ALTERNATIVE DISPUTE RESOLUTION

Course Outline - SY 2015-2016

I. Introduction What is Conflict?

a state of opposition, incompatibility, or disagreement between persons or ideas or interests which produce enmity or
hostility that must be resolved.

a normal and inevitable element in any working relationship. Conflict happens due to differences in opinions and can arise
whenever individuals have conflicting ideas, principles, values or desires.
And How to Manage Conflict.
"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.
II. Common Types of Dispute Settlement
- Negotiation

any form of direct or indirect communication whereby parties who have opposing interests discuss the form of any joint
action which they might take to manage and ultimately resolve the dispute between them.
- Inquiry and fact finding

Fact-finding refers to a process by which the facts relevant to a dispute are determined. It is a process whereby a neutral
third party investigates a matter to determine the disputed fact. This process is usually used in Alternate Dispute
Resolution procedures involving technical issues or cases in which significant factual issues are part of a larger dispute.
With regard to the binding effect of fact-finding results, the parties can negotiate on making the fact-finding results binding
or nonbinding.
- Mediation

means a voluntary process in which a mediator, selected by the disputing parties, facilitates communication and
negotiation, and assist the parties in reaching a voluntary agreement regarding a dispute.
- Good offices

In international law, a means of peacefully resolving disputes between states. By good offices is meant the assistance of a
state or international body in establishing contact or beginning direct negotiations between the disputing parties, with the
aim of the peaceful settlement of the conflict. Good offices are in the nature of advice that is not binding on the disputing
parties. A state rendering its good offices essentially takes no part in the negotiations themselves or in the examination of
the dispute. Good offices are thus distinguished from mediation.

Good offices may be offered in peacetime as well as wartime. An example of the use of good offices which has had great
progressive significance for international relationsis the Soviet Unions good offices that led to the meeting of Indian and
Pakistani representatives and to the signing of the Tashkent Declaration of 1966. The basic procedures for offering good
offices are set forth in the Hague Conventions of 1899 and 1907. Under the UNCharter, the UN Security Council in
particular may offer its good offices to disputing parties (arts. 33, 36, and 38 ofthe UN Charter).

- Conciliation

Conciliation is a relatively informal and unstructured process. During the conciliation process, neutrality and confidentiality
are not usually guaranteed as the intervener is acting as an intermediary to promote improved communication and
working relationships. Conciliation often is a cooling off forum where the conciliator may offer advice, perspectives and
suggestions to deescalate a conflict.
- Arbitration

a voluntary dispute resolution process in which one or more arbitrators, appointed in accordance with the agreement of
the parties, or rules promulgated pursuant to this Act, resolve a dispute by rendering an award.

III. International Dispute Resolutions

- Overview of International Law

What is public international law?

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Public international law is a combination of rules and customs governing relations between states in different fields, such as armed
conflict, human rights, the sea, space, trade, territorial boundaries, and diplomatic relations.
The United Nations Charter sets out the fundamental principles of modern public international law, notably:
Promotion of human rights;
The strict limitation on the right to use force against other states;
The strict prohibition on the acquisition of territory by force.
Subjects of international law
States are the primary subject of international law. However, international law can also regulate the actions of other entities, namely:
international organisations, non-state actors (including national liberation movements and individuals), international nongovernmental organizations, and multinational companies. All can be defined as subjects of international law, and can be considered
as having legal personality. This means that they have both duties and rights provided for by international law.
Public international law and the protection of human dignity
Several branches of public international law combine to protect universal values relating to human dignity. Each represents a tool of
protection and all should be considered as complementary and must be applied comprehensively. These branches are: international
humanitarian law, international refugee law, international criminal law and international human rights law.
What is the difference between public international law and private international law?
Public international law comprises a body of rules which is concerned solely with the rights and obligations of sovereign states. For
example the United Nations Charter is a central instrument of public international law.
Private international law, also referred to as conflict of laws, consists of rules which govern relations between private entities and
decide which domestic law and/or courts can adjudicate issues with an international component. For example, if a Chinese
company was to sign a contract with the United States, private international law would regulate the applicable law if that contract
was violated.
Relationship between domestic and international law
The relationship between domestic and international law on a procedural level can be complex, particularly where a national court is
applying international law directly. It is important to remember that domestic law cannot be used as a justification for a failure to
meet an international responsibility.
In the words of Hersch Lauterpact, who is recognised as one of the founders of modern international law:
"The self-evident principle of international law that a State cannot invoke its municipal law as the reason for the non-fulfillment of its
international obligations.
Sources of international law
The norms and rules of international law are codified in a range of treaties and other materials. The main sources of international
law are:
Treaty law: Such as the United Nations Charter and the Geneva Conventions;
Customary international law: Established by state practice and legal intention;
General principles of law recognised by civilised nations: Seen as inspirational rather than direct sources of the law. Examples of
this are the principles of estoppel and equity.
State responsibility
One of the fundamental principles of international law provides that any state that violates its international obligations must be held
accountable for its actions. More concretely, according to the notion of state responsibility, states that do not respect their
international duties are obliged to immediately stop their illegal actions and make reparations to the injured parties. The principle of
state responsibility forms part of international customary law and is binding upon all states.
Third States also have an obligation not to assist other states who are violating international law, and have a legal duty under
Common Article 1 of the Geneva Conventions to ensure respect for IHL.
Grave violations of international Law: Jus cogens and erga omnes obligations
A number of rules of international law reflect "jus cogens" norms, also referred to as peremptory norms of international law.
Jus cogens status is reserved for the most fundamental rules of international law, which are recognised and accepted by the
international community as rules of which no exceptions are allowed (article 53 of the Vienna Convention on the Law of Treaties). All

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states are obliged to adhere to jus cogens rules at all times, regardless of the circumstances, and these rules cannot be superceded
by international agreements or treaties.
Examples of jus cogens norms include the right of all peoples to self-determination, the prohibition on the acquisition of territory by
force and the prohibition on genocide, slavery and torture.
Erga omnes
The violation of a number of provisions under international law - usually those that are categorised as jus cogens rules - gives rise to
"erga omnes" obligations. Erga omnes is a Latin concept that translates as "towards all". When fundamental principles of
international law are violated, an erga omnes obligation arises, meaning that all states have the right to take action. Examples of
acts that would give rise to erga omnes obligations include piracy, genocide, slavery, torture and racial discrimination.
In July 2004 the International Court of Justice found "the right of peoples to self-determination" a be an erga omnes norm of
international law.
Basic principles of international law (sovereignty, jurisdiction, independence, etc.)
When there is no provision in an international treaty or statute nor any recognized customary principle of international law available
for application in an international dispute, the general principles of law can be used to fill the gap.
A most common way of resolving disputes under the rule of law is by reference to, and application of, the language of applicable
multilateral or bilateral treaties or statutes, or some other writing which provides evidence of the relationship and past positions of
the parties to a dispute. Another method is by reference to custom, the practice of nations in a particular area (customary
international law) and principles of law derived from such.
But what happens when there is no such guiding authority for the benefit of those involved in resolving the dispute? Such gaps are
inevitable in any legal system, including the international one, because treaties (contracts), statutes, and rules derived from custom
cannot be designed to cover all situations which give rise to disputes. International law provides an answer to that question for the
resolution of international disputes: general principles of law may used to fill the void or gap. These may be referred to, as one
authority did, as nonconsensual sources of international law.
In the municipal law systems of countries with a common law tradition, judges very often look to the decisions from outside sources
to fill in the gaps of the law to be applied in the resolution of a particular case. As an example, state courts in the United States
very often cite the decisions of other state courts in the course of an opinion in a case, where a needed legal rule of the deciding
state is absent or unclear. As a corollary, some justices of the Supreme Court of the United States have recently adopted the
practice of using the decisions of courts of other countries and international courts for their persuasive value in clarifying unclear
rules to be applied in a case.
In civil law countries, as Professor Mark Janis of the University of Connecticut Law School notes in his An Introduction to
International Law:
[L]awyers and judges in the civil law tradition are familiar with the problem of lacunae, gaps in the law, a concept based on the
premise that only formal legislative institutions are empowered to make legal rules.
Thus, judges in civil law countries need statutory authority to fill in the gaps of the legislatively created legal rules. Must the civil law
judge merely look at the statutes or decisions of courts in foreign jurisdictions for a fill in the gaps principle, or must the judge find
explicit statutory authority for such practice, i.e. to find explicit authorization permitting courts to fill the legislative vacuum?
Fortunately for the international judge or the domestic judge faced with applying international law in a particular cause, the answer
can be found in Article 38(1) of the Statute of the International Court of Justice. This provision specifically authorizes in listing the
sources of law to be applied by the Court, treaties, customs and the general principles of law recognized by civilized nations.
Professor Janis comments on this provision:
The basic notion is that a general principle of international law is some proposition of law so fundamental that it will be found in
virtually every legal system. When treaties and customary international law fail to offer a needed international rule, a search may be
launched in comparative law to discover if national legal systems use a common legal principle. If such a common legal principle is
found, then it is presumed that a comparable principle should be attributed to fill the gap in international law.
An example cited among others by Professor Janis is the International Court of Justice decision in 1949 in the Corfu Channel case,
which addressed the question of Albanian civil liability for the mining of the Corfu Channel and subsequent damage to two British
naval vessels that resulted from striking mines. In discussing whether the United Kingdom could establish the knowledge and
responsibility of Albania for the laying of the mines, the Courts opinion stated:
[T[he fact of this exclusive territorial control exercised by a State within its frontiers has a bearing upon the methods of proof
available to establish the knowledge of that State as to such events. By reason of this exclusive control, the other State, the victim of
a breach of international law, is often unable to furnish direct proof of facts giving rise to responsibility. Such a State should be

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allowed a more liberal recourse to inferences of fact and circumstantial evidence. This indirect evidence is admitted in all systems of
law, and its use is recognized by international decisions. It must be regarded as of special weight when it is based on a series of
facts linked together and leading logically to a single conclusion. (Emphasis added)
The existence of a body of legal principles and rules that are common to all, or almost all legal systems, is supported by some
observations made by a British barrister, C. Wilfred Jenks, in his book The Common Law of Mankind, published under the auspices
of the London Institute of World Affairs in 1958. In a section of the book titled Extent of the Influence of the Common and the Civil
Law, Jenks observes that virtually all of the legal systems of the world, including those in Latin America, Islamic countries, African
countries, countries within the former Soviet block, India, China, and Japan have been profoundly influenced in the course of their
development by either the civil law or the common law. The result is that many principles of law are common to these legal systems.
One only has to examine, for example, the law of contracts or torts or the criminal law relating to murder in these legal systems to
understand the truth of this assertion. Thus the common law and the civil law, which by themselves share common principles of law,
provide the basic framework that many general principles of law can be derived and used to fill the gap when there is no general
principle of international law available for application in the resolution of a particular case.
James G. Apple, Co-Editor of the International Judicial Monitor and President, International Judicial Academy
- Article 33, Paragraph 1 of the United Nations Charter
Charter of the united Nations, Chapter VI: Pacific Settlement of Disputes
Article 33
1. The parties to any dispute, the continuance of which is likely to endanger the maintenance of international peace and security,
shall, first of all, seek a solution by negotiation, enquiry, mediation, conciliation, arbitration, judicial settlement, resort to regional
agencies or arrangements, or other peaceful means of their own choice.
- International Court of Justice.
The International Court of Justice (ICJ) is the principal judicial organ of the United Nations (UN). It was established in June 1945 by
the Charter of the United Nations and began work in April 1946.
The seat of the Court is at the Peace Palace in The Hague (Netherlands). Of the six principal organs of the United Nations, it is the
only one not located in New York (United States of America).
The Courts role is to settle, in accordance with international law, legal disputes submitted to it by States and to give advisory
opinions on legal questions referred to it by authorized United Nations organs and specialized agencies.
The Court is composed of 15 judges, who are elected for terms of office of nine years by the United Nations General Assembly and
the Security Council. It is assisted by a Registry, its administrative organ. Its official languages are English and French.
- Some of Alternative Dispute Settlement Institutions
The Philippine Institute of Arbitrators (PIArb) is the first learned society in the Philippines dedicated to both promoting private dispute
resolution within the country and pursuing initiatives to enable the country to serve as a viable and practical venue for private
dispute resolution. The Philippine Institute of Arbitrators (PIArb) is the voice for private dispute resolution in the Philippines. PIArb
envisions the use of arbitration and other modes of dispute resolution other than resolution by a court as the primary means of
resolving conflict in the Philippines.
- Permanent Court of Arbitration (Hague Convention 1907)
Established by treaty at the First Hague Peace Conference in 1899, the Permanent Court of Arbitration is the oldest global institution
for the settlement of international disputes. The Court offers a wide range of services for the resolution of international disputes
which the parties concerned have expressly agreed to submit for resolution under its auspices. Unlike the International Court of
Justice, the Permanent Court of Arbitration has no sitting judges: the parties themselves select the arbitrators. Another difference is
that sessions of the Permanent Court of Arbitration are held in private and are confidential. The Court also provides arbitration in
disputes between international organisations and between states and international organisations.
- International Chamber of Commerce (ICC) International Court of Arbitration
Established in 1923 as ICCs arbitration body, the International Court of Arbitration pioneered international commercial arbitration as
it is known today, initiating and leading the movement that culminated in the adoption of the New York Convention, the most
important multilateral treaty on international arbitration. The Court has also developed resolution mechanisms specifically conceived
for business disputes in an international context. Such disputes pose unique challenges, usually because the parties will be of
different nationalities, implying varied linguistic, legal and cultural backgrounds. Difficulties can be further compounded by distance,
and the perceived or actual inequality for one party to submit to the courts of another partys home ground.
The Court provides parties with a flexible and neutral setting for dispute resolution. It offers confidentiality and extraordinary freedom
for parties to choose the framework for how and where they want to resolve their dispute. While the dispute itself is resolved by

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independent arbitrators, the Court supervises the process from beginning to end, increasing the quality of the process and
enforceability of the awards. There are no restrictions as to who can use ICC Arbitration or who can act as arbitrators. This is
reflected in the increasing number of nationalities represented. Since its inception, the Court has administered more than 20,000
cases involving parties and arbitrators from some 180 countries.
The decision makers are called arbitrators, or collectively the arbitral tribunal. The arbitral tribunal comprises one or more
independent individuals selected by the parties or appointed through a mechanism that the parties have agreed upon. An arbitral
tribunals substantive decision is called an award. Awards in international arbitrations are not subject to any appeal (save in a very
limited number of jurisdictions) and can be enforced under both domestic and international enforcement regimes including, notably,
the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.
The parties to an arbitration are free to agree on whether to use the Rules of the ICC International Court of Arbitration, the rules of
another arbitral institution or no rules at all. Arbitration is the only alternative to court litigation for achieving a final, binding and
enforceable resolution of a dispute. Due to its numerous advantages over litigation (explained below), arbitration has become the
preferred and most widely used mechanism for resolving international commercial disputes. Businesses choose arbitration over
litigation because of its neutrality, finality, enforceability, procedural flexibility, and the ability to choose the arbitrators.
- United Nations Commission on International Trade Law (1985 UNCITRAL Model Law On International
Arbitration)

Commercial

UNCITRAL is the core legal body of the United Nations system in the field of international trade law. A legal body with universal
membership specializing in commercial law reform worldwide for over 40 years, UNCITRAL's business is the modernization and
harmonization of rules on international business.
Trade means faster growth, higher living standards, and new opportunities through commerce. In order to increase these
opportunities worldwide, UNCITRAL is formulating modern, fair, and harmonized rules on commercial transactions. These include:
Conventions, model laws and rules which are acceptable worldwide
Legal and legislative guides and recommendations of great practical value
Updated information on case law and enactments of uniform commercial law
Technical assistance in law reform projects
Regional and national seminars on uniform commercial law
- 1958 New York Convention
Objectives
Recognizing the growing importance of international arbitration as a means of settling international commercial disputes, the
Convention on the Recognition 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 contravention of their agreement to refer the matter to an arbitral tribunal.
How to become a party
The Convention is open to accession by any Member State of the United Nations, any other 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).
Case law
newyorkconvention1958.org
Case Law on UNCITRAL Texts (CLOUT)
- How to Settle International Business Dispute
In any business there are two basic methods for dispute settlement - Litigation and arbitration. Litigation is highly suitable due to the
proverbial delayed process, prohibition costs and uncertainty of decision.
But what are the basic Limitations of Litigation? How fast a litigation can be in export import business? Is it easy to educate and
convince on judgments with proper documentary proof? How convenient to both exporter and importer under Litigation in
international business? Will it affect both importer and exporter on their business due to bad image among public? How to effect
trade relationship for both seller and buyer under litigation? Are international laws and procedures simple to handle? Let me discuss
these areas also here:

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Slow Process: As you know, almost all civil process of litigation is slow. Court process proverbially takes huge time consuming and
formalistic.
Avoidable Necessity of Export Witness and other Evidence: In international contracts, practices, procedures and customs are
different. A judge however well versed may be, in law, cannot be expected to know all these intricate matters. So, in courts, to
educate the judge about these practices, witnesses who are experts and having knowledge in the field have to be produced to prove
the practices, even before the evidence is established.
Inconvenience to the Parties: Court timing and date of hearings may not be convenient to litigants. Most of the time, cases are
postponed and in that process months drag on even for completion of one witness. Even after days long waiting for hearing, one
may know, at the end of the day, that the case is adjourned for two months due to non availability of the other advocate!
Adverse Public Image: Court proceedings are never secret. Media always covers the developments in important cases. Even the
superior court judgments are published. Matters, which have been confidential till the case is brought to a court of law, become
topics for public discussion that may bring notoriety, loss of goodwill and long-standing reputation.
Bitterness and Disruption of Trade Relationships: When a matter goes to a court of law, it is immaterial which party may win as the
age old established relationship, after the case is brought to litigation in a court, comes to an end with only acrimony ad bitterness.
Different Laws and Procedures: International trade laws and procedures are more complicated. Litigation in foreign courts is more
expensive and difficult in comparison to the domestic courts.
- Types of Arbitration
There Are Two Types Of Arbitration:
1. Voluntary Arbitration
2. Compulsory Arbitration
Voluntary Arbitration Is A Binding, Adversarial Dispute Resolution Process In Which The Disputing Parties Choose One Or More
Arbitrators To Hear Their Dispute And To Render A Final Decision Or Award After An Expedited Hearing.
Voluntary Arbitration Implies That The Two Contending Parties, Unable To Compromise Their Differences By Themselves Or With
The Help Of Mediator Or Conciliator, Agree To Submit The Conflict/ Dispute To An Impartial Authority, Whose Decisions They Are
Ready To Accept. In Other Words, Under Voluntary Arbitration The Parties To The Dispute Can And Do They Refer Voluntarily And
Dispute To Arbitration Before It Is Referred For Adjudication. This Type Of Reference Is Known As Voluntary Reference, For The
Parties Themselves Volunteer To Come To A Settlement Though An Arbitration Machinery.
The Essential Elements In Voluntary Arbitration Are :
The Voluntary Submission Of Dispute To An Arbitrator.
The Subsequent Attendance Of Witnesses And Investigations.
The Enforcement Of An Award May Not Be Necessary And Binding Because There Is No Compulsion.
Voluntary Arbitration May Be Specially Needed For Disputes Arising Under Agreements.
Compulsory Arbitration Is A Non-Binding, Adversarial Dispute Resolution Process In Which One Or More Arbitrators Hear
Arguments, Weigh Evidence And Issue A Non-Binding Judgment On The Merits After An Expedited Hearing. The Arbitrator's
Decision Addresses Only The Disputed Legal Issues And Applies Legal Standards. Either Party May Reject The Ruling And Request
A Trial De Novo In Court.
Compulsory Arbitration Is One Where The Parties Are Required To Accept Arbitration Without Any Willingness On Their Part. When
One Of The Parties To An Industrial Dispute Feels Aggrieved By An Act Of The Other, It May Apply To The Appropriate Government
To Refer The Dispute To Adjudication Machinery. Such Reference Of A Dispute Is Known As Compulsory Or Involuntary
Reference, Because Reference In Such Circumstances Does Not Depend On The Sweet Will Of Either The Contending Parties Or
Any Party To The Dispute. It Is Entirely The Discretion Of The Appropriate Govt. Based On The Question Of Existing Dispute, Or On
The Apprehension That Industrial Dispute Will Emerge In Particular Establishment.
Under Compulsory Arbitration, The Parties Are Forced To Arbitration By The State When:
The Parties Fail To Arrive At A Settlement By A Voluntary Method
When There Is A National Emergency Which Requires That The Wheels Of Production Should Not Be Obstructed By Frequent
Work-Stoppages
The Country Is Passing Through A Grave Economic Crisis
There Is A Grave Public Dissatisfaction With The Existing Industrial Relations
Public Interest And The Working Conditions Have To Be Safeguarded And Regulated By The State.
Compulsory Arbitration Leaves No Scope For Strikes And Lock-Outs; It Deprives Both The Parties Of Their Very Important And
Fundamental Rights.

