Republic Act No.

9285 Commercial Arbitration

SEC. 2. Declaration of Policy. An arbitration is "commercial if it covers
matter arising from all relationships of a commercial
What is the declared policy of the State to actively nature, whether contractual or not;
promote?
Confidential information
Party autonomy in the resolution of disputes
or the freedom of the party to make their own any information, relative to the subject of
arrangements to resolve their disputes. mediation or arbitration, expressly intended by the
source not to be disclosed, or obtained under
What shall the State encourage and actively circumstances that would create a reasonable
promote? expectation on behalf of the source that the
The use of Alternative Dispute Resolution information shall not be disclosed.
(ADR) as an important means to achieve speedy Includes:
and impartial justice and declog court dockets.
(1) communication, oral or written, made in a
Who shall the state enlist? dispute resolution proceedings, including
active private sector participation in the any memoranda, notes or work product of
settlement of disputes through ADR. the neutral party or non-party participant, as
defined in this Act;
(2) an oral or written statement made or
This Act shall be without prejudice to the adoption by which occurs during mediation or for
the Supreme Court of any ADR system, such as purposes of considering, conducting,
mediation, conciliation, arbitration, or any participating, initiating, continuing of
combination thereof as a means of achieving speedy reconvening mediation or retaining a
and efficient means of resolving cases pending mediator; and
before all courts in the Philippines which shall be
governed by such rules as the Supreme Court may (3) pleadings, motions manifestations,
approve from time to time. witness statements, reports filed or
submitted in an arbitration or for expert
evaluation;
SEC. 3. Definition of Terms. Court-Referred Mediation
Alternative Dispute Resolution System mediation ordered by a court to be conducted
in accordance with the Agreement of the Parties
Any process or procedure used to resolve a
when as action is prematurely commenced in
dispute or controversy, other than by adjudication of
violation of such agreement;
a presiding judge of a court or an officer of a
government agency, as defined in this Act, in which International Party
a neutral third party participates to assist in the
resolution of issues, which includes arbitration, an entity whose place of business is outside
mediation, conciliation, early neutral evaluation, the Philippines. It shall not include a domestic
mini-trial, or any combination subsidiary of such international party or a coventurer
in a joint venture with a party which has its place of
ADR Provider business in the Philippines.
institutions or persons accredited as Mediation
mediator, conciliator, arbitrator, neutral evaluator, or
any person exercising similar functions in any a voluntary process in which a mediator,
Alternative Dispute Resolution system. selected by the disputing parties, facilitates
communication and negotiation, and assist the
shall refer to individuals acting as mediator, parties in reaching a voluntary agreement regarding
conciliator, arbitrator or neutral evaluator; a dispute.
Arbitration SEC. 5. Liability of ADR Provider and
Practitioner.
a voluntary dispute resolution process in
which one or more arbitrators, appointed in The ADR providers and practitioners shall have the
accordance with the agreement of the parties, or same civil liability for the Acts done in the
rules promulgated pursuant to this Act, resolve a performance of then duties as that of public officers
dispute by rendering an award; as provided in Section 38 (1), Chapter 9, Book of the
Administrative Code of 1987.
Arbitrator
the person appointed to render an award,
alone or with others, in a dispute that is the subject
of an arbitration agreement
SEC. 6. Exception to the Application of this Act. (6) any other person who obtains or
possesses confidential information by reason of
What are the exceptions to R.A. 9285?: his/her profession.
(a) labor disputes covered by Presidential (e) The protections of this Act shall continue to apply
Decree No. 442, otherwise known as the Labor even of a mediator is found to have failed to act
Code of the Philippines, as amended and its impartially.
Implementing Rules and Regulations;
(f) a mediator may not be called to testify to provide
(b) the civil status of persons; information gathered in mediation. A mediator who
(c) the validity of a marriage; is wrongfully subpoenaed shall be reimbursed the
full cost of his attorney's fees and related expenses.
(d) any ground for legal separation;
SEC. 10. Waiver of Confidentiality.
(e) the jurisdiction of courts;
How may a privilege arising from the confidentiality
(f) future legitime; of information may be waived?
(g) criminal liability; and In a record, or orally during a proceeding by
the mediator and the mediation parties.
(h) those which by law cannot be
compromised. How may a privilege arising from the confidentiality
of information may likewise be waived by a nonparty
CHAPTER 2 – MEDIATION
participant?
SEC. 7. Scope.
It may be waived if the information is
What is the scope of mediation? provided by such nonparty participant.

