Republic of the Philippines SEC. 3. Definition of Terms.

- For purposes of this Act, the term:

Congress of the Philippines
Metro Manila (a) "Alternative Dispute Resolution System" means any process or
procedure used to resolve a dispute or controversy, other than by
Twelfth Congress adjudication of a presiding judge of a court or an officer of a
Third Regular Session 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;

Begun and held in Metro Manila, on Monday, the twenty-eight day of July, (b) "ADR Provider" means institutions or persons accredited as
two thousand three. mediator, conciliator, arbitrator, neutral evaluator, or any person
exercising similar functions in any Alternative Dispute Resolution
Republic Act No. 9285 April 2, 2004 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.
AN ACT TO INSTITUTIONALIZE THE USE OF AN ALTERNATIVE
DISPUTE RESOLUTION SYSTEM IN THE PHILIPPINES AND TO
ESTABLISH THE OFFICE FOR ALTERNATIVE DISPUTE RESOLUTION, Whenever reffered to in this Act, the term "ADR practitioners" shall
AND FOR OTHER PURPOSES refer to individuals acting as mediator, conciliator, arbitrator or
neutral evaluator;
Be it enacted by the Senate and House of Representatives of the Philippines
in Congress assembled: (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
CHAPTER 1 - GENERAL PROVISIONS of a record or term;

