Law says that arbitral
tribunals shall decide ex aequo et bono or as amiable
compositeur only if the parties has expressly
authorized it do so. Aequo et bono is nothing else
but equity and fairness.
When do you use equity under our jurisdiction?
Only when there is no applicable law. If there is an
applicable law, the duty of the court is just to apply
the law.
The provision of the Model Law is to the effect that
equity is to be used only when allowed by the
parties. If the parties do not allow equity to be used
in rendering the award, the arbitrators have no

business using equity.
Amiable compositeur
Making an adjustment. Like the Solomonic
Decision Under the law perhaps would have been
to conduct a blood test but Solomon just used
adjustment, tinignan lang yung tao, itsura nung
babae. Parang compromise. If you are going to
accept this small amount, then I will convince the
other party to pay you. Arbitrators cannot also act as
amiable compositeur unless the parties agree to it.
In either case, the decision must be based on the
contract as interpreted by the substantive law as
agreed upon by the parties.
How does the panel of arbitrators exercise its
decision-making authority?
If sole arbitrator, he himself must decide
If panel of arbitrators, the decision must be made
by the majority of the arbitrators unless
otherwise agreed by the parties
In case of questions of procedure, it may be
decided by the presiding arbitrator
What if the parties instead of allowing the arbitrators to
render an award, entered into a compromise agreement?
The arbitration proceeding shall be terminated. Upon
request with the arbitral tribunal, the compromise
agreement shall be made in the form of an award.
Form and contents of the award
1. Must be in writing
2. Signed by the arbitrator/s
3. Basis of such award unless the parties agree that
no such basis shall be stated
4. Place and date of arbitration
If one of these requirements has not been complied
with, what will happen to the award? *Sir did not
answer*
After the award has been rendered, what will happen to
the arbitration proceeding? It will be terminated. What
is the requirement so that it will be terminated?
When the award has become final or there is an order
terminating the proceeding. When does an award
become final? If the party whom the award is invoked
against does not contest the award within 30 days from
the day the award has been rendered. Where shall he
contest? To another body via an appeal. Therefore, the
authority of the arbitral tribunal shall not be terminated if
there is an appeal.
Fiat voluntas tua.

The period determinative of the finality of the award are
the periods provided for in the correction and
interpretation of the award by the arbitral body. After the
lapse of 30 days and there is no request for correction or
interpretation, it becomes final.
Rules on Correction and Interpretation of the award
CORRECTION
When: Within 30 days from the receipt of the award,
unless another period has been agreed upon
Requirements
Request to the tribunal
Notice to the other party
Subject matter of the correction
Errors in computation
Clerical or typographical errors
Any errors of similar nature
How about errors in judgment? Not a proper
subject matter of correction.
INTERPRETATION
When: Within 30 days from the receipt of the award,
unless another period has been agreed upon
Requirements
The remedy of a request for interpretation has
been previously agreed upon by the parties
NOTE: The arbitral tribunal may, in its own initiative, correct
its award within 30 days
ADDITIONAL AWARD
If a particular issue subject of the proceedings has been
omitted from the award.
When: Within 30 days from the receipt of the award
Requirements:
Remedy to request has been previously agreed
upon by the parties
NOTE: The periods may be adjusted by the arbitral tribunal if
necessary.
TERMINATION ORDER
What are the instances that would justify the order of
termination?
1. The parties agree to terminate
2. The claimant withdraws, unless the respondent
objects thereto and the arbitral tribunal
recognizes a legitimate interest on his part in

obtaining a final settlement on the dispute
3. Any further proceeding will no longer be
necessary or possible
RECOURSE AGAINST THE AWARD
What is the remedy in case a party is not satisfied
with the award? He must file a petition to set aside the
arbitral award.
What is the period to file such petition? There is no
period provided by the Model Law
Grounds for setting aside
1. A party to the arbitration agreement was under some
incapacity; or the arbitration agreement is not valid
under the law to which the parties have subjected it
or in default an agreement as to the law applicable,
under the law of the country where the arbitration
proceeding was conducted;
2. The party making the application was not given
notice to the appointment of the arbitrators or the
proceeding or was otherwise unable to present his
case;
3. The award deals with a dispute not otherwise a
subject of the arbitration agreement or the terms of
the submission to arbitration or beyond the terms
thereof;
NOTE: Principle of separability may be applied
4. The composition of the arbitral tribunal or the

proceeding was not in accordance with the
agreement of the parties UNLESS their agreement
is in violation of a mandatory provision of the law
What if at the time the arbitration agreement was
contracted, one of the party is a minor but at the
time of arbitration, he is already of age, is that a
ground to vacate an arbitral award? There is no waiver
even if that previously incapacitated party participated in
the arbitration proceeding. The law requires that the
parties are capacitated at the time they enter into an
arbitration agreement.
Invalidity of the arbitration agreement
Illustration: A & B entered into an arbitration agreement.
The agreed that the arbitration shall be conducted in the
Philippines but the substantive law shall be the law of
Malaysia. It is valid under the Malaysian law but it is
invalid under the Philippines. Can the award be
questioned? Yes because the arbitration agreement is not
valid under the Philippine law as well.
*Feeling ko mali si Sir dito. Sabi kasi sa Model Law,
isusubject mo lang siya sa law of the state where the
Fiat voluntas tua.

arbitration is being conducted kapag walang agreement as
to the substantive law that will apply. So kung merong
agreement, like yung sa Malaysia, kung valid sa Malaysia,
hindi na dapat siya maqquestion. Kung wala yung
agreement na Malaysian Laws yung mag-aapply, saka lang
magiging ground to question the award dahil valid sa laws
ng country where the arbitration is being conducted, i.e.,
Philippine laws. Feeling ko lang naman. Thouuuugh may
point siya sa next example*
Assuming the arbitration agreement says Issues
pertaining to marriage shall be subject to international
commercial arbitration with regard to disputes regarding
the parties properties Can you subject that arbitration
in the Philippines? No because under the ADR Act, it is
excluded. It is not arbitrable.
*So pano na? Lol*
DUE PROCESS REQUIREMENT
Notice
Opportunity to present his case
Even if he was notified but he was not given an
opportunity to present his case, the award is
questionable.
These are the grounds to set aside provided for the
parties. What are the grounds provided for the court
to set aside the award?
1. Subject matter of the arbitration is not capable
of settlement
2. Subject matter of the award is contrary to public
policy
What shall the party who is very much in favor of the
award do after the rendition of the award? File for the
recognition and enforcement of the award.
Recognition
What law shall govern the recognition and enforcement
of an award in an ICA? ICA conducted in the Philippines
shall be governed by the Model Law as adopted by the
Philippines. It is just like any other domestic arbitration.
ICA conducted outside the Philippines shall be
Is it possible to file a petition for recognition and a
petition for enforcement separately or is that already
a splitting of cause of action? It is possible. It is
allowed and not considered as splitting of cause of action
because of the international character of the arbitration.
There is a big possibility that while it has been rendered
in this country but it has to be enforced in another
country.
If the ICA was conducted in the Philippines but the

