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Republic Act No.


April 2, 2004


C A$TER ( ) *ENERAL $RO"ISIONS SECTION (. Title. - This act shall be known as the "Alternative Dispute Resolution Act of 2004." SEC. 2. Declaration of Policy. - it is hereby declared the policy of the tate to actively pro!ote party autono!y in the resolution of disputes or the freedo! of the party to !ake their own arran"e!ents to resolve their disputes. Towards this end# the tate shall encoura"e and actively pro!ote the use of Alternative Dispute Resolution $ADR% as an i!portant !eans to achieve speedy and i!partial &ustice and declo" court dockets. As such# the tate shall provide !eans for the use of ADR as an efficient tool and an alternative procedure for the resolution of appropriate cases. 'ikewise# the tate shall enlist active private sector participation in the settle!ent of disputes throu"h ADR. This Act shall be without pre&udice to the adoption by the upre!e (ourt of any ADR syste!# such as !ediation# conciliation# arbitration# or any co!bination thereof as a !eans of achievin" speedy and efficient !eans of resolvin" cases pendin" before all courts in the )hilippines which shall be "overned by such rules as the upre!e (ourt !ay approve fro! ti!e to ti!e. SEC. +. Definition of Terms. - *or purposes of this Act# the ter!+ $a% "Alternative Dispute Resolution yste!" !eans any process or procedure used to resolve a dispute or controversy# other than by ad&udication of a presidin" &ud"e of a court or an officer of a "overn!ent a"ency# as defined in this Act# in which a neutral third party participates to assist in the resolution of issues# which includes arbitration# !ediation# conciliation# early neutral evaluation# !ini-trial# or any co!bination thereof, $b% "ADR )rovider" !eans institutions or persons accredited as !ediator# conciliator# arbitrator# neutral evaluator# or any person e-ercisin" si!ilar functions in any Alternative Dispute Resolution syste!. This is without pre&udice to the ri"hts of the parties to choose nonaccredited individuals to act as !ediator# conciliator# arbitrator# or neutral evaluator of their dispute. .henever reffered to in this Act# the ter! "ADR practitioners" shall refer to individuals actin" as !ediator# conciliator# arbitrator or neutral evaluator, $c% "Authenticate" !eans to si"n# e-ecute or adopt a sy!bol# or encrypt a record in whole or in part# intended to identity the authenticatin" party and to adopt# accept or establish the authenticity of a record or ter!, $d% "Arbitration" !eans a voluntary dispute resolution process in which one or !ore arbitrators# appointed in accordance with the a"ree!ent of the parties# or rules pro!ul"ated pursuant to this Act# resolve a dispute by renderin" an award, $e% "Arbitrator" !eans the person appointed to render an award# alone or with others# in a dispute that is the sub&ect of an arbitration a"ree!ent, $f% "Award" !eans any partial or final decision by an arbitrator in resolvin" the issue in a controversy, $"% "(o!!ercial Arbitration" An arbitration is "co!!ercial if it covers !atter arisin" fro! all relationships of a co!!ercial nature# whether contractual or not, $h% "(onfidential infor!ation" !eans any infor!ation# relative to the sub&ect of !ediation or arbitration# e-pressly intended by the source not to be disclosed# or obtained under circu!stances that would create a reasonable e-pectation on behalf of the source that the infor!ation shall not be disclosed. /t shall include $0% co!!unication# oral or written# !ade in a dispute resolution proceedin"s# includin" any !e!oranda# notes or work product of the neutral party or non-party participant# as defined in this Act, $2% an oral or written state!ent !ade or which occurs durin" !ediation or for purposes of considerin"# conductin"# participatin"# initiatin"# continuin" of reconvenin" !ediation or retainin" a !ediator, and $1% pleadin"s# !otions !anifestations# witness state!ents# reports filed or sub!itted in an arbitration or for e-pert evaluation, $i% "(onvention Award" !eans a forei"n arbitral award !ade in a (onvention tate, $&% "(onvention tate" !eans a tate that is a !e!ber of the 2ew 3ork (onvention, $k% "(ourt" as referred to in Article 4 of the 5odel 'aw shall !ean a Re"ional Trial (ourt, $l% "(ourt-Anne-ed 5ediation" !eans any !ediation process conducted under the auspices of the court# after such court has ac6uired &urisdiction of the dispute,

