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D. Formal Requirements of SADR, Rule 2.2 (B).

SADR, Rule 2.2 (B). Where court intervention the travaux preparatories and the report of the
Arbitration Agreement is allowed under ADR Laws or the Special ADR Secretary General of the United Nations
Rules, courts shall not refuse to grant relief, as Commission on International Trade Law dated
RA 876, Sec. 4. Form of Arbitration provided herein, for any of the following March 25, 1985 entitled, "International
Agreement - A contract to arbitrate a reasons: Commercial Arbitration: Analytical
controversy thereafter arising between the Commentary on Draft Trade identified by
parties, as well as a submission to arbitrate an a. Prior to the constitution of the arbitral reference number A/CN. 9/264."
existing controversy shall be in writing and tribunal, the court finds that the
subscribed by the party sought to be charged, principal action is the subject of an R.A. 9285, Sec. 21. Commercial
or by his lawful agent. arbitration agreement; or Arbitration An arbitration is "commercial" if
The making of a contract or submission for b. The principal action is already pending it covers matters arising from all relationships
arbitration described in section two hereof, before an arbitral tribunal. of a commercial nature, whether contractual or
providing for arbitration of any controversy, not. Relationships of a transactions: any trade
shall be deemed a consent of the parties to the The Special ADR Rules recognize the principle transaction for the supply or exchange of
jurisdiction of the Court of First Instance of the of competence-competence, which means that goods or services; distribution agreements;
province or city where any of the parties the arbitral tribunal may initially rule on its own construction of works; commercial
resides, to enforce such contract or jurisdiction, including any objections with representation or agency; factoring; leasing,
submission. respect to the existence or validity of the consulting; engineering; licensing; investment;
arbitration agreement or any condition financing; banking; insurance; joint venture
Uncitral Model Law, Sec. 7(2). The precedent to the filing of a request for and other forms of industrial or business
arbitration agreement shall be in writing. An arbitration. cooperation; carriage of goods or passengers
agreement is in writing if it is contained in a by air, sea, rail or road.
document signed by the parties or in an The Special ADR Rules recognize the principle
exchange of letters, telex, telegrams or other of separability of the arbitration clause, which Uncitral Model Law, Art. 1 - Scope of
means of telecommunication which provide a means that said clause shall be treated as an application
record of the agreement, or in an exchange of agreement independent of the other terms of
statements of claim and defence in which the the contract of which it forms part. A decision (1) This Law applies to international
existence of an agreement is alleged by one that the contract is null and void shall not commercial** arbitration, subject to
party and not denied by another. The reference entail ipso jure the invalidity of the arbitration any agreement in force between this
in a contract to a document containing an clause. State and any other State or States.
arbitration clause constitutes an arbitration (2) The provisions of this Law, except
agreement provided that the contract is in F. International Commercial articles 8, 9, 35 and 36, apply only if
writing and the reference is such as to make Arbitration the place of arbitration is in the
that clause part of the contract. territory of this State.
R.A. 9285, Sec. 19. Adoption of the Model (3) An arbitration is international if:
E. Principle of competence- Law on International Commercial a. the parties to an arbitration
competence and doctrine of Arbitration - International commercial agreement have, at the time of
separability arbitration shall be governed by the Model Law the conclusion of that
on International Commercial Arbitration (the agreement, their places of
Uncitral Model Law, Sec. 16(1). The arbitral "Model Law") adopted by the United Nations business in different States; or
tribunal may rule on its own jurisdiction, Commission on International Trade Law on June b. one of the following places is
including any objections with respect to the 21, 1985 (United Nations Document A/40/17) situated outside the State in
existence or validity of the arbitration and recommended approved on December 11, which the parties have their
agreement. For that purpose, an arbitration 1985, copy of which is hereto attached as places of business:
clause which forms part of a contract shall be Appendix "A". i. the place of arbitration
treated as an agreement independent of the if determined in, or
other terms of the contract. A decision by the R.A. 9285, Sec. 20. Interpretation of pursuant to, the
arbitral tribunal that the contract is null and Model Law - In interpreting the Model Law, arbitration agreement;
void shall not entail ipso jure the invalidity of regard shall be had to its international origin ii. any place where a
the arbitration clause. and to the need for uniformity in its substantial part of the
interpretation and resort may be made to obligations of the
commercial set forth a specific time within which Uncitral Model Law, Art. 21.
relationship is to be the parties shall agree upon such Commencement of arbitral proceedings -
performed or the place arbitrator. If the contract between the Unless otherwise agreed by the parties, the
with which the subject- parties provides for the appointment of arbitral proceedings in respect of a particular
matter of the dispute is three arbitrators, one to be selected by dispute commence on the date on which a
most closely each party, the demand shall name the request for that dispute to be referred to
connected; or arbitrator appointed by the party arbitration is received by the respondent.
iii. the parties have making the demand; and shall require
expressly agreed that that the party upon whom the demand How do you commence arbitration? Ad
the subject-matter of is made shall within fifteen days after hoc v. institutional significance?