shall cover voluntary mediation, whether ad What happens to a person who discloses
hoc or institutional, other than court-annexed. The confidential information?
term "mediation' shall include conciliation.
He shall be prohibited from asserting the
SEC. 9. Confidentiality of Information. privilege under Section 9 of this Chapter to bar
disclosure of the rest of the information necessary to
What are the following principles and guidelines a complete understanding of the previously
when Information is obtained through mediation disclosed information. If a person suffers loss or
proceedings? damages in a judicial proceeding against the person
The following guidelines and principles are who made the disclosure.
as follows: What happens to a person who discloses or makes
(a) Information obtained through mediation a representation about a mediation?
shall be privileged and confidential. He is prohibited from asserting the privilege
(b) A party, a mediator, or a nonparty under Section 9, to the extent that the
participant may refuse to disclose and may prevent communication prejudices another person in the
any other person from disclosing a mediation proceeding and it is necessary for the person
communication. prejudiced to respond to the representation of
disclosure.
(c) Confidential Information shall not be
SEC. 11. Exceptions to Privilege. -
subject to discovery and shall be inadmissible if any
adversarial proceeding, whether judicial or quasi- (a) There is no privilege against disclosure under
judicial, However, evidence or information that is Section 9 if mediation communication is:
otherwise admissible or subject to discovery does
not become inadmissible or protected from (1) in an agreement evidenced by a record
discovery solely by reason of its use in a mediation. authenticated by all parties to the agreement;

(d) In such an adversarial proceeding, the following (2) available to the public or that is made
persons involved or previously involved in a during a session of a mediation which is
mediation may not be compelled to disclose open, or is required by law to be open, to the
confidential information obtained during mediation: public;

(1) the parties to the dispute; (3) a threat or statement of a plan to inflict
bodily injury or commit a crime of violence;
(2) the mediator or mediators;
(4) internationally used to plan a crime,
(3) the counsel for the parties; attempt to commit, or commit a crime, or
(4) the nonparty participants; conceal an ongoing crime or criminal activity;

(5) any persons hired or engaged in (5) sought or offered to prove or disprove
connection with the mediation as secretary, abuse, neglect, abandonment, or
stenographer, clerk or assistant; and exploitation in a proceeding in which a public
agency is protecting the interest of an
individual protected by law; but this exception
 does not apply where a child protection (1) make an inquiry that is reasonable under
matter is referred to mediation by a court or the circumstances to determinate whether
a public agency participates in the child there are any known facts that a reasonable
protection mediation; individual would consider likely to affect the
impartiality of the mediator, including a
(6) sought or offered to prove or disprove a financial or personal interest in the outcome
claim or complaint of professional of the mediation and any existing or past
misconduct or malpractice filed against relationship with a party or foreseeable
mediator in a proceeding; or participant in the mediation; and
(7) sought or offered to prove or disprove a (2) disclosure to the mediation parties any
claim of complaint of professional such fact known or learned as soon as is
misconduct of malpractice filed against a practical before accepting a mediation.
party, nonparty participant, or representative
of a party based on conduct occurring during (b) If a mediation learns any fact described in
a mediation. paragraph (a) (1) of this section after accepting a
mediation, the mediator shall disclose it as soon as
(b) There is no privilege under Section 9 if a court or practicable.
administrative agency, finds, after a hearing in
camera, that the party seeking discovery of the What shall the mediator disclose at the request of
proponent of the evidence has shown that the the mediation party?
evidence is not otherwise available, that there is a
need for the evidence that substantially outweighs An individual who is requested to serve as
the interest in protecting confidentiality, and the mediator shall disclose his/her qualifications to
mediation communication is sought or offered in: mediate a dispute.