$!% "(ourt-Referred 5ediation" !eans !ediation ordered by a court to be conducted in accordance with the A"ree!ent of the )arties when as action is pre!aturely co!!enced in violation of such a"ree!ent, $n% "7arly 2eutral 7valuation" !eans an ADR process wherein parties and their lawyers are brou"ht to"ether early in a pre-trial phase to present su!!aries of their cases and receive a nonbindin" assess!ent by an e-perienced# neutral person# with e-pertise in the sub&ect in the substance of the dispute, $o% "8overn!ent A"ency" !eans any "overn!ent entity# office or officer# other than a court# that is vested by law with 6uasi-&udicial power to resolve or ad&udicate dispute involvin" the "overn!ent# its a"encies and instru!entalities# or private persons, $p% "/nternational )arty" shall !ean an entity whose place of business is outside the )hilippines. /t shall not include a do!estic subsidiary of such international party or a coventurer in a &oint venture with a party which has its place of business in the )hilippines. The ter! forei"ner arbitrator shall !ean a person who is not a national of the )hilippines. $6% "5ediation" !eans a voluntary process in which a !ediator# selected by the disputin" parties# facilitates co!!unication and ne"otiation# and assist the parties in reachin" a voluntary a"ree!ent re"ardin" a dispute. $r% "5ediator" !eans a person who conducts !ediation, $s% "5ediation )arty" !eans a person who participates in a !ediation and whose consent is necessary to resolve the dispute, $t% "5ediation-Arbitration" or 5ed-Arb is a step dispute resolution process involvin" both !ediation and arbitration, $u% "5ini-Trial" !eans a structured dispute resolution !ethod in which the !erits of a case are ar"ued before a panel co!prisin" senior decision !akers with or without the presence of a neutral third person after which the parties seek a ne"otiated settle!ent, $v% "5odel 'aw" !eans the 5odel 'aw on /nternational (o!!ercial Arbitration adopted by the 9nited 2ations (o!!ission on /nternational Trade 'aw on 20 :une 0;<=, $w% "2ew 3ork (onvention" !eans the 9nited 2ations (onvention on the Reco"nition and 7nforce!ent of *orei"n Arbitral Awards approved in 0;=< and ratified by the )hilippine enate under enate Resolution 2o. >0, $-% "2on-(onvention Award" !eans a forei"n arbitral award !ade in a tate which is not a (onvention tate, $y% "2on-(onvention tate" !eans a tate that is not a !e!ber of the 2ew 3ork (onvention. $?% "2on-)arty )articipant" !eans a person# other than a party or !ediator# who participates in a !ediation proceedin" as a witness# resource person or e-pert, $aa% ")roceedin"" !eans a &udicial# ad!inistrative# or other ad&udicative process# includin" related pre-hearin" !otions# conferences and discovery, $bb% "Record" !eans an infor!ation written on a tan"ible !ediu! or stored in an electronic or other si!ilar !ediu!# retrievable for!, and $cc% "Roster" !eans a list of persons 6ualified to provide ADR services as neutrals or to serve as arbitrators. SEC. 4. Electronic Signatures in Global and E-Commerce Act. - The provisions of the 7lectronic i"natures in 8lobal and 7-(o!!erce Act# and its i!ple!entin" Rules and Re"ulations shall apply to proceedin" conte!plated in this Act. SEC. 5. Liability of ADR Provider and Practitioner. - The ADR providers and practitioners shall have the sa!e civil liability for the Acts done in the perfor!ance of then duties as that of public officers as provided in ection 1< $0%# (hapter ;# @ook of the Ad!inistrative (ode of 0;<>. SEC. ,. Exce tion to t!e A lication of t!is Act. - The provisions of this Act shall not apply to resolution or settle!ent of the followin"+ $a% labor disputes covered by )residential Decree 2o. 442# otherwise known as the 'abor (ode of the )hilippines# as a!ended and its /!ple!entin" Rules and Re"ulations, $b% the civil status of persons, $c% the validity of a !arria"e, $d% any "round for le"al separation, $e% the &urisdiction of courts, $f% future le"iti!e, $"% cri!inal liability, and $h% those which by law cannot be co!pro!ised.