award is to be enforced in Japan, there is nothing that
would prevent the winning party to have the award
recognized in the Philippines.
As far as arbitral awards rendered in the Philippines are
concerned, we do not ask for their recognition. Rather,
we ask for their confirmation.
ADR ACT
Foreign awards under the ADR Act
Convention award
Non-convention award
Why is it considered as a convention award? It was
rendered in a country who is a signatory to the UN
Convention of New York.
What else is the distinction between them as far as
enforcement and recognition are concerned? A foreign
convention award regardless of the state where it was
rendered may be recognized and enforced in the
Philippines.
Even if it is a non-convention award, by reason of the
principle of reciprocity and comity among nations, that
award rendered in that non-convention country may still
be enforced in the Philippines as a convention award.
With respect to non-convention awards rendered in a
country where we dont have a reciprocity and comity
agreement, then we will have to treat it as just another
foreign judgment.
Foreign award vs. Foreign judgment (Possible bar
question)
Foreign award A conclusive presumption of a right.
Once it is recognized in the Philippines, it will be
enforced as any other decision in the Philippine courts. It
is an enforceable decision. The court will no longer
inquire into the merits of the award. The only thing you
have to prove are the jurisdictional facts, i.e.,
that the country where it was rendered is a
signatory to the UN Convention
documentary requirements (authentic copy of
the award, the arbitration agreement)
if the language is a language not pursuant to the
model law, a translation thereof
If you miss one of these jurisdictional requirements, the
award will not be recognized in the Philippines.
Rule 39, Sec. 48 of the ROC
Under the New York Convention, once a foreign arbitral
award has been recognized in the Philippines, it can be
enforced as an arbitral award.
Fiat voluntas tua.

If it is merely a foreign judgment, in order to enforce it,
you have to abide by this rule under the Rules of Court.
Foreign judgment under the ROC.
If it is merely a presumption of an existence of a right,
then it is subject to rebuttal by the other party. It is
merely a proof that you have a right. There must be a
determination by the judge that you really have that right.
The conclusion is that it is as if you have to file your
claim in the Philippines again and there will be a trial de
novo. Papatunayan mo nanaman lahat. With the
exception that you can use that foreign judgment as a
proof of your right before the court. However, in an
arbitral award which was already recognized here, you
need not prove it again. You simply have to state the
jurisdictional facts which we have enumerated earlier.
If
the
court
ordered
the
recognition/enforcement/setting aside of the
arbitral award? What will be the remedy of the losing
party? The resolution of the RTC which recognized or
enforced or set aside the arbitral award maybe subject of
further appeal. To whom? To the Court of Appeals
under Sec. 45 of the ADR Act.
Aside from this appeal, is there anything else? Rule
43(1) Awards rendered by voluntary arbitrators are
subject to appeal to the Court of Appeals. An arbitral
proceeding is a quasi-judicial proceeding. That is why we
have to link it to this provision of the Rules of Court. It
is subject to petition for review under Rule 43 where
questions of both fact and/or law may be brought. Note
that it is a direct appeal to the Court of Appeals from the
arbitral body to the CA; not from the RTC to the CA.
When there is manifest disregard of the law, you may use
this remedy.
Domestic Arbitration
An arbitration conducted in the Philippines which does
not have an international element. *Refer to the elements
that make an arbitration international*
In international arbitration, the arbitration is further
qualified by commercial because the subject matter of the
arbitration pertains to a dispute arising from a
commercial relationship, whether contractual or not.
What about in domestic arbitration, what can be the
subject matter of arbitration? It can be commercial
(whether contractual or not) or non-commercial. The
subject matter of arbitration is anything that pertains to a
legal relationship.
What type of dispute can be the subject matter of
domestic arbitration then if it only calls for a legal
relationship? It must be a dispute that can be the
subject matter of a legal action. For as long as they are
not excluded by the ADR Act such as disputes regarding
legal separation, jurisdiction of courts, future legitimes,
those which cannot be compromised, etc.
SEC. 33 of ADR Act
Mentioned certain provisions of the Model Law
DOMESTIC ARBITRATION
What shall govern Domestic Arbitration?
Primarily, by the Arbitration Law (RA 876)
Model Law
ADR Act provisions pertinent to international
commercial arbitration (Sec 23-32)
IRR of the ADR Act
Special Rules of Court on ADR With respect
to court proceedings affecting domestic
arbitration
By virtue of Sec. 32 of the ADR Act, reference has been

made to the Arbitration Act of the Philippines.
Art 8 of the Model Law Arbitration

Agreement and Substantive Claim
If the parties brought before the court a subject
matter of a dispute which is also covered by the
arbitration agreement, upon request of one party
before pre-trial or upon request of both parties after
pre-trial, the court shall refer the matter to
arbitration UNLESS the court finds out that the
arbitration agreement is void.
If after pre-trial, only one party requested the court
to refer the case to arbitration, and the court denied
the request because only one party and not both
requested, can there still be arbitration nonetheless?
Yes. Even if the court will not refer you to
arbitration, just proceed. By express provision of the
law, notwithstanding the pendency of the referral by
the court, parties may still proceed with the
arbitration.
Article 10 Number of Arbitrators
o Parties may determine the number
o In default thereof, there will be 3 arbitrators
Appointment of Arbitrators
o Parties may agree on the procedure of
appointment
Qualifications of the Arbitrators
o No person shall be precluded to act as an
arbitrator by reason of his nationality
Fiat voluntas tua.