(1) a court proceeding involving a crime or General Rule: This Act does not require that a
felony; or mediator shall have special qualifications by
background or profession
(2) a proceeding to prove a claim or defense
that under the law is sufficient to reform or Exception: unless the special qualifications
avoid a liability on a contract arising out of the of a mediator are required in the mediation
mediation. agreement or by the mediation parties.

(c) A mediator may not be compelled to provide SEC. 14. Participation in Mediation
evidence of a mediation communication or testify in A party may designate a lawyer or any other
such proceeding. person to provide assistance in the mediation. A
(d) If a mediation communication is not privileged lawyer of this right shall be made in writing by the
under an exception in subsection (a) or (b), only the party waiving it. A waiver of participation or legal
portion of the communication necessary for the representation may be rescinded at any time.
application of the exception for nondisclosure may SEC. 15. Place of Mediation
be admitted. The admission of particular evidence
for the limited purpose of an exception does not The parties are free to agree on the place of
render that evidence, or any other mediation mediation. Failing such agreement, the place of
communication, admissible for any other purpose. mediation shall be any place convenient and
appropriate to all parties.
SEC. 12. Prohibited Mediator Reports
SEC. 16. Effect of Agreement to Submit Dispute
General Rule: A mediator may not make a report, to Mediation Under Institutional Rules.
assessment, evaluation, recommendation, finding,
or other communication regarding a mediation to a What happens when an agreement is to submit a
court or agency or other authority that make a ruling dispute to mediation by any institution?
on a dispute that is the subject of a mediation
Shall include an agreement to be bound by
Exception: the internal mediation and administrative policies of
such institution.
(a) Where the mediation occurred or
has terminated, or where a settlement was Further, an agreement to submit a dispute to
reached. mediation under international mediation rule shall be
deemed to include an agreement to have such rules
(b) As permitted to be disclosed govern the mediation of the dispute and for the
under Section 13 of this Chapter. mediator, the parties, their respective counsel, and
SEC. 13. Mediator's Disclosure and Conflict of nonparty participants to abide by such rules.
Interest What happens when there is conflict between
Operative Principles of mediation in regards to institutional mediation and Provisions of R.A. 9285?
mediator’s disclosure and conflict of interest: In case of conflict between the institutional
(a) Before accepting a mediation, an individual who mediation rules and the provisions of this Act, the
is requested to serve as a mediator shall: latter shall prevail.
SEC. 17. Enforcement of Mediated Settlement The Model Law on International Commercial
Agreement Arbitration (the "Model Law") adopted by the United
Nations Commission on International Trade Law
Operative principles in the enforcement of mediated
settlement agreement: SEC. 21. Commercial Arbitration
(a) A settlement agreement following When is an arbitration commercial?
successful mediation shall be prepared by the
parties with the assistance of their respective An arbitration is "commercial" if it covers
counsel, if any, and by the mediator. matters arising from all relationships of a commercial
nature, whether contractual or not.
The parties and their respective counsels
shall endeavor to make the terms and condition Relationships of a transactions:
thereof complete and make adequate provisions for a. any trade transaction for the
the contingency of breach to avoid conflicting supply or exchange of goods or
interpretations of the agreement. services;
(b) The parties and their respective counsels, b. distribution agreements;
if any, shall sign the settlement agreement. The construction of works;
mediator shall certify that he/she explained the c. commercial representation or
contents of the settlement agreement to the parties agency;
in a language known to them. d. factoring;
e. leasing, consulting;
(c) If the parties so desire, they may deposit f. engineering;
such settlement agreement with the appropriate g. licensing;
Clerk of a Regional Trial Court of the place where h. investment;
one of the parties resides. Where there is a need to i. financing;
enforce the settlement agreement, a petition may be j. banking;
filed by any of the parties with the same court, in k. insurance;
which case, the court shall proceed summarily to l. joint venture and other forms of
hear the petition, in accordance with such rules of industrial or business
procedure as may be promulgated by the Supreme cooperation; carriage of goods or
Court. passengers by air, sea, rail or
road.
(d) The parties may agree in the settlement
agreement that the mediator shall become a sole SEC. 22. Legal Representation in International
