Arbitration Award

International Commercial Arbitration Foreign Arbitration

UNCITRAL Model Law

vis a vis RA 9285 Sec 19 and Special ADR Rules

Is the state rendering the award a signatory of New York Convention?

Yes NO

State extends comity and

A foreign arbitral award is rendered by an arbitrator or reciprocity to awards in the
panel of arbitrators in a foreign country. Philippines?

On the other hand, an international commercial arbitral

award is rendered pursuant to an international commercial
Yes No
arbitration conducted in the Philippines by an arbitrator or
panel of arbitrators in the Philippines.

Rules of Court

(Award will be
considered as a
Foreign
Judgment)

New York Convention vis a vis

Rule 13, Special ADR Rules

 New York Convention vis a vis Rule 13, Special ADR Rules

Petition to RTC

Determination by the court on the sufficiency of petition

Service of copy of petition to the respondent (Personal, courier or registered mail)

Notice of initial hearing + Directive to file a verified opposition

Filing of a verified opposition (Not necessary; Failure to comply with such would not constitute default)

Court determination

Question of Law Question of Fact

30 days 15-30 days

Submission of a brief of legal arguments Order to submit affidavit of witnesses

Reply affidavit if requested by the parties

Hearing

Decision of the RTC

Recognize and enforce Refuse to recognize and enforce

Motion for reconsideration within 15 days?

Yes No

RTC decision becomes final and executory

 Grant Deny

Appeal by petition for review within 15 days before the CA?

Filing of Appeal bond --------- Yes No

Affirm Reverse RTC decision becomes final and executory

Petition for review before SC?

Yes No

RTC decision becomes final and executory

Recognition and Enforcement Refuse recognition and enforcement

Decision becomes final and executory

 SPECIFIC DETAILS
ON NEW YORK CONVENTION VIS A VIS RULE 13, SPECIAL ADR RULES

I. VENUE
Regional Trial Court:

(a) where the assets to be attached or levied upon is located

(b) where the act to be enjoined is being performed,
(c) in the principal place of business in the Philippines of any of the parties,
(d) if any of the parties is an individual, where any of the individual resides, or
(e) in the National Capital Judicial Region

II. CONTENTS AND DOCUMENTS ACCOMPANYING THE PETITION

1. Verified statement that the “affiant has read the same and that the factual allegations
therein are true and correct of his own personal knowledge or based on authentic
records.”
2. Certification Against Forum Shopping.
3. Board resolution or Secretary’s Certificate as evidence of the authority of the affiant to
verify the petition and execute the Certificate Against Forum Shopping for and on behalf
of the party seeking to recognize and enforce the arbitral award in the Philippines
4. Statement of the following:
(i) Addresses of the parties to arbitration,
(ii) Country where the arbitral award was made and whether such country is a
signatory to the New York Convention, and
(iii) the relief sought.
5. Attachment of the following:
(i) An authentic copy of the arbitration agreement; and
(ii) An authentic copy of the arbitral award

III. NOTICE
Under Rule 13.6 of the Special ADR Rules, upon receipt of the petition, the court shall initially
determine whether it is sufficient in form and in substance. Once that has been made, the court
shall cause the service of a copy of the petition upon the respondent.
The service upon the respondent shall be made, under Rule 1.8 either by:
a. personal service or
b. courier.

● Resort to registered mail is allowed only when courier services are not available.
 IV. INITIAL HEARING
The notice of initial hearing contains a directive for the respondent to file an opposition to the
petition for recognition and enforcement of the foreign arbitral award.
● Respondent’s failure to submit an opposition shall not be cause for a declaration of
default
Once the respondent has filed its opposition, the court determines whether the issue between
the parties is one of law or fact.
● If the issue is mainly one of law, the court will require the submission of a brief of
legal arguments not more than thirty (30) days from receipt of the order.
● If there are issues of fact on grounds relied upon for the court to refuse recognition
and enforcement, the court shall, motu proprio, or upon the request of party,
require the parties to simultaneously submit the affidavits of their respective
witnesses within a period of not less than fifteen (15) days nor more than thirty (30)
days from receipt of the order.

