ARBIT LAW

CHAPTER 1: THE ARBITRATION AGREEMENT

Laws which govern
Party Autonomy - RA 876: governs domestic arbitration
- Policy of the State to activity promote party autonomy or - Model Law of 1985: governs international commercial
freedom to make arrangements to resolve disputes. arbitration
- Achieve speedy and impartial justice and de-clog court dockets.
- Parties able to choose any ADR mechanism which results in a Definition of Arbitration under RA 9285
binding and enforceable resolution. - Voluntary dispute resolution process in which one or more
o e.g. Arbitration: parties are able to select their arbitrators, appointed in accordance with the agreement of
arbitrators, process of their selection (i.e. number, the parties or rules promulgated pursuant to law, resolve a
qualifications, or period for selection), substantive law dispute by rendering an award.
which determines their rights and oblis, procedure to be
followed, and seat of arbitration. Definition of arbit agreement under Model Law of 1985
- Compared to Litigation - An agreement by the parties to submit to arbitration all or
o Cannot choose judge or the procedure to be followed certain disputes which have arisen or which may arise between
them, in respect of a defined legal relationship, whether
Arbitration Agreement contractual or not.
- A contract is required for arbitration to take place and to be - May be in the form of (1) an arbitration clause in a contract, or
binding. (2) a separate agreement.
- 2 types, as distinguished in Sec. 2, RA 876:
(1) Submission Agreement Exceptions (matters Philippine law does not allow to be the subject
 When 2 or more parties submit to the arbitration of arbitration)
of 1 or more arbitrators any controversy existing (1) Labor disputes – covered by LC
between them at the time of the submission (2) Crim liability
 Dispute existed ahead of arbit agreement (3) Those which by law cannot be compromised (NCC 2035)
(2) Arbitration Agreement a. Civil status of persons
 When parties to any contract agree to settle by b. Validity of marriage or legsep
arbitration any controversy thereafter arising c. Any ground for legsep
between them d. Future support
 Arbit agreement existed ahead of dispute e. Jurisdiction of the courts
- Submission Agreement is an agreement to submit existing f. Future legitime
differences to arbitrators, while Arbitration Agreement is an
agreement to submit differences which may arise in the future. DOMESTIC ARBIT
(Vega v San Carlos) An agreement to submit to arbitration Formal Requisites of Arbitration Agreement
some future dispute is usually stipulated in a civil contract (1) Must be in writing
between the parties. (Ormoc v CA) (2) Subscribed by the parties or their representatives
- What determines whether an agreement is a SA or AA: time
when the controversy arises or when it is expected to arise (if it Subscribe: To write one’s name underneath; to sign at the end of
will ever arise) the document; to give consent or to attest (Ormoc v CA)
- Illustrations
o SA: When dispute arose, parties had no pre-existing BF Corp v CA
arbitration agreement in place. One party filed an action - The formal requisites were complied with in the contract. The
in RTC. While action was pending, parties agreed to Articles of Agreement, which incorporates all the other
execute a “Compromise and Arbitration Agreement” in contracts and agreements between the parties, was signed by
which they agreed to withdraw their claims from court representatives of both parties and notarized. The failure of
and to submit to arbit. (Asset Privatization Trust v CA) priv. res. to initial the “Conditions of Contract” would not affect
o AA: Parties agreed in their contract that “in the event of the compliance with the formal reqs because that particular
disagreement”, parties shall submit to arbit. (Portland portion of the covenants between the parties was included by
Cement v McDonough) reference in the Articles of Agreement. Subscription of the
- An arbit agreement, whether SA or VA, is valid, enforceable principal agreement effectively covered the other documents
and irrevocable, save upon such grounds as exist at law for the incorporated by reference therein.
revocation of any contract - A contract need not be in a single writing. It is sufficient if the
- It is the law between the parties. Consistent with NCC 1159: unsigned instruments are clearly identified or referred to and
Oblis arising from contracts have the force of law between the made part of the signed instrument.
contracting parties and should be complied with in GF. - Similarly, a written agreement of which there are 2 copies, 1
- Relation of the parties is contractual, and their rights and oblis signed by each of the parties, is binding on both to the same
are controlled by the law of contracts extent as though there had been only 1 copy signed by both.
o Ordinary elements of a valid contract must appear in
Associated Bank v CA
arbit agreement (i.e. agreement to abide by the award)
o Arbit agreement binds parties, their heirs and assigns
 ARBIT LAW