C A$TER 2 ) &E#IATION SEC. -. Sco e. - The provisions of this (hapter shall cover voluntary !ediation# whether ad hoc or institutional# other than court-anne-ed. The ter! "!ediationA shall include conciliation. SEC. 8. A lication and "nter retation. - /n applyin" construin" the provisions of this (hapter# consideration !ust be "iven to the need to pro!ote candor or parties and !ediators throu"h confidentiality of the !ediation process# the policy of fosterin" pro!pt# econo!ical# and a!icable resolution of disputes in accordance with the principles of inte"rity of deter!ination by the parties# and the policy that the decision-!akin" authority in the !ediation process rests with the parties. SEC. 9. Confidentiality of "nformation. - /nfor!ation obtained throu"h !ediation proceedin"s shall be sub&ect to the followin" principles and "uidelines+ $a% /nfor!ation obtained throu"h !ediation shall be privile"ed and confidential. $b% A party# a !ediator# or a nonparty participant !ay refuse to disclose and !ay prevent any other person fro! disclosin" a !ediation co!!unication. $c% (onfidential /nfor!ation shall not be sub&ect to discovery and shall be inad!issible if any adversarial proceedin"# whether &udicial or 6uasi-&udicial# Bowever# evidence or infor!ation that is otherwise ad!issible or sub&ect to discovery does not beco!e inad!issible or protected fro! discovery solely by reason of its use in a !ediation. $d% /n such an adversarial proceedin"# the followin" persons involved or previously involved in a !ediation !ay not be co!pelled to disclose confidential infor!ation obtained durin" !ediation+ $0% the parties to the dispute, $2% the !ediator or !ediators, $1% the counsel for the parties, $4% the nonparty participants, $=% any persons hired or en"a"ed in connection with the !ediation as secretary# steno"rapher# clerk or assistant, and $4% any other person who obtains or possesses confidential infor!ation by reason of hisCher profession. $e% The protections of this Act shall continue to apply even of a !ediator is found to have failed to act i!partially. $f% a !ediator !ay not be called to testify to provide infor!ation "athered in !ediation. A !ediator who is wron"fully subpoenaed shall be rei!bursed the full cost of his attorneyAs fees and related e-penses. SEC. (0. #aiver of Confidentiality. - A privile"e arisin" fro! the confidentiality of infor!ation !ay be waived in a record# or orally durin" a proceedin" by the !ediator and the !ediation parties. A privile"e arisin" fro! the confidentiality of infor!ation !ay likewise be waived by a nonparty participant if the infor!ation is provided by such nonparty participant. A person who discloses confidential infor!ation shall be precluded fro! assertin" the privile"e under ection ; of this (hapter to bar disclosure of the rest of the infor!ation necessary to a co!plete understandin" of the previously disclosed infor!ation. /f a person suffers loss or da!a"es in a &udicial proceedin" a"ainst the person who !ade the disclosure. A person who discloses or !akes a representation about a !ediation is preclude fro! assertin" the privile"e under ection ;# to the e-tent that the co!!unication pre&udices another person in the proceedin" and it is necessary for the person pre&udiced to respond to the representation of disclosure. SEC. ((. Exce tions to Privilege. $a% There is no privile"e a"ainst disclosure under ection ; if !ediation co!!unication is+ $0% in an a"ree!ent evidenced by a record authenticated by all parties to the a"ree!ent, $2% available to the public or that is !ade durin" a session of a !ediation which is open# or is re6uired by law to be open# to the public, $1% a threat or state!ent of a plan to inflict bodily in&ury or co!!it a cri!e of violence, $4% internationally used to plan a cri!e# atte!pt to co!!it# or co!!it a cri!e# or conceal an on"oin" cri!e or cri!inal activity, $=% sou"ht or offered to prove or disprove abuse# ne"lect# abandon!ent# or e-ploitation in a proceedin" in which a public a"ency is protectin" the interest of an individual protected by law, but this e-ception does not apply where a child protection !atter is referred to !ediation by a court or a public a"ency participates in the child protection !ediation,

$4% sou"ht or offered to prove or disprove a clai! or co!plaint of professional !isconduct or !alpractice filed a"ainst !ediator in a proceedin", or $>% sou"ht or offered to prove or disprove a clai! of co!plaint of professional !isconduct of !alpractice filed a"ainst a party# nonparty participant# or representative of a party based on conduct occurrin" durin" a !ediation. $b% There is no privile"e under ection ; if a court or ad!inistrative a"ency# finds# after a hearin" in ca!era# that the party seekin" discovery of the proponent of the evidence has shown that the evidence is not otherwise available# that there is a need for the evidence that substantially outwei"hs the interest in protectin" confidentiality# and the !ediation co!!unication is sou"ht or offered in+ $0% a court proceedin" involvin" a cri!e or felony, or $2% a proceedin" to prove a clai! or defense that under the law is sufficient to refor! or avoid a liability on a contract arisin" out of the !ediation. $c% A !ediator !ay not be co!pelled to provide evidence of a !ediation co!!unication or testify in such proceedin". $d% /f a !ediation co!!unication is not privile"ed under an e-ception in subsection $a% or $b%# only the portion of the co!!unication necessary for the application of the e-ception for nondisclosure !ay be ad!itted. The ad!ission of particular evidence for the li!ited purpose of an e-ception does not render that evidence# or any other !ediation co!!unication# ad!issible for any other