arbitrator for the dispute and shall treat the Arbitration
settlement agreement as an arbitral award which
shall be subject to enforcement under Republic Act Who may represent a party in an international
No. 876, otherwise known as the Arbitration Law, arbitration conducted in the Philippines?
notwithstanding the provisions of Executive Order A party may be presented by any person of
No. 1008 for mediated dispute outside of the CIAC. his choice. Provided, that such representative,
CHAPTER 3 - OTHER ADR FORMS unless admitted to the practice of law in the
Philippines, shall not be authorized to appear as
SEC. 18. Referral of Dispute to other ADR Forms counsel in any Philippine court, or any other quasi-
judicial body whether or not such appearance is in
The parties may agree to refer one or more relation to the arbitration in which he appears.
or all issues arising in a dispute or during its
pendency to other forms of ADR such as but not SEC. 23. Confidential of Arbitration Proceedings
limited to
General Rule: The arbitration proceedings, including
(a) the evaluation of a third person or the records, evidence and the arbitral award, shall
be considered confidential and shall not be
(b) a mini-trial, published
(c) mediation-arbitration, or a combination Exception:
thereof.
(1) With the consent of the parties, or
For purposes of this Act, the use of other ADR forms
shall be governed by Chapter 2 of this Act except (2) For the limited purpose of
where it is combined with arbitration in which case it disclosing to the court of relevant documents
shall likewise be governed by Chapter 5 of this Act. in cases where resort to the court is allowed
herein.
CHAPTER 4 - INTERNATIONAL COMMERCIAL
ARBITRATION Provided, the court in which the
action or the appeal is pending may issue a
SEC. 19. Adoption of the Model Law on protective order to prevent or prohibit
International Commercial Arbitration. disclosure of documents or information
International commercial arbitration shall be containing secret processes, developments,
governed by what law? research and other information where it is
shown that the applicant shall be materially
 prejudiced by an authorized disclosure SEC. 28. Grant of Interim Measure of Protection.
thereof.
(a.) Is it incompatible with an arbitration agreement
SEC. 24. Referral to Arbitration for a party to request, before constitution of the
tribunal, from a Court an interim measure of
What shall the court do in an action that is brought protection and for the Court to grant such measure?
before them which is the subject matter of an
arbitration agreement? No.
General Rule: A court shall, if at least one When may a request for an interim measure of
party so requests not later that the pre-trial protection or modification be made with the arbitral
conference, or upon the request of both parties tribunal?
thereafter, refer the parties to arbitration
After constitution of the arbitral tribunal and
Exception: it finds that the arbitration during arbitral proceedings, a request for an interim
agreement is null and void, inoperative or incapable measure of protection or modification, may be made
of being performed. with the arbitral tribunal or to the extent that the
arbitral tribunal has no power to act or is unable to
SEC. 25. Interpretation of the Act act effectively, the request may be made with the
In interpreting the Act, the court shall have Court.
due regard to the policy of the law in favor of When is the arbitral tribunal deemed constituted?
arbitration.
It is deemed constituted when the sole
Where action is commenced by or against arbitrator or the third arbitrator who has been
multiple parties, one or more of whom are parties nominated, has accepted the nomination and written
who are bound by the arbitration agreement communication of said nomination and acceptance
although the civil action may continue as to those has been received by the party making request.
who are not bound by such arbitration agreement.
(b) The following rules on interim or provisional relief
SEC. 26. Meaning of "Appointing Authority." shall be observed:
The person or institution named in the (1) Any party may request that provision
arbitration agreement as the appointing authority; or relief be granted against the adverse party:
the regular arbitration institution under whose rules
the arbitration is agreed to be conducted. (2) Such relief may be granted:
General Rule: Where the parties have agreed to (i) to prevent irreparable loss or
submit their dispute to institutional arbitration rules, injury:
they shall be deemed to have agreed to procedure
under such arbitration rules for the selection and (ii) to provide security for the
appointment of arbitrators. performance of any obligation;

Exception: unless they have agreed to a (iii) to produce or preserve any

different procedure, evidence; or

Who shall make the default appointment in ad hoc (iv) to compel any other appropriate
arbitration? act or omission.