- Under the PCHC Rules, mere act of participation of the parties end. The invalidity of the main “container contract” does not
concerned in its operations amounts to a manifestation of affect the validity of the arbit agreement.
agreement by the parties to abide by its Rules. Sec 36.6 therein - Makes reference to Prima Paint Corp v Flood and Conklin:
provide that the fact that a bank participates in the clearing Prima Paint was not entitled to trial on the question because its
operations shall be deemed its written and subscribed consent allegations of fraudulent inducement were not directed to the
to the binding effect of this arbitration agreement, as if it had arbit clause itself, but only to the consulting agreement which
done so in accordance with RA 876. Associated Bank, having contained the arbit agreement. Arbit clauses are separable
voluntarily bound itself to abide by such Rules, is estopped from the contracts in which they are imbedded. No claim of
from seeking relief from RTC without first obtaining an adverse fraud was directed to the arbit clause itself.
decision from the body.
Resolution/Rescission of Arbit Agreement
Ormoc Sugarcane v CA - Where a contract contains an arbit clause, a party may not
- Petitioners herein were not signatories to the milling contracts, unilaterally resolve or terminate the contract, on account of
whether as party or as a representative of their member infractions committed by the other, without first resorting to
planters. The individual planter and the appropriate central arbit.
were the only signatories to the contracts. There is no
provision in the milling contracts that the individual planter is Korea Technologies v Lerma
authorizing the association to represent him in a legal case in - Arbit clause of the subject contract is valid and binding on the
case of a dispute over the milling contracts. parties and not contrary to public policy. Hence, a party may
- Even if they were indeed representatives, they could not not unilaterally rescind or terminate the contract for whatever
initiate arbit proceedings in their own name as they had done cause without first resorting to arbit. Whatever infractions,
herein. As mere agents, they should have brought the suit in breaches or differences arising from the contract must be
the name of the principals they purportedly represent. brought first and resolved by arbit, not through an extrajudicial
rescission or judicial action.
ICA - Case modifies the rule on the resolution of reciprocal oblis
Formal requisite: In writing under NCC 1191 when a contract contains an arbit clause.
 NCC 1191: Power to rescind oblis is implied in
In writing if— reciprocal ones, in case one of the obligors should
(1) In a document not comply with what is incumbent upon him.
 Signed by the parties - Makes reference to UP v De Los Angeles: The law does not
(2) In an exchange of letters, telex, telegrams, or other means of require that the contracting party who believes itself injured
telecommunication must first file suit and wait for a judgment before taking
 Which provide a record of the agreement extrajudicial steps to protect its interest. Extrajudicial
(3) In an exchange of Statement of Claim and Defense, where resolution may be contested in court which renders a final
existence of an agreement is alleged by 1 and not denied by award conclusively settling whether resolution was proper or
another not.
 Arbit agreement is deemed to be in writing, despite lack  However, with the promulgation of Korea Tech
of physical evidence of the agreement case, rule on right of an aggrieved party to
(4) Reference in a contract to a document containing an arbit unilaterally resolve or rescind is modified where
clause there is an arbit clause.
 Provided: (a) contract is in writing, and (b) reference is
such as to make that clause part of the contract.

Principle of Separability of Arbitration Clause

- SADR: Arbitration clause shall be treated as an agreement
independent of other terms of the contract of which it forms
part. Hence, a decision that the container contract is null and
void shall not entail ipso jure the invalidity of the arbit clause.
- Applies both to Domestic and ICA. Both SADR and Model Law
provides for its separability.
- A clause in a contract to submit to arbitration any dispute is
itself a contract. Contracts are respected as the law between
the contracting parties and produce effect as between them,
their heirs and assigns.

