Republic Act No.

9285, Alternative Dispute Resolution Act of 2004 (c) "Authenticate" means to sign, execute or adopt a symbol, or encrypt a record
in whole or in part, intended to identity the authenticating party and to adopt,
accept or establish the authenticity of a record or term;
Republic Act No. 9285 April 2, 2004
(d) "Arbitration" means a voluntary dispute resolution process in which one or
more arbitrators, appointed in accordance with the agreement of the parties, or
AN ACT TO INSTITUTIONALIZE THE USE OF AN ALTERNATIVE DISPUTE
rules promulgated pursuant to this Act, resolve a dispute by rendering an award;
RESOLUTION SYSTEM IN THE PHILIPPINES AND TO ESTABLISH THE OFFICE FOR
ALTERNATIVE DISPUTE RESOLUTION, AND FOR OTHER PURPOSES
(e) "Arbitrator" means the person appointed to render an award, alone or with
others, in a dispute that is the subject of an arbitration agreement;
Be it enacted by the Senate and House of Representatives of the Philippine Congress
Assembled:
(f) "Award" means any partial or final decision by an arbitrator in resolving the
issue in a controversy;
CHAPTER 1 - GENERAL PROVISIONS

(g) "Commercial Arbitration" An arbitration is "commercial if it covers matter

SECTION 1. Title. - This act shall be known as the "Alternative Dispute Resolution Act of
arising from all relationships of a commercial nature, whether contractual or not;
2004."

(h) "Confidential information" means any information, relative to the subject of

SEC. 2. Declaration of Policy. - it is hereby declared the policy of the State to actively
mediation or arbitration, expressly intended by the source not to be disclosed, or
promote party autonomy in the resolution of disputes or the freedom of the party to make
obtained under circumstances that would create a reasonable expectation on
their own arrangements to resolve their disputes. Towards this end, the State shall
behalf of the source that the information shall not be disclosed. It shall include (1)
encourage and actively promote the use of Alternative Dispute Resolution (ADR) as an
communication, oral or written, made in a dispute resolution proceedings,
important means to achieve speedy and impartial justice and declog court dockets. As
including any memoranda, notes or work product of the neutral party or non-party
such, the State shall provide means for the use of ADR as an efficient tool and an
participant, as defined in this Act; (2) an oral or written statement made or which
alternative procedure for the resolution of appropriate cases. Likewise, the State shall
occurs during mediation or for purposes of considering, conducting, participating,
enlist active private sector participation in the settlement of disputes through ADR. This Act
initiating, continuing of reconvening mediation or retaining a mediator; and (3)
shall be without prejudice to the adoption by the Supreme Court of any ADR system, such
pleadings, motions manifestations, witness statements, reports filed or submitted
as mediation, conciliation, arbitration, or any combination thereof as a means of achieving
in an arbitration or for expert evaluation;
speedy and efficient means of resolving cases pending before all courts in the Philippines
which shall be governed by such rules as the Supreme Court may approve from time to
time. (i) "Convention Award" means a foreign arbitral award made in a Convention
State;
SEC. 3. Definition of Terms. - For purposes of this Act, the term:
(j) "Convention State" means a State that is a member of the New York
Convention;
(a) "Alternative Dispute Resolution System" means any process or procedure
used to resolve a dispute or controversy, other than by adjudication of a presiding
judge of a court or an officer of a government agency, as defined in this Act, in (k) "Court" as referred to in Article 6 of the Model Law shall mean a Regional
which a neutral third party participates to assist in the resolution of issues, which Trial Court;
includes arbitration, mediation, conciliation, early neutral evaluation, mini-trial, or
any combination thereof; (l) "Court-Annexed Mediation" means any mediation process conducted under
the auspices of the court, after such court has acquired jurisdiction of the dispute;
(b) "ADR Provider" means institutions or persons accredited as mediator,
conciliator, arbitrator, neutral evaluator, or any person exercising similar functions (m) "Court-Referred Mediation" means mediation ordered by a court to be
in any Alternative Dispute Resolution system. This is without prejudice to the conducted in accordance with the Agreement of the Parties when as action is
rights of the parties to choose nonaccredited individuals to act as mediator, prematurely commenced in violation of such agreement;
conciliator, arbitrator, or neutral evaluator of their dispute.
(n) "Early Neutral Evaluation" means an ADR process wherein parties and their
Whenever reffered to in this Act, the term "ADR practitioners" shall refer to lawyers are brought together early in a pre-trial phase to present summaries of
individuals acting as mediator, conciliator, arbitrator or neutral evaluator; their cases and receive a nonbinding assessment by an experienced, neutral
person, with expertise in the subject in the substance of the dispute;
(o) "Government Agency" means any government entity, office or officer, other
than a court, that is vested by law with quasi-judicial power to resolve or
adjudicate dispute involving the government, its agencies and instrumentalities,
or private persons;
(p) "International Party" shall mean an entity whose place of business is outside
the Philippines. It shall not include a domestic subsidiary of such international
party or a coventurer in a joint venture with a party which has its place of
business in the Philippines.
The term foreigner arbitrator shall mean a person who is not a national of the
Philippines.
(q) "Mediation" means a voluntary process in which a mediator, selected by the
disputing parties, facilitates communication and negotiation, and assist the
parties in reaching a voluntary agreement regarding a dispute.
(r) "Mediator" means a person who conducts mediation;
(s) "Mediation Party" means a person who participates in a mediation and whose
consent is necessary to resolve the dispute;
(t) "Mediation-Arbitration" or Med-Arb is a step dispute resolution process
involving both mediation and arbitration;
(u) "Mini-Trial" means a structured dispute resolution method in which the merits
of a case are argued before a panel comprising senior decision makers with or
without the presence of a neutral third person after which the parties seek a
negotiated settlement;
(v) "Model Law" means the Model Law on International Commercial Arbitration
adopted by the United Nations Commission on International Trade Law on 21
June 1985;
(w) "New York Convention" means the United Nations Convention on the
Recognition and Enforcement of Foreign Arbitral Awards approved in 1958 and
ratified by the Philippine Senate under Senate Resolution No. 71;
(x) "Non-Convention Award" means a foreign arbitral award made in a State
which is not a Convention State;
(y) "Non-Convention State" means a State that is not a member of the New York
Convention.
(z) "Non-Party Participant" means a person, other than a party or mediator, who
participates in a mediation proceeding as a witness, resource person or expert;
(aa) "Proceeding" means a judicial, administrative, or other adjudicative process,
including related pre-hearing motions, conferences and discovery;
(bb) "Record" means an information written on a tangible medium or stored in an
electronic or other similar medium, retrievable form; and
(cc) "Roster" means a list of persons qualified 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
Electronic Signatures in Global and E-Commerce Act, and its implementing Rules and
Regulations shall apply to proceeding contemplated in this Act.
SEC. 5. Liability of ADR Provider and Practitioner. - The ADR providers and
practitioners shall have the same civil liability for the Acts done in the performance of then
duties as that of public officers as provided in Section 38 (1), Chapter 9, Book of the
Administrative Code of 1987.
SEC. 6. Exception to the Application of this Act. - The provisions of this Act shall not
apply to resolution or settlement of the following: (a) labor disputes covered by Presidential
Decree No. 442, otherwise known as the Labor Code of the Philippines, as amended and
its Implementing Rules and Regulations; (b) the civil status of persons; (c) the validity of a
marriage; (d) any ground for legal separation; (e) the jurisdiction of courts; (f) future
legitime; (g) criminal liability; and (h) those which by law cannot be compromised.
CHAPTER 2 - MEDIATION
SEC. 7. Scope. - The provisions of this Chapter shall cover voluntary mediation, whether
ad hoc or institutional, other than court-annexed. The term "mediation' shall include
conciliation.
SEC. 8. Application and Interpretation. - In applying construing the provisions of this
Chapter, consideration must be given to the need to promote candor or parties and
mediators through confidentiality of the mediation process, the policy of fostering prompt,
economical, and amicable resolution of disputes in accordance with the principles of
integrity of determination by the parties, and the policy that the decision-making authority in
the mediation process rests with the parties.
SEC. 9. Confidentiality of Information. - Information obtained through mediation
proceedings shall be subject to the following principles and guidelines:
(a) Information obtained through mediation shall be privileged and confidential.
(b) A party, a mediator, or a nonparty participant may refuse to disclose and may
prevent any other person from disclosing a mediation communication.
(c) Confidential Information shall not be subject to discovery and shall be
inadmissible if any adversarial proceeding, whether judicial or quasi-judicial,
However, evidence or information that is otherwise admissible or subject to
discovery does not become inadmissible or protected from discovery solely by
reason of its use in a mediation.
 (d) In such an adversarial proceeding, the following persons involved or
previously involved in a mediation may not be compelled to disclose confidential
information obtained during mediation: (1) the parties to the dispute; (2) the
mediator or mediators; (3) the counsel for the parties; (4) the nonparty
participants; (5) any persons hired or engaged in connection with the mediation
as secretary, stenographer, clerk or assistant; and (6) any other person who
obtains or possesses confidential information by reason of his/her profession.
(e) The protections of this Act shall continue to apply even of a mediator is found
to have failed to act impartially.
(f) a mediator may not be called to testify to provide information gathered in
mediation. A mediator who is wrongfully subpoenaed shall be reimbursed the full
cost of his attorney's fees and related expenses.
SEC. 10. Waiver of Confidentiality. - A privilege arising from the confidentiality of
information may be waived in a record, or orally during a proceeding by the mediator and
the mediation parties.
A privilege arising from the confidentiality of information may likewise be waived by a
nonparty participant if the information is provided by such nonparty participant.
A person who discloses confidential information shall be precluded from asserting the
privilege under Section 9 of this Chapter to bar disclosure of the rest of the information
necessary to a complete understanding of the previously disclosed information. If a person
suffers loss or damages in a judicial proceeding against the person who made the
disclosure.
A person who discloses or makes a representation about a mediation is preclude from
asserting the privilege under Section 9, to the extent that the communication prejudices
another person in the proceeding and it is necessary for the person prejudiced to respond
to the representation of disclosure.
SEC. 11. Exceptions to Privilege. -
(a) There is no privilege against disclosure under Section 9 if mediation
communication is:
(1) in an agreement evidenced by a record authenticated by all parties
to the agreement;
(2) available to the public or that is made during a session of a
mediation which is open, or is required by law to be open, to the public;
(3) a threat or statement of a plan to inflict bodily injury or commit a
crime of violence;
(4) internationally used to plan a crime, attempt to commit, or commit a
crime, or conceal an ongoing crime or criminal activity;
(5) sought or offered to prove or disprove abuse, neglect,
abandonment, or exploitation in a proceeding in which a public agency
is protecting the interest of an individual protected by law; but this
exception does not apply where a child protection matter is referred to
mediation by a court or a public agency participates in the child
protection mediation;
(6) sought or offered to prove or disprove a claim or complaint of
professional misconduct or malpractice filed against mediator in a
proceeding; or
(7) sought or offered to prove or disprove a claim of complaint of
professional misconduct of malpractice filed against a party, nonparty
participant, or representative of a party based on conduct occurring
during a mediation.
(b) There is no privilege under Section 9 if a court or administrative agency, finds,
after a hearing in camera, that the party seeking 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 outweighs the interest in protecting
confidentiality, and the mediation communication is sought or offered in:
(1) a court proceeding involving a crime or felony; or
(2) a proceeding to prove a claim or defense that under the law is
sufficient to reform or avoid a liability on a contract arising out of the
mediation.
(c) A mediator may not be compelled to provide evidence of a mediation
communication or testify in such proceeding.
(d) If a mediation communication is not privileged under an exception in
subsection (a) or (b), only the portion of the communication necessary for the
application of the exception for nondisclosure may be admitted. The admission of
particular evidence for the limited purpose of an exception does not render that
evidence, or any other mediation communication, admissible for any other
purpose.
SEC. 12. Prohibited Mediator Reports. - A mediator may not make a report, assessment,
evaluation, recommendation, finding, or other communication regarding a mediation to a
court or agency or other authority that make a ruling on a dispute that is the subject of a
mediation, except:
(a) Where the mediation occurred or has terminated, or where a settlement was
reached.
(b) As permitted to be disclosed under Section 13 of this Chapter.
SEC. 13. Mediator's Disclosure and Conflict of Interest. - The mediation shall be
guided by the following operative principles:
 (a) Before accepting a mediation, an individual who is requested to serve as a
mediator shall:
(1) make an inquiry that is reasonable under the circumstances to
determinate whether there are any known facts that a reasonable
individual would consider likely to affect the impartiality of the mediator,
including a financial or personal interest in the outcome of the mediation
and any existing or past relationship with a party or foreseeable
participant in the mediation; and
(2) disclosure to the mediation parties any such fact known or learned
as soon as is practical before accepting a mediation.
(b) If a mediation learns any fact described in paragraph (a) (1) of this section
after accepting a mediation, the mediator shall disclose it as soon as practicable.
At the request of a mediation party, an individual who is requested to serve as mediator
shall disclose his/her qualifications to mediate a dispute.
This Act does not require that a mediator shall have special qualifications by background
or profession unless the special qualifications of a mediator are required in the mediation
agreement or by the mediation parties.
SEC. 14. Participation in Mediation. - Except as otherwise provided in this Act, a party
may designate a lawyer or any other person to provide assistance in the mediation. A
lawyer of this right shall be made in writing by the party waiving it. A waiver of participation
or legal representation may be rescinded at any time.
SEC. 15. Place of Mediation. - The parties are free to agree on the place of mediation.
Failing such agreement, the place of mediation shall be any place convenient and
appropriate to all parties.
SEC. 16. Effect of Agreement to Submit Dispute to Mediation Under Institutional
Rules. - An agreement to submit a dispute to mediation by any institution shall include an
agreement to be bound by the internal mediation and administrative policies of such
institution. Further, an agreement to submit a dispute to mediation under international
mediation rule shall be deemed to include an agreement to have such rules govern the
mediation of the dispute and for the mediator, the parties, their respective counsel, and
nonparty participants to abide by such rules.
In case of conflict between the institutional mediation rules and the provisions of this Act,
the latter shall prevail.
SEC. 17. Enforcement of Mediated Settlement Agreement. - The mediation shall be
guided by the following operative principles:
(a) A settlement agreement following successful mediation shall be prepared by
the parties with the assistance of their respective counsel, if any, and by the
mediator.
The parties and their respective counsels shall endeavor to make the terms and
condition thereof complete and make adequate provisions for the contingency of
breach to avoid conflicting interpretations of the agreement.
(b) The parties and their respective counsels, if any, shall sign the settlement
agreement. The mediator shall certify that he/she explained the contents of the
settlement agreement to the parties in a language known to them.
(c) If the parties so desire, they may deposit such settlement agreement with the
appropriate Clerk of a Regional Trial Court of the place where one of the parties
resides. Where there is a need to enforce the settlement agreement, a petition
may be filed by any of the parties with the same court, in which case, the court
shall proceed summarily to hear the petition, in accordance with such rules of
procedure as may be promulgated by the Supreme Court.
(d) The parties may agree in the settlement agreement that the mediator shall
become a sole arbitrator for the dispute and shall treat the settlement agreement
as an arbitral award which shall be subject to enforcement under Republic Act
No. 876, otherwise known as the Arbitration Law, notwithstanding the provisions
of Executive Order No. 1008 for mediated dispute outside of the CIAC.
CHAPTER 3 - OTHER ADR FORMS
SEC. 18. Referral of Dispute to other ADR Forms. - The parties may agree to refer one
or more or all issues arising in a dispute or during its pendency to other forms of ADR such
as but not limited to (a) the evaluation of a third person or (b) a mini-trial, (c) mediation-
arbitration, or a combination thereof.
For purposes of this Act, the use of other ADR forms shall be governed by Chapter 2 of
this Act except where it is combined with arbitration in which case it shall likewise be
governed by Chapter 5 of this Act.
CHAPTER 4 - INTERNATIONAL COMMERCIAL ARBITRATION
SEC. 19. Adoption of the Model Law on International Commercial Arbitration. -
International commercial arbitration shall be governed by the Model Law on International
Commercial Arbitration (the "Model Law") adopted by the United Nations Commission on
International Trade Law on June 21, 1985 (United Nations Document A/40/17) and
recommended approved on December 11, 1985, copy of which is hereto attached as
Appendix "A".
SEC. 20. Interpretation of Model Law. - In interpreting the Model Law, regard shall be
had to its international origin and to the need for uniformity in its interpretation and resort
may be made to the travaux preparatories and the report of the Secretary General of the
United Nations Commission on International Trade Law dated March 25, 1985 entitled,
"International Commercial Arbitration: Analytical Commentary on Draft Trade identified by
reference number A/CN. 9/264."
SEC. 21. Commercial Arbitration. - An arbitration is "commercial" if it covers matters
arising from all relationships of a commercial nature, whether contractual or not.
Relationships of a transactions: any trade transaction for the supply or exchange of goods
or services; distribution agreements; construction of works; commercial representation or
agency; factoring; leasing, consulting; engineering; licensing; investment; financing;
banking; insurance; joint venture and other forms of industrial or business cooperation;
carriage of goods or passengers by air, sea, rail or road.
SEC. 22. Legal Representation in International Arbitration. - In international arbitration
conducted in the Philippines, a party may be presented by any person of his
choice. Provided, that such representative, unless admitted to the practice of law in the
Philippines, shall not be authorized to appear as counsel in any Philippine court, or any
other quasi-judicial body whether or not such appearance is in relation to the arbitration in
which he appears.
SEC. 23. Confidential of Arbitration Proceedings. - The arbitration proceedings,
including the records, evidence and the arbitral award, shall be considered confidential and
shall not be published except (1) with the consent of the parties, or (2) for the limited
purpose of disclosing to the court of relevant documents in cases where resort to the court
is allowed herein. Provided, however, that the court in which the action or the appeal is
pending may issue a protective order to prevent or prohibit disclosure of documents or
information containing secret processes, developments, research and other information
where it is shown that the applicant shall be materially prejudiced by an authorized
disclosure thereof.
SEC. 24. Referral to Arbitration. - A court before which an action is brought in a matter
which is the subject matter of an arbitration agreement shall, if at least one party so
requests not later that the pre-trial conference, or upon the request of both parties
thereafter, refer the parties to arbitration unless it finds that the arbitration agreement is null
and void, inoperative or incapable of being performed.
SEC. 25. Interpretation of the Act. - In interpreting the Act, the court shall have due
regard to the policy of the law in favor of arbitration. Where action is commenced by or
against multiple parties, one or more of whom are parties who are bound by the arbitration
agreement although the civil action may continue as to those who are not bound by such
arbitration agreement.
SEC. 26. Meaning of "Appointing Authority.". - "Appointing Authority" as used in the
Model Law shall mean the person or institution named in the arbitration agreement as the
appointing authority; or the regular arbitration arbitration institution under whose rules the
arbitration is agreed to be conducted. Where the parties have agreed to submit their
dispute to institutional arbitration rules, and unless they have agreed to a different
procedure, they shall be deemed to have agreed to procedure under such arbitration rules
for the selection and appointment of arbitrators. In ad hoc arbitration, the default
appointment of an arbitrator shall be made by the National President of the Integrated Bar
of the Philippines (IBP) or his duly authorized representative.
SEC. 27. What Functions May be Performed by Appointing Authority. - The functions
referred to in Articles 11(3), 11(4), 13(3) and 14(1) of the Model Law shall be performed by
the Appointing Authority, unless the latter shall fail or refuse to act within thirty (30) days
from receipt of the request in which case the applicant may renew the application with the
Court.
SEC. 28. Grant of Interim Measure of Protection. -
(a) It is not incompatible with an arbitration agreement for a party to request,
before constitution of the tribunal, from a Court an interim measure of protection
and for the Court to grant such measure. After constitution of the arbitral tribunal
and during arbitral proceedings, a request for an interim measure of protection or
modification thereof, may be made with the arbitral tribunal or to the extent that
the arbitral tribunal has no power to act or is unable to act effectively, the request
may be made with the Court. The arbitral tribunal is deemed constituted when the
sole arbitrator or the third arbitrator who has been nominated, has accepted the
nomination and written communication of said nomination and acceptance has
been received by the party making request.
(b) The following rules on interim or provisional relief shall be observed:
(1) Any party may request that provision relief be granted against the
adverse party:
(2) Such relief may be granted:
(i) to prevent irreparable loss or injury:
(ii) to provide security for the performance of any obligation;
(iii) to produce or preserve any evidence; or
(iv) to compel any other appropriate act or omission.
(3) The order granting provisional relief may be conditioned upon the
provision of security or any act or omission specified in the order.
(4) Interim or provisional relief is requested by written application
transmitted by reasonable means to the Court or arbitral tribunal as the
case may be and the party against whom the relief is sought, describing
in appropriate detail the precise relief, the party against whom the relief
is requested, the grounds for the relief, and evidence supporting the
request.
(5) The order shall be binding upon the parties.
(6) Either party may apply with the Court for assistance in Implementing
or enforcing an interim measure ordered by an arbitral tribunal.
(7) A party who does not comply with the order shall be liable for all
damages resulting from noncompliance, including all expenses, and
reasonable attorney's fees, paid in obtaining the order's judicial
enforcement.
SEC. 29. Further Authority for Arbitrator to Grant Interim Measure of Protection. -
Unless otherwise agreed by the parties, the arbitral tribunal may, at the request of a party,
order any party to take such interim measures of protection as the arbitral tribunal may
consider necessary in respect of the subject matter of the dispute following the rules in
Section 28, paragraph 2. Such interim measures may include but shall not be limited to
preliminary injuction directed against a party, appointment of receivers or detention,
preservation, inspection of property that is the subject of the dispute in arbitration. Either
party may apply with the Court for assistance in implementing or enforcing an interim
measures ordered by an arbitral tribunal.
SEC. 30. Place of Arbitration. - The parties are free to agree on the place of arbitration.
Failing such agreement, the place of arbitration shall be in Metro Manila, unless the arbitral
tribunal, having regard to the circumstances of the case, including the convenience of the
parties shall decide on a different place of arbitration.
The arbitral tribunal may, unless otherwise agreed by the parties, meet at any place it
considers appropriate for consultation among its members, for hearing witnesses, experts,
or the parties, or for inspection of goods, other property or documents.
SEC. 31. Language of the Arbitration. - The parties are free to agree on the language or
languages to be used in the arbitral proceedings. Failing such agreement, the language to
be used shall be English in international arbitration, and English or Filipino for domestic
arbitration, unless the arbitral tribunal shall determine a different or another language or
languages to be used in the proceedings. This agreement or determination, unless
otherwise specified therein, shall apply to any written statement by a party, any hearing
and any award, decision or other communication by the arbitral tribunal.
The arbitral tribunal may order that any documentary evidence shall be accompanied by a
translation into the language or languages agreed upon by the parties or determined in
accordance with paragraph 1 of this section.
CHAPTER 5 - DOMESTIC ARBITRATION
SEC. 32. Law Governing Domestic Arbitration. - Domestic arbitration shall continue to
be governed by Republic Act No. 876, otherwise known as "The Arbitration Law" as
amended by this Chapter. The term "domestic arbitration" as used herein shall mean an
arbitration that is not international as defined in Article (3) of the Model Law.
SEC. 33. Applicability to Domestic Arbitration. - Article 8, 10, 11, 12, 13, 14, 18 and 19
and 29 to 32 of the Model Law and Section 22 to 31 of the preceding Chapter 4 shall apply
to domestic arbitration.
CHAPTER 6 - ARBITRATION OF CONSTRUCTION DISPUTES
SEC. 34. Arbitration of Construction Disputes: Governing Law. - The arbitration of
construction disputes shall be governed by Executive Order No. 1008, otherwise known as
the Constitution Industry Arbitration Law.
SEC. 35. Coverage of the Law. - Construction disputes which fall within the original and
exclusive jurisdiction of the Construction Industry Arbitration Commission (the
"Commission") shall include those between or among parties to, or who are otherwise
bound by, an arbitration agreement, directly or by reference whether such parties are
project owner, contractor, subcontractor, quantity surveyor, bondsman or issuer of an
insurance policy in a construction project.
The Commission shall continue to exercise original and exclusive jurisdiction over
construction disputes although the arbitration is "commercial" pursuant to Section 21 of this
Act.
SEC. 36. Authority to Act as Mediator or Arbitrator. - By written agreement of the
parties to a dispute, an arbitrator may act as mediator and a mediator may act as
arbitrator. The parties may also agree in writing that, following a successful mediation, the
mediator shall issue the settlement agreement in the form of an arbitral award.
SEC. 37. Appointment of Foreign Arbitrator. - The Construction Industry Arbitration
Commission (CIAC) shall promulgate rules to allow for the appointment of a foreign
arbitrator or coarbitrator or chairman of a tribunal a person who has not been previously
accredited by CIAC: Provided, That:
(a) the dispute is a construction dispute in which one party is an international
party
(b) the person to be appointed agreed to abide by the arbitration rules and
policies of CIAC;
(c) he/she is either coarbitrator upon the nomination of the international party; or
he/she is the common choice of the two CIAC-accredited arbitrators first
appointed one of whom was nominated by the international party; and
(d) the foreign arbitrator shall be of different nationality from the international
party.
SEC. 38. Applicability to Construction Arbitration. - The provisions of Sections 17 (d) of
Chapter 2, and Section 28 and 29 of this Act shall apply to arbitration of construction
disputes covered by this Chapter.
SEC. 39. Court to Dismiss Case Involving a Construction Dispute. - A regional trial
court which a construction dispute is filed shall, upon becoming aware, not later than the
pretrial conference, that the parties had entered into an arbitration to be conducted by the
CIAC, unless both parties, assisted by their respective counsel, shall submit to the regional
trial court a written agreement exclusive for the Court, rather than the CIAC, to resolve the
dispute.
CHAPTER 7 - JUDICIAL REVIEW OF ARBITRAL AWARDS
A. DOMESTIC AWARDS
SEC. 40. Confirmation of Award. - The confirmation of a domestic arbitral award shall be
governed by Section 23 of R.A. 876.
A domestic arbitral award when confirmed shall be enforced in the same manner as final
and executory decisions of the Regional Trial Court.
The confirmation of a domestic award shall be made by the regional trial court in
accordance with the Rules of Procedure to be promulgated by the Supreme Court.
A CIAC arbitral award need not be confirmed by the regional trial court to be executory as
provided under E.O. No. 1008.
SEC. 41. Vacation Award. - A party to a domestic arbitration may question the arbitral
award with the appropriate regional trial court in accordance with the rules of procedure to
be promulgated by the Supreme Court only on those grounds enumerated in Section 25 of
Republic Act No. 876. Any other ground raised against a domestic arbitral award shall be
disregarded by the regional trial court.
B. FOREIGN ARBITRAL AWARDS
SEC. 42. Application of the New York Convention. - The New York Convention shall
govern the recognition and enforcement of arbitral awards covered by the said Convention.
The recognition and enforcement of such arbitral awards shall be filled with regional trial
court in accordance with the rules of procedure to be promulgated by the Supreme Court.
Said procedural rules shall provide that the party relying on the award or applying for its
enforcement shall file with the court the original or authenticated copy of the award and the
arbitration agreement. If the award or agreement is not made in any of the official
languages, the party shall supply a duly certified translation thereof into any of such
languages.
The applicant shall establish that the country in which foreign arbitration award was made
is a party to the New York Convention.
If the application for rejection or suspension of enforcement of an award has been made,
the regional trial court may, if it considers it proper, vacate its decision and may also, on
the application of the party claiming recognition or enforcement of the award, order the
party to provide appropriate security.
SEC. 43. Recognition and Enforcement of Foreign Arbitral Awards Not Covered by
the New York Convention. - The recognition and enforcement of foreign arbitral awards
not covered by the New York Convention shall be done in accordance with procedural
rules to be promulgated by the Supreme Court. The Court may, grounds of comity and
reciprocity, recognize and enforce a nonconvention award as a convention award.
SEC. 44. Foreign Arbitral Award Not Foreign Judgment. - A foreign arbitral award when
confirmed by a court of a foreign country, shall be recognized and enforced as a foreign
arbitral award and not a judgment of a foreign court.
A foreign arbitral award, when confirmed by the regional trial court, shall be enforced as a
foreign arbitral award and not as a judgment of a foreign court.
A foreign arbitral award, when confirmed by the regional trial court, shall be enforced in the
same manner as final and executory decisions of courts of law of the Philippines.
SEC. 45. Rejection of a Foreign Arbitral Award. - A party to a foreign arbitration
proceeding may oppose an application for recognition and enforcement of the arbitral
award in accordance with the procedural rules to be promulgated by the Supreme Court
only on those grounds enumerated under Article V of the New York Convention. Any other
ground raised shall be disregarded by the regional trial court.
SEC. 46. Appeal from Court Decisions on Arbitral Awards. - A decision of the regional
trial court confirming, vacating, setting aside, modifying or correcting an arbitral award may
be appealed to the Court of Appeals in accordance with the rules of procedure to be
promulgated by the Supreme Court.
The losing party who appeals from the judgment of the court confirming an arbitral award
shall required by the appealant court to post counterbond executed in favor of the
prevailing party equal to the amount of the award in accordance with the rules to be
promulgated by the Supreme Court.
SEC. 47. Venue and Jurisdiction. - Proceedings for recognition and enforcement of an
arbitration agreement or for vacation, setting aside, correction or modification of an arbitral
award, and any application with a court for arbitration assistance and supervision shall be
deemed as special proceedings and shall be filled with the regional trial court (i) where
arbitration proceedings are conducted; (ii) where the asset to be attached or levied upon,
or the act to be enjoined is located; (iii) where any of the parties to the dispute resides or
has his place of business; or (iv) in the National Judicial Capital Region, at the option of the
applicant.
SEC. 48. Notice of Proceeding to Parties. - In a special proceeding for recognition and
enforcement of an arbitral award, the Court 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
party's last known address. The notice shall be sent at least fifteen (15) days before the
date set for the initial hearing of the application.
CHAPTER 8 - MISCELLANEOUS PROVISIONS
SEC. 49. Office for Alternative Dispute Resolution. - There is hereby established the
Office for Alternative Dispute Resolution as an attached agency to the Department of
Justice (DOJ) which shall have a Secretariat to be headed by an executive director. The
executive director shall be appointed by the President of the Philippines.
The objective of the office are:
(a) to promote, develop and expand the use of ADR in the private and public
sectors; and
To assist the government to monitor, study and evaluate the use by the public and the
private sector of ADR, and recommend to Congress needful statutory changes to develop.
Strengthen and improve ADR practices in accordance with world standards.
SEC. 50. Powers and Functions of the Office for Alternative Dispute Resolution. - SEC. 53. Applicability of the Katarungan Pambarangay. - This Act shall not be
The Office for Alternative Dispute Resolution shall have the following powers and interpreted to repeal, amend or modify the jurisdiction of the Katarungan Pambarangay
functions: under Republic Act No. 7160, otherwise known as the Local Government Code of 1991.

(a) To formulate standards for the training of the ADR practitioners and service
providers;
(b) To certify that such ADR practitioners and ADR service providers have
undergone the professional training provided by the office;
(c) To coordinate the development, implementation, monitoring, and evaluation of
government ADR programs;
(d) To charge fees for their services; and
SEC. 54. Repealing Clause. - All laws, decrees, executive orders, rules and regulations
which are inconsistent with the provisions of this Act are hereby repealed, amended or
modified accordingly.
SEC. 55. Separability Clause. - If 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 remain in full force and effect.
SEC. 56. Effectivity. - This act shall take effect fifteen days (15) after its publication in at
least two (2) national newspapers of general circulation.

(e) To perform such acts as may be necessary to carry into effect the provisions
of this Act.

SEC. 51. Appropriations. - The amount necessary to carry out the provisions of this Act
shall be included in the General Appropriations Act of the year following its enactment into
law and thereafter.

SEC. 52. Implementing Rules and Regulations (IRR). - Within one (1) month after the
approval of this Act, the secretary of justice shall convene a committee that shall formulate
the appropriate rules and regulations necessary for the implementation of this Act. The
committee, composed of representatives from:

(a) the Department of Justice;

(b) the Department of Trade and Industry;

(c) the Department of the Interior and Local Government;

(d) the president of the Integrated Bar of the Philippines;

(e) A representative from the arbitration profession; and

(f) A representative from the mediation profession; and

(g) A representative from the ADR organizations

shall within three (3) months after convening, submit the IRR to the Joint Congressional
Oversight Committee for review and approval. The Oversight Committee shall be
composed of the chairman of the Senate Committee on Justice and Human Rights,
chairman of the House Committee on Justice, and one (1) member each from the majority
and minority of both Houses.

The Joint Oversight Committee shall become functus officio upon approval of the IRR.

