Kinds of Arbitration

Kinds of Arbitration
VOLUNTARY ARBITRATION COMPULSORY ARBITRATION

Involves the reference of a Process of settlement of

dispute to an impartial body, the [labor] disputes by a
members of which are chosen by government agency which has
the parties themselves, which the authority to investigate and
parties freely consent in advance to make an award which is
to abide by the arbitral award binding on all parties, and as a
issued after the proceedings mode of arbitration where the
where both parties had the parties are compelled to accept
opportunity to be heard the resolution of their dispute
through arbitration by a third
party.
 Kinds of Arbitration
DOMESTIC FOREIGN

If the seat is within the If the seat is outside the

Philippines. Philippines, even if the place of
arbitration is in the Philippines.
 Kinds of Arbitration
DOMESTIC INTERNATIONAL

The arbitration is not international The arbitration is international in

in character:
If components of parties places 1) The parties places of business,
of business, place of arbitration,
place of a substantial part of the
obligation, and place where the
subject matter of the dispute is
closely connected, are all located
in the Philippines.
character:
which at the time of the
conclusion of the arbitration
agreement, is in different states;
2) The place of arbitration
provided in the arbitration
agreement and in which the
parties have their places of
business, is outside the
Philippines;
 Kinds of Arbitration
DOMESTIC INTERNATIONAL
3) The places of business where a
substantial part of the obligation
is to be performed or the place
with which the subject matter of
the dispute is most closely
connected, and in which the
parties have their places of
business, is outside the
Philippines;
4) The parties have expressly
agreed that the subject matter of
the arbitration agreement relates
to more than one country.
 Kinds of Arbitration
DOMESTIC COMMERCIAL INTERNATIONAL COMMERCIAL

Governed by the Arbitration Governed by the ADR Act and

Law (RA No. 876), the Model IRR
Law, and specific provisions of
the ADR Act
 Kinds of Arbitration
DOMESTIC COMMERCIAL INTERNATIONAL COMMERCIAL

Is at the same time commercial if

it covers matters arising from all
relationships of a commercial
nature, whether contractual or
not, in which case the arbitration
is called International Commercial
Arbitration (ICA)
Policy on Arbitration
 Korea Technologies v. Lerma
Being an inexpensive, speedy and amicable method
of settling disputes, arbitration along with mediation,
conciliation and negotiation is encouraged by the Supreme
Court. Aside from unclogging judicial dockets, arbitration
also hastens the resolution of disputes, especially of the
commercial kind. It is thus regarded as the wave of the
future in international civil and commercial
disputes. Brushing aside a contractual agreement calling
for arbitration between the parties would be a step
backward.
 Korea Technologies v. Lerma
Consistent with the above-mentioned policy of
encouraging alternative dispute resolution methods,
courts should liberally construe arbitration clauses.
Provided such clause is susceptible of an interpretation
that covers the asserted dispute, an order to arbitrate
should be granted. Any doubt should be resolved in favor
of arbitration.