SECTION 1. Title. - This act shall be known as the "Alternative Dispute (d) "Arbitration" means a voluntary dispute resolution process in
Resolution Act of 2004." which one or more arbitrators, appointed in accordance with the
agreement of the parties, or rules promulgated pursuant to this Act,
SEC. 2. Declaration of Policy. - it is hereby declared the policy of the State resolve a dispute by rendering an award;
to actively promote party autonomy in the resolution of disputes or the
freedom of the party to make their own arrangements to resolve their (e) "Arbitrator" means the person appointed to render an award,
disputes. Towards this end, the State shall encourage and actively promote alone or with others, in a dispute that is the subject of an arbitration
the use of Alternative Dispute Resolution (ADR) as an important means to agreement;
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 (f) "Award" means any partial or final decision by an arbitrator in
State shall enlist active private sector participation in the settlement of resolving the issue in a controversy;
disputes through ADR. This Act shall be without prejudice to the adoption by
the Supreme Court of any ADR system, such as mediation, conciliation, (g) "Commercial Arbitration" An arbitration is "commercial if it covers
arbitration, or any combination thereof as a means of achieving speedy and matter arising from all relationships of a commercial nature, whether
efficient means of resolving cases pending before all courts in the Philippines contractual or not;
which shall be governed by such rules as the Supreme Court may approve
from time to time. (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 The term foreigner arbitrator shall mean a person who is not a
information shall not be disclosed. It shall include (1) communication, national of the Philippines.
oral or written, made in a dispute resolution proceedings, including
any memoranda, notes or work product of the neutral party or non- (q) "Mediation" means a voluntary process in which a mediator,
party participant, as defined in this Act; (2) an oral or written selected by the disputing parties, facilitates communication and
statement made or which occurs during mediation or for purposes of negotiation, and assist the parties in reaching a voluntary agreement
considering, conducting, participating, initiating, continuing of regarding a dispute.
reconvening mediation or retaining a mediator; and (3) pleadings,
motions manifestations, witness statements, reports filed or (r) "Mediator" means a person who conducts mediation;
submitted in an arbitration or for expert evaluation;
(s) "Mediation Party" means a person who participates in a mediation
(i) "Convention Award" means a foreign arbitral award made in a
and whose consent is necessary to resolve the dispute;
Convention State;
(t) "Mediation-Arbitration" or Med-Arb is a step dispute resolution
(j) "Convention State" means a State that is a member of the New
process involving both mediation and arbitration;
York Convention;
(u) "Mini-Trial" means a structured dispute resolution method in
(k) "Court" as referred to in Article 6 of the Model Law shall mean a which the merits of a case are argued before a panel comprising
Regional Trial Court;
senior decision makers with or without the presence of a neutral third
person after which the parties seek a negotiated settlement;
(l) "Court-Annexed Mediation" means any mediation process
conducted under the auspices of the court, after such court has (v) "Model Law" means the Model Law on International Commercial
acquired jurisdiction of the dispute; Arbitration adopted by the United Nations Commission on
International Trade Law on 21 June 1985;
(m) "Court-Referred Mediation" means mediation ordered by a court
to be conducted in accordance with the Agreement of the Parties
(w) "New York Convention" means the United Nations Convention on
when as action is prematurely commenced in violation of such the Recognition and Enforcement of Foreign Arbitral Awards
agreement;
approved in 1958 and ratified by the Philippine Senate under Senate
Resolution No. 71;
(n) "Early Neutral Evaluation" means an ADR process wherein
parties and their lawyers are brought together early in a pre-trial (x) "Non-Convention Award" means a foreign arbitral award made in
phase to present summaries of their cases and receive a nonbinding a State which is not a Convention State;
assessment by an experienced, neutral person, with expertise in the
subject in the substance of the dispute;
(y) "Non-Convention State" means a State that is not a member of
the New York Convention.
(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 (z) "Non-Party Participant" means a person, other than a party or
agencies and instrumentalities, or private persons; mediator, who participates in a mediation proceeding as a witness,
resource person or expert;
(p) "International Party" shall mean an entity whose place of
business is outside the Philippines. It shall not include a domestic (aa) "Proceeding" means a judicial, administrative, or other
subsidiary of such international party or a coventurer in a joint adjudicative process, including related pre-hearing motions,
venture with a party which has its place of business in the conferences and discovery;
Philippines.
 (bb) "Record" means an information written on a tangible medium or (b) A party, a mediator, or a nonparty participant may refuse to
stored in an electronic or other similar medium, retrievable form; and disclose and may prevent any other person from disclosing a
mediation communication.
(cc) "Roster" means a list of persons qualified to provide ADR
services as neutrals or to serve as arbitrators. (c) Confidential Information shall not be subject to discovery and
shall be inadmissible if any adversarial proceeding, whether judicial
SEC. 4. Electronic Signatures in Global and E-Commerce Act. - The or quasi-judicial, However, evidence or information that is otherwise
provisions of the Electronic Signatures in Global and E-Commerce Act, and admissible or subject to discovery does not become inadmissible or
its implementing Rules and Regulations shall apply to proceeding protected from discovery solely by reason of its use in a mediation.
contemplated in this Act.
(d) In such an adversarial proceeding, the following persons involved
SEC. 5. Liability of ADR Provider and Practitioner. - The ADR providers or previously involved in a mediation may not be compelled to
and practitioners shall have the same civil liability for the Acts done in the disclose confidential information obtained during mediation: (1) the
performance of then duties as that of public officers as provided in Section 38 parties to the dispute; (2) the mediator or mediators; (3) the counsel
(1), Chapter 9, Book of the Administrative Code of 1987. for the parties; (4) the nonparty participants; (5) any persons hired or
engaged in connection with the mediation as secretary,
SEC. 6. Exception to the Application of this Act. - The provisions of this stenographer, clerk or assistant; and (6) any other person who
Act shall not apply to resolution or settlement of the following: (a) labor obtains or possesses confidential information by reason of his/her
disputes covered by Presidential Decree No. 442, otherwise known as the profession.
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) (e) The protections of this Act shall continue to apply even of a
any ground for legal separation; (e) the jurisdiction of courts; (f) future mediator is found to have failed to act impartially.
legitime; (g) criminal liability; and (h) those which by law cannot be
compromised. (f) a mediator may not be called to testify to provide information
gathered in mediation. A mediator who is wrongfully subpoenaed
CHAPTER 2 - MEDIATION shall be reimbursed the full cost of his attorney's fees and related
expenses.
SEC. 7. Scope. - The provisions of this Chapter shall cover voluntary
mediation, whether ad hoc or institutional, other than court-annexed. The SEC. 10. Waiver of Confidentiality. - A privilege arising from the
term "mediation' shall include conciliation. confidentiality of information may be waived in a record, or orally during a
proceeding by the mediator and the mediation parties.
SEC. 8. Application and Interpretation. - In applying construing the
provisions of this Chapter, consideration must be given to the need to A privilege arising from the confidentiality of information may likewise be
promote candor or parties and mediators through confidentiality of the waived by a nonparty participant if the information is provided by such
mediation process, the policy of fostering prompt, economical, and amicable nonparty participant.
resolution of disputes in accordance with the principles of integrity of
determination by the parties, and the policy that the decision-making A person who discloses confidential information shall be precluded from
authority in the mediation process rests with the parties. 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
SEC. 9. Confidentiality of Information. - Information obtained through previously disclosed information. If a person suffers loss or damages in a
mediation proceedings shall be subject to the following principles and judicial proceeding against the person who made the disclosure.
guidelines:
A person who discloses or makes a representation about a mediation is
(a) Information obtained through mediation shall be privileged and preclude from asserting the privilege under Section 9, to the extent that the
confidential. communication prejudices another person in the proceeding and it is
necessary for the person prejudiced to respond to the representation of confidentiality, and the mediation communication is sought or offered
disclosure. in:

SEC. 11. Exceptions to Privilege. - (1) a court proceeding involving a crime or felony; or

(a) There is no privilege against disclosure under Section 9 if (2) a proceeding to prove a claim or defense that under the
mediation communication is: law is sufficient to reform or avoid a liability on a contract
arising out of the mediation.
(1) in an agreement evidenced by a record authenticated by
all parties to the agreement; (c) A mediator may not be compelled to provide evidence of a
mediation communication or testify in such proceeding.
(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, (d) If a mediation communication is not privileged under an exception
to the public; in subsection (a) or (b), only the portion of the communication
necessary for the application of the exception for nondisclosure may
(3) a threat or statement of a plan to inflict bodily injury or be admitted. The admission of particular evidence for the limited
commit a crime of violence; purpose of an exception does not render that evidence, or any other
mediation communication, admissible for any other purpose.
(4) internationally used to plan a crime, attempt to commit, or
commit a crime, or conceal an ongoing crime or criminal SEC. 12. Prohibited Mediator Reports. - A mediator may not make a
activity; 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:
(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 (a) Where the mediation occurred or has terminated, or where a
protected by law; but this exception does not apply where a settlement was reached.
child protection matter is referred to mediation by a court or
a public agency participates in the child protection mediation; (b) As permitted to be disclosed under Section 13 of this Chapter.

(6) sought or offered to prove or disprove a claim or SEC. 13. Mediator's Disclosure and Conflict of Interest. - The mediation
complaint of professional misconduct or malpractice filed shall be guided by the following operative principles:
against mediator in a proceeding; or
(a) Before accepting a mediation, an individual who is requested to
(7) sought or offered to prove or disprove a claim of serve as a mediator shall:
complaint of professional misconduct of malpractice filed
against a party, nonparty participant, or representative of a (1) make an inquiry that is reasonable under the
party based on conduct occurring during a mediation. circumstances to determinate whether there are any known
facts that a reasonable individual would consider likely to
(b) There is no privilege under Section 9 if a court or administrative affect the impartiality of the mediator, including a financial or
agency, finds, after a hearing in camera, that the party seeking personal interest in the outcome of the mediation and any
discovery of the proponent of the evidence has shown that the existing or past relationship with a party or foreseeable
evidence is not otherwise available, that there is a need for the participant in the mediation; and
evidence that substantially outweighs the interest in protecting
 (2) disclosure to the mediation parties any such fact known The parties and their respective counsels shall endeavor to make the
or learned as soon as is practical before accepting a terms and condition thereof complete and make adequate provisions
mediation. for the contingency of breach to avoid conflicting interpretations of
the agreement.
(b) If a mediation learns any fact described in paragraph (a) (1) of
this section after accepting a mediation, the mediator shall disclose it (b) The parties and their respective counsels, if any, shall sign the
as soon as practicable. settlement agreement. The mediator shall certify that he/she
explained the contents of the settlement agreement to the parties in
At the request of a mediation party, an individual who is requested to serve a language known to them.
as mediator shall disclose his/her qualifications to mediate a dispute.
(c) If the parties so desire, they may deposit such settlement
This Act does not require that a mediator shall have special qualifications by agreement with the appropriate Clerk of a Regional Trial Court of the
background or profession unless the special qualifications of a mediator are place where one of the parties resides. Where there is a need to
required in the mediation agreement or by the mediation parties. enforce the settlement agreement, a petition may be filed by any of
the parties with the same court, in which case, the court shall
SEC. 14. Participation in Mediation. - Except as otherwise provided in this proceed summarily to hear the petition, in accordance with such
rules of procedure as may be promulgated by the Supreme Court.
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 (d) The parties may agree in the settlement agreement that the
rescinded at any time. mediator shall become a sole arbitrator for the dispute and shall treat
the settlement agreement as an arbitral award which shall be subject
SEC. 15. Place of Mediation. - The parties are free to agree on the place of to enforcement under Republic Act No. 876, otherwise known as the
mediation. Failing such agreement, the place of mediation shall be any place Arbitration Law, notwithstanding the provisions of Executive Order
convenient and appropriate to all parties. No. 1008 for mediated dispute outside of the CIAC.