purpose. SEC. (2. Pro!ibited $ediator Re orts. - A !ediator !ay not !ake a report# assess!ent# evaluation# reco!!endation# findin"# or other co!!unication re"ardin" a !ediation to a court or a"ency or other authority that !ake a rulin" on a dispute that is the sub&ect of a !ediation# e-cept+ $a% .here the !ediation occurred or has ter!inated# or where a settle!ent was reached. $b% As per!itted to be disclosed under ection 01 of this (hapter. SEC. (+. $ediator%s Disclosure and Conflict of "nterest. - The !ediation shall be "uided by the followin" operative principles+ $a% @efore acceptin" a !ediation# an individual who is re6uested to serve as a !ediator shall+ $0% !ake an in6uiry that is reasonable under the circu!stances to deter!inate whether there are any known facts that a reasonable individual would consider likely to affect the i!partiality of the !ediator# includin" a financial or personal interest in the outco!e of the !ediation and any e-istin" or past relationship with a party or foreseeable participant in the !ediation, and $2% disclosure to the !ediation parties any such fact known or learned as soon as is practical before acceptin" a !ediation. $b% /f a !ediation learns any fact described in para"raph $a% $0% of this section after acceptin" a !ediation# the !ediator shall disclose it as soon as practicable. At the re6uest of a !ediation party# an individual who is re6uested to serve as !ediator shall disclose hisCher 6ualifications to !ediate a dispute. This Act does not re6uire that a !ediator shall have special 6ualifications by back"round or profession unless the special 6ualifications of a !ediator are re6uired in the !ediation a"ree!ent or by the !ediation parties. SEC. (4. Partici ation in $ediation. - 7-cept as otherwise provided in this Act# a party !ay desi"nate a lawyer or any other person to provide assistance in the !ediation. A lawyer of this ri"ht shall be !ade in writin" by the party waivin" it. A waiver of participation or le"al representation !ay be rescinded at any ti!e. SEC. (5. Place of $ediation. - The parties are free to a"ree on the place of !ediation. *ailin" such a"ree!ent# the place of !ediation shall be any place convenient and appropriate to all parties. SEC. (,. Effect of Agreement to Submit Dis ute to $ediation &nder "nstitutional Rules . - An a"ree!ent to sub!it a dispute to !ediation by any institution shall include an a"ree!ent to be bound by the internal !ediation and ad!inistrative policies of such institution. *urther# an a"ree!ent to sub!it a dispute to !ediation under international !ediation rule shall be dee!ed to include an a"ree!ent to have such rules "overn the !ediation of the dispute and for the !ediator# the parties# their respective counsel# and nonparty participants to abide by such rules. /n case of conflict between the institutional !ediation rules and the provisions of this Act# the latter shall prevail. SEC. (-. Enforcement of $ediated Settlement Agreement. - The !ediation shall be "uided by the followin" operative principles+

$a% A settle!ent a"ree!ent followin" successful !ediation shall be prepared by the parties with the assistance of their respective counsel# if any# and by the !ediator. The parties and their respective counsels shall endeavor to !ake the ter!s and condition thereof co!plete and !ake ade6uate provisions for the contin"ency of breach to avoid conflictin" interpretations of the a"ree!ent. $b% The parties and their respective counsels# if any# shall si"n the settle!ent a"ree!ent. The !ediator shall certify that heCshe e-plained the contents of the settle!ent a"ree!ent to the parties in a lan"ua"e known to the!. $c% /f the parties so desire# they !ay deposit such settle!ent a"ree!ent with the appropriate (lerk of a Re"ional Trial (ourt of the place where one of the parties resides. .here there is a need to enforce the settle!ent a"ree!ent# a petition !ay be filed by any of the parties with the sa!e court# in which case# the court shall proceed su!!arily to hear the petition# in accordance with such rules of procedure as !ay be pro!ul"ated by the upre!e (ourt. $d% The parties !ay a"ree in the settle!ent a"ree!ent that the !ediator shall beco!e a sole arbitrator for the dispute and shall treat the settle!ent a"ree!ent as an arbitral award which shall be sub&ect to enforce!ent under Republic Act 2o. <>4# otherwise known as the Arbitration 'aw# notwithstandin" the provisions of 7-ecutive Drder 2o. 000< for !ediated dispute outside of the (/A(. C A$TER + ) OT ER A#R !OR&S SEC. (8. Referral of Dis ute to ot!er ADR 'orms. - The parties !ay a"ree to refer one or !ore or all issues arisin" in a dispute or durin" its pendency to other for!s of ADR such as but not li!ited to $a% the evaluation of a third person or $b% a !ini-trial# $c% !ediation-arbitration# or a co!bination thereof. *or purposes of this Act# the use of other ADR for!s shall be "overned by (hapter 2 of this Act e-cept where it is co!bined with arbitration in which case it shall likewise be "overned by (hapter = of this Act. C A$TER 4 ) INTERNATIONAL CO&&ERCIAL AR'ITRATION SEC. (9. Ado tion of t!e $odel La( on "nternational Commercial Arbitration. - /nternational co!!ercial arbitration shall be "overned by the 5odel 'aw on /nternational (o!!ercial Arbitration $the "5odel 'aw"% adopted by the 9nited 2ations (o!!ission on /nternational Trade 'aw on :une 20# 0;<= $9nited 2ations Docu!ent AC40C0>% and reco!!ended approved on Dece!ber 00# 0;<=# copy of which is hereto attached as Appendi- "A". SEC. 20. "nter retation of $odel La(. - /n interpretin" the 5odel 'aw# re"ard shall be had to its international ori"in and to the need for unifor!ity in its interpretation and resort !ay be !ade to the travaux preparatories and the report of the