DEPARTMENT CIRCULAR NO. 98
IMPLEMENTING RULES AND REGULATIONS OF THE ALTERNATIVE DISPUTE
RESOLUTION ACT OF 2004.
Whereas, pursuant to Section 52 of Republic Act No. 9285, otherwise known as the
"Alternative Dispute Resolution Act of 2004" (ADR Act"), the Secretary of Justice is
directed to convene a Committee for the formulation of the appropriate rules and
regulations necessary for the implementation of the ADR Act;
Whereas, the committee was composed of representatives from the Department of
Justice, the Department of Trade and Industry, the Department of the Interior and Local
Government, the President of the Integrated Bar of the Philippines, a representative from
the ADR organizations.
Wherefore, the following rules and regulations are hereby adopted as the Implementing
Rules and Regulations of Republic Act no.9285.
IMPLEMENTING RULES AND REGULATIONS OF THE ALTERNATIVE DISPUTE
RESOLUTION ACT OF 2004 (R.A No. 9285)
Pursuant to Section 52 of republic Act No. 9285, otherwise known as the alternative
Dispute Resolution Act of 2004" ("ADR Act"), the following Rules and Regulations (these
"Rules") are hereby promulgated to implement the provisions of the ADR Act:
Chapter 1
GENERAL PROVISIONS
RULE 1 – Policy and Application
Article 1.1 Purpose. These Rules are promulgated to prescribe the procedures and
guidelines for the implementation of the ADR Act.
Article 1.2 Declaration of policy. It is the policy of the State:
(a) To promote party autonomy in the resolution of disputes or the freedom of the
parties to make their own arrangements to resolve their disputes;
(b) To encourage and actively promote the use of Alternative Dispute Resolution
("ADR") as an important means to achieve speedy and impartial justice and
declog court dockets;
(c) To provide means for the use of ADR as an efficient tool and an alternative
procedure for the resolution of appropriate cases; and
(d) To enlist active private sector participation in the settlement of disputes
through ADR
Article 1.3 Exception to the Application of the ADR Act. The provisions of the ADR Act
shall not apply to the resolution or settlement of the following:
(a) labor disputes covered by Presidential Decree No. 442, otherwise known as
the "Labor Code of the Philippines, as a amended", and its Implementing Rules
and Regulations;
(b) the civil status of persons;
(c) the validity of marriage;
(d) any ground for legal separation;
(e) the jurisdiction of courts;
(f) future legitimate;
(g) criminal liability;
(h) those disputes which by law cannot be compromised; and
(i) disputes referred to court-annexed mediation.
Article 1.4. Electronic Signature and E-Commerce Act. The provisions of the Electronic
Signature and E-Commerce Act, and its implementing Rules and Regulations shall apply
to proceedings contemplated in the ADR Act.
Article 1.5. Liability of ADR Providers/Practitioners. The ADR provides /practitioners shall
have the same civil liability for acts done in the performance of their official duties as that of
public officers as provided in Section 38 (1), Chapter 9, Book 1 of the Administrative Code
of 1987, upon a clear showing of bad faith, malice or gross negligence.
RULE 2- Definition of Terms
Article 1.6 Definition of Terms. For purposes of these Rules, the terms shall be defined as
follows:
A. Terms Applicable to All Chapters
1. ADR Provider means the Institutions or persons accredited as mediators,
conciliators, arbitrators, neutral evaluators or any person exercising similar
functions in any Alternative dispute resolution system. This is without prejudice to
the rights of the parties to choose non-accredited individuals to act as mediator,
conciliator, arbitrator or neutral evaluator of their dispute.
2. Alternative Dispute Resolution System means any process or procedures
used to resolve a dispute or controversy, other than by adjudication of a presiding
judge of a court or an officer of a government agency, as defined in the ADR Act,
in which neutral third person participates to assist in the resolution of issues,
Including arbitration, mediation, conciliation, early neutral evaluation, mini-trial or
any combination thereof.
3. Arbitration means a voluntary dispute resolution process in which one or
more arbitrators, appointed in accordance with the agreement of the parties or
these Rules, resolve a dispute by rendering an award.
4. Arbitration Agreement means agreement by the parties to submit to
arbitration all or certain disputes which have arisen or which may arise between
them in respect of a defined legal relationship, whether contractual or not. An
arbitration agreement may be in the form of an arbitration clause in a contract or
in the form of a separate agreement.
5. Authenticate means to sign, execute, adopt a symbol or encrypt a record or
establish the authenticity of a record or term.
6. Award means any partial or final decision by an arbitrator in resolving the
issue or controversy.
7. Confidential Information means any information, relative to the subject of
mediation or arbitration, expressly intended by the source not to disclosed, or
obtained under circumstances that would create reasonable expectation on
behalf of the source that the information shall not be disclosed. It shall include:
(a) communication, oral or written, made in a dispute resolution
proceeding, including any memoranda, notes or work product of the
neutral party or non-party participant;
(b) an oral or written statement made or which occurs during mediation
or for purposes of considering, conducting, participating, initiating,
continuing or reconvening mediation or retaining a mediator; and
(c) pleadings, motions, manifestations, witness statements, reports filed
or submitted in arbitration or for expert evaluation.
8. Counsel means a lawyer duly admitted to the practice of law in the Philippines
and in good standing who represents a party in any ADR process.
9. Court means Regional Trial Court Except insofar as otherwise defined under
Model Law.
10. Government Agency means any governmental entity, office or officer, other
than a court that is vested by law with quasi-judicial power or the power to
resolve or adjudicate disputes involving the government, its agencies and
instrumentalities or private persons.
11. Model Law means the Model on International Commercial Arbitration
adopted by the United Nations Commission on International Trade Law on 21
June 1985.
12. Proceedings means judicial, administrative or other adjudicative process,
including related pre-hearing or post hearing motions, conferences and
discovery.
13. Record means information written on a tangible medium or stored in an
electronic or other similar medium, retrievable in a perceivable form.
14. Roster means a list of persons qualified to provide ADR services as neutrals
or to serve as arbitrators.
15. Special ADR Rules means the Special Rules of Court on Alternative Dispute
Resolution issued by the Supreme Court on September 1, 2009.
B. Terms and Applicable to the Chapter Mediation
1. Ad hoc Mediation means any mediation other than institutional or court-
annexed.
2. Institutional Mediation means any mediation process conducted under the
rules of a mediation institution.
3. Court-Annexed Mediation means mediation process conducted under the
auspices of the court and in accordance with Supreme Court approved
guidelines, after such court has acquired jurisdiction of the dispute.
4. Court-Referred Mediation means mediation ordered by a court to be
conducted in accordance with the agreement of the parties when an action is
prematurely commenced in violation of such agreement.
5. Certified Mediator means a mediator certified by the Office for ADR as having
successfully completed its regular professional training program.
6. Mediation means a voluntary process in which a mediator, selected by the
disputing party voluntary agreement regarding a dispute.
7. Mediation Party means a person who participates in a mediation and whose
consent is necessary to resolve the dispute.
8. Mediator means a person who conducts mediation.
9. Non-Party Participant means a person, other than a party or mediator, who
participates in a mediation proceeding as a witness, resource person or expert.
C. Terms Applicable to the Chapter on International Commercial Arbitration
1. Appointing Authority as used in the Model Law shall mean the person or
institution named in the arbitration agreement as the appointing authority; or the
regular arbitration institution under whose rules the arbitration is agreed to be
conducted. Where the parties have agreed to submit their dispute to institutional
arbitration rules and unless they have agreed to a different procedure, they shall
be deemed to have agreed to the procedure under such arbitration rules for the
selection and appointment of arbitrators. In ad hoc arbitration, the default
appointment of an arbitrator shall be made by the National President of the
Integrated Bar of the Philippines (IBP) or his /her duly authorized representative.
2. Arbitral Tribunal (under the Model Law) means a sole arbitrator or a panel
of arbitrators.
3. Arbitration means any arbitration whether or not administered by a permanent
arbitration institution.
4. Commercial Arbitration means an arbitration that covers matters arising from
all relationships of a commercial nature, whether contractual or not. Relationships
of a commercial nature include, but are not limited to, the following commercial
transactions: any trade transaction for the supply or exchange of goods or
services; distribution agreements; construction of works; commercial
representation or agency; factoring; leasing; consulting; engineering; licensing;
investment; financing; banking; insurance; joint venture and other forms of
industrial or business cooperation; carriage of goods or passengers by air, sea
rail or road.
5. Convention Award means a foreign arbitral award in a Convention State.
6. Convention State means a state that is a member of the New York
Convention.
7. Court (under the Model Law) means a body or organ of the judicial system of
the Philippines (i.e., the Regional Trial Court, Court of Appeals and Supreme
Court).
8. International Arbitration means an arbitration where:
(a) the parties to an arbitration agreement have, at the time of the
conclusion of that agreement, their places of business in different
states; or
(b) one of the following places is situated outside the Philippines in
which the parties have their places of business:
(i) the place of arbitration if determined in, or pursuant to , the
arbitration agreement;
(ii) any place where a substantial part of the obligations of the
commercial relationship is to be performed or the place with
the subject matter of the dispute is most closely connected; or
(c) the parties have expressly agreed that the subject matter of the
arbitration agreement relates to more than one country.
For this purpose:
(a) if a party has more than one place of business, the place of
business is that which has the closest relationship to the arbitration
agreement;
(b) if a party does not have a place of business, reference is to be made
to his/her habitual residence.
9. New York Convention means the United Nations Convention of the
Recognition and Enforcement of Foreign Arbitral Awards approved in 1958 and
ratified by the Philippine Senate under Senate Resolution No.71.
10. Non-Convention Award means a foreign arbitral ward made in a state,
which is not a Convention State.
11. Non-Convention State means a state that is not a member of the New York
Convention.
D. Terms Applicable to the Chapter on Domestic Arbitration
1. Ad hoc Arbitration means arbitration administered by an arbitrator and/or the
parties themselves. An arbitration administered by an institution shall be
regarded as ad hoc arbitration if such institution is not a permanent or regular
arbitration institution in the Philippines.
2. Appointing Authority in Ad Hoc Arbitration means, in the absence of an
agreement, the National President of the IBP or his/her duly authorized
representative.
3. Appointing Authority Guidelines means the set of rules approved or
adopted by an appointing authority for the making of a Request for Appointment,
Challenge, termination of the Mandate of Arbitrator/s and for taking action
thereon.
4. Arbitration means a voluntary dispute resolution process in which one or
more arbitrators, Appointed in accordance with the agreement of the parties or
these Rules, resolve a dispute by rendering an award.
5. Arbitral Tribunal means a sole arbitrator or a panel, board or committee of
arbitrators.
6. Claimant means a person/s with a claim against another and who
commence/s arbitration against the latter.
 7. Court means, unless otherwise specified in these Rules, a Regional Trial
Court.
8. Day means calendar day.
9. Domestic Arbitration means arbitration that is not international as defined in
Article 1(3) of the Mode Law.
10. Institutional Arbitration means arbitration administered by an entity, which
is registered as a domestic corporation with the Securities and Exchange
Commission (SEC) and engaged in. among others, arbitration of disputes in the
Philippines on a regular and permanent basis.
11. Request for Appointment means the letter-request to the appointing
authority of either or both parties for the appointment of arbitrator/s or of the two
arbitrators first appointed by the parties for the appointment of the third member
of an arbitral tribunal.
12. Representative is a person duly authorized in writing by a party to a dispute,
who could be a counsel, a person in his/her employ or any other person of
his/her choice, duly authorized to represent said party in the arbitration
proceedings.
13. Respondent means the person/s against whom the claimant commence/s
arbitration.
14. Written communication means the pleading, motion, manifestation, notice,
order, award and any other document or paper submitted or filed with the arbitral
tribunal or delivered to a party.
E. Terms Applicable to the Chapter on Other ADR Forms
1. Early Neutral Evaluation means an ADR process wherein parties and their
lawyers are brought together early in the pre-trial phase to present summaries of
their cases and to receive a non-binding assessment by an experienced neutral
person, with expertise in the subject matter or substance of the dispute.
2. Mediation-Arbitration or Med-Arb is a two-step dispute resolution process
involving mediation and then followed by arbitration.
3. Mini-trial means a structured dispute resolution method in which the merits of
a case are argued before a panel comprising of senior decision-makers, with or
without the presence of a neutral third person, before which the parties seek a
negotiated settlement.
CHAPTER 2
THE OFFICE FOR ALTERNATIVE DISPUTE RESOLUTION
RULE 1- Office for Alternative Dispute Resolution (OADR)
Article 2.1. Establishment of the Office for Alternative Dispute Resolution. There is hereby
established the OADR as an agency attached to the Department of Justice. It shall have a
Secretariat and shall be headed by an Executive Director, who shall be appointed by the
President of the Philippines, taking into consideration the recommendation of the Secretary
of Justice.
Article 2.2. Powers of the OADR. The OADR shall have the following powers;
(a) To act as appointing authority of mediators and arbitrators when the parties
agree in writing that it shall be empowered to do so;
(b) To conduct seminars, symposia, conferences and other public fora and
publish proceedings of said activities and relevant materials/information that
would promote, develop and expand the use of ADR;
(c) To establish an ADR library or resource center where ADR laws, rules and
regulation, jurisprudence, books, articles and other information about ADR in the
Philippines and elsewhere may be stored and accessed;
(d) To establish training programs for ADR providers/practitioners, both in the
public and private sectors; and to undertake periodic and continuing training
programs for arbitration and mediation and charge fees on participants. It may do
so in conjunction with or in cooperation with the IBP, private ADR organizations,
and local and foreign government offices and agencies and international
organizations;
(e) To certify those who have successfully completed the regular professional
training programs provided by the OADR;
(f) To charge for services rendered such as, among others, for training and
certifications of ADR providers;
(g) To accept donations, grants and other assistance from local and foreign
sources; and
(h) To exercise such other powers as may be necessary and proper to carry into
effect the provisions of the ADR Act.
Article 2.3. Functions of the OADR. The OADR shall have the following functions;
(a) To promote, develop and expand the use of ADR in the private and public
sectors through information, education and communication;
(b) To monitor, study and evaluate the use of ADR by the private and public
sectors for purposes of, among others, policy formulation;
(c) To recommend to Congress needful statutory changes to develop, strengthen
and improve ADR practices in accordance with international professional
standards;
 (d) To make studies on and provide linkages for the development,
implementation, monitoring and evaluation of government and private ADR
programs and secure information about their respective administrative
rules/procedures, problems encountered and how they were resolved;
(e) To compile and publish a list or roster of ADR providers/practitioners, who
have undergone training by the OADR, or by such training providers/institutions
recognized or certified by the OADR as performing functions in any ADR system.
The list or roster shall include the addresses, contact numbers, e-mail addresses,
ADR service/s rendered (e.g. arbitration, mediation) and experience in ADR of
the ADR providers/practitioners;
(f) To compile a list or roster of foreign or international ADR
providers/practitioners. The list or roster shall include the addresses, contact
numbers, e-mail addresses, ADR service/s rendered (e.g. arbitration, mediation)
and experience in ADR of the ADR providers/practitioners; and
(g) To perform such other functions as may be assigned to it.
Article 2.4. Divisions of the OADR. The OADR shall have the following staff and service
divisions, among others:
(a) Secretariat – shall provide necessary support and discharge such other
functions and duties as may be directed by the Executive Director.
(b) Public information and Promotion Division – shall be charged with the
dissemination of information, the promotion of the importance and public
acceptance of mediation, conciliation, arbitration or any combination thereof and
other ADR forms as a means of achieving speedy and efficient means of
resolving all disputes and to help in the promotion, development and expansion
of the use of ADR.
(c) Training Division – shall be charged with the formulation of effective
standards for the training of ADR practitioners; conduct of training in accordance
with such standards; issuance of certifications of training to ADR practitioners
and ADR service providers who have undergone the professional training
provided by the OADR; and the coordination of the development, implementation,
monitoring and evaluation of government and private sector ADR programs.
(d) Records and Library Division – shall be charged with the establishment and
maintenance of a central repository of ADR laws, rules and regulations,
jurisprudence, books, articles, and other information about ADR in the Philippines
and elsewhere.
RULE 2 – The Advisory Council
Article 2.5. Composition of the Advisory Council. There is also created an Advisory
Council composed of a representative from each of the following:
(a) Mediation profession;
(b) Arbitration profession;
(c) ADR organizations;
(d) IBP; and
(e) Academe.
The members of the Council, who shall be appointed by the Secretary of Justice upon the
recommendation of the OADR Executive Director, shall choose a Chairman from among
themselves.
Article 2.6. Role of the Advisory Council. The Advisory Council shall advise the Executive
Director on policy, operational and other relevant matters. The Council shall meet
regularly, at least once every two (2) months, or upon call by the Executive Director.
CHAPTER 3
MEDIATION
RULE 1 – General Provisions
Article 3.1. Scope of Application. These Rules apply to voluntary mediation, whether ad
hoc or institutional, other than court-annexed mediation and only in default of an
agreement of the parties on the applicable rules.
These Rules shall also apply to all cases pending before an administrative or quasi-judicial
agency that are subsequently agreed upon by the parties to be referred to mediation.
Article 3.2. Statement of Policy. In applying and construing the provisions of these Rules,
consideration must be given to the need to promote candor of parties and mediators
through confidentiality of the mediation process, the policy of fostering prompt, economical
and amicable resolution of disputes in accordance with principles of integrity of
determination by the parties and the policy that the decision-making authority in the
mediation process rests with the parties.
A party may petition a court before which an action is prematurely brought in a matter
which is the subject of a mediation agreement, if at least one party so requests, not later
than the pre-trial conference or upon the request of both parties thereafter, to refer the
parties to mediation in accordance with the agreement of the parties.
RULE 2- Selection of a Mediator
Article 3.3. Freedom to Select mediator. The parties have the freedom to select mediator.
The parties may request the OADR to provide them with a list or roster or the resumes of
its certified mediators. The OADR may be requested to inform the mediator of his/her
selection.
Article 3.4. Replacement of Mediator. If the mediator selected is unable to act as such for
any reason, the parties may, upon being informed of such fact, select another mediator.
Article 3.5. Refusal or Withdrawal of Mediator. A mediator may refuse from acting as such,
withdraw or may be compelled to withdraw from mediator proceedings under the following
circumstances:
(a) If any of the parties so requests the mediator to withdraw;
(b) The mediator does not have the qualifications, training and experience to
enable him/her to meet the reasonable expectations of the parties;
(c) Where the mediator's impartially is in question;
(d) If continuation of the process would violate any ethical standards;
(e) If the safety of any of the parties would be jeopardized;
(f) If the mediator is unable to provide effective services;
(g) In case of conflict of interest; and
(h) In any of the following instances, if the mediator is satisfied that:
(i) one or more of the parties is/are not acting in good faith;
(ii) the parties' agreement would be illegal or involve the commission of
a crime;
(iii) continuing the dispute resolution would give rise to an appearance
of impropriety;
(iv) continuing with the process would cause significant harm to a non-
participating person or to the public; or
(v) continuing discussion would not be in the best interest of the parties,
their minor children or the dispute resolution process.
RULE 3 – Ethical Conduct of a Mediator
Article 3.6 Competence. It is not required that a mediator shall have special qualifications
by background or profession unless the special qualifications of a mediator shall :
(a) maintain the continually upgrade his/her professional competence in
mediation skills;
(b) ensure that his/her qualifications, training and experience are known to and
accepted by the parties; and
(c) serve only when his/her qualifications, training and experience enable him/her
to meet the reasonable expectations of the parties and shall not hold
himself/herself out or give the impression that he/she does not have.
Upon the request of a mediation party, an individual who is requested to serve as mediator
shall disclose his/her qualifications to mediate a dispute.
Article 3.7 Impartially. A mediator shall maintain impartiality.
(a) Before accepting a mediation, an individual who is requested to serve as a
mediator shall:
(i) make an inquiry that is reasonable under the circumstances to
determine whether there are known facts that a reasonable individual
would consider likely to affect the impartiality of the mediator, including
a financial or personal interest in the outcome of the mediation and any
existing or past relationship with a party of foreseeable participant in the
mediation; and
(ii) disclose to the mediation parties any such fact known or learned as
soon as practical before accepting a mediation.
(b) If a mediator learns any fact described in paragraph (a) of this Article after
accepting a mediation, the mediator shall disclose it as soon as practicable to the
mediation parties.
Article 3.8. Confidentiality. A mediator shall keep in utmost confidence all confidential
information obtained in the course of the mediation process.
A mediator shall discuss issues of confidentiality and the extent of confidentiality provided
in any private sessions or caucuses that the mediator holds with a party.
Article 3.9. Consent and Self-Determination. (a) A mediator shall make reasonable efforts
to ensure that each party understands the nature and character of the mediation
proceeding including private caucuses, the issues, the available options, the alternatives to
non-settlement, and that each party is free and able to make whatever choices he/she
desires regarding participation in mediation generally and regarding specific settlement
options.
If a mediator believes that a party, who is not represented by counsel, is unable
to understand, or fully participate, the mediation proceedings for any reason, a
mediator may either:
(i) limit the scope of the mediation proceedings in a manner consistent
with the party's ability to participate, and/or recommend that the party
obtain appropriate assistance in order to continue with the process; or
(ii) terminate the mediation proceedings.
 (b) A mediator shall recognize and put in mind that the primary responsibility of
resolving a dispute and the shaping of a voluntary and uncoerced settlement
rests with the parties.
Article 3.10. Separation of Mediation from Counseling and Legal Advice. (a) Except in
evaluative mediation or when the parties so request, a mediator shall:
(i) refrain from giving legal or technical advice and otherwise engaging
in counseling or advocacy; and
(ii) abstain from expressing his/her personal opinion on the rights and
duties of the parties and the merits of any proposal made.
(b) Where appropriate and where either or both parties are not represented by
counsel, a mediator shall;
(i) recommend that the parties seek outside professional advice to help
them make informed decision and to understand the implication of any
proposal; and
(ii) suggest that the parties seek independent legal and/or technical
advice before a settlement agreement is signed.
(c) without the consent of al parties, and for a reasonable time under the
particular circumstance, a mediator who also practices another profession shall
not establish a professional relationship in that other profession with one of the
parties, or any person or entity, in a substantially and factually related matter.
Article 3.11. Charging of Fees. (a) A mediator shall fully disclose and explain to the parties
the basis of cost, fees and charges.
(b) The mediator who withdraws from the mediation shall return to the parties any
unearned fee and unused deposit.
(c) A mediator shall not enter into a fee agreement, which is contingent upon the
results of the mediation or the amount of the settlement.
Article 3.12 Promotion of Respect and Control of Abuse of Process. The mediatorcle 3.12
Promotion of Respect and Control of Abuse of Process. of the settle mentcost ablish a
professional relationship I shall encourage mutual respect between the parties, and shall
take reasonable steps, subject to the principle of self-determination, to limit abuses of the
mediation process.
Article 3.13. Solicitation or Acceptance of any Gift. No mediator or any member of a
mediator’s immediate family or his/her agent shall request, solicit, receive or accept any
gift or any type of compensation other than the agreed fee and expenses in connection
with any matter coming before the mediator.
RULE 4 – Role of Parties and their Counsels
Article 3.14. Designation of Counsel or Any Person to Assist Mediation. Except as
otherwise provided by the ADR Act or by these Rules, a party may designate a lawyer or
any other person to provide assistance in the mediation. A waiver of this right shall be
made in writing by the party waiving it. A waiver of participation or legal representation may
be rescinded at any time.
Article 3.15. Role of Counsel. (a) The lawyer shall view his/her role in the mediation as a
collaborator with the other lawyer in working together toward the common goal of helping
their clients resolve their differences to their mutual advantage.
(b) The lawyer shall encourage and assist his/her client to actively participate in
positive discussions and cooperate in crafting an agreement to resolve their
dispute.
(c) The lawyer must assist his/her client to comprehend and appreciate the
mediation process and its benefits, as well as the client’s greater personal
responsibility for the success of mediation in resolving the dispute.
(d) In preparing for participation in mediation, the lawyer shall confer and discuss
with his/her client the following:
(i) The mediation process as essentially a negotiation between the
parties assisted by their respective lawyers, and facilitated by a
mediator, stressing it its difference from litigation, its advantages and
benefits, the clients heightened role in mediation and responsibility for
its success and explaining the role of the lawyer in mediation
proceedings,
(ii) The substance of the upcoming mediation such as;
(aa) The substantive issues involved in the dispute and their
prioritization in terms of importance to his/her client’s real
interests and needs.
(bb) The study of other party’s position in relation to the
issues with a view to understanding the underlying interests,
fears, concerns and needs;
(cc) The information or facts to be gathered or sought from
the other side or to be exchanged that are necessary for
informed decision-making;
(dd) The possible options for settlement but stressing the
need to be open-minded about other possibilities; and
(ee) The best, worst and most likely alternative to a non-
negotiated settlement.
Article 3.16. Other Matters which the Counsel shall do to Assist Mediation. The lawyer;
 (a) shall give support to the mediator so that his/her client will fully understand
the rules and processes of mediation;
(b) shall impress upon his/her client the importance of speaking for
himself/herself and taking responsibility for making decisions during the
negotiations within the mediation process.;
(c) may ask for a recess in order to give advice or suggestions to his/her client in
private, if he/she perceives that his/her client is unable to bargain effectively;
(d) shall assist his/her client and the mediator put in writing the terms of the
settlement agreement that the parties have entered into. That lawyers shall see
to it that the terms of the settlement agreement are not contrary to law, morals,
good customs, public order or public policy.
RULE 5 – Conduct of Mediation
Article 3.17. Articles to be Considered in the Conduct of Mediation. (a) The mediator shall
not make untruthful or exaggerated claims about the dispute resolution process, its costs
and benefits, its outcome or the mediator’s qualifications and abilities during the entire
mediation process.
(b) The mediator shall held the parties reach a satisfactory resolution to their
dispute but has no authority to impose a settlement on the parties.
(c) The parties shall personally appear for mediation and may be assisted by a
lawyer. A party maybe represented by an agent who must have full authority to
negotiate and settle the dispute.
(d) The mediation process shall, in general, consists of the following stages:
(i) opening statement of the mediator
(ii) individual narration by the parties;
(iii) exchange by the parties;
(iv) summary of issues;
(v) generation and evaluation of options; and
(vi) closure
(e) The mediation proceeding shall be held in private. Person, other than the
parties, their representatives and mediator, may attend only with the consent of
all the parties,
(f) the mediation shall be closed:
(i) by the execution of a settlement agreement by the parties;
(ii) by the withdrawal of any party from mediation; and
(iii) by the written declaration of the mediator that any further effort at
mediation would not be helpful
RULE 6 – Place of Mediation
Article 3.18. Agreement of Parties on the Place of Mediation. The parties are free to agree
on the place of mediation. Failing such agreement, the place of mediation shall be any
place convenient and appropriate to all parties.
RULE 7 – Effect of Agreement to Submit Dispute to Mediation Under Institutional
Rules
Article 3.19 Agreement to Submit a Dispute to Mediation by an Institution. An agreement
to submit a dispute to mediation by an institution shall include an agreement to be bound
by the internal mediation and administrative policies of such institution. Further, an
agreement to submit a dispute to mediation under institutional mediation rules shall be
deemed to include an agreement to have such rules govern the mediation of the dispute
and for the mediator, the parties, their respective counsels and non-party participants to
abide by such rules.
RULE 8 – Enforcement of Mediated Settlement Agreement
Article 3.20. Operative Principles to Guide Mediation. The mediation shall be guided by
the following operative principles:
(a) A settlement agreement following successful mediation shall be prepared by
the parties with the assistance of their respective counsels. If any, and by the
mediator. The parties and their respective counsels shall endeavor to make the
terms and condition of the settlement agreement complete and to make adequate
provision for the contingency of breach to avoid conflicting interpretations of the
agreement.
(b) The parties and their respective counsels, if any, shall sign the settlement
agreement. The mediator shall certify that he/she explained the contents of the
settlement agreement to the parties in a language known to them.
(c) If the parties agree, the settlement agreement may be jointly deposited by the
parties or deposited by one party with prior notice to the other party/ties with the
Clerk of Court of the Regional Trial Court (a) where the principal place of
business in the Philippines of any of the parties is located; (b) if any of the parties
is an individual, where any of those individuals resides; or (c) in the National
Capital Judicial Region. Where there is a need to enforce the settlement
agreement, a petition may be filed by any of the parties with the same court in
which case, the court shall proceed summarily to hear the petition, in accordance
with the Special ADR Rules.
 (d) The parties may agree in the settlement agreement that the mediator shall
become a sole arbitrator for the dispute and shall treat the settlement agreement
as an arbitral award which shall be subject to enforcement under Republic Act
No. 876, otherwise know as "The Arbitration Law", notwithstanding the provisions
of Executive Order No. 1008, s. 1985, other wise known as the "Construction
Industry Arbitration Law" for mediated disputes outside the Construction Industry
Arbitration Commission.
RULE 9 – Confidentiality of Information
Article 3.21. Confidentiality of Information. Information obtained through mediation
proceedings shall be subject to the following principles and guidelines:
(a) Information obtained through mediation shall be privileged and confidential
(b) A party, mediator, or non-party participant may refuse to disclose and may
prevent any other person from disclosing a confidential information.
(c) Confidential information shall not be subject to discovery and shall be
inadmissible in any adversarial proceeding, whether judicial or quasi-judicial.
However, evidence or information that is otherwise admissible or subject to
discovery does not become inadmissible or protected from discovery solely by
reason of its use in a mediation.
(d) In such an adversarial proceeding, the following persons involved or
previously involved in a mediation may not be compelled to disclosed confidential
information obtained during the mediation:
(i) the parties to the dispute;
(ii) the mediator or mediators;
(iii) the counsel for the parties;
(iv) the non-party participants
(v) any person hired or engaged in connection with the mediation as
secretary, stenographer, clerk or assistant; and
(vi) any other person who obtains or possesses confidential information
by reason of his/her profession.
(e) The protections of the ADR Act shall continue to apply even if a mediator is
found to have failed to act impartially.
(f) A mediator may not be called to testify to provide confidential information
gathered in mediation. A mediator who is wrongfully subpoenaed shall be
reimbursed the full cost of his/her attorney’s fees and related expenses.
Article 3.22. Waiver of Confidentiality. (a) A privilege arising from the confidentiality of
information may be waived in a record or orally during a proceeding by the mediator and
the mediation parties.
(b) With the consent of the mediation parties, a privilege arising from the
confidentiality of information may likewise be waived by a non-party participant if
the information is provided by such non-party participant.
(c) A person who discloses confidential information shall be precluded from
asserting the privilege under Article 3.21 (Confidentiality of Information) to bar
disclosure of the rest of the information necessary to a complete understanding
of the previously disclosed information. If a person suffers loss or damage as a
result of the disclosure of the confidential information, he/she shall be entitled to
damages in a judicial proceeding against the person who made the disclosure.
(d) A person who discloses or makes a representation about a mediation is
precluded from asserting the privilege mentioned in Article 3.21 to the extent that
the communication prejudices another person in the proceeding and it is
necessary for the person prejudiced to respond to the representation or
disclosure.
Article 3.23. Exceptions to the Privilege of Confidentiality of information. (a) There is no
privilege against disclosure under Article 3.21 in the following instances:
(i) in an agreement evidenced by a record authenticated by all parties to
the agreement;
(ii) available to the public or made during a session of a mediation
which is open, or is required by law to be open, to the public;
(iii) a threat or statement of a plan to inflict bodily injury or commit a
crime of violence;
(iv) intentionally used to plan a crime, attempt to commit, or commit a
crime, or conceal an ongoing crime or criminal activity.
(v) sought or offered to prove or disprove abuse, neglect, abandonment
or exploitation in a proceeding in which a public agency is protecting the
interest of an individual protected by law; but this exception does not
apply where a child protection matter is referred to mediation by a court
or where a public agency participates in the child protection mediation;
(vi) sought or offered to prove or disapprove a claim or complaint of
professional misconduct or malpractice filed against a party, non-party
participant, or representative of a party based on conduct occurring
during a mediation.
(b) If a court or administrative agency finds, after a hearing in camera, that the
party seeking 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 outweighs the interest in protecting confidentially, and the mediation
communication is sought or offered in:
(i) a court proceeding involving a crime or felony; or
(ii) a proceeding to prove a claim or defense that under the law is
sufficient to reform or avoid a liability on a contract arising out of the
mediation.
(c) A mediator may not be compelled to provide evidence of a mediation
communication or testify in such proceeding.
(d) If a mediation communication is not privileged under an exception in sub-
section (a) or (b) hereof, only the portion of the communication necessary for the
application of the exception for non-disclosure may be admitted. The admission
of a particular evidence for the limited purpose of an exception does not render
that evidence, or any other mediation communication, admissible for any other
purpose.
Article 3.24. Non-Reporting or Communication by Mediator. A mediator may not make a
report, assessment, evaluation, recommendation, finding or other communication
regarding a mediation to a court or agency or other authority that may make a ruling on a
dispute that is the subject of a mediation, except:
(a) to state that the mediation occurred or has terminated, or where a settlement
was reached; or
(b) as permitted to be disclosed under Article 3.23 (Exception to the Privilege of
Confidentiality of Information).
The parties may, by an agreement in writing, stipulate that the settlement agreement shall
be sealed and not disclosed to any third party including the court. Such stipulation,
however, shall not apply to a proceeding to enforce or set aside the settlement agreement.
RULE 10 – Fees and Cost of Mediation
Article 3.25. Fees and Cost of Ad hoc Mediation. In ad hoc mediation, the parties are free
to make their own arrangement as to mediation cost and fees. In default thereof, the
schedule of cost and fees to be approved by the OADR shall be followed.
Article 3.26. Fees and Cost of Institutional Mediation. (a) In institutional mediation,
mediation cost shall include the administrative charges of the mediation institution under
which the parties have agreed to be bound, mediator’s fees and associated expenses, if
any. In default of agreement of the parties as to the amount and manner of payment of
mediation’s cost and fees, the same shall be determined in accordance with the applicable
internal rules of the mediation service providers under whose rules the mediation is
conducted.
(b) A mediation service provider may determine such mediation fee as is
reasonable taking into consideration the following factors, among others:
(i) the complexity of the case;
(ii) the number of hours spent in mediation; and
(iii) the training, experience and stature of mediators.
CHAPTER 4
INTERNATIONAL COMMERCIAL ARBITRATION
RULE 1 – General Provisions
Article 4.1. Scope of Application. (a) This Chapter applies to international commercial
arbitration, subject to any agreement in force between the Philippines and other state or
states.
(b) This Chapter applies only if the place or seat of arbitration is the Philippines
and in default of any agreement of the parties on the applicable rules.
(c) This Chapter shall not affect any other law of the Philippines by virtue of which
certain disputes may not be submitted to arbitration or may be submitted to
arbitration only according to provisions other than those of the ADR Act.
Article 4.2. Rules of Interpretation. (a) International commercial arbitration shall be
governed by the Model Law on International Commercial Arbitration.
(b) In interpreting this Chapter, regard shall be had to the international origin of
the Model Law and to the need for uniformity in its interpretation. Resort may be
made to the travaux preparatoires and the Report of the Secretary-General of the
United Nations Commission on International Trade Law dated March 1985
entitled, "International Commercial Arbitration: Analytical Commentary on Draft
Text identified by reference number A/CN. 9/264".
(c) Moreover, in interpreting this Chapter, the court shall have due regard to the
policy of the law in favor of arbitration and the policy of the Philippines to actively
promote party autonomy in the resolution of disputes or the freedom of the
parties to make their own arrangement to resolve their dispute.
(d) Where a provision of this Chapter, except the Rules applicable to the
substance of the dispute, leaves the parties free to determine a certain issue,
such freedom includes the right of the parties to authorize a third party, including
an institution, to make that determination.
(e) Where a provision of this Chapter refers to the fact that the parties have
agreed or that they may agree or in any other way refers to an agreement of the
parties, such agreement includes any arbitration rules referred to in that
agreement.
(f) Where a provision of this Chapter, other than in paragraph (a) of Article 4.25
(Default of a Party) and paragraphs (b) (i) of Article 4.32 (Termination of
 Proceedings), refers to a claim, it also applies to a counter-claim, and where it
refers to a defense, it also applies to a defense to such counter-claim.
Article 4.3. Receipt of Written Communications. (a) Unless otherwise agreed by the
parties:
(i) any written communication is deemed to have been received if it is
delivered to the addressee personally or at his/her place of business,
habitual residence or mailing address; if none of these can be found
after making a reasonable inquiry, a written communication is deemed
to have been received if it is sent to the addressee’s last known place of
business, habitual residence or mailing address by registered letter or
any other means which provides a record of the attempt to deliver it;
(ii) the communication is deemed to have been received on the day it is
so delivered.
(b) The provisions of this Article do not apply to communications in court
proceedings, which shall be governed by the Rules of Court.
Article 4.4. Waiver of Right to Object. Any party who knows that any provision of this
Chapter from which the parties may derogate or any requirement under the arbitration
agreement has not been complied with and yet proceeds with the arbitration without stating
the objections for such non-compliance without undue delay or if a time limit is provided
therefor, within such period of time, shall be deemed to have waived the right to object.
Article 4.5. Extent of Court Intervention. In matters governed by this Chapter, no court
shall intervene except where so provided in the ADR Act. Resort to Philippine courts for
matters within the scope of the ADR Act shall be governed by the Special ADR Rules.
Article 4.6. Court or Other Authority for Certain Functions of Arbitration Assistance and
Supervision.
(a) The functions referred to in paragraphs (c) and (d) of Article 4.11
(Appointment of Arbitrators) and paragraph (c) of Article 4.13 (Challenge
Procedure) and paragraph (a) of Article 4.14 (Failure or Impossibility to Act) shall
be performed by the appointing authority as defined in Article 1.6 C1, unless the
latter shall fail or refuse to act within thirty (30) days from receipt of the request in
which case the applicant may renew the application with the court. The
appointment of an arbitrator is not subject to appeal or motion for
reconsideration.
(b) The functions referred to in paragraph (c) of Article 4.16 (c) (Competence of
Arbitral Tribunal to Rule on its Jurisdiction), second paragraph of Article 4.34
(Application for Setting Aside an Exclusive Recourse Against Arbitral Award),
Article 4.35 (Recognition and Enforcement), Article 4.38 (Venue and Jurisdiction),
shall be performed by the appropriate Regional Trial Court.
(c) A Court may not refuse to grant, implement or enforce a petition for an interim
measure, including those provided for in Article 4.9 (Arbitration Agreement and
Interim Measures by Court), Article 4. 11 (Appointment of Arbitrators), Article
4.13 (Challenge Procedure), Article 4,27 (Court Assistance in Taking Evidence),
on the sole ground that the Petition is merely an ancillary relief and the principal
action is pending with the arbitral tribunal.
RULE 2- Arbitration Agreement
Article 4.7 Definition and Form of Arbitration Agreement. The Arbitration agreement, as
defined in Articles 1.6 A4, shall be in writing. An agreement is in writing if it is contained in
a document signed by the parties or in an exchange of letters, telex, telegrams or other
means of telecommunication which provide a record of the agreement, or in an exchange
of statements of claim and defense in which the existence of an agreement, or in an
exchange of statements of claim and defense in which the existence of an agreement is
alleged by one party and not denied by another. The reference in a contract to a document
containing an arbitration clause constitutes an arbitration agreement provided that the
contracts is writing and the reference is such as to make that clause part of the contract.
Article 4.8 Arbitration Agreement and Substantive Claim Before Court. (a) A court before
which an action is brought in a matter which is the subject of an arbitration agreement
shall, if at least one party so requests of both parties thereafter, refer the parties to
arbitration unless it finds that the arbitration agreement is null and void, inoperative or
incapable of being performed.
(b) Where an action referred to in the previous paragraph has been brought ,
arbitral proceedings may nevertheless be commenced or continued, and an
award may be made, while the issue is pending before the court.
(c) Where the action is commenced by or against multiple parties, one or more of
whom are parties to an arbitration agreement, the court shall refer to arbitration
those parties who are bound by the arbitration agreement although the civil
action may continue as to those who are not bound by such arbitration
agreement.
Article 4.9 Arbitration Agreement and Interim Measures by Court. (a) It is not incompatible
with an arbitration agreement for a party to request from a court, before the constitution of
the arbitral tribunal or during arbitral proceedings, an interim measure of protection and for
a court to grant such measure.
(b) To the extent that the arbitral tribunal has no power to act or is unable to act
effectively, a request for interim measure of protection, or modification thereof as
provided for, and in the manner indicated in , Article 4.17 (Power of Tribunal to
Order Interim Measures ), may be made with the court.
The rules of interim or provisional relief provided for in paragraph ( c ) of Article 4.17 of
these Rules shall be observed.
A party may bring a petition under this Article before the court in accordance with the Rules
of Court or the Special ADR Rules.
RULE 3 – Composition of Arbitral Tribunal
Article 4.10 Number of Arbitrators. The parties are free to determine the number of
arbitrators Failing such determination, the number of arbitrators shall be three (3).
Article 4.11. Appointment of Arbitrators. (a) No person shall be produced by reason of
his/her nationality from acting as an arbitrator, unless otherwise agreed by the parties.
(b) The parties are free to agree on a procedure of appointing the arbitrator or
arbitrators, subject to provisions of paragraphs (d) and (e) of this Article.
(c) Failing such agreement:
(i) in an arbitration with three (3 ) arbitrators, each party shall appoint
one arbitrator, and the two (2) arbitrators thus appointed shall appoint
the third arbitrator; if any party fails to appoint the arbitrator within thirty
(30) days of receipt of a request to do so from the other party, or if the
two (2) arbitrators fail to agree on the third arbitrator within thirty days
(30) days of their appointment shall be made, upon request of a party,
by the appointing authority;
(ii) in an arbitration with a sole arbitrator, if the parties are unable to
agree on the arbitrator, he/she shall be appointed, upon request of a
party, by the appointing authority.
(d) Where, under an appointment procedure agreed upon the parties,
(i) a party fails to act as required under such procedure, or
(ii) the parties , or two arbitrators, are unable to reach an agreement
expected of them under such procedure, or
(iii) a third party, including an institution, fails to perform any function
entrusted to it under such procedure,
Any party may request the appointing authority to take the necessary measure to
appoint an arbitrator, unless the agreement on the appointment procedure
provides other means for securing the appointment.
(e) A decision on a matter entrusted by paragraphs (c) and (d) of this to the
appointing authority shall be immediate executory and not be subject to a motion
for reconsideration or appeal. The appointing authority shall have in appointing
an arbitrator, due regard to any qualifications required of the arbitrator by the
agreement of the parties and to such considerations as are likely to secure the
appointment of an independent and impartial arbitrator and, in the case of a sole
or third arbitrator , shall take into account as well the advisability of appointing an
arbitrator of a nationality other than the Rules of Court of the Special ADR Rules.
Article 4.12 Grounds for Challenge. (a) When a person is approached in connection with
his/her possible appointment as an arbitrator, he/she impartiality or independence. An
arbitrator, from the time of his/her appointment and throughout the arbitral proceedings
shall, without delay, disclose any such circumstance to the parties unless they have
already been informed of them him/her.
(b) An arbitrator may be challenged only if circumstances exist that give rise to
justifiable doubts as to his/her impartiality or independence, or if he/she does not
possess qualifications agreed to by the parties. A party may challenge an
arbitrator appointed by him/her, or in whose appointment he/she has participated,
only for reasons of which he/she becomes aware after the appointment has been
made.
Article 4.13. Challenge Procedure. (a) The parties are free to agree on a procedure for
challenging an arbitrator, subject to the provisions of this Article.
(b) Failing such agreement, a party who intends to challenge an arbitrator shall,
within fifteen (15) days after becoming aware of the constitution of the arbitral
tribunal or after becoming aware of any circumstances referred to in paragraph
(b) of Article 4.12 (Grounds for Challenge,) send a written statement of the
reasons for the challenge to the arbitral tribunal. Unless the challenged arbitrator
withdraws from his/her office or the other party agrees to the challenged
arbitrator withdraws from his/her office or the party agrees to the challenge, the
arbitral tribunal shall decide on the challenge.
(c) If a challenge under any procedure agreed upon by the parties or under the
procedure of paragraph (b) of this Article is not successful, the challenging party
may request the appointing authority, within thirty (30) days after having received
notice of the decision rejecting the challenge, to decide on the challenge, which
decision shall be immediately executory and not subject to motion for
reconsideration or appeal. While such a request is pending, the arbitral tribunal,
including the challenged arbitrator, may continue the arbitral proceedings and
make an award.
A party may bring a petition under this Article before the court in accordance with the Rules
of Court or the Special ADR Rules.
Article 4.14. Failure or Impossibility to Act. (a) If an arbitrator becomes de jure or de
facto unable to perform his/her functions or for other reasons fails to act without undue
delay, his/her mandate terminates if he/she withdraws from his/her office or if the parties
agree on the termination. Otherwise, if the controversy remains concerning any of these
grounds, any party may request the appointing authority to decide on the termination of the
mandate, which decision shall be immediately executory and not subject for motion for
reconsideration or appeal.
(b) If, under this Article or paragraph (b) of Article 4.13 (Challenge Procedure), an
arbitrator withdraws from his/her office or a party agrees for termination of the
mandate of an arbitrator, this does not imply acceptance of the validity of any
ground referred to in this Article or in paragraph (b) of Article 4.12 (Grounds for
Challenge).
Article 4.15. Appointment of Substitute Arbitrator. Where the mandate of an arbitrator
terminates under Articles 4.13 (Challenge Procedure) and 4.14 (Failure or Impossibility to
Act) or because of his/her withdrawal from office for any other reason or because of the
revocation of his/her mandate, a substitute arbitrator shall be appointed according to the
rules that were applicable to the appointment of the arbitrator being replaced.
RULE 4 – Jurisdiction of Arbitral Tribunal
Article 4.16. Competence of Arbitral Tribunal to Rule on its Jurisdiction. (a) The
arbitral tribunal may rule on its own jurisdiction, including any objections with respect to the
existence or validity of the arbitration agreement or any condition precedent to the filing of
the request for arbitration. For that purpose, an arbitration clause, which forms part of a
contract shall be treated as an agreement independent of the other terms of the contract. A
decision by the arbitral tribunal that the contract is null and void shall not entail ipso
jure the invalidity of the arbitration clause.
(b) A plea that the arbitral tribunal does not have jurisdiction shall be raised not
later than the submission of the statement of defense (I.e., in an Answer or
Motion to Dismiss). A party is not precluded from raising such plea by the fact
that he/she has appointed, or participated in the appointment of, an arbitrator. A
plea that the arbitral tribunal is exceeding the scope of its authority shall be
raised as soon as the matter alleged to be beyond the scope of its authority is
raised during the arbitral proceedings. The arbitral tribunal may, in either case,
admit a later plea if it considers the delay justified.
(c) The arbitral tribunal may rule on a plea referred to in paragraph (b) of this
Article either as a preliminary question or in an award on the merits. If the arbitral
tribunal rules as a preliminary question that it has jurisdiction, any party may
request, within thirty (30) days after having received notice of that ruling, the
Regional Trial Court to decide the matter, which decision shall be immediately