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- Arbitral tribunal
An arbitral tribunal is a tribunal constituted for resolving a dispute by way of arbitration. It can consist of either a sole arbitrator or two
or more arbitrators. An arbitral tribunal consisting of two or more arbitrators shall have a chairman or an umpire. The parties to a
dispute are free to decide the composition of the tribunal. They can agree on the number of arbitrators. Where an arbitration clause
of a legal system provides for two or any other even number of arbitrators, then the appointed arbitrators will select an additional
arbitrator as a chairman of the tribunal to avoid deadlock that arises in reaching a decision. Arbitral tribunal is constituted in an ad
hoc arbitration proceedings and institutional arbitration proceedings.
- Arbitration Proceedings
THE LAW GOVERNING THE ARBITRATION PROCEEDINGS
The issue of choosing the law governing the arbitration proceedings depends on the fact whether the arbitration agreement refers a
matter to the permanent arbitration institution or to the ad hoc arbitration.
Basically, if the matter is referred to permanent arbitral institution, proceedings are held in accordance with the rules of said
institution. For example, if the dispute is referred to ICC International Court of Arbitration, the proceeding is governed by their rules.
In ad hoc tribunals, the law governing the arbitration proceedings is determined from the seat of arbitration, meaning that the
governing law in this case is the law of the seat of arbitration. If the parties have not designated the seat of arbitration, the
proceedings are governed by the express choice of law of the merits of the dispute.
- Lex arbitri and the law of the subject matter
The Seat Theory What And Where Is It?
In well-drafted international contracts, the arbitration clauses would state a particular location which would serve as the seat for the
arbitration proceedings. By specifying the seat, this does not mean the physical seat or that the arbitration has to be held here.
Rather, the choice of the seat signifies the adoption of the laws that governs arbitration at the chosen place. This is what is referred
to as the seat theory.
When a particular place is mentioned in the arbitration agreement of parties, what this means is that they are deciding the juridical
seat and lex arbitri. [17] And in Bank Mellat v Helliniki Techniki [18] , Kerr LJ was quoted as saying that our jurisprudence does not
recognise the concept of arbitral procedures floating in the transnational firmament, unconnected with any municipal system of law
rather the legal system offers a shoulder for the arbitration proceedings to lean on.
Furthermore, where parties fail to specify the seat, the court or the arbitral tribunal is empowered to choose for them. Example of
this authority could be found in the ICC Arbitration Rules. [19]
What Is The Significance Of The Lex Arbitri?
The lex loci arbitri is the law of the place where arbitration is to take place and the opportunity of having to apply it to the arbitral
proceeding thus not automatically regulate the entire proceedings of the arbitral tribunal as it mostly permits ample space for the
application of the rules of other legal systems. The scope of its application is basically determined by the lex arbitri. The existence
and the measure of the freedom of the parties in respect of the regulation of the arbitration proceedings are determined by the lex
arbitri which should be taken as the starting point. [20]
Mandatory Rules
The lex arbitri [2] is a set of mandatory rules of law applicable to the arbitration at the seat of the arbitration. [3] It also can be
defined as the juridical seat of arbitration.
Lex arbitri also determines the relationship between the arbitral tribunal and national courts. [4] For instance, what extent court
intervention during the arbitral proceedings is authorized.
International commercial arbitration is presumed to be governed by the law of the place in which it is held. [5] This is the lex arbitri
or the law of the seat of arbitration. But, it includes the principal of party autonomy, which allows the parties to choose the
applicable law. The parties are free to choose rules, which govern their contract. [6] According to Geneva Protocol, the arbitral
procedure, including the constitution of the arbitral tribunal, shall be governed by the will of the parties and by the law of the country
in whose territory the arbitration takes place. [7] This article demonstrates that there is a strong link between the law of the country
where the arbitration takes place and the law governing that arbitration (lex arbitri).
The law of the arbitration agreement (lex arbitri), may be different from the proper law and the procedural law (curial law). Proper
law of the contract governs issues of interpretation, performance, non-performance and liability under the contract and is determined
by using the conflict of law rules. [8] Contracting parties usually insert a clause to determine the proper law to govern the contract.
The lex arbitri is generally different from the proper law of the contract. [9]

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On the other hand, the curial law is the law that governs the procedure of the arbitration. It can be said that, it is the part of the lex
arbitri, [10] because, they are, in most cases, the same as the law of the seat of arbitration. And the parties generally do not
separate them. Curial law is determined by parties choice, if there is no choice, the curial law is the law of the place of
arbitration. [11]

- Award (rendering, recognition, enforcement, etc)

The Special ADR Rules provide that an agreement to refer a dispute to arbitration shall mean that the arbitral award shall be final
and binding. Consequently, a party to an arbitration is generally precluded from filing an appeal or a petition for certiorari questioning
the merits of an arbitral award.
Award in domestic arbitration. In domestic arbitration, the petition for confirmation, correction/modification or vacation of a domestic
arbitral award may be filed with Regional Trial Court having jurisdiction over the place in which one of the parties is doing business,
where any of the parties reside or where arbitration proceedings were conducted.
An arbitral award shall enjoy the presumption that it was made and released in due course of arbitration and is subject to
confirmation by the court. In resolving the petition or petition in opposition thereto in accordance with the Special ADR Rules, the
court shall either confirm or vacate the arbitral award. The court shall not disturb the arbitral tribunal's determination of facts and/or
interpretation of law.
An arbitral award in domestic arbitration may be vacated on the following grounds
a) the arbitral award was procured through corruption, fraud or other undue means;
b) there was evident partiality or corruption in the arbitral tribunal or any of its members; c) 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 a hearing
upon sufficient cause shown or to hear evidence pertinent and material to the controversy;
d) one or more of the arbitrators was disqualified to act as such under the law and willfully refrained from disclosing such
disqualification; or
e) 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 them was not made.
The award may also be vacated on any or all of the following grounds:
a) the arbitration agreement did not exist, or is invalid for any ground for the revocation of a contract or is otherwise unenforceable;
or
b) a party to arbitration is a minor or a person judicially declared to be incompetent.
Award in international commercial arbitration. Any party to an international commercial arbitration in the Philippines may petition the
proper court to recognize and enforce or set aside an arbitral award. An award may be set aside if the party making the application
furnishes proof that:
a) 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 thereof, under Philippine law; or
b) the party making the application to set aside or resist enforcement 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 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 only that part of the award which contains decisions on matters submitted to arbitration
may be enforced; or
d) 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 Philippine law from which the parties cannot derogate, or, failing such agreement,
was not in accordance with Philippine law.
An award may also be set aside if the court 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 public policy.
Recourse to a court against an arbitral award shall be made only through a petition to set aside the arbitral award and on grounds
prescribed by the law that governs international commercial arbitration. Any other recourse from the arbitral award, such as by
appeal or petition for review or petition for certiorari or otherwise, shall be dismissed by the court.
Foreign arbitral award. The recognition and enforcement of foreign arbitral awards, comes within the jurisdiction of the regional trial
court and is governed by the Special ADR Rules. In case of foreign arbitral award, the court shall have no power to set aside the
award, and it has limited grounds upon which to deny recognition and enforcement. The New York Convention provides that [e]ach

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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 uponThere shall not be imposed substantially more onerous conditions or higher fees or
charges on the recognition and enforcement of arbitral awards to which this Convention applies than are imposed on the recognition
or enforcement of domestic arbitral awards. The ADR Act allows for such enforcement.
A Philippine court shall not set aside a foreign arbitral award but may refuse it recognition and enforcement on any or all of the
following grounds:
a) The party making the application to refuse recognition and enforcement of the award furnishes proof that: i. 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 thereof, under the law of the country where the award was made; or ii. 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 iii. 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 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 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 arbitration took place; or 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 that award was made; or
b) The court finds that: i. the subject-matter of the dispute is not capable of settlement or resolution by arbitration under Philippine
law; or ii. the recognition or enforcement of the award would be contrary to public policy.
An appeal to the Court of Appeals through a petition for review is allowed from final orders of the Regional Trial Court
a) granting or denying an interim measure of protection; denying a petition for appointment of an arbitrator;
b) denying a petition for assistance in taking evidence; enjoining or refusing to enjoin a person from divulging confidential
information;
c) confirming, vacating or correcting/modifying a domestic arbitral award; setting aside an international commercial arbitration
award;
d) dismissing the petition to set aside an international commercial arbitration award even if the court does not decide to recognize or
enforce such award;
e) recognizing and/or enforcing an international commercial arbitration award;
f) dismissing a petition to enforce an international commercial arbitration award;
g) recognizing and/or enforcing a foreign arbitral award;
h) refusing recognition and/or enforcement of a foreign arbitral award;
i) granting or dismissing a petition to enforce a deposited mediated settlement agreement; and
j) reversing the ruling of the arbitral tribunal upholding its jurisdiction.
If the decision of the Regional Trial Court refusing to recognize and/or enforce, vacating and/or setting aside an arbitral award is
premised on a finding of fact, the Court of Appeals may inquire only into such fact to determine the existence or non-existence of the
specific ground under the arbitration laws of the Philippines relied upon by the Regional Trial Court to refuse to recognize and/or
enforce, vacate and/or set aside an award. Any such inquiry into a question of fact shall not be resorted to for the purpose of
substituting the court's judgment for that of the arbitral tribunal as regards the latter's ruling on the merits of the controversy.
A review by the Supreme Court is not a matter of right, but of sound judicial discretion, which will be granted only for serious and
compelling reasons resulting in grave prejudice to the aggrieved party.
The following, while neither controlling nor fully measuring the court's discretion, indicate the serious, compelling and necessarily
restrictive nature of the grounds that will warrant the exercise of the Supreme Court's discretionary powers, when the Court of
Appeals:
a) failed to apply the applicable standard or test for judicial review prescribed in the Special ADR Rules in arriving at its decision
resulting in substantial prejudice to the aggrieved party;
b) erred in upholding a final order or decision despite the lack of jurisdiction of the court that rendered such final order or decision;
c) failed to apply any provision, principle, policy or rule contained in the Special ADR Rules resulting in substantial prejudice to the
aggrieved party; and
d) committed an error so egregious and harmful to a party as to amount to an undeniable excess of jurisdiction.
Source: https://ppp.gov.ph/wp-content/uploads/2015/01/Dispute-Resolution-Final-Draft-asof 2013Jan24.pdf

IV. Domestic Dispute Resolutions

- Introduction to Domestic Dispute Resolution
A domestic dispute is generally any quarrel, which may or may not include violence, within a family or between members of the
same household. Definitions are governed by local laws, which vary, and may also cover including any child or an adult or fully
emancipated minor who is a spouse, former spouse, cohabitant, former cohabitant or person with whom a suspect has had a child

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or has or has had a dating or engagement relationship. It may or may not include criminal behavior. Local laws should be consulted
for specific requirements in your area.
In a domestic disturbance an officer has every reason to suspect foul play.[Dean v. State, 2003 Tex. App. LEXIS 10044, 6-7 (Tex.
App. 2003)]
Domestic dispute is also termed as domestic disturbance or family disturbance.

- Arbitration Law (Republic Act No. 876)

Republic Act No. 876
AN ACT TO AUTHORIZE THE MAKING OF ARBITRATION AND SUBMISSION AGREEMENTS, TO PROVIDE FOR THE
APPOINTMENT OF ARBITRATORS AND THE PROCEDURE FOR ARBITRATION IN CIVIL CONTROVERSIES, AND FOR OTHER
PURPOSES
Section 1. Short Title. This Act shall be known as The Arbitration Law.
Section 2. Persons and matters subject to arbitration. Two or more persons or parties may submit to the arbitration of 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 question arising out of valuations, appraisals or other controversies which may be
collateral, incidental, precedent or subsequent to any issue 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 approve 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.
Section 3. Controversies or cases not subject to the provisions of this Act. This Act shall not apply to controversies and to
cases which are subject to the jurisdiction of the Court of Industrial Relations or which have been submitted to it as provided by
Commonwealth Act Numbered One hundred and three, as amended.
Section 4. Form of arbitration agreement. A contract to arbitrate a controversy thereafter arising between the parties, as well as
a submission to arbitrate an existing controversy shall be in writing and subscribed by the party sought to be charged, or by his
lawful agent.
The making of a contract or submission for arbitration described in section two hereof, providing for arbitration of any controversy,
shall be deemed a consent of the parties to the jurisdiction of the Court of First Instance of the province or city where any of the
parties resides, to enforce such contract or submission.
Section 5. Preliminary procedure. An arbitration shall be instituted by:
(a) In the case of a contract to arbitrate future controversies by the service by either party upon the other of a demand for arbitration
in accordance with the contract. Such demand shall be set forth the nature of the controversy, the amount involved, if any, and the
relief sought, together with a true copy of the contract providing for arbitration. The demand shall be served upon any party either in
person or by registered mail. In the event that the contract between the parties provides for the appointment of a single arbitrator,
the demand shall be set forth a specific time within which the parties shall agree upon such arbitrator. If the contract between the
parties provides for the appointment of three arbitrators, one to be selected by each party, the demand shall name the arbitrator
appointed by the party making the demand; and shall require that the party upon whom the demand is made shall within fifteen days
after receipt thereof advise in writing the party making such demand of the name of the person appointed by the second party; such
notice shall require that the two arbitrators so appointed must agree upon the third arbitrator within ten days from the date of such
notice.
(b) In the event that one party defaults in answering the demand, the aggrieved party may file with the Clerk of the Court of First
Instance having jurisdiction over the parties, a copy of the demand for arbitration under the contract to arbitrate, with a notice that
the original demand was sent by registered mail or delivered in person to the party against whom the claim is asserted. Such
demand shall set forth the nature of the controversy, the amount involved, if any, and the relief sought, and shall be accompanied by
a true copy of the contract providing for arbitration.
(c) In the case of the submission of an existing controversy by the filing with the Clerk of the Court of First Instance having
jurisdiction, of the submission agreement, setting forth the nature of the controversy, and the amount involved, if any. Such
submission may be filed by any party and shall be duly executed by both parties.
(d) In the event that one party neglects, fails or refuses to arbitrate under a submission agreement, the aggrieved party shall follow
the procedure prescribed in subparagraphs (a) and (b) of this section.

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Section 6. Hearing by court. A party aggrieved by the failure, neglect or refusal of another to perform under an agreement in
writing providing for arbitration may petition the court for an order directing that such arbitration proceed in the manner provided for
in such agreement. Five days notice in writing of the hearing of such application shall be served either personally or by registered
mail upon the party in default. The court shall hear the parties, and upon being satisfied that the making of the agreement or such
failure to comply therewith is not in issue, shall make an order directing the parties to proceed to arbitration in accordance with the
terms of the agreement. If the making of the agreement or default be in issue the court shall proceed to summarily hear such issue.
If the finding be that no agreement in writing providing for arbitration was made, or that there is no default in the proceeding
thereunder, the proceeding shall be dismissed. If the finding be that a written provision for arbitration was made and there is a
default in proceeding thereunder, an order shall be made summarily directing the parties to proceed with the arbitration in
accordance with the terms thereof.
The court shall decide all motions, petitions or applications filed under the provisions of this Act, within ten days after such motions,
petitions, or applications have been heard by it.
Section 7. Stay of civil action. If any suit or proceeding be brought upon an issue arising out of an agreement providing for the
arbitration thereof, the court in which such suit or proceeding is pending, upon being satisfied that the issue involved in such suit or
proceeding is referable to arbitration, shall stay the action or proceeding until an arbitration has been had in accordance with the
terms of the agreement: Provided, That the applicant, for the stay is not in default in proceeding with such arbitration.
Section 8. Appointment of arbitrators. If, in the contract for arbitration or in the submission described in section two, provision is
made for a method of naming or appointing an arbitrator or arbitrators, such method shall be followed; but if no method be provided
therein the Court of First Instance shall designate an arbitrator or arbitrators.
The Court of First Instance shall appoint an arbitrator or arbitrators, as the case may be, in the following instances:
(a) If the parties to the contract or submission are unable to agree upon a single arbitrator; or
(b) If an arbitrator appointed by the parties is unwilling or unable to serve, and his successor has not been appointed in the manner
in which he was appointed; or
(c) If either party to the contract fails or refuses to name his arbitrator within fifteen days after receipt of the demand for arbitration; or
(d) If the arbitrators appointed by each party to the contract, or appointed by one party to the contract and by the proper Court, shall
fail to agree upon or to select the third arbitrator.
(e) The court shall, in its discretion appoint one or three arbitrators, according to the importance of the controversy involved in any of
the preceding cases in which the agreement is silent as to the number of arbitrators.
(f) Arbitrators appointed under this section shall either accept or decline their appointments within seven days of the receipt of their
appointments. In case of declination or the failure of an arbitrator or arbitrators to duly accept their appointments the parties or the
court, as the case may be, shall proceed to appoint a substitute or substitutes for the arbitrator or arbitrators who decline or failed to
accept his or their appointments.
Section 9. Appointment of additional arbitrators. Where a submission or contract provides that two or more arbitrators therein
designated or to be thereafter appointed by the parties, may select or appoint a person as an additional arbitrator, the selection or
appointment must be in writing. Such additional arbitrator must sit with the original arbitrators upon the hearing.
Section 10. Qualifications of arbitrators. Any person appointed to serve as an arbitrator must be of legal age, in full-enjoyment
of his civil rights and know how to read and write. No person appointed to served 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 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 champion or to advocate his cause.
If, after appointment but before or during hearing, a person appointed to serve as an arbitrator shall discover any circumstances
likely to create a presumption of bias, or which he believes might disqualify him as an impartial arbitrator, the arbitrator shall
immediately disclose such information to the parties. Thereafter the parties may agree in writing:
(a) to waive the presumptive disqualifying circumstances; or
(b) to declare the office of such arbitrator vacant. Any such vacancy shall be filled in the same manner as the original appointment
was made.
Section 11. Challenge of arbitrators. The arbitrators may be challenged only for the reasons mentioned in the preceding section
which may have arisen after the arbitration agreement or were unknown at the time of arbitration.
The challenge shall be made before them.
If they do not yield to the challenge, the challenging party may renew the challenge before the Court of First Instance of the province
or city in which the challenged arbitrator, or, any of them, if there be more than one, resides. While the challenging incident is
discussed before the court, the hearing or arbitration shall be suspended, and it shall be continued immediately after the court has
delivered an order on the challenging incident.
Section 12. Procedure by arbitrators. Subject to the terms of the submission or contract, if any are specified therein, are
arbitrators selected as prescribed herein must, within five days after appointment if the parties to the controversy reside within the
same city or province, or within fifteen days after appointment if the parties reside in different provinces, set a time and place for the

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hearing of the matters submitted to them, and must cause notice thereof to be given to each of the parties. The hearing can be
postponed or adjourned by the arbitrators only by agreement of the parties; otherwise, adjournment may be ordered by the
arbitrators upon their own motion only at the hearing and for good and sufficient cause. No adjournment shall extend the hearing
beyond the day fixed in the submission or contract for rendering the award, unless the time so fixed is extended by the written
agreement of the parties to the submission or contract or their attorneys, or unless the parties have continued with the arbitration
without objection to such adjournment.
The hearing may proceed in the absence of any party who, after due notice, fails to be present at such hearing or fails to obtain an
adjournment thereof. An award shall not be made solely on the default of a party. The arbitrators shall require the other party to
submit such evidence as they may require for making an award.
No one other than a party to said arbitration, or a person in the regular employ of such party duly authorized in writing by said party,
or a practicing attorney-at-law, shall be permitted by the arbitrators to represent before him or them any party to the arbitration. Any
party desiring to be represented by counsel shall notify the other party or parties of such intention at least five days prior to the
hearing.
The arbitrators shall arrange for the taking of a stenographic record of the testimony when such a record is requested by one or
more parties, and when payment of the cost thereof is assumed by such party or parties.
Persons having a direct interest in the controversy which is the subject of arbitration shall have the right to attend any hearing; but
the attendance of any other person shall be at the discretion of the arbitrators.
Section 13. Oath of arbitrators. Before hearing any testimony, arbitrators must be sworn, by any officer authorized by law to
administer an oath, faithfully and fairly to hear and examine the matters in controversy and to make a just award according to the
best of their ability and understanding. Arbitrators shall have the power to administer the oaths to all witnesses requiring them to tell
the whole truth and nothing but the truth in any testimony which they may give in any arbitration hearing. This oath shall be required
of every witness before any of his testimony is heard.
Section 14. Subpoena and subpoena duces tecum. Arbitrators shall have the power to require any person to attend a hearing
as a witness. They shall have the power to subpoena witnesses and documents when the relevancy of the testimony and the
materiality thereof has been demonstrated to the arbitrators. Arbitrators may also require the retirement of any witness during the
testimony of any other witness. All of the arbitrators appointed in any controversy must attend all the hearings in that matter and
hear all the allegations and proofs of the parties; but an award by the majority of them is valid unless the concurrence of all of them
is expressly required in the submission or contract to arbitrate. The arbitrator or arbitrators 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.
Section 15. Hearing by arbitrators. Arbitrators may, at the commencement of the hearing, ask both parties for brief statements of
the issues in controversy and/or an agreed statement of facts. Thereafter the parties may offer such evidence as they desire, and
shall produce such additional evidence as the arbitrators shall require or deem necessary to an understanding and determination of
the dispute. The arbitrators shall be the sole judge of the relevancy and materiality of the evidence offered or produced, and shall
not be bound to conform to the Rules of Court pertaining to evidence. Arbitrators shall receive as exhibits in evidence any document
which the parties may wish to submit and the exhibits shall be properly identified at the time of submission. All exhibits shall remain
in the custody of the Clerk of Court during the course of the arbitration and shall be returned to the parties at the time the award is
made. The arbitrators may make an ocular inspection of any matter or premises which are in dispute, but such inspection shall be
made only in the presence of all parties to the arbitration, unless any party who shall have received notice thereof fails to appear, in
which event such inspection shall be made in the absence of such party.
Section 16. Briefs. At the close of the hearings, the arbitrators shall specifically inquire of all parties whether they have any further
proof or witnesses to present; upon the receipt of a negative reply from all parties, the arbitrators shall declare the hearing closed
unless the parties have signified an intention to file briefs. Then the hearing shall be closed by the arbitrations after the receipt of
briefs and/or reply briefs. Definite time limit for the filing of such briefs must be fixed by the arbitrators at the close of the hearing.
Briefs may filed by the parties within fifteen days after the close of the oral hearings; the reply briefs, if any, shall be filed within five
days following such fifteen-day period.
Section 17. Reopening of hearing. The 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. When hearings are thus reopened the effective date
for the closing of the hearings shall be the date of the closing of the reopened hearing.
Section 18. Proceeding in lieu of hearing. The parties to a submission or contract to arbitrate may, by written agreement, submit
their dispute to arbitration by other than oral hearing. The parties may submit an agreed statement of facts. They may also submit
their respective contentions to the duly appointed arbitrators in writing; this shall include a statement of facts, together with all
documentary proof. Parties may also submit a written argument. Each party shall provide all other parties to the dispute with a copy
of all statements and documents submitted to the arbitrators. Each party shall have an opportunity to reply in writing to any other
partys statements and proofs; but if such party fails to do so within seven days after receipt of such statements and proofs, he shall
be deemed to have waived his right to reply. Upon the delivery to the arbitrators of all statements and documents, together with any
reply statements, the arbitrators shall declare the proceedings in lieu of hearing closed.

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Section 19. Time for rendering award. Unless the parties shall have stipulated by written agreement the time within which the
arbitrators must render their award, the written award of the arbitrators shall be rendered within thirty days after the closing of the
hearings or if the oral hearings shall have been waived, within thirty days after the arbitrators shall have declared such proceedings
in lieu of hearing closed. This period may be extended by mutual consent of the parties.alf-itc
Section 20. Form and contents of award. The award must be made in writing and signed and acknowledged by a majority of the
arbitrators, if more than one; and by the sole arbitrator, if there is only one. Each party shall be furnished with a copy of the award.
The arbitrators in their award may grant any remedy or relief which they deem 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.
In the event that the parties to an arbitration have, during the course of such arbitration, settled their dispute, they may request of
the arbitrators that such settlement be embodied in an award which shall be signed by the arbitrators. No arbitrator shall act as a
mediator in any proceeding in which he is acting as arbitrator; and all negotiations towards settlement of the dispute must take place
without the presence of the arbitrators.
The arbitrators shall have the power to decide only those matters which have been submitted to them. The terms of the award shall
be confined to such disputes.
The arbitrators shall have the power to assess in their award the expenses of any party against another party, when such
assessment shall be deemed necessary.
Section 21. Fees of arbitration. The fees of the arbitrators shall be fifty pesos per day unless the parties agree otherwise in
writing prior to the arbitration.
Section 22. Arbitration deemed a special proceeding. Arbitration under a contract or submission shall be deemed a special
proceeding, of which the court specified in the contract or submission, or if none be specified, the Court of First Instance for the
province or city in which one of the parties resides or is doing business, or in which the arbitration was held, shall have jurisdiction.
Any application to the court, or a judge thereof, hereunder shall be made in manner provided for the making and hearing of motions,
except as otherwise herein expressly provided.
Section 23. Confirmation of award. At any time within one month after the award is made, any party to the controversy which
was arbitrated may apply to the court having jurisdiction, as provided in section twenty-eight, for an order confirming the award; and
thereupon the court must grant such order unless the award is vacated, modified or corrected, as prescribed herein. Notice of such
motion must be served upon the adverse party or his attorney as prescribed by law for the service of such notice upon an attorney in
action in the same court.
Section 24. Grounds for vacating award. In any one of the following cases, the court must make an order vacating the award
upon the petition of any party to the controversy when such party proves affirmatively that in the arbitration proceedings:
(a) The award was procured by corruption, fraud, or other undue means; or
(b) That there was evident partiality or corruption in the arbitrators or any of them; or
(c) That the arbitrators were guilty of misconduct in refusing to postpone the hearing upon sufficient cause shown, or in refusing to
hear evidence pertinent and material to the controversy; that one or more of the arbitrators was disqualified to act as such under
section nine hereof, and wilfully refrained from disclosing such disqualifications or of any other misbehavior by which the rights of
any party have been materially prejudiced; or
(d) That the arbitrators exceeded their powers, or so imperfectly executed them, that a mutual, final and definite award upon the
subject matter submitted to them was not made.
Where an award is vacated, the court, in its discretion, may direct a new hearing either before the same arbitrators or before a new
arbitrator or arbitrators to be chosen in the manner provided in the submission or contract for the selection of the original arbitrator
or arbitrators, and any provision limiting the time in which the arbitrators may make a decision shall be deemed applicable to the
new arbitration and to commence from the date of the courts order.
Where the court vacates an award, costs, not exceeding fifty pesos and disbursements may be awarded to the prevailing party and
the payment thereof may be enforced in like manner as the payment of costs upon the motion in an action.
Section 25. Grounds for modifying or correcting award. In any one of the following cases, the court must make an order
modifying or correcting the award, upon the application of any party to the controversy which was arbitrated:
(a) Where there was an evident miscalculation of figures, or an evident mistake in the description of any person, thing or property
referred to in the award; or
(b) Where the arbitrators have awarded upon a matter not submitted to them, not affecting the merits of the decision upon the matter
submitted; or
(c) Where the award is imperfect in a matter of form not affecting the merits of the controversy, and if it had been a commissioners
report, the defect could have been amended or disregarded by the court.
The order may modify and correct the award so as to effect the intent thereof and promote justice between the parties.
Section 26. Motion to vacate, modify or correct award: when made. Notice of a motion to vacate, modify or correct the award
must be served upon the adverse party or his counsel within thirty days after award is filed or delivered, as prescribed by law for the
service upon an attorney in an action.