ecretary 8eneral of the 9nited 2ations (o!!ission on /nternational Trade 'aw dated 5arch 2=# 0;<= entitled# "/nternational (o!!ercial Arbitration+ Analytical (o!!entary on Draft Trade identified by reference nu!ber AC(2. ;C244." SEC. 2(. Commercial Arbitration. - An arbitration is "co!!ercial" if it covers !atters arisin" fro! all relationships of a co!!ercial nature# whether contractual or not. Relationships of a transactions+ any trade transaction for the supply or e-chan"e of "oods or services, distribution a"ree!ents, construction of works, co!!ercial representation or a"ency, factorin", leasin"# consultin", en"ineerin", licensin", invest!ent, financin", bankin", insurance, &oint venture and other for!s of industrial or business cooperation, carria"e of "oods or passen"ers by air# sea# rail or road. SEC. 22. Legal Re resentation in "nternational Arbitration. - /n international arbitration conducted in the )hilippines# a party !ay be presented by any person of his choice. Provided# that such representative# unless ad!itted to the practice of law in the )hilippines# shall not be authori?ed to appear as counsel in any )hilippine court# or any other 6uasi-&udicial body whether or not such appearance is in relation to the arbitration in which he appears. SEC. 2+. Confidential of Arbitration Proceedings. - The arbitration proceedin"s# includin" the records# evidence and the arbitral award# shall be considered confidential and shall not be published e-cept $0% with the consent of the parties# or $2% for the li!ited purpose of disclosin" to the court of relevant docu!ents in cases where resort to the court is allowed herein. )rovided# however# that the court in which the action or the appeal is pendin" !ay issue a protective order to prevent or prohibit disclosure of docu!ents or infor!ation containin" secret processes# develop!ents# research and other infor!ation where it is shown that the applicant shall be !aterially pre&udiced by an authori?ed disclosure thereof. SEC. 24. Referral to Arbitration. - A court before which an action is brou"ht in a !atter which is the sub&ect !atter of an arbitration a"ree!ent shall# if at least one party so re6uests not later that the pre-trial conference# or upon the re6uest of both parties thereafter# refer the parties to arbitration unless it finds that the arbitration a"ree!ent is null and void# inoperative or incapable of bein" perfor!ed. SEC. 25. "nter retation of t!e Act. - /n interpretin" the Act# the court shall have due re"ard to the policy of the law in favor of arbitration. .here action is co!!enced by or a"ainst !ultiple parties# one or !ore of who! are parties who are bound by the arbitration a"ree!ent althou"h the civil action !ay continue as to those who are not bound by such arbitration a"ree!ent.

SEC. 2,. $eaning of )A ointing Aut!ority*). - "Appointin" Authority" as used in the 5odel 'aw shall !ean the person or institution na!ed in the arbitration a"ree!ent as the appointin" authority, or the re"ular arbitration arbitration institution under whose rules the arbitration is a"reed to be conducted. .here the parties have a"reed to sub!it their dispute to institutional arbitration rules# and unless they have a"reed to a different procedure# they shall be dee!ed to have a"reed to procedure under such arbitration rules for the selection and appoint!ent of arbitrators. /n ad hoc arbitration# the default appoint!ent of an arbitrator shall be !ade by the 2ational )resident of the /nte"rated @ar of the )hilippines $/@)% or his duly authori?ed representative. SEC. 2-. #!at 'unctions $ay be Performed by A ointing Aut!ority. - The functions referred to in Articles 00$1%# 00$4%# 01$1% and 04$0% of the 5odel 'aw shall be perfor!ed by the Appointin" Authority# unless the latter shall fail or refuse to act within thirty $10% days fro! receipt of the re6uest in which case the applicant !ay renew the application with the (ourt. SEC. 28. Grant of "nterim $easure of Protection. $a% /t is not inco!patible with an arbitration a"ree!ent for a party to re6uest# before constitution of the tribunal# fro! a (ourt an interi! !easure of protection and for the (ourt to "rant such !easure. After constitution of the arbitral tribunal and durin" arbitral proceedin"s# a re6uest for an interi! !easure of protection or !odification thereof# !ay be !ade with the arbitral tribunal or to the e-tent that the arbitral tribunal has no power to act or is unable to act effectively# the re6uest !ay be !ade with the (ourt. The arbitral tribunal is dee!ed constituted when the sole arbitrator or the third arbitrator who has been no!inated# has accepted the no!ination and written co!!unication of said no!ination and acceptance has been received by the party !akin" re6uest. $b% The followin" rules on interi! or provisional relief shall be observed+ $0% Any party !ay re6uest that provision relief be "ranted a"ainst the adverse party+ $2% uch relief !ay be "ranted+ $i% to prevent irreparable loss or in&ury+ $ii% to provide security for the perfor!ance of any obli"ation, $iii% to produce or preserve any evidence, or $iv% to co!pel any other appropriate act or o!ission. $1% The order "rantin" provisional relief !ay be conditioned upon the provision of security or any act or o!ission specified in the order. $4% /nteri! or provisional relief is re6uested by written application trans!itted by reasonable !eans to the (ourt or arbitral tribunal as the case !ay be and the party a"ainst who! the relief is sou"ht# describin" in appropriate detail the precise relief# the party a"ainst who! the relief is re6uested# the "rounds for the relief# and evidence supportin" the re6uest. $=% The order shall be bindin" upon the parties. $4% 7ither party !ay apply with the (ourt for assistance in /!ple!entin" or enforcin" an interi! !easure ordered by an arbitral tribunal. $>% A party who does not co!ply with the order shall be liable for all da!a"es resultin" fro! nonco!pliance# includin" all e-penses# and reasonable attorneyAs fees# paid in obtainin" the orderAs &udicial enforce!ent. SEC. 29. 