Republic of the Philippines (b) "ADR Provider" means institutions or persons accredited as mediator,

Congress of the Philippines conciliator, arbitrator, neutral evaluator, or any person exercising similar
Metro Manila functions in any Alternative Dispute Resolution system. This is without
prejudice to the rights of the parties to choose nonaccredited individuals to
Begun and held in Metro Manila, on Monday, the twenty-eight day of July, two act as mediator, conciliator, arbitrator, or neutral evaluator of their dispute.
thousand three.
Whenever reffered to in this Act, the term "ADR practitioners" shall refer to
Republic Act No. 9285 April 2, 2004 individuals acting as mediator, conciliator, arbitrator or neutral evaluator;

AN ACT TO INSTITUTIONALIZE THE USE OF AN ALTERNATIVE (c) "Authenticate" means to sign, execute or adopt a symbol, or encrypt a
DISPUTE RESOLUTION SYSTEM IN THE PHILIPPINES AND TO record in whole or in part, intended to identity the authenticating party and
ESTABLISH THE OFFICE FOR ALTERNATIVE DISPUTE RESOLUTION, to adopt, accept or establish the authenticity of a record or term;
AND FOR OTHER PURPOSES
(d) "Arbitration" means a voluntary dispute resolution process in which one
Be it enacted by the Senate and House of Representatives of the Philippines in or more arbitrators, appointed in accordance with the agreement of the
Congress assembled: parties, or rules promulgated pursuant to this Act, resolve a dispute by
rendering an award;
CHAPTER 1 - GENERAL PROVISIONS
(e) "Arbitrator" means the person appointed to render an award, alone or
with others, in a dispute that is the subject of an arbitration agreement;
SECTION 1. Title. - This act shall be known as the "Alternative Dispute Resolution
Act of 2004."
(f) "Award" means any partial or final decision by an arbitrator in resolving
the issue in a controversy;
SEC. 2. Declaration of Policy. - it is hereby declared the policy of the State to
actively promote party autonomy in the resolution of disputes or the freedom of the
party to make their own arrangements to resolve their disputes. Towards this end, the (g) "Commercial Arbitration" An arbitration is "commercial if it covers
State shall encourage and actively promote the use of Alternative Dispute Resolution matter arising from all relationships of a commercial nature, whether
(ADR) as an important means to achieve speedy and impartial justice and declog contractual or not;
court dockets. As such, the State shall provide means for the use of ADR as an
efficient tool and an alternative procedure for the resolution of appropriate cases. (h) "Confidential information" means any information, relative to the
Likewise, the State shall enlist active private sector participation in the settlement of subject of mediation or arbitration, expressly intended by the source not to
disputes through ADR. This Act shall be without prejudice to the adoption by the be disclosed, or obtained under circumstances that would create a
Supreme Court of any ADR system, such as mediation, conciliation, arbitration, or reasonable expectation on behalf of the source that the information shall not
any combination thereof as a means of achieving speedy and efficient means of be disclosed. It shall include (1) communication, oral or written, made in a
resolving cases pending before all courts in the Philippines which shall be governed dispute resolution proceedings, including any memoranda, notes or work
by such rules as the Supreme Court may approve from time to time. product of the neutral party or non-party participant, as defined in this Act;
(2) an oral or written statement made or which occurs during mediation or
SEC. 3. Definition of Terms. - For purposes of this Act, the term: for purposes of considering, conducting, participating, initiating, continuing
of reconvening mediation or retaining a mediator; and (3) pleadings,
motions manifestations, witness statements, reports filed or submitted in an
(a) "Alternative Dispute Resolution System" means any process or
arbitration or for expert evaluation;
procedure used to resolve a dispute or controversy, other than by
adjudication of a presiding judge of a court or an officer of a government
agency, as defined in this Act, in which a neutral third party participates to (i) "Convention Award" means a foreign arbitral award made in a
assist in the resolution of issues, which includes arbitration, mediation, Convention State;
conciliation, early neutral evaluation, mini-trial, or any combination thereof;
(j) "Convention State" means a State that is a member of the New York (u) "Mini-Trial" means a structured dispute resolution method in which the
Convention; merits of a case are argued before a panel comprising senior decision
makers with or without the presence of a neutral third person after which