IF SOLE ARBITRATOR,
GR: Parties must agree and appoint together the
arbitrator
IF THEY FAIL TO APPOINT: Appointment shall be
made by the appointing authority.
IF PANEL OF ARBITRATORS,
GR: Each party shall appoint 1 arbitrator. The two
appointed arbitrators shall select the 3rd arbitrator.
IF THE 2 FAILED TO AGREE ON THE 3RD
ARBITRATOR: The appointing authority shall appoint.
Assuming that there is an agreement on the
appointment. Is there still an instance where the
appointing authority will make the appointment
nonetheless? Yes. When the procedure is not followed.
Determine whether it is a sole/panel of arbitrators.
NOTE: While the law always mentions of appointing
authority, the IRR says that if the appointing authority fails to
act within 30 days, that authority will be passed on, by way of a
request, to the court.
In other words, the order is: 1. Parties 2. Appointing

Authority 3. Court
IF ANY OF THESE MADE AN APPOINTMENT,
SUCH
APPOINTMENT
SHALL
NOT
BE
APPEALABLE. IT BECOMES IMMEDIATELY
EXECUTORY.
ART. 12 (Model Law) GROUNDS FOR
CHALLENGE
There exists a justifiable doubt as to the
independence and impartiality of the arbitrator
The qualifications of the arbitrator are not met
NOTE: Under the Arbitration Law, there are certain
qualifications provided. These qualifications must be
met as well. Otherwise, there is a ground to challenge.
What is the first duty of an arbitrator?

Before the acceptance of appointment or as soon as the
circumstance arises, disclose circumstances/facts that
would affect his independence and impartiality
NOTE: This is subject to waiver by the parties.
Before whom shall the challenge shall be submitted?

It must be filed with the arbitral tribunal.
What will happen next after submission of the
challenge? The arbitrator concerned shall be given the
prerogative either to agree or to deny the challenge. In
other words, he accepts or he withdraws. If he accepts
the challenge, he is given the right to defend himself. On
the part of the parties, they may agree nonetheless to
remove the challenged arbitrator. Substitution shall take
place in this case.
NOTE: The agreement to remove an arbitrator may only
be exercised once and that is immediately after the filing
of the challenge.
If the arbitrator accepts the challenge, it shall now be the

duty of the arbitral tribunal to resolve the challenge.
If the tribunal resolved in favor of the challenged
arbitrator, it is an unsuccessful challenge. As such, that
party who made the challenge can go to the appointing
authority which may deny or grant the challenge. If it
grants the challenge and therefore removes the arbitrator,
it shall be unappealable. If the decision is to retain the
arbitrator or fails to act within 30 days, make a request to
the court.
NOTE: In all stages of the challenge, the arbitral tribunal is
obliged under the rules to continue with the proceeding. The
only instance where it will stop the proceeding is when
the challenge reaches the court. In which event, the arbitral
tribunal will have to suspend the proceeding in deference to
the courts authority. Once the latter decides on the challenge,
the proceeding is immediately resumed. If the decision is
removal, there will be substitution.
PROCEDURE OF THE ARBITRATION

PROCEEDING
1. Parties are free to agree
2. If they fail to agree,
If institutional, follow the rules of the institution
If ad hoc, that which is adopted by the arbitrators
in consultation with the parties
APPLICABLE PROVISIONS OF THE ADR ACT
ON DOMESTIC ARBITRATION
CHALLENGE PROCEDURE
A party has 15 days from the time he receives a
communication as to the appointment of the arbitrator
OR from the time he learns the circumstance which is
the ground to challenge the appointment to challenge the
appointment unless another period has been agreed upon
by the parties.
Sec. 22 Legal Representation

Even a non-lawyer may represent the parties. However, if
the representative is a non-lawyer, he may not represent
the party before the court and any quasi-judicial agency.
Meaning prior to the constitution of the arbitral body, for
purposes of application for interim measures of
protection OR during the proceedings where the tribunal
Fiat voluntas tua.

cannot act, the representative of the party must be a
lawyer.
CONFIDENTIALITY
All matters in the arbitration proceeding are confidential
except:
Parties have agreed
Matters which must be disclosed to the court
NOTE: ADR does not address multiplicity of suits

but actually promotes it; however the focus is not
related to the multiplicity of suits instead to promote
speedy resolutions
2. Whenever the law allows court intervention, the court

will intervene; however this intervention will be limited
to those allowed by the law
ARBITRATION LAW
Who are qualified to be a party to an arbitration
proceeding? Persons who are parties to a valid
arbitration agreement or a valid submission to arbitration.
Not anybody can be a party to arbitration.
SPECIAL RULES OF COURT ON ADR

What are the policies of the state with regard to
ADR?
1. To promote the use of ADR in resolving disputes
2. To encourage the participation of the private sector
in the different modes of ADR
3. To encourage the party autonomy in the settlement
of disputes
Among these policies, which are enunciated by the
Special Rules on ADR? The policy to actively promote
the use of the modes of ADR and the principle of party
autonomy.
What is the principle of self-determination as
compared to the principle of party autonomy? Selfdetermination is where the parties are the ones making
their own decision which is only applicable to mediation.
Principle of Party autonomy is the freedom of the parties
to make arrangements for the settlement of their dispute
and it applies to all modes of alternative dispute
resolutions.
The court does not turn its back against ADR

instead the intervention should be in a
cooperative stance with respect to ADR.
If the law does not say that you can file an
appeal or a motion for reconsideration, then the
court shall not grant it.
ADR and the court are not independent with
each other, instead they are complementary
JUDICIAL POLICIES ON ARBITRATION

1. The court should refer the parties to
arbitration if they agree to arbitrate
Why? The basis of the court to do such is the
law on contracts. Between the contracting parties,
the terms and conditions embodied in that contract
shall be the law between them. If the parties agree
that their dispute will be solved via arbitration, it
shall be solved by arbitration. The court will simply
implement that law between them.
Preference for arbitration - Unlike before
where lawyers can make up reasons to avoid
arbitration, now there is already a law that
prevents them to avoid arbitration.
8 grounds to avoid arbitration (before) not valid
excuses anymore
What are the judicial policies in relation to ADR in

the Special Rules on ADR?
1. To promote the use of ADR modes, specifically
mediation and arbitration.
How will this be implemented and what is the
use of promoting ADR?
To unclog the court dockets
To promote speedy resolution of disputes
MOST IMPORTANT: To curb litigious
culture (adversarial attitude of the parties
involved wherein they always consider each
other as their enemy)
Fiat voluntas tua.
1. Referral tends to oust a court of its

jurisdiction
2. The court is in a better position to resolve
the dispute
3. Referral would result to multiplicity of suits
4. Arbitration proceeding has not commenced
5. Place of arbitration is in a foreign country
6. If one or more of the issues are legal and
one or more arbitrators are not lawyers
7. One or more of the arbitrators are not
Philippine nationals
8. One or more of the arbitrators are alleged
not to possess the required qualification
under the arbitration agreement or law.

