PHILIPPINES Law and Practice Contributed by: Ricardo Ma P G Ongkiko, John Christian Joy A Regalado and Ma Patricia B Paz-Jacoba, SyCip Salazar Hernandez & Gatmaitan
the interpretation that renders an arbitration clause effective if the terms of an agreement allow for such interpretation. As such, courts must refer matters to arbitration if the case was improperly or prematurely referred to them despite an arbitration agreement. 3.4 Validity The Supreme Court has upheld the validity of an arbitration clause despite the invalidity of the main contract, consistent with the rule of separability. It is settled that an arbitration agreement is independent of the main contract, and it does not automatically terminate when the contract of which it is part ends. It is a recognised state policy to respect party auton - omy in the resolution of disputes. Thus, there are no limitations on the parties’ freedom to select arbitrators in international commercial arbitration or to agree on the qualifications of the arbitrators. In a similar vein, the ADR Act’s IRR provides that no person shall be precluded from acting as an arbitrator because of their nationality, unless otherwise agreed by the parties. 4.2 Default Procedures 4. The Arbitral Tribunal 4.1 Limits on Selection The parties are free to determine the number of arbi - trators but, in the absence of such agreement, there shall be three arbitrators. The parties are free to agree on a procedure for appointing the arbitrator or arbitrators. In the absence of such agreement, if the parties had agreed to have a sole arbitrator but are unable to agree on the arbitrator, a party may request that the arbitrator be appointed by the appointing authority. If the parties agree to have three arbitrators, each party shall appoint an arbitrator, and then the two appointed arbitrators shall appoint the third arbitra - tor. If a party fails to appoint the arbitrator within 30 days of receiving a request to do so from the other party – or if the two arbitrators fail to agree on the third arbitrator within 30 days of their appointment – the appointing authority shall make the appointment upon request of the other party.
The appointing authority is the person or institution named as such in the arbitration agreement, or else the regular arbitration institution under whose rules the arbitration is conducted. Where the parties have agreed to submit their dispute to institutional arbitra - tion rules, they are deemed to have agreed for arbitra - tors to be selected and appointed under those rules – unless they have agreed to a different procedure. In ad hoc arbitration, the default appointment of an arbitrator shall be made by the National President of the IBP or their duly authorised representative. However, there is no default procedure specifically for multiparty arbitrations. 4.3 Court Intervention The court intervenes in the selection of arbitrators and may act as the appointing authority at the request of a party in the following circumstances: • if a party fails or refuses to appoint an arbitrator, the parties fail to agree on the sole arbitrator or the two designated arbitrators fail to agree on the third arbitrator; and • where the arbitral institution fails or is unable to perform its duty as an appointing authority within a reasonable time upon receiving a request for appointment. In an ad hoc arbitration, the court may intervene in the following circumstances. • The parties failed to provide a method for appoint - ing or replacing an arbitrator or substitute arbitra - tor, or the method agreed upon is ineffective. • The National President of the IBP fails or refuses to act within: (a) such period as may be allowed under the perti - nent rules of the IBP; (b) such period as may be agreed upon by the parties; or (c) 30 days of receiving such request for appoint - ment. 4.4 Challenge and Removal of Arbitrators An arbitrator may be challenged on any of the grounds provided for in the ADR Act and its IRR, Republic Act
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