(k) "Court" as referred to in Article 6 of the Model Law shall mean a the parties seek a negotiated settlement;
Regional Trial Court;
(v) "Model Law" means the Model Law on International Commercial
(l) "Court-Annexed Mediation" means any mediation process conducted Arbitration adopted by the United Nations Commission on International
under the auspices of the court, after such court has acquired jurisdiction of Trade Law on 21 June 1985;
the dispute;
(w) "New York Convention" means the United Nations Convention on the
(m) "Court-Referred Mediation" means mediation ordered by a court to be Recognition and Enforcement of Foreign Arbitral Awards approved in 1958
conducted in accordance with the Agreement of the Parties when as action and ratified by the Philippine Senate under Senate Resolution No. 71;
is prematurely commenced in violation of such agreement;
(x) "Non-Convention Award" means a foreign arbitral award made in a
(n) "Early Neutral Evaluation" means an ADR process wherein parties and State which is not a Convention State;
their lawyers are brought together early in a pre-trial phase to present
summaries of their cases and receive a nonbinding assessment by an (y) "Non-Convention State" means a State that is not a member of the New
experienced, neutral person, with expertise in the subject in the substance of York Convention.
the dispute;
(z) "Non-Party Participant" means a person, other than a party or mediator,
(o) "Government Agency" means any government entity, office or officer, who participates in a mediation proceeding as a witness, resource person or
other than a court, that is vested by law with quasi-judicial power to resolve expert;
or adjudicate dispute involving the government, its agencies and
instrumentalities, or private persons; (aa) "Proceeding" means a judicial, administrative, or other adjudicative
process, including related pre-hearing motions, conferences and discovery;
(p) "International Party" shall mean an entity whose place of business is
outside the Philippines. It shall not include a domestic subsidiary of such (bb) "Record" means an information written on a tangible medium or stored
international party or a coventurer in a joint venture with a party which has in an electronic or other similar medium, retrievable form; and
its place of business in the Philippines.
(cc) "Roster" means a list of persons qualified to provide ADR services as
The term foreigner arbitrator shall mean a person who is not a national of neutrals or to serve as arbitrators.
the Philippines.
SEC. 4. Electronic Signatures in Global and E-Commerce Act. - The provisions of
(q) "Mediation" means a voluntary process in which a mediator, selected by the Electronic Signatures in Global and E-Commerce Act, and its implementing
the disputing parties, facilitates communication and negotiation, and assist Rules and Regulations shall apply to proceeding contemplated in this Act.
the parties in reaching a voluntary agreement regarding a dispute.
SEC. 5. Liability of ADR Provider and Practitioner. - The ADR providers and
(r) "Mediator" means a person who conducts mediation; practitioners shall have the same civil liability for the Acts done in the performance
of then duties as that of public officers as provided in Section 38 (1), Chapter 9,
(s) "Mediation Party" means a person who participates in a mediation and Book of the Administrative Code of 1987.
whose consent is necessary to resolve the dispute;
SEC. 6. Exception to the Application of this Act. - The provisions of this Act shall
(t) "Mediation-Arbitration" or Med-Arb is a step dispute resolution process not apply to resolution or settlement of the following: (a) labor disputes covered by
involving both mediation and arbitration; Presidential Decree No. 442, otherwise known as the Labor Code of the Philippines,
as amended and its Implementing Rules and Regulations; (b) the civil status of (f) a mediator may not be called to testify to provide information gathered
persons; (c) the validity of a marriage; (d) any ground for legal separation; (e) the in mediation. A mediator who is wrongfully subpoenaed shall be
jurisdiction of courts; (f) future legitime; (g) criminal liability; and (h) those which reimbursed the full cost of his attorney's fees and related expenses.
by law cannot be compromised.
SEC. 10. Waiver of Confidentiality. - A privilege arising from the confidentiality of
CHAPTER 2 - MEDIATION information may be waived in a record, or orally during a proceeding by the
mediator and the mediation parties.
SEC. 7. Scope. - The provisions of this Chapter shall cover voluntary mediation,
whether ad hoc or institutional, other than court-annexed. The term "mediation' shall A privilege arising from the confidentiality of information may likewise be waived
include conciliation. by a nonparty participant if the information is provided by such nonparty participant.

