Be It Enacted by The Senate and House of Representatives of The Philippine Congress Assembled
Be It Enacted by The Senate and House of Representatives of The Philippine Congress Assembled
Be It Enacted by The Senate and House of Representatives of The Philippine Congress Assembled
Congress of the Philippines arbitration, mediation, conciliation, early neutral evaluation, mini-trial, or any
Metro Manila combination thereof;
Twelfth Congress (b) "ADR Provider" means institutions or persons accredited as mediator,
Third Regular Session 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
Begun and held in Metro Manila, on Monday, the twenty-eight day of July, two thousand three. individuals acting as mediator, conciliator, arbitrator or neutral evaluator;
Republic Act No. 9285 April 2, 2004 (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;
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 (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;
Be it enacted by the Senate and House of Representatives of the Philippine Congress
Assembled:
(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;
CHAPTER 1 - GENERAL PROVISIONS
(f) "Award" means any partial or final decision by an arbitrator in resolving the
SECTION 1. Title. - This act shall be known as the "Alternative Dispute Resolution Act of
issue in a controversy;
2004."
(i) "Convention Award" means a foreign arbitral award made in a Convention State;
(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 (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 (v) "Model Law" means the Model Law on International Commercial Arbitration
Court; adopted by the United Nations Commission on International Trade Law on 21 June
1985;
(l) "Court-Annexed Mediation" means any mediation process conducted under the
auspices of the court, after such court has acquired jurisdiction of the dispute; (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;
(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; (x) "Non-Convention Award" means a foreign arbitral award made in a State which
is not a Convention State;
(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 (y) "Non-Convention State" means a State that is not a member of the New York
cases and receive a nonbinding assessment by an experienced, neutral person, with Convention.
expertise in the subject in the substance of the dispute;
(z) "Non-Party Participant" means a person, other than a party or mediator, who
(o) "Government Agency" means any government entity, office or officer, other participates in a mediation proceeding as a witness, resource person or expert;
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
(aa) "Proceeding" means a judicial, administrative, or other adjudicative process,
persons;
including related pre-hearing motions, conferences and discovery;
(p) "International Party" shall mean an entity whose place of business is outside the
(bb) "Record" means an information written on a tangible medium or stored in an
Philippines. It shall not include a domestic subsidiary of such international party or
electronic or other similar medium, retrievable form; and
a coventurer in a joint venture with a party which has its place of business in the
Philippines.
(cc) "Roster" means a list of persons qualified to provide ADR services as neutrals
or to serve as arbitrators.
The term foreigner arbitrator shall mean a person who is not a national of the
Philippines.
SEC. 4. Electronic Signatures in Global and E-Commerce Act. - The provisions of the
Electronic Signatures in Global and E-Commerce Act, and its implementing Rules and
(q) "Mediation" means a voluntary process in which a mediator, selected by the
Regulations shall apply to proceeding contemplated in this Act.
disputing parties, facilitates communication and negotiation, and assist the parties in
reaching a voluntary agreement regarding a dispute.
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
(r) "Mediator" means a person who conducts mediation;
public officers as provided in Section 38 (1), Chapter 9, Book of the Administrative Code of
1987.
(s) "Mediation Party" means a person who participates in a mediation and whose
consent is necessary to resolve the dispute;
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
(t) "Mediation-Arbitration" or Med-Arb is a step dispute resolution process No. 442, otherwise known as the Labor Code of the Philippines, as amended and its
involving both mediation and arbitration; 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.
(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 CHAPTER 2 - MEDIATION
negotiated settlement;
SEC. 7. Scope. - The provisions of this Chapter shall cover voluntary mediation, whether ad A person who discloses confidential information shall be precluded from asserting the privilege
hoc or institutional, other than court-annexed. The term "mediation' shall include conciliation. 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.
