But where a person capable of entering into

REPUBLIC ACT NO. 876 (THE a submission or contract has knowingly

ARBITRATION LAW) entered into the same with a person
incapable of so doing, the objection on the
AN ACT TO AUTHORIZE THE MAKING OF ground of incapacity can be taken only in
ARBITRATION AND SUBMISSION behalf of the person so incapacitated.
AGREEMENTS, TO PROVIDE FOR THE
APPOINTMENT OF ARBITRATORS AND Section 3. Controversies or cases not
THE PROCEDURE FOR ARBITRATION IN subject to the provisions of this Act. - This
CIVIL CONTROVERSIES, AND FOR Act shall not apply to controversies and to
OTHER PURPOSES cases which are subject to the jurisdiction of
the Court of Industrial Relations or which
Section 1. Short Title. - This Act shall be have been submitted to it as provided by
known as "The Arbitration Law." Commonwealth Act Numbered One
hundred and three, as amended.
Section 2. Persons and matters subject to
arbitration. - Two or more persons or parties Section 4. Form of arbitration agreement. -
may submit to the arbitration of one or more A contract to arbitrate a controversy
arbitrators any controversy existing between thereafter arising between the parties, as
them at the time of the submission and well as a submission to arbitrate an existing
which may be the subject of an action, or controversy shall be in writing and
the parties to any contract may in such subscribed by the party sought to be
contract agree to settle by arbitration a charged, or by his lawful agent.
controversy thereafter arising between
them. Such submission or contract shall be The making of a contract or submission for
valid, enforceable and irrevocable, save arbitration described in section two hereof,
upon such grounds as exist at law for the providing for arbitration of any controversy,
revocation of any contract. shall be deemed a consent of the parties to
the jurisdiction of the Court of First Instance
Such submission or contract may include of the province or city where any of the
question arising out of valuations, parties resides, to enforce such contract or
appraisals or other controversies which may submission.
be collateral, incidental, precedent or
subsequent to any issue between the Section 5. Preliminary procedure. - An
parties. arbitration shall be instituted by:

A controversy cannot be arbitrated where (a) In the case of a contract to arbitrate

one of the parties to the controversy is an future controversies by the service by either
infant, or a person judicially declared to be party upon the other of a demand for
incompetent, unless the appropriate court arbitration in accordance with the contract.
having jurisdiction approve a petition for Such demand shall be set forth the nature
permission to submit such controversy to of the controversy, the amount involved, if
arbitration made by the general guardian or any, and the relief sought, together with a
guardian ad litem of the infant or of the true copy of the contract providing for
incompetent. arbitration. The demand shall be served
upon any party either in person or by (d) In the event that one party neglects,
registered mail. In the event that the fails or refuses to arbitrate under a
contract between the parties provides for submission agreement, the aggrieved party
the appointment of a single arbitrator, the shall follow the procedure prescribed in
demand shall be set forth a specific time subparagraphs (a) and (b) of this section.
within which the parties shall agree upon
such arbitrator. If the contract between the Section 6. Hearing by court. - A party
parties provides for the appointment of three aggrieved by the failure, neglect or refusal
arbitrators, one to be selected by each of another to perform under an agreement
party, the demand shall name the arbitrator in writing providing for arbitration may
appointed by the party making the demand; petition the court for an order directing that
and shall require that the party upon whom such arbitration proceed in the manner
the demand is made shall within fifteen days provided for in such agreement. Five days
after receipt thereof advise in writing the notice in writing of the hearing of such
party making such demand of the name of application shall be served either personally
the person appointed by the second party; or by registered mail upon the party in
such notice shall require that the two default. The court shall hear the parties, and
arbitrators so appointed must agree upon upon being satisfied that the making of the
the third arbitrator within ten days from the agreement or such failure to comply
date of such notice. therewith is not in issue, shall make an
order directing the parties to proceed to
(b) In the event that one party defaults arbitration in accordance with the terms of
in answering the demand, the aggrieved the agreement. If the making of the
party may file with the Clerk of the Court of agreement or default be in issue the court
First Instance having jurisdiction over the shall proceed to summarily hear such issue.
parties, a copy of the demand for arbitration If the finding be that no agreement in writing
under the contract to arbitrate, with a notice providing for arbitration was made, or that
that the original demand was sent by there is no default in the proceeding
registered mail or delivered in person to the thereunder, the proceeding shall be
party against whom the claim is asserted. dismissed. If the finding be that a written
Such demand shall set forth the nature of provision for arbitration was made and there
the controversy, the amount involved, if any, is a default in proceeding thereunder, an
and the relief sought, and shall be order shall be made summarily directing the
accompanied by a true copy of the contract parties to proceed with the arbitration in
providing for arbitration. accordance with the terms thereof.

(c) In the case of the submission of an The court shall decide all motions, petitions
existing controversy by the filing with the or applications filed under the provisions of
Clerk of the Court of First Instance having this Act, within ten days after such motions,
jurisdiction, of the submission agreement, petitions, or applications have been heard
setting forth the nature of the controversy, by it.
and the amount involved, if any. Such
submission may be filed by any party and Section 7. Stay of civil action. - If any suit or
shall be duly executed by both parties. proceeding be brought upon an issue
arising out of an agreement providing for the
arbitration thereof, the court in which such (e) The court shall, in its discretion
suit or proceeding is pending, upon being appoint one or three arbitrators, according
satisfied that the issue involved in such suit to the importance of the controversy
or proceeding is referable to arbitration, involved in any of the preceding cases in
shall stay the action or proceeding until an which the agreement is silent as to the
arbitration has been had in accordance with number of arbitrators.
the terms of the agreement: Provided, That
the applicant, for the stay is not in default in (f) Arbitrators appointed under this
proceeding with such arbitration. section shall either accept or decline their
appointments within seven days of the
Section 8. Appointment of arbitrators. receipt of their appointments. In case of
- If, in the contract for arbitration or in the declination or the failure of an arbitrator or
submission described in section two, arbitrators to duly accept their appointments
provision is made for a method of naming or the parties or the court, as the case may be,
appointing an arbitrator or arbitrators, such shall proceed to appoint a substitute or
method shall be followed; but if no method substitutes for the arbitrator or arbitrators
be provided therein the Court of First who decline or failed to accept his or their
Instance shall designate an arbitrator or appointments.
arbitrators.
Section 9. Appointment of additional
The Court of First Instance shall appoint an arbitrators. - Where a submission or
arbitrator or arbitrators, as the case may be, contract provides that two or more
in the following instances: arbitrators therein designated or to be
thereafter appointed by the parties, may
(a) If the parties to the contract or select or appoint a person as an additional
submission are unable to agree upon a arbitrator, the selection or appointment must
single arbitrator; or be in writing. Such additional arbitrator must
sit with the original arbitrators upon the
(b) If an arbitrator appointed by the hearing.
parties is unwilling or unable to serve, and
his successor has not been appointed in the Section 10. Qualifications of arbitrators.
manner in which he was appointed; or - Any person appointed to serve as an
arbitrator must be of legal age, in
(c) If either party to the contract fails or full-enjoyment of his civil rights and know
refuses to name his arbitrator within fifteen how to read and write. No person appointed
days after receipt of the demand for to served as an arbitrator shall be related by
arbitration; or blood or marriage within the sixth degree to
either party to the controversy. No person
(d) If the arbitrators appointed by each
shall serve as an arbitrator in any
party to the contract, or appointed by one
proceeding if he has or has had financial,
party to the contract and by the proper
fiduciary or other interest in the controversy
Court, shall fail to agree upon or to select
or cause to be decided or in the result of the
the third arbitrator.
proceeding, or has any personal bias, which
might prejudice the right of any party to a
fair and impartial award.
No party shall select as an arbitrator any contract, if any are specified therein, are
person to act as his champion or to arbitrators selected as prescribed herein
advocate his cause. must, within five days after appointment if
the parties to the controversy reside within
If, after appointment but before or during the same city or province, or within fifteen
hearing, a person appointed to serve as an days after appointment if the parties reside
arbitrator shall discover any circumstances in different provinces, set a time and place
likely to create a presumption of bias, or for the hearing of the matters submitted to
which he believes might disqualify him as them, and must cause notice thereof to be
an impartial arbitrator, the arbitrator shall given to each of the parties. The hearing
immediately disclose such information to the can be postponed or adjourned by the
parties. Thereafter the parties may agree in arbitrators only by agreement of the parties;
writing: otherwise, adjournment may be ordered by
the arbitrators upon their own motion only at
(a) to waive the presumptive the hearing and for good and sufficient
disqualifying circumstances; or cause. No adjournment shall extend the
hearing beyond the day fixed in the
(b) to declare the office of such
submission or contract for rendering the
arbitrator vacant. Any such vacancy shall be
award, unless the time so fixed is extended
filled in the same manner as the original
by the written agreement of the parties to
appointment was made.
the submission or contract or their
Section 11. Challenge of arbitrators. - The attorneys, or unless the parties have
arbitrators may be challenged only for the continued with the arbitration without
reasons mentioned in the preceding section objection to such adjournment.
which may have arisen after the arbitration
The hearing may proceed in the absence of
agreement or were unknown at the time of
any party who, after due notice, fails to be
arbitration.
present at such hearing or fails to obtain an
The challenge shall be made before them. adjournment thereof. An award shall not be
made solely on the default of a party. The
If they do not yield to the challenge, the arbitrators shall require the other party to
challenging party may renew the challenge submit such evidence as they may require
before the Court of First Instance of the for making an award.
province or city in which the challenged
arbitrator, or, any of them, if there be more No one other than a party to said arbitration,
than one, resides. While the challenging or a person in the regular employ of such
incident is discussed before the court, the party duly authorized in writing by said
hearing or arbitration shall be suspended, party, or a practicing attorney-at-law, shall
and it shall be continued immediately after be permitted by the arbitrators to represent
the court has delivered an order on the before him or them any party to the
challenging incident. arbitration. Any party desiring to be
represented by counsel shall notify the other
Section 12. Procedure by arbitrators. - party or parties of such intention at least five
Subject to the terms of the submission or days prior to the hearing.
The arbitrators shall arrange for the taking required in the submission or contract to
of a stenographic record of the testimony arbitrate. The arbitrator or arbitrators shall
when such a record is requested by one or have the power at any time, before
more parties, and when payment of the cost rendering the award, without prejudice to
thereof is assumed by such party or parties. the rights of any party to petition the court to
take measures to safeguard and/or
Persons having a direct interest in the conserve any matter which is the subject of
controversy which is the subject of the dispute in arbitration.
arbitration shall have the right to attend any
hearing; but the attendance of any other Section 15. Hearing by arbitrators. -
person shall be at the discretion of the Arbitrators may, at the commencement of
arbitrators. the hearing, ask both parties for brief
statements of the issues in controversy
Section 13. Oath of arbitrators. - and/or an agreed statement of facts.
Before hearing any testimony, arbitrators Thereafter the parties may offer such
must be sworn, by any officer authorized by evidence as they desire, and shall produce
law to administer an oath, faithfully and such additional evidence as the arbitrators
fairly to hear and examine the matters in shall require or deem necessary to an
controversy and to make a just award understanding and determination of the
according to the best of their ability and dispute. The arbitrators shall be the sole
understanding. Arbitrators shall have the judge of the relevancy and materiality of the
power to administer the oaths to all evidence offered or produced, and shall not
witnesses requiring them to tell the whole be bound to conform to the Rules of Court
truth and nothing but the truth in any pertaining to evidence. Arbitrators shall
testimony which they may give in any receive as exhibits in evidence any
arbitration hearing. This oath shall be document which the parties may wish to
required of every witness before any of his submit and the exhibits shall be properly
testimony is heard. identified at the time of submission. All
exhibits shall remain in the custody of the
Section 14. Subpoena and subpoena Clerk of Court during the course of the
duces tecum. - Arbitrators shall have the arbitration and shall be returned to the
power to require any person to attend a parties at the time the award is made. The
hearing as a witness. They shall have the arbitrators may make an ocular inspection
power to subpoena witnesses and of any matter or premises which are in
documents when the relevancy of the dispute, but such inspection shall be made
testimony and the materiality thereof has only in the presence of all parties to the
been demonstrated to the arbitrators. arbitration, unless any party who shall have
Arbitrators may also require the retirement received notice thereof fails to appear, in
of any witness during the testimony of any which event such inspection shall be made
other witness. All of the arbitrators in the absence of such party.
appointed in any controversy must attend all
the hearings in that matter and hear all the Section 16. Briefs. - At the close of the
allegations and proofs of the parties; but an hearings, the arbitrators shall specifically
award by the majority of them is valid unless inquire of all parties whether they have any
the concurrence of all of them is expressly further proof or witnesses to present; upon
the receipt of a negative reply from all with any reply statements, the arbitrators
parties, the arbitrators shall declare the shall declare the proceedings in lieu of
hearing closed unless the parties have hearing closed.
signified an intention to file briefs. Then the
hearing shall be closed by the arbitrations Section 19. Time for rendering award.
after the receipt of briefs and/or reply briefs. - Unless the parties shall have stipulated by
Definite time limit for the filing of such briefs written agreement the time within which the
must be fixed by the arbitrators at the close arbitrators must render their award, the
of the hearing. Briefs may filed by the written award of the arbitrators shall be
parties within fifteen days after the close of rendered within thirty days after the closing
the oral hearings; the reply briefs, if any, of the hearings or if the oral hearings shall
shall be filed within five days following such have been waived, within thirty days after
fifteen-day period. the arbitrators shall have declared such
proceedings in lieu of hearing closed. This
Section 17. Reopening of hearing. - The period may be extended by mutual consent
hearing may be reopened by the arbitrators of the parties.alf-itc
on their own motion or upon the request of
any party, upon good cause, shown at any Section 20. Form and contents of award.
time before the award is rendered. When - The award must be made in writing and
hearings are thus reopened the effective signed and acknowledged by a majority of
date for the closing of the hearings shall be the arbitrators, if more than one; and by the
the date of the closing of the reopened sole arbitrator, if there is only one. Each
hearing. party shall be furnished with a copy of the
award. The arbitrators in their award may
Section 18. Proceeding in lieu of hearing. grant any remedy or relief which they deem
- The parties to a submission or contract to just and equitable and within the scope of
arbitrate may, by written agreement, submit the agreement of the parties, which shall
their dispute to arbitration by other than oral include, but not be limited to, the specific
hearing. The parties may submit an agreed performance of a contract.
statement of facts. They may also submit
their respective contentions to the duly In the event that the parties to an arbitration
appointed arbitrators in writing; this shall have, during the course of such arbitration,
include a statement of facts, together with settled their dispute, they may request of
all documentary proof. Parties may also the arbitrators that such settlement be
submit a written argument. Each party shall embodied in an award which shall be signed
provide all other parties to the dispute with a by the arbitrators. No arbitrator shall act as
copy of all statements and documents a mediator in any proceeding in which he is
submitted to the arbitrators. Each party shall acting as arbitrator; and all negotiations
have an opportunity to reply in writing to any towards settlement of the dispute must take
other party's statements and proofs; but if place without the presence of the
such party fails to do so within seven days arbitrators.
after receipt of such statements and proofs,
he shall be deemed to have waived his right The arbitrators shall have the power to
to reply. Upon the delivery to the arbitrators decide only those matters which have been
of all statements and documents, together
submitted to them. The terms of the award must make an order vacating the award
shall be confined to such disputes. upon the petition of any party to the
controversy when such party proves
The arbitrators shall have the power to affirmatively that in the arbitration
assess in their award the expenses of any proceedings:
party against another party, when such
assessment shall be deemed necessary. (a) The award was procured by
corruption, fraud, or other undue means; or
Section 21. Fees of arbitration. - The fees
of the arbitrators shall be fifty pesos per day (b) That there was evident partiality or
unless the parties agree otherwise in writing corruption in the arbitrators or any of them;
prior to the arbitration. or

Section 22. Arbitration deemed a special (c) That the arbitrators were guilty of
proceeding. - Arbitration under a contract or misconduct in refusing to postpone the
submission shall be deemed a special hearing upon sufficient cause shown, or in
proceeding, of which the court specified in refusing to hear evidence pertinent and
the contract or submission, or if none be material to the controversy; that one or
specified, the Court of First Instance for the more of the arbitrators was disqualified to
province or city in which one of the parties act as such under section nine hereof, and
resides or is doing business, or in which the wilfully refrained from disclosing such
arbitration was held, shall have jurisdiction. disqualifications or of any other misbehavior
Any application to the court, or a judge by which the rights of any party have been
thereof, hereunder shall be made in manner materially prejudiced; or
provided for the making and hearing of
motions, except as otherwise herein (d) That the arbitrators exceeded their
expressly provided. powers, or so imperfectly executed them,
that a mutual, final and definite award upon
Section 23. Confirmation of award. - At any the subject matter submitted to them was
time within one month after the award is not made.
made, any party to the controversy which
was arbitrated may apply to the court having Where an award is vacated, the court, in its
jurisdiction, as provided in section discretion, may direct a new hearing either
twenty-eight, for an order confirming the before the same arbitrators or before a new
award; and thereupon the court must grant arbitrator or arbitrators to be chosen in the
such order unless the award is vacated, manner provided in the submission or
modified or corrected, as prescribed herein. contract for the selection of the original
Notice of such motion must be served upon arbitrator or arbitrators, and any provision
the adverse party or his attorney as limiting the time in which the arbitrators may
prescribed by law for the service of such make a decision shall be deemed applicable
notice upon an attorney in action in the to the new arbitration and to commence
same court. from the date of the court's order.

Section 24. Grounds for vacating award. - Where the court vacates an award, costs,
In any one of the following cases, the court not exceeding fifty pesos and
disbursements may be awarded to the correcting an award, judgment may be
prevailing party and the payment thereof entered in conformity therewith in the court
may be enforced in like manner as the wherein said application was filed. Costs of
payment of costs upon the motion in an the application and the proceedings
action. subsequent thereto may be awarded by the
court in its discretion. If awarded, the
Section 25. Grounds for modifying or amount thereof must be included in the
correcting award. - In any one of the judgment.
following cases, the court must make an
order modifying or correcting the award, Section 28. Papers to accompany motion to
upon the application of any party to the confirm, modify, correct, or vacate award. -
controversy which was arbitrated: The party moving for an order confirming,
modifying, correcting, or vacating an award,
(a) Where there was an evident shall at the time that such motion is filed
miscalculation of figures, or an evident with the court for the entry of judgment
mistake in the description of any person, thereon also file the following papers with
thing or property referred to in the award; or the Clerk of Court;

(b) Where the arbitrators have awarded (a) The submission, or contract to
upon a matter not submitted to them, not arbitrate; the appointment of the arbitrator or
affecting the merits of the decision upon the arbitrators; and each written extension of
matter submitted; or the time, if any, within which to make the
award.
(c) Where the award is imperfect in a
matter of form not affecting the merits of the (b) A verified of the award.
controversy, and if it had been a
commissioner's report, the defect could (c) Each notice, affidavit, or other paper
have been amended or disregarded by the used upon the application to confirm,
court. modify, correct or vacate such award, and a
copy of each of the court upon such
The order may modify and correct the application.
award so as to effect the intent thereof and
promote justice between the parties. The judgment shall be docketed as if it were
rendered in an action.
Section 26. Motion to vacate, modify or
correct award: when made. - Notice of a The judgment so entered shall have the
motion to vacate, modify or correct the same force and effect in all respects, as,
award must be served upon the adverse and be subject to all the provisions relating
party or his counsel within thirty days after to, a judgment in an action; and it may be
award is filed or delivered, as prescribed by enforced as if it had been rendered in the
law for the service upon an attorney in an court in which it is entered.
action.
Section 29. Appeals. - An appeal may be
Section 27. Judgment. - Upon the granting taken from an order made in a proceeding
of an order confirming, modifying or under this Act, or from a judgment entered
upon an award through certiorari Republic of the Philippines
Congress of the Philippines
proceedings, but such appeals shall be Metro Manila
limited to questions of law. The proceedings
upon such an appeal, including the Twelfth Congress
Third Regular Session
judgment thereon shall be governed by the
Rules of Court in so far as they are Begun and held in Metro Manila, on Monday, the
applicable. twenty-eight day of July, two thousand three.

Section 30. Death of party. - Where a party

Republic Act No. 9285 I April 2, 2004
dies after making a submission or a contract
to arbitrate as prescribed in this Act, the AN ACT TO INSTITUTIONALIZE THE USE OF AN
proceedings may be begun or continued ALTERNATIVE DISPUTE RESOLUTION SYSTEM IN THE
PHILIPPINES AND TO ESTABLISH THE OFFICE FOR
upon the application of, or notice to, his
ALTERNATIVE DISPUTE RESOLUTION, AND FOR
executor or administrator, or temporary OTHER PURPOSES
administrator of his estate. In any such
Be it enacted by the Senate and House of Representatives
case, the court may issue an order
of the Philippines in Congress assembled:
extending the time within which notice of a
motion to confirm, vacate, modify or correct CHAPTER 1 - GENERAL PROVISIONS
an award must be served. Upon confirming
SECTION 1. Title. - This act shall be known as the
an award, where a party has died since it "Alternative Dispute Resolution Act of 2004."
was filed or delivered, the court must enter
judgment in the name of the original party; SEC. 2. Declaration of Policy. - it is hereby declared the
policy of the State to actively promote party autonomy in the
and the proceedings thereupon are the resolution of disputes or the freedom of the party to make
same as where a party dies after a verdict. their own arrangements to resolve their disputes. Towards
this end, the State shall encourage and actively promote the
use of Alternative Dispute Resolution (ADR) as an important
Section 31. Repealing clause. - The means to achieve speedy and impartial justice and declog
provisions of chapters one and two, Title court dockets. As such, the State shall provide means for the
XIV, of the Civil Code shall remain in force. use of ADR as an efficient tool and an alternative procedure
for the resolution of appropriate cases. Likewise, the State
All other laws and parts of laws inconsistent shall enlist active private sector participation in the
with this Act are hereby repealed. If any settlement of disputes through ADR. This Act shall be
without prejudice to the adoption by the Supreme Court of
provision of this Act shall be held invalid the
any ADR system, such as mediation, conciliation, arbitration,
remainder that shall not be affected thereby. or any combination thereof as a means of achieving speedy
and efficient means of resolving cases pending before all
Section 32. Effectivity. - This Act shall take courts in the Philippines which shall be governed by such
rules as the Supreme Court may approve from time to time.
effect six months after its approval.
SEC. 3. Definition of Terms. - For purposes of this Act, the
Approved: June 19, 1953 term:

(a) "Alternative Dispute Resolution System" means

any process or 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 assist in
the resolution of issues, which includes arbitration,
mediation, conciliation, early neutral evaluation,
mini-trial, or any combination thereof;
 (b) "ADR Provider" means institutions or persons (i) "Convention Award" means a foreign arbitral
accredited as mediator, conciliator, arbitrator, award made in a Convention State;
neutral evaluator, or any person exercising similar
functions in any Alternative Dispute Resolution (j) "Convention State" means a State that is a
system. This is without prejudice to the rights of member of the New York Convention;
the parties to choose nonaccredited individuals to
act as mediator, conciliator, arbitrator, or neutral (k) "Court" as referred to in Article 6 of the Model
evaluator of their dispute. Law shall mean a Regional Trial Court;

Whenever reffered to in this Act, the term "ADR

MCANE (l) "Court-Annexed Mediation" means any
practitioners" shall refer to individuals acting as mediation process conducted under the auspices - with the help and
mediator, conciliator, arbitrator or neutral of the court, after such court has acquired support of the
evaluator; jurisdiction of the dispute; court
(c) "Authenticate" means to sign, execute or adopt (m) "Court-Referred Mediation" means mediation
a symbol, or encrypt a record in whole or in part, ordered by a court to be conducted in accordance
intended to identity the authenticating party and to with the Agreement of the Parties when as action
adopt, accept or establish the authenticity of a is prematurely commenced in violation of such
record or term; agreement;

(d) "Arbitration" means a voluntary dispute (n) "Early Neutral Evaluation" means an ADR
resolution process in which one or more process wherein parties and their lawyers are
arbitrators, appointed in accordance with the brought together early in a pre-trial phase to
agreement of the parties, or rules promulgated present summaries of their cases and receive a
pursuant to this Act, resolve a dispute by rendering nonbinding assessment by an experienced,
an award; neutral person, with expertise in the subject in the
substance of the dispute;
(e) "Arbitrator" means the person appointed to
render an award, alone or with others, in a dispute (o) "Government Agency" means any government
that is the subject of an arbitration agreement; entity, office or officer, other than a court, that is
vested by law with quasi-judicial power to resolve
(f) "Award" means any partial or final decision by or adjudicate dispute involving the government, its
an arbitrator in resolving the issue in a agencies and instrumentalities, or private persons;
controversy;
(p) "International Party" shall mean an entity
(g) "Commercial Arbitration" An arbitration is whose place of business is outside the Philippines.
"commercial if it covers matter arising from all It shall not include a domestic subsidiary of such
relationships of a commercial nature, whether international party or a coventurer in a joint
contractual or not; venture with a party which has its place of
business in the Philippines.
(h) "Confidential information" means any
information, relative to the subject of mediation or The term foreigner arbitrator shall mean a person
arbitration, expressly intended by the source not to who is not a national of the Philippines.
be disclosed, or obtained under circumstances
that would create a reasonable expectation on (q) "Mediation" means a voluntary process in
behalf of the source that the information shall not which a mediator, selected by the disputing
be disclosed. It shall include (1) communication, parties, facilitates communication and negotiation,
oral or written, made in a dispute resolution and assist the parties in reaching a voluntary
proceedings, including any memoranda, notes or agreement regarding a dispute.
work product of the neutral party or non-party
participant, as defined in this Act; (2) an oral or
(r) "Mediator" means a person who conducts
written statement made or which occurs during
mediation;
mediation or for purposes of considering,
conducting, participating, initiating, continuing of
(s) "Mediation Party" means a person who
reconvening mediation or retaining a mediator;
participates in a mediation and whose consent is
and (3) pleadings, motions manifestations, witness
necessary to resolve the dispute;
statements, reports filed or submitted in an
arbitration or for expert evaluation;
 (t) "Mediation-Arbitration" or Med-Arb is a step SEC. 6. Exception to the Application of this Act. - The
dispute resolution process involving both provisions of this Act shall not apply to resolution or
mediation and arbitration; settlement of the following: (a) labor disputes covered by
Presidential Decree No. 442, otherwise known as the Labor
(u) "Mini-Trial" means a structured dispute Code of the Philippines, as amended and its Implementing
resolution method in which the merits of a case Rules and Regulations; (b) the civil status of persons; (c) the
are argued before a panel comprising senior validity of a marriage; (d) any ground for legal separation; (e)
decision makers with or without the presence of a the jurisdiction of courts; (f) future legitime; (g) criminal
neutral third person after which the parties seek a liability; and (h) those which by law cannot be compromised.
negotiated settlement;
CHAPTER 2 - MEDIATION
(v) "Model Law" means the Model Law on
International Commercial Arbitration adopted by SEC. 7. Scope. - The provisions of this Chapter shall cover
the United Nations Commission on International voluntary mediation, whether ad hoc or institutional, other
Trade Law on 21 June 1985; than court-annexed. The term "mediation' shall include
conciliation.
(w) "New York Convention" means the United
Nations Convention on the Recognition and SEC. 8. Application and Interpretation. - In applying
Enforcement of Foreign Arbitral Awards approved construing the provisions of this Chapter, consideration must
in 1958 and ratified by the Philippine Senate under be given to the need to promote candor or parties and
Senate Resolution No. 71; mediators through confidentiality of the mediation process,
the policy of fostering prompt, economical, and amicable
(x) "Non-Convention Award" means a foreign resolution of disputes in accordance with the principles of
arbitral award made in a State which is not a integrity of determination by the parties, and the policy that
Convention State; the decision-making authority in the mediation process rests
with the parties.
(y) "Non-Convention State" means a State that is
not a member of the New York Convention. SEC. 9. Confidentiality of Information. - Information
obtained through mediation proceedings shall be subject to
(z) "Non-Party Participant" means a person, other the following principles and guidelines:
than a party or mediator, who participates in a
mediation proceeding as a witness, resource (a) Information obtained through mediation shall
person or expert; be privileged and confidential.

(aa) "Proceeding" means a judicial, administrative, (b) A party, a mediator, or a nonparty participant
or other adjudicative process, including related may refuse to disclose and may prevent any other
pre-hearing motions, conferences and discovery; person from disclosing a mediation
communication.
(bb) "Record" means an information written on a
tangible medium or stored in an electronic or other (c) Confidential Information shall not be subject to
similar medium, retrievable form; and discovery and shall be inadmissible if any
adversarial proceeding, whether judicial or
(cc) "Roster" means a list of persons qualified to quasi-judicial, However, evidence or information
provide ADR services as neutrals or to serve as that is otherwise admissible or subject to discovery
arbitrators. does not become inadmissible or protected from
discovery solely by reason of its use in a
mediation.
SEC. 4. Electronic Signatures in Global and
E-Commerce Act. - The provisions of the Electronic
Signatures in Global and E-Commerce Act, and its (d) In such an adversarial proceeding, the
implementing Rules and Regulations shall apply to following persons involved or previously involved
proceeding contemplated in this Act. in a mediation may not be compelled to disclose
confidential information obtained during mediation:
(1) the parties to the dispute; (2) the mediator or
SEC. 5. Liability of ADR Provider and Practitioner. - The
mediators; (3) the counsel for the parties; (4) the
ADR providers and practitioners shall have the same civil
nonparty participants; (5) any persons hired or
liability for the Acts done in the performance of then duties
engaged in connection with the mediation as
as that of public officers as provided in Section 38 (1),
secretary, stenographer, clerk or assistant; and (6)
Chapter 9, Book of the Administrative Code of 1987.
any other person who obtains or possesses
confidential information by reason of his/her
Sec. 38. Liability of Superior Officers. profession.
(1) A public officer shall not be civilly liable for acts done in the performance of his official duties, unless there is a clear showing of bad faith, malice or gross negligence.chanrobles virtual law library
(2) Any public officer who, without just cause, neglects to perform a duty within a period fixed by law or regulation, or within a reasonable period if none is fixed, shall be liable for damages to the private party
concerned without prejudice to such other liability as may be prescribed by law.chanrobles virtual law library
(3) A head of a department or a superior officer shall not be civilly liable for the wrongful acts, omissions of duty, negligence, or misfeasance of his subordinates, unless he has actually authorized by written
order the specific act or misconduct complained of.
Sec. 39. Liability of Subordinate Officers.
No subordinate officer or employee shall be civilly liable for acts done by him in good faith in the performance of his duties. However, he shall be liable for willful or negligent acts done by him which are contrary
to law, morals, public policy and good customs even if he acted under orders or instructions of his superiors.
 (e) The protections of this Act shall continue to or exploitation in a proceeding in which
apply even of a mediator is found to have failed to a public agency is protecting the interest
act impartially. of an individual protected by law; but this
exception does not apply where a child
(f) a mediator may not be called to testify to protection matter is referred to mediation
provide information gathered in mediation. A by a court or a public agency
mediator who is wrongfully subpoenaed shall be participates in the child protection
reimbursed the full cost of his attorney's fees and mediation;
related expenses.
(6) sought or offered to prove or
SEC. 10. Waiver of Confidentiality. - A privilege arising disprove a claim or complaint of
from the confidentiality of information may be waived in a professional misconduct or malpractice
record, or orally during a proceeding by the mediator and the filed against mediator in a proceeding;
mediation parties. or

A privilege arising from the confidentiality of information may (7) sought or offered to prove or
likewise be waived by a nonparty participant if the disprove a claim of complaint of
information is provided by such nonparty participant. professional misconduct of malpractice
filed against a party, nonparty
A person who discloses confidential information shall be participant, or representative of a party
precluded from asserting the privilege under Section 9 of this based on conduct occurring during a
Chapter to bar disclosure of the rest of the information mediation.
necessary to a complete understanding of the previously
disclosed information. If a person suffers loss or damages in (b) There is no privilege under Section 9 if a court
a judicial proceeding against the person who made the or administrative agency, finds, after a hearing in
disclosure. camera, that the party seeking discovery of the
proponent of the evidence has shown that the
A person who discloses or makes a representation about a evidence is not otherwise available, that there is a
mediation is preclude from asserting the privilege under need for the evidence that substantially outweighs
Section 9, to the extent that the communication prejudices the interest in protecting confidentiality, and the
another person in the proceeding and it is necessary for the mediation communication is sought or offered in:
person prejudiced to respond to the representation of
disclosure. (1) a court proceeding involving a crime
or felony; or
SEC. 11. Exceptions to Privilege. -
(2) a proceeding to prove a claim or
(a) There is no privilege against disclosure under defense that under the law is sufficient
Section 9 if mediation communication is: to reform or avoid a liability on a contract
arising out of the mediation.
(1) in an agreement evidenced by a
record authenticated by all parties to the (c) A mediator may not be compelled to provide
agreement; evidence of a mediation communication or testify
in such proceeding.
(2) available to the public or that is made
during a session of a mediation which is (d) If a mediation communication is not privileged
open, or is required by law to be open, under an exception in subsection (a) or (b), only
to the public; the portion of the communication necessary for the
application of the exception for nondisclosure may
be admitted. The admission of particular evidence
(3) a threat or statement of a plan to
for the limited purpose of an exception does not
inflict bodily injury or commit a crime of
render that evidence, or any other mediation
violence;
communication, admissible for any other purpose.

(4) internationally used to plan a crime,

SEC. 12. Prohibited Mediator Reports. - A mediator may
attempt to commit, or commit a crime, or
not make a report, assessment, evaluation,
conceal an ongoing crime or criminal
recommendation, finding, or other communication regarding
activity;
a mediation to a court or agency or other authority that make
a ruling on a dispute that is the subject of a mediation,
(5) sought or offered to prove or
except:
disprove abuse, neglect, abandonment,
 (a) Where the mediation occurred or has administrative policies of such institution. Further, an
terminated, or where a settlement was reached. agreement to submit a dispute to mediation under
international mediation rule shall be deemed to include an
(b) As permitted to be disclosed under Section 13 agreement to have such rules govern the mediation of the
of this Chapter. dispute and for the mediator, the parties, their respective
counsel, and nonparty participants to abide by such rules.
SEC. 13. Mediator's Disclosure and Conflict of Interest. -
The mediation shall be guided by the following operative In case of conflict between the institutional mediation rules
principles: and the provisions of this Act, the latter shall prevail.

(a) Before accepting a mediation, an individual SEC. 17. Enforcement of Mediated Settlement
who is requested to serve as a mediator shall: Agreement. - The mediation shall be guided by the following
operative principles:
(1) make an inquiry that is reasonable
under the circumstances to determinate (a) A settlement agreement following successful
whether there are any known facts that mediation shall be prepared by the parties with the
a reasonable individual would consider assistance of their respective counsel, if any, and
likely to affect the impartiality of the by the mediator.
mediator, including a financial or
personal interest in the outcome of the The parties and their respective counsels shall
mediation and any existing or past endeavor to make the terms and condition thereof
relationship with a party or foreseeable complete and make adequate provisions for the
participant in the mediation; and contingency of breach to avoid conflicting
interpretations of the agreement.
(2) disclosure to the mediation parties
any such fact known or learned as soon (b) The parties and their respective counsels, if
as is practical before accepting a any, shall sign the settlement agreement. The
mediation. mediator shall certify that he/she explained the
contents of the settlement agreement to the
(b) If a mediation learns any fact described in parties in a language known to them.
paragraph (a) (1) of this section after accepting a
mediation, the mediator shall disclose it as soon (c) If the parties so desire, they may deposit such
as practicable. settlement agreement with the appropriate Clerk of
a Regional Trial Court of the place where one of
At the request of a mediation party, an individual who is the parties resides. Where there is a need to
requested to serve as mediator shall disclose his/her enforce the settlement agreement, a petition may
qualifications to mediate a dispute. be filed by any of the parties with the same court,
in which case, the court shall proceed summarily
This Act does not require that a mediator shall have special to hear the petition, in accordance with such rules
qualifications by background or profession unless the special of procedure as may be promulgated by the
qualifications of a mediator are required in the mediation Supreme Court.
agreement or by the mediation parties.
(d) The parties may agree in the settlement
SEC. 14. Participation in Mediation. - Except as otherwise agreement that the mediator shall become a sole
provided in this Act, a party may designate a lawyer or any arbitrator for the dispute and shall treat the
other person to provide assistance in the mediation. A lawyer settlement agreement as an arbitral award which
of this right shall be made in writing by the party waiving it. A shall be subject to enforcement under Republic
waiver of participation or legal representation may be Act No. 876, otherwise known as the Arbitration
rescinded at any time. Law, notwithstanding the provisions of Executive
Order No. 1008 for mediated dispute outside of the
CIAC.
SEC. 15. Place of Mediation. - The parties are free to agree
on the place of mediation. Failing such agreement, the place
of mediation shall be any place convenient and appropriate CHAPTER 3 - OTHER ADR FORMS
to all parties.
SEC. 18. Referral of Dispute to other ADR Forms. - The
SEC. 16. Effect of Agreement to Submit Dispute to parties may agree to refer one or more or all issues arising in
Mediation Under Institutional Rules. - An agreement to a dispute or during its pendency to other forms of ADR such
submit a dispute to mediation by any institution shall include as but not limited to (a) the evaluation of a third person or (b)
an agreement to be bound by the internal mediation and a mini-trial, (c) mediation-arbitration, or a combination
thereof.
For purposes of this Act, the use of other ADR forms shall be applicant shall be materially prejudiced by an authorized
governed by Chapter 2 of this Act except where it is disclosure thereof.
combined with arbitration in which case it shall likewise be
governed by Chapter 5 of this Act. SEC. 24. Referral to Arbitration. - A court before which an
action is brought in a matter which is the subject matter of an
CHAPTER 4 - INTERNATIONAL COMMERCIAL arbitration agreement shall, if at least one party so requests
ARBITRATION not later that the pre-trial conference, or upon the request of
both parties thereafter, refer the parties to arbitration unless
SEC. 19. Adoption of the Model Law on International it finds that the arbitration agreement is null and void,
Commercial Arbitration. - International commercial inoperative or incapable of being performed.
arbitration shall be governed by the Model Law on
International Commercial Arbitration (the "Model Law") SEC. 25. Interpretation of the Act. - In interpreting the Act,
adopted by the United Nations Commission on International the court shall have due regard to the policy of the law in
Trade Law on June 21, 1985 (United Nations Document favor of arbitration. Where action is commenced by or
A/40/17) and recommended approved on December 11, against multiple parties, one or more of whom are parties
1985, copy of which is hereto attached as Appendix "A". who are bound by the arbitration agreement although the
civil action may continue as to those who are not bound by
SEC. 20. Interpretation of Model Law. - In interpreting the such arbitration agreement.
Model Law, regard shall be had to its international origin and
to the need for uniformity in its interpretation and resort may SEC. 26. Meaning of "Appointing Authority.". -
be made to the travaux preparatories and the report of the "Appointing Authority" as used in the Model Law shall mean
Secretary General of the United Nations Commission on the person or institution named in the arbitration agreement
International Trade Law dated March 25, 1985 entitled, as the appointing authority; or the regular arbitration
"International Commercial Arbitration: Analytical arbitration institution under whose rules the arbitration is
Commentary on Draft Trade identified by reference number agreed to be conducted. Where the parties have agreed to
A/CN. 9/264." submit their dispute to institutional arbitration rules, and
unless they have agreed to a different procedure, they shall
SEC. 21. Commercial Arbitration. - An arbitration is be deemed to have agreed to procedure under such
"commercial" if it covers matters arising from all relationships arbitration rules for the selection and appointment of
of a commercial nature, whether contractual or not. arbitrators. In ad hoc arbitration, the default appointment of
Relationships of a transactions: any trade transaction for the an arbitrator shall be made by the National President of the
supply or exchange of goods or services; distribution Integrated Bar of the Philippines (IBP) or his duly authorized
agreements; construction of works; commercial representative.
representation or agency; factoring; leasing, consulting;
engineering; licensing; investment; financing; banking; SEC. 27. What Functions May be Performed by
insurance; joint venture and other forms of industrial or Appointing Authority. - The functions referred to in Articles
business cooperation; carriage of goods or passengers by 11(3), 11(4), 13(3) and 14(1) of the Model Law shall be
air, sea, rail or road. performed by the Appointing Authority, unless the latter shall
fail or refuse to act within thirty (30) days from receipt of the
SEC. 22. Legal Representation in International request in which case the applicant may renew the
Arbitration. - In international arbitration conducted in the application with the Court.
Philippines, a party may be presented by any person of his
choice. Provided, that such representative, unless admitted SEC. 28. Grant of Interim Measure of Protection. -
to the practice of law in the Philippines, shall not be
authorized to appear as counsel in any Philippine court, or (a) It is not incompatible with an arbitration
any other quasi-judicial body whether or not such agreement for a party to request, before
appearance is in relation to the arbitration in which he constitution of the tribunal, from a Court an interim
appears. measure of protection and for the Court to grant
such measure. After constitution of the arbitral
SEC. 23. Confidential of Arbitration Proceedings. - The tribunal and during arbitral proceedings, a request
arbitration proceedings, including the records, evidence and for an interim measure of protection or
the arbitral award, shall be considered confidential and shall modification thereof, may be made with the arbitral
not be published except (1) with the consent of the parties, tribunal or to the extent that the arbitral tribunal
or (2) for the limited purpose of disclosing to the court of has no power to act or is unable to act effectively,
relevant documents in cases where resort to the court is the request may be made with the Court. The
allowed herein. Provided, however, that the court in which arbitral tribunal is deemed constituted when the
the action or the appeal is pending may issue a protective sole arbitrator or the third arbitrator who has been
order to prevent or prohibit disclosure of documents or nominated, has accepted the nomination and
information containing secret processes, developments, written communication of said nomination and
research and other information where it is shown that the
 acceptance has been received by the party as the arbitral tribunal may consider necessary in respect of
making request. the subject matter of the dispute following the rules in
Section 28, paragraph 2. Such interim measures may
(b) The following rules on interim or provisional include but shall not be limited to preliminary injuction
relief shall be observed: directed against a party, appointment of receivers or
detention, preservation, inspection of property that is the
(1) Any party may request that provision subject of the dispute in arbitration. Either party may apply
relief be granted against the adverse with the Court for assistance in implementing or enforcing an
party: interim measures ordered by an arbitral tribunal.

(2) Such relief may be granted: SEC. 30. Place of Arbitration. - The parties are free to
agree on the place of arbitration. Failing such agreement, the
place of arbitration shall be in Metro Manila, unless the
(i) to prevent irreparable loss
arbitral tribunal, having regard to the circumstances of the
or injury:
case, including the convenience of the parties shall decide
on a different place of arbitration.
(ii) to provide security for the
performance of any obligation;
The arbitral tribunal may, unless otherwise agreed by the
parties, meet at any place it considers appropriate for
(iii) to produce or preserve
consultation among its members, for hearing witnesses,
any evidence; or
experts, or the parties, or for inspection of goods, other
property or documents.
(iv) to compel any other
appropriate act or omission.
SEC. 31. Language of the Arbitration. - The parties are
free to agree on the language or languages to be used in the
(3) The order granting provisional relief arbitral proceedings. Failing such agreement, the language
may be conditioned upon the provision to be used shall be English in international arbitration, and
of security or any act or omission English or Filipino for domestic arbitration, unless the arbitral
specified in the order. tribunal shall determine a different or another language or
languages to be used in the proceedings. This agreement or
(4) Interim or provisional relief is determination, unless otherwise specified therein, shall apply
requested by written application to any written statement by a party, any hearing and any
transmitted by reasonable means to the award, decision or other communication by the arbitral
Court or arbitral tribunal as the case tribunal.
may be and the party against whom the
relief is sought, describing in appropriate The arbitral tribunal may order that any documentary
detail the precise relief, the party against evidence shall be accompanied by a translation into the
whom the relief is requested, the language or languages agreed upon by the parties or
grounds for the relief, and evidence determined in accordance with paragraph 1 of this section.
supporting the request.
CHAPTER 5 - DOMESTIC ARBITRATION
(5) The order shall be binding upon the
parties.
SEC. 32. Law Governing Domestic Arbitration. - Domestic
arbitration shall continue to be governed by Republic Act No.
(6) Either party may apply with the Court 876, otherwise known as "The Arbitration Law" as amended
for assistance in Implementing or by this Chapter. The term "domestic arbitration" as used
enforcing an interim measure ordered by herein shall mean an arbitration that is not international as
an arbitral tribunal. defined in Article (3) of the Model Law.

(7) A party who does not comply with SEC. 33. Applicability to Domestic Arbitration. - Article 8,
the order shall be liable for all damages 10, 11, 12, 13, 14, 18 and 19 and 29 to 32 of the Model Law
resulting from noncompliance, including and Section 22 to 31 of the preceding Chapter 4 shall apply
all expenses, and reasonable attorney's to domestic arbitration.
fees, paid in obtaining the order's
judicial enforcement.
CHAPTER 6 - ARBITRATION OF CONSTRUCTION
DISPUTES
SEC. 29. Further Authority for Arbitrator to Grant Interim
Measure of Protection. - Unless otherwise agreed by the
SEC. 34. Arbitration of Construction Disputes:
parties, the arbitral tribunal may, at the request of a party,
Governing Law. - The arbitration of construction disputes
order any party to take such interim measures of protection
shall be governed by Executive Order No. 1008, otherwise CHAPTER 7 - JUDICIAL REVIEW OF ARBITRAL
known as the Constitution Industry Arbitration Law. AWARDS

SEC. 35. Coverage of the Law. - Construction disputes A. DOMESTIC AWARDS

which fall within the original and exclusive jurisdiction of the
Construction Industry Arbitration Commission (the SEC. 40. Confirmation of Award. - The confirmation of a
"Commission") shall include those between or among parties domestic arbitral award shall be governed by Section 23 of
to, or who are otherwise bound by, an arbitration agreement, R.A. 876.
directly or by reference whether such parties are project
owner, contractor, subcontractor, quantity surveyor, A domestic arbitral award when confirmed shall be enforced
bondsman or issuer of an insurance policy in a construction in the same manner as final and executory decisions of the
project. Regional Trial Court.

The Commission shall continue to exercise original and The confirmation of a domestic award shall be made by the
exclusive jurisdiction over construction disputes although the regional trial court in accordance with the Rules of Procedure
arbitration is "commercial" pursuant to Section 21 of this Act. to be promulgated by the Supreme Court.

SEC. 36. Authority to Act as Mediator or Arbitrator. - By A CIAC arbitral award need not be confirmed by the regional
written agreement of the parties to a dispute, an arbitrator trial court to be executory as provided under E.O. No. 1008.
may act as mediator and a mediator may act as arbitrator.
The parties may also agree in writing that, following a
SEC. 41. Vacation Award. - A party to a domestic
successful mediation, the mediator shall issue the settlement
arbitration may question the arbitral award with the
agreement in the form of an arbitral award.
appropriate regional trial court in accordance with the rules
of procedure to be promulgated by the Supreme Court only
SEC. 37. Appointment of Foreign Arbitrator. - The on those grounds enumerated in Section 25 of Republic Act
Construction Industry Arbitration Commission (CIAC) shall No. 876. Any other ground raised against a domestic arbitral
promulgate rules to allow for the appointment of a foreign award shall be disregarded by the regional trial court.
arbitrator or coarbitrator or chairman of a tribunal a person
who has not been previously accredited by CIAC: Provided,
B. FOREIGN ARBITRAL AWARDS
That:

SEC. 42. Application of the New York Convention. - The

(a) the dispute is a construction dispute in which
New York Convention shall govern the recognition and
one party is an international party
enforcement of arbitral awards covered by the said
Convention.
(b) the person to be appointed agreed to abide by
the arbitration rules and policies of CIAC;
The recognition and enforcement of such arbitral awards
shall be filled with regional trial court in accordance with the
(c) he/she is either coarbitrator upon the rules of procedure to be promulgated by the Supreme Court.
nomination of the international party; or he/she is Said procedural rules shall provide that the party relying on
the common choice of the two CIAC-accredited the award or applying for its enforcement shall file with the
arbitrators first appointed one of whom was court the original or authenticated copy of the award and the
nominated by the international party; and arbitration agreement. If the award or agreement is not made
in any of the official languages, the party shall supply a duly
(d) the foreign arbitrator shall be of different certified translation thereof into any of such languages.
nationality from the international party.
The applicant shall establish that the country in which foreign
SEC. 38. Applicability to Construction Arbitration. - The arbitration award was made is a party to the New York
provisions of Sections 17 (d) of Chapter 2, and Section 28 Convention.
and 29 of this Act shall apply to arbitration of construction
disputes covered by this Chapter. If the application for rejection or suspension of enforcement
of an award has been made, the regional trial court may, if it
SEC. 39. Court to Dismiss Case Involving a Construction considers it proper, vacate its decision and may also, on the
Dispute. - A regional trial court which a construction dispute application of the party claiming recognition or enforcement
is filed shall, upon becoming aware, not later than the pretrial of the award, order the party to provide appropriate security.
conference, that the parties had entered into an arbitration to
be conducted by the CIAC, unless both parties, assisted by SEC. 43. Recognition and Enforcement of Foreign
their respective counsel, shall submit to the regional trial Arbitral Awards Not Covered by the New York
court a written agreement exclusive for the Court, rather than Convention. - The recognition and enforcement of foreign
the CIAC, to resolve the dispute. arbitral awards not covered by the New York Convention
shall be done in accordance with procedural rules to be CHAPTER 8 - MISCELLANEOUS PROVISIONS
promulgated by the Supreme Court. The Court may, grounds
of comity and reciprocity, recognize and enforce a SEC. 49. Office for Alternative Dispute Resolution. -
nonconvention award as a convention award. There is hereby established the Office for Alternative Dispute
Resolution as an attached agency to the Department of
SEC. 44. Foreign Arbitral Award Not Foreign Judgment. - Justice (DOJ) which shall have a Secretariat to be headed
A foreign arbitral award when confirmed by a court of a by an executive director. The executive director shall be
foreign country, shall be recognized and enforced as a appointed by the President of the Philippines.
foreign arbitral award and not a judgment of a foreign court.
The objective of the office are:
A foreign arbitral award, when confirmed by the regional trial
court, shall be enforced as a foreign arbitral award and not (a) to promote, develop and expand the use of
as a judgment of a foreign court. ADR in the private and public sectors; and

A foreign arbitral award, when confirmed by the regional trial To assist the government to monitor, study and evaluate the
court, shall be enforced in the same manner as final and use by the public and the private sector of ADR, and
executory decisions of courts of law of the Philippines. recommend to Congress needful statutory changes to
develop. Strengthen and improve ADR practices in
SEC. 45. Rejection of a Foreign Arbitral Award. - A party accordance with world standards.
to a foreign arbitration proceeding may oppose an
application for recognition and enforcement of the arbitral SEC. 50. Powers and Functions of the Office for
award in accordance with the procedural rules to be Alternative Dispute Resolution. - The Office for Alternative
promulgated by the Supreme Court only on those grounds Dispute Resolution shall have the following powers and
enumerated under Article V of the New York Convention. functions:
Any other ground raised shall be disregarded by the regional
trial court. (a) To formulate standards for the training of the
ADR practitioners and service providers;
SEC. 46. Appeal from Court Decisions on Arbitral
Awards. - A decision of the regional trial court confirming, (b) To certify that such ADR practitioners and ADR
vacating, setting aside, modifying or correcting an arbitral service providers have undergone the professional
award may be appealed to the Court of Appeals in training provided by the office;
accordance with the rules of procedure to be promulgated by
the Supreme Court.
(c) To coordinate the development,
implementation, monitoring, and evaluation of
The losing party who appeals from the judgment of the court government ADR programs;
confirming an arbitral award shall required by the appealant
court to post counterbond executed in favor of the prevailing
(d) To charge fees for their services; and
party equal to the amount of the award in accordance with
the rules to be promulgated by the Supreme Court.
(e) To perform such acts as may be necessary to
carry into effect the provisions of this Act.
SEC. 47. Venue and Jurisdiction. - Proceedings for
recognition and enforcement of an arbitration agreement or
SEC. 51. Appropriations. - The amount necessary to carry
for vacation, setting aside, correction or modification of an
out the provisions of this Act shall be included in the General
arbitral award, and any application with a court for arbitration
Appropriations Act of the year following its enactment into
assistance and supervision shall be deemed as special
law and thereafter.
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 SEC. 52. Implementing Rules and Regulations (IRR). -
is located; (iii) where any of the parties to the dispute resides Within one (1) month after the approval of this Act, the
or has his place of business; or (iv) in the National Judicial secretary of justice shall convene a committee that shall
Capital Region, at the option of the applicant. formulate the appropriate rules and regulations necessary for
the implementation of this Act. The committee, composed of
representatives from:
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 their (a) the Department of Justice;
address of record in the arbitration, or if any party cannot be
served notice at such address, at such party's last known (b) the Department of Trade and Industry;
address. The notice shall be sent at least fifteen (15) days
before the date set for the initial hearing of the application. (c) the Department of the Interior and Local
Government;
 (d) the president of the Integrated Bar of the
Philippines; OSCAR G. YABES ROBERTO P. NAZARENO
Secretary of Senate Secretary General
(e) A representative from the arbitration House of Represenatives
profession; and

Approved: April 2, 2004

(f) A representative from the mediation profession;
and
GLORIA MACAPAGAL-ARROYO
President of the Philippines
(g) A representative from the ADR organizations

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 and
Human Rights, chairman of the House Committee on
Justice, and one (1) member each from the majority and
minority of both Houses.

The Joint Oversight Committee shall become functus officio

upon approval of the IRR.

SEC. 53. Applicability of the Katarungan Pambarangay. -

This Act shall not be interpreted to repeal, amend or modify
the jurisdiction of the Katarungan Pambarangay under
Republic Act No. 7160, otherwise known as the Local
Government Code of 1991.

SEC. 54. Repealing Clause. - All laws, decrees, executive

orders, rules and regulations which are inconsistent with the
provisions of this Act are hereby repealed, amended or
modified accordingly.

SEC. 55. Separability Clause. - If for any reason or

reasons, any portion or 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. 56. Effectivity. - This act shall take effect fifteen days
(15) after its publication in at least two (2) national
newspapers of general circulation.

Approved,

FRANKLIN DRILON JOSE DE VENECIA JR.

