Arbitra Tion: Republic Act 876, As Amended
Arbitra Tion: Republic Act 876, As Amended
TIC
ARBITRA
TION
Republic Act 876 , as amended.
SECTION 2
Two or more persons or parties may submit
to the arbitration of one or more arbitrators
any controversy existing between them:
ARBITRATION
01 02 03
Inexpensive, speedy and Arbitration -- along with Aside from unclogging judicial
amicable method of settling mediation, conciliation and dockets, arbitration also hastens
disputes negotiation -- is encouraged by the resolution of disputes,
the Supreme Court. especially of the commercial
kind.
04 05
A consensual process, it was preferred to The parties may opt for recourse to third
orders imposed by government upon the parties, exercising their basic freedom to
disputants. Moreover, court litigations "establish such stipulation, clauses, terms
tended to be time-consuming, costly, and and conditions as they may deem
inflexible due to their scrupulous convenient, provided they are not contrary
observance of the due process of law to law, morals, good customs, public order
doctrine and their strict adherence to rules or public policy."
of evidence.
LAWS
REGULATING
ARBITRATION
IN THE
PHILIPPINES
ARBITRATION IN THE
PHILIPPINES IS REGULATED BY
THE:
SUPREME COURT'S
IMPLEMENTING RULES
A.M. NO. 07-11-08- AND REGULATIONS OF THE
SC ALTERNATIVE DISPUTE
01 SEPTEMBER RESOLUTION OF 2004
2009
The Special Rules of DOJ Department
Court on Alternative Circular No. 98
Dispute Resolution
POLICY TO PROMOTE
ARBITRATION
RULE 2.1 GENERAL POLICY
It is the policy of the State to actively promote the use of
ADR and allow the parties to make their own arrangements in
the resolution of disputes with the least intervention from the
courts.
RULE 2.2 POLICY ON
ARBITRATION
When there is an Arbitration Agreement, such arbitration
agreement is the law between the parties and that they are
expected to abide by it in good faith.
INVALID GROUNDS TO REFUSE REFERRAL
TO ARBITRATION:
A B C
D E E F
E
KINDS OF ARBITRATION
UNDER SECTION 2 OF THE ARBITRATION
LAW
In a form of a reference in
In a main contract as an May be constituted in a
a written contract to a
arbitration clause or a separate contract.
document containing an
compromissoire.
arbitration clause such as
to make that clause part of
the contract.
IN THE 2018 CASE OF TOURISM INFRASTRUCTURE
AND ENTERPRISE ZONE AUTHORITY V. GLOBAL-V
BUILDERS CO.
(G.R. NO. 219708, 3 OCTOBER 2018):
The Supreme Court upheld the jurisdiction of the Construction Industry Arbitration Commission
(CIAC) over the dispute, even if the five (5) Memorandum of Agreements (MoAs) between the parties
did not contain an arbitration agreement, which agreement was actually found in another or separate
document (such as the General Conditions of the Contract) deemed to form part of the MoAs.
TOURISM INFRASTRUCTURE AND
ENTERPRISE ZONE AUTHORITY V.
GLOBAL-V BUILDERS CO.
(G.R. NO. 219708, 3 OCTOBER 2018):
The Supreme Court upheld the jurisdiction
of the Construction Industry Arbitration
Commission (CIAC) over the dispute, even
if the five (5) Memorandum of Agreements
(MoAs) between the parties did not
contain an arbitration agreement, which
agreement was actually found in another
or separate document (such as the
General Conditions of the Contract)
deemed to form part of the MOAs.
SEPARATE ARBITRATION
AGREEMENT:
An arbitration agreement is A clause in the main contract is
valid so long as it is in writing sufficient and a separate
and signed by the parties to the arbitration agreement is not
agreement, or by their lawful needed, so long as the
agents. requirements for a contract are
met (section 2, Arbitration
Law).
Republic Act 9285 provides
that an arbitration agreement
can be in the form of an
arbitration clause in a contract
or in a separate agreement.
FORMS OF
ARBITRAT
ION
FORM OF ARBITRATION
AGREEMENT
The controversy shall be in writing and
subscribed by the party sought to be
charged, or by his lawful agent.
D E E F
- is commitment on
-since clause is the part of the parties
binding, they are to submit to
expected to abide arbitration the
by it in good faith. disputes covered
therein.
REMEDIES
Court shall stay the action or proceeding Resort to summary proceeding under Rule
until an arbitration has been had in 1.3.
accordance with the terms of the
agreement: Provided, That the applicant for a. Judicial Relief Involving the Issue of
the stay is not in default in proceeding with Existence, Validity or Enforceability of the
such arbitration. Arbitration Agreement; (ADR Special
Rules)
DUTY OF THE COURT IN SUMMARY PROCEEDING
UNDER THE SAID RULE:
● no trial on the merits.
ARBITRATION LAW
● only to enforce the agreement of the parties.
● court's authority only to pass upon the issue of
whether there is or there is no agreement in writing
providing for arbitration.
- arbitral organization that most commonly administers arbitration proceedings, involving all kinds of
subject matter.
ARBITRATION INSTITUTIONS WITH
INTERNATIONAL COMPONENT IN
PHILIPPINE
a. The ICC International Court of CONTRACTS:
Arbitration;
Ad hoc Arbitration
- means arbitration administered by an arbitrator
and/or the parties themselves.
- an arbitration administered by an institution
which is not a permanent or regular arbitration
institution in the Philippines.
-is commenced in accordance with the arbitration rules of the institution agreed
upon by the parties.
• The demand shall be set forth a specific time within which the
parties shall agree upon such arbitrator.
In the event that the contract between the parties provides for the
02. appointment of a single arbitrator,
The demand shall be set forth a specific time within which the parties
shall agree upon such arbitrator.
2.) The petition for judicial determination of the existence, validity and/or
enforceability of an arbitration may be filed ONLY prior to the
commencement of arbitration agreement.
3.) The court shall not enjoin the arbitration proceedings during the
pendency
of the petition.
4.) If the arbitral tribunal renders a final arbitral award and the
Court has not rendered a decision on the petition from the arbitral
tribunal’s preliminary ruling affirming its jurisdiction, that petition
shall become ipso facto moot and academic and shall be dismissed
by the Regional Trial Court.
1. When the supposed errors of fact or of law are so patent, gross and
prejudicial to a party. (Chung Fu Industries, Inc. vs. Court of Appeals,
206 SCRA 545).
2. When the arbitrator failed to apply the agreement of the parties the
breach of which gave rise to the dispute submitted to arbitration.
(Chung Fu Industries, Inc. vs. Court of Appeals, 206 SCRA 545).
3. When the arbitrator gave one party unjustified extra compensation for
certain items of work. (Chung Fu Industries, Inc. vs. Court of Appeals,
206 SCRA 545).
4. When one party has been deprived of a fair opportunity to
present his position before the arbitral tribunal. (Hi Precision
Steel Center, Inc. vs. Lim Kim Steel Builders, Dec. 13, 1993).
● NUMBER OF ARBITRATORS
Parties are free to determine the number of arbitrators.
Failing such determination, arbitrators shall be three