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Section 27. Judgment. Upon the granting of an order confirming, modifying or correcting an award, judgment may be entered in
conformity therewith in the court wherein 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.
Section 28. Papers to accompany motion to confirm, modify, correct, or vacate 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 following papers with the Clerk of Court;
(a) The submission, or contract to arbitrate; the appointment of the arbitrator or arbitrators; and each written extension of the time, if
any, within which to make the award.
(b) A verified of the award.
(c) Each notice, affidavit, or other paper used upon the application to confirm, modify, correct or vacate such award, and a copy of
each of the court upon such application.
The judgment shall be docketed as if it were rendered in an action.
The judgment so entered shall have the same force and effect in all respects, as, and be subject to all the provisions relating to, a
judgment in an action; and it may be enforced as if it had been rendered in the court in which it is entered.
Section 29. Appeals. An appeal may be taken from an order made in a proceeding under this Act, or from a judgment entered
upon an award through certiorari proceedings, but such appeals shall be limited to questions of law. The proceedings upon such an
appeal, including the judgment thereon shall be governed by the Rules of Court in so far as they are applicable.
Section 30. Death of party. Where a party dies after making a submission or a contract to arbitrate as prescribed in this Act, the
proceedings may be begun or continued upon the application of, or notice to, his executor or administrator, or temporary
administrator of his estate. In any such case, the court may issue an order extending the time within which notice of a motion to
confirm, vacate, modify or correct an award must be served. Upon confirming 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.
Section 31. Repealing clause. The provisions of chapters one and two, Title XIV, of the Civil Code shall remain in force. All other
laws and parts of laws inconsistent with this Act are hereby repealed. If any provision of this Act shall be held invalid the remainder
that shall not be affected thereby.
Section 32. Effectivity. This Act shall take effect six months after its approval.
Approved: June 19, 1953

- Alternative Dispute Resolution Act of 2004 (Republic Act No. 9285)

Republic of the Philippines
Congress of the Philippines
Metro Manila
Twelfth Congress
Third Regular Session
Begun and held in Metro Manila, on Monday, the twenty-eight day of July, two thousand three.
Republic Act No. 9285

April 2, 2004

AN ACT TO INSTITUTIONALIZE THE USE OF AN ALTERNATIVE DISPUTE RESOLUTION SYSTEM IN THE PHILIPPINES AND
TO ESTABLISH THE OFFICE FOR ALTERNATIVE DISPUTE RESOLUTION, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
CHAPTER 1 GENERAL PROVISIONS
SECTION 1. Title. This act shall be known as the Alternative Dispute Resolution Act of 2004.
SEC. 2. Declaration of Policy. it is hereby declared the policy of the State to actively promote party autonomy in the resolution of
disputes or the freedom of the party to make 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 means to achieve speedy and
impartial justice and declog court dockets. As such, the State shall provide means for the use of ADR as an efficient tool and an
alternative procedure for the resolution of appropriate cases. Likewise, the State shall enlist active private sector participation in the
settlement of disputes through ADR. This Act shall be without prejudice to the adoption by the Supreme Court of any ADR system,
such as mediation, conciliation, arbitration, or any combination thereof as a means of achieving speedy and efficient means of
resolving cases pending before all courts in the Philippines which shall be governed by such rules as the Supreme Court may
approve from time to time.

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SEC. 3. Definition of Terms. For purposes of this Act, the 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 accredited as mediator, conciliator, arbitrator, neutral evaluator, or any person
exercising similar functions in any Alternative Dispute Resolution system. This is without prejudice to the rights of the parties to
choose nonaccredited individuals to act as mediator, conciliator, arbitrator, or neutral evaluator of their dispute.
Whenever reffered to in this Act, the term ADR practitioners shall refer to individuals acting as mediator, conciliator, arbitrator or
neutral evaluator;
(c) Authenticate means to sign, execute or adopt a symbol, or encrypt a record in whole or in part, intended to identity the
authenticating party and to adopt, accept or establish the authenticity of a record or term;
(d) Arbitration means a voluntary dispute resolution process in which one or more arbitrators, appointed in accordance with the
agreement of the parties, or rules promulgated pursuant to this Act, resolve a dispute by rendering an award;
(e) Arbitrator means the person appointed to render an award, alone or with others, in a dispute that is the subject of an arbitration
agreement;
(f) Award means any partial or final decision by an arbitrator in resolving the issue in a controversy;
(g) Commercial Arbitration An arbitration is commercial if it covers matter arising from all relationships of a commercial nature,
whether contractual or not;
(h) 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 (1) communication, oral or written, made in a dispute resolution proceedings,
including any memoranda, notes or work product of the neutral party or non-party participant, as defined in this Act; (2) an oral or
written statement made or which occurs during mediation or for purposes of considering, conducting, participating, initiating,
continuing of reconvening mediation or retaining a mediator; and (3) pleadings, motions manifestations, witness statements, reports
filed or submitted in an arbitration or for expert evaluation;
(i) Convention Award means a foreign arbitral award made in a Convention State;
(j) Convention State means a State that is a member of the New York Convention;
(k) Court as referred to in Article 6 of the Model Law shall mean a Regional Trial Court;
(l) Court-Annexed Mediation means any mediation process conducted under the auspices of the court, after such court has
acquired jurisdiction of the dispute;
(m) Court-Referred Mediation means mediation ordered by a court to be conducted in accordance with the Agreement of the
Parties when as action is prematurely commenced in violation of such agreement;
(n) Early Neutral Evaluation means an ADR process wherein parties and their lawyers are brought together early in a pre-trial
phase to present summaries of their cases and receive a nonbinding assessment by an experienced, neutral person, with expertise
in the subject in the substance of the dispute;
(o) Government Agency means any government entity, office or officer, other than a court, that is vested by law with quasi-judicial
power to resolve or adjudicate dispute involving the government, its agencies and instrumentalities, or private persons;
(p) International Party shall mean an entity whose place of business is outside the Philippines. It shall not include a domestic
subsidiary of such international party or a coventurer in a joint venture with a party which has its place of business in the Philippines.
The term foreigner arbitrator shall mean a person who is not a national of the Philippines.
(q) Mediation means a voluntary process in which a mediator, selected by the disputing parties, facilitates communication and
negotiation, and assist the parties in reaching a voluntary agreement regarding a dispute.
(r) Mediator means a person who conducts mediation;
(s) Mediation Party means a person who participates in a mediation and whose consent is necessary to resolve the dispute;
(t) Mediation-Arbitration or Med-Arb is a step dispute resolution process involving both mediation and arbitration;
(u) Mini-Trial means a structured dispute resolution method in which the merits of a case are argued before a panel comprising
senior decision makers with or without the presence of a neutral third person after which the parties seek a negotiated settlement;
(v) Model Law means the Model Law on International Commercial Arbitration adopted by the United Nations Commission on
International Trade Law on 21 June 1985;
(w) 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;
(x) Non-Convention Award means a foreign arbitral award made in a State which is not a Convention State;
(y) Non-Convention State means a State that is not a member of the New York Convention.
(z) 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;
(aa) Proceeding means a judicial, administrative, or other adjudicative process, including related pre-hearing motions, conferences
and discovery;
(bb) Record means an information written on a tangible medium or stored in an electronic or other similar medium, retrievable
form; and
(cc) Roster means a list of persons qualified to provide ADR services as neutrals or to serve as arbitrators.

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SEC. 4. Electronic Signatures in Global and E-Commerce Act. The provisions of the Electronic Signatures in Global and ECommerce Act, and its implementing Rules and Regulations shall apply to proceeding contemplated in this Act.
SEC. 5. Liability of ADR Provider and Practitioner. The ADR providers and practitioners shall have the same civil liability for the
Acts done in the performance of then duties as that of public officers as provided in Section 38 (1), Chapter 9, Book of the
Administrative Code of 1987.
SEC. 6. Exception to the Application of this Act. The provisions of this Act shall not apply to 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 a marriage; (d) any ground
for legal separation; (e) the jurisdiction of courts; (f) future legitime; (g) criminal liability; and (h) those which by law cannot be
compromised.
CHAPTER 2 MEDIATION
SEC. 7. Scope. The provisions of this Chapter shall cover voluntary mediation, whether ad hoc or institutional, other than courtannexed. The term mediation shall include conciliation.
SEC. 8. Application and Interpretation. In applying construing the provisions of this Chapter, consideration must be given to the
need to promote candor or parties and mediators through confidentiality of the mediation process, the policy of fostering prompt,
economical, and amicable resolution of disputes in accordance with the principles of integrity of determination by the parties, and
the policy that the decision-making authority in the mediation process rests with the parties.
SEC. 9. 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, a mediator, or a nonparty participant may refuse to disclose and may prevent any other person from disclosing a
mediation communication.
(c) Confidential Information shall not be subject to discovery and shall be inadmissible if 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 mediation: (1) the parties to the dispute; (2) the mediator or mediators; (3) the
counsel for the parties; (4) the nonparty participants; (5) any persons hired or engaged in connection with the mediation as
secretary, stenographer, clerk or assistant; and (6) any other person who obtains or possesses confidential information by reason of
his/her profession.
(e) The protections of this Act shall continue to apply even of a mediator is found to have failed to act impartially.
(f) a mediator may not be called to testify to provide information gathered in mediation. A mediator who is wrongfully subpoenaed
shall be reimbursed the full cost of his attorneys fees and related expenses.
SEC. 10. Waiver of Confidentiality. 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.
A privilege arising from the confidentiality of information may likewise be waived by a nonparty participant if the information is
provided by such nonparty participant.
A person who discloses confidential information shall be precluded from asserting the privilege under Section 9 of this Chapter 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 damages in a judicial proceeding against the person who made the disclosure.
A person who discloses or makes a representation about a mediation is preclude from asserting the privilege under Section 9, 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 of disclosure.
SEC. 11. Exceptions to Privilege.
(a) There is no privilege against disclosure under Section 9 if mediation communication is:
(1) in an agreement evidenced by a record authenticated by all parties to the agreement;
(2) available to the public or that is made during a session of a mediation which is open, or is required by law to be open, to the
public;
(3) a threat or statement of a plan to inflict bodily injury or commit a crime of violence;
(4) internationally used to plan a crime, attempt to commit, or commit a crime, or conceal an ongoing crime or criminal activity;
(5) 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 a public agency participates in the child protection mediation;
(6) sought or offered to prove or disprove a claim or complaint of professional misconduct or malpractice filed against mediator in a
proceeding; or

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(7) sought or offered to prove or disprove a claim of complaint of professional misconduct of malpractice filed against a party,
nonparty participant, or representative of a party based on conduct occurring during a mediation.
(b) There is no privilege under Section 9 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:
(1) a court proceeding involving a crime or felony; or
(2) 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 subsection (a) or (b), only the portion of the communication
necessary for the application of the exception for nondisclosure may be admitted. The admission of particular evidence for the
limited purpose of an exception does not render that evidence, or any other mediation communication, admissible for any other
purpose.
SEC. 12. Prohibited Mediator Reports. 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 make a ruling on a dispute that is the subject
of a mediation, except:
(a) Where the mediation occurred or has terminated, or where a settlement was reached.
(b) As permitted to be disclosed under Section 13 of this Chapter.
SEC. 13. Mediators Disclosure and Conflict of Interest. The mediation shall be guided by the following operative principles:
(a) Before accepting a mediation, an individual who is requested to serve as a mediator shall:
(1) make an inquiry that is reasonable under the circumstances to determinate 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
(2) disclosure to the mediation parties any such fact known or learned as soon as is practical before accepting a mediation.
(b) If a mediation learns any fact described in paragraph (a) (1) of this section after accepting a mediation, the mediator shall
disclose it as soon as practicable.
At the request of a mediation party, an individual who is requested to serve as mediator shall disclose his/her qualifications to
mediate a dispute.
This Act does not require 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.
SEC. 14. Participation in Mediation. Except as otherwise provided in this Act, a party may designate a lawyer or any other
person to provide assistance in the mediation. A lawyer 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.
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 to all parties.
SEC. 16. Effect of Agreement to Submit Dispute to Mediation Under Institutional Rules. An agreement to submit a dispute to
mediation by any 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 international mediation rule 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 counsel, and
nonparty participants to abide by such rules.
In case of conflict between the institutional mediation rules and the provisions of this Act, the latter shall prevail.
SEC. 17. Enforcement of Mediated Settlement Agreement. 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
counsel, if any, and by the mediator.
The parties and their respective counsels shall endeavor to make the terms and condition thereof complete and 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 so desire, they may deposit such settlement agreement with the appropriate Clerk of a Regional Trial Court of the
place where one of the parties resides. 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 such rules
of procedure as may be promulgated by the Supreme Court.
(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 for mediated dispute outside of the CIAC.
CHAPTER 3 OTHER ADR FORMS

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SEC. 18. Referral of Dispute to other ADR Forms. The parties may agree to refer one or more or all issues arising in a dispute
or during its pendency to other forms of ADR such as but not limited to (a) the evaluation of a third person or (b) a mini-trial, (c)
mediation-arbitration, or a combination thereof.
For purposes of this Act, the use of other ADR forms shall be governed by Chapter 2 of this Act except where it is combined with
arbitration in which case it shall likewise be governed by Chapter 5 of this Act.
CHAPTER 4 INTERNATIONAL COMMERCIAL ARBITRATION
SEC. 19. Adoption of the Model Law on International Commercial Arbitration. International commercial arbitration shall be
governed by the Model Law on International Commercial Arbitration (the Model Law) adopted by the United Nations Commission
on International Trade Law on June 21, 1985 (United Nations Document A/40/17) and recommended approved on December 11,
1985, copy of which is hereto attached as Appendix A.
SEC. 20. Interpretation of Model Law. In interpreting the Model Law, regard shall be had to its international origin and to the
need for uniformity in its interpretation and resort may be made to the travaux preparatories and the report of the Secretary General
of the United Nations Commission on International Trade Law dated March 25, 1985 entitled, International Commercial Arbitration:
Analytical Commentary on Draft Trade identified by reference number A/CN. 9/264.
SEC. 21. Commercial Arbitration. An arbitration is commercial if it covers matters arising from all relationships of a commercial
nature, whether contractual or not. Relationships of a 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.
SEC. 22. Legal Representation in International Arbitration. In international arbitration conducted in the Philippines, a party may
be presented by any person of his 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 appears.
SEC. 23. Confidential of Arbitration Proceedings. The arbitration proceedings, including the records, evidence and the arbitral
award, shall be considered 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 of 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.
SEC. 24. Referral to Arbitration. A court before which an action is brought in a matter which is the subject matter of an arbitration
agreement shall, if at least one party so requests not later that 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.
SEC. 25. Interpretation of the Act. In interpreting the Act, the court shall have due regard to the policy of the law in favor of
arbitration. Where action is commenced by or against multiple parties, one or more of whom are 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.
SEC. 26. Meaning of Appointing Authority.. 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 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 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 duly authorized representative.
SEC. 27. What Functions May be Performed by Appointing Authority. The functions referred to in Articles 11(3), 11(4), 13(3)
and 14(1) of the Model Law 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.
SEC. 28. Grant of Interim Measure of Protection.
(a) It is not incompatible with an arbitration agreement for a party to request, before constitution of the tribunal, from a Court an
interim measure of protection and for the Court to grant such measure. After 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. 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 request.

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

(1) Any party may request that provision relief be granted against the adverse party:
(2) Such relief may be granted:
(i) to prevent irreparable loss or injury:
(ii) to provide security for the performance of any obligation;
(iii) to produce or preserve any evidence; or
(iv) to compel any other appropriate act or omission.
(3) The order granting provisional relief may be conditioned upon the provision of security or any act or omission specified in the
order.
(4) Interim or provisional relief is requested by written application transmitted by reasonable means to the Court or arbitral tribunal
as the case may be and the party against whom the relief is sought, describing in appropriate detail the precise relief, the party
against whom the relief is requested, the grounds for the relief, and evidence supporting the request.
(5) The order shall be binding upon the parties.
(6) Either party may apply with the Court for assistance in Implementing or enforcing an interim measure ordered by an arbitral
tribunal.
(7) A party who does not comply with the order shall be liable for all damages resulting from noncompliance, including all expenses,
and reasonable attorneys fees, paid in obtaining the orders judicial enforcement.
SEC. 29. Further Authority for Arbitrator to Grant Interim Measure of Protection. 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 Section 28, paragraph 2. Such interim
measures may include but shall not be limited to preliminary injuction 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 measures ordered by an arbitral tribunal.
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 arbitral tribunal, having regard to the circumstances of the case, including the
convenience of the parties shall decide on a different place of arbitration.
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.
SEC. 31. Language of the Arbitration. 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 in international arbitration, and English or Filipino for
domestic arbitration, unless the arbitral tribunal shall determine a different or another 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.
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 in accordance with paragraph 1 of this section.
CHAPTER 5 DOMESTIC ARBITRATION
SEC. 32. Law Governing Domestic Arbitration. Domestic arbitration shall continue to be governed by Republic Act No. 876,
otherwise known as The Arbitration Law as amended by this Chapter. The term domestic arbitration as used herein shall mean
an arbitration that is not international as defined in Article (3) of the Model Law.
SEC. 33. Applicability to Domestic Arbitration. Article 8, 10, 11, 12, 13, 14, 18 and 19 and 29 to 32 of the Model Law and
Section 22 to 31 of the preceding Chapter 4 shall apply to domestic arbitration.
CHAPTER 6 ARBITRATION OF CONSTRUCTION DISPUTES
SEC. 34. Arbitration of Construction Disputes: Governing Law. The arbitration of construction disputes shall be governed by
Executive Order No. 1008, otherwise known as the Constitution Industry Arbitration Law.
SEC. 35. Coverage of the Law. Construction disputes which fall within the original and exclusive jurisdiction of the Construction
Industry Arbitration Commission (the Commission) shall include those between or among parties to, or who are otherwise bound
by, an arbitration agreement, directly or by reference whether such parties are project owner, contractor, subcontractor, quantity
surveyor, bondsman or issuer of an insurance policy in a construction project.
The Commission shall continue to exercise original and exclusive jurisdiction over construction disputes although the arbitration is
commercial pursuant to Section 21 of this Act.
SEC. 36. Authority to Act as Mediator or Arbitrator. By written agreement of the parties to a dispute, an arbitrator may act as
mediator and a mediator may act as arbitrator. The parties may also agree in writing that, following a successful mediation, the
mediator shall issue the settlement agreement in the form of an arbitral award.

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SEC. 37. Appointment of Foreign Arbitrator. The Construction Industry Arbitration Commission (CIAC) shall promulgate rules to
allow for the appointment of a foreign arbitrator or coarbitrator or chairman of a tribunal a person who has not been previously
accredited by CIAC: Provided, That:
(a) the dispute is a construction dispute in which one party is an international party
(b) the person to be appointed agreed to abide by the arbitration rules and policies of CIAC;
(c) he/she is either coarbitrator upon the nomination of the international party; or he/she is the common choice of the two CIACaccredited arbitrators first appointed one of whom was nominated by the international party; and
(d) the foreign arbitrator shall be of different nationality from the international party.
SEC. 38. Applicability to Construction Arbitration. The provisions of Sections 17 (d) of Chapter 2, and Section 28 and 29 of
this Act shall apply to arbitration of construction disputes covered by this Chapter.
SEC. 39. Court to Dismiss Case Involving a Construction Dispute. A regional trial court which a construction dispute is filed
shall, upon becoming aware, not later than the pretrial conference, that the parties had entered into an arbitration to be conducted
by the CIAC, unless both parties, assisted by their respective counsel, shall submit to the regional trial court a written agreement
exclusive for the Court, rather than the CIAC, to resolve the dispute.
CHAPTER 7 JUDICIAL REVIEW OF ARBITRAL AWARDS
A. DOMESTIC AWARDS
SEC. 40. Confirmation of Award. The confirmation of a domestic arbitral award shall be governed by Section 23 of R.A. 876.
A domestic arbitral award when confirmed shall be enforced in the same manner as final and executory decisions of the Regional
Trial Court.
The confirmation of a domestic award shall be made by the regional trial court in accordance with the Rules of Procedure to be
promulgated by the Supreme Court.
A CIAC arbitral award need not be confirmed by the regional trial court to be executory as provided under E.O. No. 1008.
SEC. 41. Vacation Award. A party to a domestic arbitration may question the arbitral award with the appropriate regional trial
court in accordance with the rules of procedure to be promulgated by the Supreme Court only on those grounds enumerated in
Section 25 of Republic Act No. 876. Any other ground raised against a domestic arbitral award shall be disregarded by the regional
trial court.
B. FOREIGN ARBITRAL AWARDS
SEC. 42. Application of the New York Convention. The New York Convention shall govern the recognition and enforcement of
arbitral awards covered by the said Convention.
The recognition and enforcement of such arbitral awards shall be filled with regional trial court in accordance with the rules of
procedure to be promulgated by the Supreme Court. Said procedural rules shall provide that the party relying on the award or
applying for its enforcement shall file with the court the original or authenticated copy of the award and the arbitration agreement. If
the award or agreement is not made in any of the official languages, the party shall supply a duly certified translation thereof into
any of such languages.
The applicant shall establish that the country in which foreign arbitration award was made is a party to the New York Convention.
If the application for rejection or suspension of enforcement of an award has been made, the regional trial court may, if it considers it
proper, vacate its decision and may also, on the application of the party claiming recognition or enforcement of the award, order the
party to provide appropriate security.
SEC. 43. Recognition and Enforcement of Foreign Arbitral Awards Not Covered by the New York Convention. 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, grounds of comity and reciprocity, recognize and enforce
a nonconvention award as a convention award.
SEC. 44. Foreign Arbitral Award Not Foreign Judgment. 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 a judgment of a foreign court.
A foreign arbitral award, when confirmed by the regional trial court, shall be enforced as a foreign arbitral award and not as a
judgment of a foreign court.
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.
SEC. 45. Rejection of a Foreign Arbitral Award. A party to a foreign arbitration proceeding may oppose an application for
recognition and enforcement of the arbitral award in accordance with the procedural rules to be promulgated by the Supreme Court
only on those grounds enumerated under Article V of the New York Convention. Any other ground raised shall be disregarded by the
regional trial court.

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SEC. 46. Appeal from Court Decisions on Arbitral Awards. A decision of the regional trial court confirming, vacating, setting
aside, modifying or correcting 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 confirming an arbitral award shall required by the appealant court to
post counterbond executed in favor of the prevailing party equal to the amount of the award in accordance with the rules to be
promulgated by the Supreme Court.
SEC. 47. Venue and Jurisdiction. Proceedings for recognition and enforcement of an arbitration agreement or for vacation,
setting aside, correction or modification of an arbitral award, and any application with a court for arbitration assistance and
supervision shall be deemed as special 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 is located; (iii) where any of the parties to
the dispute resides or has his place of business; or (iv) in the National Judicial Capital Region, at the option of the applicant.
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 address of record in the arbitration, or if any party cannot be served notice at such
address, at such partys last known address. The notice shall be sent at least fifteen (15) days before the date set for the initial
hearing of the application.
CHAPTER 8 MISCELLANEOUS PROVISIONS
SEC. 49. Office for Alternative Dispute Resolution. There is hereby established the Office for Alternative Dispute Resolution as
an attached agency to the Department of Justice (DOJ) which shall have a Secretariat to be headed by an executive director. The
executive director shall be appointed by the President of the Philippines.
The objective of the office are:
(a) to promote, develop and expand the use of ADR in the private and public sectors; and
To assist the government to monitor, study and evaluate the use by the public and the private sector of ADR, and recommend to
Congress needful statutory changes to develop. Strengthen and improve ADR practices in accordance with world standards.
SEC. 50. Powers and Functions of the Office for Alternative Dispute Resolution. The Office for Alternative Dispute Resolution
shall have the following powers and functions:
(a) To formulate standards for the training of the ADR practitioners and service providers;
(b) To certify that such ADR practitioners and ADR service providers have undergone the professional training provided by the office;
(c) To coordinate the development, implementation, monitoring, and evaluation of government ADR programs;
(d) To charge fees for their services; and
(e) To perform such acts as may be necessary to carry into effect the provisions of this Act.
SEC. 51. Appropriations. The amount necessary to carry out the provisions of this Act shall be included in the General
Appropriations Act of the year following its enactment into law and thereafter.
SEC. 52. Implementing Rules and Regulations (IRR). Within one (1) month after the approval of this Act, the secretary of justice
shall convene a committee that shall formulate the appropriate rules and regulations necessary for the implementation of this Act.
The committee, composed of representatives from:
(a) the Department of Justice;
(b) the Department of Trade and Industry;
(c) the Department of the Interior and Local Government;
(d) the president of the Integrated Bar of the Philippines;
(e) A representative from the arbitration profession; and
(f) A representative from the mediation profession; and
(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.

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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
President of the Senate

JOSE DE VENECIA JR.