President of the Senate Speaker of the House of
Representatives

This Act which is a consolidation of Senate Bill No. 2671 and

House Bill No. 5654 was finally passed by the Senate and
the House of Representatives on February 4, 2004.
A.M. No. 07-11-08-SC
(Sgd.) CONCHITA (Sgd.) MINITA V.
EN BANC CARPIO MORALES CHICO-NAZARIO
Associate Justice Associate Justice
[ A.M. No. 07-11-08-SC, September
01, 2009 ]

SPECIAL RULES OF COURT ON

(Sgd.) PRESBITERO (Sgd.) ANTONIO
ALTERNATIVE DISPUTE RESOLUTION J. VELASCO, JR. EDUARDO B.
Associate Justice NACHURA
SPECIAL RULES OF COURT ON Associate Justice
ALTERNATIVE DISPUTE RESOLUTION

(Sgd.) TERESITA J. (Sgd.) ARTURO D.

Acting on the recommendation of the LEONARDO-DE BRION
Chairperson of the Sub-Committee on CASTRO Associate Justice
Associate Justice
the Rules on Alternative Dispute
Resolution submitting for this Court’s
consideration and approval the
proposed Special Rules of Court on (Sgd.) DIOSDADO (Sgd.) LUCAS P.
M. PERALTA BERSAMIN
Alternative Dispute Resolution, the Associate Justice Associate Justice
Court Resolved to APPROVE the
same.

This Rule shall take effect on October

(Sgd.) MARIANO C. (Sgd.) ROBERTO A.
30, 2009 following its publication in DEL CASTILLO ABAD
three (3) newspapers of general Associate Justice Associate Justice
circulation.

September 1, 2009.

SPECIAL RULES OF COURT ON ALTERNATIVE

DISPUTE RESOLUTION

PART I
(Sgd.) REYNATO S. PUNO
Chief Justice
GENERAL PROVISIONS AND
POLICIES
(Sgd.) LEONARDO (Sgd.) CONSUELO
A. QUISUMBING YNARES-SANTIAGO
RULE 1: GENERAL
Associate Justice Associate Justice PROVISIONS

Rule 1.1. Subject matter and

(Sgd.) ANTONIO T. (Sgd.) RENATO C. governing rules.-The Special Rules of
CARPIO CORONA Court on Alternative Dispute
Associate Justice Associate Justice
Resolution (the "Special ADR Rules")
shall apply to and govern the following
cases:
a. Relief on the issue
of Existence, Validity, Rule 1.2. Nature of the
or Enforceability of the proceedings.-All proceedings under the
Arbitration Agreement; Special ADR Rules are special
proceedings.
b. Referral to
Alternative Dispute Rule 1.3. Summary proceedings in
Resolution ("ADR"); certain cases.-The proceedings in the
following instances are summary in
c. Interim Measures nature and shall be governed by this
of Protection; provision:

d. Appointment of a. Judicial Relief

Arbitrator; Involving the Issue of
Existence, Validity or
e. Challenge to Enforceability of the
Appointment of Arbitration Agreement;
Arbitrator;
b. Referral to ADR;
f. Termination of
Mandate of Arbitrator; c. Interim Measures
of Protection;
g. Assistance in Taking
Evidence; d. Appointment of
Arbitrator;
h. Confirmation,
Correction or Vacation e. Challenge to
of Award in Domestic Appointment of
Arbitration; Arbitrator;

i. Recognition and f. Termination of

Enforcement or Setting Mandate of Arbitrator;
Aside of an Award in
International g. Assistance in Taking
Commercial Evidence;
Arbitration;
h.
j. Recognition and Confidentiality/Protecti
Enforcement of a ve Orders; and
Foreign Arbitral Award;
i. Deposit and
k. Enforcement of
Confidentiality/Protecti Mediated Settlement
ve Orders; and Agreements.

l. Deposit and (A) Service and filing of petition in

Enforcement of summary proceedings.-The petitioner
Mediated Settlement shall serve, either by personal service
Agreements. or courier, a copy of the petition upon
the respondent before the filing
thereof. Proof of service shall be Except in cases involving Referral to
attached to the petition filed in court. ADR or Confidentiality/Protective
Orders made through motions, it shall
For personal service, proof of service be the court that sets the petition for
of the petition consists of the affidavit hearing within five (5) days from the
of the person who effected service, lapse of the period for filing the
stating the time, place and manner of opposition or comment.
the service on the respondent. For
service by courier, proof of service (D) Resolution. - The court shall
consists of the signed courier proof of resolve the matter within a period of
delivery. If service is refused or has thirty (30) days from the day of the
failed, the affidavit or delivery receipt hearing.
must state the circumstances of the
attempted service and refusal or Rule 1.4. Verification and
failure thereof. submissions. -Any pleading, motion,
opposition, comment, defense or claim
(B) Notice.-Except for cases involving filed under the Special ADR Rules by
Referral to ADR and the proper party shall be supported by
Confidentiality/Protective Orders made verified statements that the affiant
through motions, the court shall, if it has read the same and that the factual
finds the petition sufficient in form and allegations therein are true and
substance, send notice to the parties correct of his own personal knowledge
directing them to appear at a or based on authentic records and
particular time and date for the shall contain as annexes the
hearing thereof which shall be set no supporting documents.
later than five (5) days from the lapse
of the period for filing the opposition The annexes to the pleading, motion,
or comment. The notice to the opposition, comment, defense or claim
respondent shall contain a statement filed by the proper party may include
allowing him to file a comment or a legal brief, duly verified by the
opposition to the petition within fifteen lawyer submitting it, stating the
(15) days from receipt of the notice. pertinent facts, the applicable law and
jurisprudence to justify the necessity
The motion filed pursuant to the rules for the court to rule upon the issue
on Referral to ADR or raised.
Confidentiality/Protective Orders shall
be set for hearing by the movant and Rule 1.5. Certification Against Forum
contain a notice of hearing that Shopping. - A Certification Against
complies with the requirements under Forum Shopping is one made under
Rule 15 of the Rules of Court on oath made by the petitioner or
motions. movant: (a) that he has not
theretofore commenced any action or
(C) Summary hearing. - In all cases, filed any claim involving the same
as far as practicable, the summary issues in any court, tribunal or
hearing shall be conducted in one (1) quasi-judicial agency and, to the best
day and only for purposes of clarifying of his knowledge, no such other action
facts. or claim is pending therein; (b) if
there is such other pending action or h. Any other pleading
claim, a complete statement of the specifically disallowed
present status thereof; and (c) if he under any provision of
should thereafter learn that the same the Special ADR Rules.
or similar action or claim has been
filed or is pending, he shall report that
fact within five (5) days therefrom to The court shall motu proprio order a
the court wherein his aforementioned pleading/motion that it has
petition or motion has been filed. determined to be dilatory in nature be
expunged from the records.
A Certification Against Forum
Shopping shall be appended to all Rule 1.7. Computation of time. - In
initiatory pleadings except a Motion to computing any period of time
Refer the Dispute to Alternative prescribed or allowed by the Special
Dispute Resolution. ADR Rules, or by order of the court, or
by any applicable statute, the day of
Rule 1.6. Prohibited submissions. - the act or event from which the
The following pleadings, motions, or designated period of time begins to
petitions shall not be allowed in the run is to be excluded and the date of
cases governed by the Special ADR performance included. If the last day
Rules and shall not be accepted for of the period, as thus computed, falls
filing by the Clerk of Court: on a Saturday, a Sunday, or a legal
holiday in the place where the court
sits, the time shall not run until the
a. Motion to dismiss; next working day.

b. Motion for bill of Should an act be done which

particulars; effectively interrupts the running of
the period, the allowable period after
c. Motion for new trial such interruption shall start to run on
or for reopening of the day after notice of the cessation of
trial; the cause thereof.

d. Petition for relief The day of the act that caused the
from judgment; interruption shall be excluded from the
computation of the period.
e. Motion for
extension, except in Rule 1.8. Service and filing of
cases where an pleadings, motions and other papers
ex-parte temporary in non-summary proceedings. - The
order of protection has initiatory pleadings shall be filed
been issued; directly with the court. The court will
then cause the initiatory pleading to
f. Rejoinder to reply;
be served upon the respondent by
g. Motion to declare a personal service or courier. Where an
party in default; and action is already pending, pleadings,
motions and other papers shall be
filed and/or served by the concerned
party by personal service or courier. covered by the Special ADR Rules, a
Where courier services are not court acquires authority to act on the
available, resort to registered mail is petition or motion upon proof of
allowed. jurisdictional facts, i.e., that the
respondent was furnished a copy of
(A) Proof of filing. - The filing of a the petition and the notice of hearing.
pleading shall be proved by its
existence in the record of the case. If (A) Proof of service. - A proof of
it is not in the record, but is claimed service of the petition and notice of
to have been filed personally, the filing hearing upon respondent shall be
shall be proved by the written or made in writing by the server and
stamped acknowledgment of its filing shall set forth the manner, place and
by the clerk of court on a copy of the date of service.
same; if filed by courier, by the proof
of delivery from the courier company. (B) Burden of proof. - The burden of
showing that a copy of the petition
(B) Proof of service. - Proof of and the notice of hearing were served
personal service shall consist of a on the respondent rests on the
written admission by the party served, petitioner.
or the official return of the server, or
the affidavit of the party serving, The technical rules on service of
containing a full statement of the summons do not apply to the
date, place and manner of service. If proceedings under the Special ADR
the service is by courier, proof thereof Rules. In instances where the
shall consist of an affidavit of the respondent, whether a natural or a
proper person, stating facts showing juridical person, was not personally
that the document was deposited with served with a copy of the petition and
the courier company in a sealed notice of hearing in the proceedings
envelope, plainly addressed to the contemplated in the first paragraph of
party at his office, if known, otherwise Rule 1.3 (B), or the motion in
at his residence, with postage fully proceedings contemplated in the
pre-paid, and with instructions to the second paragraph of Rule 1.3 (B), the
courier to immediately provide proof method of service resorted to must be
of delivery. such as to reasonably ensure receipt
thereof by the respondent to satisfy
(C) Filing and service by electronic the requirement of due process.
means and proof thereof. - Filing and
service of pleadings by electronic Rule 1.10. Contents of
transmission may be allowed by petition/motion. - The initiatory
agreement of the parties approved by pleading in the form of a verified
the court. If the filing or service of a petition or motion, in the appropriate
pleading or motion was done by case where court proceedings have
electronic transmission, proof of filing already commenced, shall include the
and service shall be made in names of the parties, their addresses,
accordance with the Rules on the necessary allegations supporting
Electronic Evidence. the petition and the relief(s) sought.

Rule 1.9. No summons. - In cases Rule 1.11. Definition. - The following

terms shall have the following intended to identify the
meanings: authenticating party
and to adopt, accept or
a. "ADR Laws" refers establish the
to the whole body of authenticity of a record
ADR laws in the or term.
Philippines.
d. "Foreign Arbitral
b. "Appointing Award" is one made in
Authority" shall mean a country other than
the person or the Philippines.
institution named in
the arbitration e. "Legal Brief" is a
agreement as the written legal argument
appointing authority; submitted to a court,
or the regular outlining the facts
arbitration institution derived from the
under whose rule the factual statements in
arbitration is agreed to the witness’s
be conducted. Where statements of fact and
the parties have citing the legal
agreed to submit their authorities relied upon
dispute to institutional by a party in a case
arbitration rules, and submitted in
unless they have connection with
agreed to a different petitions,
procedure, they shall counter-petitions (i.e.,
be deemed to have petitions to vacate or
agreed to procedure to set aside and/or to
under such arbitration correct/modify in
rules for the selection opposition to petitions
and appointment of to confirm or to
arbitrators. In ad hoc recognize and enforce,
arbitration, the default or petitions to confirm
appointment of or to recognize and
arbitrators shall be enforce in opposition to
made by the National petitions to vacate or
President of the set aside and/or
Integrated Bar of the correct/modify),
Philippines or his duly motions, evidentiary
authorized issues and other
representative. matters that arise
during the course of a
c. "Authenticate" case. The legal brief
means to sign, execute shall state the
or use a symbol, or applicable law and the
encrypt a record in relevant jurisprudence
whole or in part, and the legal
 arguments in support Rule 1.13. Spirit and intent of the
of a party’s position in Special ADR Rules. – In situations
the case. where no specific rule is provided
under the Special ADR Rules, the court
f. "Verification" shall shall resolve such matter summarily
mean a certification and be guided by the spirit and intent
under oath by a party of the Special ADR Rules and the ADR
or a person who has Laws.
authority to act for a
party that he has read RULE 2: STATEMENT OF
the pleading/motion, POLICIES
and that he certifies to
the truth of the facts
stated therein on the Rule 2.1. General policies. - It is the
basis of his own policy of the State to actively promote
personal knowledge or the use of various modes of ADR and
authentic documents in to respect party autonomy or the
his possession. When freedom of the parties to make their
made by a lawyer, own arrangements in the resolution of
verification shall mean disputes with the greatest cooperation
a statement under oath of and the least intervention from the
by a lawyer signing a courts. To this end, the objectives of
pleading/motion for the Special ADR Rules are to
delivery to the Court or encourage and promote the use of
to the parties that he ADR, particularly arbitration and
personally prepared mediation, as an important means to
the pleading/motion, achieve speedy and efficient resolution
that there is sufficient of disputes, impartial justice, curb a
factual basis for the litigious culture and to de-clog court
statements of fact dockets.
stated therein, that
there is sufficient basis The court shall exercise the power of
in the facts and the law judicial review as provided by these
to support the prayer Special ADR Rules. Courts shall
for relief therein, and intervene only in the cases allowed by
that the law or these Special ADR Rules.
pleading/motion is filed
in good faith and is not Rule 2.2. Policy on arbitration.- (A)
interposed for delay. Where the parties have agreed to
submit their dispute to arbitration,
courts shall refer the parties to
Rule 1.12. Applicability of Part II on arbitration pursuant to Republic Act
Specific Court Relief. - Part II of the No. 9285 bearing in mind that such
Special ADR Rules on Specific Court arbitration agreement is the law
Relief, insofar as it refers to between the parties and that they are
arbitration, shall also be applicable to expected to abide by it in good faith.
other forms of ADR. Further, the courts shall not refuse to
refer parties to arbitration for reasons
including, but not limited to, the a. Prior to the
following: constitution of the
arbitral tribunal, the
court finds that the
a. The referral tends to principal action is the
oust a court of its subject of an
jurisdiction; arbitration agreement;
or
b. The court is in a
better position to b. The principal action
resolve the dispute is already pending
subject of arbitration; before an arbitral
tribunal.
c. The referral would
result in multiplicity of The Special ADR Rules recognize the
suits; principle of competence-competence,
which means that the arbitral tribunal
d. The arbitration may initially rule on its own
proceeding has not jurisdiction, including any objections
commenced; with respect to the existence or
validity of the arbitration agreement or
e. The place of any condition precedent to the filing of
arbitration is in a a request for arbitration.
foreign country;
The Special ADR Rules recognize the
f. One or more of the principle of separability of the
issues are legal and arbitration clause, which means that
one or more of the said clause shall be treated as an
arbitrators are not agreement independent of the other
lawyers; terms of the contract of which it forms
part. A decision that the contract is
g. One or more of the
null and void shall not entail ipso jure
arbitrators are not
the invalidity of the arbitration clause.
Philippine nationals; or

h. One or more of the Rule 2.3. Rules governing arbitral

arbitrators are alleged proceedings. - The parties are free to
not to possess the agree on the procedure to be followed
required qualification in the conduct of arbitral proceedings.
under the arbitration Failing such agreement, the arbitral
agreement or law. tribunal may conduct arbitration in the
manner it considers appropriate.
(B) Where court intervention is
allowed under ADR Laws or the Rule 2.4. Policy implementing
Special ADR Rules, courts shall not competence-competence principle. -
refuse to grant relief, as provided The arbitral tribunal shall be accorded
herein, for any of the following the first opportunity or competence to
reasons: rule on the issue of whether or not it
has the competence or jurisdiction to
decide a dispute submitted to it for settled through Court-Annexed
decision, including any objection with Mediation.
respect to the existence or validity of
the arbitration agreement. When a Rule 2.6. Policy on
court is asked to rule upon issue/s Arbitration-Mediation or
affecting the competence or Mediation-Arbitration. - No arbitrator
jurisdiction of an arbitral tribunal in a shall act as a mediator in any
dispute brought before it, either proceeding in which he is acting as
before or after the arbitral tribunal is arbitrator; and all negotiations
constituted, the court must exercise towards settlement of the dispute
judicial restraint and defer to the must take place without the presence
competence or jurisdiction of the of that arbitrator. Conversely, no
arbitral tribunal by allowing the mediator shall act as arbitrator in any
arbitral tribunal the first opportunity to proceeding in which he acted as
rule upon such issues. mediator.

Where the court is asked to make a Rule 2.7. Conversion of a settlement

determination of whether the agreement to an arbitral award. -
arbitration agreement is null and void, Where the parties to mediation have
inoperative or incapable of being agreed in the written settlement
performed, under this policy of judicial agreement that the mediator shall
restraint, the court must make no become the sole arbitrator for the
more than a prima facie determination dispute or that the settlement
of that issue. agreement shall become an arbitral
award, the sole arbitrator shall issue
Unless the court, pursuant to such the settlement agreement as an
prima facie determination, concludes arbitral award, which shall be subject
that the arbitration agreement is null to enforcement under the law.
and void, inoperative or incapable of
being performed, the court must PART II
suspend the action before it and refer
the parties to arbitration pursuant to SPECIFIC COURT RELIEF
the arbitration agreement.
RULE 3: JUDICIAL RELIEF
Rule 2.5.Policy on mediation. - The INVOLVING THE ISSUE OF
Special ADR Rules do not apply to EXISTENCE, VALIDITY AND
Court-Annexed Mediation, which shall ENFORCEABILITY OF THE
be governed by issuances of the ARBITRATION AGREEMENT
Supreme Court.

Where the parties have agreed to Rule 3.1. When judicial relief is
submit their dispute to mediation, a available. - The judicial relief provided
court before which that dispute was in Rule 3, whether resorted to before
brought shall suspend the proceedings or after commencement of arbitration,
and direct the parties to submit their shall apply only when the place of
dispute to private mediation. If the arbitration is in the Philippines.
parties subsequently agree, however,
they may opt to have their dispute
 A. Judicial Relief before a. The facts showing
Commencement of Arbitration that the persons
named as petitioner or
respondent have legal
Rule 3.2. Who may file petition. - capacity to sue or be
Any party to an arbitration agreement sued;
may petition the appropriate court to
determine any question concerning b. The nature and
the existence, validity and substance of the
enforceability of such arbitration dispute between the
agreement serving a copy thereof on parties;
the respondent in accordance with
Rule 1.4 (A). c. The grounds and
the circumstances
Rule 3.3. When the petition may be relied upon by the
filed. - The petition for judicial petitioner to establish
determination of the existence, his position; and
validity and/or enforceability of an
arbitration agreement may be filed at d. The relief/s sought.
any time prior to the commencement
of arbitration. Apart from other submissions, the
petitioner must attach to the petition
Despite the pendency of the petition an authentic copy of the arbitration
provided herein, arbitral proceedings agreement.
may nevertheless be commenced and
continue to the rendition of an award, Rule 3.7. Comment/Opposition.-The
while the issue is pending before the comment/opposition of the respondent
court. must be filed within fifteen (15) days
from service of the petition.
Rule 3.4. Venue. - A petition
questioning the existence, validity and Rule 3.8. Court action. - In resolving
enforceability of an arbitration the petition, the court must exercise
agreement may be filed before the judicial restraint in accordance with
Regional Trial Court of the place where the policy set forth in Rule 2.4,
any of the petitioners or respondents deferring to the competence or
has his principal place of business or jurisdiction of the arbitral tribunal to
residence. rule on its competence or jurisdiction.

Rule 3.5. Grounds. - A petition may Rule 3.9. No forum shopping. - A

be granted only if it is shown that the petition for judicial relief under this
arbitration agreement is, under the Rule may not be commenced when
applicable law, invalid, void, the existence, validity or enforceability
unenforceable or inexistent. of an arbitration agreement has been
raised as one of the issues in a prior
Rule 3.6. Contents of petition. - The action before the same or another
verified petition shall state the court.
following:
Rule 3.10. Application for interim
relief. - If the petitioner also applies its jurisdiction be reversed by the
for an interim measure of protection, court, the parties shall be free to
he must also comply with the replace the arbitrators or any one of
requirements of the Special ADR Rules them in accordance with the rules that
for the application for an interim were applicable for the appointment of
measure of protection. arbitrator sought to be replaced.

Rule 3.11. Relief against court Rule 3.13. When petition may be
action. - Where there is a prima facie filed. - The petition may be filed within
determination upholding the thirty (30) days after having received
arbitration agreement.-A prima facie notice of that ruling by the arbitral
determination by the court upholding tribunal.
the existence, validity or enforceability
of an arbitration agreement shall not Rule 3.14. Venue. - The petition may
be subject to a motion for be filed before the Regional Trial Court
reconsideration, appeal or certiorari. of the place where arbitration is taking
place, or where any of the petitioners
Such prima facie determination will or respondents has his principal place
not, however, prejudice the right of of business or residence.
any party to raise the issue of the
existence, validity and enforceability Rule 3.15. Grounds. - The petition
of the arbitration agreement before may be granted when the court finds
the arbitral tribunal or the court in an that the arbitration agreement is
action to vacate or set aside the invalid, inexistent or unenforceable as
arbitral award. In the latter case, the a result of which the arbitral tribunal
court’s review of the arbitral tribunal’s has no jurisdiction to resolve the
ruling upholding the existence, validity dispute.
or enforceability of the arbitration
agreement shall no longer be limited Rule 3.16. Contents of petition. -
to a mere prima facie determination of The petition shall state the following:
such issue or issues as prescribed in
this Rule, but shall be a full review of a. The facts showing
such issue or issues with due regard, that the person named
however, to the standard for review as petitioner or
for arbitral awards prescribed in these respondent has legal
Special ADR Rules. capacity to sue or be
sued;
B. Judicial Relief after Arbitration
Commences b. The nature and
substance of the
dispute between the
Rule 3.12. Who may file petition. - parties;
Any party to arbitration may petition
the appropriate court for judicial relief c. The grounds and
from the ruling of the arbitral tribunal the circumstances
on a preliminary question upholding or relied upon by the
declining its jurisdiction. Should the petitioner; and
ruling of the arbitral tribunal declining
 d. The relief/s sought. appeal. The ruling of the court
affirming the arbitral tribunal’s
In addition to the submissions, the jurisdiction shall not be subject to a
petitioner shall attach to the petition a petition for certiorari. The ruling of the
copy of the request for arbitration and court that the arbitral tribunal has no
the ruling of the arbitral tribunal. jurisdiction may be the subject of a
petition for certiorari.
The arbitrators shall be impleaded as
nominal parties to the case and shall Rule 3.20. Where no petition is
be notified of the progress of the case. allowed. - Where the arbitral tribunal
defers its ruling on preliminary
Rule 3.17. Comment/Opposition. - question regarding its jurisdiction until
The comment/opposition must be filed its final award, the aggrieved party
within fifteen (15) days from service cannot seek judicial relief to question
of the petition. the deferral and must await the final
arbitral award before seeking
Rule 3.18. Court action. - (A) Period appropriate judicial recourse.
for resolving the petition.- The court
shall render judgment on the basis of A ruling by the arbitral tribunal
the pleadings filed and the evidence, if deferring resolution on the issue of its
any, submitted by the parties, within jurisdiction until final award, shall not
thirty (30) days from the time the be subject to a motion for
petition is submitted for resolution. reconsideration, appeal or a petition
for certiorari.
(B) No injunction of arbitration
proceedings. - The court shall not Rule 3.21. Rendition of arbitral
enjoin the arbitration proceedings award before court decision on
during the pendency of the petition. petition from arbitral tribunal’s
preliminary ruling on jurisdiction. - If
Judicial recourse to the court shall the arbitral tribunal renders a final
not prevent the arbitral tribunal from arbitral award and the Court has not
continuing the proceedings and rendered a decision on the petition
rendering its award. from the arbitral tribunal’s preliminary
ruling affirming its jurisdiction, that
(C) When dismissal of petition is petition shall become ipso facto moot
appropriate. - The court shall dismiss and academic and shall be dismissed
the petition if it fails to comply with by the Regional Trial Court. The
Rule 3.16 above; or if upon dismissal shall be without prejudice to
consideration of the grounds alleged the right of the aggrieved party to
and the legal briefs submitted by the raise the same issue in a timely
parties, the petition does not appear petition to vacate or set aside the
to be prima facie meritorious. award.

Rule 3.19. Relief against court Rule 3.22. Arbitral tribunal a nominal
action. - The aggrieved party may file party. - The arbitral tribunal is only a
a motion for reconsideration of the nominal party. The court shall not
order of the court. The decision of the require the arbitral tribunal to submit
court shall, however, not be subject to any pleadings or written submissions
but may consider the same should the specifying the date and time when it
latter participate in the proceedings, would be heard. The party making the
but only as nominal parties thereto. request shall serve it upon the
respondent to give him the
RULE 4: REFERRAL TO ADR opportunity to file a comment or
opposition as provided in the
immediately succeeding Rule before
Rule 4.1. Who makes the request. - the hearing.
A party to a pending action filed in
violation of the arbitration agreement, Rule 4.4. Comment/Opposition. -
whether contained in an arbitration The comment/opposition must be filed
clause or in a submission agreement, within fifteen (15) days from service
may request the court to refer the of the petition. The
parties to arbitration in accordance comment/opposition should show
with such agreement. that: (a) there is no agreement to
refer the dispute to arbitration; and/or
Rule 4.2. When to make request. - (b) the agreement is null and void;
(A) Where the arbitration agreement and/or (c) the subject-matter of the
exists before the action is filed. - The dispute is not capable of settlement or
request for referral shall be made not resolution by arbitration in accordance
later than the pre-trial conference. with Section 6 of the ADR Act.
After the pre-trial conference, the
court will only act upon the request for Rule 4.5. Court action. - After
referral if it is made with the hearing, the court shall stay the action
agreement of all parties to the case. and, considering the statement of
policy embodied in Rule 2.4, above,
(B) Submission agreement. - If there refer the parties to arbitration if it
is no existing arbitration agreement at finds prima facie, based on the
the time the case is filed but the pleadings and supporting documents
parties subsequently enter into an submitted by the parties, that there is
arbitration agreement, they may an arbitration agreement and that the
request the court to refer their dispute subject-matter of the dispute is
to arbitration at any time during the capable of settlement or resolution by
proceedings. arbitration in accordance with Section
6 of the ADR Act. Otherwise, the court
Rule 4.3. Contents of request. - The shall continue with the judicial
request for referral shall be in the proceedings.
form of a motion, which shall state
that the dispute is covered by an Rule 4.6. No reconsideration, appeal
arbitration agreement. or certiorari. - An order referring the
dispute to arbitration shall be
Apart from other submissions, the immediately executory and shall not
movant shall attach to his motion an be subject to a motion for
authentic copy of the arbitration reconsideration, appeal or petition for
agreement. certiorari.

The request shall contain a notice of An order denying the request to refer
hearing addressed to all parties the dispute to arbitration shall not be
subject to an appeal, but may be the bound by it do not object to their
subject of a motion for reconsideration inclusion.
and/or a petition for certiorari.
Rule 4.8. Arbitration to proceed.-
Rule 4.7. Multiple actions and Despite the pendency of the action
parties. - The court shall not decline to referred to in Rule 4.1, above, arbitral
refer some or all of the parties to proceedings may nevertheless be
arbitration for any of the following commenced or continued, and an
reasons: award may be made, while the action
is pending before the court.
a. Not all of the
disputes subject of the RULE 5: INTERIM MEASURES OF
civil action may be PROTECTION
referred to arbitration;

b. Not all of the parties Rule 5.1. Who may ask for interim
to the civil action are measures of protection. - A party to
bound by the an arbitration agreement may petition
arbitration agreement the court for interim measures of
and referral to protection.
arbitration would result
in multiplicity of suits; Rule 5.2. When to petition. - A
petition for an interim measure of
c. The issues raised protection may be made (a) before
in the civil action could arbitration is commenced, (b) after
be speedily and arbitration is commenced, but before
efficiently resolved in the constitution of the arbitral
its entirety by the court tribunal, or (c) after the constitution of
rather than in the arbitral tribunal and at any time
arbitration; during arbitral proceedings but, at this
stage, only to the extent that the
d. Referral to arbitral tribunal has no power to act or
arbitration does not is unable to act effectively.
appear to be the most
prudent action; or Rule 5.3. Venue. - A petition for an
interim measure of protection may be
e. The stay of the filed with the Regional Trial Court,
action would prejudice which has jurisdiction over any of the
the rights of the parties following places:
to the civil action who
are not bound by the a. Where the principal
arbitration agreement. place of business of
any of the parties to
The court may, however, issue an arbitration is located;
order directing the inclusion in
arbitration of those parties who are b. Where any of the
not bound by the arbitration parties who are
agreement but who agree to such individuals resides;
inclusion provided those originally
 c. Where any of the been constituted, or if
acts sought to be constituted, is unable
enjoined are being to act or would be
performed, threatened unable to act
to be performed or not effectively;
being performed; or
c. A detailed
d. Where the real description of the
property subject of appropriate relief
arbitration, or a portion sought;
thereof is situated.
d. The grounds relied
Rule 5.4. Grounds. - The following on for the allowance of
grounds, while not limiting the the petition
reasons for the court to grant an
interim measure of protection, indicate
the nature of the reasons that the Apart from other submissions, the
court shall consider in granting the petitioner must attach to his petition
relief: an authentic copy of the arbitration
agreement.

a. The need to prevent Rule 5.6. Type of interim measure of

irreparable loss or protection that a court may grant.-
injury; The following, among others, are the
interim measures of protection that a
b. The need to provide court may grant:
security for the
performance of any
obligation; a. Preliminary
injunction directed
c. The need to against a party to
produce or preserve arbitration;
evidence; or
b. Preliminary
d. The need to compel attachment against
any other appropriate property or
act or omission. garnishment of funds
in the custody of a
bank or a third person;
Rule 5.5. Contents of the petition. -
The verified petition must state the c. Appointment of a
following: receiver;

a. The fact that there d. Detention,

is an arbitration preservation, delivery
agreement; or inspection of
property; or,
b. The fact that the
arbitral tribunal has not
 e. Assistance in the the allegations in the petition that are
enforcement of an substantiated by supporting
interim measure of documents and limited to what is
protection granted by prayed for therein.
the arbitral tribunal,
which the latter cannot In cases where, based solely on the
enforce effectively. petition, the court finds that there is
an urgent need to either (a) preserve
property, (b) prevent the respondent
Rule 5.7. Dispensing with prior from disposing of, or concealing, the
notice in certain cases. - Prior notice property, or (c) prevent the relief
to the other party may be dispensed prayed for from becoming illusory
with when the petitioner alleges in the because of prior notice, it shall issue
petition that there is an urgent need an immediately executory temporary
to either (a) preserve property, (b) order of protection and require the
prevent the respondent from disposing petitioner, within five (5) days from
of, or concealing, the property, or (c) receipt of that order, to post a bond to
prevent the relief prayed for from answer for any damage that
becoming illusory because of prior respondent may suffer as a result of
notice, and the court finds that the its order. The ex-parte temporary
reason/s given by the petitioner are order of protection shall be valid only
meritorious. for a period of twenty (20) days from
the service on the party required to
Rule 5.8. Comment/Opposition. - comply with the order. Within that
The comment/opposition must be filed period, the court shall:
within fifteen (15) days from service
of the petition. The opposition or a. Furnish the
comment should state the reasons respondent a copy of
why the interim measure of protection the petition and a
should not be granted. notice requiring him to
comment thereon on or
Rule 5.9. Court action. - After before the day the
hearing the petition, the court shall petition will be heard;
balance the relative interests of the and
parties and inconveniences that may
be caused, and on that basis resolve b. Notify the parties
the matter within thirty (30) days that the petition shall
from (a) submission of the opposition, be heard on a day
or (b) upon lapse of the period to file specified in the notice,
the same, or (c) from termination of which must not be
the hearing that the court may set beyond the twenty
only if there is a need for clarification (20) day period of the
or further argument. effectivity of the
ex-parte order.
If the other parties fail to file their
opposition on or before the day of the
hearing, the court shall motu proprio The respondent has the option of
render judgment only on the basis of having the temporary order of
protection lifted by posting an b. The party opposing
appropriate counter-bond as the application found
determined by the court. new material evidence,
which the arbitral
If the respondent requests the court tribunal had not
for an extension of the period to file considered in granting
his opposition or comment or to reset in the application, and
the hearing to a later date, and such which, if considered,
request is granted, the court shall may produce a
extend the period of validity of the different result; or
ex-parte temporary order of protection
for no more than twenty days from c. The measure of
expiration of the original period. protection ordered by
the arbitral tribunal
After notice and hearing, the court amends, revokes,
may either grant or deny the petition modifies or is
for an interim measure of protection. inconsistent with an
The order granting or denying any earlier measure of
application for interim measure of protection issued by
protection in aid of arbitration must the court.
indicate that it is issued without
prejudice to subsequent grant, If it finds that there is sufficient merit
modification, amendment, revision or in the opposition to the application
revocation by an arbitral tribunal. based on letter (b) above, the court
shall refer the matter back to the
Rule 5.10. Relief against court arbitral tribunal for appropriate
action. - If respondent was given an determination.
opportunity to be heard on a petition
for an interim measure of protection, Rule 5.12. Security. - The order
any order by the court shall be granting an interim measure of
immediately executory, but may be protection may be conditioned upon
the subject of a motion for the provision of security, performance
reconsideration and/or appeal or, if of an act, or omission thereof,
warranted, a petition for certiorari. specified in the order.

Rule 5.11. Duty of the court to refer The Court may not change or
back. - The court shall not deny an increase or decrease the security
application for assistance in ordered by the arbitral tribunal.
implementing or enforcing an interim
measure of protection ordered by an Rule 5.13. Modification, amendment,
arbitral tribunal on any or all of the revision or revocation of court’s
following grounds: previously issued interim measure of
protection. - Any court order granting
a. The arbitral tribunal or denying interim measure/s of
granted the interim protection is issued without prejudice
relief ex parte; or to subsequent grant, modification,
amendment, revision or revocation by
the arbitral tribunal as may be
warranted. the enforcement of an interim
measure of protection issued by the
An interim measure of protection arbitral tribunal which it is unable to
issued by the arbitral tribunal shall, effectively enforce.
upon its issuance be deemed to have
ipso jure modified, amended, revised RULE 6: APPOINTMENT OF
or revoked an interim measure of ARBITRATORS
protection previously issued by the
court to the extent that it is
inconsistent with the subsequent Rule 6.1. When the court may act as
interim measure of protection issued Appointing Authority. - The court shall
by the arbitral tribunal. act as Appointing Authority only in the
following instances:
Rule 5.14. Conflict or inconsistency
between interim measure of protection
issued by the court and by the arbitral a. Where any of the
tribunal. - Any question involving a parties in an
conflict or inconsistency between an institutional arbitration
interim measure of protection issued failed or refused to
by the court and by the arbitral appoint an arbitrator or
tribunal shall be immediately referred when the parties have
by the court to the arbitral tribunal failed to reach an
which shall have the authority to agreement on the sole
decide such question. arbitrator (in an
arbitration before a
Rule 5.15. Court to defer action on sole arbitrator) or
petition for an interim measure of when the two
protection when informed of designated arbitrators
constitution of the arbitral tribunal. - have failed to reach an
The court shall defer action on any agreement on the third
pending petition for an interim or presiding arbitrator
measure of protection filed by a party (in an arbitration
to an arbitration agreement arising before a panel of three
from or in connection with a dispute arbitrators), and the
thereunder upon being informed that institution under whose
an arbitral tribunal has been rules arbitration is to
constituted pursuant to such be conducted fails or is
agreement. The court may act upon unable to perform its
such petition only if it is established by duty as appointing
the petitioner that the arbitral tribunal authority within a
has no power to act on any such reasonable time from
interim measure of protection or is receipt of the request
unable to act thereon effectively. for appointment;

Rule 5.16. Court assistance should b. In all instances

arbitral tribunal be unable to where arbitration is ad
effectively enforce interim measure of hoc and the parties
protection. - The court shall assist in failed to provide a
method for appointing appointment shall be
or replacing an made by the
arbitrator, or substitute Appointing Authority. If
arbitrator, or the the latter fails or
method agreed upon is refuses to act or
ineffective, and the appoint an arbitrator
National President of within a reasonable
the Integrated Bar of time from receipt of
the Philippines (IBP) or the request to do so,
his duly authorized any party or the
representative fails or appointed arbitrator/s
refuses to act within may request the court
such period as may be to appoint an arbitrator
allowed under the or the third arbitrator
pertinent rules of the as the case may be.
IBP or within such
period as may be
agreed upon by the Rule 6.2. Who may request for
parties, or in the appointment. - Any party to an
absence thereof, within arbitration may request the court to
thirty (30) days from act as an Appointing Authority in the
receipt of such request instances specified in Rule 6.1 above.
for appointment;
Rule 6.3. Venue. - The petition for
c. Where the parties appointment of arbitrator may be
agreed that their filed, at the option of the petitioner, in
dispute shall be the Regional Trial Court (a) where the
resolved by three principal place of business of any of
arbitrators but no the parties is located, (b) if any of the
method of appointing parties are individuals, where those
those arbitrators has individuals reside, or (c) in the
been agreed upon, National Capital Region.
each party shall
appoint one arbitrator Rule 6.4. Contents of the petition.
and the two arbitrators -The petition shall state the following:
thus appointed shall
appoint a third a. The general nature
arbitrator. If a party of the dispute;
fails to appoint his
arbitrator within thirty b. If the parties agreed
(30) days of receipt of on an appointment
a request to do so from procedure, a
the other party, or if description of that
the two arbitrators fail procedure with
to agree on the third reference to the
arbitrator within a agreement where such
reasonable time from may be found;
their appointment, the
 c. The number of option, also require each party to
arbitrators agreed submit a list of not less than three (3)
upon or the absence of proposed arbitrators together with
any agreement as to their curriculum vitae.
the number of
arbitrators; Rule 6.7. Court action. - After
hearing, if the court finds merit in the
d. The special petition, it shall appoint an arbitrator;
qualifications that the otherwise, it shall dismiss the petition.
arbitrator/s must
possess, if any, that In making the appointment, the
were agreed upon by court shall have regard to such
the parties; considerations as are likely to secure
the appointment of an independent
e. The fact that the and impartial arbitrator.
Appointing Authority,
without justifiable At any time after the petition is filed
cause, has failed or and before the court makes an
refused to act as such appointment, it shall also dismiss the
within the time petition upon being informed that the
prescribed or in the Appointing Authority has already
absence thereof, within made the appointment.
a reasonable time,
from the date a Rule 6.8. Forum shopping prohibited.
request is made; and - When there is a pending petition in
another court to declare the
f. The petitioner is arbitration agreement inexistent,
not the cause of the invalid, unenforceable, on account of
delay in, or failure of, which the respondent failed or refused
the appointment of the to participate in the selection and
arbitrator. appointment of a sole arbitrator or to
appoint a party-nominated arbitrator,
the petition filed under this rule shall
Apart from other submissions, the be dismissed.
petitioner must attach to the petition
(a) an authentic copy of the Rule 6.9. Relief against court action.
arbitration agreement, and (b) proof - If the court appoints an arbitrator,
that the Appointing Authority has been the order appointing an arbitrator shall
notified of the filing of the petition for be immediately executory and shall
appointment with the court. not be the subject of a motion for
reconsideration, appeal or certiorari.
Rule 6.5. Comment/Opposition. - An order of the court denying the
The comment/opposition must be filed petition for appointment of an
within fifteen (15) days from service arbitrator may, however, be the
of the petition. subject of a motion for
reconsideration, appeal or certiorari.
Rule 6.6. Submission of list of
arbitrators. - The court may, at its
 RULE 7: CHALLENGE TO appointment as arbitrator.
APPOINTMENT OF ARBITRATOR
Rule 7.5. Contents of the petition. -
The petition shall state the following:
Rule 7.1. Who may challenge. - Any
of the parties to an arbitration may a. The name/s of the
challenge an arbitrator. arbitrator/s challenged
and his/their address;
Rule 7.2. When challenge may be
raised in court. - When an arbitrator is b. The grounds for the
challenged before the arbitral tribunal challenge;
under the procedure agreed upon by
the parties or under the procedure c. The facts showing
provided for in Article 13 (2) of the that the ground for the
Model Law and the challenge is not challenge has been
successful, the aggrieved party may expressly or impliedly
request the Appointing Authority to rejected by the
rule on the challenge, and it is only challenged arbitrator/s;
when such Appointing Authority fails and
or refuses to act on the challenge
within such period as may be allowed d. The facts showing
under the applicable rule or in the that the Appointing
absence thereof, within thirty (30) Authority failed or
days from receipt of the request, that refused to act on the
the aggrieved party may renew the challenge.
challenge in court.

Rule 7.3. Venue. - The challenge The court shall dismiss the petition
shall be filed with the Regional Trial motu proprio unless it is clearly
Court (a) where the principal place of alleged therein that the Appointing
business of any of the parties is Authority charged with deciding the
located, (b) if any of the parties are challenge, after the resolution of the
individuals, where those individuals arbitral tribunal rejecting the challenge
reside, or (c) in the National Capital is raised or contested before such
Region. Appointing Authority, failed or refused
to act on the challenge within thirty
Rule 7.4. Grounds. - An arbitrator (30) days from receipt of the request
may be challenged on any of the or within such longer period as may
grounds for challenge provided for in apply or as may have been agreed
Republic Act No. 9285 and its upon by the parties.
implementing rules, Republic Act No.
876 or the Model Law. The nationality Rule 7.6. Comment/Opposition. -
or professional qualification of an The challenged arbitrator or other
arbitrator is not a ground to challenge parties may file a comment or
an arbitrator unless the parties have opposition within fifteen (15) days
specified in their arbitration from service of the petition.
agreement a nationality and/or
professional qualification for Rule 7.7. Court action. - After
hearing, the court shall remove the a. The other arbitrators
challenged arbitrator if it finds merit in in the arbitral tribunal
the petition; otherwise, it shall dismiss agree to the removal of
the petition. the challenged
arbitrator; and
The court shall allow the challenged
arbitrator who subsequently agrees to b. If the challenged
accept the challenge to withdraw as arbitrator fails or
arbitrator. refuses to submit his
comment on the
The court shall accept the challenge petition or the brief of
and remove the arbitrator in the legal arguments as
following cases: directed by the court,
or in such comment or
a. The party or parties brief of legal
who named and arguments, he fails to
appointed the object to his removal
challenged arbitrator following the challenge.
agree to the challenge
and withdraw the Rule 7.8. No motion for
appointment. reconsideration, appeal or
certiorari. - Any order of the court
b. The other arbitrators resolving the petition shall be
in the arbitral tribunal immediately executory and shall not
agree to the removal of be the subject of a motion for
the challenged reconsideration, appeal, or certiorari.
arbitrator; and
Rule 7.9. Reimbursement of
c. The challenged expenses and reasonable
arbitrator fails or compensation to challenged arbitrator.
refuses to submit his - Unless the bad faith of the
comment on the challenged arbitrator is established
petition or the brief of with reasonable certainty by
legal arguments as concealing or failing to disclose a
directed by the court, ground for his disqualification, the
or in such comment or challenged arbitrator shall be entitled
legal brief, he fails to to reimbursement of all reasonable
object to his removal expenses he may have incurred in
following the challenge. attending to the arbitration and to a
reasonable compensation for his work
The court shall decide the challenge on the arbitration. Such expenses
on the basis of evidence submitted by include, but shall not be limited to,
the parties. transportation and hotel expenses, if
any. A reasonable compensation shall
The court will decide the challenge on be paid to the challenged arbitrator on
the basis of the evidence submitted by the basis of the length of time he has
the parties in the following instances: devoted to the arbitration and taking
into consideration his stature and
reputation as an arbitrator. The that arbitrator.
request for reimbursement of
expenses and for payment of a Rule 8.3. Venue. - A petition to
reasonable compensation shall be filed terminate the mandate of an arbitrator
in the same case and in the court may, at that petitioner’s option, be
where the petition to replace the filed with the Regional Trial Court (a)
challenged arbitrator was filed. The where the principal place of business
court, in determining the amount of of any of the parties is located, (b)
the award to the challenged arbitrator, where any of the parties who are
shall receive evidence of expenses to individuals resides, or (c) in the
be reimbursed, which may consist of National Capital Region.
air tickets, hotel bills and expenses,
and inland transportation. The court Rule 8.4. Contents of the petition. -
shall direct the challenging party to The petition shall state the following:
pay the amount of the award to the
court for the account of the challenged a. The name of the
arbitrator, in default of which the court arbitrator whose
may issue a writ of execution to mandate is sought to
enforce the award. be terminated;

RULE 8: TERMINATION OF THE b. The ground/s for

MANDATE OF ARBITRATOR termination;

c. The fact that one

Rule 8.1. Who may request or all of the parties had
termination and on what grounds.- requested the
Any of the parties to an arbitration arbitrator to withdraw
may request for the termination of the but he failed or refused
mandate of an arbitrator where an to do so;
arbitrator becomes de jure or de facto
unable to perform his function or for d. The fact that one or
other reasons fails to act without all of the parties
undue delay and that arbitrator, upon requested the
request of any party, fails or refuses to Appointing Authority to
withdraw from his office. act on the request for
the termination of the
Rule 8.2. When to request. - If an mandate of the
arbitrator refuses to withdraw from his arbitrator and failure or
office, and subsequently, the inability of the
Appointing Authority fails or refuses to Appointing Authority to
decide on the termination of the act within thirty (30)
mandate of that arbitrator within such days from the request
period as may be allowed under the of a party or parties or
applicable rule or, in the absence within such period as
thereof, within thirty (30) days from may have been agreed
the time the request is brought before upon by the parties or
him, any party may file with the court allowed under the
a petition to terminate the mandate of applicable rule.
 Rule 9.2. When assistance may be
The petitioner shall further allege that sought. - Assistance may be sought at
one or all of the parties had requested any time during the course of the
the arbitrator to withdraw but he arbitral proceedings when the need
failed or refused to do so. arises.

Rule 8.5. Comment/Opposition. - Rule 9.3. Venue. - A petition for

The comment/opposition must be filed assistance in taking evidence may, at
within fifteen (15) days from service the option of the petitioner, be filed
of the petition. with Regional Trial Court where (a)
arbitration proceedings are taking
Rule 8.6. Court action. - After place, (b) the witnesses reside or may
hearing, if the court finds merit in the be found, or (c) where the evidence
petition, it shall terminate the may be found.
mandate of the arbitrator who refuses
to withdraw from his office; otherwise, Rule 9.4. Ground. - The court may
it shall dismiss the petition. grant or execute the request for
assistance in taking evidence within its
Rule 8.7. No motion for competence and according to the rules
reconsideration or appeal. - Any order of evidence.
of the court resolving the petition shall
be immediately executory and shall Rule 9.5. Type of assistance. - A
not be subject of a motion for party requiring assistance in the
reconsideration, appeal or petition for taking of evidence may petition the
certiorari. court to direct any person, including a
representative of a corporation,
Rule 8.8. Appointment of substitute association, partnership or other entity
arbitrator. - Where the mandate of an (other than a party to the ADR
arbitrator is terminated, or he proceedings or its officers) found in
withdraws from office for any other the Philippines, for any of the
reason, or because of his mandate is following:
revoked by agreement of the parties
or is terminated for any other reason,
a substitute arbitrator shall be a. To comply with a
appointed according to the rules that subpoena ad
were applicable to the appointment of testificandum and/or
the arbitrator being replaced. subpoena duces
tecum;
RULE 9: ASSISTANCE IN
TAKING EVIDENCE b. To appear as a
witness before an
officer for the taking of
Rule 9.1. Who may request his deposition upon
assistance. - Any party to an oral examination or by
arbitration, whether domestic or written interrogatories;
foreign, may request the court to
provide assistance in taking evidence. c. To allow the
physical examination of
 the condition of place where the
persons, or the evidence may be
inspection of things or found, the place where
premises and, when the premises to be
appropriate, to allow inspected are located
the recording and/or or the place where the
documentation of acts required are to be
condition of persons, done.
things or premises
(i.e., photographs, Rule 9.7. Comment/Opposition. - The
video and other means comment/opposition must be filed
of within fifteen (15) days from service
recording/documentati of the petition.
on);
Rule 9.8. Court action. - If the
d. To allow the evidence sought is not privileged, and
examination and is material and relevant, the court
copying of documents; shall grant the assistance in taking
and evidence requested and shall order
petitioner to pay costs attendant to
e. To perform any such assistance.
similar acts.
Rule 9.9. Relief against court action.
Rule 9.6. Contents of the petition. - - The order granting assistance in
The petition must state the following: taking evidence shall be immediately
executory and not subject to
a. The fact that there reconsideration or appeal. If the court
is an ongoing declines to grant assistance in taking
arbitration proceeding evidence, the petitioner may file a
even if such proceeding motion for reconsideration or appeal.
could not continue due
to some legal Rule 9.10. Perpetuation of testimony
impediments; before the arbitral tribunal is
constituted. - At anytime before
b. The arbitral tribunal arbitration is commenced or before
ordered the taking of the arbitral tribunal is constituted, any
evidence or the party person who desires to perpetuate his
desires to present testimony or that of another person
evidence to the arbitral may do so in accordance with Rule 24
tribunal; of the Rules of Court.
c. Materiality or
Rule 9.11. Consequence of
relevance of the
disobedience. - The court may impose
evidence to be taken;
the appropriate sanction on any
and
person who disobeys its order to
d. The names and testify when required or perform any
addresses of the act required of him.
intended witness/es,
RULE 10: obtained, during an ADR proceeding.
CONFIDENTIALITY/PROTECTIVE
ORDERS Rule 10.5. Contents of the motion or
petition. - The petition or motion must
Rule 10.1. Who may request state the following:
confidentiality. - A party, counsel or
witness who disclosed or who was a. That the information
compelled to disclose information sought to be protected
relative to the subject of ADR under was obtained, or would
circumstances that would create a be obtained, during an
reasonable expectation, on behalf of ADR proceeding;
the source, that the information shall
be kept confidential has the right to b. The applicant would
prevent such information from being be materially
further disclosed without the express prejudiced by the
written consent of the source or the disclosure of that
party who made the disclosure. information;

Rule 10.2. When request made. - A c. The person or

party may request a protective order persons who are being
at anytime there is a need to enforce asked to divulge the
the confidentiality of the information confidential information
obtained, or to be obtained, in ADR participated in an ADR
proceedings. proceedings; and

Rule 10.3. Venue. - A petition for a d. The time, date and

protective order may be filed with the place when the ADR
Regional Trial Court where that order proceedings took place.
would be implemented.
Apart from the other submissions, the
movant must set the motion for
If there is a pending court proceeding
hearing and contain a notice of
in which the information obtained in
hearing in accordance with Rule 15 of
an ADR proceeding is required to be
the Rules of Court.
divulged or is being divulged, the
party seeking to enforce the
Rule 10.6. Notice. - Notice of a
confidentiality of the information may
request for a protective order made
file a motion with the court where the
through a motion shall be made to the
proceedings are pending to enjoin the
opposing parties in accordance with
confidential information from being
Rule 15 of the Rules of Court.
divulged or to suppress confidential
information.
Rule 10.7. Comment/Opposition. -
The comment/opposition must be filed
Rule 10.4. Grounds. - A protective
within fifteen (15) days from service
order may be granted only if it is
of the petition. The opposition or
shown that the applicant would be
comment may be accompanied by
materially prejudiced by an
written proof that (a) the information
unauthorized disclosure of the
is not confidential, (b) the information
information obtained, or to be
was not obtained during an ADR the following persons
proceeding, (c) there was a waiver of involved or previously
confidentiality, or (d) the involved in a mediation
petitioner/movant is precluded from may not be compelled
asserting confidentiality. to disclose confidential
information obtained
Rule 10.8. Court action. - If the during the mediation:
court finds the petition or motion (1) the parties to the
meritorious, it shall issue an order dispute; (2) the
enjoining a person or persons from mediator or mediators;
divulging confidential information. (3) the counsel for the
parties: (4) the
In resolving the petition or motion, nonparty participants;
the courts shall be guided by the (5) any persons hired
following principles applicable to all or engaged in
ADR proceedings: Confidential connection with the
information shall not be subject to mediation as secretary,
discovery and shall be inadmissible in stenographer; clerk or
any adversarial proceeding, whether assistant; and (6) any
judicial or quasi judicial. However, other person who
evidence or information that is obtains or possesses
otherwise admissible or subject to confidential information
discovery does not become by reason of his/ her
inadmissible or protected from profession.
discovery solely by reason of its use
therein. d. The protection of
the ADR Laws shall
For mediation proceedings, the continue to apply even
court shall be further guided by the if a mediator is found
following principles: to have failed to act
impartially.
a. Information
obtained through e. A mediator may not
mediation shall be be called to testify to
privileged and provide information
confidential. gathered in mediation.
A mediator who is
b. A party, a mediator, wrongfully subpoenaed
or a nonparty shall be reimbursed the
participant may refuse full cost of his attorney
to disclose and may fees and related
prevent any other expenses.
person from disclosing
a mediation
communication. Rule 10.9. Relief against court
action. - The order enjoining a person
c. In such an or persons from divulging confidential
adversarial proceeding, information shall be immediately
executory and may not be enjoined arbitral award, a party may petition
while the order is being questioned the court to vacate that award.
with the appellate courts.
(D) A petition to vacate the
If the court declines to enjoin a arbitral award may be filed, in
person or persons from divulging opposition to a petition to confirm the
confidential information, the petitioner arbitral award, not later than thirty
may file a motion for reconsideration (30) days from receipt of the award by
or appeal. the petitioner. A petition to vacate the
arbitral award filed beyond the
Rule 10.10. Consequence of reglementary period shall be
disobedience. - Any person who dismissed.
disobeys the order of the court to
cease from divulging confidential (E) A petition to confirm the
information shall be imposed the arbitral award may be filed, in
proper sanction by the court. opposition to a petition to vacate the
arbitral award, at any time after the
RULE 11: CONFIRMATION, petition to vacate such arbitral award
CORRECTION OR VACATION OF is filed. The dismissal of the petition to
AWARD IN DOMESTIC vacate the arbitral award for having
ARBITRATION been filed beyond the reglementary
period shall not result in the dismissal
of the petition for the confirmation of
Rule 11.1. Who may request such arbitral award.
confirmation, correction or vacation. -
Any party to a domestic arbitration (F) The filing of a petition to
may petition the court to confirm, confirm an arbitral award shall not
correct or vacate a domestic arbitral authorize the filing of a belated
award. petition to vacate or set aside such
award in opposition thereto.
Rule 11.2. When to request
confirmation, correction/modification (G) A petition to correct an
or vacation. - arbitral award may be included as part
of a petition to confirm the arbitral
(A) Confirmation. - At any time award or as a petition to confirm that
after the lapse of thirty (30) days from award.
receipt by the petitioner of the arbitral
award, he may petition the court to Rule 11.3. Venue. - The petition for
confirm that award. confirmation, correction/modification
or vacation of a domestic arbitral
(B) Correction/Modification. - award may be filed with Regional Trial
Not later than thirty (30) days from Court having jurisdiction over the
receipt of the arbitral award, a party place in which one of the parties is
may petition the court to doing business, where any of the
correct/modify that award. parties reside or where arbitration
proceedings were conducted.
(C) Vacation. - Not later than
thirty (30) days from receipt of the Rule 11.4. Grounds. - (A) To vacate
an arbitral award. - The arbitral award a. The arbitration
may be vacated on the following agreement did not
grounds: exist, or is invalid for
any ground for the
revocation of a contract
a. The arbitral award or is otherwise
was procured through unenforceable; or
corruption, fraud or
other undue means; b. A party to
arbitration is a minor
b. There was evident or a person judicially
partiality or corruption declared to be
in the arbitral tribunal incompetent.
or any of its members;
The petition to vacate an arbitral
c. The arbitral award on the ground that the party to
tribunal was guilty of arbitration is a minor or a person
misconduct or any judicially declared to be incompetent
form of misbehavior shall be filed only on behalf of the
that has materially minor or incompetent and shall allege
prejudiced the rights of that (a) the other party to arbitration
any party such as had knowingly entered into a
refusing to postpone a submission or agreement with such
hearing upon sufficient minor or incompetent, or (b) the
cause shown or to hear submission to arbitration was made by
evidence pertinent and a guardian or guardian ad litem who
material to the was not authorized to do so by a
controversy; competent court.