executory and not subject to motion for reconsideration or appeal. While such a
request is pending, the arbitral tribunal may contribute the arbitral proceedings
and make an award.
Article 4.17. Power of Arbitral Tribunal to Order Interim Measures. (a) Unless
otherwise agreed by the parties, the arbitral tribunal may, at the request of the party, order
any party to take such interim measures of protection as the arbitral tribunal may consider
necessary in respect of the subject to matter of the dispute following paragraph (c) of this
Article. Such interim measures may include, but shall not be limited to, preliminary
injunction directed against a party, appointment of receivers, or detention, preservation,
inspection of property that is the subject of the dispute in arbitration.
(b) After constitution of the arbitral tribunal, and during arbitral proceeding, a
request for interim measures of protection, or modification thereof shall be made
with the arbitral tribunal. The arbitral tribunal is deemed constituted when the sole
arbitrator or the third arbitrator, who has been nominated, has accepted the
nomination and written communication of said nomination and acceptance has
been received by the party making the request.
(c) The following rules on interim or provisional relief shall be observed:
(i) Any party may request that the interim or provisional relief shall be
observed:
(ii) Such relief may be granted:
(aa) To prevent irreparable loss or injury;
(bb) To provide security for the performance of an obligation;
(cc) To produce or preserve evidence
(dd) To compel any other appropriate acts or omissions.
(iii) The order granting provisional relief may be conditioned upon the
provision of security or any act or omission specified in order.
(iv) Interim or provisional relief is requested by written application
transmitted by reasonable means to the arbitral tribunal and the party
against whom relief is sought, describing in appropriate details of the
precise relief, the party against whom the relief is requested, the ground
for the relief, and the evidence, supporting the request.
(v) The order granting or denying an application for the interim relief
shall be binding upon the parties.
(vi) Either party may apply with the court for assistance in implementing
or enforcing an interim measure ordered by an arbitral tribunal.
(vii) A party who does not comply with the order shall be liable for all
damages, resulting from noncompliance, including all expenses, and
reasonable attorney's fees, paid in obtaining the order's judicial
enforcement.
RULE 5 – Conduct of Arbitral Proceedings
Article 4.18. Equal Treatment of Parties. The parties shall be treated with equality and
each shall be given a full opportunity of presenting his/her case.
Article 4.19. Determination of the Rules of Procedure. (a) Subject to the provisions of this
Chapter, the parties are free to agree on the procedure to be followed by the arbitral
tribunal in conducting the proceedings.
(b) Falling such agreement, the arbitral tribunal may, subject to this Chapter,
conduct the arbitration in such manner as it considers appropriate. Unless the
arbitral tribunal considers it inappropriate, the UNCITRAL Arbitration Rules
adopted by the UNCITRAL on 28 April 1976 and the UN General Assemble on
15 December 1976 shall apply subject to the following clarification: All references
to the "Secretary-General of the Permanent Court of Arbitration at the Hague"
shall be deemed to refer to the appointing authority.
(c) The power conferred upon the arbitral tribunal includes the power to
determine the admissibility, relevance, materiality and weight of any evidence.
Article 4.20. Place of Arbitration. (a) The parties are free to agree on the place of
arbitration. Failing such agreement, the place of arbitration shall be in Metro Manila unless
the arbitral tribunal, having regard to the circumstances of the case, including the
convenience of the parties, shall decide on a different place of arbitration.
(b) Notwithstanding the rule stated in paragraph (a) of this provision, the arbitral
tribunal may, unless otherwise agreed by the parties, meet at any place it
considers appropriate for consultation among its members, for hearing witnesses,
experts or the parties, or for inspection of goods, other property or documents.
Article 4.21. Commencement of Arbitral Proceedings. Unless otherwise agreed by the
parties, the arbitral proceedings in respect of a particular dispute commence on the date
on which a request for that dispute to be referred to arbitration is received by the
respondent.
Article 4.22. Language. (a) The parties are free to agree on the language or languages to
be used in the arbitral proceedings. Failing such agreement, the language to be used shall
be English. This agreement, unless otherwise specified therein, shall apply to any written
statement by a party, any hearing and any award, decision or other communication by the
arbitral tribunal.
(b) The arbitral tribunal may order that any documentary evidence shall be
accompanied by a translation into the language or languages agreed upon by the
parties or determined by the arbitral tribunal in accordance with paragraph (a) of
this Article.
Article 4.23 Statements of Claim and Defense. (a) Within the period of time agreed by
the parties or determined by the arbitral tribunal, the claimant shall state the facts
supporting his/her/its claim, the points at issue and the relief or remedy sought, and the
respondent shall state his/her/its defense in respect of these particulars, unless the parties
have otherwise agreed as to the required elements of such statements. The parties may
submit with their statements, all documents they consider to be relevant or may add a
reference to the documents or other evidence they will submit.
(b) Unless otherwise agreed by the parties, either party may amend or
supplement his/her claim or defense during the course of the arbitral
proceedings, unless the arbitral tribunal considers it inappropriate to allow such
amendment having regard to the delay in making it.
Article 4.24 Hearing and Written Proceedings. (a) Subject to any contrary agreement by
the parties, the arbitral tribunal shall decide whether to hold oral hearings for the
presentation of evidence or for oral argument, or whether the proceedings shall be
conducted on the basis of documents and other materials. However, unless the parties
have agreed that no hearings at an appropriate stage of the proceedings, if so requested
by a party.
(b) The parties shall be given sufficient advance notice of any hearing and of any
meeting of the arbitral tribunal for the purposes of inspection goods, other
property or documents.
(c) All statements, documents or other information supplied to the arbitral by one
party shall be communicated to the other party. Also, an expert report or
evidentiary document on which the arbitral tribunal may rely in making its
decision shall be communicated to the parties.
Article 4.25 Default of a Party. Unless otherwise agreed by the parties, if, without,
showing sufficient cause,
(a) the claimant fails to communicate his statement of claim in accordance with
paragraph (a) Article 4.23 (Statement of Claim and Defense), the arbitral tribunal
shall terminate the proceedings;
(b) the respondent fails to communicate his/her/its statement of defense in
accordance with paragraph (a) Article 4.23 (Statement of Claim and Defense),
the arbitral tribunal shall continue the proceedings without treating such failure in
itself as an admission of the claimant’s allegations.
(c) any party’s fails to appear at a hearing or to produce documentary evidence,
the arbitral tribunal may continue the proceedings and make the award on the
evidence before it.
Article 4.26. Expert Appointed by the Arbitral Tribunal. Unless otherwise agreed by the
parties, the arbitral tribunal,
(a) may appoint one or more experts to report to it on specific issues to be
determined by the arbitral tribunal; or
(b) may require a party to give the expert any relevant information or to produce,
or to provide access to, any relevant documents, goods or other property for
his/her inspection.
Unless otherwise agreed by the parties, if a party so requests or if the arbitral tribunal
considers it necessary, the expert shall, after delivery of his/her written or oral report,
participate in a hearing where the parties have the opportunity to put questions to him and
to present expert witnesses in order to testify on the points at issue.
Article 4.27. Court Assistance in Taking Evidence. The arbitral tribunal or a party with
the approval of the arbitral tribunal may request from a court of the Philippines assistance
in taking evidence. The court may execute the request within its competence and
according to its rules on taking evidence.
The arbitral tribunal shall have the power to require any person to attend a hearing as a
witness. The arbitral tribunal shall have the power to subpoena witnesses and documents
when the relevancy of the testimony and the materiality thereof has been demonstrated to
it. The arbitral tribunal may also require the retirement of any witness during the testimony
of any other witness.
A party may bring a petition under this Section before the court in accordance with the
Rules of Court or the Special ADR Rules.
Article 4.28. Rules Applicable to the Substance of Dispute. (a) The arbitral tribunal
shall decide the dispute in accordance with such rules of law as are chosen by the parties
as applicable to the substance of the dispute. Any designation of the law or legal system of
a given state shall be construed, unless otherwise expressed, as directly referring to the
substantive law of that state and not its conflict of laws rules.
(b) Failing any designation by the parties, the arbitral tribunal shall apply the law
determined by the conflict of laws rules, which it considers applicable.
(c) The arbitral tribunal shall decide ex aequo et bono or as amiable
compositeur only if the parties have expressly authorized it to do so.
(d) In all cases, the arbitral tribunal shall decide in accordance with the terms of
the contract and shall take into account the usages of the trade applicable to the
transaction.
Article 4.29. Decision-Making by Panel of Arbitrators. In arbitral proceedings with more
than one arbitrator, any decision of the arbitral tribunal shall be made, unless otherwise
agreed by other parties, by a majority of all its members. However, questions of procedure
may be decided by a presiding arbitrator , if so authorized by the parties or all members of
the arbitral tribunal.
Article 4.30. Settlement. If, during arbitral proceedings, the parties settle the dispute, the
arbitral tribunal shall terminate the proceedings and, if requested by the parties and not
objected to by the arbitral tribunal, record the settlement in the form of an arbitral award on
agreed terms.
An award on agreed terms shall be made in accordance with the provisions of Article 4.31
(Form and Contents of Award), and shall state that it is an award. Such an award has the
same status and effect as any other award on the merits of the case.
Article 4.31. Form and Contents of Award. (a) The award shall be made in writing and
shall be signed by the arbitrator or arbitrators. In arbitral proceedings with more than one
arbitrator, the signatures of the majority of all members of the arbitral tribunal shall suffice,
provided that the reason for any omitted signature is stated.
(b) The award shall state the reasons upon which it is based, unless the parties
have agreed that no reasons are to be given or the award is an award on agreed
terms under paragraph (a) of Article 4.20 (Place of Arbitration).
(c) The award shall state its date and the place of arbitration as determined in
accordance with paragraph (a) of this Article. The award shall be deemed to have
been made at that place.
(d) After the award is made, a copy signed by the arbitrators in accordance with
paragraph (a) of this Article shall be delivered. to each party.
Article 4.32. Termination of Proceedings. (a) The arbitral proceedings are terminated by
the final award or by an order of the arbitral tribunal in accordance with paragraph (b) of
this Article. (b) The arbitral tribunal shall issue an order for the termination of the arbitral
proceedings when:
(i) The claimant withdraws his/her/its claim, unless the respondent
objects thereto and the arbitral tribunal recognized a legitimate interest
on his/her/its part in obtaining a final settlement of the dispute;
(ii) The parties agree the termination of the proceedings;
(iii) The arbitral tribunal finds that the continuation of the proceedings
has for any other reason become unnecessary or impossible.
(c) The mandate of the arbitral tribunal ends with termination of the arbitral
proceedings subject to the provisions of Articles 4.33 (Correction and
Interpretation of Award, Additional Award) and paragraph (d) of Articles 4.34
(Application for Setting Aside an Exclusive Recourse against Arbitral Award).
(d) Notwithstanding the foregoing, the arbitral tribunal may, for special reasons,
reserve in the final award or order, a hearing to quantity costs and determine
which party shall bear the costs or the division thereof as may be determined to
be equitable. Pending determination of this issue, the award shall not be deemed
final for purposes of appeal ,vacation, correction, or any post-award proceedings.
Article 4.33. Correction and Interpretation of Award, Additional Award. (a) Within thirty (30)
days from receipt of the award, unless another period of time has been agreed upon by the
parties:
(i) A party may, with notice to the other party, request the arbitral
tribunal to correct in the award any errors in computation, any clerical or
typographical errors or any errors of similar nature;
(ii) A party may, it so agreed by the parties and with notice to the other
party, request the arbitral tribunal to give an interpretation of a specific
point or part of the award.
(b) If the arbitral tribunal considers the request to be justified, It shall make the
correction or give the interpretation within thirty (30) days from receipt of the
request. The interpretation shall form part of the award.
(c) The arbitral tribunal may correct any error of the type referred to in paragraph
(a) of this Article on its own initiative within thirty (30) day from the date of the
award
(d) Unless otherwise agreed by the parties, a party may, with notice to the other
party, request, within thirty (30) days receipt of the award, the arbitral tribunal to
make an additional award as to claims presented in the arbitral proceedings but
omitted from the award. If the arbitral tribunal considers the request to be
justified, it shall make the additional award within sixty (60) days
 (e) The arbitral tribunal may extend, if necessary, the period of time within which
it shall make a correction interpretation or an additional award under paragraphs
(a) and (b) of this Article.
(f) The provisions of Article 4.31 (Form and Contents of Award) shall apply to a
correction or interpretation of the award or to an additional award.
Article 4.34. Aplication for Setting Aside an Exclusive Recourse against Arbitral Award.
(a) Recourse to a court against an arbitral award may be made only by
application for setting aside in accordance with second and third paragraphs of
this Article.
(b) An arbitral award may be set aside by the Regional Trial Court only If:
(i) the party making the application furnishes proof that:
(aa) a party to the arbitration agreement was under some
incapacity ; or the said agreement is not valid under the law to
which the parties have subjected it or, failing any indication
thereon, under the law of the Philippines; or
(bb) 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
(cc) the award deals with a dispute not contemplated by or not
failing 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 decisions on
matters submitted to arbitration can be separated from those
not so submitted, only the part of the award which contains
decisions on matters not submitted to arbitration may be set
aside; or
(dd) the composition of the arbitral tribunal or the arbitral
procedure was not in accordance with the agreement of the
parties, unless such agreement was in conflict with a
provision of ADR Act from which the parties cannot derogate,
or, falling such agreement, was not in accordance with ADR
Act; or
(ii) the Court finds that:
(aa) the subject-matter of the dispute is not capable of
settlement by arbitration under the law of the Philippines; or
(bb) the award is in conflict with the public policy of the
Philippines.
(c) An application for setting aside may not be made after three months have
elapsed from the date on which the party making that application had received
the award or, If a request had been made under Article 4.33 (Correction and
Interpretation of Award, Additional Award) from the date on which that request
has been disposed of by the Arbitral tribunal
(d) The court, when asked to set aside an award, may, where appropriate and so
requested by a party, suspend the setting aside proceedings for a period of time
determined by it in order to give the arbitral tribunal an opportunity resume the
arbitral proceedings or take such other action as in the arbitral tribunal's opinion
will eliminate the grounds for setting aside.
(e) A party may bring a petition under this Article before the court in accordance
with the Special ADR Rules.
RULE 6 – Recognition and Enforcement of Awards
Article 4.35. Recognition and Enforcement. (a) A foreign arbitral award shall be
recognized as binding and, upon petition in writing to the regional trial Court, shall be
enforced subject to the provisions of this Article and of Article 4.36 (Grounds for Refusing
Recognition or Enforcement).
(b) The petition for recognition and enforcement of such arbitral awards shall be
filled with the Regional trial Court In accordance with Special ADR Rules.
(i) Convention Award - The New York Convention shall govern the
recognition and enforcement of arbitral awards covered by said
Convention. The petitioner shall establish that the country in which the
foreign arbitration award was made is a party to the New York
Convention
(ii) Non-Convention Award – The recognition and enforcement of
foreign arbitral awards not covered by the New York Convention shall
be done in accordance with procedural rules to be promulgated by the
Supreme Court. The court may, on grounds of comity and reciprocity,
recognize and enforce a non-convention award as a convention award.
(c) The party relying on an award or applying for its enforcement shall file with the
Regional Trial Court the original or duly authenticated copy of the award and the
original arbitration agreement or a duly authenticated copy thereof. If the award
or agreement is not made in an official language of the Philippines, the party shall
supply a duly certified translation thereof into such language.
(d) A foreign arbitral award when confirmed by a court of a foreign country, shall
be recognized and enforced as a foreign arbitral award and not as a judgment of
a foreign court.
(e) A foreign arbitral award when confirmed by the Regional Trial Court, shall be
enforced in the same manner as final and executory decisions of courts of law of
the Philippines.
 (f) If the Regional Trial Court has recognized the arbitral award but an application
for rejection and/or) suspension of enforcement of that award is subsequently
made, the Regional Trial Court may, if it considers the application to be proper,
vacate or suspend the decision to enforce that award and may also, on the
application of the party claiming recognition or enforcement of that award, order
the other party seeking rejection or suspension to provide appropriate security.
Article 4.36. Grounds for Refusing Recognition or Enforcement.
A CONVENTION AWARD.
Recognition or enforcement of an arbitral award, made in a state, which is a party to the
New York Convention, may be refused, at the request of the party against whom it is
provoked, only if the party furnishes to the Regional Trial Court proof that:
(a) The parties to the arbitration agreement are, under the law applicable to them,
under some incapacity; or the said agreement is not valid under the law to which
the parties have subjected it or; failing any indication thereon, under the law of
the country where the award was made; or
(b) the party against whom the award is invoked was not given proper notice of
the appointment of an arbitrator or of the arbitral proceedings or was otherwise in
able to present his case; or
(c) the award deals with dispute not contemplated by or not failing within the
terms of the submission to arbitration, or it contains decisions on matters beyond
the scope of the submission to arbitration; provided that, if the decisions on
matters submitted to arbitration can be separated from those not so submitted,
that part of the award which contains decisions on matters submitted to
arbitration may be recognized and enforced; or
(d) the composition of the arbitral tribunal 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 the arbitration too place; or
(e) the award has not become binding on the parties or has been set aside or
suspended by a court of the country in which, or under the law of which, that
award was made.
Recognition and enforcement of an arbitral award may also be refused if the Regional Trial
Court where recognition and enforcement is sought finds that:
(a) the subject-matter of the dispute is not capable of settlement by arbitration
under the law of Philippines; or
(b) the recognition or enforcement of the award would be contrary to the public
policy of the Philippines.
A party to a foreign arbitration proceeding may oppose an application for recognition and
enforcement of the arbitral award in accordance with the Special ADR Rules only on the
grounds enumerated under paragraph (a) and (c) of Article 4.35 (Recognition and
Enforcement). Any other ground raised shall be disregarded by the Regional Trial Court.
B. NON-CONVENTION AWARD.
(a) A foreign arbitral award rendered in a state which is not a party to the New
York Convention will be recognized upon proof of the existence of comity and
reciprocity and may be treated as a convention award. If not so treated and if no
comity or reciprocity exists, the non-convention award cannot be recognized
and/or enforced but may be deemed as presumptive evidence of a right as
between the parties in accordance with Section 48 of the Rules of Court.
(b) If the Regional Trial Court has recognized the arbitral award but a petition for
suspension of enforcement of that award is subsequently made, the Regional
Trial Court may, if it considers the petition to be proper, suspend the proceedings
to enforce the award, and may also, on the application of the party claiming
recognition or enforcement of that award, order the other party seeking
suspension to provide appropriate security.
(c) If the petition for recognition or enforcement of the arbitral award is filed by a
party and a counter-petition for the rejection of the arbitral award is filed by the
other party, the Regional Trial Court may, if it considers the counter-petition to be
proper but the objections thereto may be rectified or cured, remit the award to the
arbitral tribunal for appropriate action and in the meantime suspend the
recognition and enforcement proceedings and may also on the application of the
petitioner order the counter-petitioner to provide appropriate security.
Article 4.37. Appeal from Court Decision on Arbitral Awards. A decision of the Regional
Trial Court recognizing, enforcing, vacating or setting aside an arbitral award may be
appealed to the Court of Appeals in accordance with the rules of procedure to be
promulgated by the Supreme Court.
The losing party who appeals from the judgment of the court recognizing and enforcing an
arbitral award shall be required by the Court of Appeals to post a counter-bond executed if
favor of the prevailing party equal to the amount of the award in accordance with the
Special ADR Rules.
Any stipulation by the parties that the arbitral tribunal’s award or decision shall be final, and
therefore not appealable, is valid. Such stipulation carries with it a waiver of the right to
appeal from an arbitral award but without prejudice to judicial review by way of certiorari
under Rule 65 of the Rules of Court.
Article 4.38. Venue and Jurisdiction. Proceedings for recognition and enforcement of an
arbitration agreement or for vacation or setting aside of an arbitral award, and any
application with a court for arbitration assistance and supervision, except appeal, shall be
deemed as special proceedings and shall be filed with the Regional Trial Court where:
(a) the arbitration proceedings are conducted;
 (b) where the asset to be attached or levied upon, or the act to be enjoined is
located;
(c) where any of the parties to the dispute resides or has its place of business; or
(d) in the National Capital Judicial Region at the option of the applicant.
Article 4.39. Notice of Proceedings to Parties. In a special proceeding for recognition and
enforcement of an arbitral award, the court 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
party’s last known address. The notice shall be sent at least fifteen (15) days before the
date set for the initial hearing of the application.
Article 4.40. Legal Representation in International Commercial Arbitration. In international
commercial arbitration conducted in the Philippines, a party may be represented by any
person of his/her choice: Provided, that such representative, unless admitted to the
practice of law in the Philippines, shall not be authorized to appear as counsel in any
Philippine court or any other quasi-judicial body whether or not such appearance is in
relation to the arbitration in which he/she appears.
Article 4.41. Confidentially of Arbitration Proceedings. The arbitration proceedings,
including the records, evidence and the arbitral award, shall be considered confidential and
shall not be poolside except:
(a) with the consent of the parties; or
(b) for the limited purpose of disclosing to the court relevant documents in cases
where resort to the court is allowed herein.
Provided, however, that the court in which the action or the appeal is pending may issue a
protective order to prevent or prohibit disclosure of documents or information containing
secret processes, developments, research and other information where it is shown that the
applicant shall be materially prejudiced by an authorized disclosure thereof.
Article 4.42. Summary nature of proceedings before the court. A petition for recognition
and enforcement of awards brought before the court shall be heard and dealt with
summarily in accordance with the Special ADR Rules.
Article 4.43. Death of a Party. Where a party dies after making a submission or a contract
to arbitrate as prescribed in these Rules, the proceedings may be begun or continued upon
the application of, or notice to, his/her executor or administrator, or temporary administrator
of his/her estate. In any such case, the court may issue an order extending the time within
which notice of a motion to recognize or vacate an award must be served. Upon
recognizing an award, where a party has died since it was filed or delivered, the court must
enter judgement in the name of the original party; and the proceedings thereupon are the
same as where a party dies after a verdict.
Article 4.44. Multi-Party Arbitration. When a single arbitration involves more than two
parties, the foregoing rules, to the extent possible, shall be used, subject to such
modifications consistent with this Chapter as the arbitral tribunal shall deem appropriate to
address possible complexities of a multi-party arbitration.
Article 4.45. Consolidation of Proceedings and Concurrent Hearings. – The parties and
the arbitral tribunal may agree –
(a) that the arbitration proceedings shall be consolidated with other arbitration
proceedings; or
(b) that concurrent hearings shall be held, on such terms as may be agreed.
Unless the parties agree to confer such power on the arbitral tribunal, the tribunal has no
power to order consolidation of arbitration proceedings or concurrent hearings.
Article 4.46. Costs. (a) The arbitral tribunal shall fix the costs of arbitration in its award.
The term "costs" include only:
(i) The fees of the arbitral tribunal to be stated separately as to each
arbitrator and to be fixed by the tribunal itself in accordance with the
paragraph (b) of this Article;
(ii) The travel and other expenses incurred by the arbitrators;
(iii) The costs of expert advice and of other assistance required by the
arbitral tribunal;
(iv) The travel and other expenses of witnesses to the extent such
expenses are approved by the arbitral tribunal;
(v) The costs for legal representation and assistance of the successful
party if such costs were claimed during the arbitral proceedings, and
only to the extent that the arbitral tribunal determines that the amount of
such costs is reasonable;
(v1) Any fees and expenses of the appointing authority.
(b) The fees of the arbitral tribunal shall be reasonable in amount, taking into
account the amount in dispute, the complexity of the subject matter, the time
spent by the arbitrators and any other relevant circumstances of the case.
If an appointing authority has been agreed upon by the parties and if such authority has
issued a schedule of fees for arbitrators in international cases which it administers, the
arbitral tribunal in fixing its fees shall take that schedule of fees into account to the extent
that it considers appropriate in the circumstances of the case.
If such appointing authority has not issued a schedule of fees for arbitrators in international
cases, any party may, at any time request the appointing authority to furnish a statement
setting forth the basis for establishing fees which is customarily followed in international
cases in which the authority appoints arbitrators. If the appointing authority consents to
provide such a statement, the arbitral tribunal, in fixing its fees, shall take such information
into account to the extent that it considers appropriate in the circumstances of the case.
(c) In cases referred to in the second and third sub-paragraphs of paragraph (b)
of this Article, when a party so requests and the appointing authority consents to
perform the function, the arbitral tribunal shall fix its fees only after consultation
with the appointing authority which may make any comment it deems appropriate
to the arbitral tribunal concerning the fees.
(d) Except as provided in the next sub-paragraph of this paragraph, the costs of
arbitration shall, in principle, be borne by the unsuccessful party. However, the
arbitral tribunal may apportion each of such costs between the parties if it
determines that apportionment is reasonable, taking into account the
circumstances of the case.
With respect to the costs of legal representation and assistance referred to in paragraph
(c) of paragraph (a) (iii) of this Article, the arbitral tribunal, taking into account the
circumstances of the case, shall be free to determine which party shall bear such costs or
may apportion such costs between the parties if it determines that appointment is
reasonable.
When the arbitral tribunal issues an order for the termination of the arbitral proceedings or
makes an award on agreed terms, it shall fix the costs of arbitration referred to in
paragraphs (b), (c) and (d) of this Article in the context of that order or award.
(e) The arbitral tribunal, on its establishment, may request each party to deposit
an equal amount as an advance for the costs referred to in paragraphs (i), (ii) and
(iii) of paragraph (a) of this Article.
During the course of the arbitral proceedings, the arbitral tribunal may request
supplementary deposits from the parties.
If an appointing authority has been agreed upon by the parties and when a party so
requests and the appointing authority consents to perform the function, the arbitral tribunal
shall fix the amounts of any deposits or supplementary deposits only after consultation with
the appointing authority which may make any comments to the arbitral tribunal which it
deems appropriate concerning the amount of such deposits and supplementary deposits.
If the required deposits are not paid in full within thirty (30) days after receipt of the
request, the arbitral tribunal shall so inform the parties in order that the required payment
may be made. If such payment is not made, the arbitral tribunal may order the suspension
or termination of the arbitral proceedings.
After the award has been made, the arbitral tribunal shall render an accounting to the
parties of the deposits received and return any unexpended balance to the parties.
CHAPTER 5
DOMESTIC ARBITRATION
RULE 1 – General Provisions
Article 5.1. Scope of Application. (a) Domestic arbitration, which is not international as
defined in paragraph C8 of Article 1.6 shall continue to be governed by Republic Act No.
876, otherwise known as "The Arbitration Law", as amended by the ADR Act. Articles 8,
10, 11, 12, 13, 14, 18 and 19 and 29 to 32 of the Model Law and Sections 22 to 31 of the
ADR Act are specifically applicable to domestic arbitration.
In the absence of a specific applicable provision, all other rules applicable to international
commercial arbitration may be applied in a suppletory manner to domestic arbitration.
(b) This Chapter shall apply to domestic arbitration whether the dispute is
commercial, as defined in Section 21 of the ADR Act, or non-commercial, by an
arbitrator who is a private individual appointed by the parties to hear and resolve
their dispute by rendering an award; Provided that, although a construction
dispute may be commercial, it shall continue to be governed by E.O. No. 1008,
s.1985 and the rules promulgated by the Construction Industry Arbitration
Commission.
(c) Two or more persons or parties may submit to arbitration by one or more
arbitrators any controversy existing between them at the time of the submission
and which may be the subject of an action; or the parties to any contract may in
such contract agree to settle by arbitration a controversy thereafter arising
between them. Such submission or contract shall be valid, enforceable and
irrevocable, save upon such grounds as exist at law for the revocation of any
contract.
Such submission or contract may include questions arising out of valuations, appraisals or
other controversies which may be collateral, incidental, precedent or subsequent to any
dispute between the parties.
A controversy cannot be arbitrated where one of the parties to the controversy is an infant,
or a person judicially declared to be incompetent, unless the appropriate court having
jurisdiction approved a petition for permission to submit such controversy to arbitration
made by the general guardian or guardian ad litem of the infant or of the incompetent.
But where a person capable of entering into a submission or contract has knowingly
entered into the same with a person incapable of so doing, the objection on the ground of
incapacity can be taken only in behalf of the person so incapacitated.
Article 5.2. Delivery and Receipt of Written Communications. (a) Except as otherwise
agreed by the parties, a written communication from one party to the other or to the
arbitrator or to an arbitration institution or from the arbitrator or arbitration institution to the
parties shall be delivered to the addressee personally, by registered mail or by courier
service. Such communication shall be deemed to have been received on the date it is
delivered at the addressee’s address of record, place of business, residence or last known
address. The communication, as appropriate, shall be delivered to each party to the
arbitration and to each arbitrator, and, in institutional arbitration, one copy to the
administering institution.
(b) During the arbitration proceedings, the arbitrator may order a mode of delivery
and a rule for receipt of written communications different from that provided in
paragraph (a) of this Article.
 (c) If a party is represented by counsel or a representative, written
communications for that party shall be delivered to the address of record of such
counsel or representative.
(d) Except as the parties may agree or the arbitrator may direct otherwise, a
written communication may be delivered by electronic mail or facsimile
transmission or by such other means that will provide a record of the sending and
receipt thereof at the recipient’s mailbox (electronic inbox). Such communication
shall be deemed to have been received on the same date of its transmittal and
receipt in the mailbox (electronic inbox).
Article 5.3. Waiver of Right to Object. (a) A party shall be deemed to have waived his right
to object to non-compliance with any non-mandatory provision of these Rules (from which
the parties may derogate) or any requirement under the arbitration agreement when:
(i) he/she/it knows of such non-compliance; and
(ii) proceeds with the arbitration without stating his/her/its objections to
such non-compliance without undue delay or if a time-limit is provided
therefor, within such period of time.
(b) If an act is required or allowed to be done under this Chapter, unless the
applicable rule or the agreement of the parties provides a different period for the
act to be done, it shall be done within a period of thirty (30) days from the date
when such act could have been done with legal effect.
Article 5.4. Extent of Court Intervention. In matters governed by this Chapter, no court
shall intervene except in accordance with the Special ADR Rules.
Article 5.5. Court or Other Authority for Certain Functions of Arbitration Assistance and
Supervision. The functions referred to in paragraphs (c) and (d) of Article 5.10
(Appointment of Arbitrators), paragraph (a) of Article 5.11 (Grounds for Challenge), and
paragraph (a) of Article 5.13 (Failure or Impossibility to Act), shall be performed by the
appointing authority, unless the latter shall fail or refuse to act within thirty (30) days from
receipt of the request in which case, the applicant may renew the application with the
court.
RULE 2 – Arbitration Agreement
Article 5.6. Form of Arbitration Agreement. An arbitration agreement shall be in writing. An
agreement is in writing if it is contained in a document signed by the parties or in an
exchange of letters, telex, telegrams or other means of telecommunication which provide a
record of the agreement, or in an exchange of statements of claim and defense in which
the existence of an agreement is alleged by one party and not denied by the other. The
reference in a contract to a document containing an arbitration clause constitutes an
arbitration agreement provided that the contract is in writing and the reference is such as to
make that clause part of the contract.
Article 5.7. Arbitration Agreement and Substantive Claim Before Court. (a) A party to an
action may request the court before which it is pending to stay the action and to refer the
dispute to arbitration in accordance with their arbitration agreement not later than the pre-
trial conference. Thereafter, both parties may make a similar request with the court. The
parties shall be referred to arbitration unless the court finds that the arbitration agreement
is null and void, inoperative or incapable of being performed.
(b) Where an action referred to in paragraph (a) of this Article has been brought,
arbitral proceedings may nevertheless be commenced or continued, and an
award may be made, while the issue is pending before the court.
(c) Where the action is commenced by or against multiple parties, one or more of
whom are parties to an arbitration agreement, the court shall refer to arbitration
those parties who are bound by the arbitration agreement although the civil
action may continue as to those who are not bound by such arbitration
agreement.
Article 5.8. Arbitration Agreement and Interim Measures by Court. (a) It is not incompatible
with an arbitration agreement for a party to request from a court, before the constitution of
the arbitral tribunal or during arbitral proceedings, an interim measure of protection and for
a court to grant such measure.
(b) After the constitution of the arbitral tribunal and during arbitral proceedings, a
request for an interim measure of protection, or modification thereof, may be
made with the arbitral tribunal or to the extent that the arbitral tribunal has no
power to act or is unable to act effectively, the request may be made with the
court.
(c) The following rules on interim or provisional relief shall be observed:
(i) Any party may request that interim or provisional relief be granted
against the adverse party.
(ii) Such relief may be granted:
(aa) To prevent irreparable loss or injury;
(bb) To provide security for the performance of an obligation;
(cc) To produce or preserve evidence; or
(dd) To compel any other appropriate act or omissions.
(iii) The order granting provisional relief may be conditioned upon the
provision of security or any act or omission specified in the order.
(iv) Interim or provisional relief is requested by written application
transmitted by reasonable means to the arbitral tribunal and the party
against whom relief is sought, describing in appropriate detail of the
precise relief, the party against whom the relief is requested, the ground
for the relief, and the evidence supporting the request.
 (v) The order either grating or denying an application for interim relief
shall be binding upon the parties.
(vi) Either party may apply with the court for assistance in implementing
or enforcing an interim measure ordered by an arbitral tribunal.
(vii) A party who does not comply with the order shall be liable for all
damages, resulting from noncompliance, including all expenses, and
reasonable attorney’s fees, paid in obtaining the order’s judicial
enforcement.
(d) Unless otherwise agreed by the parties, the arbitral tribunal may, at the
request of a party, order any party to take such interim measures of protection as
the arbitral tribunal may consider necessary in respect of the subject matter of
the dispute following the Rules in this Article. Such interim measures may include
but shall not be limited to preliminary injunction directed against a party,
appointment of receivers or detention, preservation, inspection of property that is
the subject of the dispute in arbitration. Either party may apply with the court for
assistance in implementing or enforcing an interim measure ordered by an
arbitral tribunal.
RULE 3. Composition of Arbitral Tribunal
Article 5.9. Number of Arbitrators. The parties are free to determine the number of
arbitrators. Failing such determination, the number of arbitrators shall be three (3).
Article 5.10. Appointment of Arbitrators. (a) Any person appointed to serve as an arbitrator
must be of legal age, in full enjoyment of his/her civil rights and knows how to read and
write. No person appointed to serve as an arbitrator shall be related by blood or marriage
within the sixth degree to either party to the controversy. No person shall serve as an
arbitrator in any proceeding if he/she has or has had financial, fiduciary or other interest in
the controversy or cause to be decided or in the result of the proceeding, or has any
personal bias, which might prejudice the right of any party to a fair and impartial award.
No party shall select as an arbitrator any person to act as his/her champion or to advocate
his/her cause.
(b) The parties are free to agree on a procedure of appointing the arbitrator or
arbitrators. If, in the contract for arbitration or in the submission, a provision is
made for a method of appointing an arbitrator or arbitrators, such method shall be
followed.
(c) Failing such agreement,
(i) in an arbitration with three (3) arbitrators, each party shall appoint
one (1) arbitrator, and the two (2) arbitrators thus appointed shall
appoint the third arbitrator; if a party fails to appoint the arbitrator within
thirty (30) days of receipt of a request to do so from the other party, or if
the two arbitrators fail to agree on the third arbitrator within thirty (30)
days of their appointment, the appointment shall be made, upon
request of a party, by the appointing authority;
(ii) in an arbitration with a sole arbitrator, if the parties are unable to
agree on the arbitrator, he/she shall be appointed, upon request of a
party, by the appointing authority.
(d) Where, under an appointment procedure agreed upon by the parties,
(i) a party fails to act or appoint an arbitrator as required under such
procedure, or
(ii) the parties, or two (2) arbitrators, are unable to appoint an arbitrator
or reach an agreement expected of them under such procedure, or
(iii) a third party, including an institution, fails to appoint an arbitrator or
to perform any function entrusted to it under such procedure, or
(iv) The multiple claimants or the multiple respondents is/are unable to
appoint its/their respective arbitrator, any party may request the
appointing authority to appoint an arbitrator.
In making the appointment, the appointing authority shall summon the parties
and their respective counsel to appear before said authority on the date, time and
place set by it, for the purpose of selecting and appointing a sole arbitrator. If a
sole arbitrator is not appointed in such meeting, or the meeting does not take
place because of the absence of either or both parties despite due notice, the
appointing authority shall appoint the sole arbitrator.
(e) If the default appointment of an arbitrator is objected to by a party on whose
behalf the default appointment is to be made, and the defaulting party requests
the appointing authority for additional time to appoint his/her arbitrator, the
appointing authority, having regard to the circumstances, may give the requesting
party not more than thirty (30) days to make the appointment.
If the objection of a party is based on the ground that the party did not fail to choose and
appoint an arbitrator for the arbitral tribunal, there shall be attached to the objection the
appointment of an arbitrator together with the latter’s acceptance thereof and curriculum
vitae. Otherwise, the appointing authority shall appoint the arbitrator for that party.
(f) In making a default appointment, the appointing authority shall have regard to
such considerations as are likely to secure the appointment of an independent
and impartial arbitrator. In order to achieve speedy and impartial justice and to
moderate the cost of arbitration, in choosing an arbitrator, the appointing
authority shall give preference to a qualified person who has a place of residence
or business in the same general locality as the agreed venue of the arbitration
and who is likely to accept the arbitrator’s fees agreed upon by the parties, or as
fixed in accordance either with the internal guidelines or the Schedule of Fees
approved by the administering institution or by the appointing authority.
 (g) The appointing authority shall give notice in writing to the parties of the
appointment made or its inability to comply with the Request for Appointment and
the reasons why it is unable to do so, in which later case, the procedure
described under Article 5.5 (Court or Other Authority for Certain Functions of
arbitration Assistance and Supervision) shall apply.
(h) A decision on a matter entrusted by this Article to the appointing authority
shall be immediately executory and not subject to appeal or motion for
reconsideration. The appointing authority shall be deemed to have been given by
the parties discretionary authority in making the appointment but in doing so, the
appointing authority shall have due regard to any qualification or disqualification
of an arbitrator/s under paragraph (a) of Article 5.10 (Appointment of Arbitrators)
as well as any qualifications required of the arbitrator/s by the agreement of the
parties and to such considerations as are likely to secure the appointment of an
independent and impartial arbitrator.
(i) The chairman of the arbitral tribunal shall be selected in accordance with the
agreement of the parties and/or the rules agreed upon or, in default thereof, by
the arbitrators appointed.
(j) Any clause giving one of the agreement, if otherwise valid, shall be construed
as permitting the appointment of one (1) arbitrator by all claimants and one (1)
arbitrator by all respondents. The third arbitrator shall be appointed as provided
above.
If all the claimants or all the respondents cannot decide among themselves on an
arbitrator, the appointment shall be made for them by the appointing authority.
(k) The appointing authority may adopt Guidelines for the making of a Request
for Appointment.
(l) Except as otherwise provided in the Guidelines of the appointing authority, if
any, a Request for Appointment shall include, as applicable, the following:
(i) the demand for arbitration;
(ii) the name/s and curricula vitae of the appointed arbitrator/s;
(iii) the acceptance of his/her/its appointment of the appointed
arbitrator/s;
(iv) any qualification or disqualification of the arbitrator as provided in
the arbitration agreement;
(v) an executive summary of the dispute which should indicate the
nature of the dispute and the parties thereto;
(vi) principal office and officers of a corporate party;
(vii) the person/s appearing as counsel for the party/ies; and
(viii) information about arbitrator’s fees where there is an agreement
between the parties with respect thereto.
In institutional arbitration, the request shall include such further information or
particulars as the administering institution shall require.
(m) A copy of the Request for Appointment shall be delivered to the adverse
party. Proof of such delivery shall be included in, and shall form part of, the
Request for Appointment filed with the appointing authority.
(n) A party upon whom a copy of the Request for Appointment is communicated
may, within seven (7) days of its receipt, file with the appointing authority
his/her/its objection/s to the Request or ask for an extension of time, not
exceeding thirty (30) days from receipt of the request, to appoint an arbitrator or
act in accordance with the procedure agreed upon or provided by these Rules.
Within the aforementioned periods, the party seeking the extension shall provide the
appointing authority and the adverse party with a copy of the appointment of his/her
arbitrator, the latter’s curriculum vitae, and the latter’s acceptance of the appointment. In
the event that the said party fails to appoint an arbitrator within said period, the appointing
authority shall make the default appointment.
(o) An arbitrator, in accepting an appointment, shall include, in his/her
acceptance letter, a statement that:
(i) he/she agrees to comply with the applicable law, the arbitration rules
agreed upon by the parties, or in default thereof, these Rules, and the
Code of Ethics for Arbitrators in Domestic Arbitration, if any;
(ii) he/she accepts as compensation the arbitrator’s fees agreed upon
by the parties or as determined in accordance with the rules agreed
upon by the parties, or in default thereof, these Rules; and
(iii) he agrees to devote as much time and attention to the arbitration as
the circumstances may require in order to achieve the objective of a
speedy, effective and fair resolution of the dispute.
Article 5.11. Grounds for Challenge. (a) When a person is approached in connection with
his/her possible appointment as an arbitrator, he/she shall disclose any circumstance likely
to give rise to justifiable doubts as to his/her impartiality, independence, qualifications and
disqualifications. An arbitrator, from the time of his/her appointment and throughout the
arbitral proceedings, shall without delay, disclose any such circumstances to the parties
unless they have already been informed of them by him/her.
A person, who is appointed as an arbitrator notwithstanding the disclosure made in
accordance with this Article, shall reduce the disclosure to writing and provide a copy of
such written disclosure to all parties in the arbitration.
 (b) An arbitrator may be challenged only if:
(i) circumstances exist that give rise to justifiable doubts as to his/her
impartiality or independence;
(ii) he/she does not possess qualifications as provided for in this
Chapter or those agreed to by the parties;
(iii) he/she is disqualified to act as arbitration under these Rules;
(iv) he refuses to respond to questions by a party regarding the nature
and extent of his professional dealings with a party or its counsel.
(c) If, after appointment but before or during hearing, a person appointed to serve
as an arbitrator shall discover any circumstances likely to create a presumption of
bias, or which he/she believes might disqualify him/her as an impartial arbitrator,
the arbitrator shall immediately disclose such information to the parties.
Thereafter, the parties may agree in writing:
(i) to waive the presumptive disqualifying circumstances; or
(ii) to declare the office of such arbitrator vacant. Any such vacancy
shall be filed in the same manner the original appointment was made.
(d) After initial disclosure is made and in the course of the arbitration
proceedings, when the arbitrator discovers circumstances that are likely to create
a presumption of bias, he/she shall immediately disclose those circumstances to
the parties. A written disclosure is not required where it is made during the
arbitration and it appears in a written record of the arbitration proceedings.
(e) An arbitrator who has or has had financial or professional dealings with a
party to the arbitration or to the counsel of either party shall disclose in writing
such fact to the parties, and shall, in good faith, promptly respond to questions
from a party regarding the nature, extent and age of such financial or
professional dealings.
Article 5.12. Challenge Procedure. (a) The parties are free to agree on a procedure for
challenging an arbitrator, subject to the provisions of paragraph (c) of this Article.
(b) Failing such agreement, a party who intends to challenge an arbitrator shall,
within fifteen (15) days after becoming aware of the constitution of the arbitral
tribunal or after becoming aware of any circumstance referred to in paragraph (b)
of Article 5.11 (Grounds for Challenge), send a written statement of the reasons
for the challenge to the arbitral tribunal. Unless the challenged arbitrator
withdraws from his/her office or the other party agrees to the challenge, the
arbitral tribunal shall decide on the challenge.
(c) If a challenge under any procedure agreed upon by the parties or under the
procedure of paragraph (b) of this Article in not successful, the challenging party
may request the appointing authority, within thirty (30) days after having received
notice of the decision rejecting the challenge, to decide on the challenge, which
decision shall be immediately executory and not subject to appeal or motion for
reconsideration. While such a request is pending, the arbitral tribunal, including
the challenged arbitrator, may continue the arbitral proceedings and make an
award.
(d) If a request for inhibition is made, it shall be deemed as a challenge.
(e) A party may challenge an arbitrator appointed by him/her/it, or in whose
appointment he/she/it has participated, only for reasons of which he/she/it
becomes aware after the appointment has been made.
(f) The challenge shall be in writing and it shall state specific facts that provide
the basis for the ground relied upon for the challenge. A challenge shall be made
within fifteen (15) days from knowledge by a party of the existence of a ground
for a challenge or within fifteen (15) days from the rejection by an arbitrator of a
party’s request for his/her inhibition.
(g) Within fifteen (15) days of receipt of the challenge, the challenged arbitrator
shall decide whether he/she shall accept the challenge or reject it. If he/she
accepts the challenge, he/she shall voluntarily withdraw as arbitrator. If he/she
rejects it, he/she shall communicate, within the same period of time, his/her
rejection of the challenge and state the facts and arguments relied upon for such
rejection.
(h) An arbitrator who does not accept the challenge shall be given an opportunity
to be heard.
(i) Notwithstanding the rejection of the challenge by the arbitrator, the parties
may, within the same fifteen (15) day period, agree to the challenge.
(j) In default of an agreement of the parties to agree on the challenge thereby
replacing the arbitrator, the arbitral tribunal shall decide on the challenge within
thirty (30) days from receipt of the challenge.
(k) If the challenge procedure as agreed upon by the parties or as provided in this
Article is not successful, or a party or the arbitral tribunal shall decline to act, the
challenging party may request the appointing authority in writing to decide on the
challenge within thirty (30) days after having received notice of the decision
rejecting the challenge. The appointing authority shall decide on the challenge
within fifteen (15) days from receipt of the request. If the appointing authority
shall fail to act on the challenge within thirty (30) days from the date of its receipt
or within such further time as it may fix, with notice to the parties, the requesting
party may renew the request with the court.
The request made under this Article shall include the challenge, the reply or explanation of
the challenged arbitrator and relevant communication, if any, from either party, or from the
arbitral tribunal.
 (n) Every communication required or agreement made under this Article in
respect of a challenge shall be delivered, as appropriate, to the challenged
arbitrator, to the parties, to the remaining members of the arbitral tribunal and to
the institution administering the arbitration, if any.
(m) A challenged arbitrator shall be replaced if:
(i) he/she withdraws as arbitrator, or
(ii) the parties agree in writing to declare the office of arbitrator vacant,
or
(iii) the arbitral tribunal decides the challenge and declares the office of
the challenged arbitrator vacant, or