'urt!er Aut!ority for Arbitrator to Grant "nterim $easure of Protection. - 9nless otherwise a"reed by the parties# the arbitral tribunal !ay# at the re6uest of a party# order any party to take such interi! !easures of protection as the arbitral tribunal !ay consider necessary in respect of the sub&ect !atter of the dispute followin" the rules in ection 2<# para"raph 2. uch interi! !easures !ay include but shall not be li!ited to preli!inary in&uction directed a"ainst a party# appoint!ent of receivers or detention# preservation# inspection of property that is the sub&ect of the dispute in arbitration. 7ither party !ay apply with the (ourt for assistance in i!ple!entin" or enforcin" an interi! !easures ordered by an arbitral tribunal. SEC. +0. Place of Arbitration. - The parties are free to a"ree on the place of arbitration. *ailin" such a"ree!ent# the place of arbitration shall be in 5etro 5anila# unless the arbitral tribunal# havin" re"ard to the circu!stances of the case# includin" the convenience of the parties shall decide on a different place of arbitration. The arbitral tribunal !ay# unless otherwise a"reed by the parties# !eet at any place it considers appropriate for consultation a!on" its !e!bers# for hearin" witnesses# e-perts# or the parties# or for inspection of "oods# other property or docu!ents.

SEC. +(. Language of t!e Arbitration. - The parties are free to a"ree on the lan"ua"e or lan"ua"es to be used in the arbitral proceedin"s. *ailin" such a"ree!ent# the lan"ua"e to be used shall be 7n"lish in international arbitration# and 7n"lish or *ilipino for do!estic arbitration# unless the arbitral tribunal shall deter!ine a different or another lan"ua"e or lan"ua"es to be used in the proceedin"s. This a"ree!ent or deter!ination# unless otherwise specified therein# shall apply to any written state!ent by a party# any hearin" and any award# decision or other co!!unication by the arbitral tribunal. The arbitral tribunal !ay order that any docu!entary evidence shall be acco!panied by a translation into the lan"ua"e or lan"ua"es a"reed upon by the parties or deter!ined in accordance with para"raph 0 of this section. C A$TER 5 ) #O&ESTIC AR'ITRATION SEC. +2. La( Governing Domestic Arbitration. - Do!estic arbitration shall continue to be "overned by Republic Act 2o. <>4# otherwise known as "The Arbitration 'aw" as a!ended by this (hapter. The ter! "do!estic arbitration" as used herein shall !ean an arbitration that is not international as defined in Article $1% of the 5odel 'aw. SEC. ++. A licability to Domestic Arbitration . - Article <# 00# 00# 02# 01# 04# 0< and 0; and 2; to 12 of the 5odel 'aw and ection 22 to 10 of the precedin" (hapter 4 shall apply to do!estic arbitration. C A$TER , ) AR'ITRATION O! CONSTRUCTION #IS$UTES SEC. +4. Arbitration of Construction Dis utes+ Governing La(. - The arbitration of construction disputes shall be "overned by 7-ecutive Drder 2o. 000<# otherwise known as the (onstitution /ndustry Arbitration 'aw. SEC. +5. Coverage of t!e La(. - (onstruction disputes which fall within the ori"inal and e-clusive &urisdiction of the (onstruction /ndustry Arbitration (o!!ission $the "(o!!ission"% shall include those between or a!on" parties to# or who are otherwise bound by# an arbitration a"ree!ent# directly or by reference whether such parties are pro&ect owner# contractor# subcontractor# 6uantity surveyor# bonds!an or issuer of an insurance policy in a construction pro&ect. The (o!!ission shall continue to e-ercise ori"inal and e-clusive &urisdiction over construction disputes althou"h the arbitration is "co!!ercial" pursuant to ection 20 of this Act. SEC. +,. Aut!ority to Act as $ediator or Arbitrator. - @y written a"ree!ent of the parties to a dispute# an arbitrator !ay act as !ediator and a !ediator !ay act as arbitrator. The parties !ay also a"ree in writin" that# followin" a successful !ediation# the !ediator shall issue the settle!ent a"ree!ent in the for! of an arbitral award. SEC. +-. A ointment of 'oreign Arbitrator. - The (onstruction /ndustry Arbitration (o!!ission $(/A(% shall pro!ul"ate rules to allow for the appoint!ent of a forei"n arbitrator or coarbitrator or chair!an of a tribunal a person who has not been previously accredited by (/A(+ )rovided# That+ $a% the dispute is a construction dispute in which one party is an international party $b% the person to be appointed a"reed to abide by the arbitration rules and policies of (/A(, $c% heCshe is either coarbitrator upon the no!ination of the international party, or heCshe is the co!!on choice of the two (/A(-accredited arbitrators first appointed one of who! was no!inated by the international party, and $d% the forei"n arbitrator shall be of different nationality fro! the international party. SEC. +8. A licability to Construction Arbitration. - The provisions of ections 0> $d% of (hapter 2# and ection 2< and 2; of this Act shall apply to arbitration of construction disputes covered by this (hapter. SEC. +9. Court to Dismiss Case "nvolving a Construction Dis ute. - A re"ional trial court which a construction dispute is filed shall# upon beco!in" aware# not later than the pretrial conference# that the parties had entered into an arbitration to be conducted by the (/A(# unless both parties# assisted by their respective counsel# shall sub!it to the re"ional trial court a written a"ree!ent e-clusive for the (ourt# rather than the (/A(# to resolve the dispute.

