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Arbitration Award

International Commercial Arbitration

Foreign Arbitration

UNCITRAL Model Law


vis a vis RA 9285 Sec 19 and Special ADR Rules
Is the state rendering the award a signatory of
New York Convention?

Yes
NO

A foreign arbitral award is rendered by an arbitrator or panel of arbitrators in a foreign country.


On the other hand, an international commercial arbitral award is rendered pursuant to an international c
State extends
comity and reciprocity
to awards in the
Philippines?

Yes

No

Rules of
Court
(Award will
be
considered as
a Foreign
Judgment)
New York Convention vis a
vis
Rule 13, Special ADR Rules

New York Convention vis a vis Rule 13, Special ADR Rules
Petition to RTC

Determination by the court on the sufficiency of petition

Service of copy of petition to the respondent (Personal, courier or registered mail)

Notice of initial hearing + Directive to file a verified opposition

Filing of a verified opposition (Not necessary; Failure to comply with such would not
constitute default)

Court determination

Question of Law

Question of Fact

30 days
Submission of a brief of legal arguments
witnesses

15-30 days
Order to submit affidavit of

Reply affidavit if requested


by the parties

Hearing

Decision of the RTC

Recognize and enforce

Refuse to recognize and

enforce
Motion for reconsideration within 15 days?
Yes

No

RTC decision becomes


final and executory
Grant

Deny

Appeal by petition for review within 15 days


before the CA?

Filing of Appeal bond

---------

Affirm

Yes

Reverse

No

RTC decision becomes final and


executory

Petition for review before SC?

Yes

No

RTC decision becomes final and


executory

Recognition and Enforcement

Refuse recognition and enforcement

Decision becomes final and executory

SPECIFIC DETAILS
ON NEW YORK CONVENTION VIS A VIS RULE 13, SPECIAL ADR RULES

I.

VENUE

Regional Trial Court:


(a) where the assets to be attached or levied upon is located
(b) where the act to be enjoined is being performed,
(c) in the principal place of business in the Philippines of any of the parties,
(d) if any of the parties is an individual, where any of the individual resides,
or
(e) in the National Capital Judicial Region
II.
1.
2.
3.

4.

CONTENTS AND DOCUMENTS ACCOMPANYING THE PETITION

Verified statement that the affiant has read the same and that the factual
allegations therein are true and correct of his own personal knowledge or
based on authentic records.
Certification Against Forum Shopping.
Board resolution or Secretarys Certificate as evidence of the authority of the
affiant to verify the petition and execute the Certificate Against Forum
Shopping for and on behalf of the party seeking to recognize and enforce the
arbitral award in the Philippines
Statement of the following:
(i)
Addresses of the parties to arbitration,
(ii)
Country where the arbitral award was made and whether such
country is a signatory to the New York Convention, and
(iii) the relief sought.

5.

Attachment of the following:


(i)
An authentic copy of the arbitration agreement; and
(ii)
An authentic copy of the arbitral award
III.

NOTICE

Under Rule 13.6 of the Special ADR Rules, upon receipt of the petition, the
court shall initially determine whether it is sufficient in form and in
substance. Once that has been made, the court shall cause the service of a
copy of the petition upon the respondent.
The service upon the respondent shall be made, under Rule 1.8 either by:
a. personal service or
b. courier.

IV.

Resort to registered mail is allowed only when courier services are


not available.

INITIAL HEARING

The notice of initial hearing contains a directive for the respondent to file an
opposition to the petition for recognition and enforcement of the foreign
arbitral award.

Respondents failure to submit an opposition shall not be cause


for a declaration of default

Once the respondent has filed its opposition, the court determines whether
the issue between the parties is one of law or fact.

V.