the arbitration receipt thereof advise in writing the
agreement relates to party making such demand of the Ra. 876, Sec. 14. Subpoena and subpoena
more than one country. name of the person appointed by the duces tecum - Arbitrators shall have the
(4) For the purposes of paragraph (3) of second party; such notice shall require power to require any person to attend a
this article: that the two arbitrators so appointed hearing as a witness. They shall have the
a. if a party has more than one must agree upon the third arbitrator power to subpoena witnesses and documents
place of business, the place of within ten days from the date of such when the relevancy of the testimony and the
business is that which has the notice. materiality thereof has been demonstrated to
closest relationship to the b. In the event that one party defaults in the arbitrators. Arbitrators may also require the
arbitration agreement; answering the demand, the aggrieved retirement of any witness during the testimony
b. if a party does not have a place party may file with the Clerk of the of any other witness. All of the arbitrators
of business, reference is to be Court of First Instance having appointed in any controversy must attend all
made to his habitual residence. jurisdiction over the parties, a copy of the hearings in that matter and hear all the
(5) This Law shall not affect any other law the demand for arbitration under the allegations and proofs of the parties; but an
of this State by virtue of which certain contract to arbitrate, with a notice that award by the majority of them is valid unless
disputes may not be submitted to the original demand was sent by the concurrence of all of them is expressly
arbitration or may be submitted to registered mail or delivered in person required in the submission or contract to
arbitration only according to provisions to the party against whom the claim is arbitrate. The arbitrator or arbitrators shall
other than those of this Law. asserted. Such demand shall set forth have the power at any time, before rendering
the nature of the controversy, the the award, without prejudice to the rights of
G. Commencement of Arbitration/ amount involved, if any, and the relief any party to petition the court to take
Constitution of Arbitral Tribunal sought, and shall be accompanied by a measures to safeguard and/or conserve any
true copy of the contract providing for matter which is the subject of the dispute in
RA 876, Sec. 5. Preliminary procedure - An arbitration. arbitration.
arbitration shall be instituted by: c. In the case of the submission of an
existing controversy by the filing with RA 9285, Sec. 28.Grant of Interim
a. In the case of a contract to arbitrate the Clerk of the Court of First Instance Measure of Protection. -
future controversies by the service by having jurisdiction, of the submission
either party upon the other of a agreement, setting forth the nature of a. It is not incompatible with an
demand for arbitration in accordance the controversy, and the amount arbitration agreement for a party to
with the contract. Such demand shall involved, if any. Such submission may request, before constitution of the
be set forth the nature of the be filed by any party and shall be duly tribunal, from a Court an interim
controversy, the amount involved, if executed by both parties. measure of protection and for the Court
any, and the relief sought, together d. In the event that one party neglects, to grant such measure. After
with a true copy of the contract fails or refuses to arbitrate under a constitution of the arbitral tribunal and
providing for arbitration. The demand submission agreement, the aggrieved during arbitral proceedings, a request
shall be served upon any party either party shall follow the procedure for an interim measure of protection or
in person or by registered mail. In the prescribed in subparagraphs (a) and (b) modification thereof, may be made
event that the contract between the of this section. with the arbitral tribunal or to the
parties provides for the appointment of extent that the arbitral tribunal has no
a single arbitrator, the demand shall be power to act or is unable to act
effectively, the request may be made g. A party who does not comply or to produce, or to provide
with the Court. The arbitral tribunal is with the order shall be liable for access to, any relevant
deemed constituted when the sole all damages resulting from documents, goods or other
arbitrator or the third arbitrator who noncompliance, including all property for his inspection.
has been nominated, has accepted the expenses, and reasonable 2. Unless otherwise agreed by the parties,
nomination and written communication attorney's fees, paid in if a party so requests or if the arbitral
of said nomination and acceptance has obtaining the order's judicial tribunal considers it necessary, the
been received by the party making enforcement. expert shall, after delivery of his
request. written or oral report, participate in a
b. The following rules on interim or R.A. 9285, Sec. 29. Further Authority for hearing where the parties have the
provisional relief shall be observed: Arbitrator to Grant Interim Measure of opportunity to put questions to him
a. Any party may request that Protection - Unless otherwise agreed by the and to present expert witnesses in
provision relief be granted parties, the arbitral tribunal may, at the order to testify on the points at issue.
against the adverse party: request of a party, order any party to take such H. Arbitrators
b. Such relief may be granted: interim measures of protection as the arbitral
i. to prevent irreparable tribunal may consider necessary in respect of SADR
loss or injury: the subject matter of the dispute following the
ii. to provide security for rules in Section 28, paragraph 2. Such interim RULE 6: APPOINTMENT OF ARBITRATORS
the performance of any measures may include but shall not be limited
obligation; to preliminary injuction directed against a Rule 6.1. When the court may act as
iii. to produce or preserve party, appointment of receivers or detention, Appointing Authority - The court shall act as
any evidence; or preservation, inspection of property that is the Appointing Authority only in the following
iv. to compel any other subject of the dispute in arbitration. Either instances:
appropriate act or party may apply with the Court for assistance
omission. in implementing or enforcing an interim a. Where any of the parties in an
measures ordered by an arbitral tribunal. institutional arbitration failed or
c. The order granting provisional refused to appoint an arbitrator or
relief may be conditioned upon Uncitral Model Law, Art. 17. Power of when the parties have failed to reach
the provision of security or any arbitral tribunal to order interim an agreement on the sole arbitrator (in
act or omission specified in the measures - Unless otherwise agreed by the an arbitration before a sole arbitrator)
order. parties, the arbitral tribunal may, at the or when the two designated arbitrators
d. Interim or provisional relief is request of a party, order any party to take such have failed to reach an agreement on
requested by written interim measure of protection as the arbitral the third or presiding arbitrator (in an
application transmitted by tribunal may consider necessary in respect of arbitration before a panel of three
reasonable means to the Court the subjectmatter of the dispute. The arbitral arbitrators), and the institution under
or arbitral tribunal as the case tribunal may require any party to provide whose rules arbitration is to be
may be and the party against appropriate security in connection with such conducted fails or is unable to perform
whom the relief is sought, measure. its duty as appointing authority within
describing in appropriate detail a reasonable time from receipt of the
the precise relief, the party Uncitral Model Law, Art. 26. Expert request for appointment;
against whom the relief is appointed by arbitral tribunal b. In all instances where arbitration is ad
requested, the grounds for the hoc and the parties failed to provide a
relief, and evidence supporting 1. Unless otherwise agreed by the parties, method for appointing or replacing an
the request. the arbitral tribunal arbitrator, or substitute arbitrator, or
e. The order shall be binding upon a. may appoint one or more the method agreed upon is ineffective,
the parties. experts to report to it on and the National President of the
f. Either party may apply with the specific issues to be Integrated Bar of the Philippines (IBP)
Court for assistance in determined by the arbitral or his duly authorized representative
Implementing or enforcing an tribunal; fails or refuses to act within such
interim measure ordered by an b. may require a party to give the period as may be allowed under the
arbitral tribunal. expert any relevant information pertinent rules of the IBP or within such
period as may be agreed upon by the c. The number of arbitrators agreed upon the selection and appointment of a sole
parties, or in the absence thereof, or the absence of any agreement as to arbitrator or to appoint a party-nominated
within thirty (30) days from receipt of the number of arbitrators; arbitrator, the petition filed under this rule shall
such request for appointment; d. The special qualifications that the be dismissed.