The default appointment of an arbitrator shall (3) The order granting provisional relief may
be made by the National President of the Integrated be conditioned upon the provision of security
Bar of the Philippines (IBP) or his duly authorized or any act or omission specified in the order.
representative. (4) How is an interim or provisional relief
SEC. 27. What Functions May be Performed by requested?
Appointing Authority Interim or provisional relief is
General Rule: The functions referred to in requested by written application transmitted
Articles 11(3), 11(4), 13(3) and 14(1) of the Model by reasonable means to the Court or arbitral
Law shall be performed by the Appointing Authority, tribunal as the case may be.

Exception: unless the latter shall fail The party against whom the relief is
or refuse to act within thirty (30) days from sought, describing in appropriate detail the
receipt of the request in which case the precise relief, the party against whom the
applicant may renew the application with the relief is requested, the grounds for the relief,
Court. and evidence supporting the request.
(5) The order shall be binding upon the
parties.
(6) Either party may apply with the Court for
assistance in Implementing or enforcing an
interim measure ordered by an arbitral
tribunal.
 (7) A party who does not comply with General Rule: This agreement or determination,
the order shall be liable for all damages shall apply to any written statement by a party, any
resulting from noncompliance, including all hearing and any award, decision or other
expenses, and reasonable attorney's fees, communication by the arbitral tribunal.
paid in obtaining the order's judicial
enforcement. Exception: unless otherwise specified
therein
SEC. 29. Further Authority for Arbitrator to Grant
Interim Measure of Protection The arbitral tribunal may order that any
documentary evidence shall be accompanied by a
General Rule: the arbitral tribunal may, at the translation into the language or languages agreed
request of a party, order any party to take such upon by the parties or determined in accordance
interim measures of protection as the arbitral tribunal with paragraph 1 of this section.
may consider necessary in respect of the subject
matter of the dispute following the rules in Section
28, paragraph 2. CHAPTER 5 - DOMESTIC ARBITRATION
Such interim measures may include but shall SEC. 32. Law Governing Domestic Arbitration
not be limited to:
Domestic arbitration shall continue to be
a. preliminary injuction directed against a governed by Republic Act No. 876, otherwise
party, known as "The Arbitration Law" as amended by this
b. appointment of receivers or detention, Chapter.
c. preservation,
d. inspection of property that is the subject The term "domestic arbitration" as used
of the dispute in arbitration. herein shall mean an arbitration that is not
international as defined in Article (3) of the Model
Exception: Unless otherwise agreed by the parties Law.
Either party may apply with the Court for SEC. 33. Applicability to Domestic Arbitration
assistance in implementing or enforcing an interim
measures ordered by an arbitral tribunal. Article 8, 10, 11, 12, 13, 14, 18 and 19 and
29 to 32 of the Model Law and Section 22 to 31 of
SEC. 30. Place of Arbitration the preceding Chapter 4 shall apply to domestic
General Rule: The parties are free to agree on the arbitration.
place of arbitration. Failing such agreement, the
place of arbitration shall be in Metro Manila,
CHAPTER 6 - ARBITRATION OF
Exception: unless the arbitral tribunal, having CONSTRUCTION DISPUTES
regard to the circumstances of the case,
including the convenience of the parties shall SEC. 34. Arbitration of Construction Disputes:
decide on a different place of arbitration. Governing Law
General Rule: The arbitral tribunal may meet at any What shall govern construction disputes?
place it considers appropriate for consultation
It shall be governed by Executive Order No.
among its members, for hearing witnesses, experts,
1008, otherwise known as the Constitution
or the parties, or for inspection of goods, other
Industry Arbitration Law.
property or documents.
