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
sion and Development Authority v CJH Development Corporation (GR No 219421, 23 April 2024), where it was held that the COA’s dismissal of a money claim was proper in view of the pendency of a case seeking to determine the rights and obligations of the parties under the final arbitral award. 12.3 Approach of the Courts Rule 12.12 of the Special ADR Rules provides for a presumption that an arbitral award was made and released in due course and is subject to enforcement by the court, unless a ground for setting aside the arbitral award was established. Thus, the courts tend to apply the grounds for setting aside or refusal of recognition strictly. Under the New York Convention, a court may refuse to recognise and enforce an international commer - cial award if doing so would be contrary to the public policy of the state in which enforcement is sought. Philippine laws provide, therefore, that being contrary to the public policy of the state in which enforcement is sought is one of the exclusive grounds to set aside or refuse recognition and enforcement of an interna - tional commercial or foreign arbitral award. Although neither the New York Convention nor Philippine law defines this public policy ground, the following recent Supreme Court decision offers guidance on this mat - ter. Mabuhay Holdings Corp v Sembcorp Logistics Limited Here, the Supreme Court adopted the same narrow and restrictive approach in defining public policy that has been adopted by most arbitral jurisdictions pur - suant to the pro-enforcement policy of the New York Convention. The court ruled that that “[m]ere errors in the interpretation of the law or factual findings would not suffice to warrant refusal of enforcement under the public policy ground. The illegality or immorality of the award must reach a certain threshold such that, enforcement of the same would be against [the Philip - pines’] fundamental tenets of justice and morality, or would blatantly be injurious to the public, or the inter - ests of society” (GR No 212734, 5 December 2018). This approach was reiterated by the Supreme Court in Pioneer Insurance & Surety Corporation v TIG Insur-
ance Company (GR No 256177, 26 June 2022), where the Court held that, to successfully invoke a violation of public policy as a ground to refuse enforcement of an arbitral award, the party asserting such ground must: • identify the state’s fundamental tenets of justice and morality; • prove the illegality or immorality of the award; and • show the possible injury to the public or the inter - ests of the society. 13. Miscellaneous 13.1 Class Action or Group Arbitration The ADR Act and the Special ADR Rules do not have provisions for class action or group arbitration. There are also no judicial precedents on this matter as of yet. 13.2 Ethical Codes Various Philippine arbitration organisations and insti - tutions have adopted ethical codes and professional standards for arbitrators and arbitration counsel. To the extent that they do not conflict with any provisions in Philippine law, the Code of Ethics for Arbitration in the PDRCI’s administrative guidelines expressly incor - porates: • the IBA Rules of Ethics for International Arbitrators; • the 2024 IBA Guidelines on Conflicts of Interest in International Arbitration; and • the IBA Guidelines on Party Representation in International Arbitration. Similarly, the PICCR has expressly adopted the origi - nal IBA Rules of Ethics for International Arbitrators (1987) and the 2014 IBA Guidelines on Conflicts of Interests in International Arbitration as a Code of Eth - ics in its guidelines for complaints against arbitrators. On the other hand, the Philippine Institute of Arbitra - tors issued its own Code of Professional Responsibil - ity for Members, which provides a uniform benchmark for the application of professional and ethical stand - ards that should govern its members’ conduct at all times.
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