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No party shall select as an arbitrator any person to act as his champion or to advocate his cause.
If, after appointment but before or during hearing, a person appointed to serve as an arbitrator shall
discover any circumstances likely to create a presumption of bias, or which he believes might
disqualify him as an impartial arbitrator, the arbitrator shall immediately disclose such information to
the parties. Thereafter the parties may agree in writing:
(b) to declare the office of such arbitrator vacant. Any such vacancy shall be filled in the
same manner as the original appointment was made.
Section 9. Appointment of additional arbitrators. - Where a submission or contract provides that two
or more arbitrators therein designated or to be thereafter appointed by the parties, may select or
appoint a person as an additional arbitrator, the selection or appointment must be in writing. Such
additional arbitrator must sit with the original arbitrators upon the hearing.
2.
3. International Arbitration
SEC. 37. Appointment of Foreign Arbitrator. - The Construction Industry Arbitration Commission
(CIAC) shall promulgate rules to allow for the appointment of a foreign arbitrator or coarbitrator or
chairman of a tribunal a person who has not been previously accredited by CIAC: Provided, That:
(a) the dispute is a construction dispute in which one party is an international party
(b) the person to be appointed agreed to abide by the arbitration rules and policies of CIAC;
(c) he/she is either coarbitrator upon the nomination of the international party; or he/she is
the common choice of the two CIAC-accredited arbitrators first appointed one of whom was
nominated by the international party; and
(d) the foreign arbitrator shall be of different nationality from the international party.
Domestic Arbitration
Section 8. Appointment of arbitrators. - If, in the contract for arbitration or in the submission
described in section two, provision is made for a method of naming or appointing an arbitrator or
arbitrators, such method shall be followed; but if no method be provided therein the Court of First
Instance shall designate an arbitrator or arbitrators.
The Court of First Instance shall appoint an arbitrator or arbitrators, as the case may be, in the
following instances:
(a) If the parties to the contract or submission are unable to agree upon a single arbitrator; or
(b) If an arbitrator appointed by the parties is unwilling or unable to serve, and his successor
has not been appointed in the manner in which he was appointed; or
(c) If either party to the contract fails or refuses to name his arbitrator within fifteen days after
receipt of the demand for arbitration; or
(d) If the arbitrators appointed by each party to the contract, or appointed by one party to the
contract and by the proper Court, shall fail to agree upon or to select the third arbitrator.
(e) The court shall, in its discretion appoint one or three arbitrators, according to the
importance of the controversy involved in any of the preceding cases in which the agreement
is silent as to the number of arbitrators.
(f) Arbitrators appointed under this section shall either accept or decline their appointments
within seven days of the receipt of their appointments. In case of declination or the failure of
an arbitrator or arbitrators to duly accept their appointments the parties or the court, as the
case may be, shall proceed to appoint a substitute or substitutes for the arbitrator or
arbitrators who decline or failed to accept his or their appointments.
For ad hoc arbitration, Philippine law grants the parties the right to select an arbitrator or
arbitrators and to choose procedures to govern the proceedings, including rules of arbitration
institutions. So long as the main requirement for arbitration, namely consent, is present, the State
allows the parties to conduct the arbitration in any manner they 8 Republic Act No. 9285, Secs.
19-31. 9 Republic Act No. 9285, Sec. 42. 10 Republic Act No. 9285, Sec. 43. 5 stipulate,
provided that the arbitration process is not "contrary to law, morals, good customs, public order
or public policy."11 Institutionalized arbitration is conducted through organ
Article 10. Number of arbitrators (1) The parties are free to determine the number of arbitrators. (2)
Failing such determination, the number of arbitrators shall be three. Article 11. Appointment of
arbitrators (1) No person shall be precluded by reason of his nationality from acting as an arbitrator,
unless otherwise agreed by the parties. (2) The parties are free to agree on a procedure of appointing
the arbitrator or arbitrators, subject to the provisions of paragraphs (4) and (5) of this article. (3) Failing
such agreement, (a) in an arbitration with three arbitrators, each party shall appoint one arbitrator, and
the two arbitrators thus appointed shall appoint the third arbitrator; if a party fails to appoint the
arbitrator within thirty days of receipt of a request to do so from the other party, or if the two
arbitrators fail to agree on the third arbitrator within thirty days of their appointment, the appointment
shall be made, upon request of a party, by the court or other authority specifi ed in article 6; (b) in an
arbitration with a sole arbitrator, if the parties are unable to agree on the arbitrator, he shall be
appointed, upon request of a party, by the court or other authority specifi ed in article 6. (4) Where,
under an appointment procedure agreed upon by the parties, (a) a party fails to act as required under
such procedure, or (b) the parties, or two arbitrators, are unable to reach an agreement expected of
them under such procedure, or (c) a third party, including an institution, fails to perform any function
entrusted to it under such procedure, any party may request the court or other authority specifi ed in
article 6 to take the necessary measure, unless the agreement on the appointment procedure provides
other means for securing the appointment. (5) A decision on a matter entrusted by paragraph (3) or (4)
of this article to the court or other authority specifi ed in article 6 shall be subject to no Part One.
UNCITRAL Model Law on International Commercial Arbitration 7 appeal. The court or other authority, in
appointing an arbitrator, shall have due regard to any qualifi cations required of the arbitrator by the
agreement of the parties and to such considerations as are likely to secure the appointment of an
independent and impartial arbitrator and, in the case of a sole or third arbitrator, shall take into account
as well the advisability of appointing an arbitrator of a nationality other than those of the parties.
V. Institutional arbitration:
(i) Administrative fees are imposed ad valorem and depend on the claim amount. Fees for
services and use of facilities are high in disputes over large amounts;
(ii) Pre-established rules and procedures without any flexibility for conducting the proceedings
may contribute to parties dis-satisfaction;
(iii) Parties to the arbitration may be required to comply with procedural requirements in
unrealistic time frames.
In institutional arbitration, the first issue arising for agreement of the parties is choice of the
institution appropriate for the resolution of disputes arising under the contract. Whilst making
such choice, there are various factors to be considered i.e. nature & commercial value of the
dispute, rules of the institution (as these rules differ), past record and reputation of the institution
and also that the institutional rules are in tune with the latest developments in international
commercial arbitration practice.
The advantages of institutional arbitration outweigh those of ad hoc arbitrations. Some of the
advantages are:
(i) Administrative fees for services and use of facilities are often borne by the losing parties.
(iii) Maintains a panel of qualified arbitrators having expertise in different commercial sectors;
(v) Provides hearing room facilities and support services for arbitrations;
(vi) Extends assistance in encouraging reluctant parties to proceed with arbitration; and
(vii) Offers an established rules and procedure for conducting arbitration proceedings.