d. One or more of the In deciding the petition to vacate the

arbitrators was arbitral award, the court shall
disqualified to act as disregard any other ground than those
such under the law and enumerated above.
willfully refrained from
disclosing such (B) To correct/modify an
disqualification; or arbitral award. - The Court may
correct/modify or order the arbitral
e. The arbitral tribunal tribunal to correct/modify the arbitral
exceeded its powers, award in the following cases:
or so imperfectly
executed them, such
that a complete, final a. Where there was an
and definite award evident miscalculation
upon the subject of figures or an evident
matter submitted to mistake in the
them was not made. description of any
person, thing or
The award may also be vacated on
any or all of the following grounds:
 property referred to in the award in opposition to the petition
the award; to confirm the award provided that
such petition to vacate or
b. Where the correct/modify is filed within thirty
arbitrators have (30) days from his receipt of the
awarded upon a matter award. A petition to vacate or
not submitted to them, correct/modify an arbitral award filed
not affecting the merits in another court or in a separate case
of the decision upon before the same court shall be
the matter submitted; dismissed, upon appropriate motion,
as a violation of the rule against
c. Where the forum-shopping.
arbitrators have
omitted to resolve an When a petition to vacate or
issue submitted to correct/modify an arbitral award is
them for resolution; or pending before a court, the party
seeking to confirm said award may
d. Where the award is only apply for that relief through a
imperfect in a matter petition to confirm the same award in
of form not affecting opposition to the petition to vacate or
the merits of the correct/modify the award. A petition to
controversy, and if it confirm or correct/modify an arbitral
had been a award filed as separate proceeding in
commissioner’s report, another court or in a different case
the defect could have before the same court shall be
been amended or dismissed, upon appropriate motion,
disregarded by the as a violation of the rule against forum
Court. shopping.
Rule 11.5. Form of petition. - An As an alternative to the dismissal of a
application to vacate an arbitral award second petition for confirmation,
shall be in the form of a petition to vacation or correction/modification of
vacate or as a petition to vacate in an arbitral award filed in violation of
opposition to a petition to confirm the the non-forum shopping rule, the
same award. court or courts concerned may allow
the consolidation of the two
An application to correct/modify an proceedings in one court and in one
arbitral award may be included in a case.
petition to confirm an arbitral award or
in a petition to vacate in opposition to Where the petition to confirm the
confirm the same award. award and petition to vacate or
correct/modify were simultaneously
When a petition to confirm an arbitral filed by the parties in the same court
award is pending before a court, the or in different courts in the Philippines,
party seeking to vacate or upon motion of either party, the court
correct/modify said award may only may order the consolidation of the two
apply for those reliefs through a cases before either court.
petition to vacate or correct/modify
 In all instances, the petition must be c. A certification
verified by a person who has against forum shopping
knowledge of the jurisdictional facts. executed by the
applicant in accordance
Rule 11.6. Contents of petition. - with Section 5 of Rule
The petition must state the following: 7 of the Rules of Court;
and

a. The addresses of d. An authentic copy or

the parties and any authentic copies of the
change thereof; appointment of an
arbitral tribunal.
b. The jurisdictional
issues raised by a
party during arbitration Rule 11.7. Notice. - Upon finding
proceedings; that the petition filed under this Rule
is sufficient both in form and in
c. The grounds relied substance, the Court shall cause
upon by the parties in notice and a copy of the petition to be
seeking the vacation of delivered to the respondent allowing
the arbitral award him to file a comment or opposition
whether the petition is thereto within fifteen (15) days from
a petition for the receipt of the petition. In lieu of an
vacation or setting opposition, the respondent may file a
aside of the arbitral petition in opposition to the petition.
award or a petition in
opposition to a petition The petitioner may within fifteen (15)
to confirm the award; days from receipt of the petition in
and opposition thereto file a reply.

d. A statement of the Rule 11.8. Hearing. - If the Court

date of receipt of the finds from the petition or petition in
arbitral award and the opposition thereto that there are
circumstances under issues of fact, it shall require the
which it was received parties, within a period of not more
by the petitioner than fifteen (15) days from receipt of
the order, to simultaneously submit
Apart from other submissions, the the affidavits of all of their witnesses
petitioner must attach to the petition and reply affidavits within ten (10)
the following: days from receipt of the affidavits to
be replied to. There shall be attached
a. An authentic copy of to the affidavits or reply affidavits
the arbitration documents relied upon in support of
agreement; the statements of fact in such
affidavits or reply affidavits.
b. An authentic copy of
the arbitral award;
If the petition or the petition in
opposition thereto is one for vacation
of an arbitral award, the interested certified copies of documents showing
party in arbitration may oppose the such fact. In addition, the petitioner
petition or the petition in opposition shall show that even if the submission
thereto for the reason that the or arbitration agreement was entered
grounds cited in the petition or the into by a guardian or guardian ad
petition in opposition thereto, litem, the latter was not authorized by
assuming them to be true, do not a competent court to sign such the
affect the merits of the case and may submission or arbitration agreement.
be cured or remedied. Moreover, the
interested party may request the court If on the basis of the petition, the
to suspend the proceedings for opposition, the affidavits and reply
vacation for a period of time and to affidavits of the parties, the court
direct the arbitral tribunal to reopen finds that there is a need to conduct
and conduct a new hearing and take an oral hearing, the court shall set the
such other action as will eliminate the case for hearing. This case shall have
grounds for vacation of the award. The preference over other cases before the
opposition shall be supported by a court, except criminal cases. During
brief of legal arguments to show the the hearing, the affidavits of witnesses
existence of a sufficient legal basis for shall take the place of their direct
the opposition. testimonies and they shall
immediately be subject to
If the ground of the petition to cross-examination thereon. The Court
vacate an arbitral award is that the shall have full control over the
arbitration agreement did not exist, is proceedings in order to ensure that
invalid or otherwise unenforceable, the case is heard without undue delay.
and an earlier petition for judicial relief
under Rule 3 had been filed, a copy of Rule 11.9. Court action. - Unless a
such petition and of the decision or ground to vacate an arbitral award
final order of the court shall be under Rule 11.5 above is fully
attached thereto. But if the ground established, the court shall confirm
was raised before the arbitral tribunal the award.
in a motion to dismiss filed not later
than the submission of its answer, and An arbitral award shall enjoy the
the arbitral tribunal ruled in favor of presumption that it was made and
its own jurisdiction as a preliminary released in due course of arbitration
question which was appealed by a and is subject to confirmation by the
party to the Regional Trial Court, a court
copy of the order, ruling or preliminary
award or decision of the arbitral In resolving the petition or petition in
tribunal, the appeal therefrom to the opposition thereto in accordance with
Court and the order or decision of the these Special ADR Rules, the court
Court shall all be attached to the shall either confirm or vacate the
petition. arbitral award. The court shall not
disturb the arbitral tribunal’s
If the ground of the petition is that determination of facts and/or
the petitioner is an infant or a person interpretation of law.
judicially declared to be incompetent,
there shall be attached to the petition In a petition to vacate an award or in
petition to vacate an award in recognition of an arbitral award may
opposition to a petition to confirm the be filed anytime from receipt of the
award, the petitioner may award. If, however, a timely petition to
simultaneously apply with the Court to set aside an arbitral award is filed, the
refer the case back to the same opposing party must file therein and in
arbitral tribunal for the purpose of opposition thereto the petition for
making a new or revised award or to recognition and enforcement of the
direct a new hearing, or in the same award within the period for filing
appropriate case, order the new an opposition.
hearing before a new arbitral tribunal,
the members of which shall be chosen (B) Petition to set aside. - The
in the manner provided in the petition to set aside an arbitral award
arbitration agreement or submission, may only be filed within three (3)
or the law. In the latter case, any months from the time the petitioner
provision limiting the time in which the receives a copy thereof. If a timely
arbitral tribunal may make a decision request is made with the arbitral
shall be deemed applicable to the new tribunal for correction, interpretation
arbitral tribunal. or additional award, the three (3)
month period shall be counted from
In referring the case back to the the time the petitioner receives the
arbitral tribunal or to a new arbitral resolution by the arbitral tribunal of
tribunal pursuant to Rule 24 of that request.
Republic Act No. 876, the court may
not direct it to revise its award in a A petition to set aside can no longer
particular way, or to revise its findings be filed after the lapse of the three (3)
of fact or conclusions of law or month period. The dismissal of a
otherwise encroach upon the petition to set aside an arbitral award
independence of an arbitral tribunal in for being time-barred shall not
the making of a final award. automatically result in the approval of
the petition filed therein and in
RULE 12: RECOGNITION AND opposition thereto for recognition and
ENFORCEMENT OR SETTING ASIDE enforcement of the same award.
OF AN Failure to file a petition to set aside
INTERNATIONALCOMMERCIAL shall preclude a party from raising
ARBITRATION AWARD grounds to resist enforcement of the
award.

Rule 12.1. Who may request Rule 12.3. Venue. - A petition to

recognition and enforcement or setting recognize and enforce or set aside an
aside. - Any party to an international arbitral award may, at the option of
commercial arbitration in the the petitioner, be filed with the
Philippines may petition the proper Regional Trial Court: (a) where
court to recognize and enforce or set arbitration proceedings were
aside an arbitral award. conducted; (b) where any of the
assets to be attached or levied upon is
Rule 12.2. When to file petition. - located; (c) where the act to be
(A) Petition to recognize and enforce. enjoined will be or is being performed;
- The petition for enforcement and (d) where any of the parties to
arbitration resides or has its place of on matters submitted to
business; or (e) in the National Capital arbitration may be enforced; or
Judicial Region.
(iv The composition of the arbitral
Rule 12.4. Grounds to set aside or ). tribunal or the arbitral procedure
resist enforcement. - The court may was not in accordance with the
set aside or refuse the enforcement of agreement of the parties, unless
the arbitral award only if: such agreement was in conflict
with a provision of Philippine law
from which the parties cannot
derogate, or, failing such
a. The party making the application agreement, was not in
furnishes proof that: accordance with Philippine law;

(i) A party to the arbitration b. The court finds that:

. agreement was under some
incapacity, or the said agreement
is not valid under the law to
which the parties have subjected (i) The subject-matter of the
it or, failing any indication . dispute is not capable of
thereof, under Philippine law; or settlement by arbitration under
the law of the Philippines; or
(ii The party making the application
). to set aside or resist (ii The recognition or enforcement
enforcement was not given ). of the award would be contrary
proper notice of the appointment to public policy.
of an arbitrator or of the arbitral
proceedings or was otherwise
unable to present his case; or
In deciding the petition, the Court
(iii The award deals with a dispute shall disregard any other ground to
). not contemplated by or not set aside or enforce the arbitral award
falling within the terms of the other than those enumerated above.
submission to arbitration, or
contains decisions on matters The petition to set-aside or a pleading
beyond the scope of the resisting the enforcement of an
submission to arbitration; arbitral award on the ground that a
provided that, if the decisions on party was a minor or an incompetent
matters submitted to arbitration shall be filed only on behalf of the
can be separated from those not minor or incompetent and shall allege
so submitted, only that part of that (a) the other party to arbitration
the award which contains had knowingly entered into a
decisions on matters not submission or agreement with such
submitted to arbitration may be minor or incompetent, or (b) the
set aside or only that part of the submission to arbitration was made by
award which contains decisions a guardian or guardian ad litem who
was not authorized to do so by a
competent court. following:

Rule 12.5. Exclusive recourse

against arbitral award. - Recourse to a a. The addresses of
court against an arbitral award shall record, or any change
be made only through a petition to set thereof, of the parties
aside the arbitral award and on to arbitration;
grounds prescribed by the law that
governs international commercial b. A statement that the
arbitration. Any other recourse from arbitration agreement
the arbitral award, such as by appeal or submission exists;
or petition for review or petition for
certiorari or otherwise, shall be c. The names of the
dismissed by the court. arbitrators and proof of
their appointment;
Rule 12.6. Form. - The application to
recognize and enforce or set aside an d. A statement that an
arbitral award, whether made through arbitral award was
a petition to recognize and enforce or issued and when the
to set aside or as a petition to set petitioner received it;
aside the award in opposition thereto, and
or through a petition to set aside or
e. The relief sought.
petition to recognize and enforce in
opposition thereto, shall be verified by
a person who has personal knowledge Apart from other submissions, the
of the facts stated therein. petitioner shall attach to the petition
the following:
When a petition to recognize and
enforce an arbitral award is pending, a. An authentic copy of
the application to set it aside, if not the arbitration
yet time-barred, shall be made agreement;
through a petition to set aside the
same award in the same proceedings. b. An authentic copy of
the arbitral award;
When a timely petition to set aside an
arbitral award is filed, the opposing c. A verification and
party may file a petition for certification against
recognition and enforcement of the forum shopping
same award in opposition thereto. executed by the
applicant in accordance
Rule 12.7. Contents of petition. - (A) with Sections 4 and 5
Petition to recognize and enforce. - of Rule 7 of the Rules
The petition to recognize and enforce of Court; and
or petition to set aside in opposition
thereto, or petition to set aside or d. An authentic copy or
petition to recognize and enforce in authentic copies of the
opposition thereto, shall state the appointment of an
arbitral tribunal.
 petition. In lieu of an opposition, the
(B) Petition to set aside. - The respondent may file a petition to set
petition to set aside or petition to set aside in opposition to a petition to
aside in opposition to a petition to recognize and enforce, or a petition to
recognize and enforce an arbitral recognize and enforce in opposition to
award in international commercial a petition to set aside.
arbitration shall have the same
contents as a petition to recognize and The petitioner may within fifteen (15)
enforce or petition to recognize and days from receipt of the petition to set
enforce in opposition to a petition to aside in opposition to a petition to
set aside an arbitral award. In recognize and enforce, or from receipt
addition, the said petitions should of the petition to recognize and
state the grounds relied upon to set it enforce in opposition to a petition to
aside. set aside, file a reply.

Further, if the ground of the petition Rule 12.9. Submission of

to set aside is that the petitioner is a documents. - If the court finds that
minor or found incompetent by a the issue between the parties is
court, there shall be attached to the mainly one of law, the parties may be
petition certified copies of documents required to submit briefs of legal
showing such fact. In addition, the arguments, not more than fifteen (15)
petitioner shall show that even if the days from receipt of the order,
submission or arbitration agreement sufficiently discussing the legal issues
was entered into by a guardian or and the legal basis for the relief
guardian ad litem, the latter was not prayed for by each of them.
authorized by a competent court to
sign such the submission or arbitration If the court finds from the petition or
agreement. petition in opposition thereto that
there are issues of fact relating to the
In either case, if another court was ground(s) relied upon for the court to
previously requested to resolve and/or set aside, it shall require the parties
has resolved, on appeal, the arbitral within a period of not more than
tribunal’s preliminary determination in fifteen (15) days from receipt of the
favor of its own jurisdiction, the order simultaneously to submit the
petitioner shall apprise the court affidavits of all of their witnesses and
before which the petition to recognize reply affidavits within ten (10) days
and enforce or set aside is pending of from receipt of the affidavits to be
the status of the appeal or its replied to. There shall be attached to
resolution. the affidavits or reply affidavits, all
documents relied upon in support of
Rule 12.8. Notice. - Upon finding the statements of fact in such
that the petition filed under this Rule affidavits or reply affidavits.
is sufficient both in form and in
substance, the court shall cause notice Rule 12.10. Hearing. - If on the
and a copy of the petition to be basis of the petition, the opposition,
delivered to the respondent directing the affidavits and reply affidavits of
him to file an opposition thereto within the parties, the court finds that there
fifteen (15) days from receipt of the is a need to conduct an oral hearing,
the court shall set the case for Rule 12.12. Presumption in favor of
hearing. This case shall have confirmation. - It is presumed that an
preference over other cases before the arbitral award was made and released
court, except criminal cases. During in due course and is subject to
the hearing, the affidavits of witnesses enforcement by the court, unless the
shall take the place of their direct adverse party is able to establish a
testimonies and they shall ground for setting aside or not
immediately be subject to enforcing an arbitral award.
cross-examination thereon. The court
shall have full control over the Rule 12.13. Judgment of the court. -
proceedings in order to ensure that Unless a ground to set aside an
the case is heard without undue delay. arbitral award under Rule 12.4 above
is fully established, the court shall
Rule 12.11. Suspension of dismiss the petition. If, in the same
proceedings to set aside. - The court proceedings, there is a petition to
when asked to set aside an arbitral recognize and enforce the arbitral
award may, where appropriate and award filed in opposition to the
upon request by a party, suspend the petition to set aside, the court shall
proceedings for a period of time recognize and enforce the award.
determined by it to give the arbitral
tribunal an opportunity to resume the In resolving the petition or petition in
arbitral proceedings or to take such opposition thereto in accordance with
other action as in the arbitral the Special ADR Rules, the court shall
tribunal’s opinion will eliminate the either set aside or enforce the arbitral
grounds for setting aside. The court, award. The court shall not disturb the
in referring the case back to the arbitral tribunal’s determination of
arbitral tribunal may not direct it to facts and/or interpretation of law.
revise its award in a particular way, or
to revise its findings of fact or Rule 12.14. Costs. - Unless
conclusions of law or otherwise otherwise agreed upon by the parties
encroach upon the independence of an in writing, at the time the case is
arbitral tribunal in the making of a submitted to the court for decision,
final award. the party praying for recognition and
enforcement or setting aside of an
The court when asked to set aside an arbitral award shall submit a
arbitral award may also, when the statement under oath confirming the
preliminary ruling of an arbitral costs he has incurred only in the
tribunal affirming its jurisdiction to act proceedings for such recognition and
on the matter before it had been enforcement or setting aside. The
appealed by the party aggrieved by costs shall include the attorney’s fees
such preliminary ruling to the court, the party has paid or is committed to
suspend the proceedings to set aside pay to his counsel of record.
to await the ruling of the court on
such pending appeal or, in the The prevailing party shall be entitled
alternative, consolidate the to an award of costs, which shall
proceedings to set aside with the include reasonable attorney’s fees of
earlier appeal. the prevailing party against the
unsuccessful party. The court shall
determine the reasonableness of the New York Convention as if it were a
claim for attorney’s fees. Convention Award.

RULE 13: RECOGNITION AND A Philippine court shall not set aside a
ENFORCEMENT OF A FOREIGN foreign arbitral award but may refuse
ARBITRAL AWARD it recognition and enforcement on any
or all of the following grounds:

Rule 13.1. Who may request a. The party making the application to
recognition and enforcement. - Any refuse recognition and enforcement of
party to a foreign arbitration may the award furnishes proof that:
petition the court to recognize and
enforce a foreign arbitral award. (i). A party to the arbitration
agreement was under some
Rule 13.2. When to petition. - At any incapacity; or the said agreement is
time after receipt of a foreign arbitral not valid under the law to which the
award, any party to arbitration may parties have subjected it or, failing any
petition the proper Regional Trial Court indication thereof, under the law of
to recognize and enforce such award. the country where the award was
made; or
Rule 13.3. Venue. - The petition to
recognize and enforce a foreign (ii). The party making the
arbitral award shall be filed, at the application was not given proper
option of the petitioner, with the notice of the appointment of an
Regional Trial Court (a) where the arbitrator or of the arbitral
assets to be attached or levied upon is proceedings or was otherwise unable
located, (b) where the act to be to present his case; or
enjoined is being performed, (c) in the
principal place of business in the (iii). The award deals with a
Philippines of any of the parties, (d) if dispute not contemplated by or not
any of the parties is an individual, falling within the terms of the
where any of those individuals resides, submission to arbitration, or contains
or (e) in the National Capital Judicial decisions on matters beyond the scope
Region. of the submission to arbitration;
provided that, if the decisions on
Rule 13.4. Governing law and matters submitted to arbitration can
grounds to refuse recognition and be separated from those not so
enforcement. - The recognition and submitted, only that part of the award
enforcement of a foreign arbitral which contains decisions on matters
award shall be governed by the 1958 not submitted to arbitration may be
New York Convention on the set aside; or
Recognition and Enforcement of
Foreign Arbitral Awards (the "New (iv). The composition of the
York Convention") and this Rule. The arbitral tribunal or the arbitral
court may, upon grounds of comity procedure was not in accordance with
and reciprocity, recognize and enforce the agreement of the parties or, failing
a foreign arbitral award made in a such agreement, was not in
country that is not a signatory to the accordance with the law of the country
where arbitration took place; or If the foreign arbitral award or
agreement to arbitrate or submission
(v). The award has not yet is not made in English, the petitioner
become binding on the parties or has shall also attach to the petition a
been set aside or suspended by a translation of these documents into
court of the country in which that English. The translation shall be
award was made; or certified by an official or sworn
translator or by a diplomatic or
b. The court finds that: consular agent.

(i). The subject-matter of the Rule 13.6. Notice and opposition. -

dispute is not capable of settlement or Upon finding that the petition filed
resolution by arbitration under under this Rule is sufficient both in
Philippine law; or form and in substance, the court shall
cause notice and a copy of the petition
(ii). The recognition or to be delivered to the respondent
enforcement of the award would be allowing him to file an opposition
contrary to public policy. thereto within thirty (30) days from
receipt of the notice and petition.
The court shall disregard any
ground for opposing the recognition Rule 13.7. Opposition. - The
and enforcement of a foreign arbitral opposition shall be verified by a
award other than those enumerated person who has personal knowledge of
above. the facts stated therein.

Rule 13.5. Contents of petition. - Rule 13.8. Submissions. - If the

The petition shall state the following: court finds that the issue between the
parties is mainly one of law, the
a. The addresses of the parties parties may be required to submit
to arbitration; briefs of legal arguments, not more
b. In the absence of any than thirty (30) days from receipt of
indication in the award, the country the order, sufficiently discussing the
where the arbitral award was made legal issues and the legal bases for the
and whether such country is a relief prayed for by each other.
signatory to the New York Convention;
and If, from a review of the petition or
c. The relief sought. opposition, there are issues of fact
relating to the ground/s relied upon
Apart from other submissions, for the court to refuse enforcement,
the petition shall have attached to it the court shall, motu proprio or upon
the following: request of any party, require the
parties to simultaneously submit the
a. An authentic copy of affidavits of all of their witnesses
the arbitration within a period of not less than fifteen
agreement; and (15) days nor more than thirty (30)
days from receipt of the order. The
b. An authentic copy of court may, upon the request of any
the arbitral award. party, allow the submission of reply
affidavits within a period of not less award under this rule is fully
than fifteen (15) days nor more than established.
thirty (30) days from receipt of the
order granting said request. There The decision of the court recognizing
shall be attached to the affidavits or and enforcing a foreign arbitral award
reply affidavits all documents relied is immediately executory.
upon in support of the statements of
fact in such affidavits or reply In resolving the petition for
affidavits. recognition and enforcement of a
foreign arbitral award in accordance
Rule 13.9. Hearing. - The court shall with these Special ADR Rules, the
set the case for hearing if on the basis court shall either [a] recognize and/or
of the foregoing submissions there is a enforce or [b] refuse to recognize and
need to do so. The court shall give due enforce the arbitral award. The court
priority to hearings on petitions under shall not disturb the arbitral tribunal’s
this Rule. During the hearing, the determination of facts and/or
affidavits of witnesses shall take the interpretation of law.
place of their direct testimonies and
they shall immediately be subject to Rule 13.12. Recognition and
cross-examination. The court shall enforcement of non-convention award.
have full control over the proceedings - The court shall, only upon grounds
in order to ensure that the case is provided by these Special ADR Rules,
heard without undue delay. recognize and enforce a foreign
arbitral award made in a country not a
Rule 13.10. Adjournment/deferment signatory to the New York Convention
of decision on enforcement of award. - when such country extends comity
The court before which a petition to and reciprocity to awards made in the
recognize and enforce a foreign Philippines. If that country does not
arbitral award is pending, may adjourn extend comity and reciprocity to
or defer rendering a decision thereon awards made in the Philippines, the
if, in the meantime, an application for court may nevertheless treat such
the setting aside or suspension of the award as a foreign judgment
award has been made with a enforceable as such under Rule 39,
competent authority in the country Section 48, of the Rules of Court.
where the award was made. Upon
application of the petitioner, the court PART III
may also require the other party to PROVISIONS SPECIFIC TO
give suitable security. MEDIATION

Rule 13.11. Court action. - It is RULE 14: GENERAL

presumed that a foreign arbitral award PROVISIONS
was made and released in due course
of arbitration and is subject to
enforcement by the court. Rule 14.1. Application of the rules on
The court shall recognize and enforce arbitration. - Whenever applicable and
a foreign arbitral award unless a appropriate, the pertinent rules on
ground to refuse recognition or arbitration shall be applied in
enforcement of the foreign arbitral
proceedings before the court relative agreement, which was deposited with
to a dispute subject to mediation. the Clerk of Court of the Regional Trial
Court, may, upon breach thereof, file a
RULE 15: DEPOSIT AND verified petition with the same court to
ENFORCEMENT OF MEDIATED enforce said agreement.
SETTLEMENT AGREEMENTS
Rule 15.6. Contents of petition. -
The verified petition shall:
Rule 15.1. Who makes a deposit. -
Any party to a mediation that is not
court-annexed may deposit with the
court the written settlement a. Name and designate, as petitioner
agreement, which resulted from that or respondent, all parties to the
mediation. mediated settlement agreement
and those who may be affected by
Rule 15.2. When deposit is made. - it;
At any time after an agreement is
reached, the written settlement b. State the following:
agreement may be deposited.
(i) The addresses of the petitioner
Rule 15.3. Venue. - The written . and respondents; and
settlement agreement may be jointly
deposited by the parties or deposited (ii The ultimate facts that would
by one party with prior notice to the ). show that the adverse party has
other party/ies with the Clerk of Court defaulted to perform its
of the Regional Trial Court (a) where obligation under said agreement;
the principal place of business in the and
Philippines of any of the parties is
located; (b) if any of the parties is an
individual, where any of those
c. Have attached to it the following:
individuals resides; or (c) in the
National Capital Judicial Region.

Rule 15.4. Registry Book. - The (i) An authentic copy of the

Clerk of Court of each Regional Trial . mediated settlement agreement;
Court shall keep a Registry Book that and
shall chronologically list or enroll all
the mediated settlement (ii Certificate of Deposit showing
agreements/settlement awards that ). that the mediated settlement
are deposited with the court as well as agreement was deposited with
the names and address of the parties the Clerk of Court.
thereto and the date of enrollment
and shall issue a Certificate of Deposit
to the party that made the deposit. Rule 15.7. Opposition. - The adverse
party may file an opposition, within
Rule 15.5. Enforcement of mediated fifteen (15) days from receipt of notice
settlement agreement. - Any of the or service of the petition, by
parties to a mediated settlement submitting written proof of compliance
with the mediated settlement court a written agreement making the
agreement or such other affirmative court, rather than the CIAC, the body
or negative defenses it may have. that would exclusively resolve the
dispute.
Rule 15.8. Court action. - After a
summary hearing, if the court finds Rule 17.2. Form and contents of
that the agreement is a valid mediated motion. - The request for dismissal of
settlement agreement, that there is no the civil action and referral to
merit in any of the affirmative or arbitration shall be through a verified
negative defenses raised, and the motion that shall (a) contain a
respondent has breached that statement showing that the dispute is
agreement, in whole or in part, the a construction dispute; and (b) be
court shall order the enforcement accompanied by proof of the existence
thereof; otherwise, it shall dismiss the of the arbitration agreement.
petition.
If the arbitration agreement or other
PART IV document evidencing the existence of
PROVISIONS SPECIFIC TO that agreement is already part of the
CONSTRUCTION ARBITRATION record, those documents need not be
submitted to the court provided that
the movant has cited in the motion
particular references to the records
RULE 16: GENERAL PROVISIONS where those documents may be
found.
Rule 16.1. Application of the rules on The motion shall also contain a notice
arbitration. - Whenever applicable and of hearing addressed to all parties and
appropriate, the rules on arbitration shall specify the date and time when
shall be applied in proceedings before the motion will be heard, which must
the court relative to a dispute subject not be later than fifteen (15) days
to construction arbitration. after the filing of the motion. The
movant shall ensure receipt by all
RULE 17: REFERRAL TO CIAC
parties of the motion at least three
days before the date of the hearing.
Rule 17.1. Dismissal of action. - A
Regional Trial Court before which a Rule 17.3. Opposition. - Upon receipt
construction dispute is filed shall, of the motion to refer the dispute to
upon becoming aware that the parties arbitration by CIAC, the other party
have entered into an arbitration may file an opposition to the motion
agreement, motu proprio or upon on or before the day such motion is to
motion made not later than the be heard. The opposition shall clearly
pre-trial, dismiss the case and refer set forth the reasons why the court
the parties to arbitration to be should not dismiss the case.
conducted by the Construction
Industry Arbitration Commission Rule 17.4. Hearing. - The court shall
(CIAC), unless all parties to hear the motion only once and for the
arbitration, assisted by their purpose of clarifying relevant factual
respective counsel, submit to the and legal issues.
 c. The issues raised
Rule 17.5. Court action. - If the in the civil action could
other parties fail to file their be speedily and
opposition on or before the day of the efficiently resolved in
hearing, the court shall motu proprio its entirety by the
resolve the motion only on the basis of Court rather than in
the facts alleged in the motion. arbitration;

After hearing, the court shall dismiss d. Referral to

the civil action and refer the parties to arbitration does not
arbitration if it finds, based on the appear to be the most
pleadings and supporting documents prudent action; or
submitted by the parties, that there is
a valid and enforceable arbitration e. Dismissal of the civil
agreement involving a construction action would prejudice
dispute. Otherwise, the court shall the rights of the parties
proceed to hear the case. to the civil action who
are not bound by the
All doubts shall be resolved in favor of arbitration agreement.
the existence of a construction dispute
and the arbitration agreement.
The court may, however, issue an
Rule 17.6. Referral immediately order directing the inclusion in
executory. - An order dismissing the arbitration of those parties who are
case and referring the dispute to bound by the arbitration agreement
arbitration by CIAC shall be directly or by reference thereto
immediately executory. pursuant to Section 34 of Republic Act
No. 9285.
Rule 17.7. Multiple actions and
parties. - The court shall not decline to Furthermore, the court shall issue an
dismiss the civil action and make a order directing the case to proceed
referral to arbitration by CIAC for any with respect to the parties not bound
of the following reasons: by the arbitration agreement.

a. Not all of the Rule 17.8. Referral - If the parties

disputes subject of the manifest that they have agreed to
civil action may be submit all or part of their dispute
referred to arbitration; pending with the court to arbitration
by CIAC, the court shall refer them to
b. Not all of the parties CIAC for arbitration.
to the civil action are
bound by the PART V
arbitration agreement PROVISIONS SPECIFIC TO
and referral to OTHER FORMS OF ADR
arbitration would result
in multiplicity of suits; RULE 18: GENERAL
PROVISIONS
 possibility of compromise is shown.
Rule 18.1. Applicability of rules to
other forms of ADR. - This rule Rule 18.5. Submission of settlement
governs the procedure for matters agreement. - Either party may submit
brought before the court involving the to the court, before which the case is
following forms of ADR: pending, any settlement agreement
following a neutral or an early neutral
a. Early neutral evaluation, mini-trial or
evaluation; mediation-arbitration.

b. Neutral evaluation; PART VI

MOTION FOR
c. Mini-trial; RECONSIDERATION, APPEAL AND
CERTIORARI
d.
Mediation-arbitration; RULE 19: MOTION FOR
RECONSIDERATION, APPEAL AND
e. A combination CERTIORARI
thereof; or
A. MOTION FOR
f. Any other ADR
RECONSIDERATION
form.

Rule 18.2. Applicability of the rules

Rule 19.1. Motion for
on mediation. - If the other ADR
reconsideration, when allowed. - A
form/process is more akin to
party may ask the Regional Trial to
mediation (i.e., the neutral third party
reconsider its ruling on the following:
merely assists the parties in reaching
a voluntary agreement), the herein a. That the arbitration
rules on mediation shall apply. agreement is
inexistent, invalid or
Rule 18.3. Applicability of rules on unenforceable pursuant
arbitration.-If the other ADR to Rule 3.10 (B);
form/process is more akin to
arbitration (i.e., the neutral third party b. Upholding or
has the power to make a binding reversing the arbitral
resolution of the dispute), the herein tribunal’s jurisdiction
rules on arbitration shall apply. pursuant to Rule 3.19;

Rule 18.4. Referral. - If a dispute is c. Denying a request

already before a court, either party to refer the parties to
may before and during pre-trial, file a arbitration;
motion for the court to refer the
parties to other ADR forms/processes. d. Granting or denying
At any time during court proceedings, a party an interim
even after pre-trial, the parties may measure of protection;
jointly move for suspension of the
action pursuant to Article 2030 of the
Civil Code of the Philippines where the
e. Denying a petition m. Declining a request
for the appointment of for assistance in taking
an arbitrator; evidence;

f. Refusing to grant n. Adjourning or

assistance in taking deferring a ruling on a
evidence; petition to set aside,
recognize and/or
g. Enjoining or refusing enforce an
to enjoin a person from international
divulging confidential commercial arbitral
information; award;

h. Confirming, vacating o. Recognizing and/or

or correcting a enforcing a foreign
domestic arbitral arbitral award, or
award; refusing recognition
and/or enforcement of
i. Suspending the the same; and
proceedings to set
aside an international p. Granting or
commercial arbitral dismissing a petition to
award and referring enforce a deposited
the case back to the mediated settlement
arbitral tribunal; agreement.

j. Setting aside an
international No motion for reconsideration shall be
commercial arbitral allowed from the following rulings of
award; the Regional Trial Court:

k. Dismissing the a. A prima facie

petition to set aside an determination
international upholding the
commercial arbitral existence, validity or
award, even if the enforceability of an
court does not arbitration agreement
recognize and/or pursuant to Rule 3.1
enforce the same; (A);

l. Recognizing and/or b. An order referring

enforcing, or the dispute to
dismissing a petition to arbitration;
recognize and/or
enforce an c. An order
international appointing an
commercial arbitral arbitrator;
award;
 d. Any ruling on the allowed a second motion for
challenge to the reconsideration.
appointment of an
arbitrator; B. GENERAL PROVISIONS ON
APPEAL AND CERTIORARI
e. Any order resolving
the issue of the
termination of the Rule 19.7. No appeal or certiorari on
mandate of an the merits of an arbitral award. - An
arbitrator; and agreement to refer a dispute to
arbitration shall mean that the arbitral
f. An order granting award shall be final and binding.
assistance in taking Consequently, a party to an arbitration
evidence. is precluded from filing an appeal or a
petition for certiorari questioning the
merits of an arbitral award.
Rule 19.2. When to move for
reconsideration. - A motion for Rule 19.8. Subject matter and
reconsideration may be filed with the governing rules. - The remedy of an
Regional Trial Court within a appeal through a petition for review or
non-extendible period of fifteen (15) the remedy of a special civil action of
days from receipt of the questioned certiorari from a decision of the
ruling or order. Regional Trial Court made under the
Special ADR Rules shall be allowed in
Rule 19.3. Contents and notice. - the instances, and instituted only in
The motion shall be made in writing the manner, provided under this Rule.
stating the ground or grounds therefor
and shall be filed with the court and Rule 19.9. Prohibited alternative
served upon the other party or remedies. - Where the remedies of
parties. appeal and certiorari are specifically
made available to a party under the
Rule 19.4. Opposition or comment. - Special ADR Rules, recourse to one
Upon receipt of the motion for remedy shall preclude recourse to the
reconsideration, the other party or other.
parties shall have a non-extendible
period of fifteen (15) days to file his Rule 19.10. Rule on judicial review
opposition or comment. on arbitration in the Philippines. - As a
general rule, the court can only vacate
Rule 19.5. Resolution of motion. - A or set aside the decision of an arbitral
motion for reconsideration shall be tribunal upon a clear showing that the
resolved within thirty (30) days from award suffers from any of the
receipt of the opposition or comment infirmities or grounds for vacating an
or upon the expiration of the period to arbitral award under Section 24 of
file such opposition or comment. Republic Act No. 876 or under Rule 34
of the Model Law in a domestic
Rule 19.6. No second motion for arbitration, or for setting aside an
reconsideration. - No party shall be award in an international arbitration
under Article 34 of the Model Law, or
for such other grounds provided under c. Denying a petition
these Special Rules. for assistance in taking
evidence;
If the Regional Trial Court is asked to
set aside an arbitral award in a d. Enjoining or refusing
domestic or international arbitration to enjoin a person from
on any ground other than those divulging confidential
provided in the Special ADR Rules, the information;
court shall entertain such ground for
the setting aside or non-recognition of e. Confirming, vacating
the arbitral award only if the same or correcting/modifying
amounts to a violation of public policy. a domestic arbitral
award;
The court shall not set aside or vacate
the award of the arbitral tribunal f. Setting aside an
merely on the ground that the arbitral international
tribunal committed errors of fact, or of commercial arbitration
law, or of fact and law, as the court award;
cannot substitute its judgment for that
of the arbitral tribunal. g. Dismissing the
petition to set aside an
Rule 19.11. Rule on judicial review international
of foreign arbitral award. - The court commercial arbitration
can deny recognition and enforcement award even if the court
of a foreign arbitral award only upon does not decide to
the grounds provided in Article V of recognize or enforce
the New York Convention, but shall such award;
have no power to vacate or set aside a
h. Recognizing and/or
foreign arbitral award.
enforcing an
C. APPEALS TO THE COURT international
OF APPEALS commercial arbitration
award;

Rule 19.12. Appeal to the Court of i. Dismissing a

Appeals. - An appeal to the Court of petition to enforce an
Appeals through a petition for review international
under this Special Rule shall only be commercial arbitration
allowed from the following final orders award;
of the Regional Trial Court:
j. Recognizing and/or
a. Granting or denying enforcing a foreign
an interim measure of arbitral award;
protection;
k. Refusing recognition
b. Denying a petition and/or enforcement of
for appointment of an a foreign arbitral
arbitrator; award;
 l. Granting or setting forth valid grounds therefor. If
dismissing a petition to the Court of Appeals denies the
enforce a deposited motion, the petitioner shall pay the
mediated settlement docketing and other lawful fees and
agreement; and deposit for costs within fifteen days
from the notice of the denial.
m. Reversing the ruling
of the arbitral tribunal Rule 19.16. Contents of the Petition.
upholding its - The petition for review shall (a) state
jurisdiction. the full names of the parties to the
case, without impleading the court or
agencies either as petitioners or
Rule 19.13. Where to appeal. - An respondent, (b) contain a concise
appeal under this Rule shall be taken statement of the facts and issues
to the Court of Appeals within the involved and the grounds relied upon
period and in the manner herein for the review, (c) be accompanied by
provided. a clearly legible duplicate original or a
certified true copy of the decision or
Rule 19.14. When to appeal. - The resolution of the Regional Trial Court
petition for review shall be filed within appealed from, together with certified
fifteen (15) days from notice of the true copies of such material portions
decision of the Regional Trial Court or of the record referred to therein and
the denial of the petitioner’s motion other supporting papers, and (d)
for reconsideration. contain a sworn certification against
forum shopping as provided in the
Rule 19.15. How appeal taken. - Rules of Court. The petition shall state
Appeal shall be taken by filing a the specific material dates showing
verified petition for review in seven that it was filed within the period fixed
(7) legible copies with the Court of herein.
Appeals, with proof of service of a
copy thereof on the adverse party and Rule 19.17. Effect of failure to
on the Regional Trial Court. The comply with requirements. - The court
original copy of the petition intended shall dismiss the petition if it fails to
for the Court of Appeals shall be comply with the foregoing
marked original by the petitioner. requirements regarding the payment
of the docket and other lawful fees,
Upon the filing of the petition and the deposit for costs, proof of service
unless otherwise prescribed by the of the petition, the contents and the
Court of Appeals, the petitioner shall documents, which should accompany
pay to the clerk of court of the Court the petition.
of Appeals docketing fees and other
lawful fees of P3,500.00 and deposit Rule 19.18. Action on the petition. -
the sum of P500.00 for costs. The Court of Appeals may require the
respondent to file a comment on the
Exemption from payment of docket petition, not a motion to dismiss,
and other lawful fees and the deposit within ten (10) days from notice, or
for costs may be granted by the Court dismiss the petition if it finds, upon
of Appeals upon a verified motion consideration of the grounds alleged
and the legal briefs submitted by the Appeals may require or permit
parties, that the petition does not subsequent correction of or addition to
appear to be prima facie meritorious. the record.

Rule 19.19. Contents of Comment. - Rule 19.22. Effect of appeal. - The

The comment shall be filed within ten appeal shall not stay the award,
(10) days from notice in seven (7) judgment, final order or resolution
legible copies and accompanied by sought to be reviewed unless the
clearly legible certified true copies of Court of Appeals directs otherwise
such material portions of the record upon such terms as it may deem just.
referred to therein together with other
supporting papers. The comment shall Rule 19.23. Submission for decision.
(a) point out insufficiencies or - If the petition is given due course,
inaccuracies in petitioner’s statement the Court of Appeals may set the case
of facts and issues, and (b) state the for oral argument or require the
reasons why the petition should be parties to submit memoranda within a
denied or dismissed. A copy thereof period of fifteen (15) days from
shall be served on the petitioner, and notice. The case shall be deemed
proof of such service shall be filed with submitted for decision upon the filing
the Court of Appeals. of the last pleading or memorandum
required by the Court of Appeals.
Rule 19.20. Due course. - If upon
the filing of a comment or such other The Court of Appeals shall render
pleading or documents as may be judgment within sixty (60) days from
required or allowed by the Court of the time the case is submitted for
Appeals or upon the expiration of the decision.
period for the filing thereof, and on
the basis of the petition or the Rule 19.24. Subject of appeal
records, the Court of Appeals finds restricted in certain instance. - If the
prima facie that the Regional Trial decision of the Regional Trial Court
Court has committed an error that refusing to recognize and/or enforce,
would warrant reversal or modification vacating and/or setting aside an
of the judgment, final order, or arbitral award is premised on a finding
resolution sought to be reviewed, it of fact, the Court of Appeals may
may give due course to the petition; inquire only into such fact to
otherwise, it shall dismiss the same. determine the existence or
non-existence of the specific ground
Rule 19.21. Transmittal of records. - under the arbitration laws of the
Within fifteen (15) days from notice Philippines relied upon by the Regional
that the petition has been given due Trial Court to refuse to recognize
course, the Court of Appeals may and/or enforce, vacate and/or set
require the court or agency concerned aside an award. Any such inquiry into
to transmit the original or a legible a question of fact shall not be resorted
certified true copy of the entire record to for the purpose of substituting the
of the proceeding under review. The court’s judgment for that of the
record to be transmitted may be arbitral tribunal as regards the latter’s
abridged by agreement of all parties ruling on the merits of the
to the proceeding. The Court of controversy.
 b. Reversing the
Rule 19.25. Party appealing decision arbitral tribunal’s
of court confirming arbitral award preliminary
required to post bond. - The Court of determination
Appeals shall within fifteen (15) days upholding its
from receipt of the petition require the jurisdiction;
party appealing from the decision or a
final order of the Regional Trial Court, c. Denying the
either confirming or enforcing an request to refer the
arbitral award, or denying a petition to dispute to arbitration;
set aside or vacate the arbitral award
to post a bond executed in favor of the d. Granting or refusing
prevailing party equal to the amount an interim relief;
of the award.
e. Denying a petition
Failure of the petitioner to post such for the appointment of
bond shall be a ground for the Court an arbitrator;
of Appeals to dismiss the petition.
f. Confirming,
D. SPECIAL CIVIL ACTION vacating or correcting a
FOR CERTIORARI domestic arbitral
award;

Rule 19.26. Certiorari to the Court of g. Suspending the

Appeals. - When the Regional Trial proceedings to set
Court, in making a ruling under the aside an international
Special ADR Rules, has acted without commercial arbitral
or in excess of its jurisdiction, or with award and referring
grave abuse of discretion amounting the case back to the
to lack or excess of jurisdiction, and arbitral tribunal;
there is no appeal or any plain,
speedy, and adequate remedy in the h. Allowing a party to
ordinary course of law, a party may enforce an
file a special civil action for certiorari international
to annul or set aside a ruling of the commercial arbitral
Regional Trial Court. award pending appeal;

i. Adjourning or
A special civil action for
deferring a ruling on
certiorari may be filed against the
whether to set aside,
following orders of the court.
recognize and or
enforce an
a. Holding that the international
arbitration agreement commercial arbitral
is inexistent, invalid or award;
unenforceable;
j. Allowing a party to
enforce a foreign
 arbitral award pending nominal party in the petition for
appeal; and certiorari. As nominal party, the
arbitral tribunal shall not be required
k. Denying a petition to submit any pleadings or written
for assistance in taking submissions to the court. The arbitral
evidence. tribunal or an arbitrator may, however,
submit such pleadings or written
submissions if the same serves the
Rule 19.27. Form. - The petition interest of justice.
shall be accompanied by a certified
true copy of the questioned judgment, In petitions relating to the recognition
order or resolution of the Regional and enforcement of a foreign arbitral
Trial Court, copies of all pleadings and award, the arbitral tribunal shall not
documents relevant and pertinent be included even as a nominal party.
thereto, and a sworn certification of However, the tribunal may be notified
non-forum shopping as provided in the of the proceedings and furnished with
Rules of Court. court processes.

Upon the filing of the petition and Rule 19.30. Court to dismiss
unless otherwise prescribed by the petition. - The court shall dismiss the
Court of Appeals, the petitioner shall petition if it fails to comply with Rules
pay to the clerk of court of the Court 19.27 and 19.28 above, or upon
of Appeals docketing fees and other consideration of the ground alleged
lawful fees of P3,500.00 and deposit and the legal briefs submitted by the
the sum of P500.00 for costs. parties, the petition does not appear
Exemption from payment of docket to be prima facie meritorious.
and other lawful fees and the deposit
for costs may be granted by the Court Rule 19.31. Order to comment. - If
of Appeals upon a verified motion the petition is sufficient in form and
setting forth valid grounds therefor. If substance to justify such process, the
the Court of Appeals denies the Court of Appeals shall immediately
motion, the petitioner shall pay the issue an order requiring the
docketing and other lawful fees and respondent or respondents to
deposit for costs within fifteen days comment on the petition within a
from the notice of the denial. non-extendible period of fifteen (15)
days from receipt of a copy thereof.
Rule 19.28. When to file petition. - Such order shall be served on the
The petition must be filed with the respondents in such manner as the
Court of Appeals within fifteen (15) court may direct, together with a copy
days from notice of the judgment, of the petition and any annexes
order or resolution sought to be thereto.
annulled or set aside. No extension of
time to file the petition shall be Rule 19.32. Arbitration may continue
allowed. despite petition for certiorari. - A
petition for certiorari to the court from
Rule 19.29. Arbitral tribunal a the action of the appointing authority
nominal party in the petition. - The or the arbitral tribunal allowed under
arbitral tribunal shall only be a this Rule shall not prevent the arbitral
tribunal from continuing the aggrieved party. The following, while
proceedings and rendering its award. neither controlling nor fully measuring
Should the arbitral tribunal continue the court's discretion, indicate the
with the proceedings, the arbitral serious and compelling, and
proceedings and any award rendered necessarily, restrictive nature of the
therein will be subject to the final grounds that will warrant the exercise
outcome of the pending petition for of the Supreme Court’s discretionary
certiorari. powers, when the Court of Appeals:

Rule 19.33. Prohibition against

injunctions. - The Court of Appeals a. Failed to apply the
shall not, during the pendency of the applicable standard or
proceedings before it, prohibit or test for judicial review
enjoin the commencement of prescribed in these
arbitration, the constitution of the Special ADR Rules in
arbitral tribunal, or the continuation of arriving at its decision
arbitration. resulting in substantial
prejudice to the
Rule 19.34. Proceedings after aggrieved party;
comment is filed. - After the comment
is filed, or the time for the filing b. Erred in upholding a
thereof has expired, the court shall final order or decision
render judgment granting the relief despite the lack of
prayed for or to which the petitioner is jurisdiction of the court
entitled, or denying the same, within a that rendered such
non-extendible period of fifteen (15) final order or decision;
days.
c. Failed to apply any
Rule 19.35. Service and provision, principle,
enforcement of order or judgment. - A policy or rule contained
certified copy of the judgment in these Special ADR
rendered in accordance with the last Rules resulting in
preceding section shall be served upon substantial prejudice to
the Regional Trial Court concerned in the aggrieved party;
such manner as the Court of Appeals and
may direct, and disobedience thereto
shall be punished as contempt. d. Committed an error
so egregious and
E. APPEAL BY CERTIORARI harmful to a party as
TO THE SUPREME COURT to amount to an
undeniable excess of
jurisdiction.
Rule 19.36. Review discretionary. -
A review by the Supreme Court is not
a matter of right, but of sound judicial The mere fact that the petitioner
discretion, which will be granted only disagrees with the Court of Appeals’
for serious and compelling reasons determination of questions of fact, of
resulting in grave prejudice to the law or both questions of fact and law,
shall not warrant the exercise of the an extension of thirty (30) days only
Supreme Court’s discretionary power. within which to file the petition.
The error imputed to the Court of
Appeals must be grounded upon any Rule 19.39. Docket and other lawful
of the above prescribed grounds for fees; proof of service of petition. -
review or be closely analogous Unless he has theretofore done so or
thereto. unless the Supreme Court orders
otherwise, the petitioner shall pay
A mere general allegation that the docket and other lawful fees to the
Court of Appeals has committed clerk of court of the Supreme Court of
serious and substantial error or that it P3,500.00 and deposit the amount of
has acted with grave abuse of P500.00 for costs at the time of the
discretion resulting in substantial filing of the petition. Proof of service
prejudice to the petitioner without of a copy thereof on the lower court
indicating with specificity the nature of concerned and on the adverse party
such error or abuse of discretion and shall be submitted together with the
the serious prejudice suffered by the petition.
petitioner on account thereof, shall
constitute sufficient ground for the Rule 19.40. Contents of petition. -
Supreme Court to dismiss outright the The petition shall be filed in eighteen
petition. (18) copies, with the original copy
intended for the court being indicated
Rule 19.37. Filing of petition with as such by the petitioner, and shall (a)
Supreme Court. - A party desiring to state the full name of the appealing
appeal by certiorari from a judgment party as the petitioner and the
or final order or resolution of the Court adverse party as respondent, without
of Appeals issued pursuant to these impleading the lower courts or judges
Special ADR Rules may file with the thereof either as petitioners or
Supreme Court a verified petition for respondents; (b) indicate the material
review on certiorari. The petition shall dates showing when notice of the
raise only questions of law, which judgment or final order or resolution
must be distinctly set forth. subject thereof was received, when a
motion for new trial or
Rule 19.38. Time for filing; reconsideration, if any, was filed and
extension. - The petition shall be filed when notice of the denial thereof was
within fifteen (15) days from notice of received; (c) set forth concisely a
the judgment or final order or statement of the matters involved,
resolution appealed from, or of the and the reasons or arguments relied
denial of the petitioner's motion for on for the allowance of the petition;
new trial or reconsideration filed in (d) be accompanied by a clearly
due time after notice of the judgment. legible duplicate original, or a certified
true copy of the judgment or final
On motion duly filed and served, with order or resolution certified by the
full payment of the docket and other clerk of court of the court a quo and
lawful fees and the deposit for costs the requisite number of plain copies
before the expiration of the thereof, and such material portions of
reglementary period, the Supreme the record as would support the
Court may for justifiable reasons grant petition; and (e) contain a sworn
certification against forum shopping. be as follows:

Rule 19.41. Dismissal or denial of PhP 10,000.00 - if the award

petition. - The failure of the petitioner does not exceed PhP 1,000,000.00
to comply with any of the foregoing PhP 20,000.00 - if the award
requirements regarding the payment does not exceed PhP 20,000,000.00
of the docket and other lawful fees, PhP 30,000.00 - if the award
deposit for costs, proof of service of does not exceed PhP 50,000,000.00
the petition, and the contents of and PhP 40,000.00 - if the award
the documents which should does not exceed PhP 100,000,000.00
accompany the petition shall be PhP 50,000.00 - if the award
sufficient ground for the dismissal exceeds PhP 100,000,000.00
thereof.
The minimal filing fee payable in "all
The Supreme Court may on its own other actions not involving property"
initiative deny the petition on the shall be paid by the petitioner seeking
ground that the appeal is without to enforce foreign arbitral awards
merit, or is prosecuted manifestly for under the New York Convention in the
delay, or that the questions raised Philippines.
therein are too insubstantial to require
consideration. Rule 20.2. Filing fee for action to
enforce as a counter-petition. - A
Rule 19.42. Due course; elevation of petition to enforce an arbitral award in
records. - If the petition is given due a domestic arbitration or in an
course, the Supreme Court may international commercial arbitration
require the elevation of the complete submitted as a petition to enforce
record of the case or specified parts and/or recognize an award in
thereof within fifteen (15) days from opposition to a timely petition to
notice. vacate or set aside the arbitral award
shall require the payment of the filing
PART VII fees prescribed in Rule 20.1 above.
FINAL PROVISIONS
Rule 20.3. Deposit fee for mediated
RULE 20: FILING AND settlement agreements. - Any party to
DEPOSIT FEES a mediated settlement agreement who
deposits it with the clerk of court shall
pay a deposit fee of P500.00.
Rule 20.1. Filing fee in petitions or
counter-petitions to confirm or Rule 20.4. Filing fee for other
enforce, vacate or set aside arbitral proceedings. - The filing fee for the
award or for the enforcement of a filing of any other proceedings,
mediated settlement agreement. - The including applications for interim relief,
filing fee for filing a petition to confirm as authorized under these Special
or enforce, vacate or set aside an Rules not covered under any of the
arbitral award in a domestic foregoing provisions, shall be
arbitration or in an international P10,000.00.
commercial arbitration, or enforce a
mediated settlement agreement shall RULE 21: COSTS
Rule 21.1. Costs. - The costs of the
ADR proceedings shall be borne by the Rule 21.4. Costs. - At the time the
parties equally unless otherwise case is submitted to the court for
agreed upon or directed by the decision, the party praying for
arbitrator or arbitral tribunal. confirmation or vacation of an arbitral
award shall submit a statement under
Rule 21.2. On the dismissal of a oath confirming the costs he has
petition against a ruling of the arbitral incurred only in the proceedings for
tribunal on a preliminary question confirmation or vacation of an arbitral
upholding its jurisdiction. - If the award. The costs shall include the
Regional Trial Court dismisses the attorney’s fees the party has paid or is
petition against the ruling of the committed to pay to his counsel of
arbitral tribunal on a preliminary record.
question upholding its jurisdiction, it
shall also order the petitioner to pay The prevailing party shall be entitled
the respondent all reasonable costs to an award of costs with respect to
and expenses incurred in opposing the the proceedings before the court,
petition. "Costs" shall include which shall include the reasonable
reasonable attorney’s fees. The court attorney’s fees of the prevailing party
shall award costs upon application of against the unsuccessful party. The
the respondent after the petition is court shall determine the
denied and the court finds, based on reasonableness of the claim for
proof submitted by respondent, that attorney’s fees.
the amount of costs incurred is
reasonable. Rule 21.5. Bill of Costs. - Unless
otherwise agreed upon by the parties
Rule 21.3. On recognition and in writing, at the time the case is
enforcement of a foreign arbitral submitted to the court for decision,
award. - At the time the case is the party praying for recognition and
submitted to the court for decision, enforcement or for setting aside an
the party praying for recognition and arbitral award shall submit a
enforcement of a foreign arbitral statement under oath confirming the
award shall submit a statement under costs he has incurred only in the
oath confirming the costs he has proceedings for such recognition and
incurred only in the proceedings in the enforcement or setting-aside. The
Philippines for such recognition and costs shall include attorney’s fees the
enforcement or setting-aside. The party has paid or is committed to pay
costs shall include attorney’s fees the to his counsel of record.
party has paid or is committed to pay
to his counsel of record. The prevailing party shall be entitled
to an award of costs, which shall
The prevailing party shall be entitled include reasonable attorney’s fees of
to an award of costs which shall the prevailing party against the
include the reasonable attorney’s fees unsuccessful party. The court shall
of the prevailing party against the determine the reasonableness of the
unsuccessful party. The court shall claim for attorney’s fees.
determine the reasonableness of the
claim for attorney’s fees. Rule 21.6. Government’s exemption
from payment of fees. - The Republic by the ADR Act, unless the parties
of the Philippines, its agencies and agree otherwise. The Special ADR
instrumentalities are exempt from Rules, however, may not prejudice or
paying legal fees provided in these impair vested rights in accordance
Special ADR Rules. Local governments with law.
and government controlled corporation
with or with or without independent RULE 25: ONLINE DISPUTE
charters are not exempt from paying RESOLUTION
such fees.