(iv) the appointing authority decides the challenge and declares the
office of the challenged arbitrator vacant, or
(v) in default of the appointing authority, the court decides the challenge
and declares the office of the challenged arbitrator vacant.
(n) The decision of the parties, the arbitral tribunal, the appointing authority, or in
proper cases, the court, to accept or reject a challenge is not subject to appeal or
motion for reconsideration.
(o) Until a decision is made to replace the arbitrator under this Article, the
arbitration proceeding shall continue notwithstanding the challenge, and the
challenged arbitrator shall continue to participate therein as an arbitrator.
However, if the challenge incident is raised before the court, because the parties,
the arbitral tribunal or appointing authority failed or refused to act within the
period provided in paragraphs (j) and (k) of this Article, the arbitration proceeding
shall be suspended until after the court shall have decided the incident. The
arbitration shall be continued immediately after the court has delivered an order
on the challenging incident. If the court agrees that the challenged arbitrator shall
be replaced, the parties shall immediately replace the arbitrator concerned.
(p) The appointment of a substitute arbitrator shall be made pursuant to the
procedure applicable to the appointment of the arbitrator being replaced.
Article 5.13. Failure or Impossibility to Act. (a) If an arbitrator becomes de jure or de
facto unable to perform his/her functions or for other reasons fails to act without undue
delay, his/her mandate terminates if he/she withdraws from his/her office or if the parties
agree on the termination. Otherwise, if a controversy remains concerning any of these
grounds, any party may request the appointing authority to decide on the termination of the
mandate, which decision shall be immediately executory and not subject to appeal or
motion for reconsideration.
(b) If, under this Article or Article 5.12 (Challenge Procedure), an arbitrator withdraws from
his/her office or a party agrees to the termination of the mandate of an arbitrator, this does
not imply acceptance Of the validity of any ground referred to in this Article 5.12.
Article 5.14. Appointment of Substitute Arbitrator. Where the mandate of an arbitrator
terminates under Articles 5.12 (Challenge Procedure) or 5.13 (Failure or Impossibility) or
because of his withdrawal from office for any other reason or because of the revocation of
his mandate by agreement of the parties or in any other case of termination of his/her
mandate, a substitute arbitrator shall be appointed according to the rules applicable to the
arbitrator being replaced.
RULE 4 – Jurisdiction of Arbitral Tribunal
Article 5.15 Competence of Arbitral Tribunal to Rule on its Jurisdiction. (a) When a
demand for arbitration made by a party to a dispute is objected to by the adverse party, the
arbitral tribunal shall, in the first instance, resolve the objection when made on any of the
following grounds:
(i) the arbitration agreement is in existent, void, unenforceable or not
binding upon a person for any reason, including the fact that the
adverse party is not privy to said agreement; or
(ii) the dispute is not arbitrable or is outside the scope of the arbitration
agreement; or
(iii) the dispute is under the original and exclusive jurisdiction of a court
or quasi-judicial body,
(b) If a party raises any of the grounds for objection, the same shall not preclude
the appointment of the arbitrator/s as such issue is for the arbitral tribunal to
decide.
The participation of a party in the selection and appointment of an arbitrator and
the filling of appropriate pleadings before the arbitral tribunal to question its
jurisdiction shall not be construed as a submission to the jurisdiction of the
arbitral tribunal or of a waiver of his/her/its right to assert such grounds to
challenge the jurisdiction of the arbitral tribunal or the validity of the resulting
award.
(c) The respondent in the arbitration may invoke any such grounds to question
before the court the existence, validity, or enforceability of the arbitration
agreement, or the propriety of the arbitration, or the jurisdiction of the arbitrator
and invoke the pendency of such action as ground for suspension of the
arbitration proceeding. The arbitral tribunal, having regard to the circumstances
of the case, and the need for the early and expeditious settlement of the dispute,
in light of the facts and arguments raised to question its jurisdiction, may decide
either to suspend the arbitration until the court has made a decision on the issue
or continue with arbitration.
(d) If a dispute is, under an arbitration agreement, to be submitted to arbitration,
but before arbitration is commenced or while it is pending, a party files an action
before the court which embodies or includes as a cause of action the dispute that
is to be submitted to arbitration the filling of such action shall not prevent the
commencement of the arbitration or the continuation of the arbitration until the
award is issued.
Article 5.16 Power of Arbitral Tribunal to Order Interim Measures. (a) Unless otherwise
agreed by the parties, the arbitral tribunal may, at the request of a party, order any party to
take such interim measures of protection as the arbitral tribunal may consider necessary in
respect of the subject matter of the dispute following the rules in this Article. Such interim
measures may include, but shall not be limited to preliminary injunction directed against a
party, appointment of receivers or detention preservation, inspection of property that is the
subject of the dispute in arbitration.
(b) After the constitution of the arbitral tribunal, and during arbitral proceedings, a
request for interim measures of protection, or modification thereof, shall be made
with the arbitral tribunal. The arbitral tribunal is deemed constituted when the sole
arbitrator or the third arbitrator, who has been nominated, has accepted the
nomination and written communication of said nomination and acceptance has
been received by the party making the request.
(c) The following rules on interim or provisional relief shall be observed:
(i) Any party may request that the provisional or interim relief be granted
against the adverse party.
(ii) Such relief may be granted:
(aa) To prevent irreparable loss or injury;
(bb) To provide security for the performance of an obligation;
(cc) To produce or preserve evidence; or
(dd) To compel any other appropriate act or omissions.
(iii) The order granting provisional relief may be conditioned upon the
provision of security or any act or omission specified in the order.
(iv) Interim or provisional relief is requested by written application
transmitted by reasonable means to the arbitral tribunal and the party
against whom relief is sought, describing in appropriate detail the
precise relief, the party against whom the relief is requested, the ground
for the relief and the evidence supporting the request.
(v) The order either granting or denying an application for interim relief
shall be binding upon the parties.
(vi) Either party may apply with the court for assistance in implementing
or enforcing an interim measure ordered by an arbitral tribunal.
(vii) A party who does not comply with the order shall be liable for all
damages, resulting from noncompliance, including all expenses, and
reasonable attorney’s fee paid in obtaining the order’s judicial
enforcement.
RULE 5 – Conduct of Arbitral Proceedings
Article 5.17. Equal Treatment of Parties. The parties shall be treated with equally and
each party shall be given a full opportunity of presenting his/her/its case.
Article 5.18 Determination of Rules of Procedure. (a) Subjected to the provisions of these
Rules, the parties are free to agree on the procedure to be followed by the arbitral tribunal
in conducting the proceedings.
(b) Failing such agreement, the arbitral tribunal may subject to the provision of
the ADR Act, conduct the arbitration in such manner as it considers appropriate.
The power conferred upon the arbitral tribunal includes the power to determine
admissibility, relevance, materially and weight of evidence.
Article 5.19 Place of Arbitration. (a) The parties are free to agree on the place of
arbitration. Failing such agreement, the place of arbitration shall be in Metro Manila unless
the arbitral tribunal, having regard to the circumstances of the case, including the
convenience of the parties, shall decide on a different place of arbitration.
(b) The arbitral tribunal may, unless otherwise agreed by the parties, meet at any
place it considers appropriate for consultation among its members, for hearing
witnesses, experts or the parties, or for inspection of goods, other property or
documents.
Article 5.20 Commencement of Arbitral Proceedings (a) Where there is a prior arbitration
agreement between the parties, arbitration is deemed commenced as follows:
(i) In institutional arbitration is commenced in accordance with the
arbitration rules of the institution agreed upon by the parties.
(ii) In ad hoc arbitration, arbitration is commenced by the claimant upon
delivering to the respondent a demand for arbitration. A demand may
be in any form stating:
(aa) the name, address and description of each of the parties;
(bb) a description of the nature and circumstances of the
dispute giving rise to the claim;
(cc) a statement of the relief sought, including the amount of
the claim;
(dd) the relevant agreements, if any, including the arbitration
agreement, a copy of which shall be attached; and
(ee) appointment of arbitrators and / or demand to appoint.
(b) If the arbitration agreement provides for the appointment of a sole arbitrator,
the demand shall include an invitation of the claimant to the respondent to meet
 and agree upon such arbitrator, the place, time and date stated therein which
shall not be less than thirty (30) days from receipt of the demand.
(c) If the arbitration agreement provides for the establishment of an arbitral
tribunal of three (3) arbitrators, the demand shall name the arbitrator appointed
by the claimant. It shall include the curriculum vitae of the arbitrator appointed by
the claimant and the latter’s acceptance of the appointment.
(d) Where there is no prior arbitration agreement, arbitration may be initiated by
one party through a demand upon the other to submit their dispute to arbitration.
Arbitration shall be deemed commenced upon the agreement by the other party
to submit the dispute to arbitration.
(e) The demand shall required the respondent to name his/her/its/ arbitrator
within a period which shall not be less than fifteen (15) days from receipt of the
demand. This period may be extended by agreement of the parties. Within said
period, the respondent shall give a written notice to the claimant of the
appointment of the respondent’s arbitrator and attach to the notice the arbitrator’s
curriculum vitae and the latter’s acceptance of the appointment.
Article 5.21 Language (a) The parties are free to agree on the language or languages to
be used in the arbitral proceedings. Failing such agreement, the language to be used shall
be English or Filipino. The language/s agreed, unless otherwise specified therein, shall be
in all hearings and all written statements, orders or other communication by the parties and
the arbitral tribunal.
(b) The arbitral tribunal may order that any documentary evidence shall be
accompanied by a translation into the language or languages agreed upon by the
parties in accordance with paragraph (a) of this Article.
Article 5.22 Statement of Claim and Defense (a) Within the period of time agreed by the
parties or determined by the arbitral tribunal, the claimant shall state the facts supporting
his/her/its claim, the points at issue and the relief or remedy sought, and the respondent
shall state his/her defense in respect of these particulars, unless the parties may have
otherwise agreed as to the required elements of such statements. The parties may submit
with their statements all documents they consider to be relevant or may add a reference to
the documents or other evidence they will submit.
(b) Unless otherwise agreed by the parties, either party may amend or
supplement his/her/its claim or defense during the course of the arbitral
proceedings, unless the arbitral tribunal considers it inappropriate to allow such
amendments having regard to the delay in making it.
Article 5.23 Hearing and Written Proceedings (a) In ad hoc arbitration, the procedure
determined by the arbitrator, with the agreement of the parties, shall be followed. In
institutional arbitration, the applicable rules of procedure of the arbitration institution shall
be followed. In default of agreement of the parties, the arbitration procedure shall be as
provided in this Chapter.
(b) Within thirty (30) days from the appointment of the arbitrator or the
constitution of an arbitral tribunal, the arbitral tribunal shall call the parties and
their respective counsels to a pre-hearing conference to discuss the following
matters:
(i) The venue or place/s where the arbitration proceeding may be
conducted in an office space, a business center, a function room or any
suitable place agreed upon by the parties and the arbitral tribunal,
which may vary per session/hearing/conference;
(ii) The manner of recording the proceedings;
(iii) The periods for the communication of the statement of claims with
or without counterclaims, and answer to the counterclaim/s and the
form and contents of such pleadings.
(iv) The definition of the issues submitted to the arbitral tribunal for
determination and the summary of the claims and counterclaims of the
parties;
(v) The manner by which evidence may be offered if an oral hearing is
required, the submission of sworn written statements in lieu of oral
testimony, the cross-examination and further examination of witnesses;
(vi) The delivery of certain types of communications such as pleadings,
terms of reference, order granting interim relief, final award and the like
that, if made by electronic or similar means, shall require further
confirmation in the form of a hard copy or hard copies delivered
personally or by registered post.
(vii) The issuance of subpoena or subpoena duces tecum by the arbitral
tribunal to compel the production of evidence if either party shall or is
likely to request it;
(viii) The manner by which expert testimony will be received if a party
will or is likely to request the arbitral tribunal to appoint one or more
experts, and in such case, the period for the submission to the arbitrator
by the requesting party of the proposed terms of reference for the
expert, the fees to be paid, the manner of payment to the expert and
the deposit by the parties or the requesting party of such amount
necessary to cover all expenses associated with the referral of such
issues to the expert before the expert is appointed;
(ix) The possibility of either party applying for an order granting interim
relief either with arbitral tribunal or with the court, and, in such case, the
nature of the relief to be applied for;
(x) The possibility of a site or ocular inspection, the purpose of such
inspection, and in such case, the date, place and time of the inspection
and the manner of conducting it, and the sharing and deposit of any
associated fees and expenses;
 (xi) The amount to be paid to the arbitral tribunal as fees and the
associated costs, charges and expenses of arbitration and the manner
and timing of such payments; and
(xii) Such other relevant matters as the parties and the arbitral tribunal
may consider necessary to provide for a speedy and efficient arbitration
of the dispute.
(c) To the extent possible, the arbitral tribunal and the parties shall agree upon
any such matters and in default of agreement, the arbitral tribunal shall have the
discretion and authority to make the decision, although in making decision,
regard shall be given to the views expressed by both parties.
(d) The arbitral tribunal shall, in consultation with the parties, fix the date/s and
the time of hearing, regard being given to the desirability of conducting and
concluding an arbitration without undue delay.
(e) The hearing set shall not be postponed except with the conformity of the
arbitrator and the parties and only for a good and sufficient cause. The arbitral
tribunal may deny a request to postpone or to cancel a scheduled hearing on the
ground that a party has requested or is intending to request from the court or
from the arbitrator an order granting interim relief.
(f) A party may, during the proceedings, represent himself/herself/itself or through
a representative, at such hearing.
(g) The hearing may proceed in the absence of a party who fails to obtain an
adjournment thereof or who, despite due notice, fails to be present, by
himself/herself/itself or through a representative, at such hearing.
(h) Only parties, their respective representatives, the witnesses and the
administrative staff of the arbitral tribunal shall have the right to be present if the
parties, upon being informed of the presence of such person and the reason for
his/her presence, interpose no objection thereto.
(i) Issues raised during the arbitration proceeding relating to (a) the jurisdiction of
the arbitral tribunal over one or more of the claims or counter claims, or (b) the
arbitrability of a particular claim or counter claim, shall be resolved by the arbitral
tribunal as threshold issues, if the parties so request, unless they are intertwined
with factual issues that they cannot be resolved ahead of the hearing on the
merits of the dispute.
(j) Each witness shall, before giving testimony, be required to take an oath/
affirmation before the arbitral tribunal, to tell the whole truth and nothing but the
truth during the hearing.
(k) The arbitral tribunal shall arrange for the transcription of the recorded
testimony of each witness and require each party to share the cost of recording
and transcription of the testimony of each witness.
(l) Each party shall provide the other party with a copy of each statement or
document submitted to the arbitral tribunal and shall have an opportunity to reply
in writing to the other party's statements and proofs.
(m) The arbitral tribunal may require the parties to produce such other documents
or provide such information as in its judgment would be necessary for it to render
a complete, fair and impartial award.
(n) The arbitral tribunal shall receive as evidence all exhibits submitted by a party
properly marked and identified at the time of submission.
(o) At the close of the hearing, the arbitral tribunal shall specifically inquire of all
parties whether they have further proof or witnesses to present; upon receiving a
negative reply, the arbitral tribunal shall declare the hearing closed.
(p) After a hearing is declared closed, no further motion or manifestation or
submission may be allowed except for post-hearing briefs and reply briefs that
the parties have agreed to submit within a fixed period after the hearing is
declared closed, or when the arbitral tribunal, motu proprio or upon request of a
party, allows the reopening of the hearing.
(q) Decisions on interlocutory matters shall be made by the sole arbitrator or by
the majority of the arbitral tribunal. The arbitral tribunal may authorized its
chairman to issue or release, on behalf of the arbitral tribunal, its decision on
interlocutory matters.
(r) Except as provide in section 17 (d) of the ADR Act. No arbitrator shall act as a
mediator in a any proceeding in which he/she is acting as arbitrator even if
requested by the parties; and all negotiations.
(s) Before assuming the duties of his/her office, an arbitrator must be sworn by
any officer authorized by law to administer an oath or be required to make an
affirmation to faithfully and fairly hear and examine the matters in controversy
and make a just award according to the best his/her ability and understanding. A
copy of the arbitrator's oath or affirmation shall be furnished each party to the
arbitration.
(t) Either party may object to the commencement or continuation of an arbitration
proceeding unless the arbitrator takes an oath or affirmation as required in this
chapter. If the arbitrator shall refuse to take an oath or affirmation as required by
law and this rule, he/she shall be replaced. The failure to object to the absence of
an oath or affirmation shall be deemed a waiver of such objection and the
proceedings shall continue in due course and may not later be used as a ground
to invalidate the proceedings.
(u) the arbitral tribunal shall have the power to administer oaths to, or require
affirmation from, all witnesses directing them to tell the truth, the whole truth and
nothing but the truth in any testimony, oral or written, which they may give or offer
in any arbitration hearing. The oath or affirmation shall be required of every
witness before his/her testimony, oral or written, is heard or considered.
 (v) the arbitral tribunal shall have the power to required any person to attend a
hearing as a witness. It shall have the power to subpoena witnesses, to testify
and/or produce documents when the relevancy and materiality thereof has been
shown to the arbitral tribunal. The arbitral tribunal may also require the exclusion
of any witness during the testimony of any other witness. Unless the parties
otherwise agree, all the arbitrators in any controversy must attend all the
hearings and hear the evidence of the parties.
Article 5.24 Power of Arbitral Tribunal to Order Interim Muslim. ( a ) unless otherwise
agreed by the parties, the arbitral tribunal may, at the request of a party and in accordance
with the this Article, order any party to take such interim measures of protection as the
arbitral tribunal may consider necessary in respect of the subject matter of the dispute of
the procedure, Such interim measures may include, but shall not be limited, to preliminary
injunction directed against a party, appointment of receivers or detention of property that is
the subject of the dispute in arbitration or its preservation or inspection.
(b) After the constitution of the arbitral tribunal, and during the arbitration
proceedings, a request for interim measures of protection, or modification
thereof, may be made with the arbitral tribunal. The arbitral tribunal is deemed
constituted when the sole arbitrator or the third arbitrator, who has been
nominated, has accepted the nomination and written communication of said
nomination and acceptance has been received by the party making the request.
(c) The following rules on interim or provisional relief shall be observed:
(i) Any party may request that provisional or interim relief be granted
against the adverse party.
(ii) Such relief may be granted:
(aa) To prevent irreparable loss or injury;
(bb) To provide security for the performance of an obligation;
(cc) To produce or preserve evidence; or
(dd) To compel any other appropriate act or omissions.
(iii) The order granting provisional relief may be conditioned upon the
provision of security or any act or omission specified in the order.
(iv) Interim provisional relief is requested by written application
transmitted by reasonable means to the arbitral tribunal and the party
against whom relief is sought, describing in appropriate detail of the
precise relief, the party against whom relief is requested the ground for
the relief, and the evidence supporting the request.
(v) The order either granting or denying an application for interim relief
shall be binding upon the parties.
(vi) Either party may apply with the court for assistance in implementing
or enforcing an interim measure ordered by an arbitral tribunal.
(vii) A party who does not comply with the order shall be liable for all
damages, resulting from noncompliance, including all expenses, and
reasonably attorney’s fees, paid in obtaining the order’s judicial
enforcement.
(d) The arbitral tribunal shall be have the power at any time, before rendering the
award, without prejudice to the rights of any party to petition the court to take
measures to safeguard an/or conserve any matter which is the subject of the
dispute in arbitration.
Article 5.25. Default of a Party. Unless otherwise agreed by the parties, if, without showing
sufficient causes.
(a) the claimant fails to communicate his/her/its statement of claim in accordance
with paragraph (a) of Article 5.22(Statement of Claim and Defense), the arbitral
tribunal shall terminate the proceedings;
(b) ]the respondent fails to communicate his/her/its statement of defense in
accordance with paragraph (a) of Article 5.22 (Statements of Claim and
Defense), the arbitral tribunal shall continue the proceedings without treating
such failure in itself as an admission of the claimant’s allegations;
(c) any party fails to appear at a hearing or to produce documentary evidence,
the arbitral tribunal may continue the proceedings and make the award based on
the evidence before it.
Article 5.26. Expert Appointed by the Arbitral Tribunal. (a) Unless otherwise agreed by the
parties, the arbitral tribunal,
(i) may appoint one or more experts to report to it on specific issues to
be determined by the arbitral tribunal; or
(ii) may require a party to give the expert any relevant information or to
produce, or to provide access to, any relevant documents, goods or
other property for his/her inspection.
(b) Unless otherwise agreed by the parties, if a party so request or if the arbitral
tribunal considers it necessary, the expert shall, after delivery of his/her written or
oral report, participate in a hearing where the parties have the opportunity to put
questions to him/her and to present expert witnesses in order to testify on the
points at issue.
(c) upon agreement of the parties, the finding of the expert engaged by the
arbitral tribunal on the matter/s referred to him shall be binding upon the parties
and the arbitral tribunal.
Article 5.27. Court Assistance in Taking Evidence and Other Matters. (a) The arbitral
tribunal or a party, with the approval of the arbitral tribunal may request from a court,
assistance in taking evidence such as the issuance of subpoena ad testificandum and
subpoena duces tecum, deposition taking, site or ocular inspection, and physical
examination of properties. The court may grant the request within its competence and
according to its rules on taking evidence.
(b) The arbitral tribunal or a party to the dispute interested in enforcing an order
of the arbitral tribunal may request from a competent court, assistance in
enforcing orders of the arbitral tribunal, including but not limited, to the following:
(i) Interim or provision relief;
(ii) Protective orders with respect to confidentiality;
(iii) Orders of the arbitral tribunal pertaining to the subject matter of the
dispute that may affect third persons and/or their properties; and/or
(iv) Examination of debtors.
Article 5.28 Rules Applicable to the Substance of Dispute. (a) The arbitral tribunal shall
decide the dispute in accordance with such law as is chosen by the parties, In the absence
of such agreement, Philippine law shall apply.
(b) The arbitral tribunal may grant any remedy or relief which it deems just and
equitable and within the scope of the agreement of the parties, which shall
include, but not be limited to, the specific performance of a contract.
(c) In all cases, the arbitral tribunal shall decide in accordance with the terms of
the contract and shall take into account the usages of the trade applicable to the
transaction.
Article 5.29. Decision Making by the Arbitral Tribunal. (a) The arbitration proceedings with
more than one arbitrator, any decision of the arbitral tribunal shall be made, unless
otherwise agreed by the parties, by a majority of all its members, However questions of
procedure may be decided by the chairman of the arbitral tribunal, if so authorized by the
parties or all members of the arbitral tribunal.
(b) Unless otherwise agreed upon by the parties, the arbitral tribunal shall render
its written award within thirty (30) days after the closing of all hearings and/or
submission of the parties’ respective briefs or if the oral hearings shall have been
waived, within thirty(30) days after the arbitral tribunal shall have declared such
proceedings in lieu of hearing closed. This period may be further extended by
mutual consent of the parties.
Article 5.30 Settlement. (a) if, during arbitral proceedings, the parties settle the dispute,
the arbitral tribunal, record the settlement in the form of an arbitral award on agreed terms,
consent award or award based on compromise.
(b) An award as rendered above shall be made in accordance with the provisions
of Article 5.31 (Form and Contents of Award) and shall state that it is an award.
Such an award has the same status and effect as any other award on the merits
of the case.
Article 5.31. Form and Contents of Award. (a) The award shall be made in writing and
shall be signed by the arbitral tribunal. In arbitration proceedings with more than one
arbitrator, the signatures of the majority of all members of the arbitral tribunal shall suffice,
provided that the reason for any omitted signature us stated.
(b) The award shall state the reasons upon which is based, unless the parties
have agreed that no reasons are to be given or the award on agreed terms,
consent award based on compromise under Article 5.30 (Settlement).
(c) The award shall state its date and the placed of arbitration as determined in
accordance with the paragraph (a) of Article 5.19 (Place of Arbitration). The
award shall be deemed to have made at that place.
(d) After the award is made, a copy signed by the arbitrators in accordance with
the paragraph (a) of this Article shall be delivered to each party.
(e) The award of the arbitral tribunal need not be acknowledged, sworn to under
oath, or affirmed by the arbitral tribunal unless so required on writing by the
parties. If despite such requirement, the arbitral tribunal shall fail to do as
required, the parties may, within thirty days from the receipt of said award,
request the arbitral tribunal to supply the omission. The failure of the parties to
make an objection or make such request within the said period shall be deemed
a waiver or such requirement and may no longer be raised as a ground to
invalidate the award.
Article 5.32. Termination of Proceedings. (a) The arbitration proceedings are terminated
by the final award or by an order of the arbitral tribunal in accordance with paragraph (b) of
this Article.
(b) The arbitral tribunal shall issue an order for the termination of the arbitration
proceedings when:
(i) The claimant withdraws his claim, unless the respondents objects
thereto for the purpose of prosecuting his counterclaims in the same
proceedings of the arbitral tribunal recognizes a legitimate interest on
his part in obtaining a final settlement of the dispute; or
(ii) The parties agree on the termination of the proceedings; or
(iii) The arbitral tribunal finds that the continuation of the proceedings
has for any other reason before unnecessary or impossible; or
(iv) The required deposits are not paid in full in accordance with
paragraph (d) of Article 5.46 (Fees and Costs).
 (c) The mandate of the arbitral tribunal ends with the termination of the arbitration
proceedings, subject to the provisions of Article 5.33 (Correction and
Interpretation of Award) and Article 5.34 (Application for Settings Aside in
Exclusive Recourse Against the Arbitral Award).
(d) Except as otherwise provided in the arbitration agreement, no motion for
reconsideration correction and interpretation of award or additional award shall
be with the arbitral tribunal. The arbitral tribunal, by releasing its final award,
loses jurisdiction over the dispute and the parties to the arbitral tribunal, by
releasing its final award, loses jurisdiction over the dispute and the parties to the
arbitration. However, where is shown that the arbitral tribunal failed to resolved
an issue. Submitted to him or determination a verified motion to complete a final
award may be made within thirty(30) days from its receipt.
(e) Notwithstanding the foregoing, the arbitral tribunal may for special reason,
reserved in the final award in order a hearing to quantity costs and determine
which party shall bear the costs or apportionment thereof as may be determined
to be a equitable. Pending determination of this issue, the award shall not be
deemed final for purposes of appeal, vacations, correction, or any post-award
proceedings.
Article 5.33. Correction and Interpretation of Award, Additional Award. (a) Within thirty (30)
days from receipt of the award, unless another period of time has been agreed upon by the
parties.
(i) A party may, with notice to the other party, the arbitral tribunal to
correct in the awards any errors in computation, any clerical or
typographical errors or any errors similar nature
(ii) If so agreed by the parties, with notice to the other party, may
request the arbitral tribunal to give an interpretation of a specific point or
part of the award.
If the arbitral tribunal considers the request to be justified, it shall make the
connection or give the interpretation within thirty (30) days from receipt of the
request. The interpretation shall form part of the award.
(b) The arbitral tribunal may correct any errors of the type referred to in
paragraph (a) of this Article on its own initiative within thirty (30) days of the date
of the award.
(c) Unless otherwise agreed by the parties, a party may, with notice to the other
party, may request within thirty (30) days of receipt of the award, the arbitral
tribunal to make an additional award as to claims presented in the arbitral
proceedings but omitted from the award., If the arbitral tribunal considers the
request to be justified, it shall make the additional award within sixty (60) days.
(d) The arbitral tribunal may extend, if necessary, the period of time within which
it shall make a correction, interpretation or an additional award under paragraphs
(a) and (c) of this Article.
(e) The provisions of Article 5.31 (Form and Contents of Award) shall apply to a
correction or interpretation of the award to an additional award.
Article 5.34. Application for Setting Aside an Exclusive Recourse against Arbitral
Award. The court when asked to set aside an award, may, where appropriate and so
requested by a party, suspend the setting aside proceedings for a period of time
determined by it in order to give the arbitral tribunal an opportunity to resume the arbitral
proceedings or to take such other action as in the arbitral tribunal’s opinion will eliminate
the grounds for setting aside an award.
Article 5.35. Grounds to Vacate an Arbitral Award. (a) The arbitral award may be
questioned, vacated or set aside by the appropriate court in accordance with the Special
ADR Rules only on the following grounds:
(i) The arbitral award was procured by corruption, fraud or other undue
means; or
(ii) There was evident partially or corruption in the arbitral tribunal or
any of its members; or
(iii) The arbitral tribunal was guilty of misconduct or any form of
misbehavior that has materially prejudiced the rights of any party such
as refusing to postpone the hearing upon sufficient cause shown or to
hear evidence pertinent and material to the controversy; or
(iv) One or more of the arbitrators was disqualified to act as such under
this Chapter and willfully refrained from disclosing such disqualification ;
or
(v) The arbitral tribunal exceeded its powers, or so imperfectly executed
them, such that a complete, final and definite award upon the subject
matter submitted to it was not made.
Any other ground raised to question, vacate or set aside the arbitral award shall
be disregarded by the court.
(b) Where a petition to vacate or set aside an award is filed, the petitioner may
simultaneously, or the oppositor may in the alternative, petition the court to remit
the case to the same arbitral tribunal for the purpose of making a new or revised
final and definite award or to direct a new hearing before the same or new arbitral
tribunal, the members of which shall be chosen in the manner originally provided
in the arbitration agreement or submission. In the latter case, any provision
limiting the time In which the arbitral tribunal may make a decision shall be
deemed applicable to the new arbitral tribunal and to commence from the date of
the court’s order.
(c) Where a party files a petition with the court to vacate or set aside an award by
reason of omission/s that do not affect the merits of the case and may be cured
or remedied, the adverse party may oppose that petition and instead request the
court to suspend the vacation or setting aside the proceedings for a period of
 time to give the arbitral tribunal an opportunity to cure or remedy the award or
resume the arbitration proceedings or take such other action as will eliminate the
grounds for vacation or setting aside.
RULE 6 – Recognition and Enforcement of Awards
Article 5.36. Confirmation of Award. The party moving for an order confirming, modifying,
correcting, or vacating an award, shall, at the time that such motion is filled with the court
for the entry of judgment thereon, also file the original or verified copy of the award, the
arbitration or settlement agreement, and such papers as may be required by the Special
ADR Rules.
Article 5.37. Judgment. Upon the grant of an order confirming, modifying or correcting an
award, judgment may be entered in conformity therewith in the court where said
application is filed. Costs of the application and the proceedings subsequent thereto may
be awarded by the court In its discretion. If awarded, the amount thereof must be included
in the judgment. Judgment will be enforced like court judgments.
Article 5.38. Appeal. A decision of the court confirming, vacating, setting aside, modifying
or correcting an arbitral award may be appealed to the Court of Appeals in accordance
with Special ADR Rules.
The losing party who appeals from the judgment of the Court confirming an arbitral award
shall be required by the Court of Appeals to post a counter-bond executed in favor of the
prevailing party equal to the amount of the award in accordance with the Special ADR
Rules.
Article 5.39. Venue and Jurisdiction. Proceedings for recognition and enforcement of an
arbitration agreement or for vacation or setting aside of an arbitral award, and any
application with a court for arbitration assistance and supervision, except appeal, shall be
deemed as special proceedings and shall be filed with the court
(a) where the arbitration proceedings are conducted;
(b) where the asset to be attached or levied upon, or the act to be enjoined is
located;
(c) where any of the parties to the dispute resides or has its place of business; or
(d) in the National Capital Judicial Region at the option of the applicant.
Article 5.40. Notice of Proceedings to Parties. In a special proceeding for recognition and
enforcement of an arbitral award, the court 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
party’s last known address. The notice shall be sent in at least fifteen (15) days before the
date set for the initial hearing of the application.
Article 5.41. Legal Representation in Domestic Arbitration. (a) In domestic arbitration
conducted in the Philippines, a party may be represented by any person of his/her/its
choice: Provided, that such representative, unless admitted to the practice of law in the
Philippines, shall not be authorized to appear as counsel in any Philippine Court, or any
other quasi-judicial body whether or such appearance is in relation to the arbitration in
which he/she appears.
(b) No arbitrator shall act as mediator in any proceeding in which he/she is acting
as arbitrator and all negotiations towards settlement of the dispute must take
without the presence of the arbitrators.
Article 5.42. Confidentially of Arbitration Proceedings. The arbitration proceedings,
including the records, evidence and the arbitral award and other confidential information,
shall be considered privileged and confidential and shall not be published except –
(1) with consent of the parties; or
(2) for the limited purpose of disclosing to the court relevant documents in cases
where resort to the court is allowed herein:
Provided, however, that the court in which the action or the appeal is pending may issue a
protective order to prevent or prohibit disclosure of documents or information containing
secret processes, developments, research and other information where it is shown that the
applicant shall be materially prejudiced by an authorized disclosure thereof.
Article 5.43. Death of a Party. Where a party dies after making a submission or a contact
to arbitrate as prescribed in these Rules, the proceeding may be begun or continued upon
the application of, or notice to, his/her executor or administrator, or to temporary
administrator of his/her estate. In any such case, the court may issue an order extending
the time within which notice of a motion to recognize or vacate an award must be served.
Upon recognizing an award, where a party has died since it was filed or delivered, the
court must enter judgment in the name of the original party; and the proceedings
thereupon are the same as where a party dies after a verdict.
Article 5.44. Multi-Party Arbitration. (a)When a single arbitration involves more than two
parties, these Rules, to the extent possible, shall be used subject to such modifications
consistent with Articles 5.17 (Equal Treatment of Parties) and 5.18 (Determination of Rules
of Procedure) as the arbitral tribunal shall deem appropriate to address possible
complexities of a multi-party arbitration. (b) When a claimant includes persons who are not
parties to or otherwise bound by the arbitration agreement , directly or by reference,
between him/her and the respondent as additional claimants or the additional respondents
unless not later than the date communicating his/her answer to the request for arbitration,
either by motion or by a special defense in his answer, he objects, on jurisdictional
grounds, to the inclusion of such additional respondents. The additional respondents shall
be deemed to have consented to their inclusion in the arbitration unless, not later than the
date of communicating their answer to the request for arbitration, wither by motion or a
special defense in their answer, they object, on jurisdictional grounds, to their inclusion.
Article 5.45. Consolidation of Proceedings and Concurrent Hearings. The parties may
agree that-
(a) the arbitration proceedings shall be consolidated with other arbitration
proceedings; or
 (b) that concurrent hearings shall be held, on such terms as may be agreed.
Unless the parties agree to confer such power on the arbitral tribunal, the tribunal has no
power to order consolidation of arbitration proceedings or concurrent hearings.
Article 5.46. Fees and Costs. (a) The fees of the arbitrators shall be agreed upon by the
parties and the arbitrator/s in writing prior to the arbitration.
In default of agreement of the parties as to the amount and manner of payment of
arbitrator’s fees, the arbitrator’s fees shall be determined in accordance with the applicable
internal rules of the regular arbitration institution under whose rules he arbitration is
conducted; or in ad hoc arbitration, the Schedule of Fees approved by the IBP, If any, or in
default thereof, the Schedule of Fees that may be approved by the OADR.
(b) In addition to arbitrator’s fees, the parties shall be responsible for the payment
of the administrative fees of an arbitration institution administering an arbitration
and cost of arbitration. The latter shall include, as appropriate, the fees of an
expert appointed by the arbitral tribunal, the expenses for conducting a site
inspection, the use of a room where arbitration proceedings shall be or have
been conducted, the expenses for the recording and transcription of the
arbitration proceedings.
(c) The arbitral tribunal shall fix the costs of arbitration in its award. The term
"costs" include only:
(i) The fees of the arbitral tribunal to be stated separately as to each
arbitrator and to be fixed by the arbitral tribunal itself in accordance with
this Article;
(ii) The travel and other expenses incurred by the arbitrators;
(iii) The costs of expert advice and of other assistance required by the
arbitral tribunal, such as site inspection and expenses for the recording
and transcription of the arbitration proceedings;
(iv) The travel and other expenses of witnesses to the extent such
expenses are provided by the arbitral tribunal;
(v) The costs for legal representation and assistance of the successful
party if such costs were claimed during the arbitral proceedings, and
only to the extent that the arbitral tribunal determines that the amount of
such costs is reasonable;
(vi) Any fees and expenses of the appointing authority.
(d) The fees of the arbitral tribunal shall be reasonable in amount, taking into
account the amount in dispute, the complexity of the subject matter, the time
spent by the arbitrators and any other relevant circumstances of the case.
If an appointing authority has been agreed upon by the parties and if such
appointing authority has issued a schedule of fees for arbitrators in domestic
cases which it administers, the arbitral tribunal, in fixing its fees shall take that
schedule of fees into account to the extent that it considers appropriate in the
circumstances of the case.
If such appointing authority has not issued a schedule of fees for arbitrators in
international cases, any party may, at any time request the appointing authority to
furnish a statement setting forth the basis for establishing fees which is
customarily followed in international cases in which the authority appoints
arbitrators. If the appointing authority consents to provide such a statement, the
arbitral tribunal, in fixing its fees shall take such information into account to the
extent that it considers appropriate in the circumstances of the case.
In cases referred to in paragraph (d) of this Article, when a party so requests and
the appointing authority consents to perform the function, the arbitral tribunal
shall fix its fees only after consultation with the appointing authority which may
make any comment it deems appropriate to the arbitral tribunal concerning the
fees.
(e) Except as provided in the next paragraph, the costs of arbitration shall, in
principle, be borne by the unsuccessful party. However, the arbitral tribunal may
apportion each of such costs between the parties if it determines that
apportionment is reasonable, taking into account the circumstances of the case.
With respect to the costs of legal representation and assistance referred to in
paragraph (c) (iii) of this Article, the arbitral tribunal, taking into account the
circumstances of the case, shall be free to determine which party shall bear such
costs or may apportion such costs between the parties if it determines that
appointment is reasonable.
When the arbitral tribunal issues an order for the termination of the arbitral
proceedings or makes an award on agreed terms, it shall fix the costs of
arbitration referred to in paragraph (a) of this Article in the context of that order or
award.
(e) Except as otherwise agreed by the parties, no additional fees may be charged
by the arbitral tribunal for interpretation or correction or completion of its award
under these Rules.
(f) The arbitral tribunal, on its establishment, may request each party to deposit
an equal amount as an advance for the costs referred to in paragraphs (i), (ii) and
(iii) of paragraph (c) of this Article.
During the course of the arbitral proceedings, the arbitral tribunal may request
supplementary deposits from the parties.
If an appointing authority has been agreed upon by the parties, and when a party so
requests and the appointing authority consents to perform the function, the arbitral tribunal
shall fix the amounts of any deposits or supplementary deposits only after consultation with
the appointing authority which may make any comments to the arbitral tribunal which it
deems appropriate concerning the amount of such deposits and supplementary deposits.
If the required deposits are not paid in full within thirty (30) days after receipt of the
request, the arbitral tribunal shall so inform the parties in order that one of them may make
the required payment within such a period or reasonable extension thereof as may be
determined by the arbitral tribunal. If such payment is not made, the arbitral tribunal may
order the termination of the arbitral proceedings.
After the award has been made, the arbitral tribunal shall render an accounting to the
parties of the deposits received and return any unexpended balance to the parties.
CHAPTER 6
ARBITRATION OF CONSTRUCTION DISPUTES
The Construction Industry Arbitration Commission (CIAC), which has original and exclusive
jurisdiction over arbitration of construction disputes pursuant to Executive Order No. 1008,
s. 1985, otherwise known as the "Construction Industry Arbitration Law", shall promulgate
the Implementing Rules and Regulations governing arbitration of construction disputes,
incorporating therein the pertinent provisions of the ADR Act.
CHAPTER 7
OTHER ADR FORMS
RULE 1 – General Provisions
Article 7.1. Scope of Application and General Principles. Except as otherwise agreed, this
Chapter shall apply and supply the deficiency in the agreement of the parties for matters
involving the following forms of ADR:
(a) early neutral evaluation;
(b) neutral evaluation;
(c) mini-trial;
(d) mediation-arbitration;
(e) a combination thereof; or
(f) any other ADR form.
Article 7.2. Applicability of the Rules on Mediation. If the other ADR form/process is more
akin to arbitration (i.e., the neutral third-person merely assists the parties in reaching a
voluntary agreement), Chapter 3 governing Mediation shall have suppletory application to
the extent that it is not in conflict with the agreement of the parties or this Chapter.
Article 7.3. Applicability of the Rules on Arbitration. If the other ADR form/process is more
akin to arbitration (i.e., the neutral third-person has the power to make a binding resolution
of the dispute), Chapter 5 governing Domestic Arbitration shall have suppletory application
to the extent that it is not in conflict with the agreement of the parties or this Chapter.
Article 7.4. Referral. If a dispute is already before a court, either party may, before and
during pre-trial, file a motion for the court to refer the parties to other ADR
forms/processes. However, at any time during court proceedings, even after pre-trial, the
parties may jointly move for suspension/dismissal of the action pursuant to Article 2030 of
the Civil Code of the Philippines.
Article 7.5. Submission of Settlement Agreement. Either party may submit to the court
before which the case is pending any settlement agreement following a neutral or an early
neutral evaluation, mini-trial or mediation-arbitration.
RULE 2 – Neutral or Early Neutral Evaluation
Article 7.6. Neutral or Early Neutral Evaluation. (a) The neutral or early neutral evaluation
shall be governed by the rules and procedure agreed upon by the parties. In the absence
of said agreement, this Rule shall apply.
(b) If the parties cannot agree on, or fail to provide for:
(i) The desired qualification of the neutral third person;
(ii) The manner of his/her selection;
(iii) The appointing authority (not IBP) who shall have the authority to
make the appointment of a neutral third person; or
(iv) If despite agreement on the foregoing and the lapse of the period of
time stipulated for the appointment, the parties are unable to select a
neutral third person or appointing authority, then, either party may
request the default appointing authority, as defined under paragraph C1
of Article (Definition of Terms), to make the appointment taking into
consideration the nature of the dispute and the experience and
expertise of the neutral third person.
(c) The parties shall submit and exchange position papers containing the issues
and statement of the relevant facts and appending supporting documents and
affidavits of witnesses to assist the neutral third person in evaluating or assessing
the dispute.
(d) The neutral third person may request either party to address additional issues
that he/she may consider necessary for a complete evaluation/assessment of the
dispute.
(e) The neutral third person may structure the evaluation process in any manner
he/she deems appropriate. In the course thereof, the neutral third person may
identify areas of agreement, clarify the issues, define those that are contentious,
 and encourage the parties to agree on a definition of issues and stipulate on facts
or admit the genuineness and due execution of documents.
(f) The neutral third person shall issue a written evaluation or assessment within
thirty (30) days from the conclusion of the evaluation process. The opinion shall
be non-binding and shall set forth how the neutral third person would have ruled
had the matter been subject to a binding process. The evaluation or assessment
shall indicate the relative strengths and weakness of the positions of the parties,
the basis for the evaluation or assessment, and an estimate, when feasible, of
the amount for which a party may be liable to the other if the dispute were made
subject to a binding process.
(g) There shall be no ex-parte communication between the neutral third person
and any party to dispute without the consent of all parties.
(h) All papers and written presentations communicated to the neutral third
person, including any paper prepared by a party to be communicated to the
neutral third person or to the other party as part of the dispute resolution process,
and the neutral third person’s written non-binding assessment or evaluation, shall
be treated as confidential.
RULE 3 – Mini-Trial
Article 7.7. Mini-Trial. (a) A mini-trial shall be governed by the rules and procedure agreed
upon by the parties. In the absence of said agreement, this Rule shall apply.
(b) A mini-trial shall be conducted either as: (i) a separate dispute resolution
process; or (ii) a continuation of mediation, neutral or early neutral evaluation or
any other ADR process.
(c) The parties may agree that a mini-trial be conducted with or without the
presence and participation of a neutral third person. If a neutral third person is
agreed upon and chosen, he/she shall preside over the mini-trial. The parties
may agree to appoint one or more (but equal in number per party) senior
executive/s, on its behalf, to sit as mini-trial panel members.
(d) The senior executive/s chosen to sit as mini-trial panel members must be duly
authorized to negotiate and settle the dispute with the other party. The
appointment of a mini-trial panel member/s shall be communicated to the other
party. This appointment shall constitute a representation to the other party that
the mini-trial panel member/s has/have the authority to enter into a settlement
agreement binding upon the principal without any further action or ratification by
the latter.
(e) Each party shall submit a brief executive summary of the dispute in sufficient
copies as to provide one copy to each mini-trial panel member and to the
adverse party. The summary shall identify the specific factual or legal issue or
issues. Each party may attach to the summary a more exhaustive recital of the
facts of the dispute and the applicable law and jurisprudence.
(f) At the date time and place agreed upon, the parties shall appear before the
mini-trial panel members. The lawyer of each party and/or authorized
representative shall present his/her case starting with the claimant followed by
the respondent. The lawyer and/or representative of each party may thereafter
offer rebuttal or sur-rebuttal arguments.
Unless the parties agree on a shorter or longer period, the presentation-in-chief shall be
made, without interruption, for one hour and the rebuttal or sur-rebuttal shall be thirty (30)
minutes.
At the end of each presentation, rebuttal or sur-rebuttal, the mini-trial panel member/s may
ask clarificatory questions from any of the presentors.
(g) After the mini-trial, the mini-trial panel members shall negotiate a settlement
of the dispute by themselves.
In cases where a neutral third person is appointed, the neutral third person shall assist the
proceedings shall be governed by Chapter 3 of Mediation.
RULE 4 – Mediation-Arbitration
Article 7.8. Mediation–Arbitration (a) A Mediation-Arbitration shall be governed by the
rules and procedure agreed upon by the parties, In the absence of said agreement,
Chapter 5 on Mediation shall first apply and thereafter, Chapter 5 on Domestic Arbitration.
(b) No Person shall having been engage and having acted as mediator of a
dispute between the parties, following a failed mediation, act as arbitrator of the
same dispute, unless the parties, in a written agreement, expressly authorize the
mediator to hear and decide the case as an arbitrator
(c) The mediator who becomes an arbitrator pursuant to this Rule shall make an
appropriate disclosure to the parties as if the arbitration proceeding had
commenced and will proceed as a new dispute resolution process, and shall,
before entering upon his/her duties, executive the appropriate oath or affirmation
of office as arbitrator in accordance with these Rules.
RULE 5- Costs and Fees
Article 7.9 Costs and Fees. (a) Before entering his/her duties as ADR Provider , he/she
shall agree with the parties on the cost of the ADR procedure, the fees to be paid and
manner of payment for his her services.
(b) n the absence of such agreement, the fees for the services of the ADR
provider/practitioner shall be determined as follows:
(i) If the ADR procedure is conducted under the rules and/or
administered by an institution regularly providing ADR services to the
general public, the fees of the ADR professional shall be determined in
accordance with schedule of fees approved by such institution, if any;
 (ii) In ad hoc ADR, the fees shall be determined in accordance with the
schedule of fees approved by the OADR;