2. Principle of Competence-Competence - The
court shall have the authority to determine whether it
has the authority to resolve the dispute
First competence: Since the arbitral tribunal is the party
involved, then it will be given the first crack to determine
whether it is competent.
Types of issues involved in the competence of the
Arbitral Tribunal
Whether or not the arbitral tribunal has
jurisdiction over the dispute
Whether or not there is an existing valid
arbitration agreement
Whether there is a condition precedent which
must be complied with
Second competence: The court shall have the authority to
determine whether it has the authority to resolve the
dispute
Elements of competence-competence
In the principle of competence competence,

when you give the first crack to the arbitral
tribunal to determine its jurisdiction, the court
shall act with restraint.
Act with judicial restraint Dapat hindi

nagmamadali. If the arbitral tribunal has the capability
to resolve the issue on its own, the court shall let the
tribunal be the one to rule on the dispute. It doesnt
mean to refrain.
When the court will resolve the issue of

existence, validity and enforceability of an
arbitration agreement, then it will resolve it in a
prima facie manner.
Prima facie determination Tentative in
character; will stand and has support but is
subject to change if there is a stronger ground to
change it.
Prima facie evidence sufficient to prove a legal
fact until a stronger evidence is made available.
Pwedeng palitan. For as long as you can give a
better basis for your new position but if you
cannot present a better position, it stands; it will
govern. Pag sinabi ng court, this arbitration
agreement is invalid, that is only a prima facie
determination of the court. You can still prove
that it is valid. Same is true with the opposite, pag
sinabing valid, pwede mo pa din iprove na invalid.
3. Principle of Separability arbitration clause shall

be treated separately from the mother contract.
4. Recognition of the freedom of the parties to
determine the procedure of the arbitration itself
Pag gusto nilang isang taon ang arbitration nila, isang taon
kung gusto nila isang oras, isang oras. Walang pakialam ang
korte diyan. What is the rule in case there is no
agreement? The arbitral tribunal is free to adopt its
own procedure. The Rules shall only be suppletory in
character EXCEPT if the provision of the Rules is
one which the parties cannot derogate and therefore
must be followed. In other words, if it is a
mandatory provision.
JUDICIAL POLICIES WITH RESPECT TO
MEDIATION
1. Court-annexed mediation is not governed by our
ADR System. Rather, it shall be governed by the
corresponding Supreme Court Circular on the
matter. If it is court-annexed mediation, it is not
within this course.
2. If the parties agree to submit their dispute to
mediation, the court shall suspend its
proceedings and refer the parties to voluntary
mediation.
3. Even if the parties agree that their dispute shall
be settled by way of mediation, there is nothing
that would prevent them to adopt subsequently
that instead of a voluntary mediation, they
simply be governed by court-annexed mediation.
What are the judicial policies with respect to
mediation-arbitration?
1. No arbitrator shall also act as the mediator of the
parties and that in any negotiation conducted for
purposes of settlement, no arbitrator should be
allowed to attend.
2. The mediator cannot also act as an arbitrator
except when the settlement agreement is reached
by the parties and part of that settlement
agreement states that their mediator shall also act
as their arbitrator for purposes of rendering an
award based on the settlement agreement.
Fiat voluntas tua.

RULE 1
What are the actions governed by the Special Rules
on ADR? (ARI-ACTED-IF-CD)
1. Relief in relation to existence, validity and
enforceability of an arbitration agreement.
2. Referral to arbitration
3. Interim measures of protection
4. Appointment of arbitrators
5. Challenge procedure
6. Termination of the mandate of the arbitrator
7. Assistance in taking evidence
8. Confirmation, correction and vacation of a
domestic arbitral award
9. Recognition, enforcement and setting aside of an
award in an international commercial arbitration
10. Recognition and enforcement of foreign arbitral
award
11. Confidentiality protective orders
12. Deposit and enforcement of mediated
settlement agreements
What is the nature of these cases? They are considered
special proceedings as distinguished from ordinary civil
actions.
What is its other characteristic? 9 of them are
summary in character. 3 will be governed by regular
proceedings. All 3 are pertaining to awards. Out of the 9,
can we still further classify them? Yes. 7 of these
summary proceedings must be initiated by filing a
petition. 2 may be initiated by a motion. What are the 2
that can be initiated by a motion? Referral to
arbitration and confidentiality protective orders. Why?
Because there is a possibility that there is already a
pending case before the court.
Summary in character
What is the difference between these special
summary proceedings under the Special Rules on
ADR and the summary proceedings under the Rules
of Court?
1. As to the manner of initiating the proceedings
Under the Special Rules: You do not file directly
with the court. There is a condition precedent before
filing with the court. That is service of the petition
to the respondent. After serving the petition to the
opponent, you prepare a proof of service. Attach the
proof of service to the copy which you subsequently
file to the court.
Under the Rules of Court: You file with the court
first and let the court serve summons.
What is the proof of service that must be

attached to your petition before filing with the
court? It depends on the mode of delivery. If by
personal delivery, the petitioner or his
representative shall deliver it to the respondent. He
must execute an affidavit stating the circumstances
under which the petition was delivered. The time,
date, place of delivery and the manner of delivery. If
by courier, parang LBC, DHL, UPS. When they
deliver it to you or to your authorized representative,
they let you sign something, the delivery receipt.
That receipt should be attached to your petition and
it is called by the court as the courier proof of
delivery. Assuming, there is no person
present/refusal to accept/failure to deliver either by
personal or courier delivery, the proof instead would
be a reason for the failure or a statement which
states that it was indeed delivered and explains the
reason why it failed.
Who will execute the affidavit in a courier
service?
There is no need for an affidavit under the summary
of proceedings, instead it is still the courier proof of
service which will prevail provided that it is indicated
therein that there was an attempt and the reason why
that attempt failed.
Assuming that you have complied with the proof
of service and have performed the necessary
filing, what will the court do?
When the court finds that the petition is sufficient in
form and substance, then it will proceed, otherwise,
it will dismiss your petition.
Sufficient in form the petition complies with all
the formal requirements provided by the rules
Sufficient in substance There are allegations that
should be embodied there, not only the grounds, but
also the contents of the petition required like the
legal capacity to sue and be sued, factual
antecedents, reliefs, and also the ground relied upon.
You have to attach evidence that will support your
factual allegations, including the pertinent
documents which are the subject matter of the case.
If all of the allegations enumerated are met, then
there is sufficiency in substance.
What are the formal requirements under the
summary proceedings?
1) All pleadings to be filed in the summary
proceedings whether it is the principal motion,
an answer, or an opposition, they must be
verified by the party concerned.
2) Certificate of non-forum shopping
Fiat voluntas tua.