RULE 22: APPLICABILITY OF Rule 25.1. Applicability of the Special

THE RULES OF COURT ADR Rules to Online Dispute
Resolution. - Whenever applicable and
appropriate, the Special ADR Rules
Rule 22.1. Applicability of Rules of shall govern the procedure for matters
Court. - The provisions of the Rules of brought before the court involving
Court that are applicable to the Online Dispute Resolution.
proceedings enumerated in Rule 1.1 of
these Special ADR Rules have either Rule 25.2. Scope of Online Dispute
been included and incorporated in Resolution. - Online Dispute
these Special ADR Rules or specifically Resolution shall refer to all electronic
referred to herein. forms of ADR including the use of the
internet and other web or computed
In connection with the above based technologies for facilitating
proceedings, the Rules of Evidence ADR.
shall be liberally construed to achieve
the objectives of the Special ADR RULE 26: EFFECTIVITY
Rules.

RULE 23: SEPARABILITY Rule 26.1. Effectivity. - The Special

ADR Rules shall take effect fifteen (15)
days after its complete publication in
Rule 23.1. Separability Clause. - If, two (2) newspapers of general
for any reason, any part of the Special circulation.
ADR Rules shall be held
unconstitutional or invalid, other Rules RULE A: GUIDELINES FOR
or provisions hereof which are not THE RESOLUTION OF ISSUES
affected thereby, shall continue to be RELATED TO ARBITRATION OF
in full force and effect. LOANS SECURED BY COLLATERAL

RULE 24: TRANSITORY

PROVISIONS Rule A.1. Applicability of an
arbitration agreement in a contract of
loan applies to the accessory contract
Rule 24.1. Transitory Provision. - securing the loan. - An arbitration
Considering its procedural character, agreement in a contract of loan
the Special ADR Rules shall be extends to and covers the accessory
applicable to all pending arbitration, contract securing the loan such as a
mediation or other ADR forms covered pledge or a mortgage executed by the
borrower in favor of the lender under taken by the lender against the
that contract of loan. collateral, pending the constitution of
the arbitral tribunal. Any
Rule A.2. Foreclosure of pledge or determination made by the court in
extra-judicial foreclosure of mortgage that special proceeding pertaining to
not precluded by arbitration. - The the merits of the controversy,
commencement of the arbitral including the right of the lender to
proceeding under the contract of loan proceed against the collateral, shall be
containing an arbitration agreement only provisional in nature.
shall not preclude the lender from
availing himself of the right to obtain After the arbitral tribunal is
satisfaction of the loan under the constituted, the court shall stay its
accessory contract by foreclosure of proceedings and defer to the
the thing pledged or by extra-judicial jurisdiction of the arbitral tribunal over
foreclosure of the collateral under the the entire controversy including any
real estate mortgage in accordance question regarding the right of the
with Act No. 3135. lender to proceed against the
collateral.
The lender may likewise institute
foreclosure proceedings against the Rule A.4. Remedy of borrower
collateral securing the loan prior to the against action taken by the lender
commencement of the arbitral against the collateral after the arbitral
proceeding. tribunal has been constituted. - After
the arbitral tribunal is constituted, the
By agreeing to refer any dispute borrower providing security for the
under the contract of loan to payment of his loan who is aggrieved
arbitration, the lender who is secured by the action taken by the lender
by an accessory contract of real estate against the collateral securing the loan
mortgage shall be deemed to have may apply to the arbitral tribunal for
waived his right to obtain satisfaction relief, including a claim for damages,
of the loan by judicial foreclosure. against such action of the lender. An
application to the court may also be
Rule A.3. Remedy of the borrower made by the borrower against any
against an action taken by the lender action taken by the lender against the
against the collateral before the collateral securing the loan but only if
constitution of the arbitral tribunal. - the arbitral tribunal cannot act
The borrower providing security for effectively to prevent an irreparable
the payment of his loan who is injury to the rights of such borrower
aggrieved by the action taken by the during the pendency of the arbitral
lender against the collateral securing proceeding.
the loan may, if such action against
the collateral is taken before the An arbitration agreement in a
arbitral tribunal is constituted, apply contract of loan precludes the
with the appropriate court for interim borrower therein providing security for
relief against any such action of the the loan from filing and/or proceeding
lender. Such interim relief may be with any action in court to prevent the
obtained only in a special proceeding lender from foreclosing the pledge or
for that purpose, against the action extra-judicially foreclosing the
mortgage. If any such action is filed in disputes arising from or in connection
court, the lender shall have the right with the relationship between the
provided in the Special ADR Rules to lender and the borrower as well as the
have such action stayed on account of relationship between the lender and
the arbitration agreement. such third-party including the right of
the lender to proceed against the
Rule A.5. Relief that may be granted collateral securing the loan, but shall
by the arbitral tribunal. - The arbitral exclude disputes pertaining to the
tribunal, in aid of the arbitral relationship exclusively between the
proceeding before it, may upon borrower and the provider of security
submission of adequate security, such as that involving a claim by the
suspend or enjoin the lender from provider of security for indemnification
proceeding against the collateral against the borrower.
securing the loan pending final
determination by the arbitral tribunal In this multi-party arbitration among
of the dispute brought to it for the lender, the borrower and the third
decision under such contract of loan. party securing the loan, the parties
may agree to submit to arbitration
The arbitral tribunal shall have the before a sole arbitrator or a panel of
authority to resolve the issue of the three arbitrators to be appointed
validity of the foreclosure of the thing either by an Appointing Authority
pledged or of the extrajudicial designated by the parties in the
foreclosure of the collateral under the arbitration agreement or by a default
real estate mortgage if the same has Appointing Authority under the law.
not yet been foreclosed or confirm the
validity of such foreclosure if made In default of an agreement on the
before the rendition of the arbitral manner of appointing arbitrators or of
award and had not been enjoined. constituting the arbitral tribunal in
such multi-party arbitration, the
Rule A.6. Arbitration involving a dispute shall be resolved by a panel of
third-party provider of security. - An three arbitrators to be designated by
arbitration agreement contained in a the Appointing Authority under the
contract of loan between the lender law. But even in default of an
and the borrower extends to and agreement on the manner of
covers an accessory contract securing appointing an arbitrator or constituting
the loan, such as a pledge, mortgage, an arbitral tribunal in a multi-party
guaranty or suretyship, executed by a arbitration, if the borrower and the
person other than the borrower only if third party securing the loan agree to
such third-party securing the loan has designate a common arbitrator,
agreed in the accessory contract, arbitration shall be decided by a panel
either directly or by reference, to be of three arbitrators: one to be
bound by such arbitration agreement. designated by the lender; the other to
be designated jointly by the borrower
Unless otherwise expressly agreed and the provider of security who have
upon by the third-party securing the agreed to designate the same
loan, his agreement to be bound by arbitrator; and a third arbitrator who
the arbitration agreement in the shall serve as the chairperson of the
contract of loan shall pertain to
arbitral panel to be designated by the
two party-designated arbitrators.
 DEPARTMENT CIRCULAR NO. 98 (s.2009)
IMPLEMENTING RULES AND REGULATIONS
OF THE ALTERNATIVE DISPUTE RESOLUTION ACT OF 2004

Whereas, pursuant to Section 52 of Republic Act No. 9285, otherwise known as the
“Alternative Dispute Resolution Act of 2004” (“ADR Act”), the Secretary of Justice is directed to
convene a Committee for the formulation of the appropriate rules and regulations necessary for
the implementation of the ADR Act;

Whereas, the Committee was composed of representatives from the Department of

Justice, the Department of Trade and Industry, the Department of the Interior and Local
Government, the President of the Integrated Bar of the Philippines, a representative from the
arbitration profession, a representative from the mediation profession and a representative from
the ADR organizations.

Wherefore, the following rules and regulations are hereby adopted as the Implementing
Rules and Regulations of Republic Act No. 9285.

IMPLEMENTING RULES AND REGULATIONS OF THE

ALTERNATIVE DISPUTE RESOLUTION ACT OF 2004
(R.A. No. 9285)

Pursuant to Section 52 of Republic Act No. 9285, otherwise known as the “Alternative
Dispute Resolution Act of 2004” (“ADR Act”), the following Rules and Regulations (these “Rules”)
are hereby promulgated to implement the provisions of the ADR Act:

CHAPTER 1
GENERAL PROVISIONS

RULE 1 - Policy and Application

Article 1.1. Purpose. These Rules are promulgated to prescribe the procedures and
guidelines for the implementation of the ADR Act.

Article 1.2. Declaration of Policy. It is the policy of the State:

(a) To promote party autonomy in the resolution of disputes or the freedom

of the parties to make their own arrangements to resolve their disputes;

(b) To encourage and actively promote the use of Alternative Dispute

Resolution (“ADR”) as an important means to achieve speedy and
impartial justice and to declog court dockets;

(c) To provide means for the use of ADR as an efficient tool and an alternative
procedure for the resolution of appropriate cases; and
 (d) To enlist active private sector participation in the settlement of disputes through ADR.

Article 1.3. Exception to the Application of the ADR Act. The provisions of the ADR Act
shall not apply to the resolution or settlement of the following:

(a) labor disputes covered by 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 persons;

(c) the validity of marriage;

(d) any ground for legal separation;

(e) the jurisdiction of courts;

(f) future legitime;

(g) criminal liability;

(h) those disputes which by law cannot be compromised; and

(i) disputes referred to court-annexed mediation.

Article 1.4. Electronic Signatures in Global and E-Commerce Act. The provisions of
the Electronic Signatures in Global and E-Commerce Act, and its Implementing Rules and
Regulations shall apply to proceedings contemplated in the ADR Act.

Article 1.5. Liability of ADR Providers/Practitioners. The ADR providers/practitioners

shall have the same civil liability for acts done in the performance of their official duties as that of
public officers as provided in Section 38(1), Chapter 9, Book I of the Administrative Code of 1987,
upon a clear showing of bad faith, malice or gross negligence.

RULE 2 – Definition of Terms

Article 1.6. Definition of Terms. For purposes of these Rules, the terms shall be defined
as follows:

A. Terms Applicable to all Chapters

1. ADR Provider means the institutions or persons accredited as mediators,
conciliators, arbitrators, neutral evaluators or any person exercising similar
functions in any Alternative Dispute Resolution system. This is without prejudice to
the rights of the parties to choose non-accredited individuals to act as mediator,
conciliator, arbitrator or neutral evaluator of their dispute.

2. Alternative Dispute Resolution System means any process or 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 the ADR Act, in which
a neutral third person participates to assist in the resolution of issues, including
arbitration, mediation, conciliation, early neutral evaluation, mini-trial or any
combination thereof.

3. Arbitration means a voluntary dispute resolution process in which one or more

arbitrators, appointed in accordance with the agreement of the parties or these
Rules, resolve a dispute by rendering an award.

4. Arbitration Agreement means an agreement by the parties to submit to

arbitration all or certain disputes which have arisen or which may arise between
them in respect of a defined legal relationship, whether contractual or not. An
arbitration agreement may be in the form of an arbitration clause in a contract or in
the form of a separate agreement.

5. Authenticate means to sign, execute, adopt a symbol or encrypt a record in whole

or in part, intended to identify the authenticating party and to adopt, accept or
establish the authenticity of a record or term.

6. Award means any partial or final decision by an arbitrator in resolving the issue or
controversy.

7. Confidential Information means any information, relative to the subject of

mediation or arbitration, expressly intended by the source not to be disclosed, or
obtained under circumstances that would create a reasonable expectation on
behalf of the source that the information shall not be disclosed. It shall include:

(a) communication, oral or written, made in a dispute resolution proceeding,

including any memoranda, notes or work product of the neutral party or non-
party participant;

(b) an oral or written statement made or which occurs during mediation or for
purposes of considering, conducting, participating, initiating, continuing or
reconvening mediation or retaining a mediator; and

(c) pleadings, motions, manifestations, witness statements, reports filed or

submitted in arbitration or for expert evaluation.

8. Counsel means a lawyer duly admitted to the practice of law in the Philippines
and in good standing who represents a party in any ADR process.
9. Court means Regional Trial Court except insofar as otherwise defined under the
Model Law.

10. Government Agency means any governmental entity, office or officer, other than
a court, that is vested by law with quasi-judicial power or the power to resolve or
adjudicate disputes involving the government, its agencies and instrumentalities or
private persons.

11. Model Law means the Model Law on International Commercial Arbitration
adopted by the United Nations Commission on International Trade Law on 21 June
1985.

12. Proceedings means a judicial, administrative or other adjudicative process,

including related pre-hearing or post hearing motions, conferences and discovery.

13. Record means information written on a tangible medium or stored in an electronic

or other similar medium, retrievable in a perceivable form.

14. Roster means a list of persons qualified to provide ADR services as neutrals or to
serve as arbitrators.

15. Special ADR Rules means the Special Rules of Court on Alternative Dispute
Resolution issued by the Supreme Court on September 1, 2009.

B. Terms Applicable to the Chapter on Mediation

1. Ad hoc Mediation means any mediation other than institutional or court- annexed.

2. Institutional Mediation means any mediation administered by, and conducted

under the rules of, a mediation institution.

3. Court-Annexed Mediation means any mediation process conducted under the

auspices of the court and in accordance with Supreme Court approved guidelines,
after such court has acquired jurisdiction of the dispute.

4. Court-Referred Mediation means mediation ordered by a court to be conducted

in accordance with the agreement of the parties when an action is prematurely
commenced in violation of such agreement.

5. Certified Mediator means a mediator certified by the Office for ADR as having
successfully completed its regular professional training program.

6. Mediation means a voluntary process in which a mediator, selected by the

disputing parties, facilitates communication and negotiation, and assists the
parties in reaching a voluntary agreement regarding a dispute.
7. Mediation Party means a person who participates in a mediation and whose
consent is necessary to resolve the dispute.

8. Mediator means a person who conducts mediation.

9. Non-Party Participant means a person, other than a party or mediator, who

participates in a mediation proceeding as a witness, resource person or expert.

C. Terms Applicable to the Chapter on International Commercial Arbitration

1. Appointing Authority as used in the Model Law shall mean the person or
institution named in the arbitration agreement as the appointing authority; or the
regular arbitration institution under whose rules the arbitration is agreed to be
conducted. Where the parties have agreed to submit their dispute to institutional
arbitration rules, and unless they have agreed to a different procedure, they shall
be deemed to have agreed to the procedure 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 National President of the
Integrated Bar of the Philippines (IBP) or his/her duly authorized representative.

2. Arbitral Tribunal (under the Model Law) means a sole arbitrator or a panel of
arbitrators.

3. Arbitration means any arbitration whether or not administered by a permanent

arbitration institution.

4. Commercial Arbitration means an arbitration that covers matters arising from all
relationships of a commercial nature, whether contractual or not. Relationships of
a commercial nature include, but are not limited to, the following commercial
transactions: any trade transaction for the supply or exchange of goods or
services; distribution agreements; construction of works; commercial
representation or agency; factoring; leasing; consulting; engineering; licensing;
investment; financing; banking; insurance; joint venture and other forms of
industrial or business cooperation; carriage of goods or passengers by air, sea, rail
or road.

5. Convention Award means a foreign arbitral award made in a Convention State.

6. Convention State means a state that is a member of the New York Convention.

7. Court (under the Model Law) means a body or organ of the judicial system of the
Philippines (i.e., the Regional Trial Court, Court of Appeals and Supreme Court).

8. International Arbitration means an arbitration where:

 (a) the parties to an arbitration agreement have, at the time of the conclusion of
that agreement, their places of business in different states; or

(b) one of the following places is situated outside the Philippines in which the
parties have their places of business:

(i) the place of arbitration if determined in, or pursuant to, the arbitration
agreement;

(ii) any place where a substantial part of the obligations of the commercial
relationship is to be performed or the place with which the subject matter
of the dispute is most closely connected; or

(c) the parties have expressly agreed that the subject matter of the arbitration
agreement relates to more than one country.

For this purpose:

(a) if a party has more than one place of business, the place of business is that
which has the closest relationship to the arbitration agreement;

(b) if a party does not have a place of business, reference is to be made to

his/her habitual residence.

9. New York Convention means the United Nations Convention on the Recognition
and Enforcement of Foreign Arbitral Awards approved in 1958 and ratified by the
Philippine Senate under Senate Resolution No. 71.

10. Non-Convention Award means a foreign arbitral award made in a state, which is
not a Convention State.

11. Non-Convention State means a state that is not a member of the New York
Convention.

D. Terms Applicable to the Chapter on Domestic Arbitration

1. Ad hoc Arbitration means an arbitration administered by an arbitrator and/or the

parties themselves. An arbitration administered by an institution shall be regarded
as an ad hoc arbitration if such institution is not a permanent or regular arbitration
institution in the Philippines.

2. Appointing Authority in Ad Hoc Arbitration means, in the absence of an

agreement, the National President of the IBP or his/her duly authorized
representative.

3. Appointing Authority Guidelines means the set of rules approved or adopted by

an appointing authority for the making of a Request for Appointment,
 Challenge, Termination of the Mandate of Arbitrator/s and for taking action
thereon.

4. Arbitration means a voluntary dispute resolution process in which one or more

arbitrators, appointed in accordance with the agreement of the parties or these
Rules, resolve a dispute by rendering an award.

5. Arbitral Tribunal means a sole arbitrator or a panel, board or committee of

arbitrators.

6. Claimant means a person/s with a claim against another and who commence/s
arbitration against the latter.

7. Court means, unless otherwise specified in these Rules, a Regional Trial Court.

8. Day means calendar day.

9. Domestic Arbitration means an arbitration that is not international as defined in

Article 1(3) of the Model Law.

10. Institutional arbitration means arbitration administered by an entity, which is

registered as a domestic corporation with the Securities and Exchange
Commission (SEC) and engaged in, among others, arbitration of disputes in the
Philippines on a regular and permanent basis.

11. Request for Appointment means the letter-request to the appointing authority of
either or both parties for the appointment of arbitrator/s or of the two arbitrators first
appointed by the parties for the appointment of the third member of an arbitral
tribunal.

12. Representative is a person duly authorized in writing by a party to a dispute, who

could be a counsel, a person in his/her employ or any other person of his/her
choice, duly authorized to represent said party in the arbitration proceedings.

13. Respondent means the person/s against whom the claimant commence/s
arbitration.

14. Written communication means the pleading, motion, manifestation, notice, order,
award and any other document or paper submitted or filed with the arbitral tribunal
or delivered to a party.

E. Terms Applicable to the Chapter on Other ADR Forms

1. Early Neutral Evaluation means an ADR process wherein parties and their
lawyers are brought together early in the pre-trial phase to present summaries of
their cases and to receive a non-binding assessment by an experienced neutral
person, with expertise in the subject matter or substance of the dispute.
 2. Mediation-Arbitration or Med-Arb is a two-step dispute resolution process
involving mediation and then followed by arbitration.

3. Mini-trial means a structured dispute resolution method in which the merits of a

case are argued before a panel comprising of senior decision-makers, with or
without the presence of a neutral third person, before which the parties seek a
negotiated settlement.

CHAPTER 2
THE OFFICE FOR ALTERNATIVE DISPUTE RESOLUTION

RULE 1 – Office for Alternative Dispute Resolution (OADR)

Article 2.1. Establishment of the Office for Alternative Dispute Resolution. There is
hereby established the OADR as an agency attached to the Department of Justice. It shall have
a Secretariat and shall be headed by an Executive Director, who shall be appointed by the
President of the Philippines, taking into consideration the recommendation of the Secretary of
Justice.

Article 2.2. Powers of the OADR. The OADR shall have the following powers:

(a) To act as appointing authority of mediators and arbitrators when the parties agree in
writing that it shall be empowered to do so;

(b) To conduct seminars, symposia, conferences and other public fora and publish
proceedings of said activities and relevant materials/information that would promote,
develop and expand the use of ADR;

(c) To establish an ADR library or resource center where ADR laws, rules and regulations,
jurisprudence, books, articles and other information about ADR in the Philippines and
elsewhere may be stored and accessed;

(d) To establish a training programs for ADR providers/practitioners, both in the public and
private sectors; and to undertake periodic and continuing training programs for
arbitration and mediation and charge fees on participants. It may do so in conjunction
with or in cooperation with the IBP, private ADR organizations, and local and foreign
government offices and agencies and international organizations;

(e) To certify those who have successfully completed the regular professional training
programs provided by the OADR;

(f) To charge fees for services rendered such as, among others, for training and
certifications of ADR providers;

(g) To accept donations, grants and other assistance from local and foreign sources; and
 (h) To exercise such other powers as may be necessary and proper to carry into effect
the provisions of the ADR Act.

Article 2.3. Functions of the OADR. The OADR shall have the following functions:

(a) To promote, develop and expand the use of ADR in the private and public sectors
through information, education and communication;

(b) To monitor, study and evaluate the use of ADR by the private and public sectors for
purposes of, among others, policy formulation;

(c) To recommend to Congress needful statutory changes to develop, strengthen and

improve ADR practices in accordance with international professional standards;

(d) To make studies on and provide linkages for the development, implementation,
monitoring and evaluation of government and private ADR programs and secure
information about their respective administrative rules/procedures, problems
encountered and how they were resolved;

(e) To compile and publish a list or roster of ADR providers/practitioners, who have
undergone training by the OADR, or by such training providers/institutions recognized
or certified by the OADR as performing functions in any ADR system. The list or roster
shall include the addresses, contact numbers, e-mail addresses, ADR service/s
rendered (e.g., arbitration, mediation) and experience in ADR of the ADR
providers/practitioners;

(f) To compile a list or roster of foreign or international ADR providers/practitioners. The

list or roster shall include the addresses, contact numbers, e-mail addresses, ADR
service/s rendered (e.g., arbitration, mediation) and experience in ADR of the ADR
providers/practitioners; and

(g) To perform such other functions as may be assigned to it.

Article 2.4. Divisions of the OADR. The OADR shall have the following staff and
service divisions, among others:

(a) Secretariat – shall provide necessary support and discharge such other functions
and duties as may be directed by the Executive Director.

(b) Public Information and Promotion Division – shall be charged with the
dissemination of information, the promotion of the importance and public acceptance
of mediation, conciliation, arbitration or any combination thereof and other ADR forms
as a means of achieving speedy and efficient means of resolving all disputes and to
help in the promotion, development and expansion of the use of ADR.
 (c) Training Division – shall be charged with the formulation of effective standards for
the training of ADR practitioners; conduct of trainings in accordance with such
standards; issuance of certifications of training to ADR practitioners and ADR service
providers who have undergone the professional training provided by the OADR; and
the coordination of the development, implementation, monitoring and evaluation of
government and private sector ADR programs.

(d) Records and Library Division - shall be charged with the establishment and
maintenance of a central repository of ADR laws, rules and regulations, jurisprudence,
books, articles, and other information about ADR in the Philippines and elsewhere.

RULE 2 - The Advisory Council

Article 2.5. Composition of the Advisory Council. There is also created an Advisory
Council composed of a representative from each of the following:

(a) Mediation profession;

(b) Arbitration profession;

(c) ADR organizations;

(d) IBP; and

(e) Academe.

The members of the Council, who shall be appointed by the Secretary of Justice upon the
recommendation of the OADR Executive Director, shall choose a Chairman from among
themselves.

Article 2.6. Role of the Advisory Council. The Advisory Council shall advise the
Executive Director on policy, operational and other relevant matters. The Council shall meet
regularly, at least once every two (2) months, or upon call by the Executive Director.

CHAPTER 3
MEDIATION

RULE 1 - General Provisions

Article 3.1. Scope of Application. These Rules apply to voluntary mediation, whether ad
hoc or institutional, other than court-annexed mediation and only in default of an agreement of
the parties on the applicable rules.

These Rules shall also apply to all cases pending before an administrative or quasi-
judicial agency that are subsequently agreed upon by the parties to be referred to mediation.
 Article 3.2. Statement of Policy. In applying and construing the provisions of these
Rules, consideration must be given to the need to promote candor of parties and mediators
through confidentiality of the mediation process, the policy of fostering prompt, economical and
amicable resolution of disputes in accordance with principles of integrity of determination by the
parties and the policy that the decision-making authority in the mediation process rests with the
parties.

A party may petition a court before which an action is prematurely brought in a matter
which is the subject of a mediation agreement, if at least one party so requests, not later than the
pre-trial conference or upon the request of both parties thereafter, to refer the parties to mediation
in accordance with the agreement of the parties.

RULE 2 - Selection of a Mediator

Article 3.3. Freedom to Select Mediator. The parties have the freedom to select their
mediator.

The parties may request the OADR to provide them with a list or roster or the resumés of
its certified mediators. The OADR may be requested to inform the mediator of his/her selection.

Article 3.4. Replacement of Mediator. If the mediator selected is unable to act as such
for any reason, the parties may, upon being informed of such fact, select another mediator.

Article 3.5. Refusal or Withdrawal of Mediator. A mediator may refuse from acting as
such, withdraw or may be compelled to withdraw, from the mediation proceedings under the
following circumstances:

(a) If any of the parties so requests the mediator to withdraw;

(b) The mediator does not have the qualifications, training and experience to enable
him/her to meet the reasonable expectations of the parties;

(c) Where the mediator’s impartiality is in question;

(d) If continuation of the process would violate any ethical standards;

(e) If the safety of any of the parties would be jeopardized;

(f) If the mediator is unable to provide effective services;

(g) In case of conflict of interest; and

(h) In any of the following instances, if the mediator is satisfied that:

(i) one or more of the parties is/are not acting in good faith;
 (ii) the parties’ agreement would be illegal or involve the commission of
a crime;

(iii) continuing the dispute resolution would give rise to an appearance of

impropriety;

(iv) continuing with the process would cause significant harm to a non-
participating person or to the public; or

(v) continuing discussions would not be in the best interest of the parties,
their minor children or the dispute resolution process.

RULE 3 - Ethical Conduct of a Mediator

Article 3.6. Competence. It is not required that a mediator shall have special
qualifications by background or profession unless the special qualifications of a mediator are
required in the mediation agreement or by the mediation parties. However, the certified mediator
shall:

(a) maintain and continually upgrade his/her professional competence in mediation skills;

(b) ensure that his/her qualifications, training and experience are known to and accepted
by the parties; and

(c) serve only when his/her qualifications, training and experience enable him/her to meet
the reasonable expectations of the parties and shall not hold himself /herself out or
give the impression that he/she has qualifications, training and experience that he/she
does not have.

Upon the request of a mediation party, an individual who is requested to serve as mediator
shall disclose his/her qualifications to mediate a dispute.

Article 3.7. Impartiality. A mediator shall maintain impartiality.

(a) Before accepting a mediation, an individual who is requested to serve as a

mediator shall:

(i) make an inquiry that is reasonable under the circumstances to determine

whether there are any known facts that a reasonable individual would consider
likely to affect the impartiality of the mediator, including a financial or personal
interest in the outcome of the mediation and any existing or past relationship with
a party or foreseeable participant in the mediation; and

(ii) disclose to the mediation parties any such fact known or learned as soon as is
practical before accepting a mediation.
 (b) If a mediator learns any fact described in paragraph (a) (i) of this Article after
accepting a mediation, the mediator shall disclose it as soon as practicable to the mediation
parties.

Article 3.8. Confidentiality. A mediator shall keep in utmost confidence all confidential
information obtained in the course of the mediation process.

A mediator shall discuss issues of confidentiality with the mediation parties before
beginning the mediation process including limitations on the scope of confidentiality and the extent
of confidentiality provided in any private sessions or caucuses that the mediator holds with a party.

Article 3.9. Consent and Self-Determination. (a) A mediator shall make reasonable
efforts to ensure that each party understands the nature and character of the mediation
proceedings including private caucuses, the issues, the available options, the alternatives to non-
settlement, and that each party is free and able to make whatever choices he/she desires
regarding participation in mediation generally and regarding specific settlement options.

If a mediator believes that a party, who is not represented by counsel, is unable to

understand, or fully participate in, the mediation proceedings for any reason, a mediator may
either:

(i) limit the scope of the mediation proceedings in a manner consistent

with the party’s ability to participate, and/or recommend that the party obtain
appropriate assistance in order to continue with the process; or

(ii) terminate the mediation proceedings.

(b) A mediator shall recognize and put in mind that the primary responsibility of resolving
a dispute and the shaping of a voluntary and uncoerced settlement rests with the parties.

Article 3.10. Separation of Mediation from Counseling and Legal Advice. (a) Except
in evaluative mediation or when the parties so request, a mediator shall:

(i) refrain from giving legal or technical advice and otherwise engaging in
counseling or advocacy; and

(ii) abstain from expressing his/her personal opinion on the rights and duties of the
parties and the merits of any proposal made.

(b) Where appropriate and where either or both parties are not represented by counsel,
a mediator shall:

(i) recommend that the parties seek outside professional advice to help them make
informed decision and to understand the implications of any proposal; and
 (ii) suggest that the parties seek independent legal and/or technical advice before
a settlement agreement is signed.

(c) Without the consent of all parties, and for a reasonable time under the particular
circumstance, a mediator who also practices another profession shall not establish a professional
relationship in that other profession with one of the parties, or any person or entity, in a
substantially and factually related matter.

Article 3.11. Charging of Fees. (a) A mediator shall fully disclose and explain to the
parties the basis of cost, fees and charges.

(b) The mediator who withdraws from the mediation shall return to the parties any
unearned fee and unused deposit.

(c) A mediator shall not enter into a fee agreement which is contingent upon the results of
the mediation or the amount of the settlement.

Article 3.12. Promotion of Respect and Control of Abuse of Process. The mediator
shall encourage mutual respect between the parties, and shall take reasonable steps, subject to
the principle of self-determination, to limit abuses of the mediation process.

Article 3.13. Solicitation or Acceptance of any Gift. No mediator or any member of a

mediator’s immediate family or his/her agent shall request, solicit, receive or accept any gift or
any type of compensation other than the agreed fee and expenses in connection with any matter
coming before the mediator.

RULE 4 - Role of Parties and their Counsels

Article 3.14. Designation of Counsel or any Person to Assist Mediation. Except as

otherwise provided by the ADR Act or by these Rules, a party may designate a lawyer or any
other person to provide assistance in the mediation. A waiver of this right shall be made in writing
by the party waiving it. A waiver of participation or legal representation may be rescinded at any
time.

Article 3.15. Role of Counsel. (a) The lawyer shall view his/her role in mediation as a
collaborator with the other lawyer in working together toward the common goal of helping their
clients resolve their differences to their mutual advantage.

(b) The lawyer shall encourage and assist his/her client to actively participate in positive
discussions and cooperate in crafting an agreement to resolve their dispute.

(c) The lawyer must assist his/her client to comprehend and appreciate the mediation
process and its benefits, as well as the client’s greater personal responsibility for the success of
mediation in resolving the dispute.

(d) In preparing for participation in mediation, the lawyer shall confer and discuss with
his/her client the following:
 (i) The mediation process as essentially a negotiation between the parties assisted
by their respective lawyers, and facilitated by a mediator, stressing its difference
from litigation, its advantages and benefits, the client’s heightened role in
mediation and responsibility for its success and explaining the role of the lawyer
in mediation proceedings.

(ii) The substance of the upcoming mediation, such as:

(aa) The substantive issues involved in the dispute and their prioritization in
terms of importance to his/her client’s real interests and needs;

(bb) The study of the other party’s position in relation to the issues with a view
to understanding the underlying interests, fears, concerns and needs;

(cc) The information or facts to be gathered or sought from the other side or to
be exchanged that are necessary for informed decision-making;

(dd) The possible options for settlement but stressing the need to be open-
minded about other possibilities; and

(ee) The best, worst and most likely alternatives to a non-negotiated settlement.

Article 3.16. Other Matters which the Counsel shall do to Assist Mediation. The
lawyer:

(a) shall give support to the mediator so that his/her client will fully understand the rules
and processes of mediation;

(b) shall impress upon his/her client the importance of speaking for himself/herself and
taking responsibility for making decisions during the negotiations within the mediation
process;

(c) may ask for a recess in order to give advice or suggestions to his/her client in private,
if he/she perceives that his/her client is unable to bargain effectively;

(d) shall assist his/her client and the mediator put in writing the terms of the settlement
agreement that the parties have entered into. The lawyers shall see to it that the terms
of the settlement agreement are not contrary to law, morals, good customs, public
order or public policy.

RULE 5 - Conduct of Mediation

Article 3.17. Articles to be Considered in the Conduct of Mediation. (a) The mediator
shall not make untruthful or exaggerated claims about the dispute resolution process, its costs
and benefits, its outcome or the mediator’s qualifications and abilities during the entire mediation
process.
 (b) The mediator shall help the parties reach a satisfactory resolution of their dispute but
has no authority to impose a settlement on the parties.

(c) The parties shall personally appear for mediation and may be assisted by a lawyer. A
party may be represented by an agent who must have full authority to negotiate and settle the
dispute.

(d) The mediation process shall, in general, consist of the following stages:

(i) opening statement of the mediator;

(ii) individual narration by the parties;

(iii) exchange by the parties;

(iv) summary of issues;

(v) generation and evaluation of options; and

(vi) closure.

(e) The mediation proceeding shall be held in private. Persons, other than the parties, their
representatives and the mediator, may attend only with the consent of all the parties.

(f) The mediation shall be closed:

(i) by the execution of a settlement agreement by the parties;

(ii) by the withdrawal of any party from mediation; and

(iii) by the written declaration of the mediator that any further effort at
mediation would not be helpful.

RULE 6 – Place of Mediation

Article 3.18. Agreement of Parties on the Place of Mediation. The parties are free to
agree on the place of mediation. Failing such agreement, the place of mediation shall be any
place convenient and appropriate to all parties.

RULE 7 – Effect of Agreement to Submit Dispute

to Mediation Under Institutional Rules

Article 3.19. Agreement to Submit a Dispute to Mediation by an Institution. An

agreement to submit a dispute to mediation by an institution shall 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 under institutional mediation rules shall be deemed
to include an agreement to have such rules govern the mediation of the dispute and for the
mediator, the parties, their respective counsels and non-party participants to abide by such rules.

RULE 8 - Enforcement of Mediated Settlement Agreements

Article 3.20. Operative Principles to Guide Mediation. The mediation shall be guided
by the following operative principles:

(a) A settlement agreement following successful mediation shall be prepared by the

parties with the assistance of their respective counsels, if any, and by the mediator.
The parties and their respective counsels shall endeavor to make the terms and
condition of the settlement agreement complete and to make adequate provisions for
the contingency of breach to avoid conflicting interpretations of the agreement.

(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 them.

(c) If the parties agree, the settlement agreement may be jointly deposited by the parties
or deposited by one party with prior notice to the other party/ies with the Clerk of Court
of the Regional Trial Court (a) where the principal place of business in the Philippines
of any of the parties is located; (b) if any of the parties is an individual, where any of
those individuals resides; or (c) in the National Capital Judicial Region. Where there
is a need to enforce the settlement agreement, a petition may be filed by any of the
parties with the same court, in which case, the court shall proceed summarily to hear
the petition, in accordance with the Special ADR Rules.

(d) The parties may agree in the settlement agreement that the mediator shall become a
sole arbitrator for the dispute and shall treat the settlement 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, s. 1985, otherwise known as the “Construction Industry Arbitration Law” for
mediated disputes outside of the Construction Industry Arbitration Commission.

RULE 9 - Confidentiality of Information

Article 3.21. Confidentiality of Information. Information obtained through mediation

proceedings shall be subject to the following principles and guidelines:

(a) Information obtained through mediation shall be privileged and confidential.

(b) A party, mediator, or non-party participant may refuse to disclose and may prevent any
other person from disclosing a confidential information.
 (c) Confidential information shall not be subject to discovery and shall be inadmissible in
any adversarial proceeding, whether judicial or quasi-judicial. However, evidence or
information that is otherwise admissible or subject to discovery does not become
inadmissible or protected from discovery solely by reason of its use in a mediation.

(d) In such an adversarial proceeding, the following persons involved or previously

involved in a mediation may not be compelled to disclose confidential information
obtained during the mediation:

(i) the parties to the dispute;

(ii) the mediator or mediators;

(iii) the counsel for the parties;

(iv) the non-party participants;

(v) any person hired or engaged in connection with the mediation as secretary,
stenographer, clerk or assistant; and

(vi) any other person who obtains or possesses confidential information by reason of
his/her profession.

(e) The protections of the ADR Act shall continue to apply even if a mediator is found to
have failed to act impartially.

(f) A mediator may not be called to testify to provide confidential information gathered in
mediation. A mediator who is wrongfully subpoenaed shall be reimbursed the full cost
of his/her attorney’s fees and related expenses.

Article 3.22. Waiver of Confidentiality. (a) A privilege arising from the confidentiality of
information may be waived in a record or orally during a proceeding by the mediator and the
mediation parties.

(b) With the consent of the mediation parties, a privilege arising from the confidentiality of
information may likewise be waived by a non-party participant if the information is provided by
such non-party participant.

(c) A person who discloses confidential information shall be precluded from asserting the
privilege under Article 3.21 (Confidentiality of Information) to bar disclosure of the rest of the
information necessary to a complete understanding of the previously disclosed information. If a
person suffers loss or damage as a result of the disclosure of the confidential information, he/she
shall be entitled to damages in a judicial proceeding against the person who made the disclosure.

(d) A person who discloses or makes a representation about a mediation is precluded

from asserting the privilege mentioned in Article 3.21 to the extent that the communication
prejudices another person in the proceeding and it is necessary for the person prejudiced to
respond to the representation or disclosure.

Article 3.23. Exceptions to the Privilege of Confidentiality of Information. (a)

There is no privilege against disclosure under Article 3.21 in the following instances:

(i) in an agreement evidenced by a record authenticated by all parties to the

agreement;

(ii) available to the public or made during a session of a mediation which is

open, or is required by law to be open, to the public;

(iii) a threat or statement of a plan to inflict bodily injury or commit a crime of

violence;

(iv) intentionally used to plan a crime, attempt to commit, or commit a crime, or

conceal an ongoing crime or criminal activity;

(v) sought or offered to prove or disprove abuse, neglect, abandonment or

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 matter is referred to mediation by a court or where a public
agency participates in the child protection mediation;

(vi) sought or offered to prove or disprove a claim or complaint of professional

misconduct or malpractice filed against a mediator in a proceeding; or

(vii) sought or offered to prove or disprove a claim or complaint of professional

misconduct or malpractice filed against a party, non-party participant, or
representative of a party based on conduct occurring during a mediation.

(b) If a court or administrative agency finds, after a hearing in camera, that the party
seeking discovery of the proponent of the evidence has shown that the evidence is not otherwise
available, that there is a need for the evidence that substantially outweighs the interest in
protecting confidentiality, and the mediation communication is sought or offered in:

(i) a court proceeding involving a crime or felony; or

(ii) a proceeding to prove a claim or defense that under the law is sufficient to
reform or avoid a liability on a contract arising out of the mediation.

(c) A mediator may not be compelled to provide evidence of a mediation communication

or testify in such proceeding.

(d) If a mediation communication is not privileged under an exception in sub-section (a) or

(b) hereof, only the portion of the communication necessary for the application of the exception
for non-disclosure may be admitted. The admission of a particular evidence for the
limited purpose of an exception does not render that evidence, or any other mediation
communication, admissible for any other purpose.

Article 3.24. Non-Reporting or Communication by Mediator. A mediator may not make

a report, assessment, evaluation, recommendation, finding or other communication regarding a
mediation to a court or agency or other authority that may make a ruling on a dispute that is the
subject of a mediation, except:

(a) to state that the mediation occurred or has terminated, or where a settlement was
reached; or

(b) as permitted to be disclosed under Article 3.23 (Exceptions to the Privilege of

Confidentiality of Information).

The parties may, by an agreement in writing, stipulate that the settlement agreement shall
be sealed and not disclosed to any third party including the court. Such stipulation, however, shall
not apply to a proceeding to enforce or set aside the settlement agreement.

RULE 10 – Fees and Cost of Mediation

Article 3.25. Fees and Cost of Ad hoc Mediation. In ad hoc mediation, the parties are
free to make their own arrangement as to mediation cost and fees. In default thereof, the schedule
of cost and fees to be approved by the OADR shall be followed.

Article 3.26. Fees and Cost of Institutional Mediation. (a) In institutional mediation,
mediation cost shall include the administrative charges of the mediation institution under which
the parties have agreed to be bound, mediator’s fees and associated expenses, if any. In default
of agreement of the parties as to the amount and manner of payment of mediation’s cost and
fees, the same shall be determined in accordance with the applicable internal rules of the
mediation service providers under whose rules the mediation is conducted.

(b) A mediation service provider may determine such mediation fee as is reasonable
taking into consideration the following factors, among others:

(i) the complexity of the case;

(ii) the number of hours spent in mediation; and

(iii) the training, experience and stature of mediators.

 CHAPTER 4
INTERNATIONAL COMMERCIAL ARBITRATION

RULE 1 - General Provisions

Article 4.1. Scope of Application. (a) This Chapter applies to international commercial
arbitration, subject to any agreement in force between the Philippines and other state or states.

(b) This Chapter applies only if the place or seat of arbitration is the Philippines and in
default of any agreement of the parties on the applicable rules.

(c) This Chapter shall not affect any other law of the Philippines by virtue of which certain
disputes may not be submitted to arbitration or may be submitted to arbitration only according to
provisions other than those of the ADR Act.

Article 4.2. Rules of Interpretation. (a) International commercial arbitration shall be

governed by the Model Law on International Commercial Arbitration.

(b) In interpreting this Chapter, regard shall be had to the international origin of the Model
Law and to the need for uniformity in its interpretation. Resort may be made to the travaux
preparatoires and the Report of the Secretary-General of the United Nations Commission on
International Trade Law dated March 1985 entitled, “International Commercial Arbitration:
Analytical Commentary on Draft Text identified by reference number A/CN. 9/264”.

(c) Moreover, in interpreting this Chapter, the court shall have due regard to the policy of
the law in favor of arbitration and the policy of the Philippines to actively promote party autonomy
in the resolution of disputes or the freedom of the parties to make their own arrangement to
resolve their dispute.

(d) Where a provision of this Chapter, except the Rules applicable to the substance of the
dispute, leaves the parties free to determine a certain issue, such freedom includes the right of
the parties to authorize a third party, including an institution, to make that determination.

(e) Where a provision of this Chapter refers to the fact that the parties have agreed or that
they may agree or in any other way refers to an agreement of the parties, such agreement
includes any arbitration rules referred to in that agreement.

(f) Where a provision of this Chapter, other than in paragraph (a) of Article 4.25 (Default
of a Party) and paragraphs (b) (i) of Article 4.32 (Termination of Proceedings), refers to a claim, it
also applies to a counter-claim, and where it refers to a defense, it also applies to a defense to
such counter-claim.

Article 4.3. Receipt of Written Communications. (a) Unless otherwise agreed by the
parties:

(i) any written communication is deemed to have been received if it is delivered to

the addressee personally or at his/her place of business, habitual residence or
 mailing address; if none of these can be found after making a reasonable inquiry,
a written communication is deemed to have been received if it is sent to the
addressee’s last known place of business, habitual residence or mailing address
by registered letter or any other means which provides a record of the attempt to
deliver it;

(ii) the communication is deemed to have been received on the day it is so

delivered.

(b) The provisions of this Article do not apply to communications in court proceedings,
which shall be governed by the Rules of Court.

Article 4.4. Waiver of Right to Object. A party who knows that any provision of this
Chapter from which the parties may derogate or any requirement under the arbitration agreement
has not been complied with and yet proceeds with the arbitration without stating the objections
for such non-compliance without undue delay or if a time limit is provided therefor, within such
period of time, shall be deemed to have waived the right to object.

Article 4.5. Extent of Court Intervention. In matters governed by this Chapter, no court
shall intervene except where so provided in the ADR Act. Resort to Philippine courts for matters
within the scope of the ADR Act shall be governed by the Special ADR Rules.

Article 4.6. Court or Other Authority for Certain Functions of Arbitration Assistance
and Supervision. (a) The functions referred to in paragraphs (c) and (d) of Article
4.11 (Appointment of Arbitrators) and paragraph (c) of Article 4.13 (Challenge Procedure) and
paragraph (a) of Article 4.14 (Failure or Impossibility to Act) shall be performed by the appointing
authority as defined in Article 1.6 C1, unless the latter shall fail or refuse to act within thirty (30)
days from receipt of the request in which case the applicant may renew the application with the
court. The appointment of an arbitrator is not subject to appeal or motion for reconsideration.

(b) The functions referred to in paragraph (c) of Article 4.16 (c) (Competence of Arbitral
Tribunal to Rule on its Jurisdiction), second paragraph of Article 4.34 (Application for Setting Aside
an Exclusive Recourse Against Arbitral Award), Article 4.35 (Recognition and Enforcement),
Article 4.38 (Venue and Jurisdiction), shall be performed by the appropriate Regional Trial Court.

(c) A Court may not refuse to grant, implement or enforce a petition for an interim
measure, including those provided for in Article 4.9 (Arbitration Agreement and Interim Measures
by Court), Article 4.11 (Appointment of Arbitrators), Article 4.13 (Challenge Procedure), Article
4.27 (Court Assistance in Taking Evidence), on the sole ground that the Petition is merely an
ancillary relief and the principal action is pending with the arbitral tribunal.

RULE 2 - Arbitration Agreement

Article 4.7. Definition and Form of Arbitration Agreement. The arbitration agreement,
as defined in Article 1.6 A4, shall be in writing. An agreement is in writing if it is contained in a
document signed by the parties or in an exchange of letters, telex, telegrams or other means of
telecommunication which provide a record of the agreement, or in an exchange of statements of
claim and defense in which the existence of an agreement is alleged by one party and not denied
by another. The reference in a contract to a document containing an arbitration clause constitutes
an arbitration agreement provided that the contract is in writing and the reference is such as to
make that clause part of the contract.

Article 4.8. Arbitration Agreement and Substantive Claim Before Court. (a) A court
before which an action is brought in a matter which is the subject of an arbitration agreement
shall, if at least one party so requests not later than the pre-trial conference, or upon the request
of both parties thereafter, refer the parties to arbitration unless it finds that the arbitration
agreement is null and void, inoperative or incapable of being performed.

(b) Where an action referred to in the previous paragraph has been brought, arbitral
proceedings may nevertheless be commenced or continued, and an award may be made, while
the issue is pending before the court.

(c) Where the action is commenced by or against multiple parties, one or more of whom
are parties to an arbitration agreement, the court shall refer to arbitration those parties who are
bound by the arbitration agreement although the civil action may continue as to those who are not
bound by such arbitration agreement.

Article 4.9. Arbitration Agreement and Interim Measures by Court. (a) It is not
incompatible with an arbitration agreement for a party to request from a court, before the
constitution of the arbitral tribunal or during arbitral proceedings, an interim measure of protection
and for a court to grant such measure.

(b)To the extent that the arbitral tribunal has no power to act or is unable to act effectively,
a request for interim measures of protection, or modification thereof as provided for, and in the
manner indicated in, Article 4.17 (Power of Arbitral Tribunal to Order Interim Measures), may be
made with the court.

The rules on interim or provisional relief provided for in paragraph (c) of Article 4.17, of
these Rules shall be observed.

A party may bring a petition under this Article before the court in accordance with the
Rules of Court or the Special ADR Rules.

RULE 3 - Composition of Arbitral Tribunal

Article 4.10. Number of Arbitrators. The parties are free to determine the number of
arbitrators. Failing such determination, the number of arbitrators shall be three (3).

Article 4.11. Appointment of Arbitrators. (a) No person shall be precluded by reason of

his/her nationality from acting as an arbitrator, unless otherwise agreed by the parties.
 (b) The parties are free to agree on a procedure of appointing the arbitrator or arbitrators,
subject to the provisions of paragraphs (d) and (e) of this Article.

(c) Failing such agreement:

(i) in an arbitration with three (3) arbitrators, each party shall appoint one arbitrator,
and the two (2) arbitrators thus appointed shall appoint the third arbitrator; if a party
fails to appoint the arbitrator within thirty (30) days of receipt of a request to do so
from the other party, or if the two (2) arbitrators fail to agree on the third arbitrator
within thirty (30) days of their appointment, the appointment shall be made, upon
request of a party, by the appointing authority;

(ii) in an arbitration with a sole arbitrator, if the parties are unable to agree on the
arbitrator, he/she shall be appointed, upon request of a party, by the appointing
authority.

(d) Where, under an appointment procedure agreed upon by the parties,

(i) a party fails to act as required under such procedure, or

(ii) the parties, or two arbitrators, are unable to reach an agreement

expected of them under such procedure, or

(iii) a third party, including an institution, fails to perform any function

entrusted to it under such procedure,

any party may request the appointing authority to take the necessary measure to appoint an
arbitrator, unless the agreement on the appointment procedure provides other means for securing
the appointment.

(e) A decision on a matter entrusted by paragraphs (c) and (d) of this to the appointing
authority shall be immediately executory and not be subject to a motion for reconsideration or
appeal. The appointing authority shall have in appointing an arbitrator, due regard to any
qualifications required of the arbitrator by the agreement of the parties and to such considerations
as are likely to secure the appointment of an independent and impartial arbitrator and, in the case
of a sole or third arbitrator, shall take into account as well the advisability of appointing an arbitrator
of a nationality other than those of the parties.

A party may bring a petition under this Article before the court in accordance with the
Rules of Court or the Special ADR Rules.

Article 4.12. Grounds for Challenge. (a) When a person is approached in connection
with his/her possible appointment as an arbitrator, he/she shall disclose any circumstance likely
to give rise to justifiable doubts as to his/her impartiality or independence. An arbitrator, from the
time of his/her appointment and throughout the arbitral proceedings shall, without delay, disclose
any such circumstance to the parties unless they have already been informed of them by him/her.
 (b) An arbitrator may be challenged only if circumstances exist that give rise to justifiable
doubts as to his/her impartiality or independence, or if he/she does not possess qualifications
agreed to by the parties. A party may challenge an arbitrator appointed by him/her, or in whose
appointment he/she has participated, only for reasons of which he/she becomes aware after the
appointment has been made.

Article 4.13. Challenge Procedure. (a) The parties are free to agree on a procedure for
challenging an arbitrator, subject to the provisions of this Article.

(b) Failing such agreement, a party who intends to challenge an arbitrator shall, within
fifteen (15) days after becoming aware of the constitution of the arbitral tribunal or after becoming
aware of any circumstance referred to in paragraph (b) of Article 4.12 (Grounds for Challenge),
send a written statement of the reasons for the challenge to the arbitral tribunal. Unless the
challenged arbitrator withdraws from his/her office or the other party agrees to the challenge, the
arbitral tribunal shall decide on the challenge.