SEC. 35. Coverage of the Law
Exception: unless otherwise agreed by the
parties. Original and exclusive jurisdiction of the
Construction Industry Arbitration Commission
SEC. 31. Language of the Arbitration.
Includes:
General Rule: The parties are free to agree on the
language or languages to be used in the arbitral Those between or among parties to,
proceedings. or who are otherwise bound by, an arbitration
agreement, directly or by reference whether
Exception: the arbitral tribunal shall
such parties are project owner, contractor,
determine a different or another language or
subcontractor, quantity surveyor, bondsman
languages to be used in the proceedings.
or issuer of an insurance policy in a
What is the language to be used in international construction project.
arbitration?
The Commission shall continue to exercise original
The language to be used shall be English in and exclusive jurisdiction over construction disputes
international arbitration. although the arbitration is "commercial" pursuant to
Section 21 of this Act.
What is the language to be used for domestic
arbitration?
The language to be used is English or
Filipino for domestic arbitration,
SEC. 36. Authority to Act as Mediator or A domestic arbitral award when confirmed
Arbitrator shall be enforced in the same manner as final and
executory decisions of the Regional Trial Court.
How shall a mediator act as an arbitrator and vice
versa? The confirmation of a domestic award shall
be made by the regional trial court in accordance
By written agreement of the parties to a with the Rules of Procedure to be promulgated by
dispute, an arbitrator may act as mediator and a the Supreme Court.
mediator may act as arbitrator.
Does a CIAC arbitral award be confirmed by R.T.C.?
How can the mediator issue the settlement
agreement in the form of an arbitral award? A CIAC arbitral award need not be confirmed
by the regional trial court to be executory as provided
The parties may in writing that, following a under E.O. No. 1008.
successful mediation, the mediator shall issue the
settlement agreement in the form of an arbitral SEC. 41. Vacation Award
award.
How can a party to a domestic arbitration question
SEC. 37. Appointment of Foreign Arbitrator the arbitral award?
The Construction Industry Arbitration Commission A party to a domestic arbitration may
(CIAC) shall promulgate rules to allow for the question the arbitral award with the appropriate
appointment of a foreign arbitrator or coarbitrator or regional trial court in accordance with the rules of
chairman of a tribunal a person who has not been procedure to be promulgated by the Supreme Court
previously accredited by CIAC: Provided, That: only on those grounds enumerated in Section 25 of
Republic Act No. 876.
(a) the dispute is a construction dispute in
which one party is an international party Any other ground raised against a domestic
arbitral award shall be disregarded by the regional
(b) the person to be appointed agreed to trial court.
abide by the arbitration rules and policies of CIAC;
B. FOREIGN ARBITRAL AWARDS
(c) he/she is either coarbitrator upon the
nomination of the international party; or he/she is the SEC. 42. Application of the New York Convention
common choice of the two CIAC-accredited
arbitrators first appointed one of whom was Who shall govern the recognition and enforcement
nominated by the international party; and of foreign arbitral award of the New York
Convention?
(d) the foreign arbitrator shall be of different
nationality from the international party. The New York Convention shall govern the
recognition and enforcement of arbitral awards
SEC. 38. Applicability to Construction covered by the said Convention.
Arbitration
Where shall the recognition and enforcement of such
The provisions of Sections 17 (d) of Chapter arbitral awards be filled?
2, and Section 28 and 29 of this Act shall apply to
arbitration of construction disputes covered by this With regional trial court in accordance with
Chapter. the rules of procedure to be promulgated by the
Supreme Court.
SEC. 39. Court to Dismiss Case Involving a
Construction Dispute What shall the procedural rules provide?