c. Where the parties agreed that their arbitrator/s must possess, if any, that
dispute shall be resolved by three were agreed upon by the parties; Rule 6.9. Relief against court action. - If the
arbitrators but no method of appointing e. The fact that the Appointing Authority, court appoints an arbitrator, the order
those arbitrators has been agreed without justifiable cause, has failed or appointing an arbitrator shall be immediately
upon, each party shall appoint one refused to act as such within the time executory and shall not be the subject of a
arbitrator and the two arbitrators thus prescribed or in the absence thereof, motion for reconsideration, appeal or certiorari.
appointed shall appoint a third within a reasonable time, from the date An order of the court denying the petition for
arbitrator. If a party fails to appoint his a request is made; and appointment of an arbitrator may, however, be
arbitrator within thirty (30) days of f. The petitioner is not the cause of the the subject of a motion for reconsideration,
receipt of a request to do so from the delay in, or failure of, the appointment appeal or certiorari.
other party, or if the two arbitrators fail of the arbitrator.
to agree on the third arbitrator within a RULE 7: CHALLENGE TO APPOINTMENT OF
reasonable time from their Apart from other submissions, the petitioner ARBITRATOR
appointment, the appointment shall be must attach to the petition (a) an authentic
made by the Appointing Authority. If copy of the arbitration agreement, and (b) Rule 7.1. Who may challenge. - Any of the
the latter fails or refuses to act or proof that the Appointing Authority has been parties to an arbitration may challenge an
appoint an arbitrator within a notified of the filing of the petition for arbitrator.
reasonable time from receipt of the appointment with the court.
request to do so, any party or the Rule 7.2. When challenge may be raised in
appointed arbitrator/s may request the Rule 6.5. Comment/Opposition - The court. - When an arbitrator is challenged before
court to appoint an arbitrator or the comment/opposition must be filed within the arbitral tribunal under the procedure
third arbitrator as the case may be. fifteen (15) days from service of the petition. agreed upon by the parties or under the
Rule 6.6. Submission of list of arbitrators - The procedure provided for in Article 13 (2) of the
Rule 6.2. Who may request for court may, at its option, also require each party Model Law and the challenge is not successful,
appointment - Any party to an arbitration to submit a list of not less than three (3) the aggrieved party may request the
may request the court to act as an Appointing proposed arbitrators together with their Appointing Authority to rule on the challenge,
Authority in the instances specified in Rule 6.1 curriculum vitae. and it is only when such Appointing Authority
above. fails or refuses to act on the challenge within
Rule 6.7. Court action - After hearing, if the such period as may be allowed under the
Rule 6.3. Venue - The petition for court finds merit in the petition, it shall appoint applicable rule or in the absence thereof,
appointment of arbitrator may be filed, at the an arbitrator; otherwise, it shall dismiss the within thirty (30) days from receipt of the
option of the petitioner, in the Regional Trial petition. request, that the aggrieved party may renew
Court (a) where the principal place of business In making the appointment, the court shall the challenge in court.
of any of the parties is located, (b) if any of the have regard to such considerations as are likely Rule 7.3. Venue. - The challenge shall be filed
parties are individuals, where those individuals to secure the appointment of an independent with the Regional Trial Court (a) where the
reside, or (c) in the National Capital Region. and impartial arbitrator. principal place of business of any of the parties
At any time after the petition is filed and before is located, (b) if any of the parties are
Rule 6.4. Contents of the petition. -The the court makes an appointment, it shall also individuals, where those individuals reside, or
petition shall state the following: dismiss the petition upon being informed that (c) in the National Capital Region.
the Appointing Authority has already made the
a. The general nature of the dispute; appointment. Rule 7.4. Grounds. - An arbitrator may be
b. If the parties agreed on an challenged on any of the grounds for challenge
appointment procedure, a description Rule 6.8. Forum shopping prohibited. - When provided for in Republic Act No. 9285 and its
of that procedure with reference to the there is a pending petition in another court to implementing rules, Republic Act No. 876 or
agreement where such may be found; declare the arbitration agreement inexistent, the Model Law. The nationality or professional
invalid, unenforceable, on account of which the qualification of an arbitrator is not a ground to
respondent failed or refused to participate in challenge an arbitrator unless the parties have
specified in their arbitration agreement a c. The challenged arbitrator fails or to replace the challenged arbitrator was filed.
nationality and/or professional qualification for refuses to submit his comment on the The court, in determining the amount of the
appointment as arbitrator. petition or the brief of legal arguments award to the challenged arbitrator, shall
as directed by the court, or in such receive evidence of expenses to be
Rule 7.5. Contents of the petition. - The comment or legal brief, he fails to reimbursed, which may consist of air tickets,
petition shall state the following: object to his removal following the hotel bills and expenses, and inland
a. The name/s of the arbitrator/s challenge. transportation. The court shall direct the
challenged and his/their address; The court shall decide the challenge on the challenging party to pay the amount of the
b. The grounds for the challenge; basis of evidence submitted by the parties. award to the court for the account of the
c. The facts showing that the ground for The court will decide the challenge on the basis challenged arbitrator, in default of which the
the challenge has been expressly or of the evidence submitted by the parties in the court may issue a writ of execution to enforce
impliedly rejected by the challenged following instances: the award.