SEC. 8. Application and Interpretation. - In applying construing the provisions of A person who discloses confidential information shall be precluded from asserting
this Chapter, consideration must be given to the need to promote candor or parties the privilege under Section 9 of this Chapter to bar disclosure of the rest of the
and mediators through confidentiality of the mediation process, the policy of information necessary to a complete understanding of the previously disclosed
fostering prompt, economical, and amicable resolution of disputes in accordance information. If a person suffers loss or damages in a judicial proceeding against the
with the principles of integrity of determination by the parties, and the policy that the person who made the disclosure.
decision-making authority in the mediation process rests with the parties.
A person who discloses or makes a representation about a mediation is preclude from
SEC. 9. Confidentiality of Information. - Information obtained through mediation asserting the privilege under Section 9, to the extent that the communication
proceedings shall be subject to the following principles and guidelines: prejudices another person in the proceeding and it is necessary for the person
prejudiced to respond to the representation of disclosure.
(a) Information obtained through mediation shall be privileged and
confidential. SEC. 11. Exceptions to Privilege. -

(b) A party, a mediator, or a nonparty participant may refuse to disclose and (a) There is no privilege against disclosure under Section 9 if mediation
may prevent any other person from disclosing a mediation communication. communication is:

(c) Confidential Information shall not be subject to discovery and shall be (1) in an agreement evidenced by a record authenticated by all
inadmissible if any adversarial proceeding, whether judicial or quasi- parties to the agreement;
judicial, However, evidence or information that is otherwise admissible or
subject to discovery does not become inadmissible or protected from (2) available to the public or that is made during a session of a
discovery solely by reason of its use in a mediation. mediation which is open, or is required by law to be open, to the
public;
(d) In such an adversarial proceeding, the following persons involved or
previously involved in a mediation may not be compelled to disclose (3) a threat or statement of a plan to inflict bodily injury or commit
confidential information obtained during mediation: (1) the parties to the a crime of violence;
dispute; (2) the mediator or mediators; (3) the counsel for the parties; (4) the
nonparty participants; (5) any persons hired or engaged in connection with
(4) internationally used to plan a crime, attempt to commit, or
the mediation as secretary, stenographer, clerk or assistant; and (6) any
commit a crime, or conceal an ongoing crime or criminal activity;
other person who obtains or possesses confidential information by reason of
his/her profession.
(5) sought or offered to prove or disprove abuse, neglect,
abandonment, or exploitation in a proceeding in which a public
(e) The protections of this Act shall continue to apply even of a mediator is
agency is protecting the interest of an individual protected by law;
found to have failed to act impartially.
but this exception does not apply where a child protection matter is
 referred to mediation by a court or a public agency participates in SEC. 13. Mediator's Disclosure and Conflict of Interest. - The mediation shall be
the child protection mediation; guided by the following operative principles:

(6) sought or offered to prove or disprove a claim or complaint of (a) Before accepting a mediation, an individual who is requested to serve as
professional misconduct or malpractice filed against mediator in a a mediator shall:
proceeding; or
(1) make an inquiry that is reasonable under the circumstances to
(7) sought or offered to prove or disprove a claim of complaint of determinate whether there are any known facts that a reasonable
professional misconduct of malpractice filed against a party, individual would consider likely to affect the impartiality of the
nonparty participant, or representative of a party based on conduct mediator, including a financial or personal interest in the outcome
occurring during a mediation. of the mediation and any existing or past relationship with a party
or foreseeable participant in the mediation; and
(b) There is no privilege under Section 9 if a court or administrative agency,
finds, after a hearing in camera, that the party seeking discovery of the (2) disclosure to the mediation parties any such fact known or
proponent of the evidence has shown that the evidence is not otherwise learned as soon as is practical before accepting a mediation.
available, that there is a need for the evidence that substantially outweighs
the interest in protecting confidentiality, and the mediation communication (b) If a mediation learns any fact described in paragraph (a) (1) of this
is sought or offered in: section after accepting a mediation, the mediator shall disclose it as soon as
practicable.
(1) a court proceeding involving a crime or felony; or
At the request of a mediation party, an individual who is requested to serve as
(2) a proceeding to prove a claim or defense that under the law is mediator shall disclose his/her qualifications to mediate a dispute.
sufficient to reform or avoid a liability on a contract arising out of
the mediation. This Act does not require that a mediator shall have special qualifications by
background or profession unless the special qualifications of a mediator are required
(c) A mediator may not be compelled to provide evidence of a mediation in the mediation agreement or by the mediation parties.
communication or testify in such proceeding.
SEC. 14. Participation in Mediation. - Except as otherwise provided in this Act, a
(d) If a mediation communication is not privileged under an exception in party may designate a lawyer or any other person to provide assistance in the
subsection (a) or (b), only the portion of the communication necessary for mediation. A lawyer of this right shall be made in writing by the party waiving it. A
the application of the exception for nondisclosure may be admitted. The waiver of participation or legal representation may be rescinded at any time.
admission of particular evidence for the limited purpose of an exception
does not render that evidence, or any other mediation communication, SEC. 15. Place of Mediation. - The parties are free to agree on the place of
admissible for any other purpose. mediation. Failing such agreement, the place of mediation shall be any place
convenient and appropriate to all parties.
SEC. 12. Prohibited Mediator Reports. - A mediator may not make a report,
assessment, evaluation, recommendation, finding, or other communication regarding SEC. 16. Effect of Agreement to Submit Dispute to Mediation Under Institutional
a mediation to a court or agency or other authority that make a ruling on a dispute Rules. - An agreement to submit a dispute to mediation by any institution shall
that is the subject of a mediation, except: include an agreement to be bound by the internal mediation and administrative
policies of such institution. Further, an agreement to submit a dispute to mediation
(a) Where the mediation occurred or has terminated, or where a settlement under international mediation rule shall be deemed to include an agreement to have
was reached. such rules govern the mediation of the dispute and for the mediator, the parties, their
respective counsel, and nonparty participants to abide by such rules.
(b) As permitted to be disclosed under Section 13 of this Chapter.
In case of conflict between the institutional mediation rules and the provisions of this CHAPTER 4 - INTERNATIONAL COMMERCIAL ARBITRATION
Act, the latter shall prevail.
SEC. 19. Adoption of the Model Law on International Commercial Arbitration. -
SEC. 17. Enforcement of Mediated Settlement Agreement. - The mediation shall be International commercial arbitration shall be governed by the Model Law on
guided by the following operative principles: International Commercial Arbitration (the "Model Law") adopted by the United
Nations Commission on International Trade Law on June 21, 1985 (United Nations
(a) A settlement agreement following successful mediation shall be Document A/40/17) and recommended approved on December 11, 1985, copy of