When shall the R.T.C. dismiss a case involving a It shall provide that the party relying on the
construction dispute? award or applying for its enforcement shall file with
the court the original or authenticated copy of the
General Rule: upon becoming aware, not award and the arbitration agreement.
later than the pretrial conference that the parties had
entered into an arbitration to be conducted by the If the award or agreement is not made in any
CIAC. of the official languages, the party shall supply a duly
certified translation thereof into any of such
Exception: unless both parties, assisted by languages.
their respective counsel, shall submit to the regional
trial court a written agreement exclusive for the What shall the applicant establish?
Court, rather than the CIAC, to resolve the dispute. The applicant shall establish that the country
CHAPTER 7 - JUDICIAL REVIEW OF ARBITRAL in which foreign arbitration award was made is a
AWARDS party to the New York Convention.

A. DOMESTIC AWARDS What happens if the application for rejection or

suspension of enforcement of an award has been
SEC. 40. Confirmation of Award made?
The confirmation of a domestic arbitral award shall If the application for rejection or suspension
be governed by Section 23 of R.A. 876. of enforcement of an award has been made, the
regional trial court may, if it considers it proper,
How shall a domestic arbitral award be enforced?
vacate its decision and may also, on the application (b) The party against whom the award is
of the party claiming recognition or enforcement of invoked was not given proper notice of the appointment
of the arbitrator or of the arbitration proceedings or was
the award, order the party to provide appropriate otherwise unable to present his case; or
security.
SEC. 43. Recognition and Enforcement of (c) The award deals with a difference not
Foreign Arbitral Awards Not Covered by the New contemplated by or not falling within the terms of the
submission to arbitration, or it contains decisions on
York Convention matters beyond the scope of the submission to
arbitration, provided that, if the decisions on matters
What happens when the recognition and submitted to arbitration can be separated from those
enforcement of foreign arbitral awards are not not so submitted, that part of the award which contains
covered by the New York Convention? decisions on matters submitted to arbitration may be
recognized and enforced; or
The recognition and enforcement of foreign
arbitral awards not covered by the New York
(d) The composition of the arbitral authority or
Convention shall be done in accordance with the arbitral procedure was not in accordance with the
procedural rules to be promulgated by the Supreme agreement of the parties, or, failing such agreement,
Court. The Court may, grounds of comity and was not in accordance with the law of the country
reciprocity, recognize and enforce a non-convention where the arbitration took place; or
award as a convention award.
(e) The award has not yet become binding on
SEC. 44. Foreign Arbitral Award Not Foreign the parties, or has been set aside or suspended by a
Judgment competent authority of the country in which, or under
the law of which, that award was made.
What happens when a foreign arbitral award is
confirmed by a court of a foreign country? 2. Recognition and enforcement of an arbitral award
may also be refused if the competent authority in the country
It shall be recognized and enforced as a where recognition and enforcement is sought finds that:
foreign arbitral award and not a judgment of a foreign (a) The subject matter of the difference is not
court. capable of settlement by arbitration under the law of
that country; or
What happens when a foreign arbitral award is
confirmed by the Regional Trial Court? (b) The recognition or enforcement of the
award would be contrary to the public policy of that
A foreign arbitral award, when confirmed by country.
the regional trial court, shall be enforced as a foreign
arbitral award and not as a judgment of a foreign SEC. 46. Appeal from Court Decisions on
court. Arbitral Awards
How shall a foreign arbitral award be enforced when How are R.T.C. arbitral awards appealed?
confirmed by R.T.C.?
A decision of the regional trial court
A foreign arbitral award, when confirmed by confirming, vacating, setting aside, modifying or
the regional trial court, shall be enforced in the same correcting an arbitral award may be appealed to the
manner as final and executory decisions of courts of Court of Appeals in accordance with the rules of
law of the Philippines. procedure to be promulgated by the Supreme Court.
SEC. 45. Rejection of a Foreign Arbitral Award The losing party who appeals from the
judgment of the court confirming an arbitral award
How can a party to a foreign arbitration proceeding shall be required by the appealant court to post
oppose an application for recognition and counterbond executed in favor of the prevailing party
enforcement? equal to the amount of the award in accordance with