V. INTERIM OR CONSERVATORY MEASURES OF PROTECTION

The interim measures of protection that a court may grant during hearing under Rule 5 of the
Special ADR Rules include
a. preliminary injunction
b. preliminary attachment
c. appointment of a receiver
d. detention
e. preservation
f. delivery or inspection of property or assistance in the enforcement of an interim
measure of protection granted by the arbitral tribunal which the latter cannot enforce
effectively

VI. GROUNDS FOR REFUSAL OF RECOGNITION AND ENFORCEMENT

The Regional Trial Court shall refuse recognition and enforcement of the foreign arbitral award
only if the party making the application to refuse its recognition and enforcement provides
proof that:
1. A party to the arbitration agreement was under some incapacity or that the said
agreement is not valid under the law to which the parties have subjected it or, failing
any indication thereof, under the law of the country where the award was made
2. The party making the application was not given proper notice of the appointment of an
arbitrator or of the arbitral proceedings or was otherwise unable to present his case; or
 3. The award deals with a dispute not contemplated by or not falling within the terms of
the submission to arbitration, or contains decisions on matters beyond the scope of the
submission to arbitration; provided that, if the decision on matters submitted to
arbitration can be separated from those matters not so submitted, only that part of the
award which contains on matters not submitted to arbitration may be set aside; or
4. The composition of the arbitral award or the arbitral procedure was not in accordance
with the agreement of the parties; or failing such agreement, was not in accordance
with the law of the country where arbitration took place; or
5. The award has not yet become binding on the parties or has been set aside or
suspended by a court of the country in which that award was made.
6. The subject-matter of the dispute is not capable of settlement or resolution by
arbitration in the Philippines; or
7. The recognition or enforcement of the award would be contrary to public policy.

VII. EXECUTORY NATURE OF THE REGIONAL TRIAL COURT’S DECISION

Another feature that makes the proceeding for the recognition and enforcement of the foreign
arbitral award in the Philippines particularly attractive is that the decision of the Regional Trial
Court is immediately executory (Rule 13.11 of the Special ADR Rules).
It ensures that the foreign arbitral award is not defeated or rendered illusory during the
pendency of the appeal, especially when the losing party has taken measures to frustrate the
enforcement of the foreign arbitral award

UNCITRAL MODEL LAW VIS A VIS RULE 12 OF SPECIAL ADR RULES

 Petition to the RTC

To Recognize To Set Aside Recognition

Determination of sufficiency of the petition

Notice and Delivery of the Petition to the Respondent

Opposition by the Respondent

Reply of the Petitioner

Submission of Documents (if the Court finds it necessary)

Issues of Law Issues of Facts

Submission of affidavits of witnesses

Submission of briefs of legal arguments Submission of reply affidavits

Oral Hearing (if the Court finds it necessary)

Judgment of the Court

SPECIFIC DETAILS OF
 UNCITRAL MODEL LAW AND SPECIAL ADR RULES, RULE 12

I. PETITION
Where to file?
➢ Regional Trial Court
(a) where arbitration proceedings were conducted;
(b) where any of the assets to be attached or levied upon is located;
(c) where the act to be enjoined will be or is being performed;
(d) where any of the parties to arbitration resides or has its place of business; or
(e) in the National Capital Judicial Region.

When to file?
● Petition to Recognize: anytime from the receipt of the award
● Petition to Set Aside Recognition: Within three (3) months from the receipt of the award
Exclusive recourse against arbitral award

● Recourse to a court against an arbitral award shall be made only through a petition to
set aside the arbitral award and on grounds prescribed by the law that governs
international commercial arbitration.
● Any other recourse from the arbitral award, such as by appeal or petition for review or
petition for certiorari or otherwise, shall be dismissed by the court.
Contents of the Petition
● Petition to Recognize and Enforce:
a. The addresses of record, or any change thereof, of the parties to arbitration;
b. A statement that the arbitration agreement or submission exists;
c. The names of the arbitrators and proof of their appointment;
d. A statement that an arbitral award was issued and when the petitioner received it; and
e. The relief sought.