prepared by the parties with the assistance of their respective counsel, if which is hereto attached as Appendix "A".
any, and by the mediator.
SEC. 20. Interpretation of Model Law. - In interpreting the Model Law, regard shall
The parties and their respective counsels shall endeavor to make the terms be had to its international origin and to the need for uniformity in its interpretation
and condition thereof complete and make adequate provisions for the and resort may be made to the travaux preparatories and the report of the Secretary
contingency of breach to avoid conflicting interpretations of the agreement. General of the United Nations Commission on International Trade Law dated March
25, 1985 entitled, "International Commercial Arbitration: Analytical Commentary on
Draft Trade identified by reference number A/CN. 9/264."
(b) The parties and their respective counsels, if any, shall sign the
settlement agreement. The mediator shall certify that he/she explained the
contents of the settlement agreement to the parties in a language known to SEC. 21. Commercial Arbitration. - An arbitration is "commercial" if it covers
them. matters arising from all relationships of a commercial nature, whether contractual or
not. Relationships of a transactions: any trade transaction for the supply or exchange
of goods or services; distribution agreements; construction of works; commercial
(c) If the parties so desire, they may deposit such settlement agreement with
representation or agency; factoring; leasing, consulting; engineering; licensing;
the appropriate Clerk of a Regional Trial Court of the place where one of
investment; financing; banking; insurance; joint venture and other forms of industrial
the parties resides. Where there is a need to enforce the settlement
agreement, a petition may be filed by any of the parties with the same court, or business cooperation; carriage of goods or passengers by air, sea, rail or road.
in which case, the court shall proceed summarily to hear the petition, in
accordance with such rules of procedure as may be promulgated by the SEC. 22. Legal Representation in International Arbitration. - In international
Supreme Court. arbitration conducted in the Philippines, a party may be presented by any person of
his choice. Provided, that such representative, unless admitted to the practice of law
(d) The parties may agree in the settlement agreement that the mediator in the Philippines, shall not be authorized to appear as counsel in any Philippine
court, or any other quasi-judicial body whether or not such appearance is in relation
shall become a sole arbitrator for the dispute and shall treat the settlement
to the arbitration in which he appears.
agreement as an arbitral award which shall be subject to enforcement under
Republic Act No. 876, otherwise known as the Arbitration Law,
notwithstanding the provisions of Executive Order No. 1008 for mediated SEC. 23. Confidential of Arbitration Proceedings. - The arbitration proceedings,
dispute outside of the CIAC. 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
CHAPTER 3 - OTHER ADR FORMS
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
SEC. 18. Referral of Dispute to other ADR Forms. - The parties may agree to refer prohibit disclosure of documents or information containing secret processes,
one or more or all issues arising in a dispute or during its pendency to other forms of developments, research and other information where it is shown that the applicant
ADR such as but not limited to (a) the evaluation of a third person or (b) a mini-trial, shall be materially prejudiced by an authorized disclosure thereof.
(c) mediation-arbitration, or a combination thereof.
SEC. 24. Referral to Arbitration. - A court before which an action is brought in a
For purposes of this Act, the use of other ADR forms shall be governed by Chapter 2 matter which is the subject matter of an arbitration agreement shall, if at least one
of this Act except where it is combined with arbitration in which case it shall party so requests not later that the pre-trial conference, or upon the request of both
likewise be governed by Chapter 5 of this Act.
parties thereafter, refer the parties to arbitration unless it finds that the arbitration (2) Such relief may be granted:
agreement is null and void, inoperative or incapable of being performed.
(i) to prevent irreparable loss or injury:
SEC. 25. Interpretation of the Act. - In interpreting the Act, the court shall have due
regard to the policy of the law in favor of arbitration. Where action is commenced by (ii) to provide security for the performance of any
or against multiple parties, one or more of whom are parties who are bound by the obligation;
arbitration agreement although the civil action may continue as to those who are not
bound by such arbitration agreement. (iii) to produce or preserve any evidence; or