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, A person who discloses or makes a representation about a mediation is preclude from asserting
and amicable resolution of disputes in accordance with the principles of integrity of the privilege under Section 9, to the extent that the communication prejudices another person in
determination by the parties, and the policy that the decision-making authority in the mediation the proceeding and it is necessary for the person prejudiced to respond to the representation of
process rests with the parties. disclosure.
SEC. 9. Confidentiality of Information. - Information obtained through mediation proceedings SEC. 11. Exceptions to Privilege. -
shall be subject to the following principles and guidelines:
(a) There is no privilege against disclosure under Section 9 if mediation
(a) Information obtained through mediation shall be privileged and confidential. communication is:
(b) A party, a mediator, or a nonparty participant may refuse to disclose and may (1) in an agreement evidenced by a record authenticated by all parties to
prevent any other person from disclosing a mediation communication. the agreement;
(c) Confidential Information shall not be subject to discovery and shall be (2) available to the public or that is made during a session of a mediation
inadmissible if any adversarial proceeding, whether judicial or quasi-judicial, which is open, or is required by law to be open, to the public;
However, evidence or information that is otherwise admissible or subject to
discovery does not become inadmissible or protected from discovery solely by
(3) a threat or statement of a plan to inflict bodily injury or commit a
reason of its use in a mediation.
crime of violence;
(1) a court proceeding involving a crime or felony; or 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.
(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 This Act does not require that a mediator shall have special qualifications by background or
mediation. profession unless the special qualifications of a mediator are required in the mediation
agreement or by the mediation parties.
(c) A mediator may not be compelled to provide evidence of a mediation
communication or testify in such proceeding. 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
(d) If a mediation communication is not privileged under an exception in subsection
representation may be rescinded at any time.
(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 SEC. 15. Place of Mediation. - The parties are free to agree on the place of mediation. Failing
any other mediation communication, admissible for any other purpose. such agreement, the place of mediation shall be any place convenient and appropriate to all
parties.
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 SEC. 16. Effect of Agreement to Submit Dispute to Mediation Under Institutional Rules. -
or agency or other authority that make a ruling on a dispute that is the subject of a mediation, An agreement to submit a dispute to mediation by any institution shall include an agreement to
except: 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
(a) Where the mediation occurred or has terminated, or where a settlement was
mediator, the parties, their respective counsel, and nonparty participants to abide by such rules.
reached.
In case of conflict between the institutional mediation rules and the provisions of this Act, the
(b) As permitted to be disclosed under Section 13 of this Chapter.
latter shall prevail.
SEC. 13. Mediator's Disclosure and Conflict of Interest. - The mediation shall be guided by
SEC. 17. Enforcement of Mediated Settlement Agreement. - The mediation shall be guided by
the following operative principles:
the following operative principles:
SEC. 30. Place of Arbitration. - The parties are free to agree on the place of arbitration.
(1) Any party may request that provision relief be granted against the
Failing such agreement, the place of arbitration shall be in Metro Manila, unless the arbitral
adverse party:
tribunal, having regard to the circumstances of the case, including the convenience of the
parties shall decide on a different place of arbitration.
(2) Such relief may be granted:
The arbitral tribunal may, unless otherwise agreed by the parties, meet at any place it considers
(i) to prevent irreparable loss or injury: appropriate for consultation among its members, for hearing witnesses, experts, or the parties,
or for inspection of goods, other property or documents.
(ii) to provide security for the performance of any obligation;
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
(iii) to produce or preserve any evidence; or 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
(iv) to compel any other appropriate act or omission. 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.
(3) The order granting provisional relief may be conditioned upon the
provision of security or any act or omission specified in the order.
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
(4) Interim or provisional relief is requested by written application accordance with paragraph 1 of this section.
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 CHAPTER 5 - DOMESTIC ARBITRATION
is requested, the grounds for the relief, and evidence supporting the
request. 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
(5) The order shall be binding upon the parties. 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.
(6) Either party may apply with the Court for assistance in Implementing
or enforcing an interim measure ordered by an arbitral tribunal. 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.