(c) If a challenge under any procedure agreed upon by the parties or under the procedure
of paragraph (b) of this Article is not successful, the challenging party may request the appointing
authority, within thirty (30) days after having received notice of the decision rejecting the
challenge, to decide on the challenge, which decision shall be immediately executory and not
subject to motion for reconsideration or appeal. While such a request is pending, the arbitral
tribunal, including the challenged arbitrator, may continue the arbitral proceedings and make an
award.

A party may bring a petition under this Article before the court in accordance with the
Rules of Court or the Special ADR Rules.

Article 4.14. Failure or Impossibility to Act. (a) If an arbitrator becomes de jure or de

facto unable to perform his/her functions or for other reasons fails to act without undue delay,
his/her mandate terminates if he/she withdraws from his/her office or if the parties agree on the
termination. Otherwise, if a controversy remains concerning any of these grounds, any party may
request the appointing authority to decide on the termination of the mandate, which decision shall
be immediately executory and not subject to motion for reconsideration or appeal.

(b) If, under this Article or paragraph (b) of Article 4.13 (Challenge Procedure), an arbitrator
withdraws from his/her office or a party agrees to the termination of the mandate of an arbitrator,
this does not imply acceptance of the validity of any ground referred to in this Article or in
paragraph (b) of Article 4.12 (Grounds for Challenge).

Article 4.15. Appointment of Substitute Arbitrator. Where the mandate of an arbitrator

terminates under Articles 4.13 (Challenge Procedure) and 4.14 (Failure or Impossibility to Act) or
because of his/her withdrawal from office for any other reason or because of the revocation of
his/her mandate by agreement of the parties or in any other case of termination of his/her
mandate, a substitute arbitrator shall be appointed according to the rules that were applicable to
the appointment of the arbitrator being replaced.
 RULE 4 - Jurisdiction of Arbitral Tribunal

Article 4.16. Competence of Arbitral Tribunal to Rule on its Jurisdiction. (a) The
arbitral tribunal may rule on its own jurisdiction, including any objections with respect to the
existence or validity of the arbitration agreement or any condition precedent to the filing of a
request for arbitration. For that purpose, an arbitration clause, which forms part of a contract shall
be treated as an agreement independent of the other terms of the contract. A decision by the
arbitral tribunal that the contract is null and void shall not entail ipso jure the invalidity of the
arbitration clause.

(b) A plea that the arbitral tribunal does not have jurisdiction shall be raised not later than
the submission of the statement of defense (i.e., in an Answer or Motion to Dismiss). A party is
not precluded from raising such plea by the fact that he/she has appointed, or participated in the
appointment of, an arbitrator. A plea that the arbitral tribunal is exceeding the scope of its authority
shall be raised as soon as the matter alleged to be beyond the scope of its authority is raised
during the arbitral proceedings. The arbitral tribunal may, in either case, admit a later plea if it
considers the delay justified.

(c) The arbitral tribunal may rule on a plea referred to in paragraph (b) of this Article either
as a preliminary question or in an award on the merits. If the arbitral tribunal rules as a preliminary
question that it has jurisdiction, any party may request, within thirty (30) days after having received
notice of that ruling, the Regional Trial Court to decide the matter, which decision shall be
immediately executory and not subject to motion for reconsideration or appeal. While such a
request is pending, the arbitral tribunal may continue the arbitral proceedings and make an award.

Article 4.17. Power of Arbitral Tribunal to Order Interim Measures. (a) Unless
otherwise agreed by the parties, the arbitral tribunal may, at the request of a party, order any party
to take such interim measures of protection as the arbitral tribunal may consider necessary in
respect of the subject matter of the dispute following paragraph (c) of this Article. Such interim
measures may include, but shall not be limited to, preliminary injunction directed against a party,
appointment of receivers, or detention, preservation, inspection of property that is the subject of
the dispute in arbitration.

(b) After constitution of the arbitral tribunal, and during arbitral proceedings, a request for
interim measures of protection, or modification thereof shall be made with the arbitral tribunal.
The arbitral tribunal is deemed constituted when the sole arbitrator or the third arbitrator, who has
been nominated, has accepted the nomination and written communication of said nomination and
acceptance has been received by the party making the request.

(c) The following rules on interim or provisional relief shall be observed:

(i) Any party may request that interim or provisional relief be granted against the
adverse party.

(ii) Such relief may be granted:

 (aa) To prevent irreparable loss or injury;

(bb) To provide security for the performance of an obligation;

(cc) To produce or preserve evidence; or

(dd) To compel any other appropriate acts or omissions.

(iii) The order granting provisional relief may be conditioned upon the provision of
security or any act or omission specified in the order.

(iv) Interim or provisional relief is requested by written application transmitted by

reasonable means to the arbitral tribunal and the party against whom relief is
sought, describing in appropriate details of the precise relief, the party against
whom the relief is requested, the ground for the relief, and the evidence
supporting the request.

(v) The order either granting or denying an application for interim relief shall be
binding upon the parties.

(vi) Either party may apply with the court for assistance in implementing or enforcing
an interim measure ordered by an arbitral tribunal.

(vii) A party who does not comply with the order shall be liable for all damages,
resulting from noncompliance, including all expenses, and reasonable attorney’s
fees, paid in obtaining the order’s judicial enforcement.

RULE 5 - Conduct of Arbitral Proceedings

Article 4.18. Equal Treatment of Parties. The parties shall be treated with equality and
each party shall be given a full opportunity of presenting his/her case.

Article 4.19. Determination of Rules of Procedure. (a) Subject to the provisions of this
Chapter, the parties are free to agree on the procedure to be followed by the arbitral tribunal in
conducting the proceedings.

(b) Failing such agreement, the arbitral tribunal may, subject to this Chapter, conduct the
arbitration in such manner as it considers appropriate. Unless the arbitral tribunal considers it
inappropriate, the UNCITRAL Arbitration Rules adopted by the UNCITRAL on 28 April 1976 and
the UN General Assembly on 15 December 1976 shall apply subject to the following clarification:
All references to the “Secretary-General of the Permanent Court of Arbitration at the Hague” shall
be deemed to refer to the appointing authority.

(c) The power conferred upon the arbitral tribunal includes the power to determine the
admissibility, relevance, materiality and weight of any evidence.
 Article 4.20. Place of Arbitration. (a) The parties are free to agree on the place of
arbitration. Failing such agreement, the place of arbitration shall be in Metro Manila 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.

(b) Notwithstanding the rule stated in paragraph (a) of this provision, the arbitral tribunal
may, unless otherwise agreed by the parties, meet at any place it considers appropriate for
consultation among its members, for hearing witnesses, experts or the parties, or for inspection
of goods, other property or documents.

Article 4.21. Commencement of Arbitral Proceedings. Unless otherwise agreed by the

parties, the arbitral proceedings in respect of a particular dispute commence on the date on which
a request for that dispute to be referred to arbitration is received by the respondent.

Article 4.22. Language. (a) The parties are free to agree on the language or languages
to be used in the arbitral proceedings. Failing such agreement, the language to be used shall be
English. This agreement, unless otherwise specified therein, shall apply to any written statement
by a party, any hearing and any award, decision or other communication by the arbitral tribunal.

(b) The arbitral tribunal may order that any documentary evidence shall be accompanied
by a translation into the language or languages agreed upon by the parties or determined by the
arbitral tribunal in accordance with paragraph (a) of this Article.

Article 4.23. Statements of Claim and Defense. (a) Within the period of time agreed by
the parties or determined by the arbitral tribunal, the claimant shall state the facts supporting
his/her/its claim, the points at issue and the relief or remedy sought, and the respondent shall
state his/her/its defense in respect of these particulars, unless the parties have otherwise agreed
as to the required elements of such statements. The parties may submit with their statements, all
documents they consider to be relevant or may add a reference to the documents or other
evidence they will submit.

(b)Unless otherwise agreed by the parties, either party may amend or supplement his/her
claim or defense during the course of the arbitral proceedings, unless the arbitral tribunal
considers it inappropriate to allow such amendment having regard to the delay in making it.

Article 4.24. Hearing and Written Proceedings. (a) Subject to any contrary agreement
by the parties, the arbitral tribunal shall decide whether to hold oral hearings for the presentation
of evidence or for oral argument, or whether the proceedings shall be conducted on the basis of
documents and other materials. However, unless the parties have agreed that no hearings shall
be held, the arbitral tribunal shall hold such hearings at an appropriate stage of the proceedings,
if so requested by a party.

(b) The parties shall be given sufficient advance notice of any hearing and of any meeting
of the arbitral tribunal for the purposes of inspection of goods, other property or documents.

(c) All statements, documents or other information supplied to the arbitral tribunal by one
party shall be communicated to the other party. Also, an expert report or evidentiary document
on which the arbitral tribunal may rely in making its decision shall be communicated to the
parties.

Article 4.25. Default of a Party. Unless otherwise agreed by the parties, if, without
showing sufficient cause,

(a) the claimant fails to communicate his statement of claim in accordance with
paragraph (a) Article 4.23 (Statement of Claim and Defense), the arbitral tribunal shall
terminate the proceedings;

(b) the respondent fails to communicate his/her/its statement of defense in accordance

with paragraph (a) Article 4.23 (Statement of Claim and Defense), the arbitral tribunal
shall continue the proceedings without treating such failure in itself as an admission
of the claimant’s allegations;

(c) any party fails to appear at a hearing or to produce documentary evidence, the arbitral
tribunal may continue the proceedings and make the award on the evidence before
it.

Article 4.26. Expert Appointed by the Arbitral Tribunal. Unless otherwise agreed by
the parties, the arbitral tribunal,

(a) may appoint one or more experts to report to it on specific issues to be determined
by the arbitral tribunal; or

(b) may require a party to give the expert any relevant information or to produce, or to
provide access to, any relevant documents, goods or other property for his/her
inspection.

Unless otherwise agreed by the parties, if a party so requests or if the arbitral tribunal
considers it necessary, the expert shall, after delivery of his/her written or oral report, participate
in a hearing where the parties have the opportunity to put questions to him and to present expert
witnesses in order to testify on the points at issue.

Article 4.27. Court Assistance in Taking Evidence. The arbitral tribunal or a party with
the approval of the arbitral tribunal may request from a court of the Philippines assistance in taking
evidence. The court may execute the request within its competence and according to its rules on
taking evidence.

The arbitral tribunal shall have the power to require any person to attend a hearing as a
witness. The arbitral tribunal shall have the power to subpoena witnesses and documents when
the relevancy of the testimony and the materiality thereof has been demonstrated to it. The arbitral
tribunal may also require the retirement of any witness during the testimony of any other witness.

A party may bring a petition under this Section before the court in accordance with the
Rules of Court or the Special ADR Rules.
 Article 4.28. Rules Applicable to the Substance of Dispute. (a) The arbitral tribunal
shall decide the dispute in accordance with such rules of law as are chosen by the parties as
applicable to the substance of the dispute. Any designation of the law or legal system of a given
state shall be construed, unless otherwise expressed, as directly referring to the substantive law
of that state and not to its conflict of laws rules.

(b) Failing any designation by the parties, the arbitral tribunal shall apply the law
determined by the conflict of laws rules, which it considers applicable.

(c) The arbitral tribunal shall decide ex aequo et bono or as amiable compositeur only if
the parties have expressly authorized it to do so.

(d) In all cases, the arbitral tribunal shall decide in accordance with the terms of the
contract and shall take into account the usages of the trade applicable to the transaction.

Article 4.29. Decision-Making by Panel of Arbitrators. In arbitral proceedings with more

than one arbitrator, any decision of the arbitral tribunal shall be made, unless otherwise agreed
by the parties, by a majority of all its members. However, questions of procedure may be decided
by a presiding arbitrator, if so authorized by the parties or all members of the arbitral tribunal.

Article 4.30. Settlement. If, during arbitral proceedings, the parties settle the dispute, the
arbitral tribunal shall terminate the proceedings and, if requested by the parties and not objected
to by the arbitral tribunal, record the settlement in the form of an arbitral award on agreed terms.

An award on agreed terms shall be made in accordance with the provisions of Article
4.31 (Form and Contents of Award), and shall state that it is an award. Such an award has the
same status and effect as any other award on the merits of the case.

Article 4.31. Form and Contents of Award. (a) The award shall be made in writing and
shall be signed by the arbitrator or arbitrators. In arbitral proceedings with more than one
arbitrator, the signatures of the majority of all members of the arbitral tribunal shall suffice,
provided that the reason for any omitted signature is stated.

(b) The award shall state the reasons upon which it is based, unless the parties have
agreed that no reasons are to be given or the award is an award on agreed terms under paragraph
(a) of Article 4.20 (Place of Arbitration).

(c) The award shall state its date and the place of arbitration as determined in accordance
with paragraph (a) of this Article. The award shall be deemed to have been made at that place.

(d) After the award is made, a copy signed by the arbitrators in accordance with
paragraph (a) of this Article shall be delivered to each party.
 Article 4.32. Termination of Proceedings. (a) The arbitral proceedings are terminated
by the final award or by an order of the arbitral tribunal in accordance with paragraph (b) of this
Article.

(b) The arbitral tribunal shall issue an order for the termination of the arbitral proceedings
when:

(i) The claimant withdraws his/her/its claim, unless the respondent objects thereto and
the arbitral tribunal recognized a legitimate interest on his/her/its part in obtaining
a final settlement of the dispute;

(ii) The parties agree on the termination of the proceedings;

(iii) The arbitral tribunal finds that the continuation of the proceedings has for any other
reason become unnecessary or impossible.

(c) The mandate of the arbitral tribunal ends with the termination of the arbitral
proceedings, subject to the provisions of Articles 4.33 (Correction and Interpretation of Award,
Additional Award) and paragraph (d) of Article 4.34 (Application for Setting Aside an Exclusive
Recourse against Arbitral Award).

(d) Notwithstanding the foregoing, the arbitral tribunal may, for special reasons, reserve
in the final award or order, a hearing to quantify costs and determine which party shall bear the
costs or the division thereof as may be determined to be equitable. Pending determination of this
issue, the award shall not be deemed final for purposes of appeal, vacation, correction, or any
post-award proceedings.

Article 4.33. Correction and Interpretation of Award, Additional Award. (a) Within
thirty (30) days from receipt of the award, unless another period of time has been agreed upon by
the parties:

(i) A party may, with notice to the other party, request the arbitral tribunal to correct in
the award any errors in computation, any clerical or typographical errors or any
errors of similar nature;

(ii) A party may, if so agreed by the parties and with notice to the other party, request
the arbitral tribunal to give an interpretation of a specific point or part of the award.

(b) If the arbitral tribunal considers the request to be justified, it shall make the correction
or give the interpretation within thirty (30) days from receipt of the request. The interpretation shall
form part of the award.

(c) The arbitral tribunal may correct any error of the type referred to in paragraph (a) of
this Article on its own initiative within thirty (30) days from the date of the award.

(d) Unless otherwise agreed by the parties, a party may, with notice to the other party,
request, within thirty (30) days of receipt of the award, the arbitral tribunal to make an additional
award as to claims presented in the arbitral proceedings but omitted from the award. If the arbitral
tribunal considers the request to be justified, it shall make the additional award within sixty (60)
days.

(e) The arbitral tribunal may extend, if necessary, the period of time within which it shall
make a correction, interpretation or an additional award under paragraphs (a) and (b) of this
Article.

(f) The provisions of Article 4.31 (Form and Contents of Award) shall apply to a correction
or interpretation of the award or to an additional award.

Article 4.34. Application for Setting Aside an Exclusive Recourse against Arbitral
Award. (a) Recourse to a court against an arbitral award may be made only by an application for
setting aside in accordance with second and third paragraphs of this Article.

(b) An arbitral award may be set aside by the Regional Trial Court only if:

(i) the party making the application furnishes proof that:

(aa) a party to the arbitration agreement was under some incapacity; or the
said agreement is not valid under the law to which the parties have
subjected it or, failing any indication thereon, under the law of the
Philippines; or

(bb) the party making the application was not given proper notice of the
appointment of an arbitrator or of the arbitral proceedings or was
otherwise unable to present his case; or

(cc) the award deals with a dispute not contemplated by or not falling within
the terms of the submission to arbitration, or contains decisions on
matters beyond the scope of the submission to arbitration, provided
that, if the decisions on matters submitted to arbitration can be
separated from those not so submitted, only the part of the award
which contains decisions on matters not submitted to arbitration may
be set aside; or

(dd) the composition of the arbitral tribunal or the arbitral procedure was
not in accordance with the agreement of the parties, unless such
agreement was in conflict with a provision of ADR Act from which the
parties cannot derogate, or, failing such agreement, was not in
accordance with ADR Act; or

(ii) the Court finds that:

(aa) the subject-matter of the dispute is not capable of settlement by

arbitration under the law of the Philippines; or

(bb) the award is in conflict with the public policy of the Philippines.
 (c) An application for setting aside may not be made after three months have elapsed from
the date on which the party making that application had received the award or, if a request had
been made under Article 4.33 (Correction and Interpretation of Award, Additional Award) from the
date on which that request has been disposed of by the Arbitral Tribunal.

(d) The court, when asked to set aside an award, may, where appropriate and so
requested by a party, suspend the setting aside proceedings for a period of time determined by it
in order to give the arbitral tribunal an opportunity to resume the arbitral proceedings or to take
such other action as in the arbitral tribunal’s opinion will eliminate the grounds for setting aside.

(e) A party may bring a petition under this Article before the court in accordance with the
Special ADR Rules.

RULE 6 - Recognition and Enforcement of Awards

Article 4.35. Recognition and Enforcement. (a) A foreign arbitral award shall be
recognized as binding and, upon petition in writing to the Regional Trial Court, shall be enforced
subject to the provisions of this Article and of Article 4.36 (Grounds for Refusing Recognition or
Enforcement).

(b) The petition for recognition and enforcement of such arbitral awards shall be filed with
the Regional Trial Court in accordance with the Special ADR Rules.

(i) Convention Award – The New York Convention shall govern the recognition and
enforcement of arbitral awards covered by said Convention.

The petitioner shall establish that the country in which the foreign arbitration
award was made is a party to the New York Convention.

(ii) Non-Convention Award – The recognition and enforcement of foreign arbitral

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, on
grounds of comity and reciprocity, recognize and enforce a non-convention award
as a convention award.

(c) The party relying on an award or applying for its enforcement shall file with the
Regional Trial Court the original or duly authenticated copy of the award and the original
arbitration agreement or a duly authenticated copy thereof. If the award or agreement is not made
in an official language of the Philippines, the party shall supply a duly certified translation thereof
into such language.

(d) A foreign arbitral award when confirmed by a court of a foreign country, shall be
recognized and enforced as a foreign arbitral award and not as a judgment of a foreign court.
 (e) 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.

(d) If the Regional Trial Court has recognized the arbitral award but an application for
(rejection and/or) suspension of enforcement of that award is subsequently made, the Regional
Trial Court may, if it considers the application to be proper, vacate or suspend the decision to
enforce that award and may also, on the application of the party claiming recognition or
enforcement of that award, order the other party seeking rejection or suspension to provide
appropriate security.

Article 4.36. Grounds for Refusing Recognition or Enforcement.

A. CONVENTION AWARD.

Recognition or enforcement of an arbitral award, made in a state, which is a party to the

New York Convention, may be refused, at the request of the party against whom it is invoked,
only if the party furnishes to the Regional Trial Court proof that:

(a) The parties to the arbitration agreement were, under the law applicable to them, under
some incapacity; or the said agreement is not valid under the law to which the parties
have subjected it or, failing any indication thereon, under the law of the country where
the award was made; or

(b) the party against whom the award is invoked was not given proper notice of the
appointment of an arbitrator or of the arbitral proceedings or was otherwise unable to
present his case; or

(c) the award deals with a dispute not contemplated by or not falling within the terms of
the submission to arbitration, or it contains decisions on matters beyond the scope of
the submission to arbitration, provided that, if the decisions on matters submitted to
arbitration can be separated from those not so submitted, that part of the award which
contains decisions on matters submitted to arbitration may be recognized and
enforced; or

(d) the composition of the arbitral tribunal or the arbitral procedure was not in accordance
with the agreement of the parties or, failing such agreement, was not in accordance
with the law of the country where the arbitration took place; or

(e) the award has not yet become binding on the parties or has been set aside or
suspended by a court of the country in which, or under the law of which, that award
was made.

Recognition and enforcement of an arbitral award may also be refused if the Regional
Trial Court where recognition and enforcement is sought finds that:

(a) the subject-matter of the dispute is not capable of settlement by arbitration under the
law of the Philippines; or
 (b) the recognition or enforcement of the award would be contrary to the public policy of
the Philippines.

A party to a foreign arbitration proceeding may oppose an application for recognition and
enforcement of the arbitral award in accordance with the Special ADR Rules only on the grounds
enumerated under paragraphs (a) and (c) of Article 4.35 (Recognition and Enforcement). Any
other ground raised shall be disregarded by the Regional Trial Court.

B. NON-CONVENTION AWARD.

(a) A foreign arbitral award rendered in a state which is not a party to the New York
Convention will be recognized upon proof of the existence of comity and reciprocity and may be
treated as a convention award. If not so treated and if no comity or reciprocity exists, the non-
convention award cannot be recognized and/or enforced but may be deemed as presumptive
evidence of a right as between the parties in accordance with Section 48 of Rule 39 of the Rules
of Court.

(b) If the Regional Trial Court has recognized the arbitral award but a petition for
suspension of enforcement of that award is subsequently made, the Regional Trial Court may, if
it considers the petition to be proper, suspend the proceedings to enforce the award, and may
also, on the application of the party claiming recognition or enforcement of that award, order the
other party seeking suspension to provide appropriate security.

(c) If the petition for recognition or enforcement of the arbitral award is filed by a party and
a counter-petition for the rejection of the arbitral award is filed by the other party, the Regional
Trial Court may, if it considers the counter-petition to be proper but the objections thereto may be
rectified or cured, remit the award to the arbitral tribunal for appropriate action and in the meantime
suspend the recognition and enforcement proceedings and may also on the application of the
petitioner order the counter-petitioner to provide appropriate security.

Article 4.37. Appeal from Court Decision on Arbitral Awards. A decision of the
Regional Trial Court recognizing, enforcing, vacating or setting aside an arbitral award may be
appealed to the Court of Appeals in accordance with the rules of procedure to be promulgated by
the Supreme Court.

The losing party who appeals from the judgment of the court recognizing and enforcing an
arbitral award shall be required by the Court of Appeals to post a counter-bond executed in favor
of the prevailing party equal to the amount of the award in accordance with the Special ADR
Rules.

Any stipulation by the parties that the arbitral tribunal’s award or decision shall be final,
and therefore not appealable, is valid. Such stipulation carries with it a waiver of the right to appeal
from an arbitral award but without prejudice to judicial review by way of certiorari under Rule 65
of the Rules of Court.

Article 4.38. Venue and Jurisdiction. Proceedings for recognition and enforcement of
an arbitration agreement or for vacation or setting aside of an arbitral award, and any
application with a court for arbitration assistance and supervision, except appeal, shall be
deemed as special proceedings and shall be filed with the Regional Trial Court where:

(a) the arbitration proceedings are conducted;

(b) where the asset to be attached or levied upon, or the act to be enjoined is
located;

(c) where any of the parties to the dispute resides or has its place of
business; or

(d) in the National Capital Judicial Region at the option of the applicant.

Article 4.39. Notice of Proceedings to Parties. In a special proceeding for recognition

and enforcement of an arbitral award, the court shall send notice to the parties at their address of
record in the arbitration, or if any party cannot be served notice at such address, at such party’s
last known address. The notice shall be sent at least fifteen (15) days before the date set for the
initial hearing of the application.

Article 4.40. Legal Representation in International Commercial Arbitration. In

international commercial arbitration conducted in the Philippines, a party may be represented by
any person of his/her/its choice: Provided, that such representative, unless admitted to the
practice of law 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 to the
arbitration in which he/she appears.

Article 4.41. Confidentiality of Arbitration Proceedings. The arbitration proceedings,

including the records, evidence and the arbitral award, shall be considered confidential and shall
not be published except:

(a) with the consent of the parties; or

(b) for the limited purpose of disclosing to the court relevant documents in cases 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 prohibit disclosure of documents or information containing secret
processes, developments, research and other information where it is shown that the applicant
shall be materially prejudiced by an authorized disclosure thereof.

Article 4.42. Summary Nature of Proceedings before the Court. A petition for
recognition and enforcement of awards brought before the court shall be heard and dealt with
summarily in accordance with the Special ADR Rules.

Article 4.43. Death of a Party. Where a party dies after making a submission or a contract
to arbitrate as prescribed in these Rules, the proceeding may be begun or continued upon the
application of, or notice to, his/her executor or administrator, or temporary administrator of his/her
estate. In any such case, the court may issue an order extending the
time within which notice of a motion to recognize or vacate an award must be served. Upon
recognizing an award, where a party has died since it was filed or delivered, the court must enter
judgment in the name of the original party; and the proceedings thereupon are the same as where
a party dies after a verdict.

Article 4.44. Multi-Party Arbitration. When a single arbitration involves more than two
parties, the foregoing rules, to the extent possible, shall be used, subject to such modifications
consistent with this Chapter as the arbitral tribunal shall deem appropriate to address possible
complexities of a multi-party arbitration.

Article 4.45. Consolidation of Proceedings and Concurrent Hearings. The parties

and the arbitral tribunal may agree –

(a) that the arbitration proceedings shall be consolidated with other arbitration
proceedings; or

(b) that concurrent hearings shall be held, on such terms as may be agreed.

Unless the parties agree to confer such power on the arbitral tribunal, the tribunal has no
power to order consolidation of arbitration proceedings or concurrent hearings.

Article 4.46. Costs. (a) The arbitral tribunal shall fix the costs of arbitration in its award.
The term “costs” include only:

(i) The fees of the arbitral tribunal to be stated separately as to each arbitrator and to
be fixed by the tribunal itself in accordance with the paragraph (b) of this Article;

(ii) The travel and other expenses incurred by the arbitrators;

(iii) The costs of expert advice and of other assistance required by the arbitral tribunal;

(iv) The travel and other expenses of witnesses to the extent such expenses are
approved by the arbitral tribunal;

(v) The costs for legal representation and assistance of the successful party if such
costs were claimed during the arbitral proceedings, and only to the extent that the
arbitral tribunal determines that the amount of such costs is reasonable;

(vi) Any fees and expenses of the appointing authority.

(b) The fees of the arbitral tribunal shall be reasonable in amount, taking into account the
amount in dispute, the complexity of the subject matter, the time spent by the arbitrators and any
other relevant circumstances of the case.

If an appointing authority has been agreed upon by the parties and if such authority has
issued a schedule of fees for arbitrators in international cases which it administers, the arbitral
tribunal in fixing its fees shall take that schedule of fees into account to the extent that it
considers appropriate in the circumstances of the case.

If such appointing authority has not issued a schedule of fees for arbitrators in international
cases, any party may, at any time request the appointing authority to furnish a statement setting
forth the basis for establishing fees which is customarily followed in international cases in which
the authority appoints arbitrators. If the appointing authority consents to provide such a statement,
the arbitral tribunal, in fixing its fees, shall take such information into account to the extent that it
considers appropriate in the circumstances of the case.

(c) In cases referred to in the second and third sub-paragraphs of paragraph (b) of this Article,
when a party so requests and the appointing authority consents to perform the function, the
arbitral tribunal shall fix its fees only after consultation with the appointing authority which may
make any comment it deems appropriate to the arbitral tribunal concerning the fees.

(d) Except as provided in the next sub-paragraph of this paragraph, the costs of arbitration
shall, in principle, be borne by the unsuccessful party. However, the arbitral tribunal may apportion
each of such costs between the parties if it determines that apportionment is reasonable, taking
into account the circumstances of the case.

With respect to the costs of legal representation and assistance referred to in paragraph
(c) of paragraph (a) (iii) of this Article, the arbitral tribunal, taking into account the circumstances
of the case, shall be free to determine which party shall bear such costs or may apportion such
costs between the parties if it determines that appointment is reasonable.

When the arbitral tribunal issues an order for the termination of the arbitral proceedings or
makes an award on agreed terms, it shall fix the costs of arbitration referred to in paragraphs (b),
(c) and (d) of this Article in the context of that order or award.

(e) The arbitral tribunal, on its establishment, may request each party to deposit an equal
amount as an advance for the costs referred to in paragraphs (i), (ii) and (iii) of paragraph (a) of
this Article.

During the course of the arbitral proceedings, the arbitral tribunal may request
supplementary deposits from the parties.

If an appointing authority has been agreed upon by the parties and when a party so requests
and the appointing authority consents to perform the function, the arbitral tribunal shall fix the
amounts of any deposits or supplementary deposits only after consultation with the appointing
authority which may make any comments to the arbitral tribunal which it deems appropriate
concerning the amount of such deposits and supplementary deposits.

If the required deposits are not paid in full within thirty (30) days after receipt of the request,
the arbitral tribunal shall so inform the parties in order that the required payment may be made.
If such payment is not made, the arbitral tribunal may order the suspension or termination of
the arbitral proceedings.
 After the award has been made, the arbitral tribunal shall render an accounting to the
parties of the deposits received and return any unexpended balance to the parties.

CHAPTER 5
DOMESTIC ARBITRATION

RULE 1 - General Provisions

Article 5.1. Scope of Application. (a) Domestic arbitration, which is not international as
defined in paragraph C8 of Article 1.6 shall continue to be governed by Republic Act No. 876,
otherwise known as “The Arbitration Law”, as amended by the ADR Act. Articles 8, 10, 11, 12,
13, 14, 18 and 19 and 29 to 32 of the Model Law and Sections 22 to 31 of the ADR Act are
specifically applicable to domestic arbitration.

In the absence of a specific applicable provision, all other rules applicable to international
commercial arbitration may be applied in a suppletory manner to domestic arbitration.

(b) This Chapter shall apply to domestic arbitration whether the dispute is commercial, as
defined in Section 21 of the ADR Act, or non-commercial, by an arbitrator who is a private
individual appointed by the parties to hear and resolve their dispute by rendering an award;
Provided that, although a construction dispute may be commercial, it shall continue to be
governed by E.O. No. 1008, s.1985 and the rules promulgated by the Construction Industry
Arbitration Commission.

(c) Two or more persons or parties may submit to arbitration by one or more arbitrators
any controversy existing between them at the time of the submission and which may be the
subject of an action; or the parties to any contract may in such contract agree to settle by
arbitration a controversy thereafter arising between them. Such submission or contract shall be
valid, enforceable and irrevocable, save upon such grounds as exist at law for the revocation of
any contract.

Such submission or contract may include questions arising out of valuations, appraisals
or other controversies which may be collateral, incidental, precedent or subsequent to any dispute
between the parties.

A controversy cannot be arbitrated where one of the parties to the controversy is an infant,
or a person judicially declared to be incompetent, unless the appropriate court having jurisdiction
approved a petition for permission to submit such controversy to arbitration made by the general
guardian or guardian ad litem of the infant or of the incompetent.

But where a person capable of entering into a submission or contract has knowingly
entered into the same with a person incapable of so doing, the objection on the ground of
incapacity can be taken only in behalf of the person so incapacitated.

Article 5.2. Delivery and Receipt of Written Communications. (a) Except as otherwise
agreed by the parties, a written communication from one party to the other or to the
arbitrator or to an arbitration institution or from the arbitrator or arbitration institution to the parties
shall be delivered to the addressee personally, by registered mail or by courier service. Such
communication shall be deemed to have been received on the date it is delivered at the
addressee’s address of record, place of business, residence or last known address. The
communication, as appropriate, shall be delivered to each party to the arbitration and to each
arbitrator, and, in institutional arbitration, one copy to the administering institution.

(b) During the arbitration proceedings, the arbitrator may order a mode of delivery and a
rule for receipt of written communications different from that provided in paragraph (a) of this
Article.

(c) If a party is represented by counsel or a representative, written communications for

that party shall be delivered to the address of record of such counsel or representative.

(d) Except as the parties may agree or the arbitrator may direct otherwise, a written
communication may be delivered by electronic mail or facsimile transmission or by such other
means that will provide a record of the sending and receipt thereof at the recipient’s mailbox
(electronic inbox). Such communication shall be deemed to have been received on the same date
of its transmittal and receipt in the mailbox (electronic inbox).

Article 5.3. Waiver of Right to Object. (a) A party shall be deemed to have waived his
right to object to non-compliance with any non-mandatory provision of these Rules (from which
the parties may derogate) or any requirement under the arbitration agreement when:

(i) he/she/it knows of such non-compliance; and

(ii) proceeds with the arbitration without stating his/her/its objections to such non-
compliance without undue delay or if a time-limit is provided therefor, within such
period of time.

(b) If an act is required or allowed to be done under this Chapter, unless the applicable
rule or the agreement of the parties provides a different period for the act to be done, it shall be
done within a period of thirty (30) days from the date when such act could have been done with
legal effect.

Article 5.4. Extent of Court Intervention. In matters governed by this Chapter, no court
shall intervene except in accordance with the Special ADR Rules.

Article 5.5. Court or Other Authority for Certain Functions of Arbitration Assistance
and Supervision. The functions referred to in paragraphs (c) and (d) of Article 5.10 (Appointment
of Arbitrators), paragraph (a) of Article 5.11 (Grounds for Challenge), and paragraph (a) of Article
5.13 (Failure or Impossibility to Act), shall 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 renew the application with the court.
 RULE 2 - Arbitration Agreement

Article 5.6. Form of Arbitration Agreement. An arbitration agreement shall be in writing.

An agreement is in writing if it is contained in a document signed by the parties or in an exchange
of letters, telex, telegrams or other means of telecommunication which provide a record of the
agreement, or in an exchange of statements of claim and defense in which the existence of an
agreement is alleged by one party and not denied by the other. The reference in a contract to a
document containing an arbitration clause constitutes an arbitration agreement provided that the
contract is in writing and the reference is such as to make that clause part of the contract.

Article 5.7. Arbitration Agreement and Substantive Claim Before Court. (a) A party to
an action may request the court before which it is pending to stay the action and to refer the
dispute to arbitration in accordance with their arbitration agreement not later than the pre-trial
conference. Thereafter, both parties may make a similar request with the court. The parties shall
be referred to arbitration unless the court finds that the arbitration agreement is null and void,
inoperative or incapable of being performed.

(b) Where an action referred to in paragraph (a) of this Article has been brought, arbitral
proceedings may nevertheless be commenced or continued, and an award may be made, while
the issue is pending before the court.

(c) Where the action is commenced by or against multiple parties, one or more of whom
are parties to an arbitration agreement, the court shall refer to arbitration those parties who are
bound by the arbitration agreement although the civil action may continue as to those who are
not bound by such arbitration agreement.

Article 5.8. Arbitration Agreement and Interim Measures by Court. (a) It is not
incompatible with an arbitration agreement for a party to request from a court, before the
constitution of the arbitral tribunal or during arbitral proceedings, an interim measure of protection
and for a court to grant such measure.

(b) After the constitution of the arbitral tribunal and during arbitral proceedings, a request
for an interim measure of protection, or modification thereof, may be made with the 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.

(c) The following rules on interim or provisional relief shall be observed:

(i) Any party may request that interim or provisional relief be granted against the
adverse party.

(ii) Such relief may be granted:

(aa) To prevent irreparable loss or injury;

(bb) To provide security for the performance of an obligation;

 (cc) To produce or preserve evidence; or

(dd) To compel any other appropriate act or omissions.

(iii) The order granting provisional relief may be conditioned upon the provision of
security or any act or omission specified in the order.

(iv) Interim or provisional relief is requested by written application transmitted by

reasonable means to the arbitral tribunal and the party against whom relief is
sought, describing in appropriate detail of the precise relief, the party against
whom the relief is requested, the ground for the relief, and the evidence
supporting the request.

(v) The order either granting or denying an application for interim relief shall be
binding upon the parties.

(vi) Either party may apply with the court for assistance in implementing or enforcing
an interim measure ordered by an arbitral tribunal.

(vii) A party who does not comply with the order shall be liable for all damages,
resulting from noncompliance, including all expenses, and reasonable attorney’s
fees, paid in obtaining the order’s judicial enforcement.

(d) Unless otherwise agreed by the parties, the arbitral tribunal may, at the request of a
party, order any party to take such interim measures of protection as the arbitral tribunal may
consider necessary in respect of the subject matter of the dispute following the Rules in this
Article. Such interim measures may include but shall not be limited to preliminary injunction
directed against a party, appointment 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 implementing or enforcing an interim measure ordered by an arbitral tribunal.

RULE 3. Composition of Arbitral Tribunal

Article 5.9. Number of Arbitrators. The parties are free to determine the number of
arbitrators. Failing such determination, the number of arbitrators shall be three (3).

Article 5.10. Appointment of Arbitrators. (a) Any person appointed to serve as an

arbitrator must be of legal age, in full enjoyment of his/her civil rights and knows how to read and
write. No person appointed to serve as an arbitrator shall be related by blood or marriage within
the sixth degree to either party to the controversy. No person shall serve as an arbitrator in any
proceeding if he/she has or has had financial, fiduciary or other interest in the controversy or
cause to be decided or in the result of the proceeding, or has any personal bias, which might
prejudice the right of any party to a fair and impartial award.

No party shall select as an arbitrator any person to act as his/her champion or to advocate
his/her cause.
 (b) The parties are free to agree on a procedure of appointing the arbitrator or arbitrators.
If, in the contract for arbitration or in the submission, a provision is made for a method of appointing
an arbitrator or arbitrators, such method shall be followed.

(c) Failing such agreement,

(i) in an arbitration with three (3) arbitrators, each party shall appoint one (1) arbitrator,
and the two (2) arbitrators thus appointed shall appoint the third arbitrator; if a party
fails to appoint the arbitrator within thirty (30) days of receipt of a request to do so
from the other party, or if the two arbitrators fail to agree on the third arbitrator within
thirty (30) days of their appointment, the appointment shall be made, upon request
of a party, by the appointing authority;

(ii) in an arbitration with a sole arbitrator, if the parties are unable to agree on the
arbitrator, he/she shall be appointed, upon request of a party, by the appointing
authority.

(d) Where, under an appointment procedure agreed upon by the parties,

(i) a party fails to act or appoint an arbitrator as required under such

procedure, or

(ii) the parties, or two (2) arbitrators, are unable to appoint an arbitrator or
reach an agreement expected of them under such procedure, or

(iii) a third party, including an institution, fails to appoint an arbitrator or to

perform any function entrusted to it under such procedure, or

(iv) The multiple claimants or the multiple respondents is/are unable to

appoint its/their respective arbitrator,

any party may request the appointing authority to appoint an arbitrator.

In making the appointment, the appointing authority shall summon the parties and their
respective counsel to appear before said authority on the date, time and place set by it, for the
purpose of selecting and appointing a sole arbitrator. If a sole arbitrator is not appointed in such
meeting, or the meeting does not take place because of the absence of either or both parties
despite due notice, the appointing authority shall appoint the sole arbitrator.

(e) If the default appointment of an arbitrator is objected to by a party on whose behalf the
default appointment is to be made, and the defaulting party requests the appointing authority for
additional time to appoint his/her arbitrator, the appointing authority, having regard to the
circumstances, may give the requesting party not more than thirty (30) days to make the
appointment.

If the objection of a party is based on the ground that the party did not fail to choose and
appoint an arbitrator for the arbitral tribunal, there shall be attached to the objection the
appointment of an arbitrator together with the latter’s acceptance thereof and curriculum vitae.
Otherwise, the appointing authority shall appoint the arbitrator for that party.

(f) In making a default appointment, the appointing authority shall have regard to such
considerations as are likely to secure the appointment of an independent and impartial arbitrator.
In order to achieve speedy and impartial justice and to moderate the cost of arbitration, in choosing
an arbitrator, the appointing authority shall give preference to a qualified person who has a place
of residence or business in the same general locality as the agreed venue of the arbitration and
who is likely to accept the arbitrator’s fees agreed upon by the parties, or as fixed in accordance
either with the internal guidelines or the Schedule of Fees approved by the administering
institution or by the appointing authority.

(g) The appointing authority shall give notice in writing to the parties of the appointment
made or its inability to comply with the Request for Appointment and the reasons why it is unable
to do so, in which later case, the procedure described under Article 5.5 (Court or Other Authority
for Certain Functions of arbitration Assistance and Supervision) shall apply.

(h) A decision on a matter entrusted by this Article to the appointing authority shall be
immediately executory and not subject to appeal or motion for reconsideration. The appointing
authority shall be deemed to have been given by the parties discretionary authority in making the
appointment but in doing so, the appointing authority shall have due regard to any qualification or
disqualification of an arbitrator/s under paragraph (a) of Article 5.10 (Appointment of Arbitrators)
as well as any qualifications required of the arbitrator/s by the agreement of the parties and to
such considerations as are likely to secure the appointment of an independent and impartial
arbitrator.

(i) The chairman of the arbitral tribunal shall be selected in accordance with the
agreement of the parties and/or the rules agreed upon or, in default thereof, by the arbitrators
appointed.

(j) Any clause giving one of the parties the power to choose more arbitrators than the
other is void. However, the rest of the agreement, if otherwise valid, shall be construed as
permitting the appointment of one (1) arbitrator by all claimants and one (1) arbitrator by all
respondents. The third arbitrator shall be appointed as provided above.

If all the claimants or all the respondents cannot decide among themselves on an
arbitrator, the appointment shall be made for them by the appointing authority.

(k) The appointing authority may adopt Guidelines for the making of a Request for
Appointment.

(l) Except as otherwise provided in the Guidelines of the appointing authority, if any, a
Request for Appointment shall include, as applicable, the following:

(i) the demand for arbitration;

(ii) the name/s and curricula vitae of the appointed arbitrator/s;

 (iii) the acceptance of his/her/its appointment of the appointed arbitrator/s;

(iv) any qualification or disqualification of the arbitrator as provided in the arbitration

agreement;

(v) an executive summary of the dispute which should indicate the nature
of the dispute and the parties thereto;

(vi) principal office and officers of a corporate party;

(vii) the person/s appearing as counsel for the party/ies; and

(viii) information about arbitrator’s fees where there is an agreement between the
parties with respect thereto.

In institutional arbitration, the request shall include such further information or particulars
as the administering institution shall require.

(m) A copy of the Request for Appointment shall be delivered to the adverse party. Proof
of such delivery shall be included in, and shall form part of, the Request for Appointment filed with
the appointing authority.

(n) A party upon whom a copy of the Request for Appointment is communicated may,
within seven (7) days of its receipt, file with the appointing authority his/her/its objection/s to the
Request or ask for an extension of time, not exceeding thirty (30) days from receipt of the request,
to appoint an arbitrator or act in accordance with the procedure agreed upon or provided by these
Rules.

Within the aforementioned periods, the party seeking the extension shall provide the
appointing authority and the adverse party with a copy of the appointment of his/her arbitrator, the
latter’s curriculum vitae, and the latter’s acceptance of the appointment. In the event that the said
party fails to appoint an arbitrator within said period, the appointing authority shall make the default
appointment.

(o) An arbitrator, in accepting an appointment, shall include, in his/her acceptance letter,

a statement that:

(i) he/she agrees to comply with the applicable law, the arbitration rules
agreed upon by the parties, or in default thereof, these Rules, and the
Code of Ethics for Arbitrators in Domestic Arbitration, if any;

(ii) he/she accepts as compensation the arbitrator’s fees agreed upon by the parties
or as determined in accordance with the rules agreed upon by the parties, or in
default thereof, these Rules; and
 (iii) he agrees to devote as much time and attention to the arbitration as the
circumstances may require in order to achieve the objective of a speedy, effective
and fair resolution of the dispute.

Article 5.11. Grounds for Challenge. (a) When a person is approached in connection
with his/her possible appointment as an arbitrator, he/she shall disclose any circumstance likely
to give rise to justifiable doubts as to his/her impartiality, independence, qualifications and
disqualifications. An arbitrator, from the time of his/her appointment and throughout the arbitral
proceedings, shall, without delay, disclose any such circumstances to the parties unless they have
already been informed of them by him/her.

A person, who is appointed as an arbitrator notwithstanding the disclosure made in

accordance with this Article, shall reduce the disclosure to writing and provide a copy of such
written disclosure to all parties in the arbitration.

(b) An arbitrator may be challenged only if:

(i) circumstances exist that give rise to justifiable doubts as to his/her impartiality or
independence;

(ii) he/she does not possess qualifications as provided for in this Chapter or those
agreed to by the parties;

(iii) he/she is disqualified to act as arbitration under these Rules;

(iv) he refuses to respond to questions by a party regarding the nature and extent of
his professional dealings with a party or its counsel.

(c) If, after appointment but before or during hearing, a person appointed to serve as an
arbitrator shall discover any circumstance likely to create a presumption of bias, or which he/she
believes might disqualify him/her as an impartial arbitrator, the arbitrator shall immediately
disclose such information to the parties. Thereafter, the parties may agree in writing:
(i) to waive the presumptive disqualifying circumstances; or

(ii) to declare the office of such arbitrator vacant. Any such vacancy shall
be filled in the same manner the original appointment was made.

(d) After initial disclosure is made and in the course of the arbitration proceedings, when
the arbitrator discovers circumstances that are likely to create a presumption of bias, he/she shall
immediately disclose those circumstances to the parties. A written disclosure is not required
where it is made during the arbitration and it appears in a written record of the arbitration
proceedings.

(e) An arbitrator who has or has had financial or professional dealings with a party to the
arbitration or to the counsel of either party shall disclose in writing such fact to the parties, and
shall, in good faith, promptly respond to questions from a party regarding the nature, extent and
age of such financial or professional dealings.
 Article 5.12. Challenge Procedure. (a) The parties are free to agree on a procedure
for challenging an arbitrator, subject to the provisions of paragraph (c) of this Article.

(b) Failing such agreement, a party who intends to challenge an arbitrator shall, within
fifteen (15) days after becoming aware of the constitution of the arbitral tribunal or after becoming
aware of any circumstance referred to in paragraph (b) of Article 5.11 (Grounds for Challenge),
send a written statement of the reasons for the challenge to the arbitral tribunal. Unless the
challenged arbitrator withdraws from his/her office or the other party agrees to the challenge, the
arbitral tribunal shall decide on the challenge.

(c) If a challenge under any procedure agreed upon by the parties or under the procedure
of paragraph (b) of this Article is not successful, the challenging party may request the appointing
authority, within thirty (30) days after having received notice of the decision rejecting the
challenge, to decide on the challenge, which decision shall be immediately executory and not
subject to appeal or motion for reconsideration. While such a request is pending, the arbitral
tribunal, including the challenged arbitrator, may continue the arbitral proceedings and make an
award.

(d) If a request for inhibition is made, it shall be deemed as a challenge.

(e) A party may challenge an arbitrator appointed by him/her/it, or in whose appointment

he/she/it has participated, only for reasons of which he/she/it becomes aware after the
appointment has been made.

(f) The challenge shall be in writing and it shall state specific facts that provide the basis
for the ground relied upon for the challenge. A challenge shall be made within fifteen (15) days
from knowledge by a party of the existence of a ground for a challenge or within fifteen (15) days
from the rejection by an arbitrator of a party’s request for his/her inhibition.

(g) Within fifteen (15) days of receipt of the challenge, the challenged arbitrator shall
decide whether he/she shall accept the challenge or reject it. If he/she accepts the challenge,
he/she shall voluntarily withdraw as arbitrator. If he/she rejects it, he/she shall communicate,
within the same period of time, his/her rejection of the challenge and state the facts and arguments
relied upon for such rejection.

(h) An arbitrator who does not accept the challenge shall be given an opportunity to be
heard.

(i) Notwithstanding the rejection of the challenge by the arbitrator, the parties
may, within the same fifteen (15) day period, agree to the challenge.

(j) In default of an agreement of the parties to agree on the challenge thereby replacing
the arbitrator, the arbitral tribunal shall decide on the challenge within thirty (30) days from receipt
of the challenge.

(k) If the challenge procedure as agreed upon by the parties or as provided in this Article
is not successful, or a party or the arbitral tribunal shall decline to act, the challenging party may
request the appointing authority in writing to decide on the challenge within thirty (30) days after
having received notice of the decision rejecting the challenge. The appointing authority shall
decide on the challenge within fifteen (15) days from receipt of the request. If the appointing
authority shall fail to act on the challenge within thirty (30) days from the date of its receipt or
within such further time as it may fix, with notice to the parties, the requesting party may renew
the request with the court.
The request made under this Article shall include the challenge, the reply or explanation
of the challenged arbitrator and relevant communication, if any, from either party, or from the
arbitral tribunal.

(l) Every communication required or agreement made under this Article in respect of a
challenge shall be delivered, as appropriate, to the challenged arbitrator, to the parties, to the
remaining members of the arbitral tribunal and to the institution administering the arbitration, if
any.

(m) A challenged arbitrator shall be replaced if:

(i) he/she withdraws as arbitrator, or

(ii) the parties agree in writing to declare the office of arbitrator vacant, or

(iii) the arbitral tribunal decides the challenge and declares the office of the
challenged arbitrator vacant, or

(iv) the appointing authority decides the challenge and declares the office of the
challenged arbitrator vacant, or

(v) in default of the appointing authority, the court decides the challenge and
declares the office of the challenged arbitrator
vacant.

(n) The decision of the parties, the arbitral tribunal, the appointing authority, or in proper
cases, the court, to accept or reject a challenge is not subject to appeal or motion for
reconsideration.

(o) Until a decision is made to replace the arbitrator under this Article, the arbitration
proceeding shall continue notwithstanding the challenge, and the challenged arbitrator shall
continue to participate therein as an arbitrator. However, if the challenge incident is raised before
the court, because the parties, the arbitral tribunal or appointing authority failed or refused to act
within the period provided in paragraphs (j) and (k) of this Article, the arbitration proceeding shall
be suspended until after the court shall have decided the incident. The arbitration shall be
continued immediately after the court has delivered an order on the challenging incident. If the
court agrees that the challenged arbitrator shall be replaced, the parties shall immediately replace
the arbitrator concerned.

(p) The appointment of a substitute arbitrator shall be made pursuant to the procedure
applicable to the appointment of the arbitrator being replaced.
 Article 5.13. Failure or Impossibility to Act. (a) If an arbitrator becomes de jure or de
facto unable to perform his/her functions or for other reasons fails to act without undue delay,
his/her mandate terminates if he/she withdraws from his/her office or if the parties agree on the
termination. Otherwise, if a controversy remains concerning any of these grounds, any party may
request the appointing authority to decide on the termination of the mandate, which decision shall
be immediately executory and not subject to appeal or motion for reconsideration.

(b) If, under this Article or Article 5.12 (Challenge Procedure), an arbitrator withdraws from
his/her office or a party agrees to the termination of the mandate of an arbitrator, this does not
imply acceptance of the validity of any ground referred to in this Article or in Article 5.12.

Article 5.14. Appointment of Substitute Arbitrator. Where the mandate of an arbitrator

terminates under Articles 5.12 (Challenge Procedure) or 5.13 (Failure or Impossibility) or because
of his withdrawal from office for any other reason or because of the revocation of his mandate by
agreement of the parties or in any other case of termination of his/her mandate, a substitute
arbitrator shall be appointed according to the rules applicable to the appointment of the arbitrator
being replaced.

RULE 4 - Jurisdiction of Arbitral Tribunal

Article 5.15. Competence of Arbitral Tribunal to Rule on its Jurisdiction. (a) When a
demand for arbitration made by a party to a dispute is objected to by the adverse party, the arbitral
tribunal shall, in the first instance, resolve the objection when made on any of the following
grounds:

(i) the arbitration agreement is inexistent, void, unenforceable or not

binding upon a person for any reason, including the fact that the
adverse party is not privy to said agreement; or

(ii) the dispute is not arbitrable or is outside the scope of the arbitration
agreement; or

(iii) the dispute is under the original and exclusive jurisdiction of a court
or quasi-judicial body,

(b) If a party raises any of the grounds for objection, the same shall not preclude the
appointment of the arbitrator/s as such issue is for the arbitral tribunal to decide.

The participation of a party in the selection and appointment of an arbitrator and the filing
of appropriate pleadings before the arbitral tribunal to question its jurisdiction shall not be
construed as a submission to the jurisdiction of the arbitral tribunal or of a waiver of his/her/its
right to assert such grounds to challenge the jurisdiction of the arbitral tribunal or the validity of
the resulting award.

(c) The respondent in the arbitration may invoke any of such grounds to question before
the court the existence, validity, or enforceability of the arbitration agreement, or the propriety of
the arbitration, or the jurisdiction of the arbitrator and invoke the pendency of such action as
ground for suspension of the arbitration proceeding. The arbitral tribunal, having regard to the
circumstances of the case, and the need for the early and expeditious settlement of the dispute,
in light of the facts and arguments raised to question its jurisdiction, may decide either to suspend
the arbitration until the court has made a decision on the issue or continue with the arbitration.

(d) If a dispute is, under an arbitration agreement, to be submitted to arbitration, but before
arbitration is commenced or while it is pending, a party files an action before the court which
embodies or includes as a cause of action the dispute that is to be submitted to arbitration, the
filing of such action shall not prevent the commencement of the arbitration or the continuation of
the arbitration until the award is issued.

Article 5.16. Power of Arbitral Tribunal to Order Interim Measures. (a) Unless
otherwise agreed by the parties, the arbitral tribunal may, at the request of a party, order any party
to take such interim measures of protection as the arbitral tribunal may consider necessary in
respect of the subject matter of the dispute following the rules in this Article. Such interim
measures may include, but shall not be limited to preliminary injunction directed against a party,
appointment of receivers or detention, preservation, inspection of property that is the subject of
the dispute in arbitration.

(b) After the constitution of the arbitral tribunal, and during arbitral proceedings, a request
for interim measures of protection, or modification thereof, shall be made with the arbitral tribunal.
The arbitral tribunal is deemed constituted when the sole arbitrator or the third arbitrator, who has
been nominated, has accepted the nomination and written communication of said nomination and
acceptance has been received by the party making the request.

(c) The following rules on interim or provisional relief shall be observed:

(i) Any party may request that provisional or interim relief be granted
against the adverse party.

(ii) Such relief may be granted:

(aa) To prevent irreparable loss or injury;

(bb) To provide security for the performance of an obligation;

(cc) To produce or preserve evidence; or

(dd) To compel any other appropriate act or omissions.

(iii) The order granting provisional relief may be conditioned upon the
provision of security or any act or omission specified in the order.