SEC. 26. Meaning of "Appointing Authority.". - "Appointing Authority" as used in

(iv) to compel any other appropriate act or omission.
the Model Law shall mean the person or institution named in the arbitration
agreement as the appointing authority; or the regular arbitration arbitration institution
under whose rules the arbitration is agreed to be conducted. Where the parties have (3) The order granting provisional relief may be conditioned upon
agreed to submit their dispute to institutional arbitration rules, and unless they have the provision of security or any act or omission specified in the
agreed to a different procedure, they shall be deemed to have agreed to procedure order.
under such arbitration rules for the selection and appointment of arbitrators. In ad
hoc arbitration, the default appointment of an arbitrator shall be made by the (4) Interim or provisional relief is requested by written application
National President of the Integrated Bar of the Philippines (IBP) or his duly transmitted by reasonable means to the Court or arbitral tribunal as
authorized representative. the case may be and the party against whom the relief is sought,
describing in appropriate detail the precise relief, the party against
SEC. 27. What Functions May be Performed by Appointing Authority. - The whom the relief is requested, the grounds for the relief, and
functions referred to in Articles 11(3), 11(4), 13(3) and 14(1) of the Model Law shall evidence supporting the request.
be performed by the Appointing Authority, unless the latter shall fail or refuse to act
within thirty (30) days from receipt of the request in which case the applicant may (5) The order shall be binding upon the parties.
renew the application with the Court.
(6) Either party may apply with the Court for assistance in
SEC. 28. Grant of Interim Measure of Protection. - Implementing or enforcing an interim measure ordered by an
arbitral tribunal.
(a) It is not incompatible with an arbitration agreement for a party to
request, before constitution of the tribunal, from a Court an interim measure (7) A party who does not comply with the order shall be liable for
of protection and for the Court to grant such measure. After constitution of all damages resulting from noncompliance, including all expenses,
the arbitral tribunal and during arbitral proceedings, a request for an interim and reasonable attorney's fees, paid in obtaining the order's judicial
measure of protection or modification thereof, may be made with the enforcement.
arbitral tribunal or to the extent that the arbitral tribunal has no power to act
or is unable to act effectively, the request may be made with the Court. The SEC. 29. Further Authority for Arbitrator to Grant Interim Measure of Protection.
arbitral tribunal is deemed constituted when the sole arbitrator or the third - Unless otherwise agreed by the parties, the arbitral tribunal may, at the request of a
arbitrator who has been nominated, has accepted the nomination and written party, order any party to take such interim measures of protection as the arbitral
communication of said nomination and acceptance has been received by the tribunal may consider necessary in respect of the subject matter of the dispute
party making request. following the rules in Section 28, paragraph 2. Such interim measures may include
but shall not be limited to preliminary injuction directed against a party, appointment
(b) The following rules on interim or provisional relief shall be observed: of receivers or detention, preservation, inspection of property that is the subject of
the dispute in arbitration. Either party may apply with the Court for assistance in
(1) Any party may request that provision relief be granted against implementing or enforcing an interim measures ordered by an arbitral tribunal.
the adverse party:
SEC. 30. Place of Arbitration. - The parties are free to agree on the place of parties are project owner, contractor, subcontractor, quantity surveyor, bondsman or
arbitration. Failing such agreement, the place of arbitration shall be in Metro Manila, issuer of an insurance policy in a construction project.
unless the arbitral tribunal, having regard to the circumstances of the case, including
the convenience of the parties shall decide on a different place of arbitration. The Commission shall continue to exercise original and exclusive jurisdiction over
construction disputes although the arbitration is "commercial" pursuant to Section 21
The arbitral tribunal may, unless otherwise agreed by the parties, meet at any place it of this Act.
considers appropriate for consultation among its members, for hearing witnesses,
experts, or the parties, or for inspection of goods, other property or documents. SEC. 36. Authority to Act as Mediator or Arbitrator. - By written agreement of the
parties to a dispute, an arbitrator may act as mediator and a mediator may act as
SEC. 31. Language of the Arbitration. - The parties are free to agree on the arbitrator. The parties may also agree in writing that, following a successful
language or languages to be used in the arbitral proceedings. Failing such agreement, mediation, the mediator shall issue the settlement agreement in the form of an
the language to be used shall be English in international arbitration, and English or arbitral award.
Filipino for domestic arbitration, unless the arbitral tribunal shall determine a
different or another language or languages to be used in the proceedings. This SEC. 37. Appointment of Foreign Arbitrator. - The Construction Industry
agreement or determination, unless otherwise specified therein, shall apply to any Arbitration Commission (CIAC) shall promulgate rules to allow for the appointment
written statement by a party, any hearing and any award, decision or other of a foreign arbitrator or coarbitrator or chairman of a tribunal a person who has not
communication by the arbitral tribunal. been previously accredited by CIAC: Provided, That:

The arbitral tribunal may order that any documentary evidence shall be accompanied (a) the dispute is a construction dispute in which one party is an
by a translation into the language or languages agreed upon by the parties or international party
determined in accordance with paragraph 1 of this section.
(b) the person to be appointed agreed to abide by the arbitration rules and
CHAPTER 5 - DOMESTIC ARBITRATION policies of CIAC;

SEC. 32. Law Governing Domestic Arbitration. - Domestic arbitration shall (c) he/she is either coarbitrator upon the nomination of the international
continue to be governed by Republic Act No. 876, otherwise known as "The party; or he/she is the common choice of the two CIAC-accredited
Arbitration Law" as amended by this Chapter. The term "domestic arbitration" as arbitrators first appointed one of whom was nominated by the international
used herein shall mean an arbitration that is not international as defined in Article (3) party; and
of the Model Law.
(d) the foreign arbitrator shall be of different nationality from the
SEC. 33. Applicability to Domestic Arbitration. - Article 8, 10, 11, 12, 13, 14, 18 international party.
and 19 and 29 to 32 of the Model Law and Section 22 to 31 of the preceding Chapter
4 shall apply to domestic arbitration.
SEC. 38. Applicability to Construction Arbitration. - The provisions of Sections 17
(d) of Chapter 2, and Section 28 and 29 of this Act shall apply to arbitration of
CHAPTER 6 - ARBITRATION OF CONSTRUCTION DISPUTES construction disputes covered by this Chapter.