(7) A party who does not comply with the order shall be liable for all
damages resulting from noncompliance, including all expenses, and
reasonable attorney's fees, paid in obtaining the order's judicial CHAPTER 6 - ARBITRATION OF CONSTRUCTION DISPUTES
enforcement.
SEC. 34. Arbitration of Construction Disputes: Governing Law. - The arbitration of both parties, assisted by their respective counsel, shall submit to the regional trial court a
construction disputes shall be governed by Executive Order No. 1008, otherwise known as the written agreement exclusive for the Court, rather than the CIAC, to resolve the dispute.
Constitution Industry Arbitration Law.
CHAPTER 7 - JUDICIAL REVIEW OF ARBITRAL AWARDS
SEC. 35. Coverage of the Law. - Construction disputes which fall within the original and
exclusive jurisdiction of the Construction Industry Arbitration Commission (the
A. DOMESTIC AWARDS
"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 SEC. 40. Confirmation of Award. - The confirmation of a domestic arbitral award shall be
construction project. governed by Section 23 of R.A. 876.
The Commission shall continue to exercise original and exclusive jurisdiction over A domestic arbitral award when confirmed shall be enforced in the same manner as final and
construction disputes although the arbitration is "commercial" pursuant to Section 21 of this executory decisions of the Regional Trial Court.
Act.
The confirmation of a domestic award shall be made by the regional trial court in accordance
SEC. 36. Authority to Act as Mediator or Arbitrator. - By written agreement of the parties to a with the Rules of Procedure to be promulgated by the Supreme Court.
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
A CIAC arbitral award need not be confirmed by the regional trial court to be executory as
settlement agreement in the form of an arbitral award.
provided under E.O. No. 1008.
SEC. 39. Court to Dismiss Case Involving a Construction Dispute. - A regional trial court If the application for rejection or suspension of enforcement of an award has been made, the
which a construction dispute is filed shall, upon becoming aware, not later than the pretrial regional trial court may, if it considers it proper, vacate its decision and may also, on the
conference, that the parties had entered into an arbitration to be conducted by the CIAC, unless 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 CHAPTER 8 - MISCELLANEOUS PROVISIONS
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
SEC. 49. Office for Alternative Dispute Resolution. - There is hereby established the Office
by the Supreme Court. The Court may, grounds of comity and reciprocity, recognize and
for Alternative Dispute Resolution as an attached agency to the Department of Justice (DOJ)
enforce a nonconvention award as a convention award.
which shall have a Secretariat to be headed by an executive director. The executive director
shall be appointed by the President of the Philippines.
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
The objective of the office are:
arbitral award and not a judgment of a foreign court.
(a) to promote, develop and expand the use of ADR in the private and public
A foreign arbitral award, when confirmed by the regional trial court, shall be enforced as a
sectors; and
foreign arbitral award and not as a judgment of a foreign court.
To assist the government to monitor, study and evaluate the use by the public and the private
A foreign arbitral award, when confirmed by the regional trial court, shall be enforced in the
sector of ADR, and recommend to Congress needful statutory changes to develop. Strengthen
same manner as final and executory decisions of courts of law of the Philippines.
and improve ADR practices in accordance with world standards.
(e) To perform such acts as may be necessary to carry into effect the provisions of
SEC. 47. Venue and Jurisdiction. - Proceedings for recognition and enforcement of an
this Act.
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 SEC. 51. Appropriations. - The amount necessary to carry out the provisions of this Act shall
arbitration proceedings are conducted; (ii) where the asset to be attached or levied upon, or the be included in the General Appropriations Act of the year following its enactment into law and
act to be enjoined is located; (iii) where any of the parties to the dispute resides or has his place thereafter.
of business; or (iv) in the National Judicial Capital Region, at the option of the applicant.
