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
However, there are grounds to argue that Philippine law may allow security for costs to be granted on the basis that such relief: • provides security for the performance of an obliga - tion, in particular the obligation to arbitrate dis - putes; or • compels appropriate action to provide security for legal or other costs, especially where a respondent must participate in the arbitration to avoid a default award. Parties are free to agree on the procedure to be fol - lowed by the arbitral tribunal. In the absence of an agreement, the arbitral tribunal may conduct the arbitration in such manner as it considers appropri - ate subject to Chapter 4, Rule 5 of the ADR Act’s IRR, which provides that, unless considered inappropriate by the arbitral tribunal, the 1976 UNCITRAL Arbitration Rules shall apply. Under the ADR Act, international commercial arbitra - tion seated in the Philippines would be primarily gov - erned by the UNCITRAL Model Law. 7.2 Procedural Steps There are no mandatory procedural steps required by law. As mentioned in 7.1 Governing Rules , parties are free to agree on the procedure to be followed by the arbitral tribunal during its conduct of the arbitration proceeding and, in the absence of an agreement, the arbitral tribunal may conduct arbitration proceedings in a manner it considers appropriate. 7.3 Powers and Duties of Arbitrators 7. Procedure 7.1 Governing Rules Philippine law mandates that the parties shall be treat - ed equally, and each party shall be given full opportu - nity to present its case. The law imposes the following duties on arbitrators. • To hold hearings if requested by a party, unless the parties agreed otherwise. • To give sufficient advance notice to parties of any hearing and any meeting of the arbitral tribunal for
the purpose of inspecting goods, other property or documents. • To decide the dispute in accordance with such rules of law that: (a) are chosen by the parties as appropriate for the substance of the dispute; or (b) in the absence of such choice, are determined by the conflict of law rules considered applica - ble by the arbitrators. • To decide ex aequo et bono or as amiable com - positeur only if the parties have expressly author - ised them to do so. • To decide in accordance with the terms of the con - tract in all cases, taking into account any applica - ble trade usages. Philippine law recognises the power of an arbitral tri - bunal, inter alia, to do the following. • Determine the admissibility, relevance, materiality and weight of any evidence. • Order that any documentary evidence be trans - lated into the language of the proceedings. • Disallow amendments by a party of its statement of claim or defence when the delay in making the amendment is considered inappropriate. • Request assistance from a Philippine court in taking evidence or allow a party to make such a request. • Administer oaths to – or require affirmation from – witnesses. • Require any person to: (a) attend a hearing as a witness; or (b) produce documents through a subpoena. • Require the exclusion of any witness while any other witness is giving evidence. • Order interim measures of protection. Furthermore, in the absence of an agreement by the parties concerning the following circumstances, Phil - ippine law recognises the power of the arbitral tribunal to do the following. • Terminate the proceedings if the claimant fails to communicate their statement of claim. • Continue with the proceedings and make an award on the evidence before it if:
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