arbitrator/s; and a. The other arbitrators in the arbitral
d. The facts showing that the Appointing tribunal agree to the removal of the RULE 8: TERMINATION OF THE MANDATE
Authority failed or refused to act on the challenged arbitrator; and OF ARBITRATOR
challenge. b. If the challenged arbitrator fails or
refuses to submit his comment on the Rule 8.1. Who may request termination and
The court shall dismiss the petition motu petition or the brief of legal arguments on what grounds.- Any of the parties to an
proprio unless it is clearly alleged therein that as directed by the court, or in such arbitration may request for the termination of
the Appointing Authority charged with deciding comment or brief of legal arguments, the mandate of an arbitrator where an
the challenge, after the resolution of the he fails to object to his removal arbitrator becomes de jure or de facto unable
arbitral tribunal rejecting the challenge is following the challenge. to perform his function or for other reasons
raised or contested before such Appointing fails to act without undue delay and that
Authority, failed or refused to act on the Rule 7.8. No motion for reconsideration, arbitrator, upon request of any party, fails or
challenge within thirty (30) days from receipt of appeal or certiorari. - Any order of the court refuses to withdraw from his office.
the request or within such longer period as resolving the petition shall be immediately
may apply or as may have been agreed upon executory and shall not be the subject of a Rule 8.2. When to request. - If an arbitrator
by the parties. motion for reconsideration, appeal, or refuses to withdraw from his office, and
certiorari. subsequently, the Appointing Authority fails or
Rule 7.6. Comment/Opposition. - The refuses to decide on the termination of the
challenged arbitrator or other parties may file a Rule 7.9. Reimbursement of expenses and mandate of that arbitrator within such period
comment or opposition within fifteen (15) days reasonable compensation to challenged as may be allowed under the applicable rule or,
from service of the petition. arbitrator. - Unless the bad faith of the in the absence thereof, within thirty (30) days
challenged arbitrator is established with from the time the request is brought before
Rule 7.7. Court action. - After hearing, the reasonable certainty by concealing or failing to him, any party may file with the court a
court shall remove the challenged arbitrator if disclose a ground for his disqualification, the petition to terminate the mandate of that
it finds merit in the petition; otherwise, it shall challenged arbitrator shall be entitled to arbitrator.
dismiss the petition. reimbursement of all reasonable expenses he
The court shall allow the challenged arbitrator may have incurred in attending to the Rule 8.3. Venue. - A petition to terminate the
who subsequently agrees to accept the arbitration and to a reasonable compensation mandate of an arbitrator may, at that
challenge to withdraw as arbitrator. for his work on the arbitration. Such expenses petitioners option, be filed with the Regional
The court shall accept the challenge and include, but shall not be limited to, Trial Court (a) where the principal place of
remove the arbitrator in the following cases: transportation and hotel expenses, if any. A business of any of the parties is located, (b)
a. The party or parties who named and reasonable compensation shall be paid to the where any of the parties who are individuals
appointed the challenged arbitrator challenged arbitrator on the basis of the length resides, or (c) in the National Capital Region.
agree to the challenge and withdraw of time he has devoted to the arbitration and
the appointment. taking into consideration his stature and Rule 8.4. Contents of the petition. - The
b. The other arbitrators in the arbitral reputation as an arbitrator. The request for petition shall state the following:
tribunal agree to the removal of the reimbursement of expenses and for payment of a. The name of the arbitrator whose
challenged arbitrator; and a reasonable compensation shall be filed in the mandate is sought to be terminated;
same case and in the court where the petition b. The ground/s for termination;
c. The fact that one or all of the parties therein the Court of First Instance shall arbitrator in any proceeding if he has or has
had requested the arbitrator to designate an arbitrator or arbitrators. had financial, fiduciary or other interest in the
withdraw but he failed or refused to do controversy or cause to be decided or in the
so; The Court of First Instance shall appoint an result of the proceeding, or has any personal
d. The fact that one or all of the parties arbitrator or arbitrators, as the case may be, in bias, which might prejudice the right of any
requested the Appointing Authority to the following instances: party to a fair and impartial award.
act on the request for the termination No party shall select as an arbitrator any
of the mandate of the arbitrator and a. If the parties to the contract or person to act as his champion or to advocate
failure or inability of the Appointing submission are unable to agree upon a his cause.
Authority to act within thirty (30) days single arbitrator; or If, after appointment but before or during
from the request of a party or parties b. If an arbitrator appointed by the parties hearing, a person appointed to serve as an
or within such period as may have is unwilling or unable to serve, and his arbitrator shall discover any circumstances
been agreed upon by the parties or successor has not been appointed in likely to create a presumption of bias, or which
allowed under the applicable rule. the manner in which he was appointed; he believes might disqualify him as an
The petitioner shall further allege that one or or impartial arbitrator, the arbitrator shall
all of the parties had requested the arbitrator c. If either party to the contract fails or immediately disclose such information to the
to withdraw but he failed or refused to do so. refuses to name his arbitrator within parties. Thereafter the parties may agree in
fifteen days after receipt of the writing:
Rule 8.5. Comment/Opposition. - The demand for arbitration; or
comment/opposition must be filed within d. If the arbitrators appointed by each a. to waive the presumptive disqualifying
fifteen (15) days from service of the petition. party to the contract, or appointed by circumstances; or
one party to the contract and by the b. to declare the office of such arbitrator
Rule 8.6. Court action. - After hearing, if the proper Court, shall fail to agree upon or vacant. Any such vacancy shall be
court finds merit in the petition, it shall to select the third arbitrator. filled in the same manner as the
terminate the mandate of the arbitrator who e. The court shall, in its discretion appoint original appointment was made.
refuses to withdraw from his office; otherwise, one or three arbitrators, according to
it shall dismiss the petition. the importance of the controversy Sec. 11. Challenge of arbitrators. - The
involved in any of the preceding cases arbitrators may be challenged only for the
Rule 8.7. No motion for reconsideration or in which the agreement is silent as to reasons mentioned in the preceding section
appeal. - Any order of the court resolving the the number of arbitrators. which may have arisen after the arbitration
petition shall be immediately executory and f. Arbitrators appointed under this agreement or were unknown at the time of
shall not be subject of a motion for section shall either accept or decline arbitration.