SEC. 52. Implementing Rules and Regulations (IRR). - Within one (1) month after the
SEC. 48. Notice of Proceeding to Parties. - In a special proceeding for recognition and approval of this Act, the secretary of justice shall convene a committee that shall formulate the
enforcement of an arbitral award, the Court shall send notice to the parties at their address of appropriate rules and regulations necessary for the implementation of this Act. The committee,
record in the arbitration, or if any party cannot be served notice at such address, at such party's composed of representatives from:
last known address. The notice shall be sent at least fifteen (15) days before the date set for the
initial hearing of the application.
(a) the Department of Justice;
(b) the Department of Trade and Industry; REPUBLIC ACT NO. 876
(c) the Department of the Interior and Local Government; 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
(d) the president of the Integrated Bar of the Philippines;
OTHER PURPOSES
But where a person capable of entering into a submission or contract has knowingly entered
SEC. 54. Repealing Clause. - All laws, decrees, executive orders, rules and regulations which into the same with a person incapable of so doing, the objection on the ground of incapacity
are inconsistent with the provisions of this Act are hereby repealed, amended or modified can be taken only in behalf of the person so incapacitated.
accordingly.
Section 3. Controversies or cases not subject to the provisions of this Act. - This Act shall not
SEC. 55. Separability Clause. - If for any reason or reasons, any portion or provision of this apply to controversies and to cases which are subject to the jurisdiction of the Court of
Act shall be held unconstitutional or invalid, all other parts or provisions not affected shall Industrial Relations or which have been submitted to it as provided by Commonwealth Act
thereby continue to remain in full force and effect. Numbered One hundred and three, as amended.
SEC. 56. Effectivity. - This act shall take effect fifteen days (15) after its publication in at least Section 4. Form of arbitration agreement. - A contract to arbitrate a controversy thereafter
two (2) national newspapers of general circulation. 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.
(b) In the event that one party defaults in answering the demand, the aggrieved The Court of First Instance shall appoint an arbitrator or arbitrators, as the case may be, in the
party may file with the Clerk of the Court of First Instance having jurisdiction over following instances:
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
(a) If the parties to the contract or submission are unable to agree upon a single
to the party against whom the claim is asserted. Such demand shall set forth the
arbitrator; or
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.
(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) 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 (c) If either party to the contract fails or refuses to name his arbitrator within fifteen
any. Such submission may be filed by any party and shall be duly executed by both days after receipt of the demand for arbitration; or
parties.
(d) If the arbitrators appointed by each party to the contract, or appointed by one
(d) In the event that one party neglects, fails or refuses to arbitrate under a party to the contract and by the proper Court, shall fail to agree upon or to select the
submission agreement, the aggrieved party shall follow the procedure prescribed in third arbitrator.
subparagraphs (a) and (b) of this section.
(e) The court shall, in its discretion appoint one or three arbitrators, according to the
Section 6. Hearing by court. - A party aggrieved by the failure, neglect or refusal of another to importance of the controversy involved in any of the preceding cases in which the
perform under an agreement in writing providing for arbitration may petition the court for an agreement is silent as to the number of arbitrators.
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 (f) Arbitrators appointed under this section shall either accept or decline their
satisfied that the making of the agreement or such failure to comply therewith is not in issue, appointments within seven days of the receipt of their appointments. In case of
shall make an order directing the parties to proceed to arbitration in accordance with the terms declination or the failure of an arbitrator or arbitrators to duly accept their
of the agreement. If the making of the agreement or default be in issue the court shall proceed appointments the parties or the court, as the case may be, shall proceed to appoint a
to summarily hear such issue. If the finding be that no agreement in writing providing for substitute or substitutes for the arbitrator or arbitrators who decline or failed to
arbitration was made, or that there is no default in the proceeding thereunder, the proceeding accept his or their appointments.
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.
Section 9. Appointment of additional arbitrators. - Where a submission or contract provides unless the time so fixed is extended by the written agreement of the parties to the submission or
that two or more arbitrators therein designated or to be thereafter appointed by the parties, may contract or their attorneys, or unless the parties have continued with the arbitration without
select or appoint a person as an additional arbitrator, the selection or appointment must be in objection to such adjournment.
writing. Such additional arbitrator must sit with the original arbitrators upon the hearing.