Gonzales v Climax Mining

- Arbit agreement is independent of the main contract. It is to be
treated as a separate agreement and it does not automatically
terminate when the contract of which it is part comes to an
 ARBIT LAW

CHAPTER II: DOMESTIC AND INTERNATIONAL COMMERCIAL CHAPTER III: COMMENCEMENT OF ARBITRATION
ARBITRATION

Commercial – Covers matters arising from all relationships of a Mode of Commencement of Arbitration
commercial nature, whether contractual or not. Includes the ff. - Agreement to arbitrate is a contract. Relation of the parties is
transactions: trade transaction for the supply or exchange of goods contractual and the rights and oblis are controlled by the law of
or services, distribution agreements, construction works, contracts. It is the law between the parties. Thus, must abide
commercial representation or agency, factoring, leasing, consulting, by it in GF.
engineering, licensing, investment, financing, banking, insurance, JV, - Depends on which type:
business coops, carriage of goods or passengers. (1) Institutional Arbitration
 Manner of commencement depends on the rules
Importance of Distinguishing of the arbit institution adopted by the parties in
- Available remedies for the winning party to enforce, or for the their arbit agreement
losing party to assail, the arbitral award.  Whether domestic or international
(2) Adhoc Arbitration
Distinction  No agreed procedure by the parties
(1) Domestic Arbitration – any arbitration that is not international  Law provides for the manner of commencement
as defined in Art. 1(3) of the Model Law.
(2) International Arbitration ADHOC ARBIT: Domestic
a. Parties to an arbitration agreement have, at the time of Demand for Arbitration (Ist submission)
the conclusion of that agreement, their places of - Service by either party upon the other of a Demand for Arbit in
business in different States; accordance with the arbit contract.
b. Place of arbitration, if determined in or pursuant to the - Demand shall set forth:
arbit agreement - is situated outside the State in which (1) Nature of the controversy
the parties have their place of business; (2) Amount involved (if any)
c. Any place where a substantial part of the obli of the (3) Relief sought (not monetary; i.e. termination of
commercial relationship is to be performed, or place agreement)
with which the SM of the dispute is most closely - Attach true copy of the contract/arbit agreement
connected - is situated outside the State in which parties - Service of demand: in person or by registered mail
have their place of business;
d. Parties have expressly agreed that the SM of the arbit If contract provides for appointment of a single arbitrator
agreement relates to more than 1 country. - Demand shall set forth the specific time within which parties
shall agree upon such arbitrator
Place of business
(1) If a party has more than 1 place of business – that with the If contract provides for appointment of 3 arbitrators, 1 to be
closest relationship to the arbit agreement selected by each party
(2) If a party does not have a place of business – refer to his - Demand shall: (1) name the arbitrator appointed by the party
habitual residence making the demand, (2) require the party upon whom demand
is made to advise in writing within 15 days after receipt the
Interpretation of Model Law name of the person it appoints, and (3) require that the 2
- Regard to be made to international origin and need for arbitrators so appointed must agree upon a 3rd arbitrator
uniformity in interpretation. within 10 days from date of notice.
- Resort to travaux preparatoires and report of the Sec Gen of
UNCITRAL ADHOC ARBIT: ICA
Request for Arbitration
Model Law of 1985 governs ICA - Commencement of arbit proceedings: Upon service of a
- UNCITRAL Model Law as amended in 2006 is the more Demand or a Request for Arbit upon the respondent (on the
recent version. However, Sec. 19 of RA 9285 and ADR Act date respondent receives such)
of 2004 specify that Model Law of 1985 shall govern ICA  Except: if otherwise agreed by parties
in the Phils without qualification. Hence, the amendments - No need for court order to formally commence arbit
in 2006 do not affect the continuing application of Model proceedings
Law of 1985, as it cannot automatically apply. Plain
meaning rule or verba legis. Judicial Relief Before Commencement of Arbitration
- Note that Korea Tech v Lerma (2008) invokes Model Law - Available under the SADR, provided the place of arbit is in the
of 2006, giving the impression that the 2006 amendments Phils
of the Model Law apply to the Phils. Nevertheless, the
applicability of the Model Law was not the issue therein Any party may petition appropriate court to determine any question
but a mere obiter. concerning existence, validity, and enforceability of arbit
agreement.
- When to file: Any time prior to commencement of arbit
 ARBIT LAW

