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Service of Demand
- US Courts: there is no due process violated where a party is served with notice in accordance
with such arbitration rules.
Policy on Arbitration
Where the parties have agreed to submit their dispute to arbitration, courts shall refer the parties
to arbitration pursuant to the ADR Act bearing in mind that such arbitration agreement is the law
between the parties and that they are expected to abide by it in good faith.
When a court is requested to refer the parties to arbitration in accordance with their arbitration
agreement, it shall NOT deny the request for any of the following reasons:
a. The referral tends to oust a court of its jurisdiction;
b. The court is in a better position to resolve the dispute subject of arbitration;
c. The referral would result in multiplicity of suits;
d. The arbitration proceeding is in a foreign country;
e. One or more of the issues are legal and one or more of the arbitrators are not lawyers;
f. One or more of the arbitrators are not Philippine nationals; or
g. One or more of the arbitrators are alleged not to possess the required qualification under the
arbitration agreement or law.
in the 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.
3. Confidentiality of Proceedings
Only those persons who have a direct interest in the controversy that is the subject
of arbitration shall have the right to attend any hearing --- since arbitration is a private
dispute resolution process
Hearing by Arbitrators
Hearing
- Similar to judicial hearing EXCEPT that the rules of evidence are liberally construed, and
technicalities of law and procedure are not strictly followed.
- A party who, after having received due notice of the date of hearing of a case, fails to appear
shall be deemed to have waived his right to appear and submit evidence in the case.
IRR: 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 or through a
representative at such hearing.
- The parties are allowed to present their evidence through the testimony of witnesses
- Arbitral Tribunal - Shall administer oaths to or require affirmation from all witnesses directing
them to tell the truth
- Accepted Method in arbitration: Instead of the usual direct examination, a party may submit
the sworn written statements of his witnesses to which may be attached the documentary
evidence which the witnesses, in their sworn statements, identify.
Right of Representation
- The persons who may appear for a party in arbitration:
a. The party himself,
b. A person in his regular employ duly authorized in writing by the party represented, or
c. An attorney-at-law duly authorized to practice law
Right to Due Process
- Every man is accorded reasonable opportunity to be heard.
- Among the “cardinal primary rights” which should be observed and respected in
administrative adjudications in order to comply with the imperatives of due process
Rules of Evidence
- SC: Arbitrators are NOT bound by the rules of evidence
- Arbitration Law requires arbitrators to “receive as exhibits in evidence any document which
the parties may wish to submit”
Right of Cross-Examination; Right to a Fair Hearing
- The issue of whether the curtailment of the cross-examination of a witness by a party’s
counsel deprived such party of hits right to due process is resolved by determining whether
such party was or was not given the opportunity to be heard at a meaningful time and in a
meaningful manner.
- Fair hearing is one that meets the minimal requirement of fairness – adequate notice, a
hearing on the evidence, and an impartial decision by the arbitrator.
Use of Experts
- an expert engaged by an arbitral tribunal is like any other witness who is subject to
examination by the parties on the basis of his report, unless the parties have agreed that the
report of the expert shall be binding on the parties and the arbitral tribunal.
Briefs
Closure of Hearings
- necessary to indicate that no further evidence will be received from the parties.
- commences the period for the arbitrators to prepare and release the reward.
- arbitrators shall specifically inquire of all parties whether they have any further proof or
witnesses to present
- arbitrators shall declare the hearing closed UNLESS the parties have signified an intention to
file briefs
Briefs
- definite time for filing must be fixed by the arbitrators
- may be filed by the parties within 15 days after the close of the oral hearings
- Reply Briefs -- if any, shall be filed within 5 days following such 15-day period
Reopening of Hearing
Hearing
- may be reopened by the arbitrators on their own motion or upon the request of any party,
upon good cause, shown at any time BEFORE the award is rendered.
- The effective date for the closing of hearings shall be the date of the closing of the reopened
hearing
Proceeding in Lieu of Oral Hearing
In arbitration practice, and subject to such rules of procedure agreed upon by the parties, the
arbitral tribunal may conduct the arbitration in such manner as it considers appropriate subject to two
important conditions:
a. that the parties are treated with equality, and
b. that at any stage of the proceedings each party is given a full opportunity of presenting his case.