reconsideration, appeal or petition for their appointments within seven days The challenge shall be made before them.
certiorari. of the receipt of their appointments. In If they do not yield to the challenge, the
case of declination or the failure of an challenging party may renew the challenge
Rule 8.8. Appointment of substitute arbitrator. arbitrator or arbitrators to duly accept before the Court of First Instance of the
- Where the mandate of an arbitrator is their appointments the parties or the province or city in which the challenged
terminated, or he withdraws from office for any court, as the case may be, shall arbitrator, or, any of them, if there be more
other reason, or because of his mandate is proceed to appoint a substitute or than one, resides. While the challenging
revoked by agreement of the parties or is substitutes for the arbitrator or incident is discussed before the court, the
terminated for any other reason, a substitute arbitrators who decline or failed to hearing or arbitration shall be suspended, and
arbitrator shall be appointed according to the accept his or their appointments. it shall be continued immediately after the
rules that were applicable to the appointment court has delivered an order on the challenging
of the arbitrator being replaced. R.A. 876, Sec. 10. Qualifications of incident
arbitrators. - Any person appointed to serve as
RA. 876. Sec. 8. Appointment of arbitrators. - an arbitrator must be of legal age, in full- Sec. 13. Oath of arbitrators. - Before hearing
If, in the contract for arbitration or in the enjoyment of his civil rights and know how to any testimony, arbitrators must be sworn, by
submission described in section two, provision read and write. No person appointed to served any officer authorized by law to administer an
is made for a method of naming or appointing as an arbitrator shall be related by blood or oath, faithfully and fairly to hear and examine
an arbitrator or arbitrators, such method shall marriage within the sixth degree to either party the matters in controversy and to make a just
be followed; but if no method be provided to the controversy. No person shall serve as an award according to the best of their ability and
understanding. Arbitrators shall have the SEC. 26. Meaning of "Appointing tribunal shall determine a different or another
power to administer the oaths to all witnesses Authority.". - "Appointing Authority" as used language or languages to be used in the
requiring them to tell the whole truth and in the Model Law shall mean the person or proceedings. This agreement or determination,
nothing but the truth in any testimony which institution named in the arbitration agreement unless otherwise specified therein, shall apply
they may give in any arbitration hearing. This as the appointing authority; or the regular to any written statement by a party, any
oath shall be required of every witness before arbitration arbitration institution under whose hearing and any award, decision or other
any of his testimony is heard. rules the arbitration is agreed to be conducted. communication by the arbitral tribunal.
Where the parties have agreed to submit their The arbitral tribunal may order that any
Civil Code, Art. 2045. Any clause giving dispute to institutional arbitration rules, and documentary evidence shall be accompanied
one of the parties power to choose more unless they have agreed to a different by a translation into the language or languages
arbitrators than the other is void and of procedure, they shall be deemed to have agreed upon by the parties or determined in
no effect. (n) agreed to procedure under such arbitration accordance with paragraph 1 of this section.
I. Conduct of Arbitration rules for the selection and appointment of
Proceedings arbitrators. In ad hoc arbitration, the default UNCITRAL
RA 9285. appointment of an arbitrator shall be made by
the National President of the Integrated Bar of Article 16. Competence of arbitral
I. Conduct of Arbitration Proceedings the Philippines (IBP) or his duly authorized tribunal to rule on its jurisdiction
representative.
R.A. 9285 (1) The arbitral tribunal may rule on its
SEC. 27. What Functions May be own jurisdiction, including any
Sec. 22. Legal Representation in Performed by Appointing Authority. - The objections with respect to the existence
International Arbitration. - In international functions referred to in Articles 11(3), 11(4), or validity of the arbitration agreement.
arbitration conducted in the Philippines, a party 13(3) and 14(1) of the Model Law shall be For that purpose, an arbitration clause
may be presented by any person of his performed by the Appointing Authority, unless which forms part of a contract shall be
choice. Provided, that such representative, the latter shall fail or refuse to act within thirty treated as an agreement independent
unless admitted to the practice of law in the (30) days from receipt of the request in which of the other terms of the contract. A
Philippines, shall not be authorized to appear case the applicant may renew the application decision by the arbitral tribunal that
as counsel in any Philippine court, or any other with the Court. the contract is null and void shall not
quasi-judicial body whether or not such entail ipso jure the invalidity of the
appearance is in relation to the arbitration in SEC. 30. Place of Arbitration. - The parties arbitration clause.
which he appears. are free to agree on the place of arbitration. (2) A plea that the arbitral tribunal does
Failing such agreement, the place of arbitration not have jurisdiction shall be raised not
SEC. 23. Confidential of Arbitration shall be in Metro Manila, unless the arbitral later than the submission of the
Proceedings. - The arbitration proceedings, tribunal, having regard to the circumstances of statement of defence. A party is not
including the records, evidence and the arbitral the case, including the convenience of the precluded from raising such a plea by
award, shall be considered confidential and parties shall decide on a different place of the fact that he has appointed, or
shall not be published except (1) with the arbitration. participated in the appointment of, an
consent of the parties, or (2) for the limited The arbitral tribunal may, unless otherwise arbitrator. A plea that the arbitral
purpose of disclosing to the court of relevant agreed by the parties, meet at any place it tribunal is exceeding the scope of its
documents in cases where resort to the court is considers appropriate for consultation among authority shall be raised as soon as the
allowed herein. Provided, however, that the its members, for hearing witnesses, experts, or matter alleged to be beyond the scope
court in which the action or the appeal is the parties, or for inspection of goods, other of its authority is raised during the
pending may issue a protective order to property or documents. arbitral proceedings. The arbitral
prevent or prohibit disclosure of documents or tribunal may, in either case, admit a
information containing secret processes, SEC. 31. Language of the Arbitration. - The later plea if it considers the delay
developments, research and other information parties are free to agree on the language or justified.