(iv) Interim or provisional relief is requested by written application transmitted by

reasonable means to the arbitral tribunal and the party against whom relief is
sought, describing in appropriate detail the precise relief, the party against whom
 the relief is requested, the ground for the relief and the evidence supporting the
request.

(v) The order either granting or denying an application for interim relief shall be binding
upon the parties.

(vi) Either party may apply with the court for assistance in implementing or enforcing
an interim measure ordered by an arbitral tribunal.

(vii) A party who does not comply with the order shall be liable for all damages, resulting
from noncompliance, including all expenses, and reasonable attorney’s fees paid
in obtaining the order’s judicial enforcement.

RULE 5 - Conduct of Arbitral Proceedings

Article 5.17. Equal Treatment of Parties. The parties shall be treated with equality and
each party shall be given a full opportunity of presenting his/her/its case.

Article 5.18. Determination of Rules of Procedure. (a) Subject to the provisions of these
Rules, the parties are free to agree on the procedure to be followed by the arbitral tribunal in
conducting the proceedings.

(b) Failing such agreement, the arbitral tribunal may, subject to the provision of the ADR
Act, conduct the arbitration in such manner as it considers appropriate. The power conferred upon
the arbitral tribunal includes the power to determine admissibility, relevance, materiality and
weight of evidence.

Article 5.19. Place of Arbitration. (a) The parties are free to agree on the place of
arbitration. Failing such agreement, the place of arbitration shall be in Metro Manila 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.

(b) The arbitral tribunal may, unless otherwise agreed by the parties, meet at any place it
considers appropriate for consultation among its members, for hearing witnesses, experts or the
parties, or for inspection of goods, other property or documents.

Article 5.20. Commencement of Arbitral Proceedings. (a) Where there is a prior

arbitration agreement between the parties, arbitration is deemed commenced as follows:

(i) In institutional arbitration, arbitration is commenced in accordance with the

arbitration rules of the institution agreed upon by the parties.

(ii) In ad hoc arbitration, arbitration is commenced by the claimant upon delivering

to the respondent a demand for arbitration. A demand may be in any form
stating:

(aa) the name, address, and description of each of the parties;

 (bb) a description of the nature and circumstances of the
dispute giving rise to the claim;

(cc) a statement of the relief sought, including the amount of

the claim;

(dd) the relevant agreements, if any, including the arbitration

agreement, a copy of which shall be attached; and

(ee) appointment of arbitrators and /or demand to appoint.

(b) If the arbitration agreement provides for the appointment of a sole arbitrator, the
demand shall include an invitation of the claimant to the respondent to meet and agree upon such
arbitrator at the place, time and date stated therein which shall not be less than thirty (30) days
from receipt of the demand.

(c) If the arbitration agreement provides for the establishment of an arbitral tribunal of
three (3) arbitrators, the demand shall name the arbitrator appointed by the claimant. It shall
include the curriculum vitae of the arbitrator appointed by the claimant and the latter’s acceptance
of the appointment.

(d) Where there is no prior arbitration agreement, arbitration may be initiated by one party
through a demand upon the other to submit their dispute to arbitration. Arbitration shall be deemed
commenced upon the agreement by the other party to submit the dispute to arbitration.

(e) The demand shall require the respondent to name his/her/its arbitrator within a period
which shall not be less than fifteen (15) days from receipt of the demand. This period may be
extended by agreement of the parties. Within said period, the respondent shall give a written
notice to the claimant of the appointment of the respondent’s arbitrator and attach to the notice
the arbitrator’s curriculum vitae and the latter’s acceptance of the appointment.

Article 5.21. Language. (a) The parties are free to agree on the language or languages
to be used in the arbitral proceedings. Failing such agreement, the language to be used shall be
English or Filipino. The language/s agreed, unless otherwise specified therein, shall be used in
all hearings and all written statements, orders or other communication by the parties and the
arbitral tribunal.

(b) The arbitral tribunal may order that any documentary evidence shall be accompanied
by a translation into the language or languages agreed upon by the parties in accordance with
paragraph (a) of this Article.

Article 5.22. Statements of Claim and Defense. (a) Within the period of time agreed by
the parties or determined by the arbitral tribunal, the claimant shall state the facts supporting
his/her claim, the points at issue and the relief or remedy sought, and the respondent shall state
his/her defense in respect of these particulars, unless the parties may have otherwise agreed as
to the required elements of such statements. The parties may submit with their statements all
documents they consider to be relevant or may add a reference to the documents or other
evidence they will submit.

(b) Unless otherwise agreed by the parties, either party may amend or supplement
his/her/its claim or defense during the course of the arbitral proceedings, unless the arbitral
tribunal considers it inappropriate to allow such amendments having regard to the delay in making
it.

Article 5.23. Hearing and Written Proceedings. (a) In ad hoc arbitration, the procedure
determined by the arbitrator, with the agreement of the parties, shall be followed. In institutional
arbitration, the applicable rules of procedure of the arbitration institution shall be followed. In
default of agreement of the parties, the arbitration procedure shall be as provided in this Chapter.

(b) Within thirty (30) days from the appointment of the arbitrator or the constitution of an
arbitral tribunal, the arbitral tribunal shall call the parties and their respective counsels to a pre-
hearing conference to discuss the following matters:

(i) The venue or place/s where the arbitration proceeding may be conducted in an
office space, a business center, a function room or any suitable place agreed upon
by the parties and the arbitral tribunal, which may vary per
session/hearing/conference;

(ii) The manner of recording the proceedings;

(iii) The periods for the communication of the statement of claims, answer to the claims
with or without counterclaims, and answer to the counterclaim/s and the form and
contents of such pleadings;

(iv) The definition of the issues submitted to the arbitral tribunal for determination and
the summary of the claims and counterclaims of the parties;

(v) The manner by which evidence may be offered if an oral hearing is required, the
submission of sworn written statements in lieu of oral testimony, the cross-
examination and further examination of witnesses;

(vi) The delivery of certain types of communications such as pleadings, terms of

reference, order granting interim relief, final award and the like that, if made by
electronic or similar means, shall require further confirmation in the form of a hard
copy or hard copies delivered personally or by registered post;

(vii) The issuance of a subpoena or a subpoena duces tecum by the arbitral tribunal to
compel the production of evidence if either party shall or is likely to request it;

(viii) The manner by which expert testimony will be received if a party will or is likely to
request the arbitral tribunal to appoint one or more experts, and in such case, the
period for the submission to the arbitrator by the requesting party of the proposed
terms of reference for the expert, the fees to be paid, the manner of
 payment to the expert and the deposit by the parties or of the requesting party of
such amount necessary to cover all expenses associated with the referral of such
issues to the expert before the expert is appointed;

(ix) The possibility of either party applying for an order granting interim relief either with
the arbitral tribunal or with the court, and, in such case, the nature of the relief to
be applied for;

(x) The possibility of a site or ocular inspection, the purpose of such inspection, and in
such case, the date, place and time of the inspection and the manner of conducting
it, and the sharing and deposit of any associated fees and expenses;

(xi) The amount to be paid to the arbitral tribunal as fees and the associated costs,
charges and expenses of arbitration and the manner and timing of such payments;
and

(xii) Such other relevant matters as the parties and the arbitral tribunal may consider
necessary to provide for a speedy and efficient arbitration of the dispute.

(c) To the extent possible, the arbitral tribunal and the parties shall agree upon any such
matters and in default of agreement, the arbitral tribunal shall have the discretion and authority to
make the decision, although in making a decision, regard shall be given to the views expressed
by both parties.

(d) The arbitral tribunal shall, in consultation with the parties, fix the date/s and the time of
hearing, regard being given to the desirability of conducting and concluding an arbitration without
undue delay.

(e) The hearing set shall not be postponed except with the conformity of the arbitrator and
the parties and only for a good and sufficient cause. The arbitral tribunal may deny a request to
postpone or to cancel a scheduled hearing on the ground that a party has requested or is intending
to request from the court or from the arbitrator an order granting interim relief.

(f) A party may, during the proceedings, represent himself/herself/itself or be represented

or assisted by a representative as defined by these Rules.

(g) The hearing may proceed in the absence of a party who fails to obtain an adjournment
thereof or who, despite due notice, fails to be present, by himself/herself/itself or through a
representative, at such hearing.

(h) Only parties, their respective representatives, the witnesses and the administrative
staff of the arbitral tribunal shall have the right to be present during the hearing. Any other person
may be allowed by the arbitrator to be present if the parties, upon being informed of the presence
of such person and the reason for his/her presence, interpose no objection thereto.

(i) Issues raised during the arbitration proceeding relating to (a) the jurisdiction of the
arbitral tribunal over one or more of the claims or counter-claims, or (b) the arbitrability of a
particular claim or counter-claim, shall be resolved by the arbitral tribunal as threshold issues, if
the parties so request, unless they are intertwined with factual issues that they cannot be
resolved ahead of the hearing on the merits of the dispute.

(j) Each witness shall, before giving testimony, be required to take an oath/affirmation
before the arbitral tribunal, to tell the whole truth and nothing but the truth during the hearing.

(k) The arbitral tribunal shall arrange for the transcription of the recorded testimony of
each witness and require each party to share the cost of recording and transcription of the
testimony of each witness.

(l) Each party shall provide the other party with a copy of each statement or document
submitted to the arbitral tribunal and shall have an opportunity to reply in writing to the other party’s
statements and proofs.

(m) The arbitral tribunal may require the parties to produce such other documents or
provide such information as in its judgment would be necessary for it to render a complete, fair
and impartial award.

(n) The arbitral tribunal shall receive as evidence all exhibits submitted by a party properly
marked and identified at the time of submission.

(o) At the close of the hearing, the arbitral tribunal shall specifically inquire of all parties
whether they have further proof or witnesses to present; upon receiving a negative reply, the
arbitral tribunal shall declare the hearing closed.

(p) After a hearing is declared closed, no further motion or manifestation or submission

may be allowed except for post-hearing briefs and reply briefs that the parties have agreed to
submit within a fixed period after the hearing is declared closed, or when the arbitral tribunal, motu
proprio or upon request of a party, allows the reopening of the hearing.

(q) Decisions on interlocutory matters shall be made by the sole arbitrator or by the
majority of the arbitral tribunal. The arbitral tribunal may authorize its chairman to issue or release,
on behalf of the arbitral tribunal, its decision on interlocutory matters.

(r) Except as provided in Section 17 (d) of the ADR Act, no arbitrator shall act as a
mediator in any proceeding in which he/she is acting as arbitrator even if requested by the parties;
and all negotiations towards settlement of the dispute must take place without the presence of
the arbitrators.

(s) Before assuming the duties of his/her office, an arbitrator must be sworn by any officer
authorized by law to administer an oath or be required to make an affirmation to faithfully and
fairly hear and examine the matters in controversy and to make a just award according to the best
of his/her ability and understanding. A copy of the arbitrator’s oath or affirmation shall be furnished
each party to the arbitration.

(t) Either party may object to the commencement or continuation of an arbitration

proceeding unless the arbitrator takes an oath or affirmation as required in this Chapter. If the
arbitrator shall refuse to take an oath or affirmation as required by law and this Rule, he/she
shall be replaced. The failure to object to the absence of an oath or affirmation shall be deemed
a waiver of such objection and the proceedings shall continue in due course and may not later be
used as a ground to invalidate the proceedings.

(u) The arbitral tribunal shall have the power to administer oaths to, or require affirmation
from, all witnesses directing them to tell the truth, the whole truth and nothing but the truth in any
testimony, oral or written, which they may give or offer in any arbitration hearing. The oath or
affirmation shall be required of every witness before his/her testimony, oral or written, is heard or
considered.

(v) The arbitral tribunal shall have the power to require any person to attend a hearing as
a witness. It shall have the power to subpoena witnesses, to testify and/or produce documents
when the relevancy and materiality thereof has been shown to the arbitral tribunal. The arbitral
tribunal may also require the exclusion of any witness during the testimony of any other witness.
Unless the parties otherwise agree, all the arbitrators appointed in any controversy must attend
all the hearings and hear the evidence of the parties.

Article 5.24. Power of Arbitral Tribunal to Order Interim Measures. (a) Unless
otherwise agreed by the parties, the arbitral tribunal may, at the request of a party and in
accordance with this Article, order any party to take such interim measures of protection as the
arbitral tribunal may consider necessary in respect of the subject matter of the dispute or the
procedure. Such interim measures may include, but shall not be limited, to preliminary injunction
directed against a party, appointment of receivers or detention of property that is the subject of
the dispute in arbitration or its preservation or inspection.

(b) After the constitution of the arbitral tribunal, and during the arbitration proceedings, a
request for interim measures of protection, or modification thereof, may be made with the arbitral
tribunal. The arbitral tribunal is deemed constituted when the sole arbitrator or the third arbitrator,
who has been nominated, has accepted the nomination and written communication of said
nomination and acceptance has been received by the party making the request.

(c) The following rules on interim or provisional relief shall be observed:

(i) Any party may request that provisional or interim relief be granted against the
adverse party.

(ii) Such relief may be granted:

(aa) To prevent irreparable loss or injury;

(bb) To provide security for the performance of an obligation;

(cc) To produce or preserve evidence; or

(dd) To compel any other appropriate act or omissions.

(iii) The order granting provisional relief may be conditioned upon the provision of
security or any act or omission specified in the order.
 (iv) Interim provisional relief is requested by written application transmitted by
reasonable means to the arbitral tribunal and the party against whom relief is
sought, describing in appropriate detail of the precise relief, the party against whom
the relief is requested, the ground for the relief, and the evidence supporting the
request.

(v) The order either granting or denying an application for interim relief shall be binding
upon the parties.

(vi) Either party may apply with the court for assistance in implementing or enforcing
an interim measure ordered by an arbitral tribunal.

(vii) A party who does not comply with the order shall be liable for all damages, resulting
from noncompliance, including all expenses, and reasonably attorney’s fees, paid
in obtaining the order’s judicial enforcement.

(d) The arbitral tribunal shall have the power at any time, before rendering the award,
without prejudice to the rights of any party to petition the court to take measures to safeguard
and/or conserve any matter which is the subject of the dispute in arbitration.

Article 5.25. Default of a Party. Unless otherwise agreed by the parties, if, without
showing sufficient cause,

(a) the claimant fails to communicate his/her/its statement of claim in accordance with
paragraph (a) of Article 5.22 (Statements of Claim and Defense), the arbitral tribunal
shall terminate the proceedings;

(b) the respondent fails to communicate his/her/its statement of defense in accordance

with paragraph (a) of Article 5.22 (Statements of Claim and Defense), the arbitral
tribunal shall continue the proceedings without treating such failure in itself as an
admission of the claimant’s allegations;

(c) any party fails to appear at a hearing or to produce documentary evidence, the arbitral
tribunal may continue the proceedings and make the award based on the evidence
before it.

Article 5.26. Expert Appointed by the Arbitral Tribunal. (a) Unless otherwise agreed
by the parties, the arbitral tribunal,

(i) may appoint one or more experts to report to it on specific issues to be

determined by the arbitral tribunal; or

(ii) may require a party to give the expert any relevant information or to produce, or to
provide access to, any relevant documents, goods or other property for his/her
inspection.
 (b) Unless otherwise agreed by the parties, if a party so requests or if the arbitral tribunal
considers it necessary, the expert shall, after delivery of his/her written or oral report, participate
in a hearing where the parties have the opportunity to put questions to him/her and to present
expert witnesses in order to testify on the points at issue.

(c) Upon agreement of the parties, the finding of the expert engaged by the arbitral tribunal
on the matter/s referred to him shall be binding upon the parties and the arbitral tribunal.

Article 5.27. Court Assistance in Taking Evidence and Other Matters. (a) The arbitral
tribunal or a party, with the approval of the arbitral tribunal may request from a court, assistance
in taking evidence such as the issuance of subpoena ad testificandum and subpoena duces
tecum, deposition taking, site or ocular inspection, and physical examination of properties. The
court may grant the request within its competence and according to its rules on taking evidence.

(b) The arbitral tribunal or a party to the dispute interested in enforcing an order of the
arbitral tribunal may request from a competent court, assistance in enforcing orders of the arbitral
tribunal, including but not limited, to the following:

(i) Interim or provisional relief;

(ii) Protective orders with respect to confidentiality;

(iii) Orders of the arbitral tribunal pertaining to the subject matter of the dispute that
may affect third persons and/or their properties; and/or

(iv) Examination of debtors.

Article 5.28. Rules Applicable to the Substance of Dispute. (a) The arbitral tribunal
shall decide the dispute in accordance with such law as is chosen by the parties. In the absence
of such agreement, Philippine law shall apply.

(b) The arbitral tribunal may grant any remedy or relief which it deems just and equitable
and within the scope of the agreement of the parties, which shall include, but not be limited to, the
specific performance of a contract.

(c) In all cases, the arbitral tribunal shall decide in accordance with the terms of the
contract and shall take into account the usages of the trade applicable to the transaction.

Article 5.29. Decision Making by the Arbitral Tribunal. (a) In arbitration proceedings
with more than one arbitrator, any decision of the arbitral tribunal shall be made, unless otherwise
agreed by the parties, by a majority of all its members. However, questions of procedure may be
decided by the chairman of the arbitral tribunal, if so authorized by the parties or all members of
the arbitral tribunal.

(b) Unless otherwise agreed upon by the parties, the arbitral tribunal shall render its written
award within thirty (30) days after the closing of the hearings and/or submission of the parties’
respective briefs or if the oral hearings shall have been waived, within thirty (30) days
after the arbitral tribunal shall have declared such proceedings in lieu of hearing closed. This
period may be further extended by mutual consent of the parties.

Article 5.30. Settlement. (a) If, during arbitral proceedings, the parties settle the dispute,
the arbitral tribunal shall terminate the proceedings and, if requested by the parties and not
objected to by the arbitral tribunal, record the settlement in the form of an arbitral award on agreed
terms, consent award or award based on compromise.

(b) An award as rendered above shall be made in accordance with the provisions of Article
5.31 (Form and Contents of Award) and shall state that it is an award. Such an award has the
same status and effect as any other award on the merits of the case.

Article 5.31. Form and Contents of Award. (a) The award shall be made in writing and
shall be signed by the arbitral tribunal. In arbitration proceedings with more than one arbitrator,
the signatures of the majority of all members of the arbitral tribunal shall suffice, provided that the
reason for any omitted signature is stated.

(b) The award shall state the reasons upon which it is based, unless the parties have
agreed that no reasons are to be given or the award is an award on agreed terms, consent award
or award based on compromise under Article 5.30 (Settlement).

(c) The award shall state its date and the place of arbitration as determined in accordance
with paragraph (a) of Article 5.19 (Place of Arbitration). The award shall be deemed to have been
made at that place.

(d) After the award is made, a copy signed by the arbitrators in accordance with
paragraph (a) of this Article shall be delivered to each party.

(e) The award of the arbitral tribunal need not be acknowledged, sworn to under oath, or
affirmed by the arbitral tribunal unless so required in writing by the parties. If despite such
requirement, the arbitral tribunal shall fail to do as required, the parties may, within thirty days
from receipt of said award, request the arbitral tribunal to supply the omission. The failure of the
parties to make an objection or make such request within the said period shall be deemed a
waiver of such requirement and may no longer be raised as a ground to invalidate the award.

Article 5.32. Termination of Proceedings. (a) The arbitration proceedings are

terminated by the final award or by an order of the arbitral tribunal in accordance with paragraph
(b) of this Article.

(b) The arbitral tribunal shall issue an order for the termination of the arbitration
proceedings when:

(i) The claimant withdraws his claim, unless the respondent objects thereto for the
purpose of prosecuting his counterclaims in the same proceedings or the arbitral
tribunal recognizes a legitimate interest on his part in obtaining a final settlement
of the dispute; or

(ii) The parties agree on the termination of the proceedings; or

 (iii) The arbitral tribunal finds that the continuation of the proceedings has for any other
reason become unnecessary or impossible; or

(iv) The required deposits are not paid in full in accordance with paragraph (d) of Article
5.46 (Fees and Costs).

(c) The mandate of the arbitral tribunal ends with the termination of the arbitration
proceedings, subject to the provisions of Article 5.33 (Correction and Interpretation of Award,
Additional Award) and Article 5.34 (Application for Setting Aside an Exclusive Recourse Against
Arbitral Award).

(d) Except as otherwise provided in the arbitration agreement, no motion for

reconsideration, correction and interpretation of award or additional award shall be made with the
arbitral tribunal. The arbitral tribunal, by releasing its final award, loses jurisdiction over the dispute
and the parties to the arbitration. However, where it is shown that the arbitral tribunal failed to
resolve an issue submitted to him for determination, a verified motion to complete a final award
may be made within thirty (30) days from its receipt.

(e) Notwithstanding the foregoing, the arbitral tribunal may, for special reasons, reserve
in the final award or order, a hearing to quantify costs and determine which party shall bear the
costs or apportionment thereof as may be determined to be equitable. Pending determination of
this issue, the award shall not be deemed final for purposes of appeal, vacation, correction, or
any post-award proceedings.

Article 5.33. Correction and Interpretation of Award, Additional Award. (a) Within
thirty (30) days from receipt of the award, unless another period of time has been agreed upon by
the parties:

(i) A party may, with notice to the other party, the arbitral tribunal to correct in the award
any errors in computation, any clerical or typographical errors or any errors of
similar nature.

(ii) If so agreed by the parties, a party, with notice to the other party, may request the
arbitral tribunal to give an interpretation of a specific point or part of the award.

If the arbitral tribunal considers the request to be justified, it shall make the correction or
give the interpretation within thirty (30) days from receipt of the request. The interpretation shall
form part of the award.

(b) The arbitral tribunal may correct any error of the type referred to in paragraph (a) of
this Article on its own initiative within thirty (30) days of the date of the award.

(c) Unless otherwise agreed by the parties, a party may, with notice to the other party,
may request, within thirty (30) days of receipt of the award, the arbitral tribunal to make an
additional award as to claims presented in the arbitral proceedings but omitted from the award. If
the arbitral tribunal considers the request to be justified, it shall make the additional award within
sixty (60) days.
 (d) The arbitral tribunal may extend, if necessary, the period of time within which it shall
make a correction, interpretation or an additional award under paragraphs (a) and (c) of this
Article.

(e) The provisions of Article 5.31 (Form and Contents of Award) shall apply to a correction
or interpretation of the award or to an additional award.

Article 5.34. Application for Setting Aside an Exclusive Recourse against Arbitral
Award. The court, when asked to set aside an award, may, where appropriate and so requested
by a party, suspend the setting aside proceedings for a period of time determined by it in order to
give the arbitral tribunal an opportunity to resume the arbitral proceedings or to take such other
action as in the arbitral tribunal’s opinion will eliminate the grounds for setting aside an award.

Article 5.35. Grounds to Vacate an Arbitral Award. (a) The arbitral award may be
questioned, vacated or set aside by the appropriate court in accordance with the Special ADR
Rules only on the following grounds:

(i) The arbitral award was procured by corruption, fraud or other undue means; or

(ii) There was evident partiality or corruption in the arbitral tribunal or any of its
members; or

(iii) The arbitral tribunal was guilty of misconduct or any form of misbehavior that has
materially prejudiced the rights of any party such as refusing to postpone the
hearing upon sufficient cause shown or to hear evidence pertinent and material to
the controversy; or

(iv) One or more of the arbitrators was disqualified to act as such under this Chapter
and willfully refrained from disclosing such disqualification; or

(v) The arbitral tribunal exceeded its powers, or so imperfectly executed them, such
that a complete, final and definite award upon the subject matter submitted to it
was not made.

Any other ground raised to question, vacate or set aside the arbitral award shall be
disregarded by the court.

(b) Where a petition to vacate or set aside an award is filed, the petitioner may
simultaneously, or the oppositor may in the alternative, petition the court to remit the case to the
same arbitral tribunal for the purpose of making a new or revised final and definite award or to
direct a new hearing before the same or new arbitral tribunal, the members of which shall be
chosen in the manner originally provided in the arbitration agreement or submission. In the latter
case, any provision limiting the time in which the arbitral tribunal may make a decision shall be
deemed applicable to the new arbitral tribunal and to commence from the date of the court’s order.
 (c) Where a party files a petition with the court to vacate or set aside an award by reason
of omission/s that do not affect the merits of the case and may be cured or remedied, the adverse
party may oppose that petition and instead request the court to suspend the vacation or setting
aside proceedings for a period of time to give the arbitral tribunal an opportunity to cure or remedy
the award or resume the arbitration proceedings or take such other action as will eliminate the
grounds for vacation or setting aside.

RULE 6 - Recognition and Enforcement of Awards

Article 5.36. Confirmation of Award. The party moving for an order confirming,
modifying, correcting, or vacating an award, shall, at the time that such motion is filed with the
court for the entry of judgment thereon, also file the original or verified copy of the award, the
arbitration or settlement agreement, and such papers as may be required by the Special ADR
Rules.

Article 5.37. Judgment. Upon the grant of an order confirming, modifying or correcting
an award, judgment may be entered in conformity therewith in the court where said application
was filed. Costs of the application and the proceedings subsequent thereto may be awarded by
the court in its discretion. If awarded, the amount thereof must be included in the judgment.
Judgment will be enforced like court judgments.

Article 5.38. Appeal. A decision of the court confirming, vacating, setting aside, modifying
or correcting an arbitral award may be appealed to the Court of Appeals in accordance with
Special ADR Rules.

The losing party who appeals from the judgment of the Court confirming an arbitral award
shall be required by the Court of Appeals to post a counter-bond executed in favor of the prevailing
party equal to the amount of the award in accordance with the Special ADR Rules.

Article 5.39. Venue and Jurisdiction. Proceedings for recognition and enforcement of
an arbitration agreement or for vacation or setting aside of an arbitral award, and any application
with a court for arbitration assistance and supervision, except appeal, shall be deemed as special
proceedings and shall be filed with the court
(a) where the arbitration proceedings are conducted;

(b) where the asset to be attached or levied upon, or the act to be enjoined is located;

(c) where any of the parties to the dispute resides or has its place of business; or

(d) in the National Capital Judicial Region at the option of the applicant.

Article 5.40. Notice of Proceedings to Parties. In a special proceeding for recognition

and enforcement of an arbitral award, the court shall send notice to the parties at their address of
record in the arbitration, or if any party cannot be served notice at such address, at such party’s
last known address. The notice shall be sent at least fifteen (15) days before the date set for the
initial hearing of the application.
 Article 5.41. Legal Representation in Domestic Arbitration. (a) In domestic arbitration
conducted in the Philippines, a party may be represented by any person of his/her/its choice:
Provided, that such representative, unless admitted to the practice of law 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 to the arbitration in which he/she appears.

(b) No arbitrator shall act as a mediator in any proceeding in which he/she is acting as
arbitrator and all negotiations towards settlement of the dispute must take place without the
presence of the arbitrators.

Article 5.42. Confidentiality of Arbitration Proceedings. The arbitration proceedings,

including the records, evidence and the arbitral award and other confidential information, shall be
considered privileged and 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 relevant documents in cases 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 prohibit disclosure of documents or information containing secret
processes, developments, research and other information where it is shown that the applicant
shall be materially prejudiced by an authorized disclosure thereof.

Article 5.43. Death of a Party. Where a party dies after making a submission or a contract
to arbitrate as prescribed in these Rules, the proceeding may be begun or continued upon the
application of, or notice to, his/her executor or administrator, or temporary administrator of his/her
estate. In any such case, the court may issue an order extending the time within which notice of
a motion to recognize or vacate an award must be served. Upon recognizing an award, where a
party has died since it was filed or delivered, the court must enter judgment in the name of the
original party; and the proceedings thereupon are the same as where a party dies after a verdict.

Article 5.44. Multi-Party Arbitration. (a) When a single arbitration involves more than
two parties, these Rules, to the extent possible, shall be used subject to such modifications
consistent with Articles 5.17 (Equal Treatment of Parties) and 5.18 (Determination of Rules of
Procedure) as the arbitral tribunal shall deem appropriate to address possible complexities of a
multi-party arbitration.

(b) When a claimant includes persons who are not parties to or otherwise bound by the
arbitration agreement, directly or by reference, between him/her and the respondent as additional
claimants or additional respondents, the respondent shall be deemed to have consented to the
inclusion of the additional claimants or the additional respondents unless not later than the date
of communicating his/her answer to the request for arbitration, either by motion or by a special
defense in his answer, he objects, on jurisdictional grounds, to the inclusion of such additional
claimants or additional respondents. The additional respondents shall be deemed to have
consented to their inclusion in the arbitration unless, not later than the
date of communicating their answer to the request for arbitration, either by motion or a special
defense in their answer, they object, on jurisdictional grounds, to their inclusion.

Article 5.45. Consolidation of Proceedings and Concurrent Hearings. The parties

may agree that -

(a) the arbitration proceedings shall be consolidated with other arbitration

proceedings; or

(b) that concurrent hearings shall be held, on such terms as may be agreed.

Unless the parties agree to confer such power on the arbitral tribunal, the tribunal has no
power to order consolidation of arbitration proceedings or concurrent hearings.

Article 5.46. Fees and Costs. (a) The fees of the arbitrators shall be agreed upon by the
parties and the arbitrator/s in writing prior to the arbitration.

In default of agreement of the parties as to the amount and manner of payment of

arbitrator’s fees, the arbitrator’s fees shall be determined in accordance with the applicable
internal rules of the regular arbitration institution under whose rules the arbitration is conducted;
or in ad hoc arbitration, the Schedule of Fees approved by the IBP, if any, or in default thereof,
the Schedule of Fees that may be approved by the OADR.

(b) In addition to arbitrator’s fees, the parties shall be responsible for the payment of the
administrative fees of an arbitration institution administering an arbitration and cost of arbitration.
The latter shall include, as appropriate, the fees of an expert appointed by the arbitral tribunal, the
expenses for conducting a site inspection, the use of a room where arbitration proceedings shall
be or have been conducted, and expenses for the recording and transcription of the arbitration
proceedings.

(c) The arbitral tribunal shall fix the costs of arbitration in its award. The term “costs” include
only:

(i) The fees of the arbitral tribunal to be stated separately as to each arbitrator and to
be fixed by the arbitral tribunal itself in accordance with this Article;

(ii) The travel and other expenses incurred by the arbitrators;

(iii) The costs of expert advice and of other assistance required by the arbitral tribunal,
such as site inspection and expenses for the recording and transcription of the
arbitration proceedings;

(iv) The travel and other expenses of witnesses to the extent such expenses are
approved by the arbitral tribunal;

(v) The costs for legal representation and assistance of the successful party if such
costs were claimed during the arbitral proceedings, and only to the extent that the
arbitral tribunal determines that the amount of such costs is reasonable;
 (vi) Any fees and expenses of the appointing authority.

(d) The fees of the arbitral tribunal shall be reasonable in amount, taking into account the
amount in dispute, the complexity of the subject matter, the time spent by the arbitrators and any
other relevant circumstances of the case.

If an appointing authority has been agreed upon by the parties and if such appointing
authority has issued a schedule of fees for arbitrators in domestic cases which it administers, the
arbitral tribunal, in fixing its fees shall take that schedule of fees into account to the extent that it
considers appropriate in the circumstances of the case.

If such appointing authority has not issued a schedule of fees for arbitrators in international
cases, any party may, at any time request the appointing authority to furnish a statement setting
forth the basis for establishing fees which is customarily followed in international cases in which
the authority appoints arbitrators. If the appointing authority consents to provide such a statement,
the arbitral tribunal, in fixing its fees shall take such information into account to the extent that it
considers appropriate in the circumstances of the case.

In cases referred to in paragraph (d) of this Article, when a party so requests and the
appointing authority consents to perform the function, the arbitral tribunal shall fix its fees only
after consultation with the appointing authority which may make any comment it deems
appropriate to the arbitral tribunal concerning the fees.

(e) Except as provided in the next paragraph, the costs of arbitration shall, in principle, be
borne by the unsuccessful party. However, the arbitral tribunal may apportion each of such costs
between the parties if it determines that apportionment is reasonable, taking into account the
circumstances of the case.

With respect to the costs of legal representation and assistance referred to in paragraph
(c) (iii) of this Article, the arbitral tribunal, taking into account the circumstances of the case, shall
be free to determine which party shall bear such costs or may apportion such costs between the
parties if it determines that appointment is reasonable.

When the arbitral tribunal issues an order for the termination of the arbitral proceedings or
makes an award on agreed terms, it shall fix the costs of arbitration referred to in paragraph
(a) of this Article in the context of that order or award.

Except as otherwise agreed by the parties, no additional fees may be charged by the
arbitral tribunal for interpretation or correction or completion of its award under these Rules.

(f) The arbitral tribunal, on its establishment, may request each party to deposit an equal
amount as an advance for the costs referred to in paragraphs (i),(ii) and (iii) of paragraph (c) of
this Article.

During the course of the arbitral proceedings, the arbitral tribunal may request
supplementary deposits from the parties.
 If an appointing authority has been agreed upon by the parties, and when a party so requests
and the appointing authority consents to perform the function, the arbitral tribunal shall fix the
amounts of any deposits or supplementary deposits only after consultation with the appointing
authority which may make any comments to the arbitral tribunal which it deems appropriate
concerning the amount of such deposits and supplementary deposits.

If the required deposits are not paid in full within thirty (30) days after receipt of the request,
the arbitral tribunal shall so inform the parties in order that one of them may make the required
payment within such a period or reasonable extension thereof as may be determined by the
arbitral tribunal. If such payment is not made, the arbitral tribunal may order the termination of the
arbitral proceedings.

After the award has been made, the arbitral tribunal shall render an accounting to the
parties of the deposits received and return any unexpended balance to the parties.

CHAPTER 6
ARBITRATION OF CONSTRUCTION DISPUTES

The Construction Industry Arbitration Commission (CIAC), which has original and
exclusive jurisdiction over arbitration of construction disputes pursuant to Executive Order No.
1008, s. 1985, otherwise known as the “Construction Industry Arbitration Law”, shall promulgate
the Implementing Rules and Regulations governing arbitration of construction disputes,
incorporating therein the pertinent provisions of the ADR Act.

CHAPTER 7
OTHER ADR FORMS

RULE 1 - General Provisions

Article 7.1. Scope of Application and General Principles. Except as otherwise agreed,
this Chapter shall apply and supply the deficiency in the agreement of the parties for matters
involving the following forms of ADR:

(a) early neutral evaluation;

(b) neutral evaluation;

(c) mini-trial;

(d) mediation-arbitration;

(e) a combination thereof; or

(f) any other ADR form.

 Article 7.2. Applicability of the Rules on Mediation. If the other ADR form/process is
more akin to mediation (i.e., the neutral third-person merely assists the parties in reaching a
voluntary agreement), Chapter 3 governing Mediation shall have suppletory application to the
extent that it is not in conflict with the agreement of the parties or this Chapter.

Article 7.3. Applicability of the Rules on Arbitration. If the other ADR form/process is
more akin to arbitration (i.e., the neutral third-person has the power to make a binding resolution
of the dispute), Chapter 5 governing Domestic Arbitration shall have suppletory application to the
extent that it is not in conflict with the agreement of the parties or this Chapter.

Article 7.4. Referral. If a dispute is already before a court, either party may, before and
during pre-trial, file a motion for the court to refer the parties to other ADR forms/processes.
However, at any time during court proceedings, even after pre-trial, the parties may jointly move
for suspension/dismissal of the action pursuant to Article 2030 of the Civil Code of the Philippines.

Article 7.5. Submission of Settlement Agreement. Either party may submit to the court
before which the case is pending any settlement agreement following a neutral or an early neutral
evaluation, mini-trial or mediation-arbitration.

RULE 2 – Neutral or Early Neutral Evaluation

Article 7.6. Neutral or Early Neutral Evaluation. (a) The neutral or early neutral
evaluation shall be governed by the rules and procedure agreed upon by the parties. In the
absence of said agreement, this Rule shall apply.

(b) If the parties cannot agree on, or fail to provide for:

(i) The desired qualification of the neutral third person;

(ii) The manner of his/her selection;

(iii) The appointing authority (not IBP) who shall have the authority to
make the appointment of a neutral third person; or

(iv) if despite agreement on the foregoing and the lapse of the period of time
stipulated for the appointment, the parties are unable to select a neutral third
person or appointing authority,

then, either party may request the default appointing authority, as defined under paragraph C1 of
Article (Definition of Terms), to make the appointment taking into consideration the nature of the
dispute and the experience and expertise of the neutral third person.

(c) The parties shall submit and exchange position papers containing the issues and
statement of the relevant facts and appending supporting documents and affidavits of witnesses
to assist the neutral third person in evaluating or assessing the dispute.
 (d) The neutral third person may request either party to address additional issues that he
/she may consider necessary for a complete evaluation/assessment of the dispute.

(e) The neutral third person may structure the evaluation process in any manner he/she
deems appropriate. In the course thereof, the neutral third person may identify areas of
agreement, clarify the issues, define those that are contentious, and encourage the parties to
agree on a definition of issues and stipulate on facts or admit the genuineness and due execution
of documents.

(f) The neutral third person shall issue a written evaluation or assessment within thirty
(30) days from the conclusion of the evaluation process. The opinion shall be non-binding and
shall set forth how the neutral third person would have ruled had the matter been subject to a
binding process. The evaluation or assessment shall indicate the relative strengths and
weaknesses of the positions of the parties, the basis for the evaluation or assessment, and an
estimate, when feasible, of the amount for which a party may be liable to the other if the dispute
were made subject to a binding process.

(g) There shall be no ex-parte communication between the neutral third person and any
party to the dispute without the consent of all the parties.

(h) All papers and written presentations communicated to the neutral third person,
including any paper prepared by a party to be communicated to the neutral third person or to the
other party as part of the dispute resolution process, and the neutral third person’s written non-
binding assessment or evaluation, shall be treated as confidential.

RULE 3 – Mini-Trial

Article 7.7. Mini-Trial. (a) A mini-trial shall be governed by the rules and procedure
agreed upon by the parties. In the absence of said agreement, this Rule shall apply.

(b) A mini-trial shall be conducted either as: (i) a separate dispute resolution process; or
(ii) a continuation of mediation, neutral or early neutral evaluation or any other ADR process.

(c) The parties may agree that a mini-trial be conducted with or without the presence and
participation of a neutral third person. If a neutral third person is agreed upon and chosen, he/she
shall preside over the mini-trial. The parties may agree to appoint one or more (but equal in
number per party) senior executive/s, on its behalf, to sit as mini-trial panel members.

(d) The senior executive/s chosen to sit as mini-trial panel members must be duly
authorized to negotiate and settle the dispute with the other party. The appointment of a mini- trial
panel member/s shall be communicated to the other party. This appointment shall constitute a
representation to the other party that the mini-trial panel member/s has/have the authority to enter
into a settlement agreement binding upon the principal without any further action or ratification by
the latter.

(e) Each party shall submit a brief executive summary of the dispute in sufficient copies
as to provide one copy to each mini-trial panel member and to the adverse party. The summary
shall identify the specific factual or legal issue or issues. Each party may attach to the summary
a more exhaustive recital of the facts of the dispute and the applicable law and jurisprudence.

(f) At the date, time and place agreed upon, the parties shall appear before the mini- trial
panel member/s. The lawyer of each party and/or authorized representative shall present his/her
case starting with the claimant followed by the respondent. The lawyer and/or representative of
each party may thereafter offer rebuttal or sur-rebuttal arguments.

Unless the parties agree on a shorter or longer period, the presentation-in-chief shall be
made, without interruption, for one hour and the rebuttal or sur-rebuttal shall be thirty (30) minutes.

At the end of each presentation, rebuttal or sur-rebuttal, the mini-trial panel member/s may
ask clarificatory questions from any of the presentors.

(g) After the mini-trial, the mini-trial panel members shall negotiate a
settlement of the dispute by themselves.

In cases where a neutral third person is appointed, the neutral third person shall assist
the parties/mini-trial panel members in settling the dispute and, unless otherwise agreed by the
parties, the proceedings shall be governed by Chapter 3 on Mediation.

RULE 4 – Mediation-Arbitration

Article 7.8. Mediation-Arbitration. (a) A Mediation-Arbitration shall be governed by the

rules and procedure agreed upon by the parties. In the absence of said agreement, Chapter 3 on
Mediation shall first apply and thereafter, Chapter 5 on Domestic Arbitration.

(b) No person shall, having been engaged and having acted as mediator of a dispute
between the parties, following a failed mediation, act as arbitrator of the same dispute, unless the
parties, in a written agreement, expressly authorize the mediator to hear and decide the case as
an arbitrator.

(c) The mediator who becomes an arbitrator pursuant to this Rule shall make an
appropriate disclosure to the parties as if the arbitration proceeding had commenced and will
proceed as a new dispute resolution process, and shall, before entering upon his/her duties,
execute the appropriate oath or affirmation of office as arbitrator in accordance with these Rules.

RULE 5 – Costs and Fees

Article 7.9. Costs and Fees. (a) Before entering his/her duties as ADR Provider, he/she
shall agree with the parties on the cost of the ADR procedure, the fees to be paid and manner of
payment for his/her services.
 (b) In the absence of such agreement, the fees for the services of the ADR
provider/practitioner shall be determined as follows:

(i) If the ADR procedure is conducted under the rules and/or administered by an
institution regularly providing ADR services to the general public, the fees of the
ADR professional shall be determined in accordance with schedule of fees
approved by such institution, if any;

(ii) In ad hoc ADR, the fees shall be determined in accordance with the schedule of
fees approved by the OADR;

(iii) In the absence of a schedule of fees approved by the ADR institution or by the
OADR, the fees shall be determined by the ADR institution or the OADR, as the
case may be, on the basis of quantum meruit, taking into consideration, among
others, the length and complexity of the process, the amount in dispute and the
professional standing of the ADR professional.

(c) A contingency fee arrangement shall not be allowed. The amount that may be allowed
to an ADR professional may not be made dependent upon the success of his/her effort in helping
the parties to settle their dispute.

CHAPTER 8
MISCELLANEOUS PROVISIONS

Article 8.1. Amendments. These Rules or any portion hereof may be amended by the
Secretary of Justice.

Article 8.2. Separability Clause. If any part, article or provision of these Rules are
declared invalid or unconstitutional, the other parts hereof not affected thereby shall remain valid.

Article 8.3. Funding. The heads of departments and agencies concerned, especially the
Department of Justice, insofar as the funding requirements of the OADR is concerned, shall
immediately include in their annual appropriation the funding necessary to implement programs
and extend services required by the ADR Act and these Rules.

Article 8.4. Transitory Provisions. Considering the procedural character of the ADR Act
and these Rules, the provisions of these Rules shall be applicable to all pending arbitration,
mediation or other ADR forms covered by the ADR Act if the parties agree.

Article 8.5. Effectivity Clause. These Rules shall take effect fifteen (15) days after the
completion of its publication in at least two (2) national newspapers of general circulation.
APPROVED.

October 26, 2009

(Sgd.) AGNES VST DEVANADERA

Acting Secretary

Committee for the Formulation of the Implementing Rules and Regulations of the
Alternative Dispute Resolution Act of 2004:

Undersecretary Jose Vicente B. Salazar

Department of Justice

Undersecretary Zenaida N. Maglaya

Department of Trade and Industry

Director Nelda D. Leda

Department of the Interior and Local Government

Atty. Victor P. Lazatin

Representative of the President of the Integrated Bar of the Philippines

Atty. Custodio O. Parlade

Arbitration Profession

Atty. Alfredo F. Tadiar

Professor Annabelle T. Abaya
Mediation Profession

Atty. Mario E. Valderrama

ADR Organization
 OTHER PARTICIPANTS IN THE FORMULATION OF THE IMPLEMENTING RULES AND
REGULATIONS:

DEPARTMENT OF JUSTICE

Chief State Counsel Ricardo V. Paras III

Assistant Chief State Counsel Ruben F. Fondevilla
Retired Assistant Chief State Prosecutor Nilo C. Mariano
Senior State Counsel Marlyn L. Angeles
State Counsel Bernadette C. Ongoco
State Counsel Leilani R. Fajardo
Ms. Suerte T. Gamiao
Mr. Jose Mario B. Uy

DEPARTMENT OF TRADE AND INDUSTRY

Director Victorio Mario A. Dimagiba

PRESIDENT OF THE INTEGRATED BAR OF THE PHILIPPINES

Atty. Patricia Tysman-Clemente

MEDIATION PROFESSION

Former Prosecutor Dominador Bornasal, Jr.

UNCITRAL UNITED NATIONS COMMISSION ON INTERNATIONAL TRADE LAW

UNCITRAL Model Law on

International Commercial
Arbitration
1985
With amendments
as adopted in 2006

UNITED NATIONS
 Further information may be obtained from:

UNCITRAL secretariat, Vienna International Centre,

P.O. Box 500, 1400 Vienna, Austria

Telefax: (+43-1) 26060-5813

Email: uncitral@un.org
 UNITED NATIONS COMMISSION ON INTERNATIONAL TRADE LAW

UNCITRAL Model Law on

International Commercial
Arbitration

1985
With amendments
as adopted in 2006

UNITED NATIONS
Vienna, 2008
 NOTE

Symbols of United Nations documents are composed of capital letters

combined with figures. Mention of such a symbol indicates a reference to a
United Nations document.

UNITED NATIONS PUBLICATION

Sales No. E.08.V.4
ISBN 978-92-1-133773-0
 Contents
Page

Resolutions adopted by the General Assembly . . . . . . . . . . . . . . . . . . . . . . . . . . . vii

General Assembly Resolution 40/72 (11 December 1985) . . . . . . . . . . . . . . vii
General Assembly Resolution 61/33 (4 December 2006) . . . . . . . . . . . . . . .viii

Part One

UNCITRAL MODEL LAW ON INTERNATIONAL COMMERCIAL

ARBITRATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Chapter I. General provisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Article 1. Scope of application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Article 2. Definitions and rules of interpretation . . . . . . . . . . . . . . . . . . . . 2
Article 2A. International origin and general principles . . . . . . . . . . . . . . . . 3
Article 3. Receipt of written communications . . . . . . . . . . . . . . . . . . . . . . 3
Article 4. Waiver of right to object . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Article 5. Extent of court intervention . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Article 6. Court or other authority for certain functions of arbitration
assistance and supervision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Chapter II. Arbitration agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Article 7. Option I Definition and form of arbitration agreement . . . . . . 4
Option II Definition of arbitration agreement . . . . . . . . . . . . . 5
Article 8. Arbitration agreement and substantive claim before court . . . 5
Article 9. Arbitration agreement and interim measures by court . . . . . . . 5

Chapter III. Composition of arbitral tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Article 10. Number of arbitrators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Article 11. Appointment of arbitrators . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Article 12. Grounds for challenge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Article 13. Challenge procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Article 14. Failure or impossibility to act . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Article 15. Appointment of substitute arbitrator . . . . . . . . . . . . . . . . . . . . . 8

Chapter IV. Jurisdiction of arbitral tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Article 16. Competence of arbitral tribunal to rule on its jurisdiction . . . 8

iii
 Page

Chapter IV A. Interim measures and preliminary orders . . . . . . . . . . . . . . . . . . . 9

Section 1. Interim measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Article 17. Power of arbitral tribunal to order interim measures . . . 9
Article 17 A. Conditions for granting interim measures. . . . . . . . . . . 10

Section 2. Preliminary orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Article 17 B. Applications for preliminary orders and conditions
for granting preliminary orders . . . . . . . . . . . . . . . . . . . 10
Article 17 C. Specific regime for preliminary orders . . . . . . . . . . . . . 10

Section 3. Provisions applicable to interim measures and preliminary

orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Article 17 D. Modification, suspension, termination . . . . . . . . . . . . . . 11
Article 17 E. Provision of security . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Article 17 F. Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Article 17 G. Costs and damages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Section 4. Recognition and enforcement of interim measures . . . . . . . . . . 12

Article 17 H. Recognition and enforcement . . . . . . . . . . . . . . . . . . . . 12
Article 17 I. Grounds for refusing recognition or enforcement . . . . 13

Section 5. Court-ordered interim measures . . . . . . . . . . . . . . . . . . . . . . . . . 13

Article 17 J. Court-ordered interim measures . . . . . . . . . . . . . . . . . . 13

Chapter V. Conduct of arbitral proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Article 18. Equal treatment of parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Article 19. Determination of rules of procedure . . . . . . . . . . . . . . . . . . . . . 14
Article 20. Place of arbitration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Article 21. Commencement of arbitral proceedings . . . . . . . . . . . . . . . . . . 14
Article 22. Language . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Article 23. Statements of claim and defence. . . . . . . . . . . . . . . . . . . . . . . . 15
Article 24. Hearings and written proceedings . . . . . . . . . . . . . . . . . . . . . . . 15
Article 25. Default of a party . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Article 26. Expert appointed by arbitral tribunal . . . . . . . . . . . . . . . . . . . . 16
Article 27. Court assistance in taking evidence . . . . . . . . . . . . . . . . . . . . . 16

Chapter VI. Making of award and termination of proceedings . . . . . . . . . . . . . 17

Article 28. Rules applicable to substance of dispute . . . . . . . . . . . . . . . . . 17
Article 29. Decision-making by panel of arbitrators. . . . . . . . . . . . . . . . . . 17
Article 30. Settlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Article 31. Form and contents of award . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Article 32. Termination of proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Article 33. Correction and interpretation of award; additional award . . . 18

iv
 Page

Chapter VII. Recourse against award . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Article 34. Application for setting aside as exclusive recourse against
arbitral award . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Chapter VIII. Recognition and enforcement of awards . . . . . . . . . . . . . . . . . . . . 20

Article 35. Recognition and enforcement . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Article 36. Grounds for refusing recognition or enforcement . . . . . . . . . 21

Part Two

EXPLANATORY NOTE BY THE UNCITRAL SECRETARIAT ON THE

MODEL LAW ON INTERNATIONAL COMMERCIAL ARBITRATION . . . . . 23

A. Background to the Model Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

1. Inadequacy of domestic laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
2. Disparity between national laws . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

B. Salient features of the Model Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

1. Special procedural regime for international commercial
arbitration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
2. Arbitration agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
3. Composition of arbitral tribunal. . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
4. Jurisdiction of arbitral tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
5. Conduct of arbitral proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
6. Making of award and termination of proceedings . . . . . . . . . . . . . 33
7. Recourse against award . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
8. Recognition and enforcement of awards . . . . . . . . . . . . . . . . . . . . . 36

Part Three

“Recommendation regarding the interpretation of article II, paragraph 2,

and article VII, paragraph 1, of the Convention on the Recognition and
Enforcement of Foreign Arbitral Awards, done in New York, 10 June
1958”, adopted by the United Nations Commission on International
Trade Law on 7 July 2006 at its thirty-ninth session . . . . . . . . . . . . . . . . . . 39

v
 Resolutions adopted by the General Assembly

40/72. Model Law on International Commercial Arbitration

of the United Nations Commission on International Trade Law

The General Assembly,

Recognizing the value of arbitration as a method of settling disputes arising in

international commercial relations,

Convinced that the establishment of a model law on arbitration that is accept-

able to States with different legal, social and economic systems contributes to the
development of harmonious international economic relations,

Noting that the Model Law on International Commercial Arbitration1 was

adopted by the United Nations Commission on International Trade Law at its
eighteenth session, after due deliberation and extensive consultation with arbitral
institutions and individual experts on international commercial arbitration,

Convinced that the Model Law, together with the Convention on the Recogni-
tion and Enforcement of Foreign Arbitral Awards2 and the Arbitration Rules of the
United Nations Commission on International Trade Law3 recommended by the
General Assembly in its resolution 31/98 of 15 December 1976, significantly
contributes to the establishment of a unified legal framework for the fair and efficient
settlement of disputes arising in international commercial relations,

1. Requests the Secretary-General to transmit the text of the Model Law on

International Commercial Arbitration of the United Nations Commission on Inter-
national Trade Law, together with the travaux préparatoires from the eighteenth
session of the Commission, to Governments and to arbitral institutions and other
interested bodies, such as chambers of commerce;

2. Recommends that all States give due consideration to the Model Law on
International Commercial Arbitration, in view of the desirability of uniformity of
the law of arbitral procedures and the specific needs of international commercial
arbitration practice.
112th plenary meeting
11 December 1985

1
Official Records of the General Assembly, Fortieth Session, Supplement No. 17 (A/40/17), annex I.
2
United Nations, Treaty Series, vol. 330, No. 4739, p. 38.
3
United Nations publication, Sales No. E.77.V.6.

vii
 [on the report of the Sixth Committee (A/61/453)]

61/33. Revised articles of the Model Law on International Commercial

Arbitration of the United Nations Commission on International Trade Law,
and the recommendation regarding the interpretation of article II, paragraph 2,
and article VII, paragraph 1, of the Convention on the Recognition and
Enforcement of Foreign Arbitral Awards, done at New York, 10 June 1958

The General Assembly,

Recognizing the value of arbitration as a method of settling disputes arising in

the context of international commercial relations,

Recalling its resolution 40/72 of 11 December 1985 regarding the Model Law
on International Commercial Arbitration,1

Recognizing the need for provisions in the Model Law to conform to current
practices in international trade and modern means of contracting with regard to the
form of the arbitration agreement and the granting of interim measures,

Believing that revised articles of the Model Law on the form of the arbitration
agreement and interim measures reflecting those current practices will significantly
enhance the operation of the Model Law,

Noting that the preparation of the revised articles of the Model Law on the
form of the arbitration agreement and interim measures was the subject of due
deliberation and extensive consultations with Governments and interested circles
and would contribute significantly to the establishment of a harmonized legal frame-
work for a fair and efficient settlement of international commercial disputes,

Believing that, in connection with the modernization of articles of the Model

Law, the promotion of a uniform interpretation and application of the Convention
on the Recognition and Enforcement of Foreign Arbitral Awards, done at New York,
10 June 1958,2 is particularly timely,

1. Expresses its appreciation to the United Nations Commission on Interna-

tional Trade Law for formulating and adopting the revised articles of its Model Law
on International Commercial Arbitration on the form of the arbitration agreement
and interim measures, the text of which is contained in annex I to the report of the
United Nations Commission on International Trade Law on the work of its thirty-
ninth session,3 and recommends that all States give favourable consideration to the
enactment of the revised articles of the Model Law, or the revised Model Law
on International Commercial Arbitration of the United Nations Commission on

1
Official Records of the General Assembly, Fortieth Session, Supplement No. 17 (A/40/17),
annex I.
2
United Nations, Treaty Series, vol. 330, No. 4739.
3
Official Records of the General Assembly, Sixty-first Session, Supplement No. 17 (A/61/17).

viii
International Trade Law, when they enact or revise their laws, in view of the desir-
ability of uniformity of the law of arbitral procedures and the specific needs of
international commercial arbitration practice;

2. Also expresses its appreciation to the United Nations Commission on

International Trade Law for formulating and adopting the recommendation regarding
the interpretation of article II, paragraph 2, and article VII, paragraph 1, of the
Convention on the Recognition and Enforcement of Foreign Arbitral Awards, done
at New York, 10 June 1958,2 the text of which is contained in annex II to the report
of the United Nations Commission on International Trade Law on the work of its
thirty-ninth session;3

3. Requests the Secretary-General to make all efforts to ensure that the revised
articles of the Model Law and the recommendation become generally known and
available.

64th plenary meeting

4 December 2006

ix
 Part One

UNCITRAL Model Law on International

Commercial Arbitration
(United Nations documents A/40/17,
annex I and A/61/17, annex I)

(As adopted by the United Nations Commission on

International Trade Law on 21 June 1985,
and as amended by the United Nations Commission
on International Trade Law on 7 July 2006)

CHAPTER I. GENERAL PROVISIONS

Article 1. Scope of application1

(1) This Law applies to international commercial2 arbitration, subject to

any agreement in force between this State and any other State or States.

(2) The provisions of this Law, except articles 8, 9, 17 H, 17 I, 17 J, 35

and 36, apply only if the place of arbitration is in the territory of this
State.
(Article 1(2) has been amended by the Commission at its thirty-ninth session, in 2006)

(3) An arbitration is international if:

(a) the parties to an arbitration agreement have, at the time of the conclu-
sion of that agreement, their places of business in different States; or

1
Article headings are for reference purposes only and are not to be used for purposes of
interpretation.
2
The term “commercial” should be given a wide interpretation so as to cover matters arising from
all relationships of a commercial nature, whether contractual or not. Relationships of a commercial nature
include, but are not limited to, the following transactions: any trade transaction for the supply or exchange
of goods or services; distribution agreement; commercial representation or agency; factoring; leasing;
construction of works; consulting; engineering; licensing; investment; financing; banking; insurance;
exploitation agreement or concession; joint venture and other forms of industrial or business cooperation;
carriage of goods or passengers by air, sea, rail or road.

1
2 UNCITRAL Model Law on International Commercial Arbitration

(b) one of the following places is situated outside the State in which
the parties have their places of business:
(i) the place of arbitration if determined in, or pursuant to, the
arbitration agreement;
(ii) any place where a substantial part of the obligations of the
commercial relationship is to be performed or the place with
which the subject-matter of the dispute is most closely con-
nected; or
(c) the parties have expressly agreed that the subject matter of the
arbitration agreement relates to more than one country.

(4) For the purposes of paragraph (3) of this article:

(a) if a party has more than one place of business, the place of business
is that which has the closest relationship to the arbitration agreement;
(b) if a party does not have a place of business, reference is to be
made to his habitual residence.

(5) This Law shall not affect any other law of this State by virtue of which
certain disputes may not be submitted to arbitration or may be submitted to
arbitration only according to provisions other than those of this Law.

Article 2. Definitions and rules of interpretation

For the purposes of this Law:

(a) “arbitration” means any arbitration whether or not administered
by a permanent arbitral institution;

(b) “arbitral tribunal” means a sole arbitrator or a panel of arbitrators;

(c) “court” means a body or organ of the judicial system of a State;

(d) where a provision of this Law, except article 28, leaves the parties
free to determine a certain issue, such freedom includes the right of the
parties to authorize a third party, including an institution, to make that
determination;

(e) where a provision of this Law refers to the fact that the parties
have agreed or that they may agree or in any other way refers to an agree-
ment of the parties, such agreement includes any arbitration rules referred
to in that agreement;
Part One. UNCITRAL Model Law on International Commercial Arbitration 3

(f) where a provision of this Law, other than in articles 25(a) and
32(2) (a), refers to a claim, it also applies to a counter-claim, and where it
refers to a defence, it also applies to a defence to such counter-claim.

Article 2 A. International origin and general principles

(As adopted by the Commission at its thirty-ninth session, in 2006)

(1) In the interpretation of this Law, regard is to be had to its international

origin and to the need to promote uniformity in its application and the
observance of good faith.

(2) Questions concerning matters governed by this Law which are not
expressly settled in it are to be settled in conformity with the general
principles on which this Law is based.

Article 3. Receipt of written communications

(1) Unless otherwise agreed by the parties:

(a) any written communication is deemed to have been received if it
is delivered to the addressee personally or if it is delivered at his place of
business, habitual residence or mailing address; if none of these can be found
after making a reasonable inquiry, a written communication is deemed to
have been received if it is sent to the addressee’s last-known place of busi-
ness, habitual residence or mailing address by registered letter or any other
means which provides a record of the attempt to deliver it;
(b) the communication is deemed to have been received on the day
it is so delivered.

(2) The provisions of this article do not apply to communications in court

proceedings.

Article 4. Waiver of right to object

A party who knows that any provision of this Law from which the parties
may derogate or any requirement under the arbitration agreement has not
been complied with and yet proceeds with the arbitration without stating his
objection to such non-compliance without undue delay or, if a time-limit is
provided therefor, within such period of time, shall be deemed to have
waived his right to object.
4 UNCITRAL Model Law on International Commercial Arbitration

Article 5. Extent of court intervention

In matters governed by this Law, no court shall intervene except where so

provided in this Law.

Article 6. Court or other authority for certain functions

of arbitration assistance and supervision

The functions referred to in articles 11(3), 11(4), 13(3), 14, 16(3) and 34(2)
shall be performed by ... [Each State enacting this model law specifies the
court, courts or, where referred to therein, other authority competent to
perform these functions.]

CHAPTER II. ARBITRATION AGREEMENT

Option I

Article 7. Definition and form of arbitration agreement

(As adopted by the Commission at its thirty-ninth session, in 2006)

(1) “Arbitration agreement” is an agreement by the parties to submit to

arbitration all or certain disputes which have arisen or which may arise
between them in respect of a defined legal relationship, whether contractual
or not. An arbitration agreement may be in the form of an arbitration clause
in a contract or in the form of a separate agreement.

(2) The arbitration agreement shall be in writing.

(3) An arbitration agreement is in writing if its content is recorded in any

form, whether or not the arbitration agreement or contract has been con-
cluded orally, by conduct, or by other means.

(4) The requirement that an arbitration agreement be in writing is met by

an electronic communication if the information contained therein is acces-
sible so as to be useable for subsequent reference; “electronic communica-
tion” means any communication that the parties make by means of data
messages; “data message” means information generated, sent, received or
stored by electronic, magnetic, optical or similar means, including, but not
Part One. UNCITRAL Model Law on International Commercial Arbitration 5

limited to, electronic data interchange (EDI), electronic mail, telegram, telex
or telecopy.

(5) Furthermore, an arbitration agreement is in writing if it is contained in

an exchange of statements of claim and defence in which the existence of
an agreement is alleged by one party and not denied by the other.

(6) The reference in a contract to any document containing an arbitration

clause constitutes an arbitration agreement in writing, provided that the ref-
erence is such as to make that clause part of the contract.

Option II

Article 7. Definition of arbitration agreement

(As adopted by the Commission at its thirty-ninth session, in 2006)

“Arbitration agreement” is an agreement by the parties to submit to arbitra-

tion all or certain disputes which have arisen or which may arise
between them in respect of a defined legal relationship, whether contractual
or not.

Article 8. Arbitration agreement and substantive claim before court

(1) A court before which an action is brought in a matter which is the

subject of an arbitration agreement shall, if a party so requests not later than
when submitting his first statement on the substance of the dispute, refer
the parties to arbitration unless it finds that the agreement is null and void,
inoperative or incapable of being performed.

(2) Where an action referred to in paragraph (1) of this article has been
brought, arbitral proceedings may nevertheless be commenced or continued,
and an award may be made, while the issue is pending before the court.

Article 9. Arbitration agreement and interim measures by court

It is not incompatible with an arbitration agreement for a party to request,

before or during arbitral proceedings, from a court an interim measure of
protection and for a court to grant such measure.
6 UNCITRAL Model Law on International Commercial Arbitration

CHAPTER III. COMPOSITION OF ARBITRAL TRIBUNAL

Article 10. Number of arbitrators

(1) The parties are free to determine the number of arbitrators.

(2) Failing such determination, the number of arbitrators shall be three.

Article 11. Appointment of arbitrators

(1) No person shall be precluded by reason of his nationality from acting

as an arbitrator, unless otherwise agreed by the parties.

(2) The parties are free to agree on a procedure of appointing the arbitrator
or arbitrators, subject to the provisions of paragraphs (4) and (5) of this
article.

(3) Failing such agreement,

(a) in an arbitration with three arbitrators, each party shall appoint
one arbitrator, and the two arbitrators thus appointed shall appoint the third
arbitrator; if a party fails to appoint the arbitrator within thirty days of receipt
of a request to do so from the other party, or if the two arbitrators fail to
agree on the third arbitrator within thirty days of their appointment, the
appointment shall be made, upon request of a party, by the court or other
authority specified in article 6;
(b) in an arbitration with a sole arbitrator, if the parties are unable to
agree on the arbitrator, he shall be appointed, upon request of a party, by
the court or other authority specified in article 6.

(4) Where, under an appointment procedure agreed upon by the parties,

(a) a party fails to act as required under such procedure, or
(b) the parties, or two arbitrators, are unable to reach an agreement
expected of them under such procedure, or
(c) a third party, including an institution, fails to perform any function
entrusted to it under such procedure,
any party may request the court or other authority specified in article 6 to
take the necessary measure, unless the agreement on the appointment pro-
cedure provides other means for securing the appointment.

(5) A decision on a matter entrusted by paragraph (3) or (4) of this article

to the court or other authority specified in article 6 shall be subject to no
Part One. UNCITRAL Model Law on International Commercial Arbitration 7

appeal. The court or other authority, in appointing an arbitrator, shall have

due regard to any qualifications required of the arbitrator by the agreement
of the parties and to such considerations as are likely to secure the appoint-
ment of an independent and impartial arbitrator and, in the case of a sole
or third arbitrator, shall take into account as well the advisability of appoint-
ing an arbitrator of a nationality other than those of the parties.

Article 12. Grounds for challenge

(1) When a person is approached in connection with his possible appoint-

ment as an arbitrator, he shall disclose any circumstances likely to give rise
to justifiable doubts as to his impartiality or independence. An arbitrator,
from the time of his appointment and throughout the arbitral proceedings,
shall without delay disclose any such circumstances to the parties unless
they have already been informed of them by him.

(2) An arbitrator may be challenged only if circumstances exist that give rise
to justifiable doubts as to his impartiality or independence, or if he does not
possess qualifications agreed to by the parties. A party may challenge an arbitra-
tor appointed by him, or in whose appointment he has participated, only for
reasons of which he becomes aware after the appointment has been made.

Article 13. Challenge procedure

(1) The parties are free to agree on a procedure for challenging an arbitra-
tor, subject to the provisions of paragraph (3) of this article.

(2) Failing such agreement, a party who intends to challenge an arbitrator

shall, within fifteen days after becoming aware of the constitution of the
arbitral tribunal or after becoming aware of any circumstance referred to in
article 12(2), send a written statement of the reasons for the challenge to
the arbitral tribunal. Unless the challenged arbitrator withdraws from his
office or the other party agrees to the challenge, the arbitral tribunal shall
decide on the challenge.

(3) If a challenge under any procedure agreed upon by the parties or under
the procedure of paragraph (2) of this article is not successful, the challeng-
ing party may request, within thirty days after having received notice of the
decision rejecting the challenge, the court or other authority specified in
article 6 to decide on the challenge, which decision shall be subject to no
appeal; while such a request is pending, the arbitral tribunal, including the
challenged arbitrator, may continue the arbitral proceedings and make an award.
8 UNCITRAL Model Law on International Commercial Arbitration

Article 14. Failure or impossibility to act

(1) If an arbitrator becomes de jure or de facto unable to perform his func-

tions or for other reasons fails to act without undue delay, his mandate
terminates if he withdraws from his office or if the parties agree on the
termination. Otherwise, if a controversy remains concerning any of these
grounds, any party may request the court or other authority specified in
article 6 to decide on the termination of the mandate, which decision shall
be subject to no appeal.

(2) If, under this article or article 13(2), an arbitrator withdraws from his
office or a party agrees to the termination of the mandate of an arbitrator,
this does not imply acceptance of the validity of any ground referred to in
this article or article 12(2).

Article 15. Appointment of substitute arbitrator

Where the mandate of an arbitrator terminates under article 13 or 14 or

because of his withdrawal from office for any other reason or because of
the revocation of his mandate by agreement of the parties or in any other
case of termination of his mandate, a substitute arbitrator shall be appointed
according to the rules that were applicable to the appointment of the arbitra-
tor being replaced.

CHAPTER IV. JURISDICTION OF ARBITRAL TRIBUNAL

Article 16. Competence of arbitral tribunal to rule on its jurisdiction

(1) The arbitral tribunal may rule on its own jurisdiction, including any
objections with respect to the existence or validity of the arbitration agree-
ment. For that purpose, an arbitration clause which forms part of a contract
shall be treated as an agreement independent of the other terms of the con-
tract. A decision by the arbitral tribunal that the contract is null and void
shall not entail ipso jure the invalidity of the arbitration clause.

(2) A plea that the arbitral tribunal does not have jurisdiction shall be raised
not later than the submission of the statement of defence. A party is not
precluded from raising such a plea by the fact that he has appointed, or
participated in the appointment of, an arbitrator. A plea that the arbitral tri-
bunal is exceeding the scope of its authority shall be raised as soon as the
Part One. UNCITRAL Model Law on International Commercial Arbitration 9

matter alleged to be beyond the scope of its authority is raised during the
arbitral proceedings. The arbitral tribunal may, in either case, admit a later
plea if it considers the delay justified.

(3) The arbitral tribunal may rule on a plea referred to in paragraph (2) of
this article either as a preliminary question or in an award on the merits. If
the arbitral tribunal rules as a preliminary question that it has jurisdiction,
any party may request, within thirty days after having received notice of
that ruling, the court specified in article 6 to decide the matter, which deci-
sion shall be subject to no appeal; while such a request is pending, the
arbitral tribunal may continue the arbitral proceedings and make an award.

CHAPTER IV A. INTERIM MEASURES

AND PRELIMINARY ORDERS
(As adopted by the Commission at its thirty-ninth session, in 2006)

Section 1. Interim measures

Article 17. Power of arbitral tribunal to order interim measures

(1) Unless otherwise agreed by the parties, the arbitral tribunal may, at the
request of a party, grant interim measures.

(2) An interim measure is any temporary measure, whether in the form of

an award or in another form, by which, at any time prior to the issuance of
the award by which the dispute is finally decided, the arbitral tribunal orders
a party to:
(a) Maintain or restore the status quo pending determination of the
dispute;
(b) Take action that would prevent, or refrain from taking action that
is likely to cause, current or imminent harm or prejudice to the arbitral
process itself;
(c) Provide a means of preserving assets out of which a subsequent
award may be satisfied; or
(d) Preserve evidence that may be relevant and material to the resolu-
tion of the dispute.
10 UNCITRAL Model Law on International Commercial Arbitration

Article 17 A. Conditions for granting interim measures

(1) The party requesting an interim measure under article 17(2)(a), (b) and
(c) shall satisfy the arbitral tribunal that:
(a) Harm not adequately reparable by an award of damages is likely
to result if the measure is not ordered, and such harm substantially outweighs
the harm that is likely to result to the party against whom the measure is
directed if the measure is granted; and
(b) There is a reasonable possibility that the requesting party will
succeed on the merits of the claim. The determination on this possibility
shall not affect the discretion of the arbitral tribunal in making any subse-
quent determination.

(2) With regard to a request for an interim measure under article 17(2)(d),
the requirements in paragraphs (1)(a) and (b) of this article shall apply only
to the extent the arbitral tribunal considers appropriate.

Section 2. Preliminary orders

Article 17 B. Applications for preliminary orders and

conditions for granting preliminary orders

(1) Unless otherwise agreed by the parties, a party may, without notice to
any other party, make a request for an interim measure together with an
application for a preliminary order directing a party not to frustrate the
purpose of the interim measure requested.

(2) The arbitral tribunal may grant a preliminary order provided it considers
that prior disclosure of the request for the interim measure to the party
against whom it is directed risks frustrating the purpose of the measure.

(3) The conditions defined under article 17A apply to any preliminary
order, provided that the harm to be assessed under article 17A(1)(a), is the
harm likely to result from the order being granted or not.

Article 17 C. Specific regime for preliminary orders

(1) Immediately after the arbitral tribunal has made a determination in

respect of an application for a preliminary order, the arbitral tribunal shall give
notice to all parties of the request for the interim measure, the application for
Part One. UNCITRAL Model Law on International Commercial Arbitration 11

the preliminary order, the preliminary order, if any, and all other communi-
cations, including by indicating the content of any oral communication, be-
tween any party and the arbitral tribunal in relation thereto.

(2) At the same time, the arbitral tribunal shall give an opportunity to any
party against whom a preliminary order is directed to present its case at the
earliest practicable time.

(3) The arbitral tribunal shall decide promptly on any objection to the
preliminary order.

(4) A preliminary order shall expire after twenty days from the date on
which it was issued by the arbitral tribunal. However, the arbitral tribunal
may issue an interim measure adopting or modifying the preliminary order,
after the party against whom the preliminary order is directed has been given
notice and an opportunity to present its case.

(5) A preliminary order shall be binding on the parties but shall not be
subject to enforcement by a court. Such a preliminary order does not con-
stitute an award.

Section 3. Provisions applicable to interim measures

and preliminary orders

Article 17 D. Modification, suspension, termination

The arbitral tribunal may modify, suspend or terminate an interim

measure or a preliminary order it has granted, upon application of any party
or, in exceptional circumstances and upon prior notice to the parties, on the
arbitral tribunal’s own initiative.

Article 17 E. Provision of security

(1) The arbitral tribunal may require the party requesting an interim
measure to provide appropriate security in connection with the measure.

(2) The arbitral tribunal shall require the party applying for a preliminary
order to provide security in connection with the order unless the arbitral
tribunal considers it inappropriate or unnecessary to do so.
12 UNCITRAL Model Law on International Commercial Arbitration

Article 17 F. Disclosure

(1) The arbitral tribunal may require any party promptly to disclose any
material change in the circumstances on the basis of which the measure was
requested or granted.

(2) The party applying for a preliminary order shall disclose to the arbitral
tribunal all circumstances that are likely to be relevant to the arbitral tribu-
nal’s determination whether to grant or maintain the order, and such obliga-
tion shall continue until the party against whom the order has been requested
has had an opportunity to present its case. Thereafter, paragraph (1) of this
article shall apply.

Article 17 G. Costs and damages

The party requesting an interim measure or applying for a preliminary

order shall be liable for any costs and damages caused by the measure or
the order to any party if the arbitral tribunal later determines that, in the
circumstances, the measure or the order should not have been granted. The
arbitral tribunal may award such costs and damages at any point during the
proceedings.

Section 4. Recognition and enforcement of interim measures

Article 17 H. Recognition and enforcement

(1) An interim measure issued by an arbitral tribunal shall be recognized

as binding and, unless otherwise provided by the arbitral tribunal, enforced
upon application to the competent court, irrespective of the country in which
it was issued, subject to the provisions of article 17 I.

(2) The party who is seeking or has obtained recognition or enforcement

of an interim measure shall promptly inform the court of any termination,
suspension or modification of that interim measure.

(3) The court of the State where recognition or enforcement is sought may,
if it considers it proper, order the requesting party to provide appropriate
security if the arbitral tribunal has not already made a determination with
respect to security or where such a decision is necessary to protect the rights
of third parties.
Part One. UNCITRAL Model Law on International Commercial Arbitration 13

Article 17 I. Grounds for refusing recognition or enforcement3

(1) Recognition or enforcement of an interim measure may be refused

only:
(a) At the request of the party against whom it is invoked if the court
is satisfied that:
(i) Such refusal is warranted on the grounds set forth in arti-
cle 36(1)(a)(i), (ii), (iii) or (iv); or
(ii) The arbitral tribunal’s decision with respect to the provision
of security in connection with the interim measure issued
by the arbitral tribunal has not been complied with; or
(iii) The interim measure has been terminated or suspended by
the arbitral tribunal or, where so empowered, by the court
of the State in which the arbitration takes place or under
the law of which that interim measure was granted; or
(b) If the court finds that:
(i) The interim measure is incompatible with the powers con-
ferred upon the court unless the court decides to reformulate
the interim measure to the extent necessary to adapt it to its
own powers and procedures for the purposes of enforcing that
interim measure and without modifying its substance; or
(ii) Any of the grounds set forth in article 36(1)(b)(i) or (ii),
apply to the recognition and enforcement of the interim
measure.

(2) Any determination made by the court on any ground in paragraph (1)
of this article shall be effective only for the purposes of the application to
recognize and enforce the interim measure. The court where recognition or
enforcement is sought shall not, in making that determination, undertake a
review of the substance of the interim measure.

Section 5. Court-ordered interim measures

Article 17 J. Court-ordered interim measures

A court shall have the same power of issuing an interim measure in

relation to arbitration proceedings, irrespective of whether their place is in
3
The conditions set forth in article 17 I are intended to limit the number of circumstances in which
the court may refuse to enforce an interim measure. It would not be contrary to the level of harmoniza-
tion sought to be achieved by these model provisions if a State were to adopt fewer circumstances in
which enforcement may be refused.
14 UNCITRAL Model Law on International Commercial Arbitration

the territory of this State, as it has in relation to proceedings in courts. The

court shall exercise such power in accordance with its own procedures in
consideration of the specific features of international arbitration.

CHAPTER V. CONDUCT OF ARBITRAL PROCEEDINGS

Article 18. Equal treatment of parties

The parties shall be treated with equality and each party shall be given a
full opportunity of presenting his case.

Article 19. Determination of rules of procedure

(1) Subject to the provisions of this Law, the parties are free to agree on the
procedure to be followed by the arbitral tribunal in conducting the proceedings.

(2) Failing such agreement, the arbitral tribunal may, subject to the provi-
sions of this Law, conduct the arbitration in such manner as it considers
appropriate. The power conferred upon the arbitral tribunal includes the
power to determine the admissibility, relevance, materiality and weight of
any evidence.

Article 20. Place of arbitration

(1) The parties are free to agree on the place of arbitration. Failing such
agreement, the place of arbitration shall be determined by the arbitral tribunal
having regard to the circumstances of the case, including the convenience
of the parties.

(2) Notwithstanding the provisions of paragraph (1) of this article, the arbi-
tral tribunal may, unless otherwise agreed by the parties, meet at any place
it considers appropriate for consultation among its members, for hearing
witnesses, experts or the parties, or for inspection of goods, other property
or documents.

Article 21. Commencement of arbitral proceedings

Unless otherwise agreed by the parties, the arbitral proceedings in respect

of a particular dispute commence on the date on which a request for that
dispute to be referred to arbitration is received by the respondent.
Part One. UNCITRAL Model Law on International Commercial Arbitration 15

Article 22. Language

(1) The parties are free to agree on the language or languages to be used
in the arbitral proceedings. Failing such agreement, the arbitral tribunal shall
determine the language or languages to be used in the proceedings. This
agreement or determination, unless otherwise specified therein, shall apply
to any written statement by a party, any hearing and any award, decision or
other communication by the arbitral tribunal.

(2) The arbitral tribunal may order that any documentary evidence shall be
accompanied by a translation into the language or languages agreed upon
by the parties or determined by the arbitral tribunal.

Article 23. Statements of claim and defence

(1) Within the period of time agreed by the parties or determined by the
arbitral tribunal, the claimant shall state the facts supporting his claim, the
points at issue and the relief or remedy sought, and the respondent shall
state his defence in respect of these particulars, unless the parties have other-
wise agreed as to the required elements of such statements. The parties may
submit with their statements all documents they consider to be relevant
or may add a reference to the documents or other evidence they will
submit.

(2) Unless otherwise agreed by the parties, either party may amend or
supplement his claim or defence during the course of the arbitral proceed-
ings, unless the arbitral tribunal considers it inappropriate to allow such
amendment having regard to the delay in making it.

Article 24. Hearings and written proceedings

(1) Subject to any contrary agreement by the parties, the arbitral tribunal
shall decide whether to hold oral hearings for the presentation of evidence
or for oral argument, or whether the proceedings shall be conducted on the
basis of documents and other materials. However, unless the parties have
agreed that no hearings shall be held, the arbitral tribunal shall hold such
hearings at an appropriate stage of the proceedings, if so requested by a
party.

(2) The parties shall be given sufficient advance notice of any hearing and
of any meeting of the arbitral tribunal for the purposes of inspection of
goods, other property or documents.
16 UNCITRAL Model Law on International Commercial Arbitration

(3) All statements, documents or other information supplied to the arbitral

tribunal by one party shall be communicated to the other party. Also any
expert report or evidentiary document on which the arbitral tribunal may
rely in making its decision shall be communicated to the parties.

Article 25. Default of a party

Unless otherwise agreed by the parties, if, without showing sufficient

cause,
(a) the claimant fails to communicate his statement of claim in
accordance with article 23(1), the arbitral tribunal shall terminate the
proceedings;
(b) the respondent fails to communicate his statement of defence in
accordance with article 23(1), the arbitral tribunal shall continue the proceed-
ings without treating such failure in itself as an admission of the claimant’s
allegations;
(c) any party fails to appear at a hearing or to produce documentary
evidence, the arbitral tribunal may continue the proceedings and make the
award on the evidence before it.

Article 26. Expert appointed by arbitral tribunal

(1) Unless otherwise agreed by the parties, the arbitral tribunal

(a) may appoint one or more experts to report to it on specific issues
to be determined by the arbitral tribunal;
(b) may require a party to give the expert any relevant information or
to produce, or to provide access to, any relevant documents, goods or other
property for his inspection.

(2) Unless otherwise agreed by the parties, if a party so requests or if the

arbitral tribunal considers it necessary, the expert shall, after delivery of his
written or oral report, participate in a hearing where the parties have the
opportunity to put questions to him and to present expert witnesses in order
to testify on the points at issue.

Article 27. Court assistance in taking evidence

The arbitral tribunal or a party with the approval of the arbitral tribunal may
request from a competent court of this State assistance in taking evidence.
Part One. UNCITRAL Model Law on International Commercial Arbitration 17

The court may execute the request within its competence and according to
its rules on taking evidence.

CHAPTER VI. MAKING OF AWARD AND

TERMINATION OF PROCEEDINGS

Article 28. Rules applicable to substance of dispute

(1) The arbitral tribunal shall decide the dispute in accordance with such
rules of law as are chosen by the parties as applicable to the substance of
the dispute. Any designation of the law or legal system of a given State
shall be construed, unless otherwise expressed, as directly referring to the
substantive law of that State and not to its conflict of laws rules.

(2) Failing any designation by the parties, the arbitral tribunal shall apply the
law determined by the conflict of laws rules which it considers applicable.

(3) The arbitral tribunal shall decide ex aequo et bono or as amiable com-
positeur only if the parties have expressly authorized it to do so.

(4) In all cases, the arbitral tribunal shall decide in accordance with the
terms of the contract and shall take into account the usages of the trade
applicable to the transaction.

Article 29. Decision-making by panel of arbitrators

In arbitral proceedings with more than one arbitrator, any decision of the
arbitral tribunal shall be made, unless otherwise agreed by the parties, by a
majority of all its members. However, questions of procedure may be decided
by a presiding arbitrator, if so authorized by the parties or all members of
the arbitral tribunal.

Article 30. Settlement

(1) If, during arbitral proceedings, the parties settle the dispute, the arbitral
tribunal shall terminate the proceedings and, if requested by the parties and
not objected to by the arbitral tribunal, record the settlement in the form of
an arbitral award on agreed terms.

(2) An award on agreed terms shall be made in accordance with the provi-
sions of article 31 and shall state that it is an award. Such an award has the
same status and effect as any other award on the merits of the case.
18 UNCITRAL Model Law on International Commercial Arbitration

Article 31. Form and contents of award

(1) The award shall be made in writing and shall be signed by the arbitra-
tor or arbitrators. In arbitral proceedings with more than one arbitrator, the
signatures of the majority of all members of the arbitral tribunal shall
suffice, provided that the reason for any omitted signature is stated.

(2) The award shall state the reasons upon which it is based, unless the
parties have agreed that no reasons are to be given or the award is an award
on agreed terms under article 30.

(3) The award shall state its date and the place of arbitration as determined
in accordance with article 20(1). The award shall be deemed to have been
made at that place.

(4) After the award is made, a copy signed by the arbitrators in accordance
with paragraph (1) of this article shall be delivered to each party.

Article 32. Termination of proceedings

(1) The arbitral proceedings are terminated by the final award or by an order
of the arbitral tribunal in accordance with paragraph (2) of this article.

(2) The arbitral tribunal shall issue an order for the termination of the arbi-
tral proceedings when:
(a) the claimant withdraws his claim, unless the respondent objects
thereto and the arbitral tribunal recognizes a legitimate interest on his part
in obtaining a final settlement of the dispute;
(b) the parties agree on the termination of the proceedings;
(c) the arbitral tribunal finds that the continuation of the proceedings
has for any other reason become unnecessary or impossible.

(3) The mandate of the arbitral tribunal terminates with the termination of
the arbitral proceedings, subject to the provisions of articles 33 and 34(4).

Article 33. Correction and interpretation of award; additional award

(1) Within thirty days of receipt of the award, unless another period of
time has been agreed upon by the parties:
(a) a party, with notice to the other party, may request the arbitral
Part One. UNCITRAL Model Law on International Commercial Arbitration 19

tribunal to correct in the award any errors in computation, any clerical or

typographical errors or any errors of similar nature;
(b) if so agreed by the parties, a party, with notice to the other party,
may request the arbitral tribunal to give an interpretation of a specific point
or part of the award.
If the arbitral tribunal considers the request to be justified, it shall make the
correction or give the interpretation within thirty days of receipt of the
request. The interpretation shall form part of the award.

(2) The arbitral tribunal may correct any error of the type referred to in
paragraph (1)(a) of this article on its own initiative within thirty days of the
date of the award.

(3) Unless otherwise agreed by the parties, a party, with notice to the other
party, may request, within thirty days of receipt of the award, the arbitral
tribunal to make an additional award as to claims presented in the arbitral
proceedings but omitted from the award. If the arbitral tribunal considers
the request to be justified, it shall make the additional award within sixty
days.

(4) The arbitral tribunal may extend, if necessary, the period of time within
which it shall make a correction, interpretation or an additional award under
paragraph (1) or (3) of this article.

(5) The provisions of article 31 shall apply to a correction or interpretation

of the award or to an additional award.

CHAPTER VII. RECOURSE AGAINST AWARD

Article 34. Application for setting aside as exclusive

recourse against arbitral award

(1) Recourse to a court against an arbitral award may be made only by an

application for setting aside in accordance with paragraphs (2) and (3) of
this article.

(2) An arbitral award may be set aside by the court specified in article 6
only if:
(a) the party making the application furnishes proof that:
(i) a party to the arbitration agreement referred to in article 7
was under some incapacity; or the said agreement is not
20 UNCITRAL Model Law on International Commercial Arbitration

valid under the law to which the parties have subjected it or,
failing any indication thereon, under the law of this State; or
(ii) the party making the application was not given proper notice
of the appointment of an arbitrator or of the arbitral proceed-
ings or was otherwise unable to present his case; or
(iii) the award deals with a dispute not contemplated by or not fall-
ing within the terms of the submission to arbitration, or contains
decisions on matters beyond the scope of the submission to
arbitration, provided that, if the decisions on matters submitted
to arbitration can be separated from those not so submitted,
only that part of the award which contains decisions on matters
not submitted to arbitration may be set aside; or
(iv) the composition of the arbitral tribunal or the arbitral proce-
dure was not in accordance with the agreement of the parties,
unless such agreement was in conflict with a provision of this
Law from which the parties cannot derogate, or, failing such
agreement, was not in accordance with this Law; or
(b) the court finds that:
(i) the subject-matter of the dispute is not capable of settlement
by arbitration under the law of this State; or
(ii) the award is in conflict with the public policy of this State.

(3) An application for setting aside may not be made after three months
have elapsed from the date on which the party making that application had
received the award or, if a request had been made under article 33, from
the date on which that request had been disposed of by the arbitral
tribunal.

(4) The court, when asked to set aside an award, may, where appropriate
and so requested by a party, suspend the setting aside proceedings for a
period of time determined by it in order to give the arbitral tribunal an
opportunity to resume the arbitral proceedings or to take such other action
as in the arbitral tribunal’s opinion will eliminate the grounds for setting
aside.

CHAPTER VIII. RECOGNITION AND ENFORCEMENT OF AWARDS

Article 35. Recognition and enforcement

(1) An arbitral award, irrespective of the country in which it was made,

shall be recognized as binding and, upon application in writing to the
Part One. UNCITRAL Model Law on International Commercial Arbitration 21

competent court, shall be enforced subject to the provisions of this article

and of article 36.

(2) The party relying on an award or applying for its enforcement shall
supply the original award or a copy thereof. If the award is not made in an
official language of this State, the court may request the party to supply a
translation thereof into such language.4

(Article 35(2) has been amended by the Commission at its thirty-ninth session, in 2006)

Article 36. Grounds for refusing recognition or enforcement

(1) Recognition or enforcement of an arbitral award, irrespective of the

country in which it was made, may be refused only:
(a) at the request of the party against whom it is invoked, if that party
furnishes to the competent court where recognition or enforcement is sought
proof that:
(i) a party to the arbitration agreement referred to in article 7
was under some incapacity; or the said agreement is not
valid under the law to which the parties have subjected
it or, failing any indication thereon, under the law of the
country where the award was made; or
(ii) the party against whom the award is invoked was not given
proper notice of the appointment of an arbitrator or of the
arbitral proceedings or was otherwise unable to present his
case; or
(iii) the award deals with a dispute not contemplated by or not
falling within the terms of the submission to arbitration, or
it contains decisions on matters beyond the scope of the
submission to arbitration, provided that, if the decisions on
matters submitted to arbitration can be separated from those
not so submitted, that part of the award which contains deci-
sions on matters submitted to arbitration may be recognized
and enforced; or
(iv) the composition of the arbitral tribunal or the arbitral proce-
dure was not in accordance with the agreement of the parties
or, failing such agreement, was not in accordance with the
law of the country where the arbitration took place; or

4
The conditions set forth in this paragraph are intended to set maximum standards. It would, thus,
not be contrary to the harmonization to be achieved by the model law if a State retained even less
onerous conditions.
22 UNCITRAL Model Law on International Commercial Arbitration

(v) the award has not yet become binding on the parties or has
been set aside or suspended by a court of the country in
which, or under the law of which, that award was made; or
(b) if the court finds that:
(i) the subject-matter of the dispute is not capable of settlement
by arbitration under the law of this State; or
(ii) the recognition or enforcement of the award would be
contrary to the public policy of this State.

(2) If an application for setting aside or suspension of an award has been

made to a court referred to in paragraph (1)(a)(v) of this article, the court
where recognition or enforcement is sought may, if it considers it proper,
adjourn its decision and may also, on the application of the party claiming
recognition or enforcement of the award, order the other party to provide
appropriate security.
 Part Two

Explanatory Note by the UNCITRAL secretariat

on the 1985 Model Law on International Commercial
Arbitration as amended in 20061
1. The UNCITRAL Model Law on International Commercial Arbitration (“the
Model Law”) was adopted by the United Nations Commission on International
Trade Law (UNCITRAL) on 21 June 1985, at the end of the eighteenth session of
the Commission. The General Assembly, in its resolution 40/72 of 11 December
1985, recommended “that all States give due consideration to the Model Law on
International Commercial Arbitration, in view of the desirability of uniformity of
the law of arbitral procedures and the specific needs of international commercial
arbitration practice”. The Model Law was amended by UNCITRAL on 7 July 2006,
at the thirty-ninth session of the Commission (see below, paragraphs 4, 19, 20, 27,
29 and 53). The General Assembly, in its resolution 61/33 of 4 December 2006,
recommended “that all States give favourable consideration to the enactment of the
revised articles of the UNCITRAL Model Law on International Commercial Arbitra-
tion, or the revised UNCITRAL Model Law on International Commercial Arbitra-
tion, when they enact or revise their laws (…)”.

2. The Model Law constitutes a sound basis for the desired harmonization and
improvement of national laws. It covers all stages of the arbitral process from the
arbitration agreement to the recognition and enforcement of the arbitral award and
reflects a worldwide consensus on the principles and important issues of interna-
tional arbitration practice. It is acceptable to States of all regions and the different
legal or economic systems of the world. Since its adoption by UNCITRAL, the
Model Law has come to represent the accepted international legislative standard for
a modern arbitration law and a significant number of jurisdictions have enacted
arbitration legislation based on the Model Law.

3. The form of a model law was chosen as the vehicle for harmonization and
modernization in view of the flexibility it gives to States in preparing new arbitra-
tion laws. Notwithstanding that flexibility, and in order to increase the likelihood
of achieving a satisfactory degree of harmonization, States are encouraged to make

1
This note was prepared by the secretariat of the United Nations Commission on International
Trade Law (UNCITRAL) for informational purposes only; it is not an official commentary on the Model
Law. A commentary prepared by the Secretariat on an early draft of the Model Law appears in document
A/CN.9/264 (reproduced in UNCITRAL Yearbook, vol. XVI — 1985, United Nations publication, Sales
No. E.87.V.4).

23
24 UNCITRAL Model Law on International Commercial Arbitration

as few changes as possible when incorporating the Model Law into their legal sys-
tems. Efforts to minimize variation from the text adopted by UNCITRAL are also
expected to increase the visibility of harmonization, thus enhancing the confidence
of foreign parties, as the primary users of international arbitration, in the reliability
of arbitration law in the enacting State.

4. The revision of the Model Law adopted in 2006 includes article 2 A, which is
designed to facilitate interpretation by reference to internationally accepted princi-
ples and is aimed at promoting a uniform understanding of the Model Law. Other
substantive amendments to the Model Law relate to the form of the arbitration
agreement and to interim measures. The original 1985 version of the provision on
the form of the arbitration agreement (article 7) was modelled on the language used
in article II (2) of the Convention on the Recognition and Enforcement of Foreign
Arbitral Awards (New York, 1958) (“the New York Convention”). The revision of
article 7 is intended to address evolving practice in international trade and techno-
logical developments. The extensive revision of article 17 on interim measures was
considered necessary in light of the fact that such measures are increasingly relied
upon in the practice of international commercial arbitration. The revision also
includes an enforcement regime for such measures in recognition of the fact that
the effectiveness of arbitration frequently depends upon the possibility of enforcing
interim measures. The new provisions are contained in a new chapter of the Model
Law on interim measures and preliminary orders (chapter IV A).

A. Background to the Model Law

5. The Model Law was developed to address considerable disparities in national

laws on arbitration. The need for improvement and harmonization was based on
findings that national laws were often particularly inappropriate for international
cases.

1. Inadequacy of domestic laws

6. Recurrent inadequacies to be found in outdated national laws include provisions

that equate the arbitral process with court litigation and fragmentary provisions that
fail to address all relevant substantive law issues. Even most of those laws that
appear to be up-to-date and comprehensive were drafted with domestic arbitration
primarily, if not exclusively, in mind. While this approach is understandable in view
of the fact that even today the bulk of cases governed by arbitration law would be
of a purely domestic nature, the unfortunate consequence is that traditional local
concepts are imposed on international cases and the needs of modern practice are
often not met.

7. The expectations of the parties as expressed in a chosen set of arbitration rules

or a “one-off” arbitration agreement may be frustrated, especially by mandatory
provisions of applicable law. Unexpected and undesired restrictions found in national
Part Two. Explanatory Note by the UNCITRAL secretariat 25

laws may prevent the parties, for example, from submitting future disputes to arbi-
tration, from selecting the arbitrator freely, or from having the arbitral proceedings
conducted according to agreed rules of procedure and with no more court involve-
ment than appropriate. Frustration may also ensue from non-mandatory provisions
that may impose undesired requirements on unwary parties who may not think about
the need to provide otherwise when drafting the arbitration agreement. Even the
absence of any legislative provision may cause difficulties simply by leaving un-
answered some of the many procedural issues relevant in arbitration and not always
settled in the arbitration agreement. The Model Law is intended to reduce the risk
of such possible frustration, difficulties or surprise.

2. Disparity between national laws

8. Problems stemming from inadequate arbitration laws or from the absence of

specific legislation governing arbitration are aggravated by the fact that national
laws differ widely. Such differences are a frequent source of concern in international
arbitration, where at least one of the parties is, and often both parties are, confronted
with foreign and unfamiliar provisions and procedures. Obtaining a full and precise
account of the law applicable to the arbitration is, in such circumstances often
expensive, impractical or impossible.

9. Uncertainty about the local law with the inherent risk of frustration may
adversely affect the functioning of the arbitral process and also impact on the selec-
tion of the place of arbitration. Due to such uncertainty, a party may hesitate or
refuse to agree to a place, which for practical reasons would otherwise be appropri-
ate. The range of places of arbitration acceptable to parties is thus widened and the
smooth functioning of the arbitral proceedings is enhanced where States adopt the
Model Law, which is easily recognizable, meets the specific needs of international
commercial arbitration and provides an international standard based on solutions
acceptable to parties from different legal systems.

B. Salient features of the Model Law

1. Special procedural regime for international commercial arbitration

10. The principles and solutions adopted in the Model Law aim at reducing or
eliminating the above-mentioned concerns and difficulties. As a response to the
inadequacies and disparities of national laws, the Model Law presents a special legal
regime tailored to international commercial arbitration, without affecting any rele-
vant treaty in force in the State adopting the Model Law. While the Model Law
was designed with international commercial arbitration in mind, it offers a set of
basic rules that are not, in and of themselves, unsuitable to any other type of arbi-
tration. States may thus consider extending their enactment of the Model Law to
cover also domestic disputes, as a number of enacting States already have.
26 UNCITRAL Model Law on International Commercial Arbitration

(a) Substantive and territorial scope of application

11. Article 1 defines the scope of application of the Model Law by reference to
the notion of “international commercial arbitration”. The Model Law defines an
arbitration as international if “the parties to an arbitration agreement have, at the
time of the conclusion of that agreement, their places of business in different States”
(article 1 (3)). The vast majority of situations commonly regarded as international
will meet this criterion. In addition, article 1 (3) broadens the notion of internation-
ality so that the Model Law also covers cases where the place of arbitration, the
place of contract performance, or the place of the subject-matter of the dispute is
situated outside the State where the parties have their place of business, or cases
where the parties have expressly agreed that the subject-matter of the arbitration
agreement relates to more than one country. Article 1 thus recognizes extensively
the freedom of the parties to submit a dispute to the legal regime established pursuant
to the Model Law.

12. In respect of the term “commercial”, the Model Law provides no strict defini-
tion. The footnote to article 1 (1) calls for “a wide interpretation” and offers an
illustrative and open-ended list of relationships that might be described as com-
mercial in nature, “whether contractual or not”. The purpose of the footnote is to
circumvent any technical difficulty that may arise, for example, in determining which
transactions should be governed by a specific body of “commercial law” that may
exist in some legal systems.

13. Another aspect of applicability is the territorial scope of application. The prin-
ciple embodied in article 1 (2) is that the Model Law as enacted in a given State
applies only if the place of arbitration is in the territory of that State. However,
article 1 (2) also contains important exceptions to that principle, to the effect that
certain articles apply, irrespective of whether the place of arbitration is in the enact-
ing State or elsewhere (or, as the case may be, even before the place of arbitration
is determined). These articles are the following: articles 8 (1) and 9, which deal
with the recognition of arbitration agreements, including their compatibility with
interim measures ordered by a court, article 17 J on court-ordered interim measures,
articles 17 H and 17 I on the recognition and enforcement of interim measures
ordered by an arbitral tribunal, and articles 35 and 36 on the recognition and
enforcement of arbitral awards.

14. The territorial criterion governing most of the provisions of the Model Law
was adopted for the sake of certainty and in view of the following facts. In most
legal systems, the place of arbitration is the exclusive criterion for determining the
applicability of national law and, where the national law allows parties to choose
the procedural law of a State other than that where the arbitration takes place,
experience shows that parties rarely make use of that possibility. Incidentally, enact-
ment of the Model Law reduces any need for the parties to choose a “foreign” law,
since the Model Law grants the parties wide freedom in shaping the rules of the
arbitral proceedings. In addition to designating the law governing the arbitral
procedure, the territorial criterion is of considerable practical importance in respect
of articles 11, 13, 14, 16, 27 and 34, which entrust State courts at the place of
Part Two. Explanatory Note by the UNCITRAL secretariat 27

arbitration with functions of supervision and assistance to arbitration. It should be

noted that the territorial criterion legally triggered by the parties’ choice regarding
the place of arbitration does not limit the arbitral tribunal’s ability to meet at any
place it considers appropriate for the conduct of the proceedings, as provided by
article 20 (2).

(b) Delimitation of court assistance and supervision

15. Recent amendments to arbitration laws reveal a trend in favour of limiting and
clearly defining court involvement in international commercial arbitration. This is
justified in view of the fact that the parties to an arbitration agreement make a
conscious decision to exclude court jurisdiction and prefer the finality and expedi-
ency of the arbitral process.

16. In this spirit, the Model Law envisages court involvement in the following
instances. A first group comprises issues of appointment, challenge and termination
of the mandate of an arbitrator (articles 11, 13 and 14), jurisdiction of the arbitral
tribunal (article 16) and setting aside of the arbitral award (article 34). These
instances are listed in article 6 as functions that should be entrusted, for the sake
of centralization, specialization and efficiency, to a specially designated court or,
with respect to articles 11, 13 and 14, possibly to another authority (for example,
an arbitral institution or a chamber of commerce). A second group comprises issues
of court assistance in taking evidence (article 27), recognition of the arbitration
agreement, including its compatibility with court-ordered interim measures (arti-
cles 8 and 9), court-ordered interim measures (article 17 J), and recognition and
enforcement of interim measures (articles 17 H and 17 I) and of arbitral awards
(articles 35 and 36).

17. Beyond the instances in these two groups, “no court shall intervene, in matters
governed by this Law”. Article 5 thus guarantees that all instances of possible court
intervention are found in the piece of legislation enacting the Model Law, except
for matters not regulated by it (for example, consolidation of arbitral proceedings,
contractual relationship between arbitrators and parties or arbitral institutions, or
fixing of costs and fees, including deposits). Protecting the arbitral process from
unpredictable or disruptive court interference is essential to parties who choose
arbitration (in particular foreign parties).

2. Arbitration agreement

18. Chapter II of the Model Law deals with the arbitration agreement, including
its recognition by courts.

(a) Definition and form of arbitration agreement

19. The original 1985 version of the provision on the definition and form of
arbitration agreement (article 7) closely followed article II (2) of the New York
28 UNCITRAL Model Law on International Commercial Arbitration

Convention, which requires that an arbitration agreement be in writing. If the parties

have agreed to arbitrate, but they entered into the arbitration agreement in a manner
that does not meet the form requirement, any party may have grounds to object to
the jurisdiction of the arbitral tribunal. It was pointed out by practitioners that, in
a number of situations, the drafting of a written document was impossible or
impractical. In such cases, where the willingness of the parties to arbitrate was not
in question, the validity of the arbitration agreement should be recognized. For that
reason, article 7 was amended in 2006 to better conform to international contract
practices. In amending article 7, the Commission adopted two options, which reflect
two different approaches on the question of definition and form of arbitration agree-
ment. The first approach follows the detailed structure of the original 1985 text. It
confirms the validity and effect of a commitment by the parties to submit to arbitra-
tion an existing dispute (“compromis”) or a future dispute (“clause compromis-
soire”). It follows the New York Convention in requiring the written form of the
arbitration agreement but recognizes a record of the “contents” of the agreement
“in any form” as equivalent to traditional “writing”. The agreement to arbitrate may
be entered into in any form (e.g. including orally) as long as the content of the
agreement is recorded. This new rule is significant in that it no longer requires
signatures of the parties or an exchange of messages between the parties. It mod-
ernizes the language referring to the use of electronic commerce by adopting word-
ing inspired from the 1996 UNCITRAL Model Law on Electronic Commerce and
the 2005 United Nations Convention on the Use of Electronic Communications in
International Contracts. It covers the situation of “an exchange of statements of
claim and defence in which the existence of an agreement is alleged by one party
and not denied by another”. It also states that “the reference in a contract to any
document” (for example, general conditions) “containing an arbitration clause con-
stitutes an arbitration agreement in writing provided that the reference is such as
to make that clause part of the contract”. It thus clarifies that applicable contract
law remains available to determine the level of consent necessary for a party to
become bound by an arbitration agreement allegedly made “by reference”. The
second approach defines the arbitration agreement in a manner that omits any form
requirement. No preference was expressed by the Commission in favour of either
option I or II, both of which are offered for enacting States to consider, depending
on their particular needs, and by reference to the legal context in which the Model
Law is enacted, including the general contract law of the enacting State. Both op-
tions are intended to preserve the enforceability of arbitration agreements under the
New York Convention.

20. In that respect, the Commission also adopted, at its thirty-ninth session in
2006, a “Recommendation regarding the interpretation of article II, paragraph 2,
and article VII, paragraph 1, of the Convention on the Recognition and Enforcement
of Foreign Arbitral Awards, done in New York, 10 June 1958” (A/61/17, Annex 2).2
The General Assembly, in its resolution 61/33 of 4 December 2006 noted that “in
connection with the modernization of articles of the Model Law, the promotion of
a uniform interpretation and application of the Convention on the Recognition and

2
Reproduced in Part Three hereafter.
Part Two. Explanatory Note by the UNCITRAL secretariat 29

Enforcement of Foreign Arbitral Awards, done in New York, 10 June 1958, is par-
ticularly timely”. The Recommendation was drafted in recognition of the widening
use of electronic commerce and enactments of domestic legislation as well as case
law, which are more favourable than the New York Convention in respect of the
form requirement governing arbitration agreements, arbitration proceedings, and the
enforcement of arbitral awards. The Recommendation encourages States to apply
article II (2) of the New York Convention “recognizing that the circumstances
described therein are not exhaustive”. In addition, the Recommendation encourages
States to adopt the revised article 7 of the Model Law. Both options of the revised
article 7 establish a more favourable regime for the recognition and enforcement of
arbitral awards than that provided under the New York Convention. By virtue of
the “more favourable law provision” contained in article VII (1) of the New York
Convention, the Recommendation clarifies that “any interested party” should be
allowed “to avail itself of rights it may have, under the law or treaties of the country
where an arbitration agreement is sought to be relied upon, to seek recognition of
the validity of such an arbitration agreement”.

(b) Arbitration agreement and the courts

21. Articles 8 and 9 deal with two important aspects of the complex relationship
between the arbitration agreement and the resort to courts. Modelled on article II (3)
of the New York Convention, article 8 (1) of the Model Law places any court under
an obligation to refer the parties to arbitration if the court is seized with a claim
on the same subject-matter unless it finds that the arbitration agreement is null and
void, inoperative or incapable of being performed. The referral is dependent on a
request, which a party may make not later than when submitting its first statement
on the substance of the dispute. This provision, where adopted by a State enacting
the Model Law, is by its nature binding only on the courts of that State. However,
since article 8 is not limited in scope to agreements providing for arbitration to take
place in the enacting State, it promotes the universal recognition and effect of
international commercial arbitration agreements.

22. Article 9 expresses the principle that any interim measures of protection that
may be obtained from courts under their procedural law (for example, pre-award
attachments) are compatible with an arbitration agreement. That provision is ulti-
mately addressed to the courts of any State, insofar as it establishes the compatibility
between interim measures possibly issued by any court and an arbitration agreement,
irrespective of the place of arbitration. Wherever a request for interim measures
may be made to a court, it may not be relied upon, under the Model Law, as a
waiver or an objection against the existence or effect of the arbitration agreement.

3. Composition of arbitral tribunal

23. Chapter III contains a number of detailed provisions on appointment, challenge,

termination of mandate and replacement of an arbitrator. The chapter illustrates the
30 UNCITRAL Model Law on International Commercial Arbitration

general approach taken by the Model Law in eliminating difficulties that arise from
inappropriate or fragmentary laws or rules. First, the approach recognizes the free-
dom of the parties to determine, by reference to an existing set of arbitration rules
or by an ad hoc agreement, the procedure to be followed, subject to the fundamental
requirements of fairness and justice. Secondly, where the parties have not exercised
their freedom to lay down the rules of procedure or they have failed to cover a par-
ticular issue, the Model Law ensures, by providing a set of suppletive rules, that the
arbitration may commence and proceed effectively until the dispute is resolved.

24. Where under any procedure, agreed upon by the parties or based upon the
suppletive rules of the Model Law, difficulties arise in the process of appointment,
challenge or termination of the mandate of an arbitrator, articles 11, 13 and 14
provide for assistance by courts or other competent authorities designated by the
enacting State. In view of the urgency of matters relating to the composition of the
arbitral tribunal or its ability to function, and in order to reduce the risk and effect
of any dilatory tactics, short time-periods are set and decisions rendered by courts
or other authorities on such matters are not appealable.

4. Jurisdiction of arbitral tribunal

(a) Competence to rule on own jurisdiction

25. Article 16 (1) adopts the two important (not yet generally recognized) prin-
ciples of “Kompetenz-Kompetenz” and of separability or autonomy of the arbitration
clause. “Kompetenz-Kompetenz” means that the arbitral tribunal may independently
rule on the question of whether it has jurisdiction, including any objections with
respect to the existence or validity of the arbitration agreement, without having to
resort to a court. Separability means that an arbitration clause shall be treated as
an agreement independent of the other terms of the contract. As a consequence, a
decision by the arbitral tribunal that the contract is null and void shall not entail
ipso jure the invalidity of the arbitration clause. Detailed provisions in paragraph (2)
require that any objections relating to the arbitrators’ jurisdiction be made at the
earliest possible time.

26. The competence of the arbitral tribunal to rule on its own jurisdiction (i.e. on
the foundation, content and extent of its mandate and power) is, of course, subject
to court control. Where the arbitral tribunal rules as a preliminary question that it
has jurisdiction, article 16 (3) allows for immediate court control in order to avoid
waste of time and money. However, three procedural safeguards are added to reduce
the risk and effect of dilatory tactics: short time-period for resort to court (30 days),
court decision not appealable, and discretion of the arbitral tribunal to continue the
proceedings and make an award while the matter is pending before the court. In
those cases where the arbitral tribunal decides to combine its decision on jurisdic-
tion with an award on the merits, judicial review on the question of jurisdiction is
available in setting aside proceedings under article 34 or in enforcement proceedings
under article 36.
Part Two. Explanatory Note by the UNCITRAL secretariat 31

(b) Power to order interim measures and preliminary orders

27. Chapter IV A on interim measures and preliminary orders was adopted by the
Commission in 2006. It replaces article 17 of the original 1985 version of the Model
Law. Section 1 provides a generic definition of interim measures and sets out the
conditions for granting such measures. An important innovation of the revision lies
in the establishment (in section 4) of a regime for the recognition and enforcement
of interim measures, which was modelled, as appropriate, on the regime for the
recognition and enforcement of arbitral awards under articles 35 and 36 of the
Model Law.

28. Section 2 of chapter IV A deals with the application for, and conditions for
the granting of, preliminary orders. Preliminary orders provide a means for preserv-
ing the status quo until the arbitral tribunal issues an interim measure adopting or
modifying the preliminary order. Article 17 B (1) provides that “a party may, without
notice to any other party, make a request for an interim measure together with an
application for a preliminary order directing a party not to frustrate the purpose of
the interim measure requested”. Article 17 B (2) permits an arbitral tribunal to grant
a preliminary order if “it considers that prior disclosure of the request for the interim
measure to the party against whom it is directed risks frustrating the purpose of the
measure”. Article 17 C contains carefully drafted safeguards for the party against
whom the preliminary order is directed, such as prompt notification of the applica-
tion for the preliminary order and of the preliminary order itself (if any), and an
opportunity for that party to present its case “at the earliest practicable time”. In
any event, a preliminary order has a maximum duration of twenty days and, while
binding on the parties, is not subject to court enforcement and does not constitute
an award. The term “preliminary order” is used to emphasize its limited nature.

29. Section 3 sets out rules applicable to both preliminary orders and interim
measures.

30. Section 5 includes article 17 J on interim measures ordered by courts in

support of arbitration, and provides that “a court shall have the same power of
issuing an interim measure in relation to arbitration proceedings irrespective of
whether their place is in the territory of the enacting State, as it has in relation to
proceedings in courts”. That article has been added in 2006 to put it beyond any doubt
that the existence of an arbitration agreement does not infringe on the powers of the
competent court to issue interim measures and that the party to such an arbitration
agreement is free to approach the court with a request to order interim measures.

5. Conduct of arbitral proceedings

31. Chapter V provides the legal framework for a fair and effective conduct of the
arbitral proceedings. Article 18, which sets out fundamental requirements of proce-
dural justice, and article 19 on the rights and powers to determine the rules of
procedure, express principles that are central to the Model Law.
32 UNCITRAL Model Law on International Commercial Arbitration

(a) Fundamental procedural rights of a party

32. Article 18 embodies the principles that the parties shall be treated with equality
and given a full opportunity of presenting their case. A number of provisions illus-
trate those principles. For example, article 24 (1) provides that, unless the parties
have agreed that no oral hearings be held for the presentation of evidence or for
oral argument, the arbitral tribunal shall hold such hearings at an appropriate stage
of the proceedings, if so requested by a party. It should be noted that article 24 (1)
deals only with the general entitlement of a party to oral hearings (as an alternative
to proceedings conducted on the basis of documents and other materials) and not
with the procedural aspects, such as the length, number or timing of hearings.

33. Another illustration of those principles relates to evidence by an expert

appointed by the arbitral tribunal. Article 26 (2) requires the expert, after delivering
his or her written or oral report, to participate in a hearing where the parties may
put questions to the expert and present expert witnesses to testify on the points at
issue, if such a hearing is requested by a party or deemed necessary by the arbitral
tribunal. As another provision aimed at ensuring fairness, objectivity and impartial-
ity, article 24 (3) provides that all statements, documents and other information
supplied to the arbitral tribunal by one party shall be communicated to the other
party, and that any expert report or evidentiary document on which the arbitral tri-
bunal may rely in making its decision shall be communicated to the parties. In order
to enable the parties to be present at any hearing and at any meeting of the arbitral
tribunal for inspection purposes, they shall be given sufficient notice in advance
(article 24 (2)).

(b) Determination of rules of procedure

34. Article 19 guarantees the parties’ freedom to agree on the procedure to be

followed by the arbitral tribunal in conducting the proceedings, subject to a few
mandatory provisions on procedure, and empowers the arbitral tribunal, failing
agreement by the parties, to conduct the arbitration in such a manner as it considers
appropriate. The power conferred upon the arbitral tribunal includes the power to
determine the admissibility, relevance, materiality and weight of any evidence.

35. Autonomy of the parties in determining the rules of procedure is of special

importance in international cases since it allows the parties to select or tailor the
rules according to their specific wishes and needs, unimpeded by traditional and
possibly conflicting domestic concepts, thus obviating the earlier mentioned risk of
frustration or surprise (see above, paras. 7 and 9). The supplementary discretion of
the arbitral tribunal is equally important in that it allows the tribunal to tailor the
conduct of the proceedings to the specific features of the case without being hindered
by any restraint that may stem from traditional local law, including any domestic
rule on evidence. Moreover, it provides grounds for displaying initiative in solving
any procedural question not regulated in the arbitration agreement or the Model
Law.
Part Two. Explanatory Note by the UNCITRAL secretariat 33

36. In addition to the general provisions of article 19, other provisions in the
Model Law recognize party autonomy and, failing agreement, empower the arbitral
tribunal to decide on certain matters. Examples of particular practical importance
in international cases are article 20 on the place of arbitration and article 22 on the
language to be used in the proceedings.

(c) Default of a party

37. The arbitral proceedings may be continued in the absence of a party, provided
that due notice has been given. This applies, in particular, to the failure of the
respondent to communicate its statement of defence (article 25 (b)). The arbitral
tribunal may also continue the proceedings where a party fails to appear at a hear-
ing or to produce documentary evidence without showing sufficient cause for the
failure (article 25 (c)). However, if the claimant fails to submit its statement of
claim, the arbitral tribunal is obliged to terminate the proceedings (article 25 (a)).

38. Provisions that empower the arbitral tribunal to carry out its task even if one
of the parties does not participate are of considerable practical importance. As
experience shows, it is not uncommon for one of the parties to have little interest
in cooperating or expediting matters. Such provisions therefore provide international
commercial arbitration its necessary effectiveness, within the limits of fundamental
requirements of procedural justice.

6. Making of award and termination of proceedings

(a) Rules applicable to substance of dispute

39. Article 28 deals with the determination of the rules of law governing the
substance of the dispute. Under paragraph (1), the arbitral tribunal decides the dis-
pute in accordance with the rules of law chosen by the parties. This provision is
significant in two respects. It grants the parties the freedom to choose the applicable
substantive law, which is important where the national law does not clearly or fully
recognize that right. In addition, by referring to the choice of “rules of law” instead
of “law”, the Model Law broadens the range of options available to the parties as
regards the designation of the law applicable to the substance of the dispute. For
example, parties may agree on rules of law that have been elaborated by an inter-
national forum but have not yet been incorporated into any national legal system.
Parties could also choose directly an instrument such as the United Nations Conven-
tion on Contracts for the International Sale of Goods as the body of substantive
law governing the arbitration, without having to refer to the national law of any
State party to that Convention. The power of the arbitral tribunal, on the other hand,
follows more traditional lines. When the parties have not chosen the applicable law,
the arbitral tribunal shall apply the law (i.e., the national law) determined by the
conflict-of-laws rules that it considers applicable.
34 UNCITRAL Model Law on International Commercial Arbitration

40. Article 28 (3) recognizes that the parties may authorize the arbitral tribunal to
decide the dispute ex aequo et bono or as amiables compositeur. This type of arbi-
tration (where the arbitral tribunal may decide the dispute on the basis of principles
it believes to be just, without having to refer to any particular body of law) is cur-
rently not known or used in all legal systems. The Model Law does not intend to
regulate this area. It simply calls the attention of the parties on the need to provide
clarification in the arbitration agreement and specifically to empower the arbitral
tribunal. However, paragraph (4) makes it clear that in all cases where the dispute
relates to a contract (including arbitration ex aequo et bono) the arbitral tribunal
must decide in accordance with the terms of the contract and shall take into account
the usages of the trade applicable to the transaction.

(b) Making of award and other decisions

41. In its rules on the making of the award (articles 29-31), the Model Law focuses
on the situation where the arbitral tribunal consists of more than one arbitrator. In
such a situation, any award and other decision shall be made by a majority of the
arbitrators, except on questions of procedure, which may be left to a presiding
arbitrator. The majority principle applies also to the signing of the award, provided
that the reason for any omitted signature is stated.

42. Article 31 (3) provides that the award shall state the place of arbitration and
shall be deemed to have been made at that place. The effect of the deeming provi-
sion is to emphasize that the final making of the award constitutes a legal act, which
in practice does not necessarily coincide with one factual event. For the same reason
that the arbitral proceedings need not be carried out at the place designated as the
legal “place of arbitration”, the making of the award may be completed through
deliberations held at various places, by telephone or correspondence. In addition,
the award does not have to be signed by the arbitrators physically gathering at the
same place.

43. The arbitral award must be in writing and state its date. It must also state the
reasons on which it is based, unless the parties have agreed otherwise or the award
is “on agreed terms” (i.e., an award that records the terms of an amicable settlement
by the parties). It may be added that the Model Law neither requires nor prohibits
“dissenting opinions”.

7. Recourse against award

44. The disparity found in national laws as regards the types of recourse against
an arbitral award available to the parties presents a major difficulty in harmonizing
international arbitration legislation. Some outdated laws on arbitration, by establish-
ing parallel regimes for recourse against arbitral awards or against court decisions,
provide various types of recourse, various (and often long) time periods for exercis-
ing the recourse, and extensive lists of grounds on which recourse may be based.
Part Two. Explanatory Note by the UNCITRAL secretariat 35

That situation (of considerable concern to those involved in international commercial

arbitration) is greatly improved by the Model Law, which provides uniform grounds
upon which (and clear time periods within which) recourse against an arbitral award
may be made.

(a) Application for setting aside as exclusive recourse

45. The first measure of improvement is to allow only one type of recourse, to
the exclusion of any other recourse regulated in any procedural law of the State in
question. Article 34 (1) provides that the sole recourse against an arbitral award is
by application for setting aside, which must be made within three months of receipt
of the award (article 34 (3)). In regulating “recourse” (i.e., the means through which
a party may actively “attack” the award), article 34 does not preclude a party from
seeking court control by way of defence in enforcement proceedings (articles 35
and 36). Article 34 is limited to action before a court (i.e., an organ of the judicial
system of a State). However, a party is not precluded from appealing to an arbitral
tribunal of second instance if the parties have agreed on such a possibility (as is
common in certain commodity trades).

(b) Grounds for setting aside

46. As a further measure of improvement, the Model Law lists exhaustively the
grounds on which an award may be set aside. This list essentially mirrors that
contained in article 36 (1), which is taken from article V of the New York Conven-
tion. The grounds provided in article 34 (2) are set out in two categories. Grounds
which are to be proven by one party are as follows: lack of capacity of the parties
to conclude an arbitration agreement; lack of a valid arbitration agreement; lack of
notice of appointment of an arbitrator or of the arbitral proceedings or inability of
a party to present its case; the award deals with matters not covered by the submis-
sion to arbitration; the composition of the arbitral tribunal or the conduct of arbitral
proceedings are contrary to the effective agreement of the parties or, failing such
agreement, to the Model Law. Grounds that a court may consider of its own initia-
tive are as follows: non-arbitrability of the subject-matter of the dispute or violation
of public policy (which is to be understood as serious departures from fundamental
notions of procedural justice).

47. The approach under which the grounds for setting aside an award under the
Model Law parallel the grounds for refusing recognition and enforcement of the
award under article V of the New York Convention is reminiscent of the approach
taken in the European Convention on International Commercial Arbitration (Geneva,
1961). Under article IX of the latter Convention, the decision of a foreign court to
set aside an award for a reason other than the ones listed in article V of the New
York Convention does not constitute a ground for refusing enforcement. The Model
Law takes this philosophy one step further by directly limiting the reasons for
setting aside.
36 UNCITRAL Model Law on International Commercial Arbitration

48. Although the grounds for setting aside as set out in article 34 (2) are almost
identical to those for refusing recognition or enforcement as set out in article 36 (1),
a practical difference should be noted. An application for setting aside under arti-
cle 34 (2) may only be made to a court in the State where the award was rendered
whereas an application for enforcement might be made in a court in any State. For
that reason, the grounds relating to public policy and non-arbitrability may vary in
substance with the law applied by the court (in the State of setting aside or in the
State of enforcement).

8. Recognition and enforcement of awards

49. The eighth and last chapter of the Model Law deals with the recognition and
enforcement of awards. Its provisions reflect the significant policy decision that the
same rules should apply to arbitral awards whether made in the country of enforce-
ment or abroad, and that those rules should follow closely the New York
Convention.

(a) Towards uniform treatment of all awards irrespective of country of origin

50. By treating awards rendered in international commercial arbitration in a uni-

form manner irrespective of where they were made, the Model Law distinguishes
between “international” and “non-international” awards instead of relying on the
traditional distinction between “foreign” and “domestic” awards. This new line is
based on substantive grounds rather than territorial borders, which are inappropriate
in view of the limited importance of the place of arbitration in international cases.
The place of arbitration is often chosen for reasons of convenience of the parties
and the dispute may have little or no connection with the State where the arbitration
legally takes place. Consequently, the recognition and enforcement of “international”
awards, whether “foreign” or “domestic”, should be governed by the same
provisions.

51. By modelling the recognition and enforcement rules on the relevant provisions
of the New York Convention, the Model Law supplements, without conflicting with,
the regime of recognition and enforcement created by that successful Convention.

(b) Procedural conditions of recognition and enforcement

52. Under article 35 (1) any arbitral award, irrespective of the country in which
it was made, shall be recognized as binding and enforceable, subject to the provi-
sions of article 35 (2) and of article 36 (the latter of which sets forth the grounds
on which recognition or enforcement may be refused). Based on the above consid-
eration of the limited importance of the place of arbitration in international cases
and the desire of overcoming territorial restrictions, reciprocity is not included as
a condition for recognition and enforcement.
Part Two. Explanatory Note by the UNCITRAL secretariat 37

53. The Model Law does not lay down procedural details of recognition and
enforcement, which are left to national procedural laws and practices. The Model
Law merely sets certain conditions for obtaining enforcement under article 35 (2).
It was amended in 2006 to liberalize formal requirements and reflect the amendment
made to article 7 on the form of the arbitration agreement. Presentation of a copy
of the arbitration agreement is no longer required under article 35 (2).

(c) Grounds for refusing recognition or enforcement

54. Although the grounds on which recognition or enforcement may be refused

under the Model Law are identical to those listed in article V of the New York
Convention, the grounds listed in the Model Law are relevant not only to foreign
awards but to all awards rendered in the sphere of application of the piece of leg-
islation enacting the Model Law. Generally, it was deemed desirable to adopt, for
the sake of harmony, the same approach and wording as this important Convention.
However, the first ground on the list as contained in the New York Convention
(which provides that recognition and enforcement may be refused if “the parties to
the arbitration agreement were, under the law applicable to them, under some
incapacity”) was modified since it was viewed as containing an incomplete and
potentially misleading conflict-of-laws rule.

Further information on the Model Law may be obtained from:

UNCITRAL secretariat
Vienna International Centre
P.O. Box 500
1400 Vienna
Austria

Telephone: (+43-1) 26060-4060

Telefax: (+43-1) 26060-5813
Internet: uncitral.un.org
Email: uncitral@un.org
 Part Three
Recommendation regarding the interpretation of article II,
paragraph 2, and article VII, paragraph 1, of the
Convention on the Recognition and Enforcement of Foreign
Arbitral Awards, done in New York, 10 June 1958, adopted
by the United Nations Commission on International Trade
Law on 7 July 2006 at its thirty-ninth session

The United Nations Commission on International Trade Law,

Recalling General Assembly resolution 2205 (XXI) of 17 December 1966,

which established the United Nations Commission on International Trade Law with
the object of promoting the progressive harmonization and unification of the law
of international trade by, inter alia, promoting ways and means of ensuring a uniform
interpretation and application of international conventions and uniform laws in the
field of the law of international trade,

Conscious of the fact that the different legal, social and economic systems of
the world, together with different levels of development, are represented in the
Commission,

Recalling successive resolutions of the General Assembly reaffirming the man-

date of the Commission as the core legal body within the United Nations system
in the field of international trade law to coordinate legal activities in this field,

Convinced that the wide adoption of the Convention on the Recognition and
Enforcement of Foreign Arbitral Awards, done in New York on 10 June 1958,1 has
been a significant achievement in the promotion of the rule of law, particularly in
the field of international trade,

Recalling that the Conference of Plenipotentiaries which prepared and opened

the Convention for signature adopted a resolution, which states, inter alia, that the
Conference “considers that greater uniformity of national laws on arbitration would
further the effectiveness of arbitration in the settlement of private law disputes”,

Bearing in mind differing interpretations of the form requirements under the

Convention that result in part from differences of expression as between the five
equally authentic texts of the Convention,

1
United Nations, Treaty Series, vol. 330, No. 4739.

39
40 UNCITRAL Model Law on International Commercial Arbitration

Taking into account article VII, paragraph 1, of the Convention, a purpose of

which is to enable the enforcement of foreign arbitral awards to the greatest extent,
in particular by recognizing the right of any interested party to avail itself of law
or treaties of the country where the award is sought to be relied upon, including
where such law or treaties offer a regime more favourable than the Convention,

Considering the wide use of electronic commerce,

Taking into account international legal instruments, such as the 1985

UNCITRAL Model Law on International Commercial Arbitration,2 as subsequently
revised, particularly with respect to article 7,3 the UNCITRAL Model Law on
Electronic Commerce,4 the UNCITRAL Model Law on Electronic Signatures5 and
the United Nations Convention on the Use of Electronic Communications in Inter-
national Contracts,6

Taking into account also enactments of domestic legislation, as well as case

law, more favourable than the Convention in respect of form requirement governing
arbitration agreements, arbitration proceedings and the enforcement of arbitral
awards,

Considering that, in interpreting the Convention, regard is to be had to the

need to promote recognition and enforcement of arbitral awards,

1. Recommends that article II, paragraph 2, of the Convention on the

Recognition and Enforcement of Foreign Arbitral Awards, done in New York,
10 June 1958, be applied recognizing that the circumstances described therein are
not exhaustive;

2. Recommends also that article VII, paragraph 1, of the Convention on the

Recognition and Enforcement of Foreign Arbitral Awards, done in New York,
10 June 1958, should be applied to allow any interested party to avail itself of rights
it may have, under the law or treaties of the country where an arbitration agreement
is sought to be relied upon, to seek recognition of the validity of such an arbitration
agreement.

2
Official Records of the General Assembly, Fortieth Session, Supplement No. 17 (A/40/17), annex I,
and United Nations publication, Sales No. E.95.V.18.
3
Ibid., Sixty-first Session, Supplement No. 17 (A/61/17), annex I.
4
Ibid., Fifty-first Session, Supplement No. 17 (A/51/17), annex I, and United Nations publication,
Sales No. E.99.V.4, which contains also an additional article 5 bis, adopted in 1998, and the accompany-
ing Guide to Enactment.
5
Ibid., Fifty-sixth Session, Supplement No. 17 and corrigendum (A/56/17 and Corr.3), annex II,
and United Nations publication, Sales No. E.02.V.8, which contains also the accompanying Guide to
Enactment.
6
General Assembly resolution 60/21, annex.
 500

*1506716*
V.19-09955 (V.10-58515)

ISBN 978-92-1-1337730
 Convention on the Recognition and
Enforcement of Foreign Arbitral Awards
(New York, 1958)

UNITED NATIONS
   The United Nations Commission on International Trade Law (UNCITRAL)
is a subsidiary body of the General Assembly. It plays an important role in­
improving the legal framework for international trade by preparing ­ international
legislative texts for use by States in modernizing the law of international trade
and non-legislative texts for use by commercial parties in negotiating
transactions. UNCITRAL legislative texts address international sale of goods;
international commercial dispute resolution, including both arbitration and
conciliation; electronic commerce; insolvency, including cross-border insolvency;
international transport of goods; international payments; procurement and
infrastructure development; and security interests. Non-legislative texts include
rules for conduct of arbitration and conciliation proceedings; notes on organizing
and conducting arbitral proceedings; and legal guides on industrial construction
contracts and countertrade.

Further information may be obtained from:

UNCITRAL secretariat, Vienna International Centre,

P.O. Box 500, 1400 Vienna, Austria

Telephone: (+43-1) 26060-4060 Telefax: (+43-1) 26060-5813

Internet: www.uncitral.org E-mail: uncitral@uncitral.org
 UNITED NATIONS COMMISSION ON INTERNATIONAL TRADE LAW

Convention on the Recognition and

Enforcement of Foreign Arbitral Awards
(New York, 1958)

UNITED NATIONS
New York, 2015
 NOTE

Symbols of United Nations documents are composed of capital letters com-

bined with figures. Mention of such a symbol indicates a reference to a United
Nations document.

The publication reproduced here is a revised version in which part three of

the original publication of 2009 has been removed.

Material in this publication may be freely quoted or reprinted, but

acknowledgement is requested, together with a copy of the publication
containing the quotation or reprint.
 Contents

Page

Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Part one. United Nations Conference on International Commercial

Arbitration, New York, 20 May–10 June 1958 . . . . . . . . . . . . . . . . . 5
Excerpts from the Final Act of the United Nations Conference on .
International Commercial Arbitration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Convention on the Recognition and Enforcement of Foreign Arbitral .
Awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Part two. Recommendation regarding the interpretation of article II,

paragraph 2, and article VII, paragraph 1, of the Convention
on the Recognition and Enforcement of Foreign Arbitral
Awards. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
General Assembly resolution 61/33 of 4 December 2006 . . . . . . . . . . . . . . . 15
Recommendation regarding the interpretation of article II, paragraph 2, .
and article VII, paragraph 1, of the Convention on the Recognition and
Enforcement of Foreign Arbitral Awards, done in New York, 10 June .
1958, adopted by the United Nations Commission on International .
Trade Law on 7 July 2006 at its thirty-ninth session. . . . . . . . . . . . . . . . . . . 17

iii

07-87406_E_main_mm.indd 3 18/01/2008 18:17:01

 Introduction

Objectives

Recognizing the growing importance of international arbitration as a means

of settling international commercial disputes, the Convention on the Recog-
nition and Enforcement of Foreign Arbitral Awards (the Convention) seeks
to provide common legislative standards for the recognition of arbitration
agreements and court recognition and enforcement of foreign and non-.
domestic arbitral awards. The term “non-domestic” appears to embrace
awards which, although made in the state of enforcement, are treated as
“foreign” under its law because of some foreign element in the proceedings,
e.g. another State’s procedural laws are applied.

The Convention’s principal aim is that foreign and non-domestic arbitral

awards will not be discriminated against and it obliges Parties to ensure
such awards are recognized and generally capable of enforcement in their
jurisdiction in the same way as domestic awards. An ancillary aim of the
Convention is to require courts of Parties to give full effect to arbitration
agreements by requiring courts to deny the parties access to court in con-
travention of their agreement to refer the matter to an arbitral tribunal.

Key provisions

The Convention applies to awards made in any State other than the State in
which recognition and enforcement is sought. It also applies to awards “not
considered as domestic awards”. When consenting to be bound by the.
Convention, a State may declare that it will apply the Convention.
(a) in respect to awards made only in the territory of another Party and.
(b) only to legal relationships that are considered “commercial” under its
domestic law.

The Convention contains provisions on arbitration agreements. This aspect

was covered in recognition of the fact that an award could be refused.
enforcement on the grounds that the agreement upon which it was based
might not be recognized. Article II (1) provides that Parties shall recognize

07-87406_E_main_mm.indd 1 18/01/2008 18:17:01

 written arbitration agreements. In that respect, UNCITRAL adopted, at its
thirty-ninth session in 2006, a Recommendation that seeks to provide guidance
to Parties on the interpretation of the requirement in article II (2) that an arbitration
agreement be in writing and to encourage application of article VII (1) to allow any
interested party to avail itself of rights it may have, under the law or treaties of
the country where an arbitration agreement is sought to be relied upon, to seek
recognition of the validity of such an arbitration agreement.

The central obligation imposed upon Parties is to recognize all arbitral awards
within the scheme as binding and enforce them, if requested to do so, under
the lex fori. Each Party may determine the procedural mechanisms that may be
followed where the Convention does not prescribe any requirement.

The Convention defines five grounds upon which recognition and enforce-
ment may be refused at the request of the party against whom it is invoked.
The grounds include incapacity of the parties, invalidity of the arbitration
agreement, due process, scope of the arbitration agreement, jurisdiction of
the arbitral tribunal, setting aside or suspension of an award in the country
in which, or under the law of which, that award was made. The Convention
defines two additional grounds upon which the court may, on its own.
motion, refuse recognition and enforcement of an award. Those grounds
relate to arbitrability and public policy.

The Convention seeks to encourage recognition and enforcement of awards

in the greatest number of cases as possible. That purpose is achieved through
article VII (1) of the Convention by removing conditions for recognition
and enforcement in national laws that are more stringent than the conditions
in the Convention, while allowing the continued application of any national
provisions that give special or more favourable rights to a party seeking to
enforce an award. That article recognizes the right of any interested party
to avail itself of law or treaties of the country where the award is sought
to be relied upon, including where such law or treaties offer a regime more
favourable than the Convention.

Entry into force

The Convention entered into force on 7 June 1959 (article XII).

How to become a party

The Convention is closed for signature. It is subject to ratification, and is

open to accession by any Member State of the United Nations, any other

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 State which is a member of any specialized agency of the United Nations,
or is a Party to the Statute of the International Court of Justice (articles VIII
and IX).

Optional and/or mandatory declarations and notifications

When signing, ratifying or acceding to the Convention, or notifying a terri-

torial extension under article X, any State may on the basis of reciprocity
declare that it will apply the Convention to the recognition and enforcement
of awards made only in the territory of another Party to the Convention. It
may also declare that it will apply the Convention only to differences arising
out of legal relationships, whether contractual or not, which are considered
as commercial under the national law of the State making such declaration
(article I).

Denunciation/Withdrawal

Any Party may denounce this Convention by a written notification to the

Secretary-General of the United Nations. Denunciation shall take effect one
year after the date of the receipt of the notification by the Secretary-General
(article XIII).

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07-87406_E_main_mm.indd 4 18/01/2008 18:17:01
 Part one

United Nations Conference on International .

Commercial Arbitration, .
new york, 20 may–10 june 1958

Excerpts from the Final Act of the United Nations Conference on

International Commercial Arbitration

“1.  The Economic and Social Council of the United Nations, by resolution
604 (XXI) adopted on 3 May 1956, decided to convene a Conference of
Plenipotentiaries for the purpose of concluding a convention on the recogni-
tion and enforcement of foreign arbitral awards, and to consider other pos-
sible measures for increasing the effectiveness of arbitration in the settlement
of private law disputes.
[…]

“12.  The Economic and Social Council, by its resolution convening the
Conference, requested it to conclude a convention on the basis of the draft
convention prepared by the Committee on the Enforcement of International
Arbitral Awards, taking into account the comments and suggestions made by
Governments and non-governmental organizations, as well as the discussion at
the twenty-first session of the Council.

“13. On the basis of the deliberations, as recorded in the reports of the work-
ing parties and in the records of the plenary meetings, the Conference prepared
and opened for signature the Convention on the Recognition and Enforcement
of Foreign Arbitral Awards which is annexed to this Final Act.
[…]

“16.  In addition the Conference adopted, on the basis of proposals made

by the Committee on Other Measures as recorded in its report, the following
resolution:


The full text of the Final Act of the United Nations Conference on International Commercial
Arbitration (E/CONF.26/8Rev.1) is available at http://www.uncitral.org

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 “The Conference,

“Believing that, in addition to the convention on the recognition and

enforcement of foreign arbitral awards just concluded, which would contri-
bute to increasing the effectiveness of arbitration in the settlement of private
law disputes, additional measures should be taken in this field,

“Having considered the able survey and analysis of possible measures

for increasing the effectiveness of arbitration in the settlement of private law
disputes prepared by the Secretary-General (document E/CONF.26/6),

“Having given particular attention to the suggestions made therein for

possible ways in which interested governmental and other organizations may
make practical contributions to the more effective use of arbitration,

“Expresses the following views with respect to the principal matters

dealt with in the note of the Secretary-General:

“1. It considers that wider diffusion of information on arbitration laws,

practices and facilities contributes materially to progress in commercial.
arbitration; recognizes that work has already been done in this field by.
interested organizations, and expresses the wish that such organizations, so
far as they have not concluded them, continue their activities in this regard,
with particular attention to coordinating their respective efforts;

“2. It recognizes the desirability of encouraging where necessary the

establishment of new arbitration facilities and the improvement of existing
facilities, particularly in some geographic regions and branches of trade; and
believes that useful work may be done in this field by appropriate govern-
mental and other organizations, which may be active in arbitration matters,
due regard being given to the need to avoid duplication of effort and to
concentrate upon those measures of greatest practical benefit to the regions
and branches of trade concerned;

“3. It recognizes the value of technical assistance in the development

of effective arbitral legislation and institutions; and suggests that interested
Governments and other organizations endeavour to furnish such assistance,
within the means available, to those seeking it;

“4. It recognizes that regional study groups, seminars or working.

parties may in appropriate circumstances have productive results; believes
that consideration should be given to the advisability of the convening of


For example, the Economic Commission for Europe and the Inter-American Council of Jurists.


07-87406_E_main_mm.indd 6 18/01/2008 18:17:02

 such meetings by the appropriate regional commissions of the United Nations
and other bodies, but regards it as important that any such action be taken
with careful regard to avoiding duplication and assuring economy of effort
and of resources;

“5. It considers that greater uniformity of national laws on arbitration

would further the effectiveness of arbitration in the settlement of private law
disputes, notes the work already done in this field by various existing.
organizations, and suggests that by way of supplementing the efforts of
these bodies appropriate attention be given to defining suitable subject matter
for model arbitration statutes and other appropriate measures for encouraging
the development of such legislation;

“Expresses the wish that the United Nations, through its appropriate
organs, take such steps as it deems feasible to encourage further study of
measures for increasing the effectiveness of arbitration in the settlement of
private law disputes through the facilities of existing regional bodies and
non-governmental organizations and through such other institutions as may
be established in the future;

“Suggests that any such steps be taken in a manner that will assure
proper coordination of effort, avoidance of duplication and due observance
of budgetary considerations;

“Requests that the Secretary-General submit this resolution to the.

appropriate organs of the United Nations.”


For example, the International Institute for the Unification of Private Law and the Inter-American
Council of Jurists.

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 Convention on the Recognition and Enforcement .
of Foreign Arbitral Awards

Article I

1. This Convention shall apply to the recognition and enforcement of

arbitral awards made in the territory of a State other than the State where
the recognition and enforcement of such awards are sought, and arising out
of differences between persons, whether physical or legal. It shall also apply
to arbitral awards not considered as domestic awards in the State where
their recognition and enforcement are sought.

2. The term “arbitral awards” shall include not only awards made by
arbitrators appointed for each case but also those made by permanent arbitral
bodies to which the parties have submitted.

3. When signing, ratifying or acceding to this Convention, or notifying

extension under article X hereof, any State may on the basis of reciprocity.
declare that it will apply the Convention to the recognition and enforcement of
awards made only in the territory of another Contracting State. It may also.
declare that it will apply the Convention only to differences arising out of legal
relationships, whether contractual or not, which are considered as commercial
under the national law of the State making such declaration.

Article II

1. Each Contracting State shall recognize an agreement in writing

under which the parties undertake to submit to arbitration all or any differ-
ences which have arisen or which may arise between them in respect of a
defined legal relationship, whether contractual or not, concerning a subject
matter capable of settlement by arbitration.

2. The term “agreement in writing” shall include an arbitral clause

in a contract or an arbitration agreement, signed by the parties or contained
in an exchange of letters or telegrams.

3. The court of a Contracting State, when seized of an action in a

matter in respect of which the parties have made an agreement within the
meaning of this article, shall, at the request of one of the parties, refer the
parties to arbitration, unless it finds that the said agreement is null and void,.
inoperative or incapable of being performed.

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 Article III

Each Contracting State shall recognize arbitral awards as binding and

enforce them in accordance with the rules of procedure of the territory where
the award is relied upon, under the conditions laid down in the following
articles. There shall not be imposed substantially more onerous conditions
or higher fees or charges on the recognition or enforcement of arbitral awards
to which this Convention applies than are imposed on the recognition or
enforcement of domestic arbitral awards.

Article IV

1. To obtain the recognition and enforcement mentioned in the pre-

ceding article, the party applying for recognition and enforcement shall, at
the time of the application, supply:
(a) The duly authenticated original award or a duly certified copy
thereof;
(b) The original agreement referred to in article II or a duly certified
copy thereof.

2. If the said award or agreement is not made in an official language

of the country in which the award is relied upon, the party applying for
recognition and enforcement of the award shall produce a translation of these
documents into such language. The translation shall be certified by an official
or sworn translator or by a diplomatic or consular agent.

Article V

1. Recognition and enforcement of the award may be refused, at the

request of the party against whom it is invoked, only if that party furnishes
to the competent authority where the recognition and enforcement is sought,
proof that:
(a) The parties to the agreement referred to in article II were, under
the law applicable to them, under some incapacity, or the said agreement is
not valid under the law to which the parties have subjected it or, failing any
indication thereon, under the law of the country where the award was made;
or
(b) The party against whom the award is invoked was not given proper
notice of the appointment of the arbitrator or of the arbitration proceedings
or was otherwise unable to present his case; or

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 (c) The award deals with a difference not contemplated by or not.
falling within the terms of the submission to arbitration, or it contains deci-
sions on matters beyond the scope of the submission to arbitration, provided
that, if the decisions on matters submitted to arbitration can be separated
from those not so submitted, that part of the award which contains decisions
on matters submitted to arbitration may be recognized and enforced; or
(d) The composition of the arbitral authority or the arbitral procedure
was not in accordance with the agreement of the parties, or, failing such
agreement, was not in accordance with the law of the country where the
arbitration took place; or
(e) The award has not yet become binding on the parties, or has been
set aside or suspended by a competent authority of the country in which,
or under the law of which, that award was made.

2. Recognition and enforcement of an arbitral award may also be.

refused if the competent authority in the country where recognition and
enforcement is sought finds that:
(a) The subject matter of the difference is not capable of settlement
by arbitration under the law of that country; or
(b) The recognition or enforcement of the award would be contrary to
the public policy of that country.

Article VI

If an application for the setting aside or suspension of the award has

been made to a competent authority referred to in article V (1) (e), the.
authority before which the award is sought to be relied upon may, if it
considers it proper, adjourn the decision on the enforcement of the award
and may also, on the application of the party claiming enforcement of the
award, order the other party to give suitable security.

Article VII

1. The provisions of the present Convention shall not affect the valid-
ity of multilateral or bilateral agreements concerning the recognition and
enforcement of arbitral awards entered into by the Contracting States nor
deprive any interested party of any right he may have to avail himself of
an arbitral award in the manner and to the extent allowed by the law or the
treaties of the country where such award is sought to be relied upon.

10

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 2. The Geneva Protocol on Arbitration Clauses of 1923 and the.
Geneva Convention on the Execution of Foreign Arbitral Awards of 1927
shall cease to have effect between Contracting States on their becoming
bound and to the extent that they become bound, by this Convention.

Article VIII

1. This Convention shall be open until 31 December 1958 for signature

on behalf of any Member of the United Nations and also on behalf of any other
State which is or hereafter becomes a member of any specialized agency of the
United Nations, or which is or hereafter becomes a party to the Statute of the
International Court of Justice, or any other State to which an invitation has been
addressed by the General Assembly of the United Nations.

2. This Convention shall be ratified and the instrument of ratification

shall be deposited with the Secretary-General of the United Nations.

Article IX

1. This Convention shall be open for accession to all States referred

to in article VIII.

2. Accession shall be effected by the deposit of an instrument of.

accession with the Secretary-General of the United Nations.

Article X

1. Any State may, at the time of signature, ratification or accession,

declare that this Convention shall extend to all or any of the territories for
the international relations of which it is responsible. Such a declaration shall
take effect when the Convention enters into force for the State concerned.

2. At any time thereafter any such extension shall be made by notifica-

tion addressed to the Secretary-General of the United Nations and shall take
effect as from the ninetieth day after the day of receipt by the Secretary-General
of the United Nations of this notification, or as from the date of entry into
force of the Convention for the State concerned, whichever is the later.

3. With respect to those territories to which this Convention is not

extended at the time of signature, ratification or accession, each State.
concerned shall consider the possibility of taking the necessary steps in order

11

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 to extend the application of this Convention to such territories, subject,
where necessary for constitutional reasons, to the consent of the Govern-
ments of such territories.

Article XI

In the case of a federal or non-unitary State, the following provisions

shall apply:
(a) With respect to those articles of this Convention that come within
the legislative jurisdiction of the federal authority, the obligations of the
federal Government shall to this extent be the same as those of Contracting
States which are not federal States;
(b) With respect to those articles of this Convention that come within
the legislative jurisdiction of constituent states or provinces which are not,
under the constitutional system of the federation, bound to take legislative
action, the federal Government shall bring such articles with a favourable
recommendation to the notice of the appropriate authorities of constituent
states or provinces at the earliest possible moment;
(c) A federal State Party to this Convention shall, at the request of
any other Contracting State transmitted through the Secretary-General of the
United Nations, supply a statement of the law and practice of the federation
and its constituent units in regard to any particular provision of this Conven-
tion, showing the extent to which effect has been given to that provision by
legislative or other action.

Article XII

1. This Convention shall come into force on the ninetieth day follow-
ing the date of deposit of the third instrument of ratification or accession.

2. For each State ratifying or acceding to this Convention after the

deposit of the third instrument of ratification or accession, this Convention
shall enter into force on the ninetieth day after deposit by such State of its
instrument of ratification or accession.

Article XIII

1. Any Contracting State may denounce this Convention by a written

notification to the Secretary-General of the United Nations. Denunciation

12

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 shall take effect one year after the date of receipt of the notification by the
Secretary-General.

2. Any State which has made a declaration or notification under.

article X may, at any time thereafter, by notification to the Secretary-General
of the United Nations, declare that this Convention shall cease to extend to
the territory concerned one year after the date of the receipt of the notifica-
tion by the Secretary-General.

3. This Convention shall continue to be applicable to arbitral awards

in respect of which recognition or enforcement proceedings have been.
instituted before the denunciation takes effect.

Article XIV

A Contracting State shall not be entitled to avail itself of the present

Convention against other Contracting States except to the extent that it is
itself bound to apply the Convention.

Article XV

The Secretary-General of the United Nations shall notify the States

contemplated in article VIII of the following:
(a) Signatures and ratifications in accordance with article VIII;
(b) Accessions in accordance with article IX;
(c) Declarations and notifications under articles I, X and XI;
(d) The date upon which this Convention enters into force in accord-
ance with article XII;
(e) Denunciations and notifications in accordance with article XIII.

Article XVI

1. This Convention, of which the Chinese, English, French, Russian

and Spanish texts shall be equally authentic, shall be deposited in the.
archives of the United Nations.

2. The Secretary-General of the United Nations shall transmit a certi-

fied copy of this Convention to the States contemplated in article VIII.

13

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07-87406_E_main_mm.indd 14 18/01/2008 18:17:03
 Part two

recommendation regarding the interpretation .

of article II, paragraph 2, and article VII, .
paragraph 1, of the Convention on .
the Recognition and Enforcement .
of Foreign Arbitral Awards

General Assembly resolution 61/33

of 4 December 2006

The General Assembly,

Recognizing the value of arbitration as a method of settling disputes

arising in the context of international commercial relations,

Recalling its resolution 40/72 of 11 December 1985 regarding the.

Model Law on International Commercial Arbitration,1

Recognizing the need for provisions in the Model Law to conform to

current practices in international trade and modern means of contracting
with regard to the form of the arbitration agreement and the granting of.
interim measures,

Believing that revised articles of the Model Law on the form of the
arbitration agreement and interim measures reflecting those current practices
will significantly enhance the operation of the Model Law,

Noting that the preparation of the revised articles of the Model Law on
the form of the arbitration agreement and interim measures was the subject
of due deliberation and extensive consultations with Governments and.
interested circles and would contribute significantly to the establishment of
a harmonized legal framework for a fair and efficient settlement of interna-
tional commercial disputes,

1
Official Records of the General Assembly, Fortieth Session, Supplement No. 17 (A/40/17),
annex I.

15

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 Believing that, in connection with the modernization of articles of the
Model Law, the promotion of a uniform interpretation and application of
the Convention on the Recognition and Enforcement of Foreign Arbitral
Awards, done at New York, 10 June 1958,2 is particularly timely,

1. Expresses its appreciation to the United Nations Commission on

International Trade Law for formulating and adopting the revised articles of
its Model Law on International Commercial Arbitration on the form of the
arbitration agreement and interim measures, the text of which is contained
in annex I to the report of the United Nations Commission on International
Trade Law on the work of its thirty-ninth session,3 and recommends that all
States give favourable consideration to the enactment of the revised articles
of the Model Law, or the revised Model Law on International Commercial
Arbitration of the United Nations Commission on International Trade Law,
when they enact or revise their laws, in view of the desirability of uniformity
of the law of arbitral procedures and the specific needs of international
commercial arbitration practice;

2. Also expresses its appreciation to the United Nations Commission

on International Trade Law for formulating and adopting the recommenda-
tion regarding the interpretation of article II, paragraph 2, and article VII,
paragraph 1, of the Convention on the Recognition and Enforcement of.
Foreign Arbitral Awards, done at New York, 10 June 1958,2 the text of which
is contained in annex II to the report of the United Nations Commission on
International Trade Law on the work of its thirty-ninth session;3

3. Requests the Secretary-General to make all efforts to ensure that

the revised articles of the Model Law and the recommendation become
generally known and available.

64th plenary meeting

4 December 2006

United Nations, Treaty Series, vol. 330, No. 4739.

2

Official Records of the General Assembly, Sixty-first Session, Supplement No. 17 (A/61/17).
3

16

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 Recommendation regarding the interpretation of article II,
paragraph 2, and article VII, paragraph 1, of .
the Convention on the Recognition and Enforcement of .
Foreign Arbitral Awards, done in New York, 10 June 1958,
adopted by the United Nations Commission on .
International Trade Law on 7 july 2006 .
at its thirty-ninth session

The United Nations Commission on International Trade Law,

Recalling General Assembly resolution 2205 (XXI) of 17 December 1966,

which established the United Nations Commission on International Trade Law
with the object of promoting the progressive harmonization and unification of
the law of international trade by, inter alia, promoting ways and means of ensur-
ing a uniform interpretation and application of international conventions and
uniform laws in the field of the law of international trade,

Conscious of the fact that the different legal, social and economic.
systems of the world, together with different levels of development, are
represented in the Commission,

Recalling successive resolutions of the General Assembly reaffirming

the mandate of the Commission as the core legal body within the United
Nations system in the field of international trade law to coordinate legal
activities in this field,

Convinced that the wide adoption of the Convention on the Recognition

and Enforcement of Foreign Arbitral Awards, done in New York on 10 June
1958, has been a significant achievement in the promotion of the rule of
law, particularly in the field of international trade,

Recalling that the Conference of Plenipotentiaries which prepared and

opened the Convention for signature adopted a resolution, which states, inter
alia, that the Conference “considers that greater uniformity of national laws
on arbitration would further the effectiveness of arbitration in the settlement
of private law disputes”,

Bearing in mind differing interpretations of the form requirements under

the Convention that result in part from differences of expression as between
the five equally authentic texts of the Convention,

Taking into account article VII, paragraph 1, of the Convention, a.

purpose of which is to enable the enforcement of foreign arbitral awards to


United Nations, Treaty Series, vol. 330, No. 4739.

17

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 the greatest extent, in particular by recognizing the right of any interested
party to avail itself of law or treaties of the country where the award is
sought to be relied upon, including where such law or treaties offer a regime
more favourable than the Convention,

Considering the wide use of electronic commerce,

Taking into account international legal instruments, such as the

1985 UNCITRAL Model Law on International Commercial Arbitration, as
subsequently revised, particularly with respect to article 7, the UNCITRAL
Model Law on Electronic Commerce, the UNCITRAL Model Law on
Electronic Signatures and the United Nations Convention on the Use of
Electronic Communications in International Contracts,

Taking into account also enactments of domestic legislation, as well as

case law, more favourable than the Convention in respect of form require-
ment governing arbitration agreements, arbitration proceedings and the.
enforcement of arbitral awards,

Considering that, in interpreting the Convention, regard is to be had to

the need to promote recognition and enforcement of arbitral awards,

1. Recommends that article II, paragraph 2, of the Convention on the

Recognition and Enforcement of Foreign Arbitral Awards, done in New York,
10 June 1958, be applied recognizing that the circumstances described there-
in are not exhaustive;

2. Recommends also that article VII, paragraph 1, of the Convention

on the Recognition and Enforcement of Foreign Arbitral Awards, done in
New York, 10 June 1958, should be applied to allow any interested party to
avail itself of rights it may have, under the law or treaties of the country
where an arbitration agreement is sought to be relied upon, to seek recogni-
tion of the validity of such an arbitration agreement.


Official Records of the General Assembly, Fortieth Session, Supplement No. 17 (A/40/17), annex I,
and United Nations publication, Sales No. E.95.V.18.

Ibid., Sixty-first Session, Supplement No. 17 (A/61/17), annex I.

Ibid., Fifty-first Session, Supplement No. 17 (A/51/17), annex I, and United Nations publication,
Sales No. E.99.V.4, which contains also an additional article 5 bis, adopted in 1998, and the accompany-
ing Guide to Enactment.

Ibid., Fifty-sixth Session, Supplement No. 17 and corrigendum (A/56/17 and Corr.3), annex II,
and United Nations publication, Sales No. E.02.V.8, which contains also the accompanying Guide to
Enactment.

General Assembly resolution 60/21, annex.

18

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 1500

*1505576*
V.15-05576
MALACANANG

Manila
EXECUTIVE ORDER NO. 1008
CREATING AN ARBITRATION MACHINERY FOR
THE PHILIPPINE CONSTRUCTION INDUSTRY

WHEREAS, the construction industry provides employment to a large segment of the national labor force
and is a leading contributor to the gross national product;

WHEREAS, it is of vital necessity that continued growth towards national goals shall not be hindered by
problems arising from, or connected with, the construction industry;

WHEREAS, there is a need to establish an arbitral machinery to settle such disputes expeditiously in order
to maintain and promote a healthy partnership between the government and the private sector in the
furtherance of national development goals;

WHEREAS, Presidential Decree No. 1746 created the Construction Industry Authority of the Philippines
(CIAP) to exercise centralized authority for the optimum development of the construction industry and to
enhance the growth of the local construction industry;

WHEREAS, among the implementing agencies of the CIAP is the Philippine Domestic Construction Board
(PDCB) which is specifically authorized by Presidential Decree No. 1746 to "adjudicate and settle claims and
disputes in the implementation of public and private construction contracts and for this purpose, formulate
and adopt the necessary rules and regulations subject to the approval of the President";

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers
vested in me by law, do hereby authorize the creation of an arbitration machinery in the construction industry
of the Philippines, and do hereby order and ordain:

SECTION 1. Title - This Executive Order shall be known as the "Construction Industry Arbitration Law".

SECTION 2. Declaration of Policy - There is hereby declared to be the policy of the State to encourage the
early and expeditious settlement of disputes in the Philippine construction industry.

SECTION 3. Creation - There is hereby established in the CIAP a body to be known as the Construction
Industry Arbitration Commission (CIAC). The CIAC shall be under the administrative supervision of the
PDCB.

SECTION 4. Jurisdiction - The CIAC shall have original and exclusive jurisdiction over disputes arising
from, or connected with, contracts entered into by parties involved in construction in the Philippines, whether
the disputes arises before or after the completion of the contract, or after the abandonment or breach
thereof. These disputes may involve government or private contracts. For the Board to acquire jurisdiction,
the parties to a dispute must agree to submit the same to voluntary arbitration.

The jurisdiction of the CIAC may include but is not limited to violation of specifications for materials and
workmanship; violation of the terms of agreement; interpretation and/or application of contractual provisions;
amount of damages and penalties; commencement time and delays; maintenance and defects; payment
default of employer or contractor and changes in contract cost.

Excluded from the coverage of this law are disputes arising from employer-employee relationships which
shall continue to be covered by the Labor Code of the Philippines.

SECTION 5. Composition of the Board - The Commission shall consist of a Chairman and two (2)
members, all to be appointed by the CIAP Board upon recommendation by the members of the PDCB.

SECTION 6. Functions of the Commission - The Commission shall perform, among others that may be
conferred by law, the following functions:
1. To formulate and adopt an arbitration program for the construction industry;
 2. To enunciate policies and prescribe rules and procedures for construction arbitration;
3. To supervise the arbitration program, and exercise such authority related thereto as regards the
appointment, replacement or challenging of arbitrators; and
4. To direct its officers and employees to perform such functions as may be assigned to them from time
to time.

SECTION 7. Compensation of the Commission - The members of the Commission shall receive such per
diems and allowances as may be fixed by the CIAP from time to time.

SECTION 8. Term - The term of office of the members of the Commission shall be six (6) years ; provided,
however, that of the Commission members first appointed, the chairman shall hold office for six years; the
other member for four (4) years; and the third for two (2) years. The appointment to any vacancy in the
Commission shall only be for the unexpired portion of the term of the predecessor.

SECTION 9. Quorum - The presence of a majority of the members of the Commission shall constitue a
quorum for the transaction of business.

SECTION 10. Deliberations - The decisions of the Commission shall be arrived at by a majority vote.

SECTION 11. Secretariat - The Commission shall have a Secretariat to be headed by an Executive Director
who shall be responsible for receiving requests for arbitration and other pleadings; for notifying the parties
thereto; and, for fixing and receiving filing fees, deposits, costs of arbitration, administrative charges, and
fees. It shall be the duty of the Executive Director to notify the parties of the awards made by the arbitrators.

The Secretariat shall have among others a Publication and a Training Division.

SECTION 12. Authority to Appoint - The Commission is hereby authorized to appoint the Executive
Director, the consultants, the arbitrators, as well as personnel and staff.

SECTION 13. Authority to Collect Fees - The Commission is empowered to determine and collect fees,
deposits, costs of arbitration, as well as administrative and other charges as may be necessary in the
performance of its functions and responsibilities. The CIAC is authorized to use its receipts and deposits of
funds to finance its operations subject to the approval of the PDCB, the provisions of any law to the contrary
notwithstanding.

SECTION 14. Arbitrators - A sole arbitrator or three arbitrators may settle a dispute.

Where the parties agree that the dispute shall be settled by a sole arbitrator, they may, by agreement,
nominate him from the list of arbitrators accredited by the CIAC for appointment and confirmation. If the
parties fail to agree as to the arbitrator, the CIAC taking into consideration the complexities and intricacies of
the dispute/s has the option to appoint a single arbitrator or an Arbitral Tribunal.

If the CIAC decides to appoint an Arbitral Tribunal, each party may nominate one (1) arbitrator from the list
of arbitrators accredited by the CIAC for appointment and for confirmation. The third arbitrator who is
acceptable to both parties confirmed in writing shall be appointed by the CIAC and shall preside over the
Tribunal.

Arbitrators shall be men of distinction in whom the business sector and the government can have
confidence. They shall not be permanently employed with the CIAC. Instead, they shall render services only
when called to arbitrate. For each dispute they settle, they shall be given fees.

SECTION 15. Appointment of Experts - The services of technical or legal experts may be utilized in the
settlement of disputes if requested by any of the parties or by the Arbitral Tribunal. If the request for an
expert is done by either or by both of the parties, it is necessary that the appointment of the expert be
confirmed by the Arbitral Tribunal.

Whenever the parties request for the services of an expert, they shall equally shoulder the expert's fees and
expenses, half of which shall be deposited with the Secretariat before the expert renders service. When only
one party makes the request, it shall deposit the whole amount required.
SECTION 16. Arbitration Expenses - Arbitration expenses shall include the filing fee, administrative
charges, arbitrator's fees; fee and expenses of the expert, and others which may be imposed by the CIAC.

The administrative charges and the arbitrator's fees shall be computed on the basis of percentage of the
sum in dispute to be fixed in accordance with the Table of Administrative Charges and Arbitrator's Fees.

SECTION 17. Deposit to Cover Arbitration Expenses - The CIAC shall be authorized to fix the amount to
be deposited which must be equivalent to the expected arbitration expenses. The deposit shall be paid to
the Secretariat before arbitration proceedings shall commence. Payment shall either be shared equally by
the parties or be paid by any of them. If one party fails to contribute his share in the deposit, the other party
must pay in full. If both parties fail to tender the required deposit, the case shall be considered dismissed but
the parties shall still be liable to pay one half (1/2) of the agreed administrative charge.

SECTION 18. Reports - The Commission shall, within three (3) months after the end of the fiscal year,
submit its annual report to the CIAP. It shall, likewise, submit such periodic report as may be required from
time to time.

SECTION 19. Finality of Awards - The arbitral award shall be binding upon the parties. It shall be final and
inappealable except on questions of law which shall be appealable to the Supreme Court.

SECTION 20. Execution and Enforcement of Awards - As soon as a decision, order or award has
become final and executory, the Arbitral Tribunal or the single arbitrator, with the concurrence of the CIAC,
shall motu propio or on motion of any interested party, issue a writ of execution requiring any sheriff or other
proper officer to execute said decision, order or award.

SECTION 21. Rule-Making Power - The CIAC shall formulate and adopt necessary rules and procedures
for construction arbitration.

SECTION 22. Separability Clause - The provisions of this Executive Order are declared to be separable
and if any provision on the application hereof is held invalid or unconstitutional, the validity of the remaining
provision not otherwise affected shall remain in full force and effect.

SECTION 23. Repealing Clause - All provisions of existing laws, proclamations, decrees, letters of
instructions and executive orders contrary to or inconsistent herewith are hereby repealed or modified
accordingly.

SECTION 24. Effectivity of Clause - This Executive Order shall take effect immediately.

Done in the City of Manila, this 4th day of February in the Year of our Lord, Nineteen Hundred and Eighty-
Five.

(Sgd.) FERDINAND E. MARCOS

President of the Philippines

By the President:

(Sgd.) JUAN C. TUVERA

Presidential Executive Assistant