3) Proof of service of the petition to the other
party before filing in court
4) Signature of the lawyer, MCLT compliance
number, IBP number, PTR number, etc. and
since this done in the RTC of course there will
be a need for a lawyer.
After determining that it is already sufficient in
form and substance, the court shall:
1) Direct the defendant to file an opposition within
15 days after receipt of notice
2) There should be a setting of a hearing which
shall not be more than 5 days from the lapse of
the period to file an opposition or comment
Rule 1.3 (B) Notice.-Except for cases
involving Referral to ADR and
Confidentiality/Protective
Orders
made through motions, the court shall,
if it finds the petition sufficient in
form and substance, send notice to the
parties directing them to appear at a
particular time and date for the
hearing thereof which shall be set no
later than five (5) days from the lapse
of the period for filing the opposition
or comment. The notice to the
respondent shall contain a statement
allowing him to file a comment or
opposition to the petition within
fifteen (15) days from receipt of the
notice. X X X
So let us visualize that. I issued an order when you
receive it, file your opposition within 15 days. The
date of the hearing will be included that notice
which shall be no more than 5 days from the lapse
of the period to file the comment or opposition.
HOWEVER, Rule 3.17 provides that the
comment/opposition must be filed within fifteen
(15) days from service of the petition.
opposition thereto, the court will simply ask for

clarificatory questions.
After the hearing, when will it be resolved?
Within 30 days after the hearing.
Lets go to the other 3 which shall be resolved by
regular special proceeding.
What is the procedure there?
1. File the initiatory pleading with the court
2. Court shall serve the petition to the other party and
require him to file his answer within 15 days from
the receipt of the petition because the order
requiring them to file his answer attached thereto is
the petition.
What will take the place of summons in order to
comply with due process of law? The compliance with
jurisdictional facts.
Jurisdictional facts
Proof that the respondent has received a copy of
the petition
That he has been served a copy of the notice of
hearing
Summary of topics to be discussed
Who can file a petition?
When can you file the petition?
What are the grounds to file the petition?
What are the contents of the petition?
When to file your opposition or comment?
What would be the possible relief that could be
granted by the court?
It approves the relief
It denies the relief
What will be the remedy in case the parties do
not agree with the relief provided?
RULE 3 JUDICIAL RELIEF INVOLVING THE
ISSUE OF EXISTENCE, VALIDITY AND
ENFORCEABILITY OF THE ARBITRATION
AGREEMENT
The Rules on Summary Procedure provide that the

comment or opposition must be filed within 15 days
from the receipt of the notice. However, in Rule 3, it
is from the service of the petition. Which one will
we adopt here? *Sir did not answer huhubelz*
In what type of arbitration is this available? Only in

domestic and international commercial arbitration. If
foreign arbitration, this will not apply.
Assuming that a comment or opposition was filed,

we are now in the hearing. What happens during
the hearing? It shall only be for 1 day. Since it is
summary, and there is already a petition and an
Where is international commercial arbitration

conducted? When we studied the Model Law, this law
shall apply to arbitration conducted in the state what is
the state referred to in the Model Law? The adopting
state. If the Philippines adopted it, it should be
conducted in the Philippines. It must be conducted in the
Fiat voluntas tua.

adopting state. This is a fundamental rule. International
commercial arbitration under the Model Law as adopted
by the Philippines are conducted in the Philippines. If
they are conducted outside the Philippines, it is not
international commercial arbitration; under our law, it is a
foreign arbitration.
The issue on the EVE of an arbitration agreement shall
refer only to arbitration conducted in the Philippines and
they may only either be domestic arbitration or
international commercial arbitration.
When do you file this? When is this remedy
available? Before or after the commencement of the
arbitration.
Who can file this action? Only the party to an
arbitration agreement who is questioning the EVE of the
arbitration agreement. Not any party although the rule
says any party. Hindi interesado sa pagquestion ng validity ng
arbitration agreement yung party na gusto makipag-arbitrate. He
is for the validity of the arbitration agreement. Example:
10 years ago I entered into an arbitration agreement with
you, tapos ngayon sinasabi mo pinilit lang kita ginamitan
kita ng force para mag-enter into the arbitration
agreement. Sino pwede magfile ng action? Ikaw lang.
Kasi ako, in favour of validity. You are in favor of the
invalidity. The word any in the rule must be interpreted
to be the party questioning the EVE of the arbitration
agreement. You can read it in between the lines., to
determine any question Presumption is in favor of
validity of the arbitration agreement.
When will arbitration commence? Sending of the
request and receipt thereof by the other party. By the
time the other party has received the request, the arbitral
proceeding has commenced. Not the constitution of the
arbitral tribunal. The materiality of the constitution of the
arbitral tribunal lies with the fact that prior to the
constitution of the tribunal, you file your interim measure
of protection with the court. After it has been
constituted, sa arbitral tribunal na.
How about in construction industry arbitration? The
proceeding commences upon filing the petition before
the CIAC.
BEFORE THE COMMENCEMENT OF THE
ARBITRATION PROCEEDING
Remember that you cannot go to court without a
justiciable issue. There must be a controversy before the
court may exercise its judicial power because it is a
passive arm of the government. Prior to the
commencement, you can question the arbitration
agreement. But when will you really question the
arbitration agreement in this case where there is no

issue yet? There is a opinion that this is a dead remedy.
Even if there is a remedy like this, it cannot be used. But
its just an opinion.
Where do you file the petition? Before the RTC of the
principal place of business or residence of any of the
parties.
What are the contents?
The facts showing that the persons named as
petitioner or respondent have legal capacity to
sue or be sued;
The nature and substance of the dispute
between the parties;
The grounds and the circumstances relied upon
by the petitioner to establish his position; and
The relief/s sought
Ito yung sinasabi kong substantial requirements.
Grounds: That the arbitration agreement is either
Void
Invalid
Unenforceable
Inexistent
The petitioner must attach an authentic copy of the
arbitration agreement. What do you mean by
authentic? A copy the genuineness and due execution of
which can be seen on its face. Like a certified true copy
or the original copy.
All other attachments are merely formal requirements.
BUT with respect to the annex of the arbitration
agreement, it is already a substantial requirement.
What is the initial action of the court?
To exercise judicial restraint to determine first
whether the arbitral tribunal is capable on ruling
on the dispute; it must not be an eager beaver.
Declare the arbitration agreement as inexistent
Declare the validity of the arbitration agreement
What is the remedy of the losing party if the court
declares the arbitration agreement as valid? Shall not
be subject to MR, appeal or certiorari. However, since it
is merely a prima facie determination, such prima
facie determination will not, however, prejudice the right
of any party to raise the issue of the existence, validity
and enforceability of the arbitration agreement before the
arbitral tribunal or the court in an action to vacate or set
aside the arbitral award.
Fiat voluntas tua.