C A$TER - ) .U#ICIAL RE"IE/ O! AR'ITRAL A/AR#S A. #O&ESTIC A/AR#S SEC. 40. Confirmation of A(ard. - The confir!ation of a do!estic arbitral award shall be "overned by ection 21 of R.A. <>4. A do!estic arbitral award when confir!ed shall be enforced in the sa!e !anner as final and e-ecutory decisions of the Re"ional Trial (ourt. The confir!ation of a do!estic award shall be !ade by the re"ional trial court in accordance with the Rules of )rocedure to be pro!ul"ated by the upre!e (ourt. A (/A( arbitral award need not be confir!ed by the re"ional trial court to be e-ecutory as provided under 7.D. 2o. 000<. SEC. 4(. ,acation A(ard. - A party to a do!estic arbitration !ay 6uestion the arbitral award with the appropriate re"ional trial court in accordance with the rules of procedure to be pro!ul"ated by the upre!e (ourt only on those "rounds enu!erated in ection 2= of Republic Act 2o. <>4. Any other "round raised a"ainst a do!estic arbitral award shall be disre"arded by the re"ional trial court. '. !OREI*N AR'ITRAL A/AR#S SEC. 42. A lication of t!e -e( .or/ Convention. - The 2ew 3ork (onvention shall "overn the reco"nition and enforce!ent of arbitral awards covered by the said (onvention. The reco"nition and enforce!ent of such arbitral awards shall be filled with re"ional trial court in accordance with the rules of procedure to be pro!ul"ated by the upre!e (ourt. aid procedural rules shall provide that the party relyin" on the award or applyin" for its enforce!ent shall file with the court the ori"inal or authenticated copy of the award and the arbitration a"ree!ent. /f the award or a"ree!ent is not !ade in any of the official lan"ua"es# the party shall supply a duly certified translation thereof into any of such lan"ua"es. The applicant shall establish that the country in which forei"n arbitration award was !ade is a party to the 2ew 3ork (onvention. /f the application for re&ection or suspension of enforce!ent of an award has been !ade# the re"ional trial court !ay# if it considers it proper# vacate its decision and !ay also# on the application of the party clai!in" reco"nition or enforce!ent of the award# order the party to provide appropriate security. SEC. 4+. Recognition and Enforcement of 'oreign Arbitral A(ards -ot Covered by t!e -e( .or/ Convention . - The reco"nition and enforce!ent of forei"n arbitral awards not covered by the 2ew 3ork (onvention shall be done in accordance with procedural rules to be pro!ul"ated by the upre!e (ourt. The (ourt !ay# "rounds of co!ity and reciprocity# reco"ni?e and enforce a nonconvention award as a convention award. SEC. 44. 'oreign Arbitral A(ard -ot 'oreign 0udgment. - A forei"n arbitral award when confir!ed by a court of a forei"n country# shall be reco"ni?ed and enforced as a forei"n arbitral award and not a &ud"!ent of a forei"n court. A forei"n arbitral award# when confir!ed by the re"ional trial court# shall be enforced as a forei"n arbitral award and not as a &ud"!ent of a forei"n court. A forei"n arbitral award# when confir!ed by the re"ional trial court# shall be enforced in the sa!e !anner as final and e-ecutory decisions of courts of law of the )hilippines. SEC. 45. Re1ection of a 'oreign Arbitral A(ard. - A party to a forei"n arbitration proceedin" !ay oppose an application for reco"nition and enforce!ent of the arbitral award in accordance with the procedural rules to be pro!ul"ated by the upre!e (ourt only on those "rounds enu!erated under Article E of the 2ew 3ork (onvention. Any other "round raised shall be disre"arded by the re"ional trial court. SEC. 4,. A eal from Court Decisions on Arbitral A(ards. - A decision of the re"ional trial court confir!in"# vacatin"# settin" aside# !odifyin" or correctin" an arbitral award !ay be appealed to the (ourt of Appeals in accordance with the rules of procedure to be pro!ul"ated by the upre!e (ourt. The losin" party who appeals fro! the &ud"!ent of the court confir!in" an arbitral award shall re6uired by the appealant court to post counterbond e-ecuted in favor of the prevailin" party e6ual to the a!ount of the award in accordance with the rules to be pro!ul"ated by the upre!e (ourt. SEC. 4-. ,enue and 0urisdiction. - )roceedin"s for reco"nition and enforce!ent of an arbitration a"ree!ent or for vacation# settin" aside# correction or !odification of an arbitral award# and any application with a court for arbitration assistance and supervision shall be dee!ed as special proceedin"s and shall be filled with the re"ional trial court $i% where arbitration proceedin"s are conducted, $ii% where the asset to be attached or levied upon# or the act to be en&oined is located, $iii% where any of the parties to the dispute resides or has his place of business, or $iv% in the 2ational :udicial (apital Re"ion# at the option of the applicant.