CHAPTER 3 - OTHER ADR FORMS

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 SEC. 18. Referral of Dispute to other ADR Forms. - The parties may agree
and administrative policies of such institution. Further, an agreement to to refer one or more or all issues arising in a dispute or during its pendency
submit a dispute to mediation under international mediation rule shall be to other forms of ADR such as but not limited to (a) the evaluation of a third
deemed to include an agreement to have such rules govern the mediation of person or (b) a mini-trial, (c) mediation-arbitration, or a combination thereof.
the dispute and for the mediator, the parties, their respective counsel, and
nonparty participants to abide by such rules. 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
In case of conflict between the institutional mediation rules and the provisions case it shall likewise be governed by Chapter 5 of this Act.
of this Act, the latter shall prevail.
CHAPTER 4 - INTERNATIONAL COMMERCIAL ARBITRATION
SEC. 17. Enforcement of Mediated Settlement Agreement. - The
mediation shall be guided by the following operative principles: SEC. 19. Adoption of the Model Law on International Commercial
Arbitration. - International commercial arbitration shall be governed by the
(a) A settlement agreement following successful mediation shall be Model Law on International Commercial Arbitration (the "Model Law")
prepared by the parties with the assistance of their respective adopted by the United Nations Commission on International Trade Law on
counsel, if any, and by the mediator. 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, is commenced by or against multiple parties, one or more of whom are
regard shall be had to its international origin and to the need for uniformity in parties who are bound by the arbitration agreement although the civil action
its interpretation and resort may be made to the travaux preparatories and may continue as to those who are not bound by such arbitration agreement.
the report of the Secretary General of the United Nations Commission on
International Trade Law dated March 25, 1985 entitled, "International SEC. 26. Meaning of "Appointing Authority.". - "Appointing Authority" as
Commercial Arbitration: Analytical Commentary on Draft Trade identified by used in the Model Law shall mean the person or institution named in the
reference number A/CN. 9/264." arbitration agreement as the appointing authority; or the regular arbitration
arbitration institution under whose rules the arbitration is agreed to be
SEC. 21. Commercial Arbitration. - An arbitration is "commercial" if it conducted. Where the parties have agreed to submit their dispute to
covers matters arising from all relationships of a commercial nature, whether institutional arbitration rules, and unless they have agreed to a different
contractual or not. Relationships of a transactions: any trade transaction for procedure, they shall be deemed to have agreed to procedure under such
the supply or exchange of goods or services; distribution agreements; arbitration rules for the selection and appointment of arbitrators. In ad hoc
construction of works; commercial representation or agency; factoring; arbitration, the default appointment of an arbitrator shall be made by the
leasing, consulting; engineering; licensing; investment; financing; banking; National President of the Integrated Bar of the Philippines (IBP) or his duly
insurance; joint venture and other forms of industrial or business cooperation; authorized representative.
carriage of goods or passengers by air, sea, rail or road.
SEC. 27. What Functions May be Performed by Appointing Authority. -
SEC. 22. Legal Representation in International Arbitration. - In The functions referred to in Articles 11(3), 11(4), 13(3) and 14(1) of the
international arbitration conducted in the Philippines, a party may be Model Law shall be performed by the Appointing Authority, unless the latter
presented by any person of his choice. Provided, that such representative, shall fail or refuse to act within thirty (30) days from receipt of the request in
unless admitted to the practice of law in the Philippines, shall not be which case the applicant may renew the application with the Court.
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 SEC. 28. Grant of Interim Measure of Protection. -
in which he appears.
(a) It is not incompatible with an arbitration agreement for a party to
SEC. 23. Confidential of Arbitration Proceedings. - The arbitration request, before constitution of the tribunal, from a Court an interim
proceedings, including the records, evidence and the arbitral award, shall be measure of protection and for the Court to grant such measure. After
considered confidential and shall not be published except (1) with the constitution of the arbitral tribunal and during arbitral proceedings, a
consent of the parties, or (2) for the limited purpose of disclosing to the court request for an interim measure of protection or modification thereof,
of relevant documents in cases where resort to the court is allowed herein. may be made with the arbitral tribunal or to the extent that the arbitral
Provided, however, that the court in which the action or the appeal is pending tribunal has no power to act or is unable to act effectively, the
may issue a protective order to prevent or prohibit disclosure of documents request may be made with the Court. The arbitral tribunal is deemed
or information containing secret processes, developments, research and constituted when the sole arbitrator or the third arbitrator who has
other information where it is shown that the applicant shall be materially been nominated, has accepted the nomination and written
prejudiced by an authorized disclosure thereof. communication of said nomination and acceptance has been
received by the party making request.
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 (b) The following rules on interim or provisional relief shall be
least one party so requests not later that the pre-trial conference, or upon the observed:
request of both parties thereafter, refer the parties to arbitration unless it
finds that the arbitration agreement is null and void, inoperative or incapable
(1) Any party may request that provision relief be granted
of being performed.
against the adverse party:

SEC. 25. Interpretation of the Act. - In interpreting the Act, the court shall
(2) Such relief may be granted:
have due regard to the policy of the law in favor of arbitration. Where action
 (i) to prevent irreparable loss or injury: 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
(ii) to provide security for the performance of any Manila, unless the arbitral tribunal, having regard to the circumstances of the
obligation; case, including the convenience of the parties shall decide on a different
place of arbitration.
(iii) to produce or preserve any evidence; or
The arbitral tribunal may, unless otherwise agreed by the parties, meet at
(iv) to compel any other appropriate act or omission. 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.
(3) The order granting provisional relief may be conditioned
upon the provision of security or any act or omission
SEC. 31. Language of the Arbitration. - The parties are free to agree on
specified in the order.
the language or languages to be used in the arbitral proceedings. Failing
such agreement, the language to be used shall be English in international
(4) Interim or provisional relief is requested by written arbitration, and English or Filipino for domestic arbitration, unless the arbitral
application transmitted by reasonable means to the Court or tribunal shall determine a different or another language or languages to be
arbitral tribunal as the case may be and the party against used in the proceedings. This agreement or determination, unless otherwise
whom the relief is sought, describing in appropriate detail the specified therein, shall apply to any written statement by a party, any hearing
precise relief, the party against whom the relief is requested, and any award, decision or other communication by the arbitral tribunal.
the grounds for the relief, and evidence supporting the
request.
The arbitral tribunal may order that any documentary evidence shall be
accompanied by a translation into the language or languages agreed upon
(5) The order shall be binding upon the parties. by the parties or determined in accordance with paragraph 1 of this section.