If the issue is mainly one of law, the court will require the
submission of a brief of legal arguments not more than thirty (30)
days from receipt of the order.
If there are issues of fact on grounds relied upon for the court to
refuse recognition and enforcement, the court shall, motu proprio,
or upon the request of party, require the parties to simultaneously
submit the affidavits of their respective witnesses within a
period of not less than fifteen (15) days nor more than thirty (30)
days from receipt of the order.
INTERIM OR CONSERVATORY MEASURES OF PROTECTION

The interim measures of protection that a court may grant during hearing
under Rule 5 of the Special ADR Rules include

a.
b.
c.
d.
e.
f.

preliminary injunction
preliminary attachment
appointment of a receiver
detention
preservation
delivery or inspection of property or assistance in the enforcement of
an interim measure of protection granted by the arbitral tribunal which
the latter cannot enforce effectively

VI.

GROUNDS FOR REFUSAL OF RECOGNITION AND


ENFORCEMENT

The Regional Trial Court shall refuse recognition and enforcement of the
foreign arbitral award only if the party making the application to refuse its
recognition and enforcement provides proof that:
1. A party to the arbitration agreement was under some incapacity or
that the said agreement is not valid under the law to which the parties
have subjected it or, failing any indication thereof, under the law of the
country where the award was made
2. The party making the application was not given proper notice of the
appointment of an arbitrator or of the arbitral proceedings or was
otherwise unable to present his case; or
3. The award deals with a dispute not contemplated by or not falling
within the terms of the submission to arbitration, or contains decisions
on matters beyond the scope of the submission to arbitration; provided
that, if the decision on matters submitted to arbitration can be
separated from those matters not so submitted, only that part of the
award which contains on matters not submitted to arbitration may be
set aside; or
4. The composition of the arbitral award or the arbitral procedure was not
in accordance with the agreement of the parties; or failing such
agreement, was not in accordance with the law of the country where
arbitration took place; or
5. 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.
6. The subject-matter of the dispute is not capable of settlement or
resolution by arbitration in the Philippines; or
7. The recognition or enforcement of the award would be contrary to
public policy.
VII.

EXECUTORY NATURE OF THE REGIONAL TRIAL COURTS


DECISION

Another feature that makes the proceeding for the recognition and
enforcement of the foreign arbitral award in the Philippines particularly
attractive is that the decision of the Regional Trial Court is immediately
executory (Rule 13.11 of the Special ADR Rules).
It ensures that the foreign arbitral award is not defeated or rendered
illusory during the pendency of the appeal, especially when the losing party
has taken measures to frustrate the enforcement of the foreign arbitral
award

UNCITRAL MODEL LAW VIS A VIS RULE 12 OF SPECIAL ADR RULES


Petition to the RTC

To Recognize

To Set Aside Recognition

Determination of sufficiency of the petition

Notice and Delivery of the Petition to the Respondent

Opposition by the Respondent

Reply of the Petitioner

Submission of Documents (if the Court finds it necessary)

Issues of Law

Issues of Facts

Submission of affidavits of witnesses

Submission of briefs of legal arguments


reply affidavits

Submission of

Oral Hearing (if the Court finds it necessary)

Judgment of the Court


SPECIFIC DETAILS OF
UNCITRAL MODEL LAW AND SPECIAL ADR RULES, RULE 12
I.

PETITION

Where to file?
Regional Trial Court
(a) where arbitration proceedings were conducted;
(b) where any of the assets to be attached or levied upon is located;
(c) where the act to be enjoined will be or is being performed;
(d) where any of the parties to arbitration resides or has its place of
business; or
(e) in the National Capital Judicial Region.
When to file?