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.
ROBERTO P. NAZARENO
Secretary General
House of Represenatives

OSCAR G. YABES
Secretary of Senate

Approved: April 2, 2004

GLORIA MACAPAGAL-ARROYO
President of the Philippines
- DOJ department Circular No. 98 s 2009 (Implementing Rules and Regulations of Alternative Dispute Resolution Act of
2004)

Depar tmen t Cir cular No. 98 Implemen tin g Rule s and Regulations of the Alternative Di spute Resolu tion Act of
2004

Republika ng Pilipinas
KAGAWARAN NG KATARUNGAN
DEPARTMENT OF JUSTICE
Manila
DEPARTMENT CIRCULAR NO. 98
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 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:

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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 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 a 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 legitimate;

(g) criminal liability;

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

(i) disputes referred to court-annexed mediation.

Article 1.4. Electronic Signature and E-Commerce Act. The provisions of the Electronic Signature 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 provides /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 1 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 procedures 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 neutral third
person participates to assist in the resolution of issues, Including arbitration, mediation, conciliation, early neutral evaluation, minitrial 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 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 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 disclosed, or obtained under circumstances that would create 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;

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(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 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 on International Commercial Arbitration adopted by the United Nations Commission on
International Trade Law on 21 June 1985.
12. Proceedings means 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 and Applicable to the Chapter Mediation
1. Ad hoc Mediation means any mediation other than institutional or court-annexed.
2. Institutional Mediation means any mediation process conducted under the rules of a mediation institution.
3. Court-Annexed Mediation means 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 party 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.

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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 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 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;

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(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 of 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 ward 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 arbitration administered by an arbitrator and/or the parties themselves. An arbitration administered by
an institution shall be regarded as 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 arbitration that is not international as defined in Article 1(3) of the Mode 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

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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 regulation, jurisprudence, books, articles and other
information about ADR in the Philippines and elsewhere may be stored and accessed;

(d) To establish 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 for services rendered such as, among others, for training and certifications of ADR providers;

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(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

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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
training 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 courtannexed mediation and only in default of an agreement of the parties on the applicable rules.

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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 mediator. The parties may request the OADR to
provide them with a list or roster or the resumes 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 mediator 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 mediators impartially 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;

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(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 discussion 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 shall :
(a) maintain the 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 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 Impartially. 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 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 of foreseeable participant in the mediation; and

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(ii) disclose to the mediation parties any such fact known or learned as soon as practical before accepting a mediation.

(b) If a mediator learns any fact described in paragraph (a) 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 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 proceeding 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, the mediation
proceedings for any reason, a mediator may either:

(i) limit the scope of the mediation proceedings in a manner consistent with the partys 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
implication of any proposal; and

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(ii) suggest that the parties seek independent legal and/or technical advice before a settlement agreement is signed.

(c) without the consent of al 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 mediatorcle 3.12 Promotion of Respect and Control of
Abuse of Process. of the settle mentcost ablish a professional relationship I 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 mediators 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 the 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 clients
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:

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(i) The mediation process as essentially a negotiation between the parties assisted by their respective lawyers, and facilitated by a
mediator, stressing it its difference from litigation, its advantages and benefits, the clients 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 clients real interests and
needs.

(bb) The study of other partys 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 alternative 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.
That 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

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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 mediators qualifications and abilities during
the entire mediation process.
(b) The mediator shall held the parties reach a satisfactory resolution to 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 maybe represented by an agent who
must have full authority to negotiate and settle the dispute.

(d) The mediation process shall, in general, consists 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. Person, other than the parties, their representatives and 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

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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 Agreement

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 provision 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/ties 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
know as The Arbitration Law, notwithstanding the provisions of Executive Order No. 1008, s. 1985, other wise known as the
Construction Industry Arbitration Law for mediated disputes outside the Construction Industry Arbitration Commission.

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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
disclosed 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 attorneys 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.

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(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 disapprove 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 confidentially, and the mediation communication is sought or offered in:

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

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(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 (Exception 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, mediators fees and associated expenses, if
any. In default of agreement of the parties as to the amount and manner of payment of mediations 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;

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(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.

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(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 addressees 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. Any 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.

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(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 Articles 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, 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 contracts is 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 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 measure of
protection, or modification thereof as provided for, and in the manner indicated in , Article 4.17 (Power of Tribunal to Order Interim
Measures ), may be made with the court.

The rules of 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.

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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 produced 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 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 any 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 days (30) days of their 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 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 immediate 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

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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 the Rules of Court of 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 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
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 circumstances 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 challenged arbitrator withdraws from his/her office or the
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 the 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 for
motion for reconsideration or appeal.

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(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 for 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, 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 the 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
contribute 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 the party, order any party to take such interim measures of protection as the arbitral tribunal may
consider necessary in respect of the subject to 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.

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(b) After constitution of the arbitral tribunal, and during arbitral proceeding, 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 the interim or provisional relief shall be observed:

(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

(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 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 granting or denying an application for the 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 attorneys fees, paid in obtaining the orders judicial enforcement.

RULE 5 Conduct of Arbitral Proceedings

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

Article 4.19. Determination of the 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) Falling 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 Assemble 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.

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(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 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 goods, other property or documents.

(c) All statements, documents or other information supplied to the arbitral 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
claimants allegations.
(c) any partys 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.

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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 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 other 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.

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(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 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 termination of the arbitral proceedings subject to the provisions of Articles 4.33
(Correction and Interpretation of Award, Additional Award) and paragraph (d) of Articles 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
quantity 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, it 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.

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(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) day 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 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. Aplication for Setting Aside an Exclusive Recourse against Arbitral Award.
(a) Recourse to a court against an arbitral award may be made only by 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 failing 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

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(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, falling 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 resume the arbitral proceedings
or take such other action as in the arbitral tribunals 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 filled with the Regional trial Court In accordance
with 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.

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(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.

(f) 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 provoked, only if the party furnishes to the Regional Trial Court proof that:

(a) The parties to the arbitration agreement are, 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 in able to present his case; or

(c) the award deals with dispute not contemplated by or not failing 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 too place; or

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(e) the award has not 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 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 paragraph (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 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.

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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 if 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 tribunals 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 partys 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 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. Confidentially of Arbitration Proceedings. The arbitration proceedings, including the records, evidence and the arbitral
award, shall be considered confidential and shall not be poolside 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.

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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 proceedings 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 judgement 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;

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(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;

(v1) 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.

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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.

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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 addressees 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 recipients
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.

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(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.

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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 grating 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 attorneys fees, paid in obtaining the orders judicial enforcement.

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(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

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(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 latters 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 arbitrators
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

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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 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 arbitrators fees where there is an agreement between the parties with respect thereto.

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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 latters curriculum vitae, and the latters 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 arbitrators 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;

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(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 circumstances
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 filed 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 in 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

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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 partys 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.

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(n) 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.

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(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
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 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 in existent, 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 filling 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 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 arbitration.

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(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 filling 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 the 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.

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(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 attorneys fee paid in obtaining the orders judicial enforcement.

RULE 5 Conduct of Arbitral Proceedings

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

Article 5.18 Determination of Rules of Procedure. (a) Subjected 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,
materially 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 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;

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(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, 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
latters 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 required 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 respondents arbitrator and attach to the notice the arbitrators
curriculum vitae and the latters 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 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 Statement 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 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.

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(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 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 subpoena or 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 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;

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(ix) The possibility of either party applying for an order granting interim relief either with 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 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 through a representative, at such hearing.

(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 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

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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 partys 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 authorized its chairman to issue or release, on behalf of the arbitral tribunal, its decision on interlocutory matters.

(r) Except as provide in section 17 (d) of the ADR Act. No arbitrator shall act as a mediator in a any proceeding in which he/she is
acting as arbitrator even if requested by the parties; and all negotiations.

(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 make a just award
according to the best his/her ability and understanding. A copy of the arbitrators oath or affirmation shall be furnished each party to
the arbitration.

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(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 required 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 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 Muslim. ( a ) unless otherwise agreed by the parties, the arbitral tribunal may,
at the request of a party and in accordance with the 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 of 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

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(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 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 attorneys fees, paid in obtaining the orders judicial enforcement.

(d) The arbitral tribunal shall be 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 an/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 causes.
(a) the claimant fails to communicate his/her/its statement of claim in accordance with paragraph (a) of Article 5.22(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) 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 claimants 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

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(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 request 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 provision 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.

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Article 5.29. Decision Making by the Arbitral Tribunal. (a) The 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 all 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, 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 us stated.
(b) The award shall state the reasons upon which is based, unless the parties have agreed that no reasons are to be given or the
award on agreed terms, consent award based on compromise under Article 5.30 (Settlement).

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

(d) After the award is made, a copy signed by the arbitrators in accordance with the 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 on writing by the parties. If despite such requirement, the arbitral tribunal shall fail to do as required, the parties may, within
thirty days from the 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 or 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:

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(i) The claimant withdraws his claim, unless the respondents objects thereto for the purpose of prosecuting his counterclaims in the
same proceedings of 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 before 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) and Article 5.34 (Application for Settings Aside in Exclusive Recourse Against the
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 with the arbitral tribunal. The arbitral tribunal, by releasing its final award, loses jurisdiction over the
dispute and the parties to the arbitral tribunal, by releasing its final award, loses jurisdiction over the dispute and the parties to the
arbitration. However, where is shown that the arbitral tribunal failed to resolved an issue. Submitted to him or 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 reason, reserved in the final award in order a hearing to
quantity costs and determine which party shall bear the costs or apportionment thereof as may be determined to be a equitable.
Pending determination of this issue, the award shall not be deemed final for purposes of appeal, vacations, correction, or any postaward 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 awards any errors in computation, any clerical or
typographical errors or any errors similar nature

(ii) If so agreed by the parties, 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 connection or give the interpretation within thirty (30)
days from receipt of the request. The interpretation shall form part of the award.

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(b) The arbitral tribunal may correct any errors 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 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 tribunals 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 partially 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.

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(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
courts 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 the 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 filled 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 is 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;

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(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 partys last known address. The notice shall be sent in 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 such
appearance is in relation to the arbitration in which he/she appears.
(b) No arbitrator shall act as mediator in any proceeding in which he/she is acting as arbitrator and all negotiations towards
settlement of the dispute must take without the presence of the arbitrators.

Article 5.42. Confidentially 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 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 contact 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 to 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

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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 the additional respondents unless not later than the date
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 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, wither 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 arbitrators fees, the arbitrators fees shall be
determined in accordance with the applicable internal rules of the regular arbitration institution under whose rules he 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 arbitrators 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, the 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;

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(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 provided 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.

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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.

(e) 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

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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 arbitration (i.e., the neutral thirdperson 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 thirdperson 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;

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(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 weakness 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 dispute without the consent of all
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
persons 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.

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(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 members. 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 proceedings shall be governed by
Chapter 3 of Mediation.

RULE 4 Mediation-Arbitration

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Article 7.8. MediationArbitration (a) A Mediation-Arbitration shall be governed by the rules and procedure agreed upon by the
parties, In the absence of said agreement, Chapter 5 on Mediation shall first apply and thereafter, Chapter 5 on Domestic
Arbitration.
(b) No Person shall having been engage 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, executive 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) n 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 by the OADR, as the case may be, 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 PROVISION

Article 8.1. Amendments. These Rules or any portion hereof may be amended by the Secretary of Justice.

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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 department 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.

December 4, 2009

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 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

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Atty. Alfredo F. Tadiar

Professor Annabelle T. Abaya
Mediation Profession
Atty. Mario E. Valderama
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

OFFICE OF THE PRESIDENT OF THE INTEGRATED BAR OF THE PHILIPPINES

Atty. Patricia Tysman-Clemente

MEDIATION PROFESSION
Former Prosecutor Dominador Bormasal, Jr.

- A.M. No. 07-11-08-SC (Special Rules of Court on Alternative Dispute Resolution)

A.M. No. 07-11-08-SC Special Rules of Court on Alternative Dispute Resolution
Republic of the Philippines
SUPREME COURT
Manila
EN BANC
A.M. No. 07-11-08-SC
September 1, 2009
SPECIAL RULES OF COURT ON ALTERNATIVE DISPUTE RESOLUTION
Acting on the recommendation of the Chairperson of the Sub-Committee on the Rules on Alternative Dispute Resolution submitting
for this Courts consideration and approval the proposed Special Rules of Court on Alternative Dispute Resolution, the Court
Resolved to APPROVE the same.

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This Rule shall take effect on October 30, 2009 following its publication in three (3) newspapers of general circulation.
September 1, 2009.
SPECIAL RULES OF COURT ON ALTERNATIVE DISPUTE RESOLUTION
PART I
GENERAL PROVISIONS AND POLICIES
RULE 1: GENERAL PROVISIONS
Rule 1.1. Subject matter and governing rules.-The Special Rules of Court on Alternative Dispute Resolution (the Special ADR
Rules) shall apply to and govern the following cases:
a. Relief on the issue of Existence, Validity, or Enforceability of the Arbitration Agreement;
b. Referral to Alternative Dispute Resolution (ADR);
c. Interim Measures of Protection;
d. Appointment of Arbitrator;
e. Challenge to Appointment of Arbitrator;
f. Termination of Mandate of Arbitrator;
g. Assistance in Taking Evidence;
h. Confirmation, Correction or Vacation of Award in Domestic Arbitration;
i. Recognition and Enforcement or Setting Aside of an Award in International Commercial Arbitration;
j. Recognition and Enforcement of a Foreign Arbitral Award;
k. Confidentiality/Protective Orders; and
l. Deposit and Enforcement of Mediated Settlement Agreements.
Rule 1.2. Nature of the proceedings.-All proceedings under the Special ADR Rules are special proceedings.
Rule 1.3. Summary proceedings in certain cases.-The proceedings in the following instances are summary in nature and shall be
governed by this provision:
a. Judicial Relief Involving the Issue of Existence, Validity or Enforceability of the Arbitration Agreement;
b. Referral to ADR;
c. Interim Measures of Protection;
d. Appointment of Arbitrator;
e. Challenge to Appointment of Arbitrator;
f. Termination of Mandate of Arbitrator;
g. Assistance in Taking Evidence;
h. Confidentiality/Protective Orders; and
i. Deposit and Enforcement of Mediated Settlement Agreements.
(A) Service and filing of petition in summary proceedings.-The petitioner shall serve, either by personal service or courier, a copy of
the petition upon the respondent before the filing thereof. Proof of service shall be attached to the petition filed in court.
For personal service, proof of service of the petition consists of the affidavit of the person who effected service, stating the time,
place and manner of the service on the respondent. For service by courier, proof of service consists of the signed courier proof of
delivery. If service is refused or has failed, the affidavit or delivery receipt must state the circumstances of the attempted service and
refusal or failure thereof.
(B) Notice.-Except for cases involving Referral to ADR and Confidentiality/Protective Orders made through motions, the court shall,
if it finds the petition sufficient in form and substance, send notice to the parties directing them to appear at a particular time and
date for the hearing thereof which shall be set no later than five (5) days from the lapse of the period for filing the opposition or
comment. The notice to the respondent shall contain a statement allowing him to file a comment or opposition to the petition within
fifteen (15) days from receipt of the notice.
The motion filed pursuant to the rules on Referral to ADR or Confidentiality/Protective Orders shall be set for hearing by the movant
and contain a notice of hearing that complies with the requirements under Rule 15 of the Rules of Court on motions.
(C) Summary hearing. In all cases, as far as practicable, the summary hearing shall be conducted in one (1) day and only for
purposes of clarifying facts.
Except in cases involving Referral to ADR or Confidentiality/Protective Orders made through motions, it shall be the court that sets
the petition for hearing within five (5) days from the lapse of the period for filing the opposition or comment.
(D) Resolution. The court shall resolve the matter within a period of thirty (30) days from the day of the hearing.
Rule 1.4. Verification and submissions. -Any pleading, motion, opposition, comment, defense or claim filed under the Special ADR
Rules by the proper party shall be supported by verified statements that the affiant has read the same and that the factual
allegations therein are true and correct of his own personal knowledge or based on authentic records and shall contain as annexes
the supporting documents.
The annexes to the pleading, motion, opposition, comment, defense or claim filed by the proper party may include a legal brief, duly
verified by the lawyer submitting it, stating the pertinent facts, the applicable law and jurisprudence to justify the necessity for the
court to rule upon the issue raised.

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Rule 1.5. Certification Against Forum Shopping. A Certification Against Forum Shopping is one made under oath made by the
petitioner or movant: (a) that he has not theretofore commenced any action or filed any claim involving the same issues in any court,
tribunal or quasi-judicial agency and, to the best of his knowledge, no such other action or claim is pending therein; (b) if there is
such other pending action or claim, a complete statement of the present status thereof; and (c) if he should thereafter learn that the
same or similar action or claim has been filed or is pending, he shall report that fact within five (5) days therefrom to the court
wherein his aforementioned petition or motion has been filed.
A Certification Against Forum Shopping shall be appended to all initiatory pleadings except a Motion to Refer the Dispute to
Alternative Dispute Resolution.
Rule 1.6. Prohibited submissions. The following pleadings, motions, or petitions shall not be allowed in the cases governed by the
Special ADR Rules and shall not be accepted for filing by the Clerk of Court:
a. Motion to dismiss;
b. Motion for bill of particulars;
c. Motion for new trial or for reopening of trial;
d. Petition for relief from judgment;
e. Motion for extension, except in cases where an ex-parte temporary order of protection has been issued;
f. Rejoinder to reply;
g. Motion to declare a party in default; and
h. Any other pleading specifically disallowed under any provision of the Special ADR Rules.
The court shall motu proprio order a pleading/motion that it has determined to be dilatory in nature be expunged from the records.
Rule 1.7. Computation of time. In computing any period of time prescribed or allowed by the Special ADR Rules, or by order of the
court, or by any applicable statute, the day of the act or event from which the designated period of time begins to run is to be
excluded and the date of performance included. If the last day of the period, as thus computed, falls on a Saturday, a Sunday, or a
legal holiday in the place where the court sits, the time shall not run until the next working day.
Should an act be done which effectively interrupts the running of the period, the allowable period after such interruption shall start to
run on the day after notice of the cessation of the cause thereof.
The day of the act that caused the interruption shall be excluded from the computation of the period.
Rule 1.8. Service and filing of pleadings, motions and other papers in non-summary proceedings. The initiatory pleadings shall be
filed directly with the court. The court will then cause the initiatory pleading to be served upon the respondent by personal service or
courier. Where an action is already pending, pleadings, motions and other papers shall be filed and/or served by the concerned
party by personal service or courier. Where courier services are not available, resort to registered mail is allowed.
(A) Proof of filing. The filing of a pleading shall be proved by its existence in the record of the case. If it is not in the record, but is
claimed to have been filed personally, the filing shall be proved by the written or stamped acknowledgment of its filing by the clerk of
court on a copy of the same; if filed by courier, by the proof of delivery from the courier company.
(B) Proof of service. Proof of personal service shall consist of a written admission by the party served, or the official return of the
server, or the affidavit of the party serving, containing a full statement of the date, place and manner of service. If the service is by
courier, proof thereof shall consist of an affidavit of the proper person, stating facts showing that the document was deposited with
the courier company in a sealed envelope, plainly addressed to the party at his office, if known, otherwise at his residence, with
postage fully pre-paid, and with instructions to the courier to immediately provide proof of delivery.
(C) Filing and service by electronic means and proof thereof. Filing and service of pleadings by electronic transmission may be
allowed by agreement of the parties approved by the court. If the filing or service of a pleading or motion was done by electronic
transmission, proof of filing and service shall be made in accordance with the Rules on Electronic Evidence.
Rule 1.9. No summons. In cases covered by the Special ADR Rules, a court acquires authority to act on the petition or motion
upon proof of jurisdictional facts, i.e., that the respondent was furnished a copy of the petition and the notice of hearing.
(A) Proof of service. A proof of service of the petition and notice of hearing upon respondent shall be made in writing by the server
and shall set forth the manner, place and date of service.
(B) Burden of proof. The burden of showing that a copy of the petition and the notice of hearing were served on the respondent
rests on the petitioner.
The technical rules on service of summons do not apply to the proceedings under the Special ADR Rules. In instances where the
respondent, whether a natural or a juridical person, was not personally served with a copy of the petition and notice of hearing in the
proceedings contemplated in the first paragraph of Rule 1.3 (B), or the motion in proceedings contemplated in the second paragraph
of Rule 1.3 (B), the method of service resorted to must be such as to reasonably ensure receipt thereof by the respondent to satisfy
the requirement of due process.
Rule 1.10. Contents of petition/motion. The initiatory pleading in the form of a verified petition or motion, in the appropriate case
where court proceedings have already commenced, shall include the names of the parties, their addresses, the necessary
allegations supporting the petition and the relief(s) sought.
Rule 1.11. Definition. The following terms shall have the following meanings:
a. ADR Laws refers to the whole body of ADR laws in the Philippines.

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b. Appointing Authority shall mean the person or institution named in the arbitration agreement as the appointing authority; or the
regular arbitration institution under whose rule 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 procedure under such arbitration rules for the selection and appointment of arbitrators. In ad hoc arbitration, the default
appointment of arbitrators shall be made by the National President of the Integrated Bar of the Philippines or his duly authorized
representative.
c. Authenticate means to sign, execute or use 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.
d. Foreign Arbitral Award is one made in a country other than the Philippines.
e. Legal Brief is a written legal argument submitted to a court, outlining the facts derived from the factual statements in the
witnesss statements of fact and citing the legal authorities relied upon by a party in a case submitted in connection with petitions,
counter-petitions (i.e., petitions to vacate or to set aside and/or to correct/modify in opposition to petitions to confirm or to recognize
and enforce, or petitions to confirm or to recognize and enforce in opposition to petitions to vacate or set aside and/or
correct/modify), motions, evidentiary issues and other matters that arise during the course of a case. The legal brief shall state the
applicable law and the relevant jurisprudence and the legal arguments in support of a partys position in the case.
f. Verification shall mean a certification under oath by a party or a person who has authority to act for a party that he has read the
pleading/motion, and that he certifies to the truth of the facts stated therein on the basis of his own personal knowledge or authentic
documents in his possession. When made by a lawyer, verification shall mean a statement under oath by a lawyer signing a
pleading/motion for delivery to the Court or to the parties that he personally prepared the pleading/motion, that there is sufficient
factual basis for the statements of fact stated therein, that there is sufficient basis in the facts and the law to support the prayer for
relief therein, and that the pleading/motion is filed in good faith and is not interposed for delay.
Rule 1.12. Applicability of Part II on Specific Court Relief. Part II of the Special ADR Rules on Specific Court Relief, insofar as it
refers to arbitration, shall also be applicable to other forms of ADR.
Rule 1.13. Spirit and intent of the Special ADR Rules. In situations where no specific rule is provided under the Special ADR
Rules, the court shall resolve such matter summarily and be guided by the spirit and intent of the Special ADR Rules and the ADR
Laws.
RULE 2: STATEMENT OF POLICIES
Rule 2.1. General policies. It is the policy of the State to actively promote the use of various modes of ADR and to respect party
autonomy or the freedom of the parties to make their own arrangements in the resolution of disputes with the greatest cooperation
of and the least intervention from the courts. To this end, the objectives of the Special ADR Rules are to encourage and promote the
use of ADR, particularly arbitration and mediation, as an important means to achieve speedy and efficient resolution of disputes,
impartial justice, curb a litigious culture and to de-clog court dockets.
The court shall exercise the power of judicial review as provided by these Special ADR Rules. Courts shall intervene only in the
cases allowed by law or these Special ADR Rules.
Rule 2.2. Policy on arbitration.- (A) Where the parties have agreed to submit their dispute to arbitration, courts shall refer the parties
to arbitration pursuant to Republic Act No. 9285 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. Further, the courts shall not refuse to refer parties to arbitration for reasons
including, but not limited to, the following:
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 has not commenced;
e. The place of arbitration is in a foreign country;
f. One or more of the issues are legal and one or more of the arbitrators are not lawyers;
g. One or more of the arbitrators are not Philippine nationals; or
h. One or more of the arbitrators are alleged not to possess the required qualification under the arbitration agreement or law.
(B) Where court intervention is allowed under ADR Laws or the Special ADR Rules, courts shall not refuse to grant relief, as
provided herein, for any of the following reasons:
a. Prior to the constitution of the arbitral tribunal, the court finds that the principal action is the subject of an arbitration agreement; or
b. The principal action is already pending before an arbitral tribunal.
The Special ADR Rules recognize the principle of competence-competence, which means that the arbitral tribunal may initially 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.
The Special ADR Rules recognize the principle of separability of the arbitration clause, which means that said clause shall be
treated as an agreement independent of the other terms of the contract of which it forms part. A decision that the contract is null and
void shall not entail ipso jure the invalidity of the arbitration clause.
Rule 2.3. Rules governing arbitral proceedings. The parties are free to agree on the procedure to be followed in the conduct of
arbitral proceedings. Failing such agreement, the arbitral tribunal may conduct arbitration in the manner it considers appropriate.