 However, despite pendency of petition, arbit - Where to file: RTC of the place where arbit is taking place, or
proceedings may commence and continue to render where any of the parties resides or has a principal place of
award WHILE issue is pending before court business
- Where to file: RTC of the place where any of the parties resides - When to file: within 30 days from receipt of notice of ruling by
or has a principal place of business tribunal
- Form - Form (same with pet before commencement)
(1) Must be verified (1) Must be verified
(2) Shall state the ff: (LNGR) (2) Shall state the ff: (LNGR)
a. Facts showing that the person named as pet or res a. Facts showing that the person named as pet or res
have legcap to sue or be sued; have legcap to sue or be sued;
b. Nature and substance of dispute b. Nature and substance of dispute
c. Grounds and circumstances relied upon by pet c. Grounds and circumstances relied upon by pet
d. Relief sought d. Relief sought
(3) Must attach authentic copy of the arbit agreement (3) Must attach copy of the request for arbit and ruling fo the
arbit tribunal
Comment/Opposition: within 15 days from service of pet (4) Must implead arbitrators as nominal parties and notified
of progress of case
Court may GRANT pet: if shown that arbit agreement is, under the  But tribunal not required to submit pleadings or
applicable law, invalid, void, or unenforceable (includes issues of submissions
nullity, inoperativeness, incapability of being performed)
Comment/Opposition: within 15 days from service of pet
Resolution by court: Summary Proceedings
- Court must exercise judicial restraint in accordance with policy Resolution by court: Summary Proceedings
under Rule 2.4 of SADR, deferring to the arbit tribunal to rule - Court shall render judgment on the basis of pleadings filed and
on its competence or jurisdiction – either before or after arbit evid submitted within 30 days from time pet submitted for
tribunal is constituted. reso
- Competence – Competence Principle: Arbit tribunal accorded - May DISMISS pet: If it fails to comply with requirements to be
first opportunity to rule on the issue of whether or not it has stated and attached to pet, or pet does not appear to be prima
the jurisdiction to decide a dispute submitted to it for decision, facie meritorious
including any objection with respect to the existence or validity - May GRANT pet: If court finds arbit agreement invalid,
of the arbit agreement. inexistent, or unenforceable, as a result of which arbit tribunal
- Court may make prima facie determination of the issue only. has no jurisdiction to resolve dispute

Effect of prima facie determination upholding the existence, validity, No Injunction of Arbitration Proceedings
or enforceability (aka DENIAL of pet) - Court has no authority to enjoin arbit proceedings during the
- NOT subject of MR, appeal, or certiorari pendency of the pet in court for jud relief
- Must suspend the action and refer the parties to arbitration - Jud recourse shall not prevent tribunal from continuing the
pursuant to the arbit agreement proceedings and rendering award
- But will not prejudice right of any party to raise the said issues:
(1) Before the arbit tribunal, or Relief against court action
(2) In court, in an action to vacate or set aside the arbit - Aggrieved party may file MR, but NOT subject to appeal
awards - Ruling affirming the tribunal’s jurisdiction: NOT subject to pet
 Such will not be limited to a prima facie for cert
determination anymore, but will be a FULL - Ruling that tribunal has no jurisdiction: can be subject to a pet
REVIEW of the issues in acc with the standard for for cert
review of arbit awards prescribed in the SADR.
When tribunal renders award ahead of court action
Judicial Relief After Commencement of Arbitration - Pet becomes ipso facto moot and academic, and dismissed by
- Available under the SADR, provided the place of arbit is in the RTC without prejudice to right of aggrieved to raise such in a
Phils timely petition to vacate or set aside arbitral award.
- Distinction with Before Commencement: Herein, there already
exists a ruling in the arbit tribunal on a preliminary question When tribunal defers prelim ruling on jurisdiction until final award
upholding or declining its jurisdiction, and the jud relief sought - Aggrieved party cannot seek jud relief to question the deferral
is intended to question such ruling. and must await final arbitral award before seeking jud recourse
- Such ruling deferring resolution not subject to MR, appeal, or
Any party may petition appropriate court for jud relief from the pet for cert
ruling of the arbit tribunal on prelim question of jurisdiction
- If REVERSED by the court: parties shall be free to replace any of Nature of court’s jurisdiction whether before or after arbit
the arbitrators in accordance with rules that were applicable commences
for their appointment - Exercises limited and special jurisdiction
 ARBIT LAW