(iii) In the absence of a schedule of fees approved by the ADR

institution or by the OADR, the fees shall be determined by the ADR
institution or by the OADR, as the case may be, and complexity of the
process, the amount in dispute and the professional standing of the
ADR professional.

(c) A contingency fee arrangement shall not be allowed. The amount that may be
allowed to an ADR professional may not be made dependent upon the success
of his/her effort in helping the parties to settle their dispute.

CHAPTER 8
MISCELLANEOUS PROVISION

Article 8.1. Amendments. These Rules or any portion hereof may be amended by the
Secretary of Justice.

Article 8.2 Separability Clause. If any part, article or provision of these Rules are declared
invalid or unconstitutional, the other parts hereof not affected thereby shall remain valid.

Article 8.3 Funding. The heads of department and agencies concerned, especially the
Department of Justice, insofar as the funding requirements of the OADR is concerned,
shall immediately include in their annual appropriation the funding necessary to implement
programs and extend services required by the ADR Act and these Rules.

Article 8.4 Transitory Provisions. Considering the procedural character of the ADR Act and
these Rules, the provisions of these Rules shall be applicable to all pending arbitration,
mediation or other ADR forms covered by the ADR Act if the parties agree.

Article. 8.5 Effectivity Clause. These Rules shall take effect fifteen (15) days after the
completion of its publication in at least two (2) national newspapers of general circulation.

APPROVED.