where it is shown that the applicant shall be languages to be used in the arbitral (3) The arbitral tribunal may rule on a plea
materially prejudiced by an authorized proceedings. Failing such agreement, the referred to in paragraph (2) of this
disclosure thereof. language to be used shall be English in article either as a preliminary question
international arbitration, and English or Filipino or in an award on the merits. If the
for domestic arbitration, unless the arbitral arbitral tribunal rules as a preliminary
question that it has jurisdiction, any parties, or for inspection of goods, (3) All statements, documents or other
party may request, within thirty days other property or documents. information supplied to the arbitral
after having received notice of that tribunal by one party shall be
ruling, the court specified in article 6 to Article 23. Statements of claim and communicated to the other party. Also
decide the matter, which decision shall defence any expert report or evidentiary
be subject to no appeal; while such a document on which the arbitral tribunal
request is pending, the arbitral tribunal (1) Within the period of time agreed by the may rely in making its decision shall be
may continue the arbitral proceedings parties or determined by the arbitral communicated to the parties.
and make an award. tribunal, the claimant shall state the
facts supporting his claim, the points at Article 25. Default of a party
Art. 18. Equal treatment of parties issue and the relief or remedy sought,
and the respondent shall state his Unless otherwise agreed by the parties, if,
The parties shall be treated with equality and defence in respect of these particulars, without showing sufficient cause,
each party shall be given a full opportunity of unless the parties have otherwise
presenting his case. agreed as to the required elements of (a) the claimant fails to communicate his
such statements. The parties may statement of claim in accordance with
Article 19. Determination of rules of submit with their statements all article 23(1), the arbitral tribunal shall
procedure documents they consider to be terminate the proceedings;
relevant or may add a reference to the (b) the respondent fails to communicate
(1) Subject to the provisions of this Law, documents or other evidence they will his statement of defence in accordance
the parties are free to agree on the submit. with article 23( 1), the arbitral tribunal
procedure to be followed by the arbitral (2) Unless otherwise agreed by the parties, shall continue the proceedings without
tribunal in conducting the proceedings. either party may amend or supplement treating such failure in itself as an
(2) Failing such agreement, the arbitral his claim or defence during the course admission of the claimant's allegations;
of the arbitral proceedings, unless the (c) any party fails to appear at a hearing
tribunal may, subject to the provisions
arbitral tribunal considers it or to produce documentary evidence,
of this Law, conduct the arbitration in
inappropriate to allow such the arbitral tribunal may continue the
such manner as it considers
amendment having regard to the delay proceedings and make the award on
appropriate. The power conferred upon
in making it. the evidence before it.
the arbitral tribunal includes the power
to determine the admissibility,
Article 24. Hearings and written Article 26. Expert appointed by arbitral
relevance, materiality and weight of
proceedings tribunal
any evidence.
(1) Subject to any contrary agreement by 1. Unless otherwise agreed by the parties,
Article 20. Place of arbitration
the parties, the arbitral tribunal shall the arbitral tribunal
decide whether to hold oral hearings a. may appoint one or more
(1) The parties are free to agree on the
for the presentation of evidence or for experts to report to it on
place of arbitration. Failing such
oral argument, or whether the specific issues to be
agreement, the place of arbitration
proceedings shall be conducted on the determined by the arbitral
shall be determined by the arbitral
basis of documents and other tribunal;
tribunal having regard to the
materials. However, unless the parties b. may require a party to give the
circumstances of the case, including
have agreed that no hearings shall be expert any relevant information
the convenience of the parties.
held, the arbitral tribunal shall hold or to produce, or to provide
(2) Notwithstanding the provisions of
such hearings at an appropriate stage access to, any relevant
paragraph/ (1) of this article, the
of the proceedings, if so requested by a documents, goods or other
arbitral tribunal may, unless otherwise
party. property for his inspection.
agreed by the parties, meet at any
(2) The parties shall be given sufficient 2. Unless otherwise agreed by the parties,
place it considers appropriate for
advance notice of any hearing and of if a party so requests or if the arbitral
consultation among its members, for
any meeting of the arbitral tribunal for tribunal considers it necessary, the
hearing witnesses, experts or the
the purposes of inspection of goods, expert shall, after delivery of his
other property or documents. written or oral report, participate in a
hearing where the parties have the No one other than a party to said arbitration, or arbitrate. The arbitrator or arbitrators shall
opportunity to put questions to him a person in the regular employ of such party have the power at any time, before rendering
and to present expert witnesses in duly authorized in writing by said party, or a the award, without prejudice to the rights of
order to testify on the points at issue. practicing attorney-at-law, shall be permitted any party to petition the court to take
by the arbitrators to represent before him or measures to safeguard and/or conserve any
Article 27. Court assistance in taking them any party to the arbitration. Any party matter which is the subject of the dispute in
evidence desiring to be represented by counsel shall arbitration.