The hearing may proceed in the absence of any party who, after due notice, fails to be present
Section 10. Qualifications of arbitrators. - Any person appointed to serve as an arbitrator must at such hearing or fails to obtain an adjournment thereof. An award shall not be made solely on
be of legal age, in full-enjoyment of his civil rights and know how to read and write. No person the default of a party. The arbitrators shall require the other party to submit such evidence as
appointed to served as an arbitrator shall be related by blood or marriage within the sixth they may require for making an award.
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
No one other than a party to said arbitration, or a person in the regular employ of such party
to be decided or in the result of the proceeding, or has any personal bias, which might prejudice
duly authorized in writing by said party, or a practicing attorney-at-law, shall be permitted by
the right of any party to a fair and impartial award.
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
No party shall select as an arbitrator any person to act as his champion or to advocate his cause. days prior to the hearing.
If, after appointment but before or during hearing, a person appointed to serve as an arbitrator The arbitrators shall arrange for the taking of a stenographic record of the testimony when such
shall discover any circumstances likely to create a presumption of bias, or which he believes a record is requested by one or more parties, and when payment of the cost thereof is assumed
might disqualify him as an impartial arbitrator, the arbitrator shall immediately disclose such by such party or parties.
information to the parties. Thereafter the parties may agree in writing:
Persons having a direct interest in the controversy which is the subject of arbitration shall have
(a) to waive the presumptive disqualifying circumstances; or the right to attend any hearing; but the attendance of any other person shall be at the discretion
of the arbitrators.
(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 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
Section 11. Challenge of arbitrators. - The arbitrators may be challenged only for the reasons
understanding. Arbitrators shall have the power to administer the oaths to all witnesses
mentioned in the preceding section which may have arisen after the arbitration agreement or
requiring them to tell the whole truth and nothing but the truth in any testimony which they
were unknown at the time of arbitration.
may give in any arbitration hearing. This oath shall be required of every witness before any of
his testimony is heard.
The challenge shall be made before them.
Section 14. Subpoena and subpoena duces tecum. - Arbitrators shall have the power to require
If they do not yield to the challenge, the challenging party may renew the challenge before the any person to attend a hearing as a witness. They shall have the power to subpoena witnesses
Court of First Instance of the province or city in which the challenged arbitrator, or, any of and documents when the relevancy of the testimony and the materiality thereof has been
them, if there be more than one, resides. While the challenging incident is discussed before the demonstrated to the arbitrators. Arbitrators may also require the retirement of any witness
court, the hearing or arbitration shall be suspended, and it shall be continued immediately after during the testimony of any other witness. All of the arbitrators appointed in any controversy
the court has delivered an order on the challenging incident. 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
Section 12. Procedure by arbitrators. - Subject to the terms of the submission or contract, if power at any time, before rendering the award, without prejudice to the rights of any party to
any are specified therein, are arbitrators selected as prescribed herein must, within five days petition the court to take measures to safeguard and/or conserve any matter which is the subject
after appointment if the parties to the controversy reside within the same city or province, or of the dispute in arbitration.
within fifteen days after appointment if the parties reside in different provinces, set a time and
place for the 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 Section 15. Hearing by arbitrators. - Arbitrators may, at the commencement of the hearing,
by agreement of the parties; otherwise, adjournment may be ordered by the arbitrators upon ask both parties for brief statements of the issues in controversy and/or an agreed statement of
their own motion only at the hearing and for good and sufficient cause. No adjournment shall facts. Thereafter the parties may offer such evidence as they desire, and shall produce such
extend the hearing beyond the day fixed in the submission or contract for rendering the award, 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 scope of the agreement of the parties, which shall include, but not be limited to, the specific
materiality of the evidence offered or produced, and shall not be bound to conform to the Rules performance of a contract.