December 4, 2009

Republic Act No. 876 (1953), as amended by RA 9285, Arbitration Law
REPUBLIC ACT NO. 876
AN ACT TO AUTHORIZE THE MAKING OF ARBITRATION AND SUBMISSION
AGREEMENTS, TO PROVIDE FOR THE APPOINTMENT OF ARBITRATORS AND THE
PROCEDURE FOR ARBITRATION IN CIVIL CONTROVERSIES, AND FOR OTHER
PURPOSES
Section 1. Short Title. - This Act shall be known as "The Arbitration Law."
Section 2. Persons and matters subject to arbitration. - Two or more persons or parties
may submit to the arbitration of one or more arbitrators any controversy existing between
them at the time of the submission and which may be the subject of an action, or the
parties to any contract may in such contract agree to settle by arbitration a controversy
thereafter arising between them. Such submission or contract shall be valid, enforceable
and irrevocable, save upon such grounds as exist at law for the revocation of any contract.
Such submission or contract may include question arising out of valuations, appraisals or
other controversies which may be collateral, incidental, precedent or subsequent to any
issue between the parties.
A controversy cannot be arbitrated where one of the parties to the controversy is an infant,
or a person judicially declared to be incompetent, unless the appropriate court having
jurisdiction approve a petition for permission to submit such controversy to arbitration
made by the general guardian or guardian ad litem of the infant or of the incompetent.
But where a person capable of entering into a submission or contract has knowingly
entered into the same with a person incapable of so doing, the objection on the ground of
incapacity can be taken only in behalf of the person so incapacitated.
Section 3. Controversies or cases not subject to the provisions of this Act. - This Act shall
not apply to controversies and to cases which are subject to the jurisdiction of the Court of
Industrial Relations or which have been submitted to it as provided by Commonwealth Act
Numbered One hundred and three, as amended.
Section 4. Form of arbitration agreement. - A contract to arbitrate a controversy thereafter
arising between the parties, as well as a submission to arbitrate an existing controversy
shall be in writing and subscribed by the party sought to be charged, or by his lawful agent.
The making of a contract or submission for arbitration described in section two hereof,
providing for arbitration of any controversy, shall be deemed a consent of the parties to the
jurisdiction of the Court of First Instance of the province or city where any of the parties
resides, to enforce such contract or submission.
Section 5. Preliminary procedure. - An arbitration shall be instituted by:
(a) In the case of a contract to arbitrate future controversies by the service by
either party upon the other of a demand for arbitration in accordance with the
contract. Such demand shall be set forth the nature of the controversy, the
amount involved, if any, and the relief sought, together with a true copy of the
contract providing for arbitration. The demand shall be served upon any party
either in person or by registered mail. In the event that the contract between the
parties provides for the appointment of a single arbitrator, the demand shall be
set forth a specific time within which the parties shall agree upon such arbitrator.
If the contract between the parties provides for the appointment of three
arbitrators, one to be selected by each party, the demand shall name the
arbitrator appointed by the party making the demand; and shall require that the
party upon whom the demand is made shall within fifteen days after receipt
thereof advise in writing the party making such demand of the name of the
person appointed by the second party; such notice shall require that the two
arbitrators so appointed must agree upon the third arbitrator within ten days from
the date of such notice.
(b) In the event that one party defaults in answering the demand, the aggrieved
party may file with the Clerk of the Court of First Instance having jurisdiction over
the parties, a copy of the demand for arbitration under the contract to arbitrate,
with a notice that the original demand was sent by registered mail or delivered in
person to the party against whom the claim is asserted. Such demand shall set
forth the nature of the controversy, the amount involved, if any, and the relief
sought, and shall be accompanied by a true copy of the contract providing for
arbitration.
(c) In the case of the submission of an existing controversy by the filing with the
Clerk of the Court of First Instance having jurisdiction, of the submission
agreement, setting forth the nature of the controversy, and the amount involved,
if any. Such submission may be filed by any party and shall be duly executed by
both parties.
(d) In the event that one party neglects, fails or refuses to arbitrate under a
submission agreement, the aggrieved party shall follow the procedure prescribed
in subparagraphs (a) and (b) of this section.
Section 6. Hearing by court. - A party aggrieved by the failure, neglect or refusal of
another to perform under an agreement in writing providing for arbitration may petition the
court for an order directing that such arbitration proceed in the manner provided for in such
agreement. Five days notice in writing of the hearing of such application shall be served
either personally or by registered mail upon the party in default. The court shall hear the
parties, and upon being satisfied that the making of the agreement or such failure to
comply therewith is not in issue, shall make an order directing the parties to proceed to
arbitration in accordance with the terms of the agreement. If the making of the agreement
or default be in issue the court shall proceed to summarily hear such issue. If the finding be
that no agreement in writing providing for arbitration was made, or that there is no default
in the proceeding thereunder, the proceeding shall be dismissed. If the finding be that a
written provision for arbitration was made and there is a default in proceeding thereunder,
an order shall be made summarily directing the parties to proceed with the arbitration in
accordance with the terms thereof.
The court shall decide all motions, petitions or applications filed under the provisions of this
Act, within ten days after such motions, petitions, or applications have been heard by it.
Section 7. Stay of civil action. - If any suit or proceeding be brought upon an issue arising
out of an agreement providing for the arbitration thereof, the court in which such suit or
proceeding is pending, upon being satisfied that the issue involved in such suit or
proceeding is referable to arbitration, shall stay the action or proceeding until an arbitration
has been had in accordance with the terms of the agreement: Provided, That the applicant,
for the stay is not in default in proceeding with such arbitration.
Section 8. Appointment of arbitrators. - If, in the contract for arbitration or in the
submission described in section two, provision is made for a method of naming or
appointing an arbitrator or arbitrators, such method shall be followed; but if no method be
provided therein the Court of First Instance shall designate an arbitrator or arbitrators.
The Court of First Instance shall appoint an arbitrator or arbitrators, as the case may be, in
the following instances:
(a) If the parties to the contract or submission are unable to agree upon a single
arbitrator; or
(b) If an arbitrator appointed by the parties is unwilling or unable to serve, and his
successor has not been appointed in the manner in which he was appointed; or
(c) If either party to the contract fails or refuses to name his arbitrator within
fifteen days after receipt of the demand for arbitration; or
(d) If the arbitrators appointed by each party to the contract, or appointed by one
party to the contract and by the proper Court, shall fail to agree upon or to select
the third arbitrator.
(e) The court shall, in its discretion appoint one or three arbitrators, according to
the importance of the controversy involved in any of the preceding cases in which
the agreement is silent as to the number of arbitrators.
(f) Arbitrators appointed under this section shall either accept or decline their
appointments within seven days of the receipt of their appointments. In case of
declination or the failure of an arbitrator or arbitrators to duly accept their
appointments the parties or the court, as the case may be, shall proceed to
appoint a substitute or substitutes for the arbitrator or arbitrators who decline or
failed to accept his or their appointments.
Section 9. Appointment of additional arbitrators. - Where a submission or contract
provides that two or more arbitrators therein designated or to be thereafter appointed by
the parties, may select or appoint a person as an additional arbitrator, the selection or
appointment must be in writing. Such additional arbitrator must sit with the original
arbitrators upon the hearing.
Section 10. Qualifications of arbitrators. - Any person appointed to serve as an arbitrator
must be of legal age, in full-enjoyment of his civil rights and know how to read and write.
No person appointed to served as an arbitrator shall be related by blood or marriage within
the sixth degree to either party to the controversy. No person shall serve as an arbitrator in
any proceeding if he has or has had financial, fiduciary or other interest in the controversy
or cause to be decided or in the result of the proceeding, or has any personal bias, which
might prejudice the right of any party to a fair and impartial award.
No party shall select as an arbitrator any person to act as his champion or to advocate his
cause.
If, after appointment but before or during hearing, a person appointed to serve as an
arbitrator shall discover any circumstances likely to create a presumption of bias, or which
he believes might disqualify him as an impartial arbitrator, the arbitrator shall immediately
disclose such information to the parties. Thereafter the parties may agree in writing:
(a) to waive the presumptive disqualifying circumstances; or
(b) to declare the office of such arbitrator vacant. Any such vacancy shall be filled
in the same manner as the original appointment was made.
Section 11. Challenge of arbitrators. - The arbitrators may be challenged only for the
reasons mentioned in the preceding section which may have arisen after the arbitration
agreement or were unknown at the time of arbitration.
The challenge shall be made before them.
If they do not yield to the challenge, the challenging party may renew the challenge before
the Court of First Instance of the province or city in which the challenged arbitrator, or, any
of them, if there be more than one, resides. While the challenging incident is discussed
before the court, the hearing or arbitration shall be suspended, and it shall be continued
immediately after the court has delivered an order on the challenging incident.
Section 12. Procedure by arbitrators. - Subject to the terms of the submission or contract,
if any are specified therein, are arbitrators selected as prescribed herein must, within five
days after appointment if the parties to the controversy reside within the same city or
province, or within fifteen days after appointment if the parties reside in different provinces,
set a time and place for the hearing of the matters submitted to them, and must cause
notice thereof to be given to each of the parties. The hearing can be postponed or
adjourned by the arbitrators only by agreement of the parties; otherwise, adjournment may
be ordered by the arbitrators upon their own motion only at the hearing and for good and
sufficient cause. No adjournment shall extend the hearing beyond the day fixed in the
submission or contract for rendering the award, unless the time so fixed is extended by the
written agreement of the parties to the submission or contract or their attorneys, or unless
the parties have continued with the arbitration without objection to such adjournment.
The hearing may proceed in the absence of any party who, after due notice, fails to be
present at such hearing or fails to obtain an adjournment thereof. An award shall not be
made solely on the default of a party. The arbitrators shall require the other party to submit
such evidence as they may require for making an award.
No one other than a party to said arbitration, or a person in the regular employ of such
party duly authorized in writing by said party, or a practicing attorney-at-law, shall be
permitted by the arbitrators to represent before him or them any party to the arbitration.
Any party desiring to be represented by counsel shall notify the other party or parties of
such intention at least five days prior to the hearing.
The arbitrators shall arrange for the taking of a stenographic record of the testimony when
such a record is requested by one or more parties, and when payment of the cost thereof
is assumed by such party or parties.
Persons having a direct interest in the controversy which is the subject of arbitration shall
have the right to attend any hearing; but the attendance of any other person shall be at the
discretion of the arbitrators.
Section 13. Oath of arbitrators. - Before hearing any testimony, arbitrators must be sworn,
by any officer authorized by law to administer an oath, faithfully and fairly to hear and
examine the matters in controversy and to make a just award according to the best of their
ability and understanding. Arbitrators shall have the power to administer the oaths to all
witnesses requiring them to tell the whole truth and nothing but the truth in any testimony
which they may give in any arbitration hearing. This oath shall be required of every witness
before any of his testimony is heard.
Section 14. Subpoena and subpoena duces tecum. - Arbitrators shall have the power to
require any person to attend a hearing as a witness. They shall have the power to
subpoena witnesses and documents when the relevancy of the testimony and the
materiality thereof has been demonstrated to the arbitrators. Arbitrators may also require
the retirement of any witness during the testimony of any other witness. All of the
arbitrators appointed in any controversy must attend all the hearings in that matter and
hear all the allegations and proofs of the parties; but an award by the majority of them is
valid unless the concurrence of all of them is expressly required in the submission or
contract to arbitrate. The arbitrator or arbitrators shall have the power at any time, before
rendering the award, without prejudice to the rights of any party to petition the court to take
measures to safeguard and/or conserve any matter which is the subject of the dispute in
arbitration.
Section 15. Hearing by arbitrators. - Arbitrators may, at the commencement of the hearing,
ask both parties for brief statements of the issues in controversy and/or an agreed
statement of facts. Thereafter the parties may offer such evidence as they desire, and shall
produce such additional evidence as the arbitrators shall require or deem necessary to an
understanding and determination of the dispute. The arbitrators shall be the sole judge of
the relevancy and materiality of the evidence offered or produced, and shall not be bound
to conform to the Rules of Court pertaining to evidence. Arbitrators shall receive as exhibits
in evidence any document which the parties may wish to submit and the exhibits shall be
properly identified at the time of submission. All exhibits shall remain in the custody of the
Clerk of Court during the course of the arbitration and shall be returned to the parties at the
time the award is made. The arbitrators may make an ocular inspection of any matter or
premises which are in dispute, but such inspection shall be made only in the presence of
all parties to the arbitration, unless any party who shall have received notice thereof fails to
appear, in which event such inspection shall be made in the absence of such party.
Section 16. Briefs. - At the close of the hearings, the arbitrators shall specifically inquire of
all parties whether they have any further proof or witnesses to present; upon the receipt of
a negative reply from all parties, the arbitrators shall declare the hearing closed unless the
parties have signified an intention to file briefs. Then the hearing shall be closed by the
arbitrations after the receipt of briefs and/or reply briefs. Definite time limit for the filing of
such briefs must be fixed by the arbitrators at the close of the hearing. Briefs may filed by
the parties within fifteen days after the close of the oral hearings; the reply briefs, if any,
shall be filed within five days following such fifteen-day period.
Section 17. Reopening of hearing. - The hearing may be reopened by the arbitrators on
their own motion or upon the request of any party, upon good cause, shown at any time
before the award is rendered. When hearings are thus reopened the effective date for the
closing of the hearings shall be the date of the closing of the reopened hearing.
Section 18. Proceeding in lieu of hearing. - The parties to a submission or contract to
arbitrate may, by written agreement, submit their dispute to arbitration by other than oral
hearing. The parties may submit an agreed statement of facts. They may also submit their
respective contentions to the duly appointed arbitrators in writing; this shall include a
statement of facts, together with all documentary proof. Parties may also submit a written
argument. Each party shall provide all other parties to the dispute with a copy of all
statements and documents submitted to the arbitrators. Each party shall have an
opportunity to reply in writing to any other party's statements and proofs; but if such party
fails to do so within seven days after receipt of such statements and proofs, he shall be
deemed to have waived his right to reply. Upon the delivery to the arbitrators of all
statements and documents, together with any reply statements, the arbitrators shall
declare the proceedings in lieu of hearing closed.
Section 19. Time for rendering award. - Unless the parties shall have stipulated by written
agreement the time within which the arbitrators must render their award, the written award
of the arbitrators shall be rendered within thirty days after the closing of the hearings or if
the oral hearings shall have been waived, within thirty days after the arbitrators shall have
declared such proceedings in lieu of hearing closed. This period may be extended by
mutual consent of the parties.alf-itc
Section 20. Form and contents of award. - The award must be made in writing and signed
and acknowledged by a majority of the arbitrators, if more than one; and by the sole
arbitrator, if there is only one. Each party shall be furnished with a copy of the award. The
arbitrators in their award may grant any remedy or relief which they deem just and
equitable and within the scope of the agreement of the parties, which shall include, but not
be limited to, the specific performance of a contract.
In the event that the parties to an arbitration have, during the course of such arbitration,
settled their dispute, they may request of the arbitrators that such settlement be embodied
in an award which shall be signed by the arbitrators. No arbitrator shall act as a mediator in
any proceeding in which he is acting as arbitrator; and all negotiations towards settlement
of the dispute must take place without the presence of the arbitrators.
The arbitrators shall have the power to decide only those matters which have been
submitted to them. The terms of the award shall be confined to such disputes.
The arbitrators shall have the power to assess in their award the expenses of any party
against another party, when such assessment shall be deemed necessary.
Section 21. Fees of arbitration. - The fees of the arbitrators shall be fifty pesos per day
unless the parties agree otherwise in writing prior to the arbitration.
Section 22. Arbitration deemed a special proceeding. - Arbitration under a contract or
submission shall be deemed a special proceeding, of which the court specified in the
contract or submission, or if none be specified, the Court of First Instance for the province
or city in which one of the parties resides or is doing business, or in which the arbitration
was held, shall have jurisdiction. Any application to the court, or a judge thereof, hereunder
shall be made in manner provided for the making and hearing of motions, except as
otherwise herein expressly provided.
Section 23. Confirmation of award. - At any time within one month after the award is
made, any party to the controversy which was arbitrated may apply to the court having
jurisdiction, as provided in section twenty-eight, for an order confirming the award; and
thereupon the court must grant such order unless the award is vacated, modified or
corrected, as prescribed herein. Notice of such motion must be served upon the adverse
party or his attorney as prescribed by law for the service of such notice upon an attorney in
action in the same court.
Section 24. Grounds for vacating award. - In any one of the following cases, the court
must make an order vacating the award upon the petition of any party to the controversy
when such party proves affirmatively that in the arbitration proceedings:
(a) The award was procured by corruption, fraud, or other undue means; or
(b) That there was evident partiality or corruption in the arbitrators or any of them;
or
(c) That the arbitrators were guilty of misconduct in refusing to postpone the
hearing upon sufficient cause shown, or in refusing to hear evidence pertinent
and material to the controversy; that one or more of the arbitrators was
disqualified to act as such under section nine hereof, and wilfully refrained from
disclosing such disqualifications or of any other misbehavior by which the rights
of any party have been materially prejudiced; or
(d) That the arbitrators exceeded their powers, or so imperfectly executed them,
that a mutual, final and definite award upon the subject matter submitted to them
was not made.
Where an award is vacated, the court, in its discretion, may direct a new hearing either
before the same arbitrators or before a new arbitrator or arbitrators to be chosen in the
manner provided in the submission or contract for the selection of the original arbitrator or
arbitrators, and any provision limiting the time in which the arbitrators may make a decision
shall be deemed applicable to the new arbitration and to commence from the date of the
court's order.
Where the court vacates an award, costs, not exceeding fifty pesos and disbursements
may be awarded to the prevailing party and the payment thereof may be enforced in like
manner as the payment of costs upon the motion in an action.
Section 25. Grounds for modifying or correcting award. - In any one of the following cases,
the court must make an order modifying or correcting the award, upon the application of
any party to the controversy which was arbitrated:
(a) Where there was an evident miscalculation of figures, or an evident mistake in
the description of any person, thing or property referred to in the award; or
(b) Where the arbitrators have awarded upon a matter not submitted to them, not
affecting the merits of the decision upon the matter submitted; or
(c) Where the award is imperfect in a matter of form not affecting the merits of the
controversy, and if it had been a commissioner's report, the defect could have
been amended or disregarded by the court.
The order may modify and correct the award so as to effect the intent thereof and promote
justice between the parties.
Section 26. Motion to vacate, modify or correct award: when made. - Notice of a motion to
vacate, modify or correct the award must be served upon the adverse party or his counsel
within thirty days after award is filed or delivered, as prescribed by law for the service upon
an attorney in an action.
Section 27. Judgment. - Upon the granting of an order confirming, modifying or correcting
an award, judgment may be entered in conformity therewith in the court wherein said
application was filed. Costs of the application and the proceedings subsequent thereto may
be awarded by the court in its discretion. If awarded, the amount thereof must be included
in the judgment.
Section 28. Papers to accompany motion to confirm, modify, correct, or vacate award. -
The party moving for an order confirming, modifying, correcting, or vacating an award,
shall at the time that such motion is filed with the court for the entry of judgment thereon
also file the following papers with the Clerk of Court;
(a) The submission, or contract to arbitrate; the appointment of the arbitrator or
arbitrators; and each written extension of the time, if any, within which to make
the award.
(b) A verified of the award.
(c) Each notice, affidavit, or other paper used upon the application to confirm,
modify, correct or vacate such award, and a copy of each of the court upon such
application.
The judgment shall be docketed as if it were rendered in an action.
The judgment so entered shall have the same force and effect in all respects, as, and be
subject to all the provisions relating to, a judgment in an action; and it may be enforced as
if it had been rendered in the court in which it is entered.
Section 29. Appeals. - An appeal may be taken from an order made in a proceeding under
this Act, or from a judgment entered upon an award through certiorari proceedings, but
such appeals shall be limited to questions of law. The proceedings upon such an appeal,
including the judgment thereon shall be governed by the Rules of Court in so far as they
are applicable.
Section 30. Death of party. - Where a party dies after making a submission or a contract to
arbitrate as prescribed in this Act, the proceedings may be begun or continued upon the
application of, or notice to, his executor or administrator, or temporary administrator of his
estate. In any such case, the court may issue an order extending the time within which
notice of a motion to confirm, vacate, modify or correct an award must be served. Upon
confirming an award, where a party has died since it was filed or delivered, the court must
enter judgment in the name of the original party; and the proceedings thereupon are the
same as where a party dies after a verdict.

Section 31. Repealing clause. - The provisions of chapters one and two, Title XIV, of the
Civil Code shall remain in force. All other laws and parts of laws inconsistent with this Act
are hereby repealed. If any provision of this Act shall be held invalid the remainder that
shall not be affected thereby.

Section 32. Effectivity. - This Act shall take effect six months after its approval.

Approved: June 19, 1953


Executive Order No. 1008 (1985), Construction Industry Arbitration Law
BY THE PRESIDENT OF THE PHILIPPINES
EXECUTIVE ORDER NO. 1008
CREATING AN ARBITRATION MACHINERY IN THE CONSTRUCTION INDUSTRY OF
THE PHILIPPINES
WHEREAS, the construction industry provides employment to a large segment of the
national labor force and is a leading contributor to the gross national product;
WHEREAS, it is of vital necessity that continued growth towards national goals shall not be
hindered by problems arising from, or connected with, the construction industry;
WHEREAS, there is a need to establish an arbitral machinery to settle to such disputes
expeditiously in order to maintain and promote a healthy partnership between the
government and the private sector in the furtherance of national development goals;
WHEREAS, Presidential Decree No. 1746 created the Construction Industry Authority of the
Philippine (CIAP) to exercise centralized authority for the optimum development of the
construction industry and to enhance the growth of the local construction industry;
WHEREAS, among the implementing agencies of the CIAP is the Philippine Domestic
Construction Board (PDCB) which is specifically authorized by Presidential Decree No. 1746
to “adjudicate and settle claims and disputes in the implementation of public and private
construction contracts and for this purpose, formulate and adopt the necessary rules and
regulations subject to the approval of the President”;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of
the powers vested in me by law, do hereby authorize the creation of an arbitration machinery
in the construction industry of the Philippines, and do hereby order and ordain:
SECTION 1. Title – This Executive Order shall be known as the “Construction Industry
Arbitration Law”.
SECTION 2. Declaration of Policy – It is hereby declared to be the policy of the State to
encourage the early and expeditious settlement of disputes in the Philippine construction
industry.
SECTION 3. Creation – There is hereby established in the CIAP a body to be known as the
Construction Industry Arbitration Commission (CIAC). The CIAC shall be under the
administrative supervision of the PDCB.
SECTION 4. Jurisdiction – The CIAC shall have original and exclusive jurisdiction over
disputes arising from, or connected with, contracts entered into by parties involved in
construction in the Philippines, whether the dispute arises before or after the completion of
the contract, or after the abandonment or breach thereof. These disputes may involve
government or private contracts. For the Board to acquire jurisdiction, the parties to a dispute
must agree to submit the same to voluntary arbitration.
The jurisdiction of the CIAC may include but is not limited to violation of specifications for
materials and workmanship; violation of the terms of agreement; interpretation and/or
application of contractual time and delays; maintenance and defects; payment, default of
employer or contractor and changes in contract cost.
Excluded from the coverage of this law are disputes arising from employer-employee
relationships which shall continue to be covered by the Labor Code of the Philippines.
SECTION 5. Composition of the Board – The Commission shall consist of a Chairman and
two (2) members, all to be appointed by the CIAP Board upon recommendation by the
members of the PDCB.
SECTION 6. Functions of the Commission – The Commission shall perform, among others
that may be conferred by law, the following functions:
1) To formulate and adopt an arbitration program for the construction industry;
2) To enunciate policies and prescribe rules and procedures for construction arbitration;
3) To supervise the arbitration program, and exercise such authority related thereto as
regards the appointment, replacement or challenging of arbitrators; and
4) To direct its officers and employees to perform such functions as may be assigned to
them from time to time.
SECTION 7. Compensation of the Commission – The members of the Commission shall
receive such per diems and allowances as may be fixed by the CIAP from time to time.
SECTION 8. Term – The term of office of the members of the Commission shall be six (6)
years; provided, however, that of the Commission members first appointed, the chairman
shall hold office for six years; the other member for four (4) years; and the third for two (2)
years. The appointment to any vacancy in the Commission shall only be for the unexpired
portion of the term of the predecessor.
SECTION 9. Quorum – The presence of a majority of the members of the Commission shall
constitute a quorum for the transaction of business.
SECTION 10. Deliberations – The decisions of the Commission shall be arrived at by
majority vote.
SECTION 11. Secretariat – The Commission shall have a Secretariat to be headed by an
Executive Director who shall be responsible for receiving requests for arbitration and other
pleadings; for notifying the parties thereto; and, for fixing and receiving filing fees, deposits,
costs of arbitration, administrative charges, and fees. It shall be the duty of the Executive
Director to notify the parties of the awards made by the arbitrators.
The Secretariat shall have among others a Publication and a Training Division.
SECTION 12. Authority to Appoint – The Commission is hereby authorized to appoint the
Executive Director, the consultants, the arbitrators, as well as personnel and staff.
Payment shall either be shared equally by the parties or be paid by any of them. If one party
fails to contribute his share in the deposit, the other party must pay in full. If both parties fail
to tender the required deposit, the case shall be considered dismissed but the parties shall
still be liable to pay one half (1/2) of the agreed administrative charge.

SECTION 13. Authority to Collect Fees – The Commission is empowered to determine and
collect fees, deposits, costs of arbitration, as well as administrative and other charges as
may be necessary in the performance of its functions and responsibilities. The CIAC is also
authorized to use its receipts and deposits of funds to finance its operations subject to the
approval of the PDCB, the provisions of any law to the contrary notwithstanding.
SECTION 14. Arbitrators – A sole arbitrator or three arbitrators may settle a dispute.
SECTION 18. Reports – The Commission shall within three (3) months after the end of the
fiscal year, submit its annual report to the CIAP. It shall, likewise, submit such periodic
reports as it may be required from time to time.
SECTION 19. Finality of Awards – The arbitral award shall be binding upon the parties. It
shall be final and inappealable except on questions of law which shall be appealable to the
Supreme Court.

Where the parties agree that the dispute shall be settled by a sole arbitrator, they may, by
agreement, nominate him from the list of arbitrators accredited by the CIAC for appointment
and confirmation. If the parties fail to agree as to the arbitrator, the CIAC taking into
consideration the complexities and intricacies of the dispute/s has the option to appoint a
single arbitrator or an Arbitral Tribunal.
SECTION 20. Execution and Enforcement of Awards – As soon as a decision, order or
award has become final and executory, the Arbitral Tribunal or the single arbitrator with the
occurrence of the CIAC shall motu propio, or on motion of any interested party, issue a writ
of execution requiring any sheriff or other proper officer to execute said decision, order or
award.

SECTION 21. Rule-Making Power – The CIAC shall formulate and adopt necessary rules
If the CIAC decides to appoint an Arbitral Tribunal, each party may nominate one (1)
arbitrator from the list of arbitrators accredited by the CIAC for appointment and for and procedures for construction arbitration.
confirmation. The third arbitrator who is acceptable to both parties confirmed in writing shall
be appointed by the CIAC and shall preside over the Tribunal. SECTION 22. Separability Clause – The provisions of this Executive Order are declared to
be separable and if any provision on the application hereof is held invalid or unconstitutional,
Arbitration shall be men of distinction in whom the business sector and the government can the validity of the remaining provision not otherwise affected shall remain in full force and
effect.
have confidence. They shall not be permanently employed with the CIAC. Instead, they shall
render services only when called to arbitrate. For each dispute they settle, they shall be
given fees. SECTION 23. Repealing Clause – All provisions of existing laws, proclamations, decrees,
letters of instructions and executive orders contrary to or inconsistent herewith are hereby
repealed or modified accordingly.
SECTION 15. Appointment of Experts – The services of technical or legal experts may be
utilized in the settlement of disputes if requested by any of the parties or by the Arbitral
Tribunal. If the request for an expert is done by either or by both of the parties, it is necessary SECTION 24. Effectivity Clause. – This Executive Order shall take effect immediately.
that the appointment of the expert be confirmed by the Arbitral Tribunal.
Done in the City of Manila, this 4th day of February, in the Year of Our Lord, Nineteen
Whenever the parties request for the services of an expert, they shall equally shoulder the Hundred and Eighty Five.
expert’s fees and expenses, half of which shall be deposited with the Secretariat before the
expert renders service. When only one party makes the request, it shall deposit the whole (Sgd.) FERDINAND E. MARCOS
amount required.

SECTION 16. Arbitration Expenses – Arbitration expenses shall include the filing fee;
administrative charges, arbitrator’s fees; fee and expenses of the expert, and others which
may be imposed by the CIAC.

The administrative charges and the arbitrator’s fees shall be computed on the basis of
percentage of the sum in dispute to be fixed in accordance with the Table of Administrative
Charges and Arbitrator’s Fees.

SECTION 17. Deposit to Cover Arbitration Expenses – The CIAC shall be authorized to fix
the amount to be deposited which must be equivalent to the expected arbitration expenses.
The deposit shall be paid to the Secretariat before arbitration proceedings shall commence.

Executive Order No. 78 (2012), ADR in Contracts Between Government and Private Entities
EXECUTIVE ORDER NO. 78
MANDATING THE INCLUSION OF PROVISIONS ON THE USE OF ALTERNATIVE
DISPUTE RESOLUTION MECHANISMS IN ALL CONTRACTS INVOLVING PUBLIC-
PRIVATE PARTNERSHIP PROJECTS, BUILD-OPERATE AND TRANSFER PROJECTS,
JOINT VENTURE AGREEMENTS BETWEEN THE GOVERNMENT AND PRIVATE
ENTITIES AND THOSE ENTERED INTO BY LOCAL GOVERNMENT UNITS
WHEREAS, as early as 1953, Republic Act (RA) No. 876 otherwise known as “The
Arbitration Law,” already allowed persons or parties to submit to arbitration, “any controversy
existing between them at the time of the submission and which may be the subject of an
action, or the parties to any contract may in such contract agree to settle by arbitration a
controversy thereafter arising between them;”
WHEREAS, the Supreme Court (SC) in 2001, has authorized the use of court-annexed
mediation as a form of Alternative Dispute Resolution (ADR) in specific cases. Furthermore,
other forms of ADR have been incorporated into the Philippine judicial system, such as: the
use of pre-trial; discovery modes of procedure; the barangay certification prerequisite to filing
actions in court; and, the procedure in small claims cases;
WHEREAS, RA No. 9285, otherwise known as “The ADR Act of 2004,” declares that it is
the, policy of the State to actively promote party autonomy in resolving disputes and to
respect the freedom of the parties to make their own arrangements to resolve their disputes;
WHEREAS, the SC promulgated the Special Rules of Court on ADR in 2009 (A.M. No. 07-
11-08-SC), with the objective of encouraging and promoting the use of ADR, particularly
arbitration and mediation, as an important means to achieve speedy and efficient resolution
of disputes with the greatest cooperation of the courts and at the same time the least
intervention from the same;
WHEREAS, towards this end, the State shall encourage and actively promote the use of
ADR mechanisms through conciliation and negotiation, mediation and arbitration, in the
order of application, as an efficient tool and an alternative procedure in achieving speedy
and impartial justice and de-clogging court dockets; and
WHEREAS, there is a need to provide a more inviting climate for private investments by
making the resolution of disputes arising out of a contract less expensive, tedious, complex
and time-consuming, especially for large-scale, capital-intensive infrastructure and
development contracts.
NOW, THEREFORE, I, BENIGNO S. AQUINO III, President of the Philippines, by virtue of
the powers vested in me by the Constitution and existing laws do hereby order:
SECTION 1. Use of ADR mechanisms. All contracts involving Public-Private Partnership
(PPP) projects and/or those entered into under RA No. 6957 entitled, “The Act Authorizing
the Financing, Construction, Operation and Maintenance of Infrastructure Projects by the
Private Sector, and for Other Purposes,” as amended by RA No. 7718, otherwise known as
the “Build-Operate and Transfer (BOT) Law,” as well as Joint Venture Agreements (JVAs)
between government and private entities issued by the National Economic and Development
Authority (NEDA) pursuant to Executive Order (EO) No. 423 (s. 2005), shall include
provisions on the use of ADR mechanisms, at the option and upon agreement of the parties
to said contracts..
All parties who enter into similar contracts with Local Government Units (LGUs) are
encouraged to stipulate on the use of ADR mechanisms, in accordance with their own JV
rules, guidelines or procedures.
When parties to the abovementioned contracts agree to submit the case for ADR, the use
of either domestic or international ADR mechanisms shall be highly encouraged, giving the
parties complete freedom to choose which venue and forum shall govern their dispute, as
well as the rules or procedures to be followed in resolving the same.
SECTION 2. Implementing Agency. NEDA, in consultation with the appropriate agencies
of the government, is hereby directed to issue the Implementing Rules and Regulations
(IRR) to implement this EO, which shall be binding on all government agencies and shall
guide LGUs that shall enter into PPP or BOT contracts and JVAs.
SECTION 3. Information Campaign. The Department of Justice (DOJ) through the Office
of the Alternative Dispute Resolution (OADR), NEDA through the PPP Center, and the
government media instrumentalities shall conduct a massive information campaign on this
policy directive and the different ADR mechanisms to all national and local government
agencies/entities, the private sector and the general public.
The initial funding requirements for the information campaign shall be shared by and charged
against the current appropriations of the PPP Center, NEDA, OADR, and other concerned
agencies. Funding for the succeeding years shall be incorporated in their respective regular
appropriations thereafter.
SECTION 4. Repealing Clause. All issuances, orders, rules, and regulations or parts
thereof which are inconsistent with the provisions of this EO are hereby revoked and/or
modified accordingly.
SECTION 5. Separability Clause. If any provision of this EO is declared invalid or
unconstitutional, the other provisions unaffected shall remain valid and subsisting.
SECTION 6. Effectivity Clause. This EO shall take effect immediately upon its publication
in a newspaper of general circulation.
DONE, in the City of Manila, this 4th day of July, in the year of our Lord, Two Thousand and
Twelve.
(Sgd.) BENIGNO S. AQUINO II
 g. Assistance in Taking Evidence;

h. Confirmation, Correction or Vacation of Award in Domestic Arbitration;

A.M. No. 07-11-08-SC, 1 September 2009, Special Rules of Court on ADR
i. Recognition and Enforcement or Setting Aside of an Award in International
Commercial Arbitration;
A.M. No. 07-11-08-SC September 1, 2009
j. Recognition and Enforcement of a Foreign Arbitral Award;
SPECIAL RULES OF COURT ON ALTERNATIVE DISPUTE RESOLUTION
k. Confidentiality/Protective Orders; and
Acting on the recommendation of the Chairperson of the Sub-Committee on the Rules on
Alternative Dispute Resolution submitting for this Court’s consideration and approval the
l. Deposit and Enforcement of Mediated Settlement Agreements.
proposed Special Rules of Court on Alternative Dispute Resolution, the Court Resolved to
APPROVE the same.
Rule 1.2. Nature of the proceedings.-All proceedings under the Special ADR Rules are
special proceedings.
This Rule shall take effect on October 30, 2009 following its publication in three (3)
newspapers of general circulation.
Rule 1.3. Summary proceedings in certain cases.-The proceedings in the following
instances are summary in nature and shall be governed by this provision:
September 1, 2009.

a. Judicial Relief Involving the Issue of Existence, Validity or Enforceability of the

Arbitration Agreement;

SPECIAL RULES OF COURT ON ALTERNATIVE DISPUTE RESOLUTION b. Referral to ADR;

c. Interim Measures of Protection;

PART I
GENERAL PROVISIONS AND POLICIES
d. Appointment of Arbitrator;
RULE 1: GENERAL PROVISIONS
e. Challenge to Appointment of Arbitrator;
Rule 1.1. Subject matter and governing rules.-The Special Rules of Court on Alternative
Dispute Resolution (the "Special ADR Rules") shall apply to and govern the following f. Termination of Mandate of Arbitrator;
cases:
g. Assistance in Taking Evidence;
a. Relief on the issue of Existence, Validity, or Enforceability of the Arbitration
Agreement; h. Confidentiality/Protective Orders; and

b. Referral to Alternative Dispute Resolution ("ADR"); i. Deposit and Enforcement of Mediated Settlement Agreements.

c. Interim Measures of Protection; (A) Service and filing of petition in summary proceedings.-The petitioner shall serve, either
by personal service or courier, a copy of the petition upon the respondent before the filing
d. Appointment of Arbitrator; thereof. Proof of service shall be attached to the petition filed in court.