Petition to Recognize: anytime from the receipt of the award


Petition to Set Aside Recognition: Within three (3) months from the
receipt of the award

Exclusive recourse against arbitral award


Recourse to a court against an arbitral award shall be made only
through a petition to set aside the arbitral award and on grounds
prescribed by the law that governs international commercial
arbitration.
Any other recourse from the arbitral award, such as by appeal or
petition for review or petition for certiorari or otherwise, shall be
dismissed by the court.
Contents of the Petition

Petition to Recognize and Enforce:

a. The addresses of record, or any change thereof, of the parties to


arbitration;
b. A statement that the arbitration agreement or submission exists;
c. The names of the arbitrators and proof of their appointment;
d. A statement that an arbitral award was issued and when the petitioner
received it; and
e. The relief sought.
Apart from other submissions, the petitioner shall attach to the petition the
following:
a. An authentic copy of the arbitration agreement;
b. An authentic copy of the arbitral award;
c. A verification and certification against forum shopping executed by the
applicant
d. An authentic copy or authentic copies of the appointment of an arbitral
tribunal.
Petition to Set Aside Recognition and Enforcement
a. Those contained in a petition to recognize
b. The grounds relied upon to set aside the recognition
If the ground of the petition is the petitioner is a minor or found
incompetent by a court, there shall be attached to the petition
certified copies of documents showing such fact.
In addition, the petitioner shall show that even if the submission
or arbitration agreement was entered into by a guardian or

guardian ad litem, the latter was not authorized by a competent


court to sign such the submission or arbitration agreement.
II.

NOTICE

Upon finding that the petition filed under this Rule is sufficient both in form
and in substance, the court shall cause notice and a copy of the petition to
be delivered to the respondent directing him to file an opposition
thereto within fifteen (15) days from receipt of the petition.

In lieu of an opposition, the respondent may file a petition to set aside


in opposition to a petition to recognize and enforce, or a petition to
recognize and enforce in opposition to a petition to set aside.

III.

SUBMISSION OF DOCUMENTS
If the issue is mainly one of law, the parties may be required to
submit briefs of legal arguments, not more than fifteen (15) days
from receipt of the order, sufficiently discussing the legal issues
and the legal basis for the relief prayed for by each of them.
If issues of fact, fact relating to the ground(s) relied upon for the
court to set aside, it shall require the parties within a period of
not more than fifteen (15) days from receipt of the order
simultaneously to submit the affidavits of all of their witnesses
and reply affidavits within ten (10) days from receipt of the
affidavits to be replied to

IV.

HEARING

If on the basis of the petition, the opposition, the affidavits and reply
affidavits of the parties, the court finds that there is a need to conduct an
oral hearing, the court shall set the case for hearing.
This case shall have preference over other cases before the court,
except criminal cases.
During the hearing, the affidavits of witnesses shall take the place of
their direct testimonies and they shall immediately be subject to crossexamination thereon.
The court shall have full control over the proceedings in order to
ensure that the case is heard without undue delay.
V.

SUSPENSION OF PROCEEDINGS TO SET ASIDE

The court when asked to set aside an arbitral award may suspend the
proceedings for a period of time determined by it to:

a. give the arbitral tribunal an opportunity to resume the arbitral


proceedings or
b. to take such other action as in the arbitral tribunals opinion will
eliminate the grounds for setting aside.
The court, in referring the case back to the arbitral tribunal may not
direct it to revise its award in a particular way, or to revise its
findings of fact or conclusions of law or otherwise encroach upon
the independence of an arbitral tribunal in the making of a final
award.

VI.

Presumption in favor of confirmation. - It is presumed that an


arbitral award was made and released in due course and is subject
to enforcement by the court, unless the adverse party is able to
establish a ground for setting aside or not enforcing an arbitral
award.
JUDGEMENT OF THE COURT

Unless a ground to set aside an arbitral award under Rule 12.4 above is fully
established, the court shall dismiss the petition. If, in the same proceedings,
there is a petition to recognize and enforce the arbitral award filed in
opposition to the petition to set aside, the court shall recognize and enforce
the award.
In resolving the petition or petition in opposition thereto in accordance with
the Special ADR Rules, the court shall either set aside or enforce the arbitral
award.
The court shall not disturb the arbitral tribunals determination of facts
and/or interpretation of law.

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