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
In the event that the parties to an arbitration have, during the course of such arbitration, settled
submission. All exhibits shall remain in the custody of the Clerk of Court during the course of
their dispute, they may request of the arbitrators that such settlement be embodied in an award
the arbitration and shall be returned to the parties at the time the award is made. The arbitrators
which shall be signed by the arbitrators. No arbitrator shall act as a mediator in any proceeding
may make an ocular inspection of any matter or premises which are in dispute, but such
in which he is acting as arbitrator; and all negotiations towards settlement of the dispute must
inspection shall be made only in the presence of all parties to the arbitration, unless any party
take place without the presence of the arbitrators.
who shall have received notice thereof fails to appear, in which event such inspection shall be
made in the absence of such party.
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.
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 The arbitrators shall have the power to assess in their award the expenses of any party against
have signified an intention to file briefs. Then the hearing shall be closed by the arbitrations another party, when such assessment shall be deemed necessary.
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
Section 21. Fees of arbitration. - The fees of the arbitrators shall be fifty pesos per day unless
within fifteen days after the close of the oral hearings; the reply briefs, if any, shall be filed
the parties agree otherwise in writing prior to the arbitration.
within five days following such fifteen-day period.
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 (c) That the arbitrators were guilty of misconduct in refusing to postpone the
there is only one. Each party shall be furnished with a copy of the award. The arbitrators in hearing upon sufficient cause shown, or in refusing to hear evidence pertinent and
their award may grant any remedy or relief which they deem just and equitable and within the 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 Section 28. Papers to accompany motion to confirm, modify, correct, or vacate award. - The
disqualifications or of any other misbehavior by which the rights of any party have party moving for an order confirming, modifying, correcting, or vacating an award, shall at the
been materially prejudiced; or 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;
(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 (a) The submission, or contract to arbitrate; the appointment of the arbitrator or
not made. arbitrators; and each written extension of the time, if any, within which to make the
award.
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 (b) A verified of the award.
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
(c) Each notice, affidavit, or other paper used upon the application to confirm,
deemed applicable to the new arbitration and to commence from the date of the court's order.
modify, correct or vacate such award, and a copy of each of the court upon such
application.
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
The judgment shall be docketed as if it were rendered in an action.
payment of costs upon the motion in an action.
The judgment so entered shall have the same force and effect in all respects, as, and be subject
Section 25. Grounds for modifying or correcting award. - In any one of the following cases,
to all the provisions relating to, a judgment in an action; and it may be enforced as if it had
the court must make an order modifying or correcting the award, upon the application of any
been rendered in the court in which it is entered.
party to the controversy which was arbitrated:
Section 29. Appeals. - An appeal may be taken from an order made in a proceeding under this
(a) Where there was an evident miscalculation of figures, or an evident mistake in
Act, or from a judgment entered upon an award through certiorari proceedings, but such
the description of any person, thing or property referred to in the award; or
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.
(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
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
(c) Where the award is imperfect in a matter of form not affecting the merits of the application of, or notice to, his executor or administrator, or temporary administrator of his
controversy, and if it had been a commissioner's report, the defect could have been estate. In any such case, the court may issue an order extending the time within which notice of
amended or disregarded by the court. 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
The order may modify and correct the award so as to effect the intent thereof and promote
dies after a verdict.
justice between the parties.
Section 31. Repealing clause. - The provisions of chapters one and two, Title XIV, of the Civil
Section 26. Motion to vacate, modify or correct award: when made. - Notice of a motion to
Code shall remain in force. All other laws and parts of laws inconsistent with this Act are
vacate, modify or correct the award must be served upon the adverse party or his counsel
hereby repealed. If any provision of this Act shall be held invalid the remainder that shall not
within thirty days after award is filed or delivered, as prescribed by law for the service upon an
be affected thereby.
attorney in an action.
Section 32. Effectivity. - This Act shall take effect six months after its approval.
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.