AFTER THE COMMENCEMENT OF THE
ARBITRATION PROCEEDING
Who can file? Any party who questions the EVE of an
arbitration agreement.
What is the condition precedent before filing this?
The fact that the issue of EVE of the arbitration
agreement has been raised earlier before the arbitral body
but the latter ruled in favor of the existence or validity of
the arbitration agreement. That is why you will go to the
court to question kung valid nga o hindi.
Where do you file? RTC of
Place of business of either of the parties
Place of residence of either of the parites
Place where the arbitration is conducted
If you are lazy to memorize, if there is no arbitration yet,
you either bring the action in the court where either of
the parties reside or where their principal place of
business is. If the arbitration has already commenced,
then you file in the place where the arbitration is
conducted.
In specific cases wherein the relief is directly related to a
particular place, then youll file your petition there. For
special cases involving Protective Orders, then you have
to file in the area covered therein.
Contents: SAME + Attach the ruling of the arbitral
body
Court Action
Deny Uphold the validity/existence
Grant declare the arbitration agreement
void/inexistent/unenforceable
REFERRAL TO ARBITRATION
When do you go to court and ask for a referral? If
there is violation of the arbitration agreement.
Who files the referral? Normally, it will be the
defendant because of course, the party who filed the
action before the court, i.e., the plaintiff, is interested in
pursuing the court action.
What is the requirement?
An violation of the arbitration agreement

because a case was filed in court even if there is
an arbitration agreement.
file for a petition; instead you file a motion in the same

court. In this particular relief, the initiatory pleading
required is a simple motion. And this is one of the two
instances where the relief may be initiated by a mere
motion. The others must be initiated by a petition.
Is it possible to file a petition even if there is already
a pending case? No, because there is already a case.
If there is no case yet, is there a need for referral?
No, your remedy would be to request for an arbitration
to the other party; send a demand to the other party.
What are the possible defenses in this kind of relief?
If the other party agrees that there is an arbitration
agreement, then the court will simply refer them. Any of
the grounds under Rule 3 can be raised as a defense in
this case.
The arbitration agreement is

o Inexistent
o Invalid
o Unenfoceable
The subject matter of the dispute is not proper
for arbitration because it is violative of the ADR
Act
Court Action
Grant the motion. In such event, the referral will
be made
Deny the motion - Proceed with the civil action
What is your remedy? If the court refers the parties to
arbitration, no appeal or no certiorari. But if there is no
referral you can go for certiorari or motion for
reconsideration but not appeal. Why no appeal?
Because the order denying the referral is an interlocutory
order in that case. An interlocutory order is not
appealable. The remedy is a petition for certiorari under
Rule 65 of the ROC if there is grave abuse of discretion
or excess or lack of jurisdiction. Why MR? Because it is
a pre-requisite in order for you to be able to file a
petition for certiorari under Rule 65 because it is required
that the party applying for certiorari must have no other
remedies available.
APPLICATION FOR INTERIM MEASURES OF
PROTECTION
Who can file? Any party as long as he is in need of
protection because someone is doing an act which is
injurious to him or someone is doing an act which
violates his rights (injunction) or the other party is doing
some acts which will eventually render the award useless
(attachment).
What type of pleading is filed? Since there is already a

pending case, you wont have to go to another court and
Fiat voluntas tua.

When to apply?
Prior to the commencement of arbitration
After the commencement of the arbitration
proceeding but before the constitution of the
arbitral tribunal
After the constitution of the arbitral tribunal but
the tribunal has no power to issue the protective
order or even if it has the power, its exercise will
be ineffective
Reasons for the court to grant the IMP
The need to prevent irreparable loss or injury;
The need to provide security for the performance of
any obligation;
The need to produce or preserve evidence; or
The need to compel any other appropriate act or
omission.
Contents
There is an arbitration agreement
The arbitral tribunal has not yet been constituted
Relief sought
Grounds relied upon
NOTE: The grounds provided under the provisional

remedies under the ROC are the same grounds
described here
NOTE: Aside from these, a party may also ask the courts
assistance in the enforcement of the protective measure
granted by the arbitral tribunal.
Duty of the court to refer back

The court shall not deny an application for assistance in
implementing or enforcing an interim measure of
protection ordered by an arbitral tribunal on any or all of
the following grounds:
The arbitral tribunal granted the interim relief ex
parte; or
The party opposing the application found new
material evidence, which the arbitral tribunal had
not considered in granting in the application, and
which, if considered, may produce a different
result; or
The measure of protection ordered by the
arbitral tribunal amends, revokes, modifies or is
inconsistent with an earlier measure of
protection issued by the court.
This is when the party went to court first and
was issued a protective order and thereafter,
applied for another before the arbitral tribunal
which caused an inconsistency. In which case,
the court shall give the arbitral tribunal to
resolve these matters. The court shall exercise
judicial restraint.
Presumption: The arbitral tribunals protective order

has modified the one issued by the court.
What if an application has been made before the
court and during the pendency, the arbitral tribunal
has been constituted, what will the court do? It shall
defer any action and refer the matter to the arbitral
tribunal UNLESS one party can prove that the tribunal
has no power or even if it has the power, has no means
to enforce it.
APPOINTMENT OF ARBITRATORS
When can the court act as the appointing authority?
1. If institutional
If any party failed or refused to appoint an
arbitrator
When the parties have failed to reach an
agreement on the sole arbitrator (Sole arbitrator)
When the two designated arbitrators have failed
to reach an agreement on the third or presiding
arbitrator (panel of arbitrators)
If there is no agreement as to the procedure, the
institution under whose rules arbitration is to be
conducted fails or is unable to perform its duty
as appointing authority
2. If ad hoc
If there is no appointing authority agreed upon and the
National President of the IBP or his duly authorized
representative fails or refuses to act within 30 days or
that provided by the parties
3. If the parties failed to appoint and the appointing
authority likewise fails or refuses to appoint
RULE: Parties -> Appointing Authority -> Court
Who may request for appointment? The party who
has not reneged on his duty to appoint
Court Action
If in the pendency, appointment has been made
by the parties or the appointing authority,
dismiss.
Appoint
Contents
The general nature of the dispute
The appointment procedure, if there is any
The number of arbitrators agreed upon, if there
is any agreement
The special qualifications, if any
Fiat voluntas tua.
The fact that the Appointing Authority, without