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Rule 2.4. Policy implementing competence-competence principle. The arbitral tribunal shall be accorded the first opportunity or
competence to rule on the issue of whether or not it has the competence or jurisdiction to decide a dispute submitted to it for
decision, including any objection with respect to the existence or validity of the arbitration agreement. When a court is asked to rule
upon issue/s affecting the competence or jurisdiction of an arbitral tribunal in a dispute brought before it, either before or after the
arbitral tribunal is constituted, the court must exercise judicial restraint and defer to the competence or jurisdiction of the arbitral
tribunal by allowing the arbitral tribunal the first opportunity to rule upon such issues.
Where the court is asked to make a determination of whether the arbitration agreement is null and void, inoperative or incapable of
being performed, under this policy of judicial restraint, the court must make no more than a prima facie determination of that issue.
Unless the court, pursuant to such prima facie determination, concludes that the arbitration agreement is null and void, inoperative
or incapable of being performed, the court must suspend the action before it and refer the parties to arbitration pursuant to the
arbitration agreement.
Rule 2.5. Policy on mediation. The Special ADR Rules do not apply to Court-Annexed Mediation, which shall be governed by
issuances of the Supreme Court.
Where the parties have agreed to submit their dispute to mediation, a court before which that dispute was brought shall suspend the
proceedings and direct the parties to submit their dispute to private mediation. If the parties subsequently agree, however, they may
opt to have their dispute settled through Court-Annexed Mediation.
Rule 2.6. Policy on Arbitration-Mediation or Mediation-Arbitration. No arbitrator shall act as a mediator in any proceeding in which
he is acting as arbitrator; and all negotiations towards settlement of the dispute must take place without the presence of that
arbitrator. Conversely, no mediator shall act as arbitrator in any proceeding in which he acted as mediator.
Rule 2.7. Conversion of a settlement agreement to an arbitral award. Where the parties to mediation have agreed in the written
settlement agreement that the mediator shall become the sole arbitrator for the dispute or that the settlement agreement shall
become an arbitral award, the sole arbitrator shall issue the settlement agreement as an arbitral award, which shall be subject to
enforcement under the law.
PART II
SPECIFIC COURT RELIEF
RULE 3: JUDICIAL RELIEF INVOLVING THE ISSUE OF EXISTENCE, VALIDITY AND ENFORCEABILITY OF THE
ARBITRATION AGREEMENT
Rule 3.1. When judicial relief is available. The judicial relief provided in Rule 3, whether resorted to before or after commencement
of arbitration, shall apply only when the place of arbitration is in the Philippines.
A. Judicial Relief before Commencement of Arbitration
Rule 3.2. Who may file petition. Any party to an arbitration agreement may petition the appropriate court to determine any question
concerning the existence, validity and enforceability of such arbitration agreement serving a copy thereof on the respondent in
accordance with Rule 1.4 (A).
Rule 3.3. When the petition may be filed. The petition for judicial determination of the existence, validity and/or enforceability of an
arbitration agreement may be filed at any time prior to the commencement of arbitration.
Despite the pendency of the petition provided herein, arbitral proceedings may nevertheless be commenced and continue to the
rendition of an award, while the issue is pending before the court.
Rule 3.4. Venue. A petition questioning the existence, validity and enforceability of an arbitration agreement may be filed before
the Regional Trial Court of the place where any of the petitioners or respondents has his principal place of business or residence.
Rule 3.5. Grounds. A petition may be granted only if it is shown that the arbitration agreement is, under the applicable law, invalid,
void, unenforceable or inexistent.
Rule 3.6. Contents of petition. The verified petition shall state the following:
a. The facts showing that the persons named as petitioner or respondent have legal capacity to sue or be sued;
b. The nature and substance of the dispute between the parties;
c. The grounds and the circumstances relied upon by the petitioner to establish his position; and
d. The relief/s sought.
Apart from other submissions, the petitioner must attach to the petition an authentic copy of the arbitration agreement.
Rule 3.7. Comment/Opposition.-The comment/opposition of the respondent must be filed within fifteen (15) days from service of the
petition.

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Rule 3.8. Court action. In resolving the petition, the court must exercise judicial restraint in accordance with the policy set forth in
Rule 2.4, deferring to the competence or jurisdiction of the arbitral tribunal to rule on its competence or jurisdiction.
Rule 3.9. No forum shopping. A petition for judicial relief under this Rule may not be commenced when the existence, validity or
enforceability of an arbitration agreement has been raised as one of the issues in a prior action before the same or another court.
Rule 3.10. Application for interim relief. If the petitioner also applies for an interim measure of protection, he must also comply with
the requirements of the Special ADR Rules for the application for an interim measure of protection.
Rule 3.11. Relief against court action. Where there is a prima facie determination upholding the arbitration agreement.-A prima
facie determination by the court upholding the existence, validity or enforceability of an arbitration agreement shall not be subject to
a motion for reconsideration, appeal or certiorari.
Such prima facie determination will not, however, prejudice the right of any party to raise the issue of the existence, validity and
enforceability of the arbitration agreement before the arbitral tribunal or the court in an action to vacate or set aside the arbitral
award. In the latter case, the courts review of the arbitral tribunals ruling upholding the existence, validity or enforceability of the
arbitration agreement shall no longer be limited to a mere prima facie determination of such issue or issues as prescribed in this
Rule, but shall be a full review of such issue or issues with due regard, however, to the standard for review for arbitral awards
prescribed in these Special ADR Rules.
B. Judicial Relief after Arbitration Commences
Rule 3.12. Who may file petition. Any party to arbitration may petition the appropriate court for judicial relief from the ruling of the
arbitral tribunal on a preliminary question upholding or declining its jurisdiction. Should the ruling of the arbitral tribunal declining its
jurisdiction be reversed by the court, the parties shall be free to replace the arbitrators or any one of them in accordance with the
rules that were applicable for the appointment of arbitrator sought to be replaced.
Rule 3.13. When petition may be filed. The petition may be filed within thirty (30) days after having received notice of that ruling by
the arbitral tribunal.
Rule 3.14. Venue. The petition may be filed before the Regional Trial Court of the place where arbitration is taking place, or where
any of the petitioners or respondents has his principal place of business or residence.
Rule 3.15. Grounds. The petition may be granted when the court finds that the arbitration agreement is invalid, inexistent or
unenforceable as a result of which the arbitral tribunal has no jurisdiction to resolve the dispute.
Rule 3.16. Contents of petition. The petition shall state the following:
a. The facts showing that the person named as petitioner or respondent has legal capacity to sue or be sued;
b. The nature and substance of the dispute between the parties;
c. The grounds and the circumstances relied upon by the petitioner; and
d. The relief/s sought.
In addition to the submissions, the petitioner shall attach to the petition a copy of the request for arbitration and the ruling of the
arbitral tribunal.
The arbitrators shall be impleaded as nominal parties to the case and shall be notified of the progress of the case.
Rule 3.17. Comment/Opposition. The comment/opposition must be filed within fifteen (15) days from service of the petition.
Rule 3.18. Court action. (A) Period for resolving the petition.- The court shall render judgment on the basis of the pleadings filed
and the evidence, if any, submitted by the parties, within thirty (30) days from the time the petition is submitted for resolution.
(B) No injunction of arbitration proceedings. The court shall not enjoin the arbitration proceedings during the pendency of the
petition.
Judicial recourse to the court shall not prevent the arbitral tribunal from continuing the proceedings and rendering its award.
(C) When dismissal of petition is appropriate. The court shall dismiss the petition if it fails to comply with Rule 3.16 above; or if
upon consideration of the grounds alleged and the legal briefs submitted by the parties, the petition does not appear to be prima
facie meritorious.
Rule 3.19. Relief against court action. The aggrieved party may file a motion for reconsideration of the order of the court. The
decision of the court shall, however, not be subject to appeal. The ruling of the court affirming the arbitral tribunals jurisdiction shall
not be subject to a petition for certiorari. The ruling of the court that the arbitral tribunal has no jurisdiction may be the subject of a
petition for certiorari.
Rule 3.20. Where no petition is allowed. Where the arbitral tribunal defers its ruling on preliminary question regarding its
jurisdiction until its final award, the aggrieved party cannot seek judicial relief to question the deferral and must await the final arbitral
award before seeking appropriate judicial recourse.

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A ruling by the arbitral tribunal deferring resolution on the issue of its jurisdiction until final award, shall not be subject to a motion for
reconsideration, appeal or a petition for certiorari.
Rule 3.21. Rendition of arbitral award before court decision on petition from arbitral tribunals preliminary ruling on jurisdiction . If
the arbitral tribunal renders a final arbitral award and the Court has not rendered a decision on the petition from the arbitral tribunals
preliminary ruling affirming its jurisdiction, that petition shall become ipso facto moot and academic and shall be dismissed by the
Regional Trial Court. The dismissal shall be without prejudice to the right of the aggrieved party to raise the same issue in a timely
petition to vacate or set aside the award.
Rule 3.22. Arbitral tribunal a nominal party. The arbitral tribunal is only a nominal party. The court shall not require the arbitral
tribunal to submit any pleadings or written submissions but may consider the same should the latter participate in the proceedings,
but only as nominal parties thereto.
RULE 4: REFERRAL TO ADR
Rule 4.1. Who makes the request. A party to a pending action filed in violation of the arbitration agreement, whether contained in
an arbitration clause or in a submission agreement, may request the court to refer the parties to arbitration in accordance with such
agreement.
Rule 4.2. When to make request. (A) Where the arbitration agreement exists before the action is filed. The request for referral
shall be made not later than the pre-trial conference. After the pre-trial conference, the court will only act upon the request for
referral if it is made with the agreement of all parties to the case.
(B) Submission agreement. If there is no existing arbitration agreement at the time the case is filed but the parties subsequently
enter into an arbitration agreement, they may request the court to refer their dispute to arbitration at any time during the
proceedings.
Rule 4.3. Contents of request. The request for referral shall be in the form of a motion, which shall state that the dispute is
covered by an arbitration agreement.
Apart from other submissions, the movant shall attach to his motion an authentic copy of the arbitration agreement.
The request shall contain a notice of hearing addressed to all parties specifying the date and time when it would be heard. The party
making the request shall serve it upon the respondent to give him the opportunity to file a comment or opposition as provided in the
immediately succeeding Rule before the hearing.
Rule 4.4. Comment/Opposition. The comment/opposition must be filed within fifteen (15) days from service of the petition. The
comment/opposition should show that: (a) there is no agreement to refer the dispute to arbitration; and/or (b) the agreement is null
and void; and/or (c) the subject-matter of the dispute is not capable of settlement or resolution by arbitration in accordance with
Section 6 of the ADR Act.
Rule 4.5. Court action. After hearing, the court shall stay the action and, considering the statement of policy embodied in Rule 2.4,
above, refer the parties to arbitration if it finds prima facie, based on the pleadings and supporting documents submitted by the
parties, that there is an arbitration agreement and that the subject-matter of the dispute is capable of settlement or resolution by
arbitration in accordance with Section 6 of the ADR Act. Otherwise, the court shall continue with the judicial proceedings.
Rule 4.6. No reconsideration, appeal or certiorari. An order referring the dispute to arbitration shall be immediately executory and
shall not be subject to a motion for reconsideration, appeal or petition for certiorari.
An order denying the request to refer the dispute to arbitration shall not be subject to an appeal, but may be the subject of a motion
for reconsideration and/or a petition for certiorari.
Rule 4.7. Multiple actions and parties. The court shall not decline to refer some or all of the parties to arbitration for any of the
following reasons:
a. Not all of the disputes subject of the civil action may be referred to arbitration;
b. Not all of the parties to the civil action are bound by the arbitration agreement and referral to arbitration would result in multiplicity
of suits;
c. The issues raised in the civil action could be speedily and efficiently resolved in its entirety by the court rather than in arbitration;
d. Referral to arbitration does not appear to be the most prudent action; or
e. The stay of the action would prejudice the rights of the parties to the civil action who are not bound by the arbitration agreement.
The court may, however, issue an order directing the inclusion in arbitration of those parties who are not bound by the arbitration
agreement but who agree to such inclusion provided those originally bound by it do not object to their inclusion.
Rule 4.8. Arbitration to proceed.- Despite the pendency of the action referred to in Rule 4.1, above, arbitral proceedings may
nevertheless be commenced or continued, and an award may be made, while the action is pending before the court.
RULE 5: INTERIM MEASURES OF PROTECTION

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Rule 5.1. Who may ask for interim measures of protection. A party to an arbitration agreement may petition the court for interim
measures of protection.
Rule 5.2. When to petition. A petition for an interim measure of protection may be made (a) before arbitration is commenced, (b)
after arbitration is commenced, but before the constitution of the arbitral tribunal, or (c) after the constitution of the arbitral tribunal
and at any time during arbitral proceedings but, at this stage, only to the extent that the arbitral tribunal has no power to act or is
unable to act effectively.
Rule 5.3. Venue. A petition for an interim measure of protection may be filed with the Regional Trial Court, which has jurisdiction
over any of the following places:
a. Where the principal place of business of any of the parties to arbitration is located;
b. Where any of the parties who are individuals resides;
c. Where any of the acts sought to be enjoined are being performed, threatened to be performed or not being performed; or
d. Where the real property subject of arbitration, or a portion thereof is situated.
Rule 5.4. Grounds. The following grounds, while not limiting the reasons for the court to grant an interim measure of protection,
indicate the nature of the reasons that the court shall consider in granting the relief:
a. The need to prevent irreparable loss or injury;
b. The need to provide security for the performance of any obligation;
c. The need to produce or preserve evidence; or
d. The need to compel any other appropriate act or omission.
Rule 5.5. Contents of the petition. The verified petition must state the following:
a. The fact that there is an arbitration agreement;
b. The fact that the arbitral tribunal has not been constituted, or if constituted, is unable to act or would be unable to act effectively;
c. A detailed description of the appropriate relief sought;
d. The grounds relied on for the allowance of the petition
Apart from other submissions, the petitioner must attach to his petition an authentic copy of the arbitration agreement.
Rule 5.6. Type of interim measure of protection that a court may grant.- The following, among others, are the interim measures of
protection that a court may grant:
a. Preliminary injunction directed against a party to arbitration;
b. Preliminary attachment against property or garnishment of funds in the custody of a bank or a third person;
c. Appointment of a receiver;
d. Detention, preservation, delivery or inspection of property; or,
e. Assistance in the enforcement of an interim measure of protection granted by the arbitral tribunal, which the latter cannot enforce
effectively.
Rule 5.7. Dispensing with prior notice in certain cases. Prior notice to the other party may be dispensed with when the petitioner
alleges in the petition that there is an urgent need to either (a) preserve property, (b) prevent the respondent from disposing of, or
concealing, the property, or (c) prevent the relief prayed for from becoming illusory because of prior notice, and the court finds that
the reason/s given by the petitioner are meritorious.
Rule 5.8. Comment/Opposition. The comment/opposition must be filed within fifteen (15) days from service of the petition. The
opposition or comment should state the reasons why the interim measure of protection should not be granted.
Rule 5.9. Court action. After hearing the petition, the court shall balance the relative interests of the parties and inconveniences
that may be caused, and on that basis resolve the matter within thirty (30) days from (a) submission of the opposition, or (b) upon
lapse of the period to file the same, or (c) from termination of the hearing that the court may set only if there is a need for clarification
or further argument.
If the other parties fail to file their opposition on or before the day of the hearing, the court shall motu propriorender judgment only on
the basis of the allegations in the petition that are substantiated by supporting documents and limited to what is prayed for therein.
In cases where, based solely on the petition, the court finds that there is an urgent need to either (a) preserve property, (b) prevent
the respondent from disposing of, or concealing, the property, or (c) prevent the relief prayed for from becoming illusory because of
prior notice, it shall issue an immediately executory temporary order of protection and require the petitioner, within five (5) days from
receipt of that order, to post a bond to answer for any damage that respondent may suffer as a result of its order. The ex-parte
temporary order of protection shall be valid only for a period of twenty (20) days from the service on the party required to comply
with the order. Within that period, the court shall:
a. Furnish the respondent a copy of the petition and a notice requiring him to comment thereon on or before the day the petition will
be heard; and
b. Notify the parties that the petition shall be heard on a day specified in the notice, which must not be beyond the twenty (20) day
period of the effectivity of the ex-parte order.
The respondent has the option of having the temporary order of protection lifted by posting an appropriate counter-bond as
determined by the court.

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If the respondent requests the court for an extension of the period to file his opposition or comment or to reset the hearing to a later
date, and such request is granted, the court shall extend the period of validity of the ex-partetemporary order of protection for no
more than twenty days from expiration of the original period.
After notice and hearing, the court may either grant or deny the petition for an interim measure of protection. The order granting or
denying any application for interim measure of protection in aid of arbitration must indicate that it is issued without prejudice to
subsequent grant, modification, amendment, revision or revocation by an arbitral tribunal.
Rule 5.10. Relief against court action. If respondent was given an opportunity to be heard on a petition for an interim measure of
protection, any order by the court shall be immediately executory, but may be the subject of a motion for reconsideration and/or
appeal or, if warranted, a petition for certiorari.
Rule 5.11. Duty of the court to refer back. The court shall not deny an application for assistance in implementing or enforcing an
interim measure of protection ordered by an arbitral tribunal on any or all of the following grounds:
a. The arbitral tribunal granted the interim relief ex parte; or
b. The party opposing the application found new material evidence, which the arbitral tribunal had not considered in granting in the
application, and which, if considered, may produce a different result; or
c. The measure of protection ordered by the arbitral tribunal amends, revokes, modifies or is inconsistent with an earlier measure of
protection issued by the court.
If it finds that there is sufficient merit in the opposition to the application based on letter (b) above, the court shall refer the matter
back to the arbitral tribunal for appropriate determination.
Rule 5.12. Security. The order granting an interim measure of protection may be conditioned upon the provision of security,
performance of an act, or omission thereof, specified in the order.
The Court may not change or increase or decrease the security ordered by the arbitral tribunal.
Rule 5.13. Modification, amendment, revision or revocation of courts previously issued interim measure of protection. Any court
order granting or denying interim measure/s of protection is issued without prejudice to subsequent grant, modification, amendment,
revision or revocation by the arbitral tribunal as may be warranted.
An interim measure of protection issued by the arbitral tribunal shall, upon its issuance be deemed to have ipso jure modified,
amended, revised or revoked an interim measure of protection previously issued by the court to the extent that it is inconsistent with
the subsequent interim measure of protection issued by the arbitral tribunal.
Rule 5.14. Conflict or inconsistency between interim measure of protection issued by the court and by the arbitral tribunal. Any
question involving a conflict or inconsistency between an interim measure of protection issued by the court and by the arbitral
tribunal shall be immediately referred by the court to the arbitral tribunal which shall have the authority to decide such question.
Rule 5.15. Court to defer action on petition for an interim measure of protection when informed of constitution of the arbitral tribunal.
The court shall defer action on any pending petition for an interim measure of protection filed by a party to an arbitration
agreement arising from or in connection with a dispute thereunder upon being informed that an arbitral tribunal has been constituted
pursuant to such agreement. The court may act upon such petition only if it is established by the petitioner that the arbitral tribunal
has no power to act on any such interim measure of protection or is unable to act thereon effectively.
Rule 5.16. Court assistance should arbitral tribunal be unable to effectively enforce interim measure of protection. The court shall
assist in the enforcement of an interim measure of protection issued by the arbitral tribunal which it is unable to effectively enforce.
RULE 6: APPOINTMENT OF ARBITRATORS
Rule 6.1. When the court may act as Appointing Authority. The court shall act as Appointing Authority only in the following
instances:
a. Where any of the parties in an institutional arbitration failed or refused to appoint an arbitrator or when the parties have failed to
reach an agreement on the sole arbitrator (in an arbitration before a sole arbitrator) or when the two designated arbitrators have
failed to reach an agreement on the third or presiding arbitrator (in an arbitration before a panel of three arbitrators), and the
institution under whose rules arbitration is to be conducted fails or is unable to perform its duty as appointing authority within a
reasonable time from receipt of the request for appointment;
b. In all instances where arbitration is ad hoc and the parties failed to provide a method for appointing or replacing an arbitrator, or
substitute arbitrator, or the method agreed upon is ineffective, and the National President of the Integrated Bar of the Philippines
(IBP) or his duly authorized representative fails or refuses to act within such period as may be allowed under the pertinent rules of
the IBP or within such period as may be agreed upon by the parties, or in the absence thereof, within thirty (30) days from receipt of
such request for appointment;
c. Where the parties agreed that their dispute shall be resolved by three arbitrators but no method of appointing those arbitrators
has been agreed upon, each party shall appoint one arbitrator and the two arbitrators thus appointed shall appoint a third arbitrator.
If a party fails to appoint his 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 a reasonable time from their appointment, the appointment shall be made by the
Appointing Authority. If the latter fails or refuses to act or appoint an arbitrator within a reasonable time from receipt of the request to

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do so, any party or the appointed arbitrator/s may request the court to appoint an arbitrator or the third arbitrator as the case may
be.
Rule 6.2. Who may request for appointment. Any party to an arbitration may request the court to act as an Appointing Authority in
the instances specified in Rule 6.1 above.
Rule 6.3. Venue. The petition for appointment of arbitrator may be filed, at the option of the petitioner, in the Regional Trial Court
(a) where the principal place of business of any of the parties is located, (b) if any of the parties are individuals, where those
individuals reside, or (c) in the National Capital Region.
Rule 6.4. Contents of the petition. -The petition shall state the following:
a. The general nature of the dispute;
b. If the parties agreed on an appointment procedure, a description of that procedure with reference to the agreement where such
may be found;
c. The number of arbitrators agreed upon or the absence of any agreement as to the number of arbitrators;
d. The special qualifications that the arbitrator/s must possess, if any, that were agreed upon by the parties;
e. The fact that the Appointing Authority, without justifiable cause, has failed or refused to act as such within the time prescribed or in
the absence thereof, within a reasonable time, from the date a request is made; and
f. The petitioner is not the cause of the delay in, or failure of, the appointment of the arbitrator.
Apart from other submissions, the petitioner must attach to the petition (a) an authentic copy of the arbitration agreement, and (b)
proof that the Appointing Authority has been notified of the filing of the petition for appointment with the court.
Rule 6.5. Comment/Opposition. The comment/opposition must be filed within fifteen (15) days from service of the petition.
Rule 6.6. Submission of list of arbitrators. The court may, at its option, also require each party to submit a list of not less than three
(3) proposed arbitrators together with their curriculum vitae.
Rule 6.7. Court action. After hearing, if the court finds merit in the petition, it shall appoint an arbitrator; otherwise, it shall dismiss
the petition.
In making the appointment, the court shall have regard to such considerations as are likely to secure the appointment of an
independent and impartial arbitrator.
At any time after the petition is filed and before the court makes an appointment, it shall also dismiss the petition upon being
informed that the Appointing Authority has already made the appointment.
Rule 6.8. Forum shopping prohibited. When there is a pending petition in another court to declare the arbitration agreement
inexistent, invalid, unenforceable, on account of which the respondent failed or refused to participate in the selection and
appointment of a sole arbitrator or to appoint a party-nominated arbitrator, the petition filed under this rule shall be dismissed.
Rule 6.9. Relief against court action. If the court appoints an arbitrator, the order appointing an arbitrator shall be immediately
executory and shall not be the subject of a motion for reconsideration, appeal or certiorari. An order of the court denying the petition
for appointment of an arbitrator may, however, be the subject of a motion for reconsideration, appeal or certiorari.
RULE 7: CHALLENGE TO APPOINTMENT OF ARBITRATOR
Rule 7.1. Who may challenge. Any of the parties to an arbitration may challenge an arbitrator.
Rule 7.2. When challenge may be raised in court. When an arbitrator is challenged before the arbitral tribunal under the procedure
agreed upon by the parties or under the procedure provided for in Article 13 (2) of the Model Law and the challenge is not
successful, the aggrieved party may request the Appointing Authority to rule on the challenge, and it is only when such Appointing
Authority fails or refuses to act on the challenge within such period as may be allowed under the applicable rule or in the absence
thereof, within thirty (30) days from receipt of the request, that the aggrieved party may renew the challenge in court.
Rule 7.3. Venue. The challenge shall be filed with the Regional Trial Court (a) where the principal place of business of any of the
parties is located, (b) if any of the parties are individuals, where those individuals reside, or (c) in the National Capital Region.
Rule 7.4. Grounds. An arbitrator may be challenged on any of the grounds for challenge provided for in Republic Act No. 9285 and
its implementing rules, Republic Act No. 876 or the Model Law. The nationality or professional qualification of an arbitrator is not a
ground to challenge an arbitrator unless the parties have specified in their arbitration agreement a nationality and/or professional
qualification for appointment as arbitrator.
Rule 7.5. Contents of the petition. The petition shall state the following:
a. The name/s of the arbitrator/s challenged and his/their address;
b. The grounds for the challenge;
c. The facts showing that the ground for the challenge has been expressly or impliedly rejected by the challenged arbitrator/s; and
d. The facts showing that the Appointing Authority failed or refused to act on the challenge.