notify the other party or parties of such
The arbitral tribunal or a party with the intention at least five days prior to the hearing. Section 15. Hearing by arbitrators. -
approval of the arbitral tribunal may request The arbitrators shall arrange for the taking of a Arbitrators may, at the commencement of the
from a competent court of this State assistance stenographic record of the testimony when hearing, ask both parties for brief statements
in taking evidence. The court may execute the such a record is requested by one or more of the issues in controversy and/or an agreed
request within its competence and according to parties, and when payment of the cost thereof statement of facts. Thereafter the parties may
its rules on taking evidence is assumed by such party or parties. offer such evidence as they desire, and shall
Persons having a direct interest in the produce such additional evidence as the
RA 876 controversy which is the subject of arbitration arbitrators shall require or deem necessary to
shall have the right to attend any hearing; but an understanding and determination of the
Section 12. Procedure by arbitrators. - Subject the attendance of any other person shall be at dispute. The arbitrators shall be the sole judge
to the terms of the submission or contract, if the discretion of the arbitrators. of the relevancy and materiality of the
any are specified therein, are arbitrators evidence offered or produced, and shall not be
selected as prescribed herein must, within five Section 13. Oath of arbitrators. - Before bound to conform to the Rules of Court
days after appointment if the parties to the hearing any testimony, arbitrators must be pertaining to evidence. Arbitrators shall receive
controversy reside within the same city or sworn, by any officer authorized by law to as exhibits in evidence any document which
province, or within fifteen days after administer an oath, faithfully and fairly to hear the parties may wish to submit and the exhibits
appointment if the parties reside in different and examine the matters in controversy and to shall be properly identified at the time of
provinces, set a time and place for the hearing make a just award according to the best of submission. All exhibits shall remain in the
of the matters submitted to them, and must their ability and understanding. Arbitrators custody of the Clerk of Court during the course
cause notice thereof to be given to each of the shall have the power to administer the oaths to of the arbitration and shall be returned to the
parties. The hearing can be postponed or all witnesses requiring them to tell the whole parties at the time the award is made. The
adjourned by the arbitrators only by agreement truth and nothing but the truth in any arbitrators may make an ocular inspection of
of the parties; otherwise, adjournment may be testimony which they may give in any any matter or premises which are in dispute,
ordered by the arbitrators upon their own arbitration hearing. This oath shall be required but such inspection shall be made only in the
motion only at the hearing and for good and of every witness before any of his testimony is presence of all parties to the arbitration, unless
sufficient cause. No adjournment shall extend heard. any party who shall have received notice
the hearing beyond the day fixed in the thereof fails to appear, in which event such
submission or contract for rendering the award, Section 14. Subpoena and subpoena duces inspection shall be made in the absence of
unless the time so fixed is extended by the tecum. - Arbitrators shall have the power to such party.
written agreement of the parties to the require any person to attend a hearing as a
submission or contract or their attorneys, or witness. They shall have the power to Section 16. Briefs. - At the close of the
unless the parties have continued with the subpoena witnesses and documents when the hearings, the arbitrators shall specifically
arbitration without objection to such relevancy of the testimony and the materiality inquire of all parties whether they have any
adjournment. thereof has been demonstrated to the further proof or witnesses to present; upon the
The hearing may proceed in the absence of any arbitrators. Arbitrators may also require the receipt of a negative reply from all parties, the
party who, after due notice, fails to be present retirement of any witness during the testimony arbitrators shall declare the hearing closed
at such hearing or fails to obtain an of any other witness. All of the arbitrators unless the parties have signified an intention to
adjournment thereof. An award shall not be appointed in any controversy must attend all file briefs. Then the hearing shall be closed by
made solely on the default of a party. The the hearings in that matter and hear all the the arbitrations after the receipt of briefs
arbitrators shall require the other party to allegations and proofs of the parties; but an and/or reply briefs. Definite time limit for the
submit such evidence as they may require for award by the majority of them is valid unless filing of such briefs must be fixed by the
making an award. the concurrence of all of them is expressly arbitrators at the close of the hearing. Briefs
required in the submission or contract to may filed by the parties within fifteen days
after the close of the oral hearings; the reply SADR d. To allow the examination and copying
briefs, if any, shall be filed within five days of documents; and
following such fifteen-day period. RULE 9: ASSISTANCE IN TAKING EVIDENCE e. To perform any similar acts.
Rule 9.1. Who may request assistance. - Any
Section 17. Reopening of hearing. - The party to an arbitration, whether domestic or Rule 9.6. Contents of the petition. - The
hearing may be reopened by the arbitrators on foreign, may request the court to provide petition must state the following:
their own motion or upon the request of any assistance in taking evidence.
party, upon good cause, shown at any time a. The fact that there is an ongoing
before the award is rendered. When hearings Rule 9.2. When assistance may be sought. - arbitration proceeding even if such
are thus reopened the effective date for the Assistance may be sought at any time during proceeding could not continue due to
closing of the hearings shall be the date of the the course of the arbitral proceedings when the some legal impediments;
closing of the reopened hearing. need arises. b. The arbitral tribunal ordered the taking
of evidence or the party desires to
Section 18. Proceeding in lieu of hearing. - Rule 9.3. Venue. - A petition for assistance in present evidence to the arbitral
The parties to a submission or contract to taking evidence may, at the option of the tribunal;
arbitrate may, by written agreement, submit petitioner, be filed with Regional Trial Court c. Materiality or relevance of the evidence
their dispute to arbitration by other than oral where (a) arbitration proceedings are taking to be taken; and
hearing. The parties may submit an agreed place, (b) the witnesses reside or may be d. The names and addresses of the
statement of facts. They may also submit their found, or (c) where the evidence may be found. intended witness/es, place where the
respective contentions to the duly appointed evidence may be found, the place
arbitrators in writing; this shall include a Rule 9.4. Ground. - The court may grant or where the premises to be inspected are
statement of facts, together with all execute the request for assistance in taking located or the place where the acts
documentary proof. Parties may also submit a evidence within its competence and according required are to be done.
written argument. Each party shall provide all to the rules of evidence.
other parties to the dispute with a copy of all Rule 9.7. Comment/Opposition. - The
statements and documents submitted to the Rule 9.5. Type of assistance. - A party comment/opposition must be filed within
arbitrators. Each party shall have an requiring assistance in the taking of evidence fifteen (15) days from service of the petition.
opportunity to reply in writing to any other may petition the court to direct any person,
party's statements and proofs; but if such party including a representative of a corporation, Rule 9.8. Court action. - If the evidence sought
fails to do so within seven days after receipt of association, partnership or other entity (other is not privileged, and is material and relevant,
such statements and proofs, he shall be than a party to the ADR proceedings or its the court shall grant the assistance in taking
deemed to have waived his right to reply. Upon officers) found in the Philippines, for any of the evidence requested and shall order petitioner
the delivery to the arbitrators of all statements following: to pay costs attendant to such assistance.