justifiable cause, has failed or refused to act as
such within the time prescribed or in the absence
thereof, within a reasonable time
The petitioner is not the cause of the delay in, or
failure of, the appointment of the arbitrator
Authentic copy of the arbitration agreement
Proof that the Appointing Authority has been
notified of the filing of the petition for
appointment with the court
to
to
ASSISTANCE IN TAKING EVIDENCE
CHALLENGE PROCEDURE
Here, it is the arbitrator who is being challenged; not the
authority of the arbitral tribunal.
Ground: He fails to meet the qualifications either by the
ADR Act, the Model Law or the Arbitration Law or the
ones set by the parties
Contents
Arbitrators challenged and their addresses
Grounds
The facts showing that the ground for the
challenge has been expressly or impliedly
rejected by the challenged arbitrator/s
The facts showing that the Appointing Authority
failed or refused to act on the challenge
Before proceeding with this action, tanungin mo muna
yung arbitrator kung willing siyang magwithdraw. Kung
nagwithdraw, tapos ang usapan. Kung ayaw, bring the
matter first to the arbitral tribunal. If the arbitral tribunal
did not agree to the tribunal, go to your appointing
authority. If the latter fails to act within 30 days or you
are not satisfied with its ruling, go to the court.
RULE: Ask the arbitrator -> Arbitral Tribunal ->
Appointing Authority -> Court
NOTE: From the arbitrator to the appointing authority,
the arbitration proceeding shall not be suspended. ONLY
when it reaches the court shall the arbitration proceeding
be suspended.
*No MR/Appeal/Certiorari
Who may file? Any of the parties where:

An arbitrator becomes de jure or de facto unable
to perform his function or for other reasons fails
to act without undue delay AND
that arbitrator, upon request of any party, fails or
refuses to withdraw from his office.
Under the rule, you may go directly to the court after
such failure or refusal to withdraw or within 30 days the
request was sent to him. But Atty. Fernandez believes
that it should be referred to the arbitral tribunal first.
*Forum shopping prohibited

If
the
court
appoints,
not
subject
MR/appeal/certiorari
If the court refuses to appoint, subject
MR/appeal/certiorari
TERMINATION OF THE MANDATE OF THE

ARBITRATOR
Ground: If there is a need for court assistance in taking

evidence.
Sometimes, while the arbitral tribunal would want to
receive evidence, it simply cannot do so dahil minsan, the
witness is very far, etc. In such case, ineffectual yung
arbitration. What can you do? You may ask the court to
assist in the taking evidence.
What are requirements?
Evidence is relevant and material
Court has competence to receive that kind of
evidence
Types of assistance
Comply with a subpoena ad testificandum and/or
subpoena duces tecum
Appear as a witness before an officer for the taking
of his deposition upon oral examination or by
written interrogatories
Allow the physical examination of the condition of
persons, or the inspection of things or premises and,
when appropriate, to allow the recording and/or
documentation of condition of persons, things or
premises
To allow the examination and copying of documents;
and
To perform any similar acts.
Contents
There is an ongoing arbitration proceeding even if
such proceeding could not continue due to some
legal impediments
The arbitral tribunal ordered the taking of evidence
or the party desires to present evidence to the arbitral
tribunal
Materiality or relevance of the evidence to be taken
Fiat voluntas tua.
The names and addresses of the intended witness/es,

place where the evidence may be found, the place
where the premises to be inspected are located or the
place where the acts required are to be done
Apply the provisions of the ROC on the modes of

discovery suppletorily just like the interim measures of
protection, apply the provisions on the provisional
remedies.
CONFIDENTIALITY PROTECTION ORDER
This is the only relief where you can have two modes of
application
By way of a petition If there is no ongoing court
action or quasi-judicial proceeding where the
disclosure is sought to be made
By way of a motion if the disclosure is supposed to
be done in a pending case before the court
When is an information privileged? It is in relation to
its admissibility in court. If it is inadmissible or cannot be
the subject of any mode of discovery, it is privileged.
When is it confidential? You can simply refuse to
disclose the information as a matter of right. You cannot
be forced to disclose it as a matter of right. Everyone can
claim confidentiality but not everyone can claim that it is
privileged.
If a party submits only a portion of the document and
claims that the other parts are confidential, the other
party, if he demands, must be allowed to examine the
whole document. If the law says it is privileged, it cannot
be allowed.
CONFIRMATION, CORRECTION AND
VACATION OF AN AWARD IN DOMESTIC
ARBITRATION
Instituted by a petition filed directly with the Court.
The hearing here is not 1 day.
After the submission of the opposition or comment, the
court will determine if there is a factual issue or none. If
there is a factual issue, general rule is there must be a
hearing or may require the parties to submit affidavits.
Apply the judicial affidavit rule.
If there are no factual issues, depending on the necessity,
the court may require the parties to submit their
respective legal brief.
Award in Domestic Arbitration

Correction
Confirmation
Vacation
Award in International Commercial Arbitration
Recognition
Enforcement
Setting aside
NOTE: Correction is within the jurisdiction of the arbitral
tribunal
Award in Foreign Arbitration

Recognition
Enforcement
Confirmation
Simply an action to prove to the court that a valid
arbitration proceeding has been conducted and an award
has been rendered in such arbitration and asking the
court to declare that the award is valid and pursuant to
the arbitration agreement between the parties.
Vacation
Action to invalidate or set aside the award
Grounds to vacate
You can use these grounds to vacate the award or as a
defense to defeat the confirmation. If the other party files
a petition for confirmation, you can file a petition for
vacation in opposition to the confirmation. Same is true
with the reverse.
When to file? Within 30 days from the receipt of the
award
Correction
May be filed simultaneously as a part of your petition to
confirm or vacate. If solely a petition for correction, it
shall be treated as a petition to confirm if you are the
winning party or a petition to vacate if you are the losing
party in the award.
A party may request that instead of ruling on the petition
to confirm, correct or vacate, that the arbitral tribunal be
given a chance to rectify its ruling so that it will reopen
the proceedings and make the corresponding changes.
In a petition to confirm or vacate, the court will no
longer touch the merits of the award. It will only rule if
the ground to vacate is present or whether the
confirmation of the award is proper.
Fiat voluntas tua.
RECOGNITION, ENFORCEMENT AND