Apart from other submissions, the petitioner shall attach to the petition the following:
a. An authentic copy of the arbitration agreement;
b. An authentic copy of the arbitral award;
c. A verification and certification against forum shopping executed by the applicant
d. An authentic copy or authentic copies of the appointment of an arbitral tribunal.

● Petition to Set Aside Recognition and Enforcement

a. Those contained in a petition to recognize
b. The grounds relied upon to set aside the recognition
 ❖ If the ground of the petition is the petitioner is a minor or found incompetent by
a court, there shall be attached to the petition certified copies of documents
showing such fact.
❖ In addition, the petitioner shall show that even if the submission or arbitration
agreement was entered into by a guardian or guardian ad litem, the latter was
not authorized by a competent court to sign such the submission or arbitration
agreement.

II. NOTICE
Upon finding that the petition filed under this Rule is sufficient both in form and in substance,
the court shall cause notice and a copy of the petition to be delivered to the respondent
directing him to file an opposition thereto within fifteen (15) days from receipt of the
petition.
● In lieu of an opposition, the respondent may file a petition to set aside in
opposition to a petition to recognize and enforce, or a petition to recognize and enforce
in opposition to a petition to set aside.

III. SUBMISSION OF DOCUMENTS

● If the issue is mainly one of law, the parties may be required to submit briefs of
legal arguments, not more than fifteen (15) days from receipt of the order,
sufficiently discussing the legal issues and the legal basis for the relief prayed for
by each of them.
● If issues of fact, fact relating to the ground(s) relied upon for the court to set
aside, it shall require the parties within a period of not more than fifteen (15)
days from receipt of the order simultaneously to submit the affidavits of all of
their witnesses and reply affidavits within ten (10) days from receipt of the
affidavits to be replied to

IV. HEARING
If on the basis of the petition, the opposition, the affidavits and reply affidavits of the parties,
the court finds that there is a need to conduct an oral hearing, the court shall set the case for
hearing.

❖ This case shall have preference over other cases before the court, except criminal cases.
❖ During the hearing, the affidavits of witnesses shall take the place of their direct
testimonies and they shall immediately be subject to cross-examination thereon.
❖ The court shall have full control over the proceedings in order to ensure that the case is
heard without undue delay.
 V. SUSPENSION OF PROCEEDINGS TO SET ASIDE
The court when asked to set aside an arbitral award may suspend the proceedings for a
period of time determined by it to:
a. give the arbitral tribunal an opportunity to resume the arbitral proceedings or
b. to take such other action as in the arbitral tribunal’s opinion will eliminate the grounds
for setting aside.
● The court, in referring the case back to the arbitral tribunal may not direct it to
revise its award in a particular way, or to revise its findings of fact or conclusions of
law or otherwise encroach upon the independence of an arbitral tribunal in the
making of a final award.

● Presumption in favor of confirmation. - It is presumed that an arbitral award was

made and released in due course and is subject to enforcement by the court, unless
the adverse party is able to establish a ground for setting aside or not enforcing an
arbitral award.

VI. JUDGEMENT OF THE COURT

Unless a ground to set aside an arbitral award under Rule 12.4 above is fully established, the
court shall dismiss the petition. If, in the same proceedings, there is a petition to recognize and
enforce the arbitral award filed in opposition to the petition to set aside, the court shall
recognize and enforce the award.
In resolving the petition or petition in opposition thereto in accordance with the Special ADR
Rules, the court shall either set aside or enforce the arbitral award.
The court shall not disturb the arbitral tribunal’s determination of facts and/or interpretation of
law.