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The court shall dismiss the petition motu proprio unless it is clearly alleged therein that the Appointing Authority charged with
deciding the challenge, after the resolution of the arbitral tribunal rejecting the challenge is raised or contested before such
Appointing Authority, failed or refused to act on the challenge within thirty (30) days from receipt of the request or within such longer
period as may apply or as may have been agreed upon by the parties.
Rule 7.6. Comment/Opposition. The challenged arbitrator or other parties may file a comment or opposition within fifteen (15)
days from service of the petition.
Rule 7.7. Court action. After hearing, the court shall remove the challenged arbitrator if it finds merit in the petition; otherwise, it
shall dismiss the petition.
The court shall allow the challenged arbitrator who subsequently agrees to accept the challenge to withdraw as arbitrator.
The court shall accept the challenge and remove the arbitrator in the following cases:
a. The party or parties who named and appointed the challenged arbitrator agree to the challenge and withdraw the appointment.
b. The other arbitrators in the arbitral tribunal agree to the removal of the challenged arbitrator; and
c. The challenged arbitrator fails or refuses to submit his comment on the petition or the brief of legal arguments as directed by the
court, or in such comment or legal brief, he fails to object to his removal following the challenge.
The court shall decide the challenge on the basis of evidence submitted by the parties.
The court will decide the challenge on the basis of the evidence submitted by the parties in the following instances:
a. The other arbitrators in the arbitral tribunal agree to the removal of the challenged arbitrator; and
b. If the challenged arbitrator fails or refuses to submit his comment on the petition or the brief of legal arguments as directed by the
court, or in such comment or brief of legal arguments, he fails to object to his removal following the challenge.
Rule 7.8. No motion for reconsideration, appeal or certiorari. Any order of the court resolving the petition shall be immediately
executory and shall not be the subject of a motion for reconsideration, appeal, or certiorari.
Rule 7.9. Reimbursement of expenses and reasonable compensation to challenged arbitrator. Unless the bad faith of the
challenged arbitrator is established with reasonable certainty by concealing or failing to disclose a ground for his disqualification, the
challenged arbitrator shall be entitled to reimbursement of all reasonable expenses he may have incurred in attending to the
arbitration and to a reasonable compensation for his work on the arbitration. Such expenses include, but shall not be limited to,
transportation and hotel expenses, if any. A reasonable compensation shall be paid to the challenged arbitrator on the basis of the
length of time he has devoted to the arbitration and taking into consideration his stature and reputation as an arbitrator. The request
for reimbursement of expenses and for payment of a reasonable compensation shall be filed in the same case and in the court
where the petition to replace the challenged arbitrator was filed. The court, in determining the amount of the award to the challenged
arbitrator, shall receive evidence of expenses to be reimbursed, which may consist of air tickets, hotel bills and expenses, and inland
transportation. The court shall direct the challenging party to pay the amount of the award to the court for the account of the
challenged arbitrator, in default of which the court may issue a writ of execution to enforce the award.
RULE 8: TERMINATION OF THE MANDATE OF ARBITRATOR
Rule 8.1. Who may request termination and on what grounds.- Any of the parties to an arbitration may request for the termination of
the mandate of an arbitrator where an arbitrator becomes de jure or de facto unable to perform his function or for other reasons fails
to act without undue delay and that arbitrator, upon request of any party, fails or refuses to withdraw from his office.
Rule 8.2. When to request. If an arbitrator refuses to withdraw from his office, and subsequently, the Appointing Authority fails or
refuses to decide on the termination of the mandate of that arbitrator within such period as may be allowed under the applicable rule
or, in the absence thereof, within thirty (30) days from the time the request is brought before him, any party may file with the court a
petition to terminate the mandate of that arbitrator.
Rule 8.3. Venue. A petition to terminate the mandate of an arbitrator may, at that petitioners option, be filed with the Regional Trial
Court (a) where the principal place of business of any of the parties is located, (b) where any of the parties who are individuals
resides, or (c) in the National Capital Region.
Rule 8.4. Contents of the petition. The petition shall state the following:
a. The name of the arbitrator whose mandate is sought to be terminated;
b. The ground/s for termination;
c. The fact that one or all of the parties had requested the arbitrator to withdraw but he failed or refused to do so;
d. The fact that one or all of the parties requested the Appointing Authority to act on the request for the termination of the mandate of
the arbitrator and failure or inability of the Appointing Authority to act within thirty (30) days from the request of a party or parties or
within such period as may have been agreed upon by the parties or allowed under the applicable rule.
The petitioner shall further allege that one or all of the parties had requested the arbitrator to withdraw but he failed or refused to do
so.
Rule 8.5. Comment/Opposition. The comment/opposition must be filed within fifteen (15) days from service of the petition.

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Rule 8.6. Court action. After hearing, if the court finds merit in the petition, it shall terminate the mandate of the arbitrator who
refuses to withdraw from his office; otherwise, it shall dismiss the petition.
Rule 8.7. No motion for reconsideration or appeal. Any order of the court resolving the petition shall be immediately executory and
shall not be subject of a motion for reconsideration, appeal or petition for certiorari.
Rule 8.8. Appointment of substitute arbitrator. Where the mandate of an arbitrator is terminated, or he withdraws from office for
any other reason, or because of his mandate is revoked by agreement of the parties or is terminated for any other reason, a
substitute arbitrator shall be appointed according to the rules that were applicable to the appointment of the arbitrator being
replaced.
RULE 9: ASSISTANCE IN TAKING EVIDENCE
Rule 9.1. Who may request assistance. Any party to an arbitration, whether domestic or foreign, may request the court to provide
assistance in taking evidence.
Rule 9.2. When assistance may be sought. Assistance may be sought at any time during the course of the arbitral proceedings
when the need arises.
Rule 9.3. Venue. A petition for assistance in taking evidence may, at the option of the petitioner, be filed with Regional Trial Court
where (a) arbitration proceedings are taking place, (b) the witnesses reside or may be found, or (c) where the evidence may be
found.
Rule 9.4. Ground. The court may grant or execute the request for assistance in taking evidence within its competence and
according to the rules of evidence.
Rule 9.5. Type of assistance. A party requiring assistance in the taking of evidence may petition the court to direct any person,
including a representative of a corporation, association, partnership or other entity (other than a party to the ADR proceedings or its
officers) found in the Philippines, for any of the following:
a. To comply with a subpoena ad testificandum and/or subpoena duces tecum;
b. To appear as a witness before an officer for the taking of his deposition upon oral examination or by written interrogatories;
c. To allow the physical examination of the condition of persons, or the inspection of things or premises and, when appropriate, to
allow the recording and/or documentation of condition of persons, things or premises (i.e., photographs, video and other means of
recording/documentation);
d. To allow the examination and copying of documents; and
e. To perform any similar acts.
Rule 9.6. Contents of the petition. The petition must state the following:
a. The fact that there is an ongoing arbitration proceeding even if such proceeding could not continue due to some legal
impediments;
b. The arbitral tribunal ordered the taking of evidence or the party desires to present evidence to the arbitral tribunal;
c. Materiality or relevance of the evidence to be taken; and
d. The names and addresses of the intended witness/es, place where the evidence may be found, the place where the premises to
be inspected are located or the place where the acts required are to be done.
Rule 9.7. Comment/Opposition. The comment/opposition must be filed within fifteen (15) days from service of the petition.
Rule 9.8. Court action. If the evidence sought is not privileged, and is material and relevant, the court shall grant the assistance in
taking evidence requested and shall order petitioner to pay costs attendant to such assistance.
Rule 9.9. Relief against court action. The order granting assistance in taking evidence shall be immediately executory and not
subject to reconsideration or appeal. If the court declines to grant assistance in taking evidence, the petitioner may file a motion for
reconsideration or appeal.
Rule 9.10. Perpetuation of testimony before the arbitral tribunal is constituted. At anytime before arbitration is commenced or
before the arbitral tribunal is constituted, any person who desires to perpetuate his testimony or that of another person may do so in
accordance with Rule 24 of the Rules of Court.
Rule 9.11. Consequence of disobedience. The court may impose the appropriate sanction on any person who disobeys its order
to testify when required or perform any act required of him.
RULE 10: CONFIDENTIALITY/PROTECTIVE ORDERS

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Rule 10.1. Who may request confidentiality. A party, counsel or witness who disclosed or who was compelled to disclose
information relative to the subject of ADR under circumstances that would create a reasonable expectation, on behalf of the source,
that the information shall be kept confidential has the right to prevent such information from being further disclosed without the
express written consent of the source or the party who made the disclosure.
Rule 10.2. When request made. A party may request a protective order at anytime there is a need to enforce the confidentiality of
the information obtained, or to be obtained, in ADR proceedings.
Rule 10.3. Venue. A petition for a protective order may be filed with the Regional Trial Court where that order would be
implemented.
If there is a pending court proceeding in which the information obtained in an ADR proceeding is required to be divulged or is being
divulged, the party seeking to enforce the confidentiality of the information may file a motion with the court where the proceedings
are pending to enjoin the confidential information from being divulged or to suppress confidential information.
Rule 10.4. Grounds. A protective order may be granted only if it is shown that the applicant would be materially prejudiced by an
unauthorized disclosure of the information obtained, or to be obtained, during an ADR proceeding.
Rule 10.5. Contents of the motion or petition. The petition or motion must state the following:
a. That the information sought to be protected was obtained, or would be obtained, during an ADR proceeding;
b. The applicant would be materially prejudiced by the disclosure of that information;
c. The person or persons who are being asked to divulge the confidential information participated in an ADR proceedings; and
d. The time, date and place when the ADR proceedings took place.
Apart from the other submissions, the movant must set the motion for hearing and contain a notice of hearing in accordance with
Rule 15 of the Rules of Court.
Rule 10.6. Notice. Notice of a request for a protective order made through a motion shall be made to the opposing parties in
accordance with Rule 15 of the Rules of Court.
Rule 10.7. Comment/Opposition. The comment/opposition must be filed within fifteen (15) days from service of the petition. The
opposition or comment may be accompanied by written proof that (a) the information is not confidential, (b) the information was not
obtained during an ADR proceeding, (c) there was a waiver of confidentiality, or (d) the petitioner/movant is precluded from asserting
confidentiality.
Rule 10.8. Court action. If the court finds the petition or motion meritorious, it shall issue an order enjoining a person or persons
from divulging confidential information.
In resolving the petition or motion, the courts shall be guided by the following principles applicable to all ADR proceedings:
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 therein.
For mediation proceedings, the court shall be further guided by the following principles:
a. Information obtained through mediation shall be privileged and confidential.
b. A party, a mediator, or a nonparty participant may refuse to disclose and may prevent any other person from disclosing a
mediation communication.
c. 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: (1) the parties to the dispute; (2) the mediator or mediators; (3) the
counsel for the parties: (4) the nonparty participants; (5) any persons hired or engaged in connection with the mediation as
secretary, stenographer; clerk or assistant; and (6) any other person who obtains or possesses confidential information by reason of
his/ her profession.
d. The protection of the ADR Laws shall continue to apply even if a mediator is found to have failed to act impartially.
e. A mediator may not be called to testify to provide information gathered in mediation. A mediator who is wrongfully subpoenaed
shall be reimbursed the full cost of his attorney fees and related expenses.
Rule 10.9. Relief against court action. The order enjoining a person or persons from divulging confidential information shall be
immediately executory and may not be enjoined while the order is being questioned with the appellate courts.
If the court declines to enjoin a person or persons from divulging confidential information, the petitioner may file a motion for
reconsideration or appeal.
Rule 10.10. Consequence of disobedience. Any person who disobeys the order of the court to cease from divulging confidential
information shall be imposed the proper sanction by the court.
RULE 11: CONFIRMATION, CORRECTION OR VACATION OF AWARD IN DOMESTIC ARBITRATION
Rule 11.1. Who may request confirmation, correction or vacation. Any party to a domestic arbitration may petition the court to
confirm, correct or vacate a domestic arbitral award.

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Rule 11.2. When to request confirmation, correction/modification or vacation.

(A) Confirmation. At any time after the lapse of thirty (30) days from receipt by the petitioner of the arbitral award, he may petition
the court to confirm that award.
(B) Correction/Modification. Not later than thirty (30) days from receipt of the arbitral award, a party may petition the court to
correct/modify that award.
(C) Vacation. Not later than thirty (30) days from receipt of the arbitral award, a party may petition the court to vacate that award.
(D) A petition to vacate the arbitral award may be filed, in opposition to a petition to confirm the arbitral award, not later than thirty
(30) days from receipt of the award by the petitioner. A petition to vacate the arbitral award filed beyond the reglementary period
shall be dismissed.
(E) A petition to confirm the arbitral award may be filed, in opposition to a petition to vacate the arbitral award, at any time after the
petition to vacate such arbitral award is filed. The dismissal of the petition to vacate the arbitral award for having been filed beyond
the reglementary period shall not result in the dismissal of the petition for the confirmation of such arbitral award.
(F) The filing of a petition to confirm an arbitral award shall not authorize the filing of a belated petition to vacate or set aside such
award in opposition thereto.
(G) A petition to correct an arbitral award may be included as part of a petition to confirm the arbitral award or as a petition to confirm
that award.
Rule 11.3. Venue. The petition for confirmation, correction/modification or vacation of a domestic arbitral award may be filed with
Regional Trial Court having jurisdiction over the place in which one of the parties is doing business, where any of the parties reside
or where arbitration proceedings were conducted.
Rule 11.4. Grounds. (A) To vacate an arbitral award. The arbitral award may be vacated on the following grounds:
a. The arbitral award was procured through corruption, fraud or other undue means;
b. There was evident partiality or corruption in the arbitral tribunal or any of its members;
c. 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 a hearing upon sufficient cause shown or to hear evidence pertinent and material to the controversy;
d. One or more of the arbitrators was disqualified to act as such under the law and willfully refrained from disclosing such
disqualification; or
e. 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 them was not made.
The award may also be vacated on any or all of the following grounds:
a. The arbitration agreement did not exist, or is invalid for any ground for the revocation of a contract or is otherwise unenforceable;
or
b. A party to arbitration is a minor or a person judicially declared to be incompetent.
The petition to vacate an arbitral award on the ground that the party to arbitration is a minor or a person judicially declared to be
incompetent shall be filed only on behalf of the minor or incompetent and shall allege that (a) the other party to arbitration had
knowingly entered into a submission or agreement with such minor or incompetent, or (b) the submission to arbitration was made by
a guardian or guardian ad litem who was not authorized to do so by a competent court.
In deciding the petition to vacate the arbitral award, the court shall disregard any other ground than those enumerated above.
(B) To correct/modify an arbitral award. The Court may correct/modify or order the arbitral tribunal to correct/modify the arbitral
award in the following cases:
a. Where there was an evident miscalculation of figures or an evident mistake in the description of any person, thing or property
referred to in the award;
b. Where the arbitrators have awarded upon a matter not submitted to them, not affecting the merits of the decision upon the matter
submitted;
c. Where the arbitrators have omitted to resolve an issue submitted to them for resolution; or
d. Where the award is imperfect in a matter of form not affecting the merits of the controversy, and if it had been a commissioners
report, the defect could have been amended or disregarded by the Court.
Rule 11.5. Form of petition. An application to vacate an arbitral award shall be in the form of a petition to vacate or as a petition to
vacate in opposition to a petition to confirm the same award.
An application to correct/modify an arbitral award may be included in a petition to confirm an arbitral award or in a petition to vacate
in opposition to confirm the same award.
When a petition to confirm an arbitral award is pending before a court, the party seeking to vacate or correct/modify said award may
only apply for those reliefs through a petition to vacate or correct/modify the award in opposition to the petition to confirm the award
provided that such petition to vacate or correct/modify is filed within thirty (30) days from his receipt of the award. A petition to vacate
or correct/modify an arbitral award filed in another court or in a separate case before the same court shall be dismissed, upon
appropriate motion, as a violation of the rule against forum-shopping.
When a petition to vacate or correct/modify an arbitral award is pending before a court, the party seeking to confirm said award may
only apply for that relief through a petition to confirm the same award in opposition to the petition to vacate or correct/modify the
award. A petition to confirm or correct/modify an arbitral award filed as separate proceeding in another court or in a different case
before the same court shall be dismissed, upon appropriate motion, as a violation of the rule against forum shopping.

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As an alternative to the dismissal of a second petition for confirmation, vacation or correction/modification of an arbitral award filed in
violation of the non-forum shopping rule, the court or courts concerned may allow the consolidation of the two proceedings in one
court and in one case.
Where the petition to confirm the award and petition to vacate or correct/modify were simultaneously filed by the parties in the same
court or in different courts in the Philippines, upon motion of either party, the court may order the consolidation of the two cases
before either court.
In all instances, the petition must be verified by a person who has knowledge of the jurisdictional facts.
Rule 11.6. Contents of petition. The petition must state the following:
a. The addresses of the parties and any change thereof;
b. The jurisdictional issues raised by a party during arbitration proceedings;
c. The grounds relied upon by the parties in seeking the vacation of the arbitral award whether the petition is a petition for the
vacation or setting aside of the arbitral award or a petition in opposition to a petition to confirm the award; and
d. A statement of the date of receipt of the arbitral award and the circumstances under which it was received by the petitioner.
Apart from other submissions, the petitioner must attach to the petition the following:
a. An authentic copy of the arbitration agreement;
b. An authentic copy of the arbitral award;
c. A certification against forum shopping executed by the applicant in accordance with Section 5 of Rule 7 of the Rules of Court; and
d. An authentic copy or authentic copies of the appointment of an arbitral tribunal.
Rule 11.7. Notice. Upon finding that the petition filed under this Rule is sufficient both in form and in substance, the Court shall
cause notice and a copy of the petition to be delivered to the respondent allowing him to file a comment or opposition thereto within
fifteen (15) days from receipt of the petition. In lieu of an opposition, the respondent may file a petition in opposition to the petition.
The petitioner may within fifteen (15) days from receipt of the petition in opposition thereto file a reply.
Rule 11.8. Hearing. If the Court finds from the petition or petition in opposition thereto that there are issues of fact, it shall require
the parties, within a period of not more than fifteen (15) days from receipt of the order, to simultaneously submit the affidavits of all of
their witnesses and reply affidavits within ten (10) days from receipt of the affidavits to be replied to. There shall be attached to the
affidavits or reply affidavits documents relied upon in support of the statements of fact in such affidavits or reply affidavits.
If the petition or the petition in opposition thereto is one for vacation of an arbitral award, the interested party in arbitration may
oppose the petition or the petition in opposition thereto for the reason that the grounds cited in the petition or the petition in
opposition thereto, assuming them to be true, do not affect the merits of the case and may be cured or remedied. Moreover, the
interested party may request the court to suspend the proceedings for vacation for a period of time and to direct the arbitral tribunal
to reopen and conduct a new hearing and take such other action as will eliminate the grounds for vacation of the award. The
opposition shall be supported by a brief of legal arguments to show the existence of a sufficient legal basis for the opposition.
If the ground of the petition to vacate an arbitral award is that the arbitration agreement did not exist, is invalid or otherwise
unenforceable, and an earlier petition for judicial relief under Rule 3 had been filed, a copy of such petition and of the decision or
final order of the court shall be attached thereto. But if the ground was raised before the arbitral tribunal in a motion to dismiss filed
not later than the submission of its answer, and the arbitral tribunal ruled in favor of its own jurisdiction as a preliminary question
which was appealed by a party to the Regional Trial Court, a copy of the order, ruling or preliminary award or decision of the arbitral
tribunal, the appeal therefrom to the Court and the order or decision of the Court shall all be attached to the petition.
If the ground of the petition is that the petitioner is an infant or a person judicially declared to be incompetent, there shall be attached
to the petition certified copies of documents showing such fact. In addition, the petitioner shall show that even if the submission or
arbitration agreement was entered into by a guardian or guardian ad litem, the latter was not authorized by a competent court to
sign such the submission or arbitration agreement.
If on the basis of the petition, the opposition, the affidavits and reply affidavits of the parties, the court finds that there is a need to
conduct an oral hearing, the court shall set the case for hearing. This case shall have preference over other cases before the court,
except criminal cases. During the hearing, the affidavits of witnesses shall take the place of their direct testimonies and they shall
immediately be subject to cross-examination thereon. The Court shall have full control over the proceedings in order to ensure that
the case is heard without undue delay.
Rule 11.9. Court action. Unless a ground to vacate an arbitral award under Rule 11.5 above is fully established, the court shall
confirm the award.
An arbitral award shall enjoy the presumption that it was made and released in due course of arbitration and is subject to
confirmation by the court
In resolving the petition or petition in opposition thereto in accordance with these Special ADR Rules, the court shall either confirm
or vacate the arbitral award. The court shall not disturb the arbitral tribunals determination of facts and/or interpretation of law.
In a petition to vacate an award or in petition to vacate an award in opposition to a petition to confirm the award, the petitioner may
simultaneously apply with the Court to refer the case back to the same arbitral tribunal for the purpose of making a new or revised
award or to direct a new hearing, or in the appropriate case, order the new hearing before a new arbitral tribunal, the members of
which shall be chosen in the manner provided in the arbitration agreement or submission, or the law. 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.

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In referring the case back to the arbitral tribunal or to a new arbitral tribunal pursuant to Rule 24 of Republic Act No. 876, the court
may not direct it to revise its award in a particular way, or to revise its findings of fact or conclusions of law or otherwise encroach
upon the independence of an arbitral tribunal in the making of a final award.
RULE 12: RECOGNITION AND ENFORCEMENT OR SETTING ASIDE OF AN INTERNATIONALCOMMERCIAL ARBITRATION
AWARD
Rule 12.1. Who may request recognition and enforcement or setting aside. Any party to an international commercial arbitration in
the Philippines may petition the proper court to recognize and enforce or set aside an arbitral award.
Rule 12.2. When to file petition. (A) Petition to recognize and enforce. The petition for enforcement and recognition of an arbitral
award may be filed anytime from receipt of the award. If, however, a timely petition to set aside an arbitral award is filed, the
opposing party must file therein and in opposition thereto the petition for recognition and enforcement of the same award within the
period for filing an opposition.
(B) Petition to set aside. The petition to set aside an arbitral award may only be filed within three (3) months from the time the
petitioner receives a copy thereof. If a timely request is made with the arbitral tribunal for correction, interpretation or additional
award, the three (3) month period shall be counted from the time the petitioner receives the resolution by the arbitral tribunal of that
request.
A petition to set aside can no longer be filed after the lapse of the three (3) month period. The dismissal of a petition to set aside an
arbitral award for being time-barred shall not automatically result in the approval of the petition filed therein and in opposition thereto
for recognition and enforcement of the same award. Failure to file a petition to set aside shall preclude a party from raising grounds
to resist enforcement of the award.
Rule 12.3. Venue. A petition to recognize and enforce or set aside an arbitral award may, at the option of the petitioner, be filed
with the Regional Trial Court: (a) where arbitration proceedings were conducted; (b) where any of the assets to be attached or levied
upon is located; (c) where the act to be enjoined will be or is being performed; (d) where any of the parties to arbitration resides or
has its place of business; or (e) in the National Capital Judicial Region.
Rule 12.4. Grounds to set aside or resist enforcement. The court may set aside or refuse the enforcement of the arbitral award
only if:
a. The party making the application furnishes proof that:
(i). 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 thereof, under Philippine law; or
(ii). The party making the application to set aside or resist enforcement 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 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 only that part of the award which contains decisions on matters submitted to arbitration
may be enforced; or
(iv). 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 Philippine law from which the parties cannot derogate, or, failing such agreement,
was not in accordance with Philippine law;
b. The court finds that:
(i). The subject-matter of the dispute is not capable of settlement by arbitration under the law of the Philippines; or
(ii). The recognition or enforcement of the award would be contrary to public policy.
In deciding the petition, the Court shall disregard any other ground to set aside or enforce the arbitral award other than those
enumerated above.
The petition to set-aside or a pleading resisting the enforcement of an arbitral award on the ground that a party was a minor or an
incompetent shall be filed only on behalf of the minor or incompetent and shall allege that (a) the other party to arbitration had
knowingly entered into a submission or agreement with such minor or incompetent, or (b) the submission to arbitration was made by
a guardian or guardian ad litem who was not authorized to do so by a competent court.
Rule 12.5. Exclusive recourse against arbitral award. Recourse to a court against an arbitral award shall be made only through a
petition to set aside the arbitral award and on grounds prescribed by the law that governs international commercial arbitration. Any
other recourse from the arbitral award, such as by appeal or petition for review or petition for certiorari or otherwise, shall be
dismissed by the court.
Rule 12.6. Form. The application to recognize and enforce or set aside an arbitral award, whether made through a petition to
recognize and enforce or to set aside or as a petition to set aside the award in opposition thereto, or through a petition to set aside
or petition to recognize and enforce in opposition thereto, shall be verified by a person who has personal knowledge of the facts
stated therein.
When a petition to recognize and enforce an arbitral award is pending, the application to set it aside, if not yet time-barred, shall be
made through a petition to set aside the same award in the same proceedings.