SETTING ASIDE OF AN AWARD IN AN
ARBITRATION
Grounds See discussion on ICA
No correction jurisdiction of the arbitral tribunal.
RECOGNITION AND ENFORCEMENT OF
FOREIGN ARBITRAL AWARD
Grounds: See discussion on ICA + The award has not
yet become binding on the parties or has been set aside
or suspended by a court of the country in which that
award was made
Why is there no remedy to vacate? Because in a
foreign arbitral award, the authority to decide did not
emanate from the Philippine jurisdiction but rather, from
a foreign jurisdiction. By way of international law, we
have no business reviewing the exercise of the judicial
authority in another jurisdiction. The only thing allowed
is just to recognize them if you want to. That is why there
is no setting aside or vacation of a foreign arbitral award.
DEPOSIT AND ENFORCEMENT OF A
MEDIATED SETTLEMENT AGREEMENT
This is the remedy in order to avoid repetitious demands
from the other party. In order to enforce the agreement
reached through mediation. You make a deposit.
Subject to the agreement of the parties, they may submit
jointly or one party may make the deposit.
MR/APPEAL/CERTIORARI
Assuming that the court has already intervened and you
are not satisfied with the ruling of the court, what is your
remedy? If applicable, MR/appeal/certiorari.
The subject matter of your MR/appeal/certiorari must
not be the merit of your award but the act of the court is
not proper under the law.
A party may ask the Regional Trial to reconsider its
ruling on the following:
The Clerk of Court must make a book on settlement

agreement. Parang Registry of Settlement Agreements.
The effect of this is if the party reneged on his duties,

you can file a petition to enforce his obligation under the
settlement agreement. The court can enforce your
contract. Hindi na niya pwede sabihin na ang mahal eh
blablablabla
OTHER FORMS OF ADR

If the proceeding is akin to arbitration, whatever is
applicable to arbitration, apply the rules on arbitration. If
mediation, rules on mediation.
However, in the Special Rules, it is stated that if there are
applicable rules in arbitration to mediation, it must be
applied. Examples are:
Protective orders
Deposits
Referral to mediation
That the arbitration agreement is inexistent, invalid

or unenforceable pursuant to Rule 3.10 (B)
Upholding or reversing the arbitral tribunals
jurisdiction pursuant to Rule 3.19;
Denying a request to refer the parties to arbitration;
Granting or denying a party an interim measure of
protection
Denying a petition for the appointment of an
arbitrator;
Refusing to grant assistance in taking evidence;
Enjoining or refusing to enjoin a person from
divulging confidential information;
Confirming, vacating or correcting a domestic
arbitral award;
Suspending the proceedings to set aside an
international commercial arbitral award and referring
the case back to the arbitral tribunal;
Setting aside an international commercial arbitral
award;
Dismissing the petition to set aside an international
commercial arbitral award, even if the court does not
recognize and/or enforce the same;
Recognizing and/or enforcing, or dismissing a
petition to recognize and/or enforce an international
commercial arbitral award;
Declining a request for assistance in taking evidence;
Adjourning or deferring a ruling on a petition to set
aside, recognize and/or enforce an international
commercial arbitral award;
Recognizing and/or enforcing a foreign arbitral
award, or refusing recognition and/or enforcement
of the same; and
Granting or dismissing a petition to enforce a
deposited mediated settlement agreement.
No motion for reconsideration shall be allowed from the

following rulings of the Regional Trial Court:
Fiat voluntas tua.
A prima facie determination upholding the existence,

validity or enforceability of an arbitration agreement
pursuant to Rule 3.1 (A);
An order referring the dispute to arbitration;
An order appointing an arbitrator;
Any ruling on the challenge to the appointment of an
arbitrator;
Any order resolving the issue of the termination of
the mandate of an arbitrator; and
An order granting assistance in taking evidence.
2nd motion for reconsideration is not allowed.

CERTIORARI
You can only use certiorari under Rule 65 if you go to
the CA from the RTC. Under Rule 43 is still available as
far as CIAC is concerned but as far as domestic
arbitration and ICA are concerned, wag niyo nang
gamitin yang Rule 43.
The final remedy that you could avail of is petition for
review before the Supreme Court. It is not certiorari but
an appeal.
Fiat voluntas tua.

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ALTERNATIVE DISPUTE RESOLUTION | 1

We are imperfect beings living in an imperfect

they try to use reason but nonetheless, the use of reason

Fiat voluntas tua.

ALTERNATIVE DISPUTE RESOLUTION | 2

What is a uniform law? It is where each state has its

The other UN Convention is all about what? The

Fiat voluntas tua.

What is the implication of this? It can be

ALTERNATIVE DISPUTE RESOLUTION | 3

Fiat voluntas tua.

ALTERNATIVE DISPUTE RESOLUTION | 4

Parang ikaw, may away kayong dalawa, kunwari sinong mas

Such that if it goes into a full-blown trial, they

But what is the task of the neutral evaluator? He shall

What is the net output of a successful conciliation?

Mini-Trial a structured dispute resolution method in

Arbitration a voluntary dispute resolution process in

This is the only method wherein the participation of a

Fiat voluntas tua.

ALTERNATIVE DISPUTE RESOLUTION | 5

1. EQUITABLE PCI BANK v. RCBC

confirmed the approval of RA 9285 by the President on

Fiat voluntas tua.

ALTERNATIVE DISPUTE RESOLUTION | 6

3. INSULAR SAVINGS BANK v. FEBTC

In this case, the arbitration was supposed to take place in

In this case, Insular Bank was still under the name of

It is valid to provide in the arbitration clause that the

In this case, the SC also came out with an observation

Fiat voluntas tua.

ALTERNATIVE DISPUTE RESOLUTION | 7

Their statement in these two cases is that, the arbitration

Fiat voluntas tua.

ALTERNATIVE DISPUTE RESOLUTION | 8

Section 4 of the ADR Act

Here, the SC held that ADR such as arbitration,

What laws shall govern alternative dispute

What laws shall govern arbitration?

1. International Commercial Arbitration

The provisions of the ADR Act on Arbitration

The provisions of the ADR Act

3. Construction Industry Arbitration

Its provisions are also applied in ADR meaning

Kunwari, yung arbitration clause, naka-attach lang sa isang page

What laws shall govern the other forms of ADR?

Fiat voluntas tua.

ALTERNATIVE DISPUTE RESOLUTION | 9

When: Before accepting a mediation

individual would consider likely to affect the

DUTIES RELATIVE TO CONSENT OR

Fiat voluntas tua.

ALTERNATIVE DISPUTE RESOLUTION | 10

But this specific provision (Section 14) talks of a lawyer

If the party is a minor, a ward who is legally incapacitated, or

As a mediator, you should know whether your client is

If one of the parties is a corporation or a partnership

Fiat voluntas tua.

ALTERNATIVE DISPUTE RESOLUTION | 11

The parties may determine the place of mediation.

If they simply agreed to the first one, then they will be

The mediator must consult the parties. If there is no

Why did I make such fine distinction? Because even if

ADR Act/IRR shall govern over institutional