- Cannot stray to matters outside the area of its declared Chapter IV: Appointment of Arbitrators
authority or beyond what has been expressly invested by law
- Sec 6 of RA 876: Duty of court is not to resolve merits of claims,
but only if they should proceed to arbit Definition of Arbitrator
 If court finds existence of valid arbit agreement – - Person appointed to render an award alone or with others in a
issue order summarily directing parties to proceed dispute subject of an arbit agreement
with arbit - Award: any partial or final decision by an arbitrator in resolving
 If none – proceedings dismissed the issue in controversy
- Merits should be addressed to the arbitrators - Equivalent of a judge in litigation; final award equivalent to final
decision rendered by a judge

Liability of Arbitrators
- Same civil liability for acts done in performance of their duties
as puboffs. Hence, not civilly liable for acts done in
performance of official duties, unless clear showing of BF,
malice, or gross negligence
- Applies to ADR Providers and Practitioners in general
 ADR Provider: institutions or persons accredited as
mediator, conciliator, arbitrator, neutral evaluator,
or any person exercising similar functions; includes
individuals acting as such though non-accredited.

Parties’ Participation in the Appointment of Arbitrators

- Policy of party Autonomy
- Free to agree on a procedure of appointment and number of
arbitrators. However, any clause giving one of the parties
power to choose more arbitrators than the other is void.
- If no agreement: THREE (3)
- Applies both to domestic and international arbit in the Phils

Magellan Capital v Zosa

- Under a management agreement, MCHC appointed MCMC as
manager of its operations. MCMC entered into an Employment
Contract designating Zosa as CEO. Arbit clause therein states
that MCHC, MCMC, and Zosa shall each appoint an arbitrator.
Court declared arbit clause invalid. MCHC and MCMC
represent the same interest. Thus, both should be entitled only
to 1 arbitrator to represent them. Otherwise, Zosa would never
receive justice and fairness in the arbit proceedings from the
panel as provided therein.
- NCC 2045 provides that any clause giving any one of the parties
power to choose more arbitrators than the other is void and no
effect.
- In a multi-party arbitration, parties representing the same
interest are entitled to appoint 1 arbitrator only.

Oil and Natural Gas v CA

- Clause 16 of the contract provides that coverage of the arbit
clause refers to questions and disputes relating to the meaning
of the specification, designs, drawings, and related instruction
(aka technical aspects, considering the purpose of referral is for
technical matters to be deliberated upon by a person with
required skill which may be absent in regular courts). Such shall
be “referred to the sole arbitration of persons appointed by
the member of commission. There will be no objection to any
such appointment that the arbitrator so appointed is a
Commission employer (sic).”
- The allegation of presumed bias of the arbitrator who was a
former employee of petitioner is untenable in view of the
stipulation in the contract.
 ARBIT LAW