SEC. 34. Arbitration of Construction Disputes: Governing Law. - The arbitration SEC. 39. Court to Dismiss Case Involving a Construction Dispute. - A regional
of construction disputes shall be governed by Executive Order No. 1008, otherwise trial court which a construction dispute is filed shall, upon becoming aware, not later
known as the Constitution Industry Arbitration Law. than the pretrial conference, that the parties had entered into an arbitration to be
conducted by the CIAC, unless both parties, assisted by their respective counsel,
SEC. 35. Coverage of the Law. - Construction disputes which fall within the original shall submit to the regional trial court a written agreement exclusive for the Court,
and exclusive jurisdiction of the Construction Industry Arbitration Commission (the rather than the CIAC, to resolve the dispute.
"Commission") shall include those between or among parties to, or who are
otherwise bound by, an arbitration agreement, directly or by reference whether such CHAPTER 7 - JUDICIAL REVIEW OF ARBITRAL AWARDS
A. DOMESTIC AWARDS awards not covered by the New York Convention shall be done in accordance with
procedural rules to be promulgated by the Supreme Court. The Court may, grounds
SEC. 40. Confirmation of Award. - The confirmation of a domestic arbitral award of comity and reciprocity, recognize and enforce a nonconvention award as a
shall be governed by Section 23 of R.A. 876. convention award.

A domestic arbitral award when confirmed shall be enforced in the same manner as SEC. 44. Foreign Arbitral Award Not Foreign Judgment. - A foreign arbitral
final and executory decisions of the Regional Trial Court. award when confirmed by a court of a foreign country, shall be recognized and
enforced as a foreign arbitral award and not a judgment of a foreign court.
The confirmation of a domestic award shall be made by the regional trial court in
accordance with the Rules of Procedure to be promulgated by the Supreme Court. A foreign arbitral award, when confirmed by the regional trial court, shall be
enforced as a foreign arbitral award and not as a judgment of a foreign court.
A CIAC arbitral award need not be confirmed by the regional trial court to be
executory as provided under E.O. No. 1008. A foreign arbitral award, when confirmed by the regional trial court, shall be
enforced in the same manner as final and executory decisions of courts of law of the
Philippines.
SEC. 41. Vacation Award. - A party to a domestic arbitration may question the
arbitral award with the appropriate regional trial court in accordance with the rules of
procedure to be promulgated by the Supreme Court only on those grounds SEC. 45. Rejection of a Foreign Arbitral Award. - A party to a foreign arbitration
enumerated in Section 25 of Republic Act No. 876. Any other ground raised against proceeding may oppose an application for recognition and enforcement of the
a domestic arbitral award shall be disregarded by the regional trial court. arbitral award in accordance with the procedural rules to be promulgated by the
Supreme Court only on those grounds enumerated under Article V of the New York
Convention. Any other ground raised shall be disregarded by the regional trial court.
B. FOREIGN ARBITRAL AWARDS