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When a timely petition to set aside an arbitral award is filed, the opposing party may file a petition for recognition and enforcement of
the same award in opposition thereto.
Rule 12.7. Contents of petition. (A) Petition to recognize and enforce. The petition to recognize and enforce or petition to set
aside in opposition thereto, or petition to set aside or petition to recognize and enforce in opposition thereto, shall state the following:
a. The addresses of record, or any change thereof, of the parties to arbitration;
b. A statement that the arbitration agreement or submission exists;
c. The names of the arbitrators and proof of their appointment;
d. A statement that an arbitral award was issued and when the petitioner received it; and
e. The relief sought.
Apart from other submissions, the petitioner shall attach to the petition the following:
a. An authentic copy of the arbitration agreement;
b. An authentic copy of the arbitral award;
c. A verification and certification against forum shopping executed by the applicant in accordance with Sections 4 and 5 of Rule 7 of
the Rules of Court; and
d. An authentic copy or authentic copies of the appointment of an arbitral tribunal.
(B) Petition to set aside. The petition to set aside or petition to set aside in opposition to a petition to recognize and enforce an
arbitral award in international commercial arbitration shall have the same contents as a petition to recognize and enforce or petition
to recognize and enforce in opposition to a petition to set aside an arbitral award. In addition, the said petitions should state the
grounds relied upon to set it aside.
Further, if the ground of the petition to set aside is that the petitioner is a minor or found incompetent by a court, there shall be
attached to the petition certified copies of documents showing such fact. In addition, the petitioner shall show that even if the
submission or arbitration agreement was entered into by a guardian or guardian ad litem, the latter was not authorized by a
competent court to sign such the submission or arbitration agreement.
In either case, if another court was previously requested to resolve and/or has resolved, on appeal, the arbitral tribunals preliminary
determination in favor of its own jurisdiction, the petitioner shall apprise the court before which the petition to recognize and enforce
or set aside is pending of the status of the appeal or its resolution.
Rule 12.8. Notice. Upon finding that the petition filed under this Rule is sufficient both in form and in substance, the court shall
cause notice and a copy of the petition to be delivered to the respondent directing him to file an opposition thereto within fifteen (15)
days from receipt of the petition. In lieu of an opposition, the respondent may file a petition to set aside in opposition to a petition to
recognize and enforce, or a petition to recognize and enforce in opposition to a petition to set aside.
The petitioner may within fifteen (15) days from receipt of the petition to set aside in opposition to a petition to recognize and
enforce, or from receipt of the petition to recognize and enforce in opposition to a petition to set aside, file a reply.
Rule 12.9. Submission of documents. If the court finds that the issue between the parties is mainly one of law, the parties may be
required to submit briefs of legal arguments, not more than fifteen (15) days from receipt of the order, sufficiently discussing the
legal issues and the legal basis for the relief prayed for by each of them.
If the court finds from the petition or petition in opposition thereto that there are issues of fact relating to the ground(s) relied upon for
the court to set aside, it shall require the parties within a period of not more than fifteen (15) days from receipt of the order
simultaneously to submit the affidavits of all of their witnesses and reply affidavits within ten (10) days from receipt of the affidavits to
be replied to. There shall be attached to the affidavits or reply affidavits, all documents relied upon in support of the statements of
fact in such affidavits or reply affidavits.
Rule 12.10. Hearing. If on the basis of the petition, the opposition, the affidavits and reply affidavits of the parties, the court finds
that there is a need to conduct an oral hearing, the court shall set the case for hearing. This case shall have preference over other
cases before the court, except criminal cases. During the hearing, the affidavits of witnesses shall take the place of their direct
testimonies and they shall immediately be subject to cross-examination thereon. The court shall have full control over the
proceedings in order to ensure that the case is heard without undue delay.
Rule 12.11. Suspension of proceedings to set aside. The court when asked to set aside an arbitral award may, where appropriate
and upon request by a party, suspend the proceedings for a period of time determined by it to give the arbitral tribunal an
opportunity to resume the arbitral proceedings or to take such other action as in the arbitral tribunals opinion will eliminate the
grounds for setting aside. The court, in referring the case back to the arbitral tribunal may not direct it to revise its award in a
particular way, or to revise its findings of fact or conclusions of law or otherwise encroach upon the independence of an arbitral
tribunal in the making of a final award.
The court when asked to set aside an arbitral award may also, when the preliminary ruling of an arbitral tribunal affirming its
jurisdiction to act on the matter before it had been appealed by the party aggrieved by such preliminary ruling to the court, suspend
the proceedings to set aside to await the ruling of the court on such pending appeal or, in the alternative, consolidate the
proceedings to set aside with the earlier appeal.
Rule 12.12. Presumption in favor of confirmation. It is presumed that an arbitral award was made and released in due course and
is subject to enforcement by the court, unless the adverse party is able to establish a ground for setting aside or not enforcing an
arbitral award.

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Rule 12.13. Judgment of the court. Unless a ground to set aside an arbitral award under Rule 12.4 above is fully established, the
court shall dismiss the petition. If, in the same proceedings, there is a petition to recognize and enforce the arbitral award filed in
opposition to the petition to set aside, the court shall recognize and enforce the award.
In resolving the petition or petition in opposition thereto in accordance with the Special ADR Rules, the court shall either set aside or
enforce the arbitral award. The court shall not disturb the arbitral tribunals determination of facts and/or interpretation of law.
Rule 12.14. Costs. Unless otherwise agreed upon by the parties in writing, at the time the case is submitted to the court for
decision, the party praying for recognition and enforcement or setting aside of an arbitral award shall submit a statement under oath
confirming the costs he has incurred only in the proceedings for such recognition and enforcement or setting aside. The costs shall
include the attorneys fees the 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 include reasonable attorneys fees of the prevailing party
against the unsuccessful party. The court shall determine the reasonableness of the claim for attorneys fees.
RULE 13: RECOGNITION AND ENFORCEMENT OF A FOREIGN ARBITRAL AWARD
Rule 13.1. Who may request recognition and enforcement. Any party to a foreign arbitration may petition the court to recognize
and enforce a foreign arbitral award.
Rule 13.2. When to petition. At any time after receipt of a foreign arbitral award, any party to arbitration may petition the proper
Regional Trial Court to recognize and enforce such award.
Rule 13.3. Venue. The petition to recognize and enforce a foreign arbitral award shall be filed, at the option of the petitioner, with
the Regional Trial Court (a) where the assets to be attached or levied upon is located, (b) where the act to be enjoined is being
performed, (c) in the principal place of business in the Philippines of any of the parties, (d) if any of the parties is an individual,
where any of those individuals resides, or (e) in the National Capital Judicial Region.
Rule 13.4. Governing law and grounds to refuse recognition and enforcement. The recognition and enforcement of a foreign
arbitral award shall be governed by the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards
(the New York Convention) and this Rule. The court may, upon grounds of comity and reciprocity, recognize and enforce a foreign
arbitral award made in a country that is not a signatory to the New York Convention as if it were a Convention Award.
A Philippine court shall not set aside a foreign arbitral award but may refuse it recognition and enforcement on any or all of the
following grounds:
a. The party making the application to refuse recognition and enforcement of the award furnishes proof that:
(i). 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 thereof, under the law of the country where the award was made; or
(ii). 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
(iii). 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 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 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 arbitration took place; or
(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 that
award was made; or
b. The court finds that:
(i). The subject-matter of the dispute is not capable of settlement or resolution by arbitration under Philippine law; or
(ii). The recognition or enforcement of the award would be contrary to public policy.
The court shall disregard any ground for opposing the recognition and enforcement of a foreign arbitral award other than those
enumerated above.
Rule 13.5. Contents of petition. The petition shall state the following:
a. The addresses of the parties to arbitration;
b. In the absence of any indication in the award, the country where the arbitral award was made and whether such country is a
signatory to the New York Convention; and
c. The relief sought.
Apart from other submissions, the petition shall have attached to it the following:
a. An authentic copy of the arbitration agreement; and
b. An authentic copy of the arbitral award.
If the foreign arbitral award or agreement to arbitrate or submission is not made in English, the petitioner shall also attach to the
petition a translation of these documents into English. The translation shall be certified by an official or sworn translator or by a
diplomatic or consular agent.

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Rule 13.6. Notice and opposition. Upon finding that the petition filed under this Rule is sufficient both in form and in substance, the
court shall cause notice and a copy of the petition to be delivered to the respondent allowing him to file an opposition thereto within
thirty (30) days from receipt of the notice and petition.
Rule 13.7. Opposition. The opposition shall be verified by a person who has personal knowledge of the facts stated therein.
Rule 13.8. Submissions. If the court finds that the issue between the parties is mainly one of law, the parties may be required to
submit briefs of legal arguments, not more than thirty (30) days from receipt of the order, sufficiently discussing the legal issues and
the legal bases for the relief prayed for by each other.
If, from a review of the petition or opposition, there are issues of fact relating to the ground/s relied upon for the court to refuse
enforcement, the court shall, motu proprio or upon request of any party, require the parties to simultaneously submit the affidavits of
all of their witnesses within a period of not less than fifteen (15) days nor more than thirty (30) days from receipt of the order. The
court may, upon the request of any party, allow the submission of reply affidavits within a period of not less than fifteen (15) days nor
more than thirty (30) days from receipt of the order granting said request. There shall be attached to the affidavits or reply affidavits
all documents relied upon in support of the statements of fact in such affidavits or reply affidavits.
Rule 13.9. Hearing. The court shall set the case for hearing if on the basis of the foregoing submissions there is a need to do so.
The court shall give due priority to hearings on petitions under this Rule. During the hearing, the affidavits of witnesses shall take the
place of their direct testimonies and they shall immediately be subject to cross-examination. The court shall have full control over the
proceedings in order to ensure that the case is heard without undue delay.
Rule 13.10. Adjournment/deferment of decision on enforcement of award. The court before which a petition to recognize and
enforce a foreign arbitral award is pending, may adjourn or defer rendering a decision thereon if, in the meantime, an application for
the setting aside or suspension of the award has been made with a competent authority in the country where the award was made.
Upon application of the petitioner, the court may also require the other party to give suitable security.
Rule 13.11. Court action. It is presumed that a foreign arbitral award was made and released in due course of arbitration and is
subject to enforcement by the court.
The court shall recognize and enforce a foreign arbitral award unless a ground to refuse recognition or enforcement of the foreign
arbitral award under this rule is fully established.
The decision of the court recognizing and enforcing a foreign arbitral award is immediately executory.
In resolving the petition for recognition and enforcement of a foreign arbitral award in accordance with these Special ADR Rules, the
court shall either [a] recognize and/or enforce or [b] refuse to recognize and enforce the arbitral award. The court shall not disturb
the arbitral tribunals determination of facts and/or interpretation of law.
Rule 13.12. Recognition and enforcement of non-convention award. The court shall, only upon grounds provided by these Special
ADR Rules, recognize and enforce a foreign arbitral award made in a country not a signatory to the New York Convention when
such country extends comity and reciprocity to awards made in the Philippines. If that country does not extend comity and
reciprocity to awards made in the Philippines, the court may nevertheless treat such award as a foreign judgment enforceable as
such under Rule 39, Section 48, of the Rules of Court.
PART III
PROVISIONS SPECIFIC TO MEDIATION
RULE 14: GENERAL PROVISIONS
Rule 14.1. Application of the rules on arbitration. Whenever applicable and appropriate, the pertinent rules on arbitration shall be
applied in proceedings before the court relative to a dispute subject to mediation.
RULE 15: DEPOSIT AND ENFORCEMENT OF MEDIATED SETTLEMENT AGREEMENTS
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 agreement, which resulted from that mediation.
Rule 15.2. When deposit is made. At any time after an agreement is reached, the written settlement agreement may be deposited.
Rule 15.3. Venue. The written 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.
Rule 15.4. Registry Book. The Clerk of Court of each Regional Trial Court shall keep a Registry Book that shall chronologically list
or enroll all the mediated settlement agreements/settlement awards that are deposited with the court as well as the names and
address of the parties thereto and the date of enrollment and shall issue a Certificate of Deposit to the party that made the deposit.

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Rule 15.5. Enforcement of mediated settlement agreement. Any of the parties to a mediated settlement agreement, which was
deposited with the Clerk of Court of the Regional Trial Court, may, upon breach thereof, file a verified petition with the same court to
enforce said agreement.
Rule 15.6. Contents of petition. The verified petition shall:
a. Name and designate, as petitioner or respondent, all parties to the mediated settlement agreement and those who may be
affected by it;
b. State the following:
(i). The addresses of the petitioner and respondents; and
(ii). The ultimate facts that would show that the adverse party has defaulted to perform its obligation under said agreement; and
c. Have attached to it the following:
(i). An authentic copy of the mediated settlement agreement; and
(ii). Certificate of Deposit showing that the mediated settlement agreement was deposited with the Clerk of Court.
Rule 15.7. Opposition. The adverse party may file an opposition, within fifteen (15) days from receipt of notice or service of the
petition, by submitting written proof of compliance with the mediated settlement agreement or such other affirmative or negative
defenses it may have.
Rule 15.8. Court action. After a summary hearing, if the court finds that the agreement is a valid mediated settlement agreement,
that there is no merit in any of the affirmative or negative defenses raised, and the respondent has breached that agreement, in
whole or in part, the court shall order the enforcement thereof; otherwise, it shall dismiss the petition.
PART IV
PROVISIONS SPECIFIC TO CONSTRUCTION ARBITRATION
RULE 16: GENERAL PROVISIONS
Rule 16.1. Application of the rules on arbitration. Whenever applicable and appropriate, the rules on arbitration shall be applied in
proceedings before the court relative to a dispute subject to construction arbitration.
RULE 17: REFERRAL TO CIAC
Rule 17.1. Dismissal of action. A Regional Trial Court before which a construction dispute is filed shall, upon becoming aware that
the parties have entered into an arbitration agreement, motu proprio or upon motion made not later than the pre-trial, dismiss the
case and refer the parties to arbitration to be conducted by the Construction Industry Arbitration Commission (CIAC), unless all
parties to arbitration, assisted by their respective counsel, submit to the court a written agreement making the court, rather than the
CIAC, the body that would exclusively resolve the dispute.
Rule 17.2. Form and contents of motion. The request for dismissal of the civil action and referral to arbitration shall be through a
verified motion that shall (a) contain a statement showing that the dispute is a construction dispute; and (b) be accompanied by
proof of the existence of the arbitration agreement.
If the arbitration agreement or other document evidencing the existence of that agreement is already part of the record, those
documents need not be submitted to the court provided that the movant has cited in the motion particular references to the records
where those documents may be found.
The motion shall also contain a notice of hearing addressed to all parties and shall specify the date and time when the motion will be
heard, which must not be later than fifteen (15) days after the filing of the motion. The movant shall ensure receipt by all parties of
the motion at least three days before the date of the hearing.
Rule 17.3. Opposition. Upon receipt of the motion to refer the dispute to arbitration by CIAC, the other party may file an opposition
to the motion on or before the day such motion is to be heard. The opposition shall clearly set forth the reasons why the court should
not dismiss the case.
Rule 17.4. Hearing. The court shall hear the motion only once and for the purpose of clarifying relevant factual and legal issues.
Rule 17.5. Court action. If the other parties fail to file their opposition on or before the day of the hearing, the court shall motu
proprio resolve the motion only on the basis of the facts alleged in the motion.
After hearing, the court shall dismiss the civil action and refer the parties to arbitration if it finds, based on the pleadings and
supporting documents submitted by the parties, that there is a valid and enforceable arbitration agreement involving a construction
dispute. Otherwise, the court shall proceed to hear the case.
All doubts shall be resolved in favor of the existence of a construction dispute and the arbitration agreement.
Rule 17.6. Referral immediately executory. An order dismissing the case and referring the dispute to arbitration by CIAC shall be
immediately executory.

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Rule 17.7. Multiple actions and parties. The court shall not decline to dismiss the civil action and make a referral to arbitration by
CIAC for any of the following reasons:
a. Not all of the disputes subject of the civil action may be referred to arbitration;
b. Not all of the parties to the civil action are bound by the arbitration agreement and referral to arbitration would result in multiplicity
of suits;
c. The issues raised in the civil action could be speedily and efficiently resolved in its entirety by the Court rather than in arbitration;
d. Referral to arbitration does not appear to be the most prudent action; or
e. Dismissal of the civil action would prejudice the rights of the parties to the civil action who are not bound by the arbitration
agreement.
The court may, however, issue an order directing the inclusion in arbitration of those parties who are bound by the arbitration
agreement directly or by reference thereto pursuant to Section 34 of Republic Act No. 9285.
Furthermore, the court shall issue an order directing the case to proceed with respect to the parties not bound by the arbitration
agreement.
Rule 17.8. Referral If the parties manifest that they have agreed to submit all or part of their dispute pending with the court to
arbitration by CIAC, the court shall refer them to CIAC for arbitration.
PART V
PROVISIONS SPECIFIC TO OTHER FORMS OF ADR
RULE 18: GENERAL PROVISIONS
Rule 18.1. Applicability of rules to other forms of ADR. This rule governs the procedure for matters brought before the court
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.
Rule 18.2. Applicability of the rules on mediation. If the other ADR form/process is more akin to mediation (i.e., the neutral third
party merely assists the parties in reaching a voluntary agreement), the herein rules on mediation shall apply.
Rule 18.3. Applicability of rules on arbitration.-If the other ADR form/process is more akin to arbitration (i.e., the neutral third party
has the power to make a binding resolution of the dispute), the herein rules on arbitration shall apply.
Rule 18.4. 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. At any time during court proceedings, even after pre-trial, the parties may jointly
move for suspension of the action pursuant to Article 2030 of the Civil Code of the Philippines where the possibility of compromise is
shown.
Rule 18.5. 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.
PART VI
MOTION FOR RECONSIDERATION, APPEAL AND CERTIORARI
RULE 19: MOTION FOR RECONSIDERATION, APPEAL AND CERTIORARI
A. MOTION FOR RECONSIDERATION
Rule 19.1. Motion for reconsideration, when allowed. A party may ask the Regional Trial to reconsider its ruling on the following:
a. That the arbitration agreement is inexistent, invalid or unenforceable pursuant to Rule 3.10 (B);
b. Upholding or reversing the arbitral tribunals jurisdiction pursuant to Rule 3.19;
c. Denying a request to refer the parties to arbitration;
d. Granting or denying a party an interim measure of protection;
e. Denying a petition for the appointment of an arbitrator;
f. Refusing to grant assistance in taking evidence;
g. Enjoining or refusing to enjoin a person from divulging confidential information;
h. Confirming, vacating or correcting a domestic arbitral award;
i. Suspending the proceedings to set aside an international commercial arbitral award and referring the case back to the arbitral
tribunal;
j. Setting aside an international commercial arbitral award;
k. Dismissing the petition to set aside an international commercial arbitral award, even if the court does not recognize and/or enforce
the same;
l. Recognizing and/or enforcing, or dismissing a petition to recognize and/or enforce an international commercial arbitral award;

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m. Declining a request for assistance in taking evidence;

n. Adjourning or deferring a ruling on a petition to set aside, recognize and/or enforce an international commercial arbitral award;
o. Recognizing and/or enforcing a foreign arbitral award, or refusing recognition and/or enforcement of the same; and
p. Granting or dismissing a petition to enforce a deposited mediated settlement agreement.
No motion for reconsideration shall be allowed from the following rulings of the Regional Trial Court:
a. A prima facie determination upholding the existence, validity or enforceability of an arbitration agreement pursuant to Rule 3.1 (A);
b. An order referring the dispute to arbitration;
c. An order appointing an arbitrator;
d. Any ruling on the challenge to the appointment of an arbitrator;
e. Any order resolving the issue of the termination of the mandate of an arbitrator; and
f. An order granting assistance in taking evidence.
Rule 19.2. When to move for reconsideration. A motion for reconsideration may be filed with the Regional Trial Court within a nonextendible period of fifteen (15) days from receipt of the questioned ruling or order.
Rule 19.3. Contents and notice. The motion shall be made in writing stating the ground or grounds therefor and shall be filed with
the court and served upon the other party or parties.
Rule 19.4. Opposition or comment. Upon receipt of the motion for reconsideration, the other party or parties shall have a nonextendible period of fifteen (15) days to file his opposition or comment.
Rule 19.5. Resolution of motion. A motion for reconsideration shall be resolved within thirty (30) days from receipt of the
opposition or comment or upon the expiration of the period to file such opposition or comment.
Rule 19.6. No second motion for reconsideration. No party shall be allowed a second motion for reconsideration.
B. GENERAL PROVISIONS ON APPEAL AND CERTIORARI
Rule 19.7. No appeal or certiorari on the merits of an arbitral award. An agreement to refer a dispute to arbitration shall mean that
the arbitral award shall be final and binding. Consequently, a party to an arbitration is precluded from filing an appeal or a petition for
certiorari questioning the merits of an arbitral award.
Rule 19.8. Subject matter and governing rules. The remedy of an appeal through a petition for review or the remedy of a special
civil action of certiorari from a decision of the Regional Trial Court made under the Special ADR Rules shall be allowed in the
instances, and instituted only in the manner, provided under this Rule.
Rule 19.9. Prohibited alternative remedies. Where the remedies of appeal and certiorari are specifically made available to a party
under the Special ADR Rules, recourse to one remedy shall preclude recourse to the other.
Rule 19.10. Rule on judicial review on arbitration in the Philippines. As a general rule, the court can only vacate or set aside the
decision of an arbitral tribunal upon a clear showing that the award suffers from any of the infirmities or grounds for vacating an
arbitral award under Section 24 of Republic Act No. 876 or under Rule 34 of the Model Law in a domestic arbitration, or for setting
aside an award in an international arbitration under Article 34 of the Model Law, or for such other grounds provided under these
Special Rules.
If the Regional Trial Court is asked to set aside an arbitral award in a domestic or international arbitration on any ground other than
those provided in the Special ADR Rules, the court shall entertain such ground for the setting aside or non-recognition of the arbitral
award only if the same amounts to a violation of public policy.
The court shall not set aside or vacate the award of the arbitral tribunal merely on the ground that the arbitral tribunal committed
errors of fact, or of law, or of fact and law, as the court cannot substitute its judgment for that of the arbitral tribunal.
Rule 19.11. Rule on judicial review of foreign arbitral award. The court can deny recognition and enforcement of a foreign arbitral
award only upon the grounds provided in Article V of the New York Convention, but shall have no power to vacate or set aside a
foreign arbitral award.
C. APPEALS TO THE COURT OF APPEALS
Rule 19.12. Appeal to the Court of Appeals. An appeal to the Court of Appeals through a petition for review under this Special
Rule shall only be allowed from the following final orders of the Regional Trial Court:
a. Granting or denying an interim measure of protection;
b. Denying a petition for appointment of an arbitrator;
c. Denying a petition for assistance in taking evidence;
d. Enjoining or refusing to enjoin a person from divulging confidential information;
e. Confirming, vacating or correcting/modifying a domestic arbitral award;
f. Setting aside an international commercial arbitration award;
g. Dismissing the petition to set aside an international commercial arbitration award even if the court does not decide to recognize or
enforce such award;