e. Challenge to Appointment of Arbitrator; For personal service, proof of service of the petition consists of the affidavit of the person
who effected service, stating the time, place and manner of the service on the respondent.
For service by courier, proof of service consists of the signed courier proof of delivery. If
f. Termination of Mandate of Arbitrator;
service is refused or has failed, the affidavit or delivery receipt must state the
circumstances of the attempted service and refusal or failure thereof.
(B) Notice.-Except for cases involving Referral to ADR and Confidentiality/Protective
Orders made through motions, the court shall, if it finds the petition sufficient in form and
substance, send notice to the parties directing them to appear at a particular time and date
for the hearing thereof which shall be set no later than five (5) days from the lapse of the
period for filing the opposition or comment. The notice to the respondent shall contain a
statement allowing him to file a comment or opposition to the petition within fifteen (15)
days from receipt of the notice.
The motion filed pursuant to the rules on Referral to ADR or Confidentiality/Protective
Orders shall be set for hearing by the movant and contain a notice of hearing that complies
with the requirements under Rule 15 of the Rules of Court on motions.
(C) Summary hearing. - In all cases, as far as practicable, the summary hearing shall be
conducted in one (1) day and only for purposes of clarifying facts.
Except in cases involving Referral to ADR or Confidentiality/Protective Orders made
through motions, it shall be the court that sets the petition for hearing within five (5) days
from the lapse of the period for filing the opposition or comment.
(D) Resolution. - The court shall resolve the matter within a period of thirty (30) days from
the day of the hearing.
Rule 1.4. Verification and submissions. -Any pleading, motion, opposition, comment,
defense or claim filed under the Special ADR Rules by the proper party shall be supported
by verified statements 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
and shall contain as annexes the supporting documents.
The annexes to the pleading, motion, opposition, comment, defense or claim filed by the
proper party may include a legal brief, duly verified by the lawyer submitting it, stating the
pertinent facts, the applicable law and jurisprudence to justify the necessity for the court to
rule upon the issue raised.
Rule 1.5. Certification Against Forum Shopping. - A Certification Against Forum Shopping
is one made under oath made by the petitioner or movant: (a) that he has not theretofore
commenced any action or filed any claim involving the same issues in any court, tribunal or
quasi-judicial agency and, to the best of his knowledge, no such other action or claim is
pending therein; (b) if there is such other pending action or claim, a complete statement of
the present status thereof; and (c) if he should thereafter learn that the same or similar
action or claim has been filed or is pending, he shall report that fact within five (5) days
therefrom to the court wherein his aforementioned petition or motion has been filed.
A Certification Against Forum Shopping shall be appended to all initiatory pleadings except
a Motion to Refer the Dispute to Alternative Dispute Resolution.
Rule 1.6. Prohibited submissions. - The following pleadings, motions, or petitions shall not
be allowed in the cases governed by the Special ADR Rules and shall not be accepted for
filing by the Clerk of Court:
a. Motion to dismiss;
b. Motion for bill of particulars;
c. Motion for new trial or for reopening of trial;
d. Petition for relief from judgment;
e. Motion for extension, except in cases where an ex-parte temporary order of
protection has been issued;
f. Rejoinder to reply;
g. Motion to declare a party in default; and
h. Any other pleading specifically disallowed under any provision of the Special
ADR Rules.
The court shall motu proprio order a pleading/motion that it has determined to be dilatory in
nature be expunged from the records.
Rule 1.7. Computation of time. - In computing any period of time prescribed or allowed by
the Special ADR Rules, or by order of the court, or by any applicable statute, the day of the
act or event from which the designated period of time begins to run is to be excluded and
the date of performance included. If the last day of the period, as thus computed, falls on a
Saturday, a Sunday, or a legal holiday in the place where the court sits, the time shall not
run until the next working day.
Should an act be done which effectively interrupts the running of the period, the allowable
period after such interruption shall start to run on the day after notice of the cessation of
the cause thereof.
The day of the act that caused the interruption shall be excluded from the computation of
the period.
Rule 1.8. Service and filing of pleadings, motions and other papers in non-summary
proceedings. - The initiatory pleadings shall be filed directly with the court. The court will
then cause the initiatory pleading to be served upon the respondent by personal service or
courier. Where an action is already pending, pleadings, motions and other papers shall be
filed and/or served by the concerned party by personal service or courier. Where courier
services are not available, resort to registered mail is allowed.
(A) Proof of filing. - The filing of a pleading shall be proved by its existence in the record of
the case. If it is not in the record, but is claimed to have been filed personally, the filing
shall be proved by the written or stamped acknowledgment of its filing by the clerk of court
on a copy of the same; if filed by courier, by the proof of delivery from the courier company.
(B) Proof of service. - Proof of personal service shall consist of a written admission by the
party served, or the official return of the server, or the affidavit of the party serving,
containing a full statement of the date, place and manner of service. If the service is by
courier, proof thereof shall consist of an affidavit of the proper person, stating facts
showing that the document was deposited with the courier company in a sealed envelope,
plainly addressed to the party at his office, if known, otherwise at his residence, with
postage fully pre-paid, and with instructions to the courier to immediately provide proof of
delivery.
(C) Filing and service by electronic means and proof thereof. - Filing and service of
pleadings by electronic transmission may be allowed by agreement of the parties approved
by the court. If the filing or service of a pleading or motion was done by electronic
transmission, proof of filing and service shall be made in accordance with the Rules on
Electronic Evidence.
Rule 1.9. No summons. - In cases covered by the Special ADR Rules, a court acquires
authority to act on the petition or motion upon proof of jurisdictional facts, i.e., that the
respondent was furnished a copy of the petition and the notice of hearing.
(A) Proof of service. - A proof of service of the petition and notice of hearing upon
respondent shall be made in writing by the server and shall set forth the manner, place and
date of service.
(B) Burden of proof. - The burden of showing that a copy of the petition and the notice of
hearing were served on the respondent rests on the petitioner.
The technical rules on service of summons do not apply to the proceedings under the
Special ADR Rules. In instances where the respondent, whether a natural or a juridical
person, was not personally served with a copy of the petition and notice of hearing in the
proceedings contemplated in the first paragraph of Rule 1.3 (B), or the motion in
proceedings contemplated in the second paragraph of Rule 1.3 (B), the method of service
resorted to must be such as to reasonably ensure receipt thereof by the respondent to
satisfy the requirement of due process.
Rule 1.10. Contents of petition/motion. - The initiatory pleading in the form of a verified
petition or motion, in the appropriate case where court proceedings have already
commenced, shall include the names of the parties, their addresses, the necessary
allegations supporting the petition and the relief(s) sought.
Rule 1.11. Definition. - The following terms shall have the following meanings:
a. "ADR Laws" refers to the whole body of ADR laws in the Philippines.
b. "Appointing Authority" shall mean the person or institution named in the
arbitration agreement as the appointing authority; or the regular arbitration
institution under whose rule the arbitration is agreed to be conducted. Where the
parties have agreed to submit their dispute to institutional arbitration rules, and
unless they have agreed to a different procedure, they shall be deemed to have
agreed to procedure under such arbitration rules for the selection and
appointment of arbitrators. In ad hoc arbitration, the default appointment of
arbitrators shall be made by the National President of the Integrated Bar of the
Philippines or his duly authorized representative.
c. "Authenticate" means to sign, execute or use a symbol, or encrypt a record in
whole or in part, intended to identify the authenticating party and to adopt, accept
or establish the authenticity of a record or term.
d. "Foreign Arbitral Award" is one made in a country other than the Philippines.
e. "Legal Brief" is a written legal argument submitted to a court, outlining the facts
derived from the factual statements in the witness’s statements of fact and citing
the legal authorities relied upon by a party in a case submitted in connection with
petitions, counter-petitions (i.e., petitions to vacate or to set aside and/or to
correct/modify in opposition to petitions to confirm or to recognize and enforce, or
petitions to confirm or to recognize and enforce in opposition to petitions to
vacate or set aside and/or correct/modify), motions, evidentiary issues and other
matters that arise during the course of a case. The legal brief shall state the
applicable law and the relevant jurisprudence and the legal arguments in support
of a party’s position in the case.
f. "Verification" shall mean a certification under oath by a party or a person who
has authority to act for a party that he has read the pleading/motion, and that he
certifies to the truth of the facts stated therein on the basis of his own personal
knowledge or authentic documents in his possession. When made by a lawyer,
verification shall mean a statement under oath by a lawyer signing a
pleading/motion for delivery to the Court or to the parties that he personally
prepared the pleading/motion, that there is sufficient factual basis for the
statements of fact stated therein, that there is sufficient basis in the facts and the
law to support the prayer for relief therein, and that the pleading/motion is filed in
good faith and is not interposed for delay.
Rule 1.12. Applicability of Part II on Specific Court Relief. - Part II of the Special ADR
Rules on Specific Court Relief, insofar as it refers to arbitration, shall also be applicable to
other forms of ADR.
Rule 1.13. Spirit and intent of the Special ADR Rules. – In situations where no specific
rule is provided under the Special ADR Rules, the court shall resolve such matter
summarily and be guided by the spirit and intent of the Special ADR Rules and the ADR
Laws.
RULE 2: STATEMENT OF POLICIES
Rule 2.1. General policies. - It is the policy of the State to actively promote the use of
various modes of ADR and to respect party autonomy or the freedom of the parties to
make their own arrangements in the resolution of disputes with the greatest cooperation of
and the least intervention from the courts. To this end, the objectives of the Special ADR
Rules are to encourage and promote the use of ADR, particularly arbitration and
mediation, as an important means to achieve speedy and efficient resolution of disputes,
impartial justice, curb a litigious culture and to de-clog court dockets.
The court shall exercise the power of judicial review as provided by these Special ADR
Rules. Courts shall intervene only in the cases allowed by law or these Special ADR Rules.
Rule 2.2. Policy on arbitration.- (A) Where the parties have agreed to submit their dispute
to arbitration, courts shall refer the parties to arbitration pursuant to Republic Act No. 9285
bearing in mind that such arbitration agreement is the law between the parties and that
they are expected to abide by it in good faith. Further, the courts shall not refuse to refer
parties to arbitration for reasons including, but not limited to, the following:
a. The referral tends to oust a court of its jurisdiction;
b. The court is in a better position to resolve the dispute subject of arbitration;
c. The referral would result in multiplicity of suits;
d. The arbitration proceeding has not commenced;
e. The place of arbitration is in a foreign country;
f. One or more of the issues are legal and one or more of the arbitrators are not
lawyers;
g. One or more of the arbitrators are not Philippine nationals; or
h. One or more of the arbitrators are alleged not to possess the required
qualification under the arbitration agreement or law.
(B) Where court intervention is allowed under ADR Laws or the Special ADR Rules, courts
shall not refuse to grant relief, as provided herein, for any of the following reasons:
a. Prior to the constitution of the arbitral tribunal, the court finds that the principal
action is the subject of an arbitration agreement; or
b. The principal action is already pending before an arbitral tribunal.
The Special ADR Rules recognize the principle of competence-competence, which means
that the arbitral tribunal may initially rule on its own jurisdiction, including any objections
with respect to the existence or validity of the arbitration agreement or any condition
precedent to the filing of a request for arbitration.
The Special ADR Rules recognize the principle of separability of the arbitration clause,
which means that said clause shall be treated as an agreement independent of the other
terms of the contract of which it forms part. A decision that the contract is null and void
shall not entail ipso jure the invalidity of the arbitration clause.
Rule 2.3. Rules governing arbitral proceedings. - The parties are free to agree on the
procedure to be followed in the conduct of arbitral proceedings. Failing such agreement,
the arbitral tribunal may conduct arbitration in the manner it considers appropriate.
Rule 2.4. Policy implementing competence-competence principle. - The arbitral tribunal
shall be accorded the first opportunity or competence to rule on the issue of whether or not
it has the competence or jurisdiction to decide a dispute submitted to it for decision,
including any objection with respect to the existence or validity of the arbitration
agreement. When a court is asked to rule upon issue/s affecting the competence or
jurisdiction of an arbitral tribunal in a dispute brought before it, either before or after the
arbitral tribunal is constituted, the court must exercise judicial restraint and defer to the
competence or jurisdiction of the arbitral tribunal by allowing the arbitral tribunal the first
opportunity to rule upon such issues.
Where the court is asked to make a determination of whether the arbitration agreement is
null and void, inoperative or incapable of being performed, under this policy of judicial
restraint, the court must make no more than a prima facie determination of that issue.
Unless the court, pursuant to such prima facie determination, concludes that the arbitration
agreement is null and void, inoperative or incapable of being performed, the court must
suspend the action before it and refer the parties to arbitration pursuant to the arbitration
agreement.
Rule 2.5. Policy on mediation. - The Special ADR Rules do not apply to Court-Annexed
Mediation, which shall be governed by issuances of the Supreme Court.
Where the parties have agreed to submit their dispute to mediation, a court before which
that dispute was brought shall suspend the proceedings and direct the parties to submit
their dispute to private mediation. If the parties subsequently agree, however, they may opt
to have their dispute settled through Court-Annexed Mediation.
Rule 2.6. Policy on Arbitration-Mediation or Mediation-Arbitration. - No arbitrator shall act
as a mediator in any proceeding in which he is acting as arbitrator; and all negotiations
towards settlement of the dispute must take place without the presence of that arbitrator.
Conversely, no mediator shall act as arbitrator in any proceeding in which he acted as
mediator.
Rule 2.7. Conversion of a settlement agreement to an arbitral award. - Where the parties
to mediation have agreed in the written settlement agreement that the mediator shall
become the sole arbitrator for the dispute or that the settlement agreement shall become
an arbitral award, the sole arbitrator shall issue the settlement agreement as an arbitral
award, which shall be subject to enforcement under the law.
PART II
SPECIFIC COURT RELIEF
RULE 3: JUDICIAL RELIEF INVOLVING THE ISSUE OF EXISTENCE, VALIDITY AND
ENFORCEABILITY OF THE ARBITRATION AGREEMENT
Rule 3.1. When judicial relief is available. - The judicial relief provided in Rule 3, whether
resorted to before or after commencement of arbitration, shall apply only when the place of
arbitration is in the Philippines.
A. Judicial Relief before Commencement of Arbitration
Rule 3.2. Who may file petition. - Any party to an arbitration agreement may petition the
appropriate court to determine any question concerning the existence, validity and
enforceability of such arbitration agreement serving a copy thereof on the respondent in
accordance with Rule 1.4 (A).
Rule 3.3. When the petition may be filed. - The petition for judicial determination of the
existence, validity and/or enforceability of an arbitration agreement may be filed at any time
prior to the commencement of arbitration.
Despite the pendency of the petition provided herein, arbitral proceedings may
nevertheless be commenced and continue to the rendition of an award, while the issue is
pending before the court.
Rule 3.4. Venue. - A petition questioning the existence, validity and enforceability of an
arbitration agreement may be filed before the Regional Trial Court of the place where any
of the petitioners or respondents has his principal place of business or residence.
Rule 3.5. Grounds. - A petition may be granted only if it is shown that the arbitration
agreement is, under the applicable law, invalid, void, unenforceable or inexistent.
Rule 3.6. Contents of petition. - The verified petition shall state the following:
a. The facts showing that the persons named as petitioner or respondent have
legal capacity to sue or be sued;
b. The nature and substance of the dispute between the parties;
c. The grounds and the circumstances relied upon by the petitioner to establish
his position; and
d. The relief/s sought.
Apart from other submissions, the petitioner must attach to the petition an authentic copy
of the arbitration agreement.
Rule 3.7. Comment/Opposition.-The comment/opposition of the respondent must be filed
within fifteen (15) days from service of the petition.
Rule 3.8. Court action. - In resolving the petition, the court must exercise judicial restraint
in accordance with the policy set forth in Rule 2.4, deferring to the competence or
jurisdiction of the arbitral tribunal to rule on its competence or jurisdiction.
Rule 3.9. No forum shopping. - A petition for judicial relief under this Rule may not be
commenced when the existence, validity or enforceability of an arbitration agreement has
been raised as one of the issues in a prior action before the same or another court.
Rule 3.10. Application for interim relief. - If the petitioner also applies for an interim
measure of protection, he must also comply with the requirements of the Special ADR
Rules for the application for an interim measure of protection.
Rule 3.11. Relief against court action. - Where there is a prima facie determination
upholding the arbitration agreement.-A prima facie determination by the court upholding
the existence, validity or enforceability of an arbitration agreement shall not be subject to a
motion for reconsideration, appeal or certiorari.
Such prima facie determination will not, however, prejudice the right of any party to raise
the issue of the existence, validity and enforceability of the arbitration agreement before
the arbitral tribunal or the court in an action to vacate or set aside the arbitral award. In the
latter case, the court’s review of the arbitral tribunal’s ruling upholding the existence,
validity or enforceability of the arbitration agreement shall no longer be limited to a mere
prima facie determination of such issue or issues as prescribed in this Rule, but shall be a
full review of such issue or issues with due regard, however, to the standard for review for
arbitral awards prescribed in these Special ADR Rules.
B. Judicial Relief after Arbitration Commences
Rule 3.12. Who may file petition. - Any party to arbitration may petition the appropriate
court for judicial relief from the ruling of the arbitral tribunal on a preliminary question
upholding or declining its jurisdiction. Should the ruling of the arbitral tribunal declining its
jurisdiction be reversed by the court, the parties shall be free to replace the arbitrators or
any one of them in accordance with the rules that were applicable for the appointment of
arbitrator sought to be replaced.
Rule 3.13. When petition may be filed. - The petition may be filed within thirty (30) days
after having received notice of that ruling by the arbitral tribunal.
Rule 3.14. Venue. - The petition may be filed before the Regional Trial Court of the place
where arbitration is taking place, or where any of the petitioners or respondents has his
principal place of business or residence.
Rule 3.15. Grounds. - The petition may be granted when the court finds that the arbitration
agreement is invalid, inexistent or unenforceable as a result of which the arbitral tribunal
has no jurisdiction to resolve the dispute.
Rule 3.16. Contents of petition. - The petition shall state the following:
a. The facts showing that the person named as petitioner or respondent has legal
capacity to sue or be sued;
b. The nature and substance of the dispute between the parties;
c. The grounds and the circumstances relied upon by the petitioner; and
d. The relief/s sought.
In addition to the submissions, the petitioner shall attach to the petition a copy of the
request for arbitration and the ruling of the arbitral tribunal.
The arbitrators shall be impleaded as nominal parties to the case and shall be notified of
the progress of the case.
Rule 3.17. Comment/Opposition. - The comment/opposition must be filed within fifteen
(15) days from service of the petition.
Rule 3.18. Court action. - (A) Period for resolving the petition.- The court shall render
judgment on the basis of the pleadings filed and the evidence, if any, submitted by the
parties, within thirty (30) days from the time the petition is submitted for resolution.
(B) No injunction of arbitration proceedings. - The court shall not enjoin the arbitration
proceedings during the pendency of the petition.
Judicial recourse to the court shall not prevent the arbitral tribunal from continuing the
proceedings and rendering its award.
(C) When dismissal of petition is appropriate. - The court shall dismiss the petition if it fails
to comply with Rule 3.16 above; or if upon consideration of the grounds alleged and the
legal briefs submitted by the parties, the petition does not appear to be prima facie
meritorious.
Rule 3.19. Relief against court action. - The aggrieved party may file a motion for
reconsideration of the order of the court. The decision of the court shall, however, not be
subject to appeal. The ruling of the court affirming the arbitral tribunal’s jurisdiction shall not
be subject to a petition for certiorari. The ruling of the court that the arbitral tribunal has no
jurisdiction may be the subject of a petition for certiorari.
Rule 3.20. Where no petition is allowed. - Where the arbitral tribunal defers its ruling on
preliminary question regarding its jurisdiction until its final award, the aggrieved party
cannot seek judicial relief to question the deferral and must await the final arbitral award
before seeking appropriate judicial recourse.
A ruling by the arbitral tribunal deferring resolution on the issue of its jurisdiction until final
award, shall not be subject to a motion for reconsideration, appeal or a petition for
certiorari.
Rule 3.21. Rendition of arbitral award before court decision on petition from arbitral
tribunal’s preliminary ruling on jurisdiction. - If the arbitral tribunal renders a final arbitral
award and the Court has not rendered a decision on the petition from the arbitral tribunal’s
preliminary ruling affirming its jurisdiction, that petition shall become ipso facto moot and
academic and shall be dismissed by the Regional Trial Court. The dismissal shall be
without prejudice to the right of the aggrieved party to raise the same issue in a timely
petition to vacate or set aside the award.
Rule 3.22. Arbitral tribunal a nominal party. - The arbitral tribunal is only a nominal party.
The court shall not require the arbitral tribunal to submit any pleadings or written
submissions but may consider the same should the latter participate in the proceedings,
but only as nominal parties thereto.
RULE 4: REFERRAL TO ADR
Rule 4.1. Who makes the request. - A party to a pending action filed in violation of the
arbitration agreement, whether contained in an arbitration clause or in a submission
agreement, may request the court to refer the parties to arbitration in accordance with such
agreement.
Rule 4.2. When to make request. - (A) Where the arbitration agreement exists before the
action is filed. - The request for referral shall be made not later than the pre-trial
conference. After the pre-trial conference, the court will only act upon the request for
referral if it is made with the agreement of all parties to the case.
(B) Submission agreement. - If there is no existing arbitration agreement at the time the
case is filed but the parties subsequently enter into an arbitration agreement, they may
request the court to refer their dispute to arbitration at any time during the proceedings.
Rule 4.3. Contents of request. - The request for referral shall be in the form of a motion,
which shall state that the dispute is covered by an arbitration agreement.
Apart from other submissions, the movant shall attach to his motion an authentic copy of
the arbitration agreement.
The request shall contain a notice of hearing addressed to all parties specifying the date
and time when it would be heard. The party making the request shall serve it upon the
respondent to give him the opportunity to file a comment or opposition as provided in the
immediately succeeding Rule before the hearing.
Rule 4.4. Comment/Opposition. - The comment/opposition must be filed within fifteen (15)
days from service of the petition. The comment/opposition should show that: (a) there is no
agreement to refer the dispute to arbitration; and/or (b) the agreement is null and void;
and/or (c) the subject-matter of the dispute is not capable of settlement or resolution by
arbitration in accordance with Section 6 of the ADR Act.
Rule 4.5. Court action. - After hearing, the court shall stay the action and, considering the
statement of policy embodied in Rule 2.4, above, refer the parties to arbitration if it
finds prima facie, based on the pleadings and supporting documents submitted by the
parties, that there is an arbitration agreement and that the subject-matter of the dispute is
capable of settlement or resolution by arbitration in accordance with Section 6 of the ADR
Act. Otherwise, the court shall continue with the judicial proceedings.
Rule 4.6. No reconsideration, appeal or certiorari. - An order referring the dispute to
arbitration shall be immediately executory and shall not be subject to a motion for
reconsideration, appeal or petition for certiorari.
An order denying the request to refer the dispute to arbitration shall not be subject to an
appeal, but may be the subject of a motion for reconsideration and/or a petition for
certiorari.
Rule 4.7. Multiple actions and parties. - The court shall not decline to refer some or all of
the parties to arbitration for any of the following reasons:
a. Not all of the disputes subject of the civil action may be referred to arbitration;
 b. Not all of the parties to the civil action are bound by the arbitration agreement
and referral to arbitration would result in multiplicity of suits;
c. The issues raised in the civil action could be speedily and efficiently resolved in
its entirety by the court rather than in arbitration;
d. Referral to arbitration does not appear to be the most prudent action; or
e. The stay of the action would prejudice the rights of the parties to the civil action
who are not bound by the arbitration agreement.
The court may, however, issue an order directing the inclusion in arbitration of those
parties who are not bound by the arbitration agreement but who agree to such inclusion
provided those originally bound by it do not object to their inclusion.
Rule 4.8. Arbitration to proceed.- Despite the pendency of the action referred to in Rule
4.1, above, arbitral proceedings may nevertheless be commenced or continued, and an
award may be made, while the action is pending before the court.
RULE 5: INTERIM MEASURES OF PROTECTION
Rule 5.1. Who may ask for interim measures of protection. - A party to an arbitration
agreement may petition the court for interim measures of protection.
Rule 5.2. When to petition. - A petition for an interim measure of protection may be made
(a) before arbitration is commenced, (b) after arbitration is commenced, but before the
constitution of the arbitral tribunal, or (c) after the constitution of the arbitral tribunal and at
any time during arbitral proceedings but, at this stage, only to the extent that the arbitral
tribunal has no power to act or is unable to act effectively.
Rule 5.3. Venue. - A petition for an interim measure of protection may be filed with the
Regional Trial Court, which has jurisdiction over any of the following places:
a. Where the principal place of business of any of the parties to arbitration is
located;
b. Where any of the parties who are individuals resides;
c. Where any of the acts sought to be enjoined are being performed, threatened
to be performed or not being performed; or
d. Where the real property subject of arbitration, or a portion thereof is situated.
Rule 5.4. Grounds. - The following grounds, while not limiting the reasons for the court to
grant an interim measure of protection, indicate the nature of the reasons that the court
shall consider in granting the relief:
a. The need to prevent irreparable loss or injury;
b. The need to provide security for the performance of any obligation;
c. The need to produce or preserve evidence; or
d. The need to compel any other appropriate act or omission.
Rule 5.5. Contents of the petition. - The verified petition must state the following:
a. The fact that there is an arbitration agreement;
b. The fact that the arbitral tribunal has not been constituted, or if constituted, is
unable to act or would be unable to act effectively;
c. A detailed description of the appropriate relief sought;
d. The grounds relied on for the allowance of the petition
Apart from other submissions, the petitioner must attach to his petition an authentic copy of
the arbitration agreement.
Rule 5.6. Type of interim measure of protection that a court may grant.- The following,
among others, are the interim measures of protection that a court may grant:
a. Preliminary injunction directed against a party to arbitration;
b. Preliminary attachment against property or garnishment of funds in the custody
of a bank or a third person;
c. Appointment of a receiver;
d. Detention, preservation, delivery or inspection of property; or,
e. Assistance in the enforcement of an interim measure of protection granted by
the arbitral tribunal, which the latter cannot enforce effectively.
Rule 5.7. Dispensing with prior notice in certain cases. - Prior notice to the other party may
be dispensed with when the petitioner alleges in the petition that there is an urgent need to
either (a) preserve property, (b) prevent the respondent from disposing of, or concealing,
the property, or (c) prevent the relief prayed for from becoming illusory because of prior
notice, and the court finds that the reason/s given by the petitioner are meritorious.
Rule 5.8. Comment/Opposition. - The comment/opposition must be filed within fifteen (15)
days from service of the petition. The opposition or comment should state the reasons why
the interim measure of protection should not be granted.
Rule 5.9. Court action. - After hearing the petition, the court shall balance the relative
interests of the parties and inconveniences that may be caused, and on that basis resolve
the matter within thirty (30) days from (a) submission of the opposition, or (b) upon lapse of
the period to file the same, or (c) from termination of the hearing that the court may set
only if there is a need for clarification or further argument.
If the other parties fail to file their opposition on or before the day of the hearing, the court
shall motu proprio render judgment only on the basis of the allegations in the petition that
are substantiated by supporting documents and limited to what is prayed for therein.
In cases where, based solely on the petition, the court finds that there is an urgent need to
either (a) preserve property, (b) prevent the respondent from disposing of, or concealing,
the property, or (c) prevent the relief prayed for from becoming illusory because of prior
notice, it shall issue an immediately executory temporary order of protection and require
the petitioner, within five (5) days from receipt of that order, to post a bond to answer for
any damage that respondent may suffer as a result of its order. The ex-parte temporary
order of protection shall be valid only for a period of twenty (20) days from the service on
the party required to comply with the order. Within that period, the court shall:
a. Furnish the respondent a copy of the petition and a notice requiring him to
comment thereon on or before the day the petition will be heard; and
b. Notify the parties that the petition shall be heard on a day specified in the
notice, which must not be beyond the twenty (20) day period of the effectivity of
the ex-parte order.
The respondent has the option of having the temporary order of protection lifted by posting
an appropriate counter-bond as determined by the court.
If the respondent requests the court for an extension of the period to file his opposition or
comment or to reset the hearing to a later date, and such request is granted, the court shall
extend the period of validity of the ex-partetemporary order of protection for no more than
twenty days from expiration of the original period.
After notice and hearing, the court may either grant or deny the petition for an interim
measure of protection. The order granting or denying any application for interim measure
of protection in aid of arbitration must indicate that it is issued without prejudice to
subsequent grant, modification, amendment, revision or revocation by an arbitral tribunal.
Rule 5.10. Relief against court action. - If respondent was given an opportunity to be heard
on a petition for an interim measure of protection, any order by the court shall be
immediately executory, but may be the subject of a motion for reconsideration and/or
appeal or, if warranted, a petition for certiorari.
Rule 5.11. Duty of the court to refer back. - The court shall not deny an application for
assistance in implementing or enforcing an interim measure of protection ordered by an
arbitral tribunal on any or all of the following grounds:
a. The arbitral tribunal granted the interim relief ex parte; or
b. The party opposing the application found new material evidence, which the
arbitral tribunal had not considered in granting in the application, and which, if
considered, may produce a different result; or
c. The measure of protection ordered by the arbitral tribunal amends, revokes,
modifies or is inconsistent with an earlier measure of protection issued by the
court.
If it finds that there is sufficient merit in the opposition to the application based on letter (b)
above, the court shall refer the matter back to the arbitral tribunal for appropriate
determination.
Rule 5.12. Security. - The order granting an interim measure of protection may be
conditioned upon the provision of security, performance of an act, or omission thereof,
specified in the order.
The Court may not change or increase or decrease the security ordered by the arbitral
tribunal.
Rule 5.13. Modification, amendment, revision or revocation of court’s previously issued
interim measure of protection. - Any court order granting or denying interim measure/s of
protection is issued without prejudice to subsequent grant, modification, amendment,
revision or revocation by the arbitral tribunal as may be warranted.
An interim measure of protection issued by the arbitral tribunal shall, upon its issuance be
deemed to have ipso jure modified, amended, revised or revoked an interim measure of
protection previously issued by the court to the extent that it is inconsistent with the
subsequent interim measure of protection issued by the arbitral tribunal.
Rule 5.14. Conflict or inconsistency between interim measure of protection issued by the
court and by the arbitral tribunal. - Any question involving a conflict or inconsistency
between an interim measure of protection issued by the court and by the arbitral tribunal
shall be immediately referred by the court to the arbitral tribunal which shall have the
authority to decide such question.
Rule 5.15. Court to defer action on petition for an interim measure of protection when
informed of constitution of the arbitral tribunal. - The court shall defer action on any
pending petition for an interim measure of protection filed by a party to an arbitration
agreement arising from or in connection with a dispute thereunder upon being informed
that an arbitral tribunal has been constituted pursuant to such agreement. The court may
act upon such petition only if it is established by the petitioner that the arbitral tribunal has
no power to act on any such interim measure of protection or is unable to act thereon
effectively.
Rule 5.16. Court assistance should arbitral tribunal be unable to effectively enforce interim
measure of protection. - The court shall assist in the enforcement of an interim measure of
protection issued by the arbitral tribunal which it is unable to effectively enforce.
RULE 6: APPOINTMENT OF ARBITRATORS
Rule 6.1. When the court may act as Appointing Authority. - The court shall act as
Appointing Authority only in the following instances:
a. Where any of the parties in an institutional arbitration failed or refused to
appoint an arbitrator or when the parties have failed to reach an agreement on
the sole arbitrator (in an arbitration before a sole arbitrator) or when the two
designated arbitrators have failed to reach an agreement on the third or presiding
arbitrator (in an arbitration before a panel of three arbitrators), and the institution
under whose rules arbitration is to be conducted fails or is unable to perform its
duty as appointing authority within a reasonable time from receipt of the request
for appointment;
b. In all instances where arbitration is ad hoc and the parties failed to provide a
method for appointing or replacing an arbitrator, or substitute arbitrator, or the
method agreed upon is ineffective, and the National President of the Integrated
Bar of the Philippines (IBP) or his duly authorized representative fails or refuses
to act within such period as may be allowed under the pertinent rules of the IBP
or within such period as may be agreed upon by the parties, or in the absence
thereof, within thirty (30) days from receipt of such request for appointment;
c. Where the parties agreed that their dispute shall be resolved by three
arbitrators but no method of appointing those arbitrators has been agreed upon,
each party shall appoint one arbitrator and the two arbitrators thus appointed
shall appoint a third arbitrator. If a party fails to appoint his arbitrator within thirty
(30) days of receipt of a request to do so from the other party, or if the two
arbitrators fail to agree on the third arbitrator within a reasonable time from their
appointment, the appointment shall be made by the Appointing Authority. If the
latter fails or refuses to act or appoint an arbitrator within a reasonable time from
receipt of the request to do so, any party or the appointed arbitrator/s may
request the court to appoint an arbitrator or the third arbitrator as the case may
be.
Rule 6.2. Who may request for appointment. - Any party to an arbitration may request the
court to act as an Appointing Authority in the instances specified in Rule 6.1 above.
Rule 6.3. Venue. - The petition for appointment of arbitrator may be filed, at the option of
the petitioner, in the Regional Trial Court (a) where the principal place of business of any of
the parties is located, (b) if any of the parties are individuals, where those individuals
reside, or (c) in the National Capital Region.
Rule 6.4. Contents of the petition. -The petition shall state the following:
a. The general nature of the dispute;
b. If the parties agreed on an appointment procedure, a description of that
procedure with reference to the agreement where such may be found;
c. The number of arbitrators agreed upon or the absence of any agreement as to
the number of arbitrators;
d. The special qualifications that the arbitrator/s must possess, if any, that were
agreed upon by the parties;
e. The fact that the Appointing Authority, without justifiable cause, has failed or
refused to act as such within the time prescribed or in the absence thereof, within
a reasonable time, from the date a request is made; and
f. The petitioner is not the cause of the delay in, or failure of, the appointment of
the arbitrator.
Apart from other submissions, the petitioner must attach to the petition (a) an authentic
copy of the arbitration agreement, and (b) proof that the Appointing Authority has been
notified of the filing of the petition for appointment with the court.
Rule 6.5. Comment/Opposition. - The comment/opposition must be filed within fifteen (15)
days from service of the petition.
Rule 6.6. Submission of list of arbitrators. - The court may, at its option, also require each
party to submit a list of not less than three (3) proposed arbitrators together with their
curriculum vitae.
Rule 6.7. Court action. - After hearing, if the court finds merit in the petition, it shall appoint
an arbitrator; otherwise, it shall dismiss the petition.
In making the appointment, the court shall have regard to such considerations as are likely
to secure the appointment of an independent and impartial arbitrator.
At any time after the petition is filed and before the court makes an appointment, it shall
also dismiss the petition upon being informed that the Appointing Authority has already
made the appointment.
Rule 6.8. Forum shopping prohibited. - When there is a pending petition in another court to
declare the arbitration agreement inexistent, invalid, unenforceable, on account of which
the respondent failed or refused to participate in the selection and appointment of a sole
arbitrator or to appoint a party-nominated arbitrator, the petition filed under this rule shall
be dismissed.
Rule 6.9. Relief against court action. - If the court appoints an arbitrator, the order
appointing an arbitrator shall be immediately executory and shall not be the subject of a
motion for reconsideration, appeal or certiorari. An order of the court denying the petition
for appointment of an arbitrator may, however, be the subject of a motion for
reconsideration, appeal or certiorari.
RULE 7: CHALLENGE TO APPOINTMENT OF ARBITRATOR
Rule 7.1. Who may challenge. - Any of the parties to an arbitration may challenge an
arbitrator.
Rule 7.2. When challenge may be raised in court. - When an arbitrator is challenged
before the arbitral tribunal under the procedure agreed upon by the parties or under the
procedure provided for in Article 13 (2) of the Model Law and the challenge is not
successful, the aggrieved party may request the Appointing Authority to rule on the
challenge, and it is only when such Appointing Authority fails or refuses to act on the
challenge within such period as may be allowed under the applicable rule or in the
absence thereof, within thirty (30) days from receipt of the request, that the aggrieved party
may renew the challenge in court.
Rule 7.3. Venue. - The challenge shall be filed with the Regional Trial Court (a) where the
principal place of business of any of the parties is located, (b) if any of the parties are
individuals, where those individuals reside, or (c) in the National Capital Region.
Rule 7.4. Grounds. - An arbitrator may be challenged on any of the grounds for challenge
provided for in Republic Act No. 9285 and its implementing rules, Republic Act No. 876 or
the Model Law. The nationality or professional qualification of an arbitrator is not a ground
to challenge an arbitrator unless the parties have specified in their arbitration agreement a
nationality and/or professional qualification for appointment as arbitrator.
Rule 7.5. Contents of the petition. - The petition shall state the following:
a. The name/s of the arbitrator/s challenged and his/their address;
b. The grounds for the challenge;
c. The facts showing that the ground for the challenge has been expressly or
impliedly rejected by the challenged arbitrator/s; and
d. The facts showing that the Appointing Authority failed or refused to act on the
challenge.
The court shall dismiss the petition motu proprio unless it is clearly alleged therein that the
Appointing Authority charged with deciding the challenge, after the resolution of the arbitral
tribunal rejecting the challenge is raised or contested before such Appointing Authority,
failed or refused to act on the challenge within thirty (30) days from receipt of the request
or within such longer period as may apply or as may have been agreed upon by the
parties.
Rule 7.6. Comment/Opposition. - The challenged arbitrator or other parties may file a
comment or opposition within fifteen (15) days from service of the petition.
Rule 7.7. Court action. - After hearing, the court shall remove the challenged arbitrator if it
finds merit in the petition; otherwise, it shall dismiss the petition.
The court shall allow the challenged arbitrator who subsequently agrees to accept the
challenge to withdraw as arbitrator.
The court shall accept the challenge and remove the arbitrator in the following cases:
a. The party or parties who named and appointed the challenged arbitrator agree
to the challenge and withdraw the appointment.
b. The other arbitrators in the arbitral tribunal agree to the removal of the
challenged arbitrator; and
c. The challenged arbitrator fails or refuses to submit his comment on the petition
or the brief of legal arguments as directed by the court, or in such comment or
legal brief, he fails to object to his removal following the challenge.
The court shall decide the challenge on the basis of evidence submitted by the parties.
The court will decide the challenge on the basis of the evidence submitted by the parties in
the following instances:
a. The other arbitrators in the arbitral tribunal agree to the removal of the
challenged arbitrator; and
b. If the challenged arbitrator fails or refuses to submit his comment on the
petition or the brief of legal arguments as directed by the court, or in such
comment or brief of legal arguments, he fails to object to his removal following
the challenge.
Rule 7.8. No motion for reconsideration, appeal or certiorari. - Any order of the court
resolving the petition shall be immediately executory and shall not be the subject of a
motion for reconsideration, appeal, or certiorari.
Rule 7.9. Reimbursement of expenses and reasonable compensation to challenged
arbitrator. - Unless the bad faith of the challenged arbitrator is established with reasonable
certainty by concealing or failing to disclose a ground for his disqualification, the
challenged arbitrator shall be entitled to reimbursement of all reasonable expenses he may
have incurred in attending to the arbitration and to a reasonable compensation for his work
on the arbitration. Such expenses include, but shall not be limited to, transportation and
hotel expenses, if any. A reasonable compensation shall be paid to the challenged
arbitrator on the basis of the length of time he has devoted to the arbitration and taking into
consideration his stature and reputation as an arbitrator. The request for reimbursement of
expenses and for payment of a reasonable compensation shall be filed in the same case
and in the court where the petition to replace the challenged arbitrator was filed. The court,
in determining the amount of the award to the challenged arbitrator, shall receive evidence
of expenses to be reimbursed, which may consist of air tickets, hotel bills and expenses,
and inland transportation. The court shall direct the challenging party to pay the amount of
the award to the court for the account of the challenged arbitrator, in default of which the
court may issue a writ of execution to enforce the award.
RULE 8: TERMINATION OF THE MANDATE OF ARBITRATOR
Rule 8.1. Who may request termination and on what grounds.- Any of the parties to an
arbitration may request for the termination of the mandate of an arbitrator where an
arbitrator becomes de jure or de facto unable to perform his function or for other reasons
fails to act without undue delay and that arbitrator, upon request of any party, fails or
refuses to withdraw from his office.
Rule 8.2. When to request. - If an arbitrator refuses to withdraw from his office, and
subsequently, the Appointing Authority fails or refuses to decide on the termination of the
mandate of that arbitrator within such period as may be allowed under the applicable rule
or, in the absence thereof, within thirty (30) days from the time the request is brought
before him, any party may file with the court a petition to terminate the mandate of that
arbitrator.
Rule 8.3. Venue. - A petition to terminate the mandate of an arbitrator may, at that
petitioner’s option, be filed with the Regional Trial Court (a) where the principal place of
business of any of the parties is located, (b) where any of the parties who are individuals
resides, or (c) in the National Capital Region.
Rule 8.4. Contents of the petition. - The petition shall state the following:
a. The name of the arbitrator whose mandate is sought to be terminated;
b. The ground/s for termination;
c. The fact that one or all of the parties had requested the arbitrator to withdraw
but he failed or refused to do so;
d. The fact that one or all of the parties requested the Appointing Authority to act
on the request for the termination of the mandate of the arbitrator and failure or
inability of the Appointing Authority to act within thirty (30) days from the request
of a party or parties or within such period as may have been agreed upon by the
parties or allowed under the applicable rule.
The petitioner shall further allege that one or all of the parties had requested the arbitrator
to withdraw but he failed or refused to do so.