and documents, together with any reply
statements, the arbitrators shall declare the a. To comply with a subpoena ad Rule 9.9. Relief against court action. - The
proceedings in lieu of hearing closed. testificandum and/or subpoena duces order granting assistance in taking evidence
tecum; shall be immediately executory and not subject
Section 22. Arbitration deemed a special b. To appear as a witness before an officer to reconsideration or appeal. If the court
proceeding. - Arbitration under a contract or for the taking of his deposition upon declines to grant assistance in taking evidence,
submission shall be deemed a special oral examination or by written the petitioner may file a motion for
proceeding, of which the court specified in the interrogatories; reconsideration or appeal.
contract or submission, or if none be specified, c. To allow the physical examination of
the Court of First Instance for the province or the condition of persons, or the Rule 9.10. Perpetuation of testimony before
city in which one of the parties resides or is inspection of things or premises and, the arbitral tribunal is constituted. - At anytime
doing business, or in which the arbitration was when appropriate, to allow the before arbitration is commenced or before the
held, shall have jurisdiction. Any application to recording and/or documentation of arbitral tribunal is constituted, any person who
the court, or a judge thereof, hereunder shall condition of persons, things or desires to perpetuate his testimony or that of
be made in manner provided for the making premises (i.e., photographs, video and another person may do so in accordance with
and hearing of motions, except as otherwise other means of Rule 24 of the Rules of Court.
herein expressly provided. recording/documentation);
Rule 9.11. Consequence of disobedience. - a. That the information sought to be a. Information obtained through
The court may impose the appropriate sanction protected was obtained, or would be mediation shall be privileged and
on any person who disobeys its order to testify obtained, during an ADR proceeding; confidential.
when required or perform any act required of b. The applicant would be materially b. A party, a mediator, or a nonparty
him. prejudiced by the disclosure of that participant may refuse to disclose and
information; may prevent any other person from
RULE 10: CONFIDENTIALITY/PROTECTIVE c. The person or persons who are being disclosing a mediation communication.
ORDERS asked to divulge the confidential c. In such an adversarial proceeding, the
information participated in an ADR following persons involved or
Rule 10.1. Who may request confidentiality. - proceedings; and previously involved in a mediation may
A party, counsel or witness who disclosed or d. The time, date and place when the ADR not be compelled to disclose
who was compelled to disclose information proceedings took place. confidential information obtained
relative to the subject of ADR under Apart from the other submissions, the movant during the mediation: (1) the parties to
circumstances that would create a reasonable must set the motion for hearing and contain a the dispute; (2) the mediator or
expectation, on behalf of the source, that the notice of hearing in accordance with Rule 15 of mediators; (3) the counsel for the
information shall be kept confidential has the the Rules of Court. parties: (4) the nonparty participants;
right to prevent such information from being (5) any persons hired or engaged in
further disclosed without the express written Rule 10.6. Notice. - Notice of a request for a connection with the mediation as
consent of the source or the party who made protective order made through a motion shall secretary, stenographer; clerk or
the disclosure. be made to the opposing parties in accordance assistant; and (6) any other person
with Rule 15 of the Rules of Court. who obtains or possesses confidential
Rule 10.2. When request made. - A party may information by reason of his/ her
request a protective order at anytime there is a Rule 10.7. Comment/Opposition. - The profession.
need to enforce the confidentiality of the comment/opposition must be filed within d. The protection of the ADR Laws shall
information obtained, or to be obtained, in ADR fifteen (15) days from service of the petition. continue to apply even if a mediator is
proceedings. The opposition or comment may be found to have failed to act impartially.
accompanied by written proof that (a) the e. A mediator may not be called to testify
Rule 10.3. Venue. - A petition for a protective information is not confidential, (b) the to provide information gathered in
order may be filed with the Regional Trial Court information was not obtained during an ADR mediation. A mediator who is
where that order would be implemented. proceeding, (c) there was a waiver of wrongfully subpoenaed shall be
If there is a pending court proceeding in which confidentiality, or (d) the petitioner/movant is reimbursed the full cost of his attorney
the information obtained in an ADR proceeding precluded from asserting confidentiality. fees and related expenses.
is required to be divulged or is being divulged,
the party seeking to enforce the confidentiality Rule 10.8. Court action. - If the court finds the Rule 10.9. Relief against court action. - The
of the information may file a motion with the petition or motion meritorious, it shall issue an order enjoining a person or persons from
court where the proceedings are pending to order enjoining a person or persons from divulging confidential information shall be
enjoin the confidential information from being divulging confidential information. immediately executory and may not be
divulged or to suppress confidential In resolving the petition or motion, the courts enjoined while the order is being questioned
information. shall be guided by the following principles with the appellate courts.
applicable to all ADR proceedings: Confidential If the court declines to enjoin a person or
Rule 10.4. Grounds. - A protective order may information shall not be subject to discovery persons from divulging confidential
be granted only if it is shown that the applicant and shall be inadmissible in any adversarial information, the petitioner may file a motion
would be materially prejudiced by an proceeding, whether judicial or quasi judicial. for reconsideration or appeal.
unauthorized disclosure of the information However, evidence or information that is
obtained, or to be obtained, during an ADR otherwise admissible or subject to discovery Rule 10.10. Consequence of disobedience. -
proceeding. does not become inadmissible or protected Any person who disobeys the order of the court
from discovery solely by reason of its use to cease from divulging confidential
Rule 10.5. Contents of the motion or petition. therein. information shall be imposed the proper
- The petition or motion must state the For mediation proceedings, the court shall be sanction by the court.
following: further guided by the following principles:
Rule on Confidentiality Exceptions
RA 9285, Sec. 23. SEC. 23. Confidential of
Arbitration Proceedings. - The arbitration
proceedings, including the records, evidence
and the arbitral award, shall be considered
confidential and shall not be published except
(1) with the consent of the parties, or (2) for
the limited purpose of disclosing to the court of
relevant documents in cases where resort to
the court is allowed herein. Provided, however,
that the court in which the action or the appeal
is pending may issue a protective order to
prevent or prohibit disclosure of documents or
information containing secret processes,
developments, research and other information
where it is shown that the applicant shall be
materially prejudiced by an authorized
disclosure thereof.

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