CHAPTER 4

ARBITRATION IN GENERAL

Prepared by:
AEJAY V. BARIAS
 Definition
Arbitration is a voluntary dispute
resolution process which one or more
arbitrators, appointed in accordance with the
agreement of the parties or rules promulgated
pursuant to the ADR act, resolve a dispute by
rendering an award.
It has also been define and distinguished from the
court trial system as follows:

“x x x [A]n arrangement for taking and abiding by the

judgement of selected persons in some disputed
matter, instead of carrying it to established tribunals
of justice, and is intended to avoid the formalities, the
delay, the expenses and vexation of ordinary
litigation.”
 ARBITRATION MEDIATION

In arbitration, arbitrators In mediation, it is the parties

decides the dispute and themselves who enter into and
renders an arbitral awards to execute a mediated settlement
conclude the arbitral agreement to conclude the
proceedings mediation proceedings.
Kinds of Arbitration
Voluntary
Involves the reference of a dispute to an
impartial body, the members of which are
chosen by the parties themselves, which
parties freely consent in advance to abide by
the arbitral award issued after the
proceedings where both parties had the
opportunity to be heard.
Compulsory Arbitration
The process of settlement of labor
disputes by a government agency which has
the authority to investigate and to make n
award which is binding on all parties and as a
mode of arbitration where the parties are
compelled to accept the resolution of their
dispute through arbitration by a third party.
Policy on Arbitration
Being an inexpensive, speedy and
amicable method of settling disputes,
arbitration along with mediation, conciliation
and negotiation – is encourage by the
Supreme Court
Arbitrator
Person appointed to render an award,
alone or with others, in a dispute that is the
subject of an arbitration agreement.
Arbitration Agreement
Agreement of parties to submit to
arbitration all or certain disputes which have
arisen or which may arise between them in
respect of a legal relationship, whether
contractual or not.
 Two modes of submitting a dispute or
controversy to arbitration depending on the
existence or pendency of the dispute or
controversy to be submitted for resolution,
namely:
 An agreement to submit to Arbitration
A submission agreement
 These two modes were differentiated in
the case of OSPA vs Court of Appeals as follows:
“An agreement to submit to arbitration
some future dispute usually stipulated upon a
civil contract between the parties and known
as an agreement to submit to arbitration, and
an agreement to submit an existing matter of
difference to arbitrators, termed the
submission agreement.”
Doctrine of Separability
Otherwise known as the doctrine of
severability, the doctrine of separability
enunciates that an arbitration agreement is
independent of the main contact even if it is
contained in an arbitration clause.
Due process in Arbitral proceedings
The principles of administrative due
process equally apply to arbitral proceedings.
Thus in Equitable PCI Banking Corporation vs
RCBC Capital Corporation, the Supreme Court
applied the principles of administrative due
process in relation to the right to cross
examine witnesses in an arbitral proceedings.
Judicial Review and Court Intervention

There are three types of Judicial intervention

in arbitration:
Judicial assistance in arbitration
Judicial review of arbitral award
Judicial review of court decisions in ADR
related cases
 Judicial assistance in arbitration
Allows the parties in an arbitration to
secure from the courts order or processes that
will aid in the conduct of arbitration. These
include referral to arbitration, issuance of
interim measures of protection, assistance in
taking evidence and issuance of
confidentiality and protective orders.
 Judicial review of arbitral award
Involves passing upon, to the extent
allowed and on grounds provided for by law,
the propriety of the arbitral award.
Judicial review of court decisions in ADR
related cases
Involves the remedies available from
decisions or orders of the Regional Trial
Courts and the Court of Appeals rendered in
the first two types of judicial intervention.