SEC. 48. -otice of Proceeding to Parties. - /n a special proceedin" for reco"nition and enforce!ent of an arbitral award# the (ourt shall send notice to the parties at their address of record in the arbitration# or if any party cannot be served notice at such address# at such partyAs last known address. The notice shall be sent at least fifteen $0=% days before the date set for the initial hearin" of the application. C A$TER 8 ) &ISCELLANEOUS $RO"ISIONS SEC. 49. 2ffice for Alternative Dis ute Resolution. - There is hereby established the Dffice for Alternative Dispute Resolution as an attached a"ency to the Depart!ent of :ustice $DD:% which shall have a ecretariat to be headed by an e-ecutive director. The e-ecutive director shall be appointed by the )resident of the )hilippines. The ob&ective of the office are+ $a% to pro!ote# develop and e-pand the use of ADR in the private and public sectors, and To assist the "overn!ent to !onitor# study and evaluate the use by the public and the private sector of ADR# and reco!!end to (on"ress needful statutory chan"es to develop. tren"then and i!prove ADR practices in accordance with world standards. SEC. 50. Po(ers and 'unctions of t!e 2ffice for Alternative Dis ute Resolution. - The Dffice for Alternative Dispute Resolution shall have the followin" powers and functions+ $a% To for!ulate standards for the trainin" of the ADR practitioners and service providers, $b% To certify that such ADR practitioners and ADR service providers have under"one the professional trainin" provided by the office, $c% To coordinate the develop!ent# i!ple!entation# !onitorin"# and evaluation of "overn!ent ADR pro"ra!s, $d% To char"e fees for their services, and $e% To perfor! such acts as !ay be necessary to carry into effect the provisions of this Act. SEC. 5(. A ro riations. - The a!ount necessary to carry out the provisions of this Act shall be included in the 8eneral Appropriations Act of the year followin" its enact!ent into law and thereafter. SEC. 52. "m lementing Rules and Regulations 3"RR4. - .ithin one $0% !onth after the approval of this Act# the secretary of &ustice shall convene a co!!ittee that shall for!ulate the appropriate rules and re"ulations necessary for the i!ple!entation of this Act. The co!!ittee# co!posed of representatives fro!+ $a% the Depart!ent of :ustice, $b% the Depart!ent of Trade and /ndustry, $c% the Depart!ent of the /nterior and 'ocal 8overn!ent, $d% the president of the /nte"rated @ar of the )hilippines, $e% A representative fro! the arbitration profession, and $f% A representative fro! the !ediation profession, and $"% A representative fro! the ADR or"ani?ations shall within three $1% !onths after convenin"# sub!it the /RR to the :oint (on"ressional Dversi"ht (o!!ittee for review and approval. The Dversi"ht (o!!ittee shall be co!posed of the chair!an of the enate (o!!ittee on :ustice and Bu!an Ri"hts# chair!an of the Bouse (o!!ittee on :ustice# and one $0% !e!ber each fro! the !a&ority and !inority of both Bouses. The :oint Dversi"ht (o!!ittee shall beco!e functus officio upon approval of the /RR. SEC. 5+. A licability of t!e 5atarungan Pambarangay. - This Act shall not be interpreted to repeal# a!end or !odify the &urisdiction of the Fatarun"an )a!baran"ay under Republic Act 2o. >040# otherwise known as the 'ocal 8overn!ent (ode of 0;;0.

SEC. 54. Re ealing Clause. - All laws# decrees# e-ecutive orders# rules and re"ulations which are inconsistent with the provisions of this Act are hereby repealed# a!ended or !odified accordin"ly. SEC. 55. Se arability Clause. - /f for any reason or reasons# any portion or provision of this Act shall be held unconstitutional or invalid# all other parts or provisions not affected shall thereby continue to re!ain in full force and effect. SEC. 5,. Effectivity. - This act shall take effect fifteen days $0=% after its publication in at least two $2% national newspapers of "eneral circulation.