PHILIPPINES Law and Practice Contributed by: Leland R Villadolid Jr, Gilberto D Gallos, Antonio Jose Gerardo T Paz and Leo Frederick Z Cruz, Angara Abello Concepcion Regala & Cruz
13. Arbitration 13.1 Laws Regarding the Conduct of Arbitration Republic Act No 9285, or the Alternative Dispute Resolution Act (the “ADR Act”), institutionalised the use of ADR in the Philippines and governs arbitration in the country. The ADR Act provides that the 1985 UNCITRAL Model Law (the “Model Law”) will govern international commercial arbi- tration. Domestic arbitration continues to be governed by Republic Act No 876 (the “Arbitra- tion Law”). Construction disputes are governed by the Con- struction Industry Arbitration Law. The recogni- tion and enforcement of foreign arbitral awards is governed by the 1958 Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the “New York Convention”). Supplementing the ADR Act are the Special Rules of Court on Alternative Dispute Resolution promulgated by the Supreme Court (the “Special ADR Rules”). In respect of the procedural aspect before the regular courts, these rules govern cases relating to arbitration, including (among others): • relief on the issue of existence, validity or enforceability of the arbitration agreement; • referral to ADR; • interim measures of protection; • recognition and enforcement of arbitral awards; and • confidentiality/protective orders. 13.2 Subject Matters Not Referred to Arbitration The following cannot be the subject of arbitration in the Philippines:
sible, it may further refer the parties to another court for judicial dispute resolution (JDR). Only after the failure of JDR shall the case be referred to the original court for trial. Under the guidelines issued by the Supreme Court for the conduct of court-annexed media- tion and JDR, parties who fail to appear before the mediator or the JDR judge, or who exhibit contemptuous conduct during mediation or JDR, may be sanctioned upon the recommenda- tion of the mediator or the JDR judge. Sanctions include (among others): • the dismissal of the case, when the plaintiff fails to appear without valid cause; or • the ex parte presentation of the plaintiff’s evidence and dismissal of defendant’s coun- terclaims, when the defendant fails to appear without valid cause. 12.3 ADR Institutions Outside the regular court system, institutions offering and promoting ADR are well-established and organised. The main arbitration institutions in the Philippines include: • the Philippine Dispute Resolution Center, Inc: • the Philippine International Center for Conflict Resolution; and • the Construction Industry Arbitration Com- mission. These provide not only ADR services but also training and resources to promote ADR.
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