Rule 8.5. Comment/Opposition. - The comment/opposition must be filed within fifteen (15)
days from service of the petition.
Rule 8.6. Court action. - After hearing, if the court finds merit in the petition, it shall
terminate the mandate of the arbitrator who refuses to withdraw from his office; otherwise,
it shall dismiss the petition.
Rule 8.7. No motion for reconsideration or appeal. - Any order of the court resolving the
petition shall be immediately executory and shall not be subject of a motion for
reconsideration, appeal or petition for certiorari.
Rule 8.8. Appointment of substitute arbitrator. - Where the mandate of an arbitrator is
terminated, or he withdraws from office for any other reason, or because of his mandate is
revoked by agreement of the parties or is terminated for any other reason, a substitute
arbitrator shall be appointed according to the rules that were applicable to the appointment
of the arbitrator being replaced.
RULE 9: ASSISTANCE IN TAKING EVIDENCE
Rule 9.1. Who may request assistance. - Any party to an arbitration, whether domestic or
foreign, may request the court to provide assistance in taking evidence.
Rule 9.2. When assistance may be sought. - Assistance may be sought at any time during
the course of the arbitral proceedings when the need arises.
Rule 9.3. Venue. - A petition for assistance in taking evidence may, at the option of the
petitioner, be filed with Regional Trial Court where (a) arbitration proceedings are taking
place, (b) the witnesses reside or may be found, or (c) where the evidence may be found.
Rule 9.4. Ground. - The court may grant or execute the request for assistance in taking
evidence within its competence and according to the rules of evidence.
Rule 9.5. Type of assistance. - A party requiring assistance in the taking of evidence may
petition the court to direct any person, including a representative of a corporation,
association, partnership or other entity (other than a party to the ADR proceedings or its
officers) found in the Philippines, for any of the following:
a. To comply with a subpoena ad testificandum and/or subpoena duces tecum;
b. To appear as a witness before an officer for the taking of his deposition upon
oral examination or by written interrogatories;
c. To allow the physical examination of the condition of persons, or the inspection
of things or premises and, when appropriate, to allow the recording and/or
documentation of condition of persons, things or premises (i.e., photographs,
video and other means of recording/documentation);
d. To allow the examination and copying of documents; and
e. To perform any similar acts.
Rule 9.6. Contents of the petition. - The petition must state the following:
a. The fact that there is an ongoing arbitration proceeding even if such
proceeding could not continue due to some legal impediments;
b. The arbitral tribunal ordered the taking of evidence or the party desires to
present evidence to the arbitral tribunal;
c. Materiality or relevance of the evidence to be taken; and
d. The names and addresses of the intended witness/es, place where the
evidence may be found, the place where the premises to be inspected are
located or the place where the acts required are to be done.
Rule 9.7. Comment/Opposition. - The comment/opposition must be filed within fifteen (15)
days from service of the petition.
Rule 9.8. Court action. - If the evidence sought is not privileged, and is material and
relevant, the court shall grant the assistance in taking evidence requested and shall order
petitioner to pay costs attendant to such assistance.
Rule 9.9. Relief against court action. - The order granting assistance in taking evidence
shall be immediately executory and not subject to reconsideration or appeal. If the court
declines to grant assistance in taking evidence, the petitioner may file a motion for
reconsideration or appeal.
Rule 9.10. Perpetuation of testimony before the arbitral tribunal is constituted. - At anytime
before arbitration is commenced or before the arbitral tribunal is constituted, any person
who desires to perpetuate his testimony or that of another person may do so in accordance
with Rule 24 of the Rules of Court.
Rule 9.11. Consequence of disobedience. - The court may impose the appropriate
sanction on any person who disobeys its order to testify when required or perform any act
required of him.
RULE 10: CONFIDENTIALITY/PROTECTIVE ORDERS
Rule 10.1. Who may request confidentiality. - A party, counsel or witness who disclosed or
who was compelled to disclose information relative to the subject of ADR under
circumstances that would create a reasonable expectation, on behalf of the source, that
the information shall be kept confidential has the right to prevent such information from
being further disclosed without the express written consent of the source or the party who
made the disclosure.
Rule 10.2. When request made. - A party may request a protective order at anytime there
is a need to enforce the confidentiality of the information obtained, or to be obtained, in
ADR proceedings.
Rule 10.3. Venue. - A petition for a protective order may be filed with the Regional Trial
Court where that order would be implemented.
If there is a pending court proceeding in which the information obtained in an ADR
proceeding is required to be divulged or is being divulged, the party seeking to enforce the
confidentiality of the information may file a motion with the court where the proceedings are
pending to enjoin the confidential information from being divulged or to suppress
confidential information.
Rule 10.4. Grounds. - A protective order may be granted only if it is shown that the
applicant would be materially prejudiced by an unauthorized disclosure of the information
obtained, or to be obtained, during an ADR proceeding.
Rule 10.5. Contents of the motion or petition. - The petition or motion must state the
following:
a. That the information sought to be protected was obtained, or would be
obtained, during an ADR proceeding;
b. The applicant would be materially prejudiced by the disclosure of that
information;
c. The person or persons who are being asked to divulge the confidential
information participated in an ADR proceedings; and
d. The time, date and place when the ADR proceedings took place.
Apart from the other submissions, the movant must set the motion for hearing and contain
a notice of hearing in accordance with Rule 15 of the Rules of Court.
Rule 10.6. Notice. - Notice of a request for a protective order made through a motion shall
be made to the opposing parties in accordance with Rule 15 of the Rules of Court.
Rule 10.7. Comment/Opposition. - The comment/opposition must be filed within fifteen
(15) days from service of the petition. The opposition or comment may be accompanied by
written proof that (a) the information is not confidential, (b) the information was not
obtained during an ADR proceeding, (c) there was a waiver of confidentiality, or (d) the
petitioner/movant is precluded from asserting confidentiality.
Rule 10.8. Court action. - If the court finds the petition or motion meritorious, it shall issue
an order enjoining a person or persons from divulging confidential information.
In resolving the petition or motion, the courts shall be guided by the following principles
applicable to all ADR proceedings: Confidential information shall not be subject to
discovery and shall be inadmissible in any adversarial proceeding, whether judicial or
quasi judicial. However, evidence or information that is otherwise admissible or subject to
discovery does not become inadmissible or protected from discovery solely by reason of its
use therein.
For mediation proceedings, the court shall be further guided by the following principles:
a. Information obtained through mediation shall be privileged and confidential.
b. A party, a mediator, or a nonparty participant may refuse to disclose and may
prevent any other person from disclosing a mediation communication.
c. In such an adversarial proceeding, the following persons involved or previously
involved in a mediation may not be compelled to disclose confidential information
obtained during the mediation: (1) the parties to the dispute; (2) the mediator or
mediators; (3) the counsel for the parties: (4) the nonparty participants; (5) any
persons hired or engaged in connection with the mediation as secretary,
stenographer; clerk or assistant; and (6) any other person who obtains or
possesses confidential information by reason of his/ her profession.
 d. The protection of the ADR Laws shall continue to apply even if a mediator is
found to have failed to act impartially.
e. A mediator may not be called to testify to provide information gathered in
mediation. A mediator who is wrongfully subpoenaed shall be reimbursed the full
cost of his attorney fees and related expenses.
Rule 10.9. Relief against court action. - The order enjoining a person or persons from
divulging confidential information shall be immediately executory and may not be enjoined
while the order is being questioned with the appellate courts.
If the court declines to enjoin a person or persons from divulging confidential information,
the petitioner may file a motion for reconsideration or appeal.
Rule 10.10. Consequence of disobedience. - Any person who disobeys the order of the
court to cease from divulging confidential information shall be imposed the proper sanction
by the court.
RULE 11: CONFIRMATION, CORRECTION OR VACATION OF AWARD IN DOMESTIC
ARBITRATION
Rule 11.1. Who may request confirmation, correction or vacation. - Any party to a domestic
arbitration may petition the court to confirm, correct or vacate a domestic arbitral award.
Rule 11.2. When to request confirmation, correction/modification or vacation. -
(A) Confirmation. - At any time after the lapse of thirty (30) days from receipt by the
petitioner of the arbitral award, he may petition the court to confirm that award.
(B) Correction/Modification. - Not later than thirty (30) days from receipt of the arbitral
award, a party may petition the court to correct/modify that award.
(C) Vacation. - Not later than thirty (30) days from receipt of the arbitral award, a party may
petition the court to vacate that award.
(D) A petition to vacate the arbitral award may be filed, in opposition to a petition to confirm
the arbitral award, not later than thirty (30) days from receipt of the award by the petitioner.
A petition to vacate the arbitral award filed beyond the reglementary period shall be
dismissed.
(E) A petition to confirm the arbitral award may be filed, in opposition to a petition to vacate
the arbitral award, at any time after the petition to vacate such arbitral award is filed. The
dismissal of the petition to vacate the arbitral award for having been filed beyond the
reglementary period shall not result in the dismissal of the petition for the confirmation of
such arbitral award.
(F) The filing of a petition to confirm an arbitral award shall not authorize the filing of a
belated petition to vacate or set aside such award in opposition thereto.
(G) A petition to correct an arbitral award may be included as part of a petition to confirm
the arbitral award or as a petition to confirm that award.
Rule 11.3. Venue. - The petition for confirmation, correction/modification or vacation of a
domestic arbitral award may be filed with Regional Trial Court having jurisdiction over the
place in which one of the parties is doing business, where any of the parties reside or
where arbitration proceedings were conducted.
Rule 11.4. Grounds. - (A) To vacate an arbitral award. - The arbitral award may be vacated
on the following grounds:
a. The arbitral award was procured through corruption, fraud or other undue
means;
b. There was evident partiality or corruption in the arbitral tribunal or any of its
members;
c. The arbitral tribunal was guilty of misconduct or any form of misbehavior that
has materially prejudiced the rights of any party such as refusing to postpone a
hearing upon sufficient cause shown or to hear evidence pertinent and material
to the controversy;
d. One or more of the arbitrators was disqualified to act as such under the law
and willfully refrained from disclosing such disqualification; or
e. The arbitral tribunal exceeded its powers, or so imperfectly executed them,
such that a complete, final and definite award upon the subject matter submitted
to them was not made.
The award may also be vacated on any or all of the following grounds:
a. The arbitration agreement did not exist, or is invalid for any ground for the
revocation of a contract or is otherwise unenforceable; or
b. A party to arbitration is a minor or a person judicially declared to be
incompetent.
The petition to vacate an arbitral award on the ground that the party to arbitration is a
minor or a person judicially declared to be incompetent shall be filed only on behalf of the
minor or incompetent and shall allege that (a) the other party to arbitration had knowingly
entered into a submission or agreement with such minor or incompetent, or (b) the
submission to arbitration was made by a guardian or guardian ad litem who was not
authorized to do so by a competent court.
In deciding the petition to vacate the arbitral award, the court shall disregard any other
ground than those enumerated above.
(B) To correct/modify an arbitral award. - The Court may correct/modify or order the arbitral
tribunal to correct/modify the arbitral award in the following cases:
 a. Where there was an evident miscalculation of figures or an evident mistake in
the description of any person, thing or property referred to in the award;
b. Where the arbitrators have awarded upon a matter not submitted to them, not
affecting the merits of the decision upon the matter submitted;
c. Where the arbitrators have omitted to resolve an issue submitted to them for
resolution; or
d. Where the award is imperfect in a matter of form not affecting the merits of the
controversy, and if it had been a commissioner’s report, the defect could have
been amended or disregarded by the Court.
Rule 11.5. Form of petition. - An application to vacate an arbitral award shall be in the form
of a petition to vacate or as a petition to vacate in opposition to a petition to confirm the
same award.
An application to correct/modify an arbitral award may be included in a petition to confirm
an arbitral award or in a petition to vacate in opposition to confirm the same award.
When a petition to confirm an arbitral award is pending before a court, the party seeking to
vacate or correct/modify said award may only apply for those reliefs through a petition to
vacate or correct/modify the award in opposition to the petition to confirm the award
provided that such petition to vacate or correct/modify is filed within thirty (30) days from
his receipt of the award. A petition to vacate or correct/modify an arbitral award filed in
another court or in a separate case before the same court shall be dismissed, upon
appropriate motion, as a violation of the rule against forum-shopping.
When a petition to vacate or correct/modify an arbitral award is pending before a court, the
party seeking to confirm said award may only apply for that relief through a petition to
confirm the same award in opposition to the petition to vacate or correct/modify the award.
A petition to confirm or correct/modify an arbitral award filed as separate proceeding in
another court or in a different case before the same court shall be dismissed, upon
appropriate motion, as a violation of the rule against forum shopping.
As an alternative to the dismissal of a second petition for confirmation, vacation or
correction/modification of an arbitral award filed in violation of the non-forum shopping rule,
the court or courts concerned may allow the consolidation of the two proceedings in one
court and in one case.
Where the petition to confirm the award and petition to vacate or correct/modify were
simultaneously filed by the parties in the same court or in different courts in the Philippines,
upon motion of either party, the court may order the consolidation of the two cases before
either court.
In all instances, the petition must be verified by a person who has knowledge of the
jurisdictional facts.
Rule 11.6. Contents of petition. - The petition must state the following:
a. The addresses of the parties and any change thereof;
b. The jurisdictional issues raised by a party during arbitration proceedings;
c. The grounds relied upon by the parties in seeking the vacation of the arbitral
award whether the petition is a petition for the vacation or setting aside of the
arbitral award or a petition in opposition to a petition to confirm the award; and
d. A statement of the date of receipt of the arbitral award and the circumstances
under which it was received by the petitioner.
Apart from other submissions, the petitioner must attach to the petition the following:
a. An authentic copy of the arbitration agreement;
b. An authentic copy of the arbitral award;
c. A certification against forum shopping executed by the applicant in accordance
with Section 5 of Rule 7 of the Rules of Court; and
d. An authentic copy or authentic copies of the appointment of an arbitral tribunal.
Rule 11.7. 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 allowing him to file a comment or opposition thereto within
fifteen (15) days from receipt of the petition. In lieu of an opposition, the respondent may
file a petition in opposition to the petition.
The petitioner may within fifteen (15) days from receipt of the petition in opposition thereto
file a reply.
Rule 11.8. Hearing. - If the Court finds from the petition or petition in opposition thereto
that there are issues of fact, it shall require the parties, within a period of not more than
fifteen (15) days from receipt of the order, to simultaneously submit the affidavits of all of
their witnesses and reply affidavits within ten (10) days from receipt of the affidavits to be
replied to. There shall be attached to the affidavits or reply affidavits documents relied
upon in support of the statements of fact in such affidavits or reply affidavits.
If the petition or the petition in opposition thereto is one for vacation of an arbitral award,
the interested party in arbitration may oppose the petition or the petition in opposition
thereto for the reason that the grounds cited in the petition or the petition in opposition
thereto, assuming them to be true, do not affect the merits of the case and may be cured
or remedied. Moreover, the interested party may request the court to suspend the
proceedings for vacation for a period of time and to direct the arbitral tribunal to reopen
and conduct a new hearing and take such other action as will eliminate the grounds for
vacation of the award. The opposition shall be supported by a brief of legal arguments to
show the existence of a sufficient legal basis for the opposition.
If the ground of the petition to vacate an arbitral award is that the arbitration agreement did
not exist, is invalid or otherwise unenforceable, and an earlier petition for judicial relief
under Rule 3 had been filed, a copy of such petition and of the decision or final order of the
court shall be attached thereto. But if the ground was raised before the arbitral tribunal in a
motion to dismiss filed not later than the submission of its answer, and the arbitral tribunal
ruled in favor of its own jurisdiction as a preliminary question which was appealed by a
party to the Regional Trial Court, a copy of the order, ruling or preliminary award or
decision of the arbitral tribunal, the appeal therefrom to the Court and the order or decision
of the Court shall all be attached to the petition.
If the ground of the petition is that the petitioner is an infant or a person judicially declared
to be incompetent, 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.
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.
Rule 11.9. Court action. - Unless a ground to vacate an arbitral award under Rule 11.5
above is fully established, the court shall confirm the award.
An arbitral award shall enjoy the presumption that it was made and released in due course
of arbitration and is subject to confirmation by the court
In resolving the petition or petition in opposition thereto in accordance with these Special
ADR Rules, the court shall either confirm or vacate the arbitral award. The court shall not
disturb the arbitral tribunal’s determination of facts and/or interpretation of law.
In a petition to vacate an award or in petition to vacate an award in opposition to a petition
to confirm the award, the petitioner may simultaneously apply with the Court to refer the
case back to the same arbitral tribunal for the purpose of making a new or revised award
or to direct a new hearing, or in the appropriate case, order the new hearing before a new
arbitral tribunal, the members of which shall be chosen in the manner provided in the
arbitration agreement or submission, or the law. In the latter case, any provision limiting
the time in which the arbitral tribunal may make a decision shall be deemed applicable to
the new arbitral tribunal.
In referring the case back to the arbitral tribunal or to a new arbitral tribunal pursuant to
Rule 24 of Republic Act No. 876, the court 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.
RULE 12: RECOGNITION AND ENFORCEMENT OR SETTING ASIDE OF AN
INTERNATIONALCOMMERCIAL ARBITRATION AWARD
Rule 12.1. Who may request recognition and enforcement or setting aside. - Any party to
an international commercial arbitration in the Philippines may petition the proper court to
recognize and enforce or set aside an arbitral award.
Rule 12.2. When to file petition. - (A) Petition to recognize and enforce. - The petition for
enforcement and recognition of an arbitral award may be filed anytime from receipt of the
award. If, however, a timely petition to set aside an arbitral award is filed, the opposing
party must file therein and in opposition thereto the petition for recognition and
enforcement of the same award within the period for filing an opposition.
(B) Petition to set aside. - The petition to set aside an arbitral award may only be filed
within three (3) months from the time the petitioner receives a copy thereof. If a timely
request is made with the arbitral tribunal for correction, interpretation or additional award,
the three (3) month period shall be counted from the time the petitioner receives the
resolution by the arbitral tribunal of that request.
A petition to set aside can no longer be filed after the lapse of the three (3) month period.
The dismissal of a petition to set aside an arbitral award for being time-barred shall not
automatically result in the approval of the petition filed therein and in opposition thereto for
recognition and enforcement of the same award. Failure to file a petition to set aside shall
preclude a party from raising grounds to resist enforcement of the award.
Rule 12.3. Venue. - A petition to recognize and enforce or set aside an arbitral award may,
at the option of the petitioner, be filed with the 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.
Rule 12.4. Grounds to set aside or resist enforcement. - The court may set aside or refuse
the enforcement of the arbitral award only if:
a. The party making the application furnishes proof that:
(i). A party to the arbitration agreement was under some incapacity, or
the said agreement is not valid under the law to which the parties have
subjected it or, failing any indication thereof, under Philippine law; or
(ii). The party making the application to set aside or resist enforcement
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
(iii). 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 decisions on matters submitted to arbitration can be
separated from those not so submitted, only that part of the award
which contains decisions on matters not submitted to arbitration may be
set aside or only that part of the award which contains decisions on
matters submitted to arbitration may be enforced; or
 (iv). The composition of the arbitral tribunal or the arbitral procedure
was not in accordance with the agreement of the parties, unless such
agreement was in conflict with a provision of Philippine law from which
the parties cannot derogate, or, failing such agreement, was not in
accordance with Philippine law;
b. The court finds that:
(i). The subject-matter of the dispute is not capable of settlement by
arbitration under the law of the Philippines; or
(ii). The recognition or enforcement of the award would be contrary to
public policy.
In deciding the petition, the Court shall disregard any other ground to set aside or enforce
the arbitral award other than those enumerated above.
The petition to set-aside or a pleading resisting the enforcement of an arbitral award on the
ground that a party was a minor or an incompetent shall be filed only on behalf of the minor
or incompetent and shall allege that (a) the other party to arbitration had knowingly entered
into a submission or agreement with such minor or incompetent, or (b) the submission to
arbitration was made by a guardian or guardian ad litem who was not authorized to do so
by a competent court.
Rule 12.5. 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.
Rule 12.6. Form. - The application to recognize and enforce or set aside an arbitral award,
whether made through a petition to recognize and enforce or to set aside or as a petition to
set aside the award in opposition thereto, or through a petition to set aside or petition to
recognize and enforce in opposition thereto, shall be verified by a person who has
personal knowledge of the facts stated therein.
When a petition to recognize and enforce an arbitral award is pending, the application to
set it aside, if not yet time-barred, shall be made through a petition to set aside the same
award in the same proceedings.
When a timely petition to set aside an arbitral award is filed, the opposing party may file a
petition for recognition and enforcement of the same award in opposition thereto.
Rule 12.7. Contents of petition. - (A) Petition to recognize and enforce. - The petition to
recognize and enforce or petition to set aside in opposition thereto, or petition to set aside
or petition to recognize and enforce in opposition thereto, shall state the following:
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 in accordance with Sections 4 and 5 of Rule 7 of the Rules of Court;
and
d. An authentic copy or authentic copies of the appointment of an arbitral tribunal.
(B) Petition to set aside. - The petition to set aside or petition to set aside in opposition to a
petition to recognize and enforce an arbitral award in international commercial arbitration
shall have the same contents as a petition to recognize and enforce or petition to
recognize and enforce in opposition to a petition to set aside an arbitral award. In addition,
the said petitions should state the grounds relied upon to set it aside.
Further, if the ground of the petition to set aside is that 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.
In either case, if another court was previously requested to resolve and/or has resolved, on
appeal, the arbitral tribunal’s preliminary determination in favor of its own jurisdiction, the
petitioner shall apprise the court before which the petition to recognize and enforce or set
aside is pending of the status of the appeal or its resolution.
Rule 12.8. 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.
The petitioner may within fifteen (15) days from receipt of the petition to set aside in
opposition to a petition to recognize and enforce, or from receipt of the petition to
recognize and enforce in opposition to a petition to set aside, file a reply.
Rule 12.9. Submission of documents. - If the court finds that the issue between the parties
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 the court finds from the petition or petition in opposition thereto that there are issues of
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. There shall be attached to the
affidavits or reply affidavits, all documents relied upon in support of the statements of fact
in such affidavits or reply affidavits.
Rule 12.10. 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.
Rule 12.11. Suspension of proceedings to set aside. - The court when asked to set aside
an arbitral award may, where appropriate and upon request by a party, suspend the
proceedings for a period of time determined by it to give the arbitral tribunal an opportunity
to resume the arbitral proceedings or 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.
The court when asked to set aside an arbitral award may also, when the preliminary ruling
of an arbitral tribunal affirming its jurisdiction to act on the matter before it had been
appealed by the party aggrieved by such preliminary ruling to the court, suspend the
proceedings to set aside to await the ruling of the court on such pending appeal or, in the
alternative, consolidate the proceedings to set aside with the earlier appeal.
Rule 12.12. 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.
Rule 12.13. Judgment 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.
Rule 12.14. Costs. - Unless otherwise agreed upon by the parties in writing, at the time the
case is submitted to the court for decision, the party praying for recognition and
enforcement or setting aside of an arbitral award shall submit a statement under oath
confirming the costs he has incurred only in the proceedings for such recognition and
enforcement or setting aside. The costs shall include the attorney’s fees the party has paid
or is committed to pay to his counsel of record.
The prevailing party shall be entitled to an award of costs, which shall include reasonable
attorney’s fees of the prevailing party against the unsuccessful party. The court shall
determine the reasonableness of the claim for attorney’s fees.
RULE 13: RECOGNITION AND ENFORCEMENT OF A FOREIGN ARBITRAL AWARD
Rule 13.1. Who may request recognition and enforcement. - Any party to a foreign
arbitration may petition the court to recognize and enforce a foreign arbitral award.
Rule 13.2. When to petition. - At any time after receipt of a foreign arbitral award, any party
to arbitration may petition the proper Regional Trial Court to recognize and enforce such
award.
Rule 13.3. Venue. - The petition to recognize and enforce a foreign arbitral award shall be
filed, at the option of the petitioner, with the 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 those individuals resides, or (e) in the National
Capital Judicial Region.
Rule 13.4. Governing law and grounds to refuse recognition and enforcement. - The
recognition and enforcement of a foreign arbitral award shall be governed by the 1958 New
York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the
"New York Convention") and this Rule. The court may, upon grounds of comity and
reciprocity, recognize and enforce a foreign arbitral award made in a country that is not a
signatory to the New York Convention as if it were a Convention Award.
A Philippine court shall not set aside a foreign arbitral award but may refuse it recognition
and enforcement on any or all of the following grounds:
a. The party making the application to refuse recognition and enforcement of the
award furnishes proof that:
(i). A party to the arbitration agreement was under some incapacity; or
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; or
(ii). 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
 (iii). 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 decisions on matters submitted to arbitration can be
separated from those not so submitted, only that part of the award
which contains decisions on matters not submitted to arbitration may be
set aside; or
(iv). The composition of the arbitral tribunal 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
(v). 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; or
b. The court finds that:
(i). The subject-matter of the dispute is not capable of settlement or
resolution by arbitration under Philippine law; or
(ii). The recognition or enforcement of the award would be contrary to
public policy.
The court shall disregard any ground for opposing the recognition and enforcement of a
foreign arbitral award other than those enumerated above.
Rule 13.5. Contents of petition. - The petition shall state the following:
a. The addresses of the parties to arbitration;
b. In the absence of any indication in the award, the country where the arbitral
award was made and whether such country is a signatory to the New York
Convention; and
c. The relief sought.
Apart from other submissions, the petition shall have attached to it the following:
a. An authentic copy of the arbitration agreement; and
b. An authentic copy of the arbitral award.
If the foreign arbitral award or agreement to arbitrate or submission is not made in English,
the petitioner shall also attach to the petition a translation of these documents into English.
The translation shall be certified by an official or sworn translator or by a diplomatic or
consular agent.
Rule 13.6. Notice and opposition. - 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 allowing him to file an opposition thereto within
thirty (30) days from receipt of the notice and petition.
Rule 13.7. Opposition. - The opposition shall be verified by a person who has personal
knowledge of the facts stated therein.
Rule 13.8. Submissions. - If the court finds that the issue between the parties is mainly one
of law, the parties may be required to submit briefs of legal arguments, not more than thirty
(30) days from receipt of the order, sufficiently discussing the legal issues and the legal
bases for the relief prayed for by each other.
If, from a review of the petition or opposition, there are issues of fact relating to the
ground/s relied upon for the court to refuse enforcement, the court shall, motu proprio or
upon request of any party, require the parties to simultaneously submit the affidavits of all
of their witnesses within a period of not less than fifteen (15) days nor more than thirty (30)
days from receipt of the order. The court may, upon the request of any party, allow the
submission of reply affidavits within a period of not less than fifteen (15) days nor more
than thirty (30) days from receipt of the order granting said request. There shall be
attached to the affidavits or reply affidavits all documents relied upon in support of the
statements of fact in such affidavits or reply affidavits.
Rule 13.9. Hearing. - The court shall set the case for hearing if on the basis of the
foregoing submissions there is a need to do so. The court shall give due priority to
hearings on petitions under this Rule. During the hearing, the affidavits of witnesses shall
take the place of their direct testimonies and they shall immediately be subject to cross-
examination. The court shall have full control over the proceedings in order to ensure that
the case is heard without undue delay.
Rule 13.10. Adjournment/deferment of decision on enforcement of award. - The court
before which a petition to recognize and enforce a foreign arbitral award is pending, may
adjourn or defer rendering a decision thereon if, in the meantime, an application for the
setting aside or suspension of the award has been made with a competent authority in the
country where the award was made. Upon application of the petitioner, the court may also
require the other party to give suitable security.
Rule 13.11. Court action. - It is presumed that a foreign arbitral award was made and
released in due course of arbitration and is subject to enforcement by the court.
The court shall recognize and enforce a foreign arbitral award unless a ground to refuse
recognition or enforcement of the foreign arbitral award under this rule is fully established.
The decision of the court recognizing and enforcing a foreign arbitral award is immediately
executory.
In resolving the petition for recognition and enforcement of a foreign arbitral award in
accordance with these Special ADR Rules, the court shall either [a] recognize and/or
enforce or [b] refuse to recognize and enforce the arbitral award. The court shall not
disturb the arbitral tribunal’s determination of facts and/or interpretation of law.
Rule 13.12. Recognition and enforcement of non-convention award. - The court shall, only
upon grounds provided by these Special ADR Rules, recognize and enforce a foreign
arbitral award made in a country not a signatory to the New York Convention when such
country extends comity and reciprocity to awards made in the Philippines. If that country
does not extend comity and reciprocity to awards made in the Philippines, the court may
nevertheless treat such award as a foreign judgment enforceable as such under Rule 39,
Section 48, of the Rules of Court.
PART III
PROVISIONS SPECIFIC TO MEDIATION
RULE 14: GENERAL PROVISIONS
Rule 14.1. Application of the rules on arbitration. - Whenever applicable and appropriate,
the pertinent rules on arbitration shall be applied in proceedings before the court relative to
a dispute subject to mediation.
RULE 15: DEPOSIT AND ENFORCEMENT OF MEDIATED SETTLEMENT
AGREEMENTS
Rule 15.1. Who makes a deposit. - Any party to a mediation that is not court-annexed may
deposit with the court the written settlement agreement, which resulted from that
mediation.
Rule 15.2. When deposit is made. - At any time after an agreement is reached, the written
settlement agreement may be deposited.
Rule 15.3. Venue. - The written settlement agreement may be jointly deposited by the
parties or deposited by one party with prior notice to the other party/ies with the Clerk of
Court of the Regional Trial Court (a) where the principal place of business in the
Philippines of any of the parties is located; (b) if any of the parties is an individual, where
any of those individuals resides; or (c) in the National Capital Judicial Region.
Rule 15.4. Registry Book. - The Clerk of Court of each Regional Trial Court shall keep a
Registry Book that shall chronologically list or enroll all the mediated settlement
agreements/settlement awards that are deposited with the court as well as the names and
address of the parties thereto and the date of enrollment and shall issue a Certificate of
Deposit to the party that made the deposit.
Rule 15.5. Enforcement of mediated settlement agreement. - Any of the parties to a
mediated settlement agreement, which was deposited with the Clerk of Court of the
Regional Trial Court, may, upon breach thereof, file a verified petition with the same court
to enforce said agreement.
Rule 15.6. Contents of petition. - The verified petition shall:
a. Name and designate, as petitioner or respondent, all parties to the mediated
settlement agreement and those who may be affected by it;
b. State the following:
(i). The addresses of the petitioner and respondents; and
(ii). The ultimate facts that would show that the adverse party has
defaulted to perform its obligation under said agreement; and
c. Have attached to it the following:
(i). An authentic copy of the mediated settlement agreement; and
(ii). Certificate of Deposit showing that the mediated settlement
agreement was deposited with the Clerk of Court.
Rule 15.7. Opposition. - The adverse party may file an opposition, within fifteen (15) days
from receipt of notice or service of the petition, by submitting written proof of compliance
with the mediated settlement agreement or such other affirmative or negative defenses it
may have.
Rule 15.8. Court action. - After a summary hearing, if the court finds that the agreement is
a valid mediated settlement agreement, that there is no merit in any of the affirmative or
negative defenses raised, and the respondent has breached that agreement, in whole or in
part, the court shall order the enforcement thereof; otherwise, it shall dismiss the petition.
PART IV
PROVISIONS SPECIFIC TO CONSTRUCTION ARBITRATION
RULE 16: GENERAL PROVISIONS
Rule 16.1. Application of the rules on arbitration. - Whenever applicable and appropriate,
the rules on arbitration shall be applied in proceedings before the court relative to a dispute
subject to construction arbitration.
RULE 17: REFERRAL TO CIAC
Rule 17.1. Dismissal of action. - A Regional Trial Court before which a construction dispute
is filed shall, upon becoming aware that the parties have entered into an arbitration
agreement, motu proprio or upon motion made not later than the pre-trial, dismiss the case
and refer the parties to arbitration to be conducted by the Construction Industry Arbitration
Commission (CIAC), unless all parties to arbitration, assisted by their respective counsel,
submit to the court a written agreement making the court, rather than the CIAC, the body
that would exclusively resolve the dispute.
Rule 17.2. Form and contents of motion. - The request for dismissal of the civil action and
referral to arbitration shall be through a verified motion that shall (a) contain a statement
showing that the dispute is a construction dispute; and (b) be accompanied by proof of the
existence of the arbitration agreement.
If the arbitration agreement or other document evidencing the existence of that agreement
is already part of the record, those documents need not be submitted to the court provided
that the movant has cited in the motion particular references to the records where those
documents may be found.
The motion shall also contain a notice of hearing addressed to all parties and shall specify
the date and time when the motion will be heard, which must not be later than fifteen (15)
days after the filing of the motion. The movant shall ensure receipt by all parties of the
motion at least three days before the date of the hearing.
Rule 17.3. Opposition. - Upon receipt of the motion to refer the dispute to arbitration by
CIAC, the other party may file an opposition to the motion on or before the day such
motion is to be heard. The opposition shall clearly set forth the reasons why the court
should not dismiss the case.
Rule 17.4. Hearing. - The court shall hear the motion only once and for the purpose of
clarifying relevant factual and legal issues.
Rule 17.5. Court action. - If the other parties fail to file their opposition on or before the day
of the hearing, the court shall motu proprio resolve the motion only on the basis of the facts
alleged in the motion.
After hearing, the court shall dismiss the civil action and refer the parties to arbitration if it
finds, based on the pleadings and supporting documents submitted by the parties, that
there is a valid and enforceable arbitration agreement involving a construction dispute.
Otherwise, the court shall proceed to hear the case.
All doubts shall be resolved in favor of the existence of a construction dispute and the
arbitration agreement.
Rule 17.6. Referral immediately executory. - An order dismissing the case and referring
the dispute to arbitration by CIAC shall be immediately executory.
Rule 17.7. Multiple actions and parties. - The court shall not decline to dismiss the civil
action and make a referral to arbitration by CIAC for any of the following reasons:
a. Not all of the disputes subject of the civil action may be referred to arbitration;
b. Not all of the parties to the civil action are bound by the arbitration agreement
and referral to arbitration would result in multiplicity of suits;
c. The issues raised in the civil action could be speedily and efficiently resolved in
its entirety by the Court rather than in arbitration;
d. Referral to arbitration does not appear to be the most prudent action; or
e. Dismissal of the civil action would prejudice the rights of the parties to the civil
action who are not bound by the arbitration agreement.
The court may, however, issue an order directing the inclusion in arbitration of those
parties who are bound by the arbitration agreement directly or by reference thereto
pursuant to Section 34 of Republic Act No. 9285.
Furthermore, the court shall issue an order directing the case to proceed with respect to
the parties not bound by the arbitration agreement.
Rule 17.8. Referral - If the parties manifest that they have agreed to submit all or part of
their dispute pending with the court to arbitration by CIAC, the court shall refer them to
CIAC for arbitration.
PART V
PROVISIONS SPECIFIC TO OTHER FORMS OF ADR
RULE 18: GENERAL PROVISIONS
Rule 18.1. Applicability of rules to other forms of ADR. - This rule governs the procedure
for matters brought before the court involving the following forms of ADR:
a. Early neutral evaluation;
b. Neutral evaluation;
c. Mini-trial;
d. Mediation-arbitration;
e. A combination thereof; or
f. Any other ADR form.
Rule 18.2. Applicability of the rules on mediation. - If the other ADR form/process is more
akin to mediation (i.e., the neutral third party merely assists the parties in reaching a
voluntary agreement), the herein rules on mediation shall apply.
Rule 18.3. Applicability of rules on arbitration.-If the other ADR form/process is more akin
to arbitration (i.e., the neutral third party has the power to make a binding resolution of the
dispute), the herein rules on arbitration shall apply.
Rule 18.4. Referral. - If a dispute is already before a court, either party may before and
during pre-trial, file a motion for the court to refer the parties to other ADR
forms/processes. At any time during court proceedings, even after pre-trial, the parties may
jointly move for suspension of the action pursuant to Article 2030 of the Civil Code of the
Philippines where the possibility of compromise is shown.
Rule 18.5. Submission of settlement agreement. - Either party may submit to the court,
before which the case is pending, any settlement agreement following a neutral or an early
neutral evaluation, mini-trial or mediation-arbitration.
 PART VI
MOTION FOR RECONSIDERATION, APPEAL AND CERTIORARI
RULE 19: MOTION FOR RECONSIDERATION, APPEAL AND CERTIORARI
A. MOTION FOR RECONSIDERATION
Rule 19.1. Motion for reconsideration, when allowed. - A party may ask the Regional Trial
to reconsider its ruling on the following:
a. That the arbitration agreement is inexistent, invalid or unenforceable pursuant
to Rule 3.10 (B);
b. Upholding or reversing the arbitral tribunal’s jurisdiction pursuant to Rule 3.19;
c. Denying a request to refer the parties to arbitration;
d. Granting or denying a party an interim measure of protection;
e. Denying a petition for the appointment of an arbitrator;
f. Refusing to grant assistance in taking evidence;
g. Enjoining or refusing to enjoin a person from divulging confidential information;
h. Confirming, vacating or correcting a domestic arbitral award;
i. Suspending the proceedings to set aside an international commercial arbitral
award and referring the case back to the arbitral tribunal;
j. Setting aside an international commercial arbitral award;
k. Dismissing the petition to set aside an international commercial arbitral award,
even if the court does not recognize and/or enforce the same;
l. Recognizing and/or enforcing, or dismissing a petition to recognize and/or
enforce an international commercial arbitral award;
m. Declining a request for assistance in taking evidence;
n. Adjourning or deferring a ruling on a petition to set aside, recognize and/or
enforce an international commercial arbitral award;
o. Recognizing and/or enforcing a foreign arbitral award, or refusing recognition
and/or enforcement of the same; and
p. Granting or dismissing a petition to enforce a deposited mediated settlement
agreement.
No motion for reconsideration shall be allowed from the following rulings of the Regional
Trial Court:
a. A prima facie determination upholding the existence, validity or enforceability
of an arbitration agreement pursuant to Rule 3.1 (A);
b. An order referring the dispute to arbitration;
c. An order appointing an arbitrator;
d. Any ruling on the challenge to the appointment of an arbitrator;
e. Any order resolving the issue of the termination of the mandate of an arbitrator;
and
f. An order granting assistance in taking evidence.
Rule 19.2. When to move for reconsideration. - A motion for reconsideration may be filed
with the Regional Trial Court within a non-extendible period of fifteen (15) days from
receipt of the questioned ruling or order.
Rule 19.3. Contents and notice. - The motion shall be made in writing stating the ground or
grounds therefor and shall be filed with the court and served upon the other party or
parties.
Rule 19.4. Opposition or comment. - Upon receipt of the motion for reconsideration, the
other party or parties shall have a non-extendible period of fifteen (15) days to file his
opposition or comment.
Rule 19.5. Resolution of motion. - A motion for reconsideration shall be resolved within
thirty (30) days from receipt of the opposition or comment or upon the expiration of the
period to file such opposition or comment.
Rule 19.6. No second motion for reconsideration. - No party shall be allowed a second
motion for reconsideration.
B. GENERAL PROVISIONS ON APPEAL AND CERTIORARI
Rule 19.7. No appeal or certiorari on the merits of an arbitral award. - An agreement to
refer a dispute to arbitration shall mean that the arbitral award shall be final and binding.
Consequently, a party to an arbitration is precluded from filing an appeal or a petition for
certiorari questioning the merits of an arbitral award.
Rule 19.8. Subject matter and governing rules. - The remedy of an appeal through a
petition for review or the remedy of a special civil action of certiorari from a decision of the
Regional Trial Court made under the Special ADR Rules shall be allowed in the instances,
and instituted only in the manner, provided under this Rule.
Rule 19.9. Prohibited alternative remedies. - Where the remedies of appeal and certiorari
are specifically made available to a party under the Special ADR Rules, recourse to one
remedy shall preclude recourse to the other.
Rule 19.10. Rule on judicial review on arbitration in the Philippines. - As a general rule, the
court can only vacate or set aside the decision of an arbitral tribunal upon a clear showing
that the award suffers from any of the infirmities or grounds for vacating an arbitral award
under Section 24 of Republic Act No. 876 or under Rule 34 of the Model Law in a domestic
arbitration, or for setting aside an award in an international arbitration under Article 34 of
the Model Law, or for such other grounds provided under these Special Rules.
If the Regional Trial Court is asked to set aside an arbitral award in a domestic or
international arbitration on any ground other than those provided in the Special ADR Rules,
the court shall entertain such ground for the setting aside or non-recognition of the arbitral
award only if the same amounts to a violation of public policy.
The court shall not set aside or vacate the award of the arbitral tribunal merely on the
ground that the arbitral tribunal committed errors of fact, or of law, or of fact and law, as the
court cannot substitute its judgment for that of the arbitral tribunal.
Rule 19.11. Rule on judicial review of foreign arbitral award. - The court can deny
recognition and enforcement of a foreign arbitral award only upon the grounds provided in
Article V of the New York Convention, but shall have no power to vacate or set aside a
foreign arbitral award.
C. APPEALS TO THE COURT OF APPEALS
Rule 19.12. Appeal to the Court of Appeals. - An appeal to the Court of Appeals through a
petition for review under this Special Rule shall only be allowed from the following final
orders of the Regional Trial Court:
a. Granting or denying an interim measure of protection;
b. Denying a petition for appointment of an arbitrator;
c. Denying a petition for assistance in taