ALTERNATIVE DISPUTE RESOLUTION

INTERNATIONAL COMMERCIAL ARBITRATION vs. DOMESTIC ARBITRATION1

ICA DA

When International or Arbitration is international if any of the
Domestic components of parties places of business,
place of arbitration, place of performance of a
substantial part of the obligation, and place
where the subject matter of the dispute is
most closely connected, is located outside of
the Philippines.
Arbitration is domestic if the components of
parties places of business, place of
arbitration, place of performance of a
substantial part of the obligation, and place
where the subject matter of the dispute is most
closely connected, are all located in the
Philippines.

Disputes Covered The provisions and rules on domestic

arbitration cover both commercial and non-
Arbitration is commercial if it covers matters
commercial disputes provided they are
arising from all relationships of a commercial
susceptible of arbitration and do not fall within
nature.
the exclusive original arbitral jurisdiction of
quasi-judicial agencies.

Rule on Receipt
of Written Deemed received on the day it is delivered Shall be delivered personally, by registered
Communication personally or by registered letter or any other mail or courier service, and shall be deemed to
(same but different point of means. be received on the date it is delivered.
emphasis)

A party may be estopped from questioning non-compliance with a non-mandatory rule or any
Waiver of the Right to
requirement in an arbitration agreement or is deemed to have waived his objection thereto if he
Object (same)
fails to raise the objection without delay.
Confidentiality
(same)
The proceedings, records, evidence, and the arbitral award is confidential and shall not be
disclosed except: (1) With 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.

Due Process Parties shall be treated equally and shall be given a full opportunity to present their sides.
(same)

Metro Manila, unless the arbitral tribunal decides on a different place of arbitration taking
Default Place
(same)
into consideration the circumstances of the case.

Default Commencement The date on which a request for that dispute

Reckoned from the date when the other party
to be referred to arbitration is received by the
agreed to submit the dispute to arbitration.
respondent.

Default Language English English and Filipino

The law determined by conflicts of law rules 1. The Arbitration Law

Default
as determined by the arbitral tribunal to be
Applicable Law
applicable taking into account the terms of
the contract and the usages of the trade.
2. Some provisions of the Model Law
and the ADR Act
3. IRR of the ADR Act
4. All other rules applicable to
international commercial arbitration
which may be given suppletory
application in the absence of specific
applicable provisions.

3 arbitrators
Arbitrators
(Default no. & (1) Each party shall appoint 1 arbitrator, and both appointed shall appoint the 3rd arbitrator,
Procedure) failing which the appointment shall be made by the appointing authority.
(same) (2) sole arbitrator shall be appointed by the appointing authority.

An arbitrator must:
Arbitrators None. But the appointing authority shall
(Qualifications/ consider the following factors: 1. Be of legal age
Diqualifications) 2. Be in full enjoyment of his civil
1) Qualifications required by the
rights; and
agreement of the parties
3. Know how to read and write

1
G. T. ROBENIOL (2011)
pg. 1 A. MARONILLA
 2) Considerations as are likely to secure
the appointment of an independent
and impartial arbitrator and
3) In the case of sole arbitrator or third
arbitrator, the advisability of
appointing an arbitrator of a
nationality other than those of the
parties.
No person shall serve as an arbitrator if:
1. He is related by blood or marriage
within the 6th degree to either party.
2. He has or has had financial , fiduciary
or other interest in the controversy or
cause to be decided or in the result of
the proceeding;
3. He has personal bias which might
prejudice the right of any party to a
fair and impartial award; or
4. He has been selected to act as
champion or to advocate a partys
cause.

If circumstances exist that give rise to a

justifiable doubt as to his
Grounds for Challenge
of an Arbitrator 1) Impartiality or independence
If circumstances exist that give rise to a
2) Possession of the qualifications
justifiable doubt as to his:
provided for under the law or agreed
1) Impartiality or independence, or upon by the parties
2) Possession of the qualifications 3) Disqualification to act as arbitrator
agreed upon by the parties 4) Refusal to respond to questions by a
party regarding the nature and extent
of his professional dealings with a
party or his counsel

1. The challenging party shall send a written statement of the reasons for the challenge to
Default Procedure for
the arbitral tribunal within15 days after becoming aware of the constitution of the
the Challenge
(same)
arbitral tribunal or after becoming aware of the circumstance constituting the ground
for the challenge.
2. If the challenge is not successful, the challenging party may request the appointing
authority within 30 days from notice of the decision rejecting the challenge, to decide
the challenge.