A party to a foreign arbitration proceeding the rules to be promulgated by the Supreme Court.
may oppose an application for recognition and SEC. 47. Venue and Jurisdiction
enforcement of the arbitral award in accordance with
the procedural rules to be promulgated by the What are deemed as special proceedings?
Supreme Court only on those grounds enumerated
under Article V of the New York Convention. Any 1. Proceedings for recognition and
other ground raised shall be disregarded by the enforcement of an arbitration agreement
regional trial court. or for vacation, setting aside, correction
or modification of an arbitral award.
Article V of the New York Convention 2. Any application with a court for arbitration
1. Recognition and enforcement of the award may be assistance and supervision shall be
refused, at the request of the party against whom it is invoked, deemed as special proceedings and
only if that party furnishes to the competent authority where the
recognition and enforcement is sought, proof that: Where shall it be filled?
(a) The parties to the agreement referred to in With the regional trial court
article II were, under the law applicable to them, under
some incapacity, or the said agreement is not valid (i) where arbitration proceedings are
under the law to which the parties have subjected it or, conducted;
failing any indication thereon, under the law of the
country where the award was made; or
 (ii) where the asset to be attached or levied SEC. 51. Appropriations.
upon, or the act to be enjoined is located;
The amount necessary to carry out the
(iii) where any of the parties to the dispute provisions of this Act shall be included in the General
resides or has his place of business; or Appropriations Act of the year following its
enactment into law and thereafter.
(iv) in the National Judicial Capital Region, at
the option of the applicant. SEC. 52. Implementing Rules and Regulations
(IRR)
SEC. 48. Notice of Proceeding to Parties
Within one (1) month after the approval of
How shall a court send notice to parties in a special this Act, the secretary of justice shall convene a
proceeding of an arbitral award? committee that shall formulate the appropriate rules
1. The Court shall send notice to the parties and regulations necessary for the implementation of
at their address of record in the this Act. The committee, composed of
arbitration, or representatives from:
2. If any party cannot be served notice at (a) the Department of Justice;
such address, at such party's last known
address. (b) the Department of Trade and Industry;
The notice shall be sent at least fifteen (15) (c) the Department of the Interior and Local
days before the date set for the initial hearing of the Government;
application.
(d) the president of the Integrated Bar of the
CHAPTER 8 - MISCELLANEOUS PROVISIONS Philippines;
SEC. 49. Office for Alternative Dispute (e) A representative from the arbitration
Resolution profession; and
There is hereby established the Office for (f) A representative from the mediation
Alternative Dispute Resolution as an attached profession; and
agency to the Department of Justice (DOJ) which
shall have a Secretariat to be headed by an (g) A representative from the ADR
executive director. The executive director shall be organizations shall within three (3) months after
appointed by the President of the Philippines. convening, submit the IRR to the Joint
Congressional Oversight Committee for review and
The objective of the office are: approval.
(a) to promote, develop and expand the use The Oversight Committee shall be composed
of ADR in the private and public sectors; and of the chairman of the Senate Committee on Justice
and Human Rights, chairman of the House
(b) To assist the government to monitor, Committee on Justice, and one (1) member each
study and evaluate the use by the public and the from the majority and minority of both Houses.
private sector of ADR, and recommend to Congress
needful statutory changes to develop. Strengthen The Joint Oversight Committee shall become
and improve ADR practices in accordance with world functus officio upon approval of the IRR.
standards.
SEC. 53. Applicability of the Katarungan
SEC. 50. Powers and Functions of the Office for Pambarangay
Alternative Dispute Resolution
This Act shall not be interpreted to repeal,
The Office for Alternative Dispute Resolution amend or modify the jurisdiction of the Katarungan
shall have the following powers and functions: Pambarangay under Republic Act No. 7160,
otherwise known as the Local Government Code of
(a) To formulate standards for the training of 1991.
the ADR practitioners and service providers;
(b) To certify that such ADR practitioners and
ADR service providers have undergone the
professional training provided by the office;
(c) To coordinate the development,
implementation, monitoring, and evaluation of
government ADR programs;
(d) To charge fees for their services; and
(e) To perform such acts as may be
necessary to carry into effect the provisions of this
Act.