- Autea: Although case gives one party exclusive power to shall be made by the Appointing Authority. Incase of
choose the arbitrator, such was not decided under Phil law. failure of such to act within reasonable time, any party
Moreover, the issue raised in Phil courts was w regard to the may request the Court to appoint.
enforcement of foreign judgment, not issue on enforcement of  Factor in Sec 27 of RA 9285: Appointing Authority actually
foreign arbitral award. Hence, NCC 2045 was not decisive. has 30 days, instead of reasonable time, to act on the
request of arbit.
Appointment of Arbitrator
- Must impartial and independent - 3 instances above apply to both Domestic and ICA
- A neutral 3rd party with power to resolve the dispute by - Not ministerial for court to appoint, but must conduct a
rendering a binding and enforceable award hearing before deciding w/n to appoint.
- Court must secure appointment of an independent and
Incase of a sole arbitrator impartial arbitrator
- Parties must agree on a particular individual - At anytime after petition is filed and before court makes
- Identity of a particular individual is commonly stipulated in the appointment, it shall DISMISS petition upon being informed
contract even before dispute arises that the Appointing Authority has already made the
appointment.
Incase of three-member arbitral tribunal
- Common ways for appointing a 3rd arbitrator: (there are other Where to file: RTC of the place where any of the parties resides or
methods) has a principal place of business, or in the National Capital Judicial
(1) Selected by the 2 party-appointed arbitrators Region.
(2) Appointed by the Appointing Authority designated in the
arbit agreement Contents of petition:
(1) General nature of the dispute
If parties are unable to agree in the selection of a sole arbitrator (2) Description of appointment procedure (if any), with reference
within the given time, or incase the 3rd arbitrator cannot be chosen to the agreement where such may be found
at the first try, it becomes necessary for some procedure to step in— (3) Number of arbitrators agreed upon, or absence thereof
(4) Special qualifications that arbitrators must possess (if any)
Petition for Appointment of Arbitrators (5) Fact that Appointing Authority, without justifiable cause, has
failed or refused to act within time prescribed or within
RTC may act as Appointing Authority in 3 instances under SADR: reasonable time
(1) Institutional Arbitration (6) Petitioner is not the cause of the delay or failure of
 Wherein parties failed or refused to appoint, or failed to appointment
reach an agreement AND the institution under whose
rules arbit is to be conducted fails or is unable to perform Must also attach to petition:
its duty as Appoint Authority within reasonable time from (1) Authentic copy of the arbit agreement
receipt of request for appointment (2) Proof that Appointing Authority has been notified of the filing
 Factor in Sec 27 of RA 9285: Appointing Authority actually of the pet for appointment with the court
has 30 days, instead of reasonable time, to act on the
request of arbit. Comment/Opposition: File within 15 days from service of petition.

(2) Adhoc Arbitration Nature: Summary Proceeding

 Wherein parties failed to provide a method for appointing
or replacing an arbitrator or substi arbitrator, or if method At the option of the court: may require each party to submit a list of
is ineffective AND the National President of the IBP or his not less than 3 proposed arbitrators, together with their CVs.
DAR fails or refuses to act within period allowed under IBP
Rules or period agreed upon by parties, or in absence, Pet shall be DISMISSED: When there is a pending petition in another
within 30 days. court to declare arbit agreement inexistent, invalid, unenforceable,
 Before court may step in to appoint, there must be a prior on account of which res failed or refused to participate in the
request to the National Pres of the IBP or his DAR to selection and appointment of arbitrator
appoint. Only upon failure within applicable time can the
court act. Relief Against Court Action
- Order APPOINTING an arbitrator is immediately executory and
(3) No institution specified, but designated an Appointing NOT subject to MR, appeal, pet for cert.
Authority in the agreement - But an order DENYING pet for appointment may be subject to
 Parties agreed that dispute is to resolved by 3 arbitrators, MR, appeal, pet for cert.
but no method of appointment agreed upon.
 Each party shall appoint 1 arbitrator, the 2 shall appoint ICA
the 3rd. If a party fails to appoint his arbitrator within 30 Qualifications and Disqualifications
days from receipt of request, or if the 2 fails to agree on - No person shall be precluded by reason of his nationality from
the 3rd arbitrator within reasonable time, appointment acting as an arbitrator
 ARBIT LAW