Procedure in Case the If an arbitrator becomes de jure or de facto unable to perform his functions or fails to act
Arbitrator Fails to Act without undue delay, his mandate terminates:
(same) a) if he withdraws, or b) if the parties agree on the termination.

Any party may request for the grant of interim measures from the arbitral tribunal against the
Interim Measures
(same)
adverse party. The relief may be granted in order to prevent irreparable loss, to provide security
for the performance of an obligation, to produce or preserve evidence, or to compel any other
appropriate acts or omissions.

A party may be represented by a person of his choice even if a non-lawyer. However, if a non-
Legal Representation
(same)
lawyer is so appointed, he shall not be authorized to appear as counsel in any Philippine court
or any quasi-judicial body even if such appearance is in relation to the arbitration in which he
appears.

Default Rules of 1. Statement of claims

1. Statement of claims
Procedure 2. Statement of defenses
(with slight variance) 2. Statement of defenses
3. Default of parties
3. Amendment of claims or defenses
4. Amendment of claims / defenses
4. Hearing and written proceedings
5. Hearings
a. Pre-hearing conference
6. Court assistance in taking evidence
b. Threshold issues
7. Power to issue subpoena
c. Hearing dates and
8. Appoint experts
postponements
9. Conclusion / Closure
d. Default of a party
a. When the claimant withdraws his
e. Decision of interlocutory
claim
matters
b. By the agreement of the parties
f. Consolidation or concurrent
c. By the finding of the arbitral
hearings
tribunal that the continuation of the
g. Closure of hearing
proceeding has become unnecessary
5. Rule on taking evidence
or impossible
a. Testimonial evidence
b. Documentary evidence
c. Subpoena
d. Expert
e. Court assistance in taking
evidence
pg. 2 A. MARONILLA
 6. Decision
7. Form and content of the award
8. Settlement
9. Termination of proceedings
a. When the claimant withdraws
his claim
b. By the agreement of the parties
c. By the finding of the arbitral
tribunal that the continuation of
the proceeding has become
unnecessary or impossible
d. Non-payment of the required
deposits in full

Costs In principle, the costs shall be borne by the unsuccessful party. However, the arbitral tribunal
(same) may apportion the costs if reasonable under the circumstances of the case.

Correction & 1. Quantification of costs and the

1. Quantification of costs
Interpretation determination of the party liable
2. Correction of typographical and
therefor, or the division thereof.
similar errors initiated by a party
(provided a reservation for such hearing
3. Correction of typographical and
& quantification has been made)
similar errors initiated by the court
2. Correction of typographical and similar
4. Interpretation of the award
error initiated by a party. (within 30
5. Additional award
days from the receipt of the award)
6. Under the arbitration agreement
3. Correction of the typographical error
7. Failure to resolve an issue as to
initiated by the arbitral tribunal. (within
the unresolved issues
30 days from the date of the award)
4. Interpretation of the award.
5. Additional award as to the claims
presented in the arbitral proceeding but
omitted in the award.

Setting Aside of 1. The petitioner furnishes proof that there

1. The arbitral award was procured by
Arbitral Award was:
corruption, fraud or other undue
a. Defect in the arbitration agreement
means;
b. Violation of due process
2. There was evident partiality or
c. Lack or excess of jurisdiction
corruption in the arbitral tribunal or
d. Violation of the arbitration
any of its members;
agreement
3. The arbitral tribunal was guilty of
2. Or, the court finds that:
misconduct or any form of
a. The subject of the dispute is not
misbehavior that has materially
capable of settlement under the
prejudiced the rights of any party;
laws.
4. One or more of the arbitrators was
b. The award is in conflict with public
disqualified to act as such and
policy.
willfully refrained from disclosing
such disqualification; or
5. 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.

Recognition/ Must go through the process of recognition in Must go through the process of
Confirmation order to be entitled to enforcement in the confirmation prior to their
Philippines. implementation

pg. 3 A. MARONILLA
pg. 4 A. MARONILLA