SEC. 46. Appeal from Court Decisions on Arbitral Awards. - A decision of the
SEC. 42. Application of the New York Convention. - The New York Convention
regional trial court confirming, vacating, setting aside, modifying or correcting an
shall govern the recognition and enforcement of arbitral awards covered by the said
arbitral award may be appealed to the Court of Appeals in accordance with the rules
Convention.
of procedure to be promulgated by the Supreme Court.
The recognition and enforcement of such arbitral awards shall be filled with regional
The losing party who appeals from the judgment of the court confirming an arbitral
trial court in accordance with the rules of procedure to be promulgated by the
award shall required by the appealant court to post counterbond executed in favor of
Supreme Court. Said procedural rules shall provide that the party relying on the
the prevailing party equal to the amount of the award in accordance with the rules to
award or applying for its enforcement shall file with the court the original or
authenticated copy of the award and the arbitration agreement. If the award or be promulgated by the Supreme Court.
agreement is not made in any of the official languages, the party shall supply a duly
certified translation thereof into any of such languages. SEC. 47. Venue and Jurisdiction. - Proceedings for recognition and enforcement of
an arbitration agreement or for vacation, setting aside, correction or modification of
an arbitral award, and any application with a court for arbitration assistance and
The applicant shall establish that the country in which foreign arbitration award was
made is a party to the New York Convention. supervision shall be deemed as special proceedings and shall be filled with the
regional trial court (i) where arbitration proceedings are conducted; (ii) where the
asset to be attached or levied upon, or the act to be enjoined is located; (iii) where
If the application for rejection or suspension of enforcement of an award has been any of the parties to the dispute resides or has his place of business; or (iv) in the
made, the regional trial court may, if it considers it proper, vacate its decision and National Judicial Capital Region, at the option of the applicant.
may also, on the application of the party claiming recognition or enforcement of the
award, order the party to provide appropriate security.
SEC. 48. Notice of Proceeding to Parties. - In a special proceeding for recognition
and enforcement of an arbitral award, the Court shall send notice to the parties at
SEC. 43. Recognition and Enforcement of Foreign Arbitral Awards Not Covered their address of record in the arbitration, or if any party cannot be served notice at
by the New York Convention. - The recognition and enforcement of foreign arbitral
such address, at such party's last known address. The notice shall be sent at least formulate the appropriate rules and regulations necessary for the implementation of
fifteen (15) days before the date set for the initial hearing of the application. this Act. The committee, composed of representatives from:

CHAPTER 8 - MISCELLANEOUS PROVISIONS (a) the Department of Justice;

SEC. 49. Office for Alternative Dispute Resolution. - There is hereby established (b) the Department of Trade and Industry;
the Office for Alternative Dispute Resolution as an attached agency to the
Department of Justice (DOJ) which shall have a Secretariat to be headed by an (c) the Department of the Interior and Local Government;
executive director. The executive director shall be appointed by the President of the
Philippines.
(d) the president of the Integrated Bar of the Philippines;

The objective of the office are: (e) A representative from the arbitration profession; and

(a) to promote, develop and expand the use of ADR in the private and
(f) A representative from the mediation profession; and
public sectors; and
(g) A representative from the ADR organizations
To assist the government to monitor, study and evaluate the use by the public and the
private sector of ADR, and recommend to Congress needful statutory changes to
develop. Strengthen and improve ADR practices in accordance with world standards. shall within three (3) months after convening, submit the IRR to the Joint
Congressional Oversight Committee for review and approval. The Oversight
Committee shall be composed of the chairman of the Senate Committee on Justice
SEC. 50. Powers and Functions of the Office for Alternative Dispute Resolution. - and Human Rights, chairman of the House Committee on Justice, and one (1)
The Office for Alternative Dispute Resolution shall have the following powers and
member each from the majority and minority of both Houses.
functions:
The Joint Oversight Committee shall become functus officio upon approval of the
(a) To formulate standards for the training of the ADR practitioners and IRR.
service providers;
SEC. 53. Applicability of the Katarungan Pambarangay. - This Act shall not be
(b) To certify that such ADR practitioners and ADR service providers have
interpreted to repeal, amend or modify the jurisdiction of the Katarungan
undergone the professional training provided by the office;
Pambarangay under Republic Act No. 7160, otherwise known as the Local
Government Code of 1991.
(c) To coordinate the development, implementation, monitoring, and
evaluation of government ADR programs;
SEC. 54. Repealing Clause. - All laws, decrees, executive orders, rules and
regulations which are inconsistent with the provisions of this Act are hereby
(d) To charge fees for their services; and repealed, amended or modified accordingly.

(e) To perform such acts as may be necessary to carry into effect the SEC. 55. Separability Clause. - If for any reason or reasons, any portion or
provisions of this Act. provision of this Act shall be held unconstitutional or invalid, all other parts or
provisions not affected shall thereby continue to remain in full force and effect.
SEC. 51. Appropriations. - The amount necessary to carry out the provisions of this
Act shall be included in the General Appropriations Act of the year following its SEC. 56. Effectivity. - This act shall take effect fifteen days (15) after its publication
enactment into law and thereafter. in at least two (2) national newspapers of general circulation.

SEC. 52. Implementing Rules and Regulations (IRR). - Within one (1) month after Approved: April 2, 2004
the approval of this Act, the secretary of justice shall convene a committee that shall
GLORIA MACAPAGAL-ARROYO