- Unless otherwise agreed by the parties o A party may challenge an arbitrator appointed by
him only for reasons which he becomes aware after
Domestic Arbit the appointment has been made
Qualifications (LFK)  Any of the grounds (i.e. lack of qualifications and existence
(1) Legal age of disqualifications) provided for by law (RA 9285, IRR, RA
(2) Full enjoyment of his civil rights 876, or Model Law)
(3) Know how to read and write o Nationality and professional qualification not
grounds to disqualify, unless agreed upon by parties.
Disqualifications (RIB)
(1) Relationship – cannot be related by blood or marriage within Procedure to challenge
the 6th cd to either party in the controversy (1) If all parties agree on the termination (revoked by agreement
(2) Interest – if he has or had financial, fiduciary, or other interest of parties)
in the controversy to be decided, or in the result of the - Art 14(1) of Model Law: arbitrator cannot refuse to
proceeding withdraw where all the parties agreed
(3) Bias – any personal bias, which might prejudice the right of any (2) Voluntary withdrawal by challenged arbitrator
party to fair and impartial award (3) Written statement to the Arbitral Tribunal
(4) Appointing Authority
If after appointment, but before or during hearing, person - Resolve within 30 days from the time the request is
appointed discovers any circumstances likely to disqualify him, he brought before him
must immediately disclose of such info. (5) File Petition to Terminate mandate in RTC where (a) principal
- Thereafter, the parties may agree in writing: place of business of parties; (b) where parties reside; (c)
(1) To waive the presumptive circumstance National Capital Judicial Region.
(2) To declare the office of such arbitrator vacant (vacancy - File within 30 days after notice of rejection, if arbitrator
filled in same manner as the original appointment) refuses to withdraw or Appointing Authority fails or
refuses to decide on the termination by mandate
GR: Arbitrator cannot act as a mediator in the same proceeding, and - State the ff:
all negotiations towards settlement of the dispute must take place  Name of arbitrator challenged and address
without the presence of arbitrators  Grounds for challenge
- Prevent arbitrator from acquiring info during mediation  Facts showing that challenged arbitrator rejected
proceedings which might influence objectivity in rendering the grounds
award  Facts showing that Appointing Authority failed or
EXC: In Arbitration of construction disputes (EO 1008), arbitrator refused to act on the challenge upon request
may act as a mediator and vice versa upon written agreement of the - Comment/Opposition of arbitrator/parties– within 15
parties to the contract. Parties may also agree that following a days from service of petition
successful mediation, mediator shall issue settlement agreement in - Court must resolve in summary proceedings
the form of an arbitral award.
Note: Art 13(3) of Model Law allows the Arbitral Tribunal and
Consequences of Disqualification challenged arbitrator to continue the arbitration proceedings and
(1) Domestic Arbitral Award: If arbitrator willfully refrains from make an award despite pendency of issue before the Appointing
disclosing any disqualification possessed by him  ground for Authority or the court, regardless if domestic or ICA. This rule
vacating award rendered by or with his participation supersedes Sec 11 of RA 876 which provides for suspension.
(2) International Arbitral Award: Appointment of arbitrator with
disqualification under arbit agreement affects the propriety of Court Action on the Challenge
the composition of the arbitral tribunal  award may be set - During court proceedings, of challenged arbitrator
aside or refused recognition or enforcement subsequently agrees to accept the challenge, the court shall
allow him to withdraw as arbitrator.
Party need not wait for award to be rendered by arbitrator before - Otherwise, court shall decide the issue on the basis of evid
seeking disqualification, may challenge an arbitrator and ask him to submitted
disqualify himself. - Any court order resolving petition is immediately executory.
Not subj to MR, appeal, or pet for cert.
Challenge to Appointment of Arbitrators
- Remedy available to a party in order to apply for the Appointment of Substitute Arbitrator Resulting from Challenge
disqualification of an arbitrator. Counterpart of inhibition in - Same rules applicable to the appointment of arbitrator being
court. replaced
- Apply to domestic and ICA - Mandate of challenged arbit is terminated:
- May be challenged only if: (1) By court order
 Circumstances exist that give rise to justifiable doubts as (2) His withdrawal from office
to his impartiality or independence (3) Revocation of his mandate by agreement of parties
 Does not possess qualifications agreed to by the parties (4) Any other case of termination of mandate
 ARBIT LAW

Termination of Mandate
- Any party may request termination of mandate:
(1) Arbitrator becomes de jure or de facto unable to perform
his function
(2) Fails to act without undue delay