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h. Recognizing and/or enforcing an international commercial arbitration award;

i. Dismissing a petition to enforce an international commercial arbitration award;
j. Recognizing and/or enforcing a foreign arbitral award;
k. Refusing recognition and/or enforcement of a foreign arbitral award;
l. Granting or dismissing a petition to enforce a deposited mediated settlement agreement; and
m. Reversing the ruling of the arbitral tribunal upholding its jurisdiction.
Rule 19.13. Where to appeal. An appeal under this Rule shall be taken to the Court of Appeals within the period and in the manner
herein provided.
Rule 19.14. When to appeal. The petition for review shall be filed within fifteen (15) days from notice of the decision of the
Regional Trial Court or the denial of the petitioners motion for reconsideration.
Rule 19.15. How appeal taken. Appeal shall be taken by filing a verified petition for review in seven (7) legible copies with the
Court of Appeals, with proof of service of a copy thereof on the adverse party and on the Regional Trial Court. The original copy of
the petition intended for the Court of Appeals shall be marked original by the petitioner.
Upon the filing of the petition and unless otherwise prescribed by the Court of Appeals, the petitioner shall pay to the clerk of court of
the Court of Appeals docketing fees and other lawful fees of P3,500.00 and deposit the sum of P500.00 for costs.
Exemption from payment of docket and other lawful fees and the deposit for costs may be granted by the Court of Appeals upon a
verified motion setting forth valid grounds therefor. If the Court of Appeals denies the motion, the petitioner shall pay the docketing
and other lawful fees and deposit for costs within fifteen days from the notice of the denial.
Rule 19.16. Contents of the Petition. The petition for review shall (a) state the full names of the parties to the case, without
impleading the court or agencies either as petitioners or respondent, (b) contain a concise statement of the facts and issues
involved and the grounds relied upon for the review, (c) be accompanied by a clearly legible duplicate original or a certified true copy
of the decision or resolution of the Regional Trial Court appealed from, together with certified true copies of such material portions of
the record referred to therein and other supporting papers, and (d) contain a sworn certification against forum shopping as provided
in the Rules of Court. The petition shall state the specific material dates showing that it was filed within the period fixed herein.
Rule 19.17. Effect of failure to comply with requirements. The court shall dismiss the petition if it fails to comply with the foregoing
requirements regarding the payment of the docket and other lawful fees, the deposit for costs, proof of service of the petition, the
contents and the documents, which should accompany the petition.
Rule 19.18. Action on the petition. The Court of Appeals may require the respondent to file a comment on the petition, not a
motion to dismiss, within ten (10) days from notice, or dismiss the petition if it finds, upon consideration of the grounds alleged and
the legal briefs submitted by the parties, that the petition does not appear to be prima facie meritorious.
Rule 19.19. Contents of Comment. The comment shall be filed within ten (10) days from notice in seven (7) legible copies and
accompanied by clearly legible certified true copies of such material portions of the record referred to therein together with other
supporting papers. The comment shall (a) point out insufficiencies or inaccuracies in petitioners statement of facts and issues, and
(b) state the reasons why the petition should be denied or dismissed. A copy thereof shall be served on the petitioner, and proof of
such service shall be filed with the Court of Appeals.
Rule 19.20. Due course. If upon the filing of a comment or such other pleading or documents as may be required or allowed by
the Court of Appeals or upon the expiration of the period for the filing thereof, and on the basis of the petition or the records, the
Court of Appeals finds prima facie that the Regional Trial Court has committed an error that would warrant reversal or modification of
the judgment, final order, or resolution sought to be reviewed, it may give due course to the petition; otherwise, it shall dismiss the
same.
Rule 19.21. Transmittal of records. Within fifteen (15) days from notice that the petition has been given due course, the Court of
Appeals may require the court or agency concerned to transmit the original or a legible certified true copy of the entire record of the
proceeding under review. The record to be transmitted may be abridged by agreement of all parties to the proceeding. The Court of
Appeals may require or permit subsequent correction of or addition to the record.
Rule 19.22. Effect of appeal. The appeal shall not stay the award, judgment, final order or resolution sought to be reviewed unless
the Court of Appeals directs otherwise upon such terms as it may deem just.
Rule 19.23. Submission for decision. If the petition is given due course, the Court of Appeals may set the case for oral argument
or require the parties to submit memoranda within a period of fifteen (15) days from notice. The case shall be deemed submitted for
decision upon the filing of the last pleading or memorandum required by the Court of Appeals.
The Court of Appeals shall render judgment within sixty (60) days from the time the case is submitted for decision.
Rule 19.24. Subject of appeal restricted in certain instance. If the decision of the Regional Trial Court refusing to recognize and/or
enforce, vacating and/or setting aside an arbitral award is premised on a finding of fact, the Court of Appeals may inquire only into

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such fact to determine the existence or non-existence of the specific ground under the arbitration laws of the Philippines relied upon
by the Regional Trial Court to refuse to recognize and/or enforce, vacate and/or set aside an award. Any such inquiry into a question
of fact shall not be resorted to for the purpose of substituting the courts judgment for that of the arbitral tribunal as regards the
latters ruling on the merits of the controversy.
Rule 19.25. Party appealing decision of court confirming arbitral award required to post bond. The Court of Appeals shall within
fifteen (15) days from receipt of the petition require the party appealing from the decision or a final order of the Regional Trial Court,
either confirming or enforcing an arbitral award, or denying a petition to set aside or vacate the arbitral award to post a bond
executed in favor of the prevailing party equal to the amount of the award.
Failure of the petitioner to post such bond shall be a ground for the Court of Appeals to dismiss the petition.
D. SPECIAL CIVIL ACTION FOR CERTIORARI
Rule 19.26. Certiorari to the Court of Appeals. When the Regional Trial Court, in making a ruling under the Special ADR Rules,
has acted without or in excess of its jurisdiction, or with grave abuse of discretion amounting to lack or excess of jurisdiction, and
there is no appeal or any plain, speedy, and adequate remedy in the ordinary course of law, a party may file a special civil action for
certiorari to annul or set aside a ruling of the Regional Trial Court.
A special civil action for certiorari may be filed against the following orders of the court.
a. Holding that the arbitration agreement is inexistent, invalid or unenforceable;
b. Reversing the arbitral tribunals preliminary determination upholding its jurisdiction;
c. Denying the request to refer the dispute to arbitration;
d. Granting or refusing an interim relief;
e. Denying a petition for the appointment of an arbitrator;
f. Confirming, vacating or correcting a domestic arbitral award;
g. Suspending the proceedings to set aside an international commercial arbitral award and referring the case back to the arbitral
tribunal;
h. Allowing a party to enforce an international commercial arbitral award pending appeal;
i. Adjourning or deferring a ruling on whether to set aside, recognize and or enforce an international commercial arbitral award;
j. Allowing a party to enforce a foreign arbitral award pending appeal; and
k. Denying a petition for assistance in taking evidence.
Rule 19.27. Form. The petition shall be accompanied by a certified true copy of the questioned judgment, order or resolution of
the Regional Trial Court, copies of all pleadings and documents relevant and pertinent thereto, and a sworn certification of nonforum shopping as provided in the Rules of Court.
Upon the filing of the petition and unless otherwise prescribed by the Court of Appeals, the petitioner shall pay to the clerk of court of
the Court of Appeals docketing fees and other lawful fees of P3,500.00 and deposit the sum of P500.00 for costs. Exemption from
payment of docket and other lawful fees and the deposit for costs may be granted by the Court of Appeals upon a verified motion
setting forth valid grounds therefor. If the Court of Appeals denies the motion, the petitioner shall pay the docketing and other lawful
fees and deposit for costs within fifteen days from the notice of the denial.
Rule 19.28. When to file petition. The petition must be filed with the Court of Appeals within fifteen (15) days from notice of the
judgment, order or resolution sought to be annulled or set aside. No extension of time to file the petition shall be allowed.
Rule 19.29. Arbitral tribunal a nominal party in the petition. The arbitral tribunal shall only be a nominal party in the petition for
certiorari. As nominal party, the arbitral tribunal shall not be required to submit any pleadings or written submissions to the court. The
arbitral tribunal or an arbitrator may, however, submit such pleadings or written submissions if the same serves the interest of
justice.
In petitions relating to the recognition and enforcement of a foreign arbitral award, the arbitral tribunal shall not be included even as
a nominal party. However, the tribunal may be notified of the proceedings and furnished with court processes.
Rule 19.30. Court to dismiss petition. The court shall dismiss the petition if it fails to comply with Rules 19.27 and 19.28 above, or
upon consideration of the ground alleged and the legal briefs submitted by the parties, the petition does not appear to be prima facie
meritorious.
Rule 19.31. Order to comment. If the petition is sufficient in form and substance to justify such process, the Court of Appeals shall
immediately issue an order requiring the respondent or respondents to comment on the petition within a non-extendible period of
fifteen (15) days from receipt of a copy thereof. Such order shall be served on the respondents in such manner as the court may
direct, together with a copy of the petition and any annexes thereto.
Rule 19.32. Arbitration may continue despite petition for certiorari. A petition for certiorari to the court from the action of the
appointing authority or the arbitral tribunal allowed under this Rule shall not prevent the arbitral tribunal from continuing the
proceedings and rendering its award. Should the arbitral tribunal continue with the proceedings, the arbitral proceedings and any
award rendered therein will be subject to the final outcome of the pending petition for certiorari.

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Rule 19.33. Prohibition against injunctions. The Court of Appeals shall not, during the pendency of the proceedings before it,
prohibit or enjoin the commencement of arbitration, the constitution of the arbitral tribunal, or the continuation of arbitration.
Rule 19.34. Proceedings after comment is filed. After the comment is filed, or the time for the filing thereof has expired, the court
shall render judgment granting the relief prayed for or to which the petitioner is entitled, or denying the same, within a non-extendible
period of fifteen (15) days.
Rule 19.35. Service and enforcement of order or judgment. A certified copy of the judgment rendered in accordance with the last
preceding section shall be served upon the Regional Trial Court concerned in such manner as the Court of Appeals may direct, and
disobedience thereto shall be punished as contempt.
E. APPEAL BY CERTIORARI TO THE SUPREME COURT
Rule 19.36. Review discretionary. A review by the Supreme Court is not a matter of right, but of sound judicial discretion, which
will be granted only for serious and compelling reasons resulting in grave prejudice to the aggrieved party. The following, while
neither controlling nor fully measuring the courts discretion, indicate the serious and compelling, and necessarily, restrictive nature
of the grounds that will warrant the exercise of the Supreme Courts discretionary powers, when the Court of Appeals:
a. Failed to apply the applicable standard or test for judicial review prescribed in these Special ADR Rules in arriving at its decision
resulting in substantial prejudice to the aggrieved party;
b. Erred in upholding a final order or decision despite the lack of jurisdiction of the court that rendered such final order or decision;
c. Failed to apply any provision, principle, policy or rule contained in these Special ADR Rules resulting in substantial prejudice to
the aggrieved party; and
d. Committed an error so egregious and harmful to a party as to amount to an undeniable excess of jurisdiction.
The mere fact that the petitioner disagrees with the Court of Appeals determination of questions of fact, of law or both questions of
fact and law, shall not warrant the exercise of the Supreme Courts discretionary power. The error imputed to the Court of Appeals
must be grounded upon any of the above prescribed grounds for review or be closely analogous thereto.
A mere general allegation that the Court of Appeals has committed serious and substantial error or that it has acted with grave
abuse of discretion resulting in substantial prejudice to the petitioner without indicating with specificity the nature of such error or
abuse of discretion and the serious prejudice suffered by the petitioner on account thereof, shall constitute sufficient ground for the
Supreme Court to dismiss outright the petition.
Rule 19.37. Filing of petition with Supreme Court. A party desiring to appeal by certiorari from a judgment or final order or
resolution of the Court of Appeals issued pursuant to these Special ADR Rules may file with the Supreme Court a verified petition for
review on certiorari. The petition shall raise only questions of law, which must be distinctly set forth.
Rule 19.38. Time for filing; extension. The petition shall be filed within fifteen (15) days from notice of the judgment or final order
or resolution appealed from, or of the denial of the petitioners motion for new trial or reconsideration filed in due time after notice of
the judgment.
On motion duly filed and served, with full payment of the docket and other lawful fees and the deposit for costs before the expiration
of the reglementary period, the Supreme Court may for justifiable reasons grant an extension of thirty (30) days only within which to
file the petition.
Rule 19.39. Docket and other lawful fees; proof of service of petition. Unless he has theretofore done so or unless the Supreme
Court orders otherwise, the petitioner shall pay docket and other lawful fees to the clerk of court of the Supreme Court of P3,500.00
and deposit the amount of P500.00 for costs at the time of the filing of the petition. Proof of service of a copy thereof on the lower
court concerned and on the adverse party shall be submitted together with the petition.
Rule 19.40. Contents of petition. The petition shall be filed in eighteen (18) copies, with the original copy intended for the court
being indicated as such by the petitioner, and shall (a) state the full name of the appealing party as the petitioner and the adverse
party as respondent, without impleading the lower courts or judges thereof either as petitioners or respondents; (b) indicate the
material dates showing when notice of the judgment or final order or resolution subject thereof was received, when a motion for new
trial or reconsideration, if any, was filed and when notice of the denial thereof was received; (c) set forth concisely a statement of the
matters involved, and the reasons or arguments relied on for the allowance of the petition; (d) be accompanied by a clearly legible
duplicate original, or a certified true copy of the judgment or final order or resolution certified by the clerk of court of the court a quo
and the requisite number of plain copies thereof, and such material portions of the record as would support the petition; and (e)
contain a sworn certification against forum shopping.
Rule 19.41. Dismissal or denial of petition. The failure of the petitioner to comply with any of the foregoing requirements regarding
the payment of the docket and other lawful fees, deposit for costs, proof of service of the petition, and the contents of and the
documents which should accompany the petition shall be sufficient ground for the dismissal thereof.
The Supreme Court may on its own initiative deny the petition on the ground that the appeal is without merit, or is prosecuted
manifestly for delay, or that the questions raised therein are too insubstantial to require consideration.
Rule 19.42. Due course; elevation of records. If the petition is given due course, the Supreme Court may require the elevation of
the complete record of the case or specified parts thereof within fifteen (15) days from notice.

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PART VII
FINAL PROVISIONS
RULE 20: FILING AND DEPOSIT FEES
Rule 20.1. Filing fee in petitions or counter-petitions to confirm or enforce, vacate or set aside arbitral award or for the enforcement
of a mediated settlement agreement. The filing fee for filing a petition to confirm or enforce, vacate or set aside an arbitral award in
a domestic arbitration or in an international commercial arbitration, or enforce a mediated settlement agreement shall be as follows:
PhP 10,000.00 if the award does not exceed PhP 1,000,000.00
PhP 20,000.00 if the award does not exceed PhP 20,000,000.00
PhP 30,000.00 if the award does not exceed PhP 50,000,000.00
PhP 40,000.00 if the award does not exceed PhP 100,000,000.00
PhP 50,000.00 if the award exceeds PhP 100,000,000.00
The minimal filing fee payable in all other actions not involving property shall be paid by the petitioner seeking to
enforce foreign arbitral awards under the New York Convention in the Philippines.
Rule 20.2. Filing fee for action to enforce as a counter-petition. A petition to enforce an arbitral award in a domestic arbitration or in
an international commercial arbitration submitted as a petition to enforce and/or recognize an award in opposition to a timely petition
to vacate or set aside the arbitral award shall require the payment of the filing fees prescribed in Rule 20.1 above.
Rule 20.3. Deposit fee for mediated settlement agreements. Any party to a mediated settlement agreement who deposits it with
the clerk of court shall pay a deposit fee of P500.00.
Rule 20.4. Filing fee for other proceedings. The filing fee for the filing of any other proceedings, including applications for interim
relief, as authorized under these Special Rules not covered under any of the foregoing provisions, shall be P10,000.00.
RULE 21: COSTS
Rule 21.1. Costs. The costs of the ADR proceedings shall be borne by the parties equally unless otherwise agreed upon or
directed by the arbitrator or arbitral tribunal.
Rule 21.2. On the dismissal of a petition against a ruling of the arbitral tribunal on a preliminary question upholding its jurisdiction .
If the Regional Trial Court dismisses the petition against the ruling of the arbitral tribunal on a preliminary question upholding its
jurisdiction, it shall also order the petitioner to pay the respondent all reasonable costs and expenses incurred in opposing the
petition. Costs shall include reasonable attorneys fees. The court shall award costs upon application of the respondent after the
petition is denied and the court finds, based on proof submitted by respondent, that the amount of costs incurred is reasonable.
Rule 21.3. On recognition and enforcement of a foreign arbitral award. At the time the case is submitted to the court for decision,
the party praying for recognition and enforcement of a foreign arbitral award shall submit a statement under oath confirming the
costs he has incurred only in the proceedings in the Philippines for such recognition and enforcement or setting-aside. The costs
shall include attorneys fees the 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 include the reasonable attorneys fees of the prevailing party
against the unsuccessful party. The court shall determine the reasonableness of the claim for attorneys fees.
Rule 21.4. Costs. At the time the case is submitted to the court for decision, the party praying for confirmation or vacation of an
arbitral award shall submit a statement under oath confirming the costs he has incurred only in the proceedings for confirmation or
vacation of an arbitral award. The costs shall include the attorneys fees the party has paid or is committed to pay to his counsel of
record.
The prevailing party shall be entitled to an award of costs with respect to the proceedings before the court, which shall include the
reasonable attorneys fees of the prevailing party against the unsuccessful party. The court shall determine the reasonableness of
the claim for attorneys fees.
Rule 21.5. Bill of Costs. Unless otherwise agreed upon by the parties in writing, at the time the case is submitted to the court for
decision, the party praying for recognition and enforcement or for setting aside an arbitral award shall submit a statement under oath
confirming the costs he has incurred only in the proceedings for such recognition and enforcement or setting-aside. The costs shall
include attorneys fees the 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 include reasonable attorneys fees of the prevailing party
against the unsuccessful party. The court shall determine the reasonableness of the claim for attorneys fees.
Rule 21.6. Governments exemption from payment of fees. The Republic of the Philippines, its agencies and instrumentalities are
exempt from paying legal fees provided in these Special ADR Rules. Local governments and government controlled corporation with
or with or without independent charters are not exempt from paying such fees.
RULE 22: APPLICABILITY OF THE RULES OF COURT

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Rule 22.1. Applicability of Rules of Court. The provisions of the Rules of Court that are applicable to the proceedings enumerated
in Rule 1.1 of these Special ADR Rules have either been included and incorporated in these Special ADR Rules or specifically
referred to herein.
In connection with the above proceedings, the Rules of Evidence shall be liberally construed to achieve the objectives of the Special
ADR Rules.
RULE 23: SEPARABILITY
Rule 23.1. Separability Clause. If, for any reason, any part of the Special ADR Rules shall be held unconstitutional or invalid, other
Rules or provisions hereof which are not affected thereby, shall continue to be in full force and effect.
RULE 24: TRANSITORY PROVISIONS
Rule 24.1. Transitory Provision. Considering its procedural character, the Special ADR Rules shall be applicable to all pending
arbitration, mediation or other ADR forms covered by the ADR Act, unless the parties agree otherwise. The Special ADR Rules,
however, may not prejudice or impair vested rights in accordance with law.
RULE 25: ONLINE DISPUTE RESOLUTION
Rule 25.1. Applicability of the Special ADR Rules to Online Dispute Resolution. Whenever applicable and appropriate, the Special
ADR Rules shall govern the procedure for matters brought before the court involving Online Dispute Resolution.
Rule 25.2. Scope of Online Dispute Resolution. Online Dispute Resolution shall refer to all electronic forms of ADR including the
use of the internet and other web or computed based technologies for facilitating ADR.
RULE 26: EFFECTIVITY
Rule 26.1. Effectivity. The Special ADR Rules shall take effect fifteen (15) days after its complete publication in two (2)
newspapers of general circulation.
RULE A: GUIDELINES FOR THE RESOLUTION OF ISSUES RELATED TO ARBITRATION OF LOANS SECURED BY
COLLATERAL
Rule A.1. Applicability of an arbitration agreement in a contract of loan applies to the accessory contract securing the loan . An
arbitration agreement in a contract of loan extends to and covers the accessory contract securing the loan such as a pledge or a
mortgage executed by the borrower in favor of the lender under that contract of loan.
Rule A.2. Foreclosure of pledge or extra-judicial foreclosure of mortgage not precluded by arbitration . The commencement of the
arbitral proceeding under the contract of loan containing an arbitration agreement shall not preclude the lender from availing himself
of the right to obtain satisfaction of the loan under the accessory contract by foreclosure of the thing pledged or by extra-judicial
foreclosure of the collateral under the real estate mortgage in accordance with Act No. 3135.
The lender may likewise institute foreclosure proceedings against the collateral securing the loan prior to the commencement of the
arbitral proceeding.
By agreeing to refer any dispute under the contract of loan to arbitration, the lender who is secured by an accessory contract of real
estate mortgage shall be deemed to have waived his right to obtain satisfaction of the loan by judicial foreclosure.
Rule A.3. Remedy of the borrower against an action taken by the lender against the collateral before the constitution of the arbitral
tribunal. The borrower providing security for the payment of his loan who is aggrieved by the action taken by the lender against the
collateral securing the loan may, if such action against the collateral is taken before the arbitral tribunal is constituted, apply with the
appropriate court for interim relief against any such action of the lender. Such interim relief may be obtained only in a special
proceeding for that purpose, against the action taken by the lender against the collateral, pending the constitution of the arbitral
tribunal. Any determination made by the court in that special proceeding pertaining to the merits of the controversy, including the
right of the lender to proceed against the collateral, shall be only provisional in nature.
After the arbitral tribunal is constituted, the court shall stay its proceedings and defer to the jurisdiction of the arbitral tribunal over
the entire controversy including any question regarding the right of the lender to proceed against the collateral.
Rule A.4. Remedy of borrower against action taken by the lender against the collateral after the arbitral tribunal has been
constituted. After the arbitral tribunal is constituted, the borrower providing security for the payment of his loan who is aggrieved by
the action taken by the lender against the collateral securing the loan may apply to the arbitral tribunal for relief, including a claim for
damages, against such action of the lender. An application to the court may also be made by the borrower against any action taken
by the lender against the collateral securing the loan but only if the arbitral tribunal cannot act effectively to prevent an irreparable
injury to the rights of such borrower during the pendency of the arbitral proceeding.
An arbitration agreement in a contract of loan precludes the borrower therein providing security for the loan from filing and/or
proceeding with any action in court to prevent the lender from foreclosing the pledge or extra-judicially foreclosing the mortgage. If
any such action is filed in court, the lender shall have the right provided in the Special ADR Rules to have such action stayed on
account of the arbitration agreement.

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Rule A.5. Relief that may be granted by the arbitral tribunal. The arbitral tribunal, in aid of the arbitral proceeding before it, may
upon submission of adequate security, suspend or enjoin the lender from proceeding against the collateral securing the loan
pending final determination by the arbitral tribunal of the dispute brought to it for decision under such contract of loan.
The arbitral tribunal shall have the authority to resolve the issue of the validity of the foreclosure of the thing pledged or of the
extrajudicial foreclosure of the collateral under the real estate mortgage if the same has not yet been foreclosed or confirm the
validity of such foreclosure if made before the rendition of the arbitral award and had not been enjoined.
Rule A.6. Arbitration involving a third-party provider of security. An arbitration agreement contained in a contract of loan between
the lender and the borrower extends to and covers an accessory contract securing the loan, such as a pledge, mortgage, guaranty
or suretyship, executed by a person other than the borrower only if such third-party securing the loan has agreed in the accessory
contract, either directly or by reference, to be bound by such arbitration agreement.
Unless otherwise expressly agreed upon by the third-party securing the loan, his agreement to be bound by the arbitration
agreement in the contract of loan shall pertain to disputes arising from or in connection with the relationship between the lender and
the borrower as well as the relationship between the lender and such third-party including the right of the lender to proceed against
the collateral securing the loan, but shall exclude disputes pertaining to the relationship exclusively between the borrower and the
provider of security such as that involving a claim by the provider of security for indemnification against the borrower.
In this multi-party arbitration among the lender, the borrower and the third party securing the loan, the parties may agree to submit to
arbitration before a sole arbitrator or a panel of three arbitrators to be appointed either by an Appointing Authority designated by the
parties in the arbitration agreement or by a default Appointing Authority under the law.
In default of an agreement on the manner of appointing arbitrators or of constituting the arbitral tribunal in such multi-party
arbitration, the dispute shall be resolved by a panel of three arbitrators to be designated by the Appointing Authority under the law.
But even in default of an agreement on the manner of appointing an arbitrator or constituting an arbitral tribunal in a multi-party
arbitration, if the borrower and the third party securing the loan agree to designate a common arbitrator, arbitration shall be decided
by a panel of three arbitrators: one to be designated by the lender; the other to be designated jointly by the borrower and the
provider of security who have agreed to designate the same arbitrator; and a third arbitrator who shall serve as the chairperson of
the arbitral panel to be designated by the two party-designated arbitrators.

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