(6) Either party may apply with the Court for assistance in CHAPTER 5 - DOMESTIC ARBITRATION
Implementing or enforcing an interim measure ordered by an
arbitral tribunal.
SEC. 32. Law Governing Domestic Arbitration. - Domestic arbitration shall
continue to be governed by Republic Act No. 876, otherwise known as "The
(7) A party who does not comply with the order shall be Arbitration Law" as amended by this Chapter. The term "domestic arbitration"
liable for all damages resulting from noncompliance, as used herein shall mean an arbitration that is not international as defined in
including all expenses, and reasonable attorney's fees, paid Article (3) of the Model Law.
in obtaining the order's judicial enforcement.
SEC. 33. Applicability to Domestic Arbitration. - Article 8, 10, 11, 12, 13,
SEC. 29. Further Authority for Arbitrator to Grant Interim Measure of 14, 18 and 19 and 29 to 32 of the Model Law and Section 22 to 31 of the
Protection. - Unless otherwise agreed by the parties, the arbitral tribunal preceding Chapter 4 shall apply to domestic arbitration.
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
CHAPTER 6 - ARBITRATION OF CONSTRUCTION DISPUTES
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, SEC. 34. Arbitration of Construction Disputes: Governing Law. - The
preservation, inspection of property that is the subject of the dispute in arbitration of construction disputes shall be governed by Executive Order No.
arbitration. Either party may apply with the Court for assistance in 1008, otherwise known as the Constitution Industry Arbitration Law.
implementing or enforcing an interim measures ordered by an arbitral
tribunal. 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 CHAPTER 7 - JUDICIAL REVIEW OF ARBITRAL AWARDS
or by reference whether such parties are project owner, contractor,
subcontractor, quantity surveyor, bondsman or issuer of an insurance policy A. DOMESTIC AWARDS
in a construction project.
SEC. 40. Confirmation of Award. - The confirmation of a domestic arbitral
The Commission shall continue to exercise original and exclusive jurisdiction award shall be governed by Section 23 of R.A. 876.
over construction disputes although the arbitration is "commercial" pursuant
to Section 21 of this Act. A domestic arbitral award when confirmed shall be enforced in the same
manner as final and executory decisions of the Regional Trial Court.
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
The confirmation of a domestic award shall be made by the regional trial
a mediator may act as arbitrator. The parties may also agree in writing that, court in accordance with the Rules of Procedure to be promulgated by the
following a successful mediation, the mediator shall issue the settlement Supreme Court.
agreement in the form of an arbitral award.
A CIAC arbitral award need not be confirmed by the regional trial court to be
SEC. 37. Appointment of Foreign Arbitrator. - The Construction Industry
executory as provided under E.O. No. 1008.
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: 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
(a) the dispute is a construction dispute in which one party is an
those grounds enumerated in Section 25 of Republic Act No. 876. Any other
international party ground raised against a domestic arbitral award shall be disregarded by the
regional trial court.
(b) the person to be appointed agreed to abide by the arbitration
rules and policies of CIAC; B. FOREIGN ARBITRAL AWARDS

(c) he/she is either coarbitrator upon the nomination of the SEC. 42. Application of the New York Convention. - The New York
international party; or he/she is the common choice of the two CIAC-
Convention shall govern the recognition and enforcement of arbitral awards
accredited arbitrators first appointed one of whom was nominated by
covered by the said Convention.
the international party; and
The recognition and enforcement of such arbitral awards shall be filled with
(d) the foreign arbitrator shall be of different nationality from the
regional trial court in accordance with the rules of procedure to be
international party.
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
SEC. 38. Applicability to Construction Arbitration. - The provisions of the court the original or authenticated copy of the award and the arbitration
Sections 17 (d) of Chapter 2, and Section 28 and 29 of this Act shall apply to agreement. If the award or agreement is not made in any of the official
arbitration of construction disputes covered by this Chapter. languages, the party shall supply a duly certified translation thereof into any
of such languages.
SEC. 39. Court to Dismiss Case Involving a Construction Dispute. - A
regional trial court which a construction dispute is filed shall, upon becoming The applicant shall establish that the country in which foreign arbitration
aware, not later than the pretrial conference, that the parties had entered into award was made is a party to the New York Convention.
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
If the application for rejection or suspension of enforcement of an award has
agreement exclusive for the Court, rather than the CIAC, to resolve the
been made, the regional trial court may, if it considers it proper, vacate its
dispute.
decision and may also, on the application of the party claiming recognition or arbitration proceedings are conducted; (ii) where the asset to be attached or
enforcement of the award, order the party to provide appropriate security. 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
SEC. 43. Recognition and Enforcement of Foreign Arbitral Awards Not Judicial Capital Region, at the option of the applicant.
Covered by the New York Convention. - The recognition and enforcement
of foreign arbitral awards not covered by the New York Convention shall be SEC. 48. Notice of Proceeding to Parties. - In a special proceeding for
done in accordance with procedural rules to be promulgated by the Supreme recognition and enforcement of an arbitral award, the Court shall send notice
Court. The Court may, grounds of comity and reciprocity, recognize and to the parties at their address of record in the arbitration, or if any party
enforce a nonconvention award as a convention award. cannot be served notice at such address, at such party's last known address.
The notice shall be sent at least fifteen (15) days before the date set for the
SEC. 44. Foreign Arbitral Award Not Foreign Judgment. - A foreign initial hearing of the application.
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 CHAPTER 8 - MISCELLANEOUS PROVISIONS
foreign court.
SEC. 49. Office for Alternative Dispute Resolution. - There is hereby
A foreign arbitral award, when confirmed by the regional trial court, shall be established the Office for Alternative Dispute Resolution as an attached
enforced as a foreign arbitral award and not as a judgment of a foreign court. agency to the Department of Justice (DOJ) which shall have a Secretariat to
be headed by an executive director. The executive director shall be
A foreign arbitral award, when confirmed by the regional trial court, shall be appointed by the President of the Philippines.
enforced in the same manner as final and executory decisions of courts of
law of the Philippines. The objective of the office are:

SEC. 45. Rejection of a Foreign Arbitral Award. - A party to a foreign (a) to promote, develop and expand the use of ADR in the private
arbitration proceeding may oppose an application for recognition and and public sectors; and
enforcement of the arbitral award in accordance with the procedural rules to
be promulgated by the Supreme Court only on those grounds enumerated To assist the government to monitor, study and evaluate the use by the
under Article V of the New York Convention. Any other ground raised shall public and the private sector of ADR, and recommend to Congress needful
be disregarded by the regional trial court. statutory changes to develop. Strengthen and improve ADR practices in
accordance with world standards.
SEC. 46. Appeal from Court Decisions on Arbitral Awards. - A decision of
the regional trial court confirming, vacating, setting aside, modifying or SEC. 50. Powers and Functions of the Office for Alternative Dispute
correcting an arbitral award may be appealed to the Court of Appeals in Resolution. - The Office for Alternative Dispute Resolution shall have the
accordance with the rules of procedure to be promulgated by the Supreme following powers and functions:
Court.
(a) To formulate standards for the training of the ADR practitioners
The losing party who appeals from the judgment of the court confirming an and service providers;
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
(b) To certify that such ADR practitioners and ADR service providers
accordance with the rules to be promulgated by the Supreme Court.
have undergone the professional training provided by the office;

SEC. 47. Venue and Jurisdiction. - Proceedings for recognition and

(c) To coordinate the development, implementation, monitoring, and
enforcement of an arbitration agreement or for vacation, setting aside, evaluation of government ADR programs;
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 (d) To charge fees for their services; and
 (e) To perform such acts as may be necessary to carry into effect the SEC. 55. Separability Clause. - If for any reason or reasons, any portion or
provisions of this Act. 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
SEC. 51. Appropriations. - The amount necessary to carry out the effect.
provisions of this Act shall be included in the General Appropriations Act of
the year following its enactment into law and thereafter. SEC. 56. Effectivity. - This act shall take effect fifteen days (15) after its
publication in at least two (2) national newspapers of general circulation.
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: Approved,

(a) the Department of Justice; FRANKLIN DRILON JOSE DE VENECIA JR.

President of the Senate Speaker of the House of
(b) the Department of Trade and Industry; Representatives

(c) the Department of the Interior and Local Government; 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
(d) the president of the Integrated Bar of the Philippines; February 4, 2004.

(e) A representative from the arbitration profession; and OSCAR G. YABES ROBERTO P. NAZARENO
Secretary of Senate Secretary General
(f) A representative from the mediation profession; and House of Represenatives

(g) A representative from the ADR organizations Approved: April 2, 2004

shall within three (3) months after convening, submit the IRR to the Joint GLORIA MACAPAGAL-ARROYO
Congressional Oversight Committee for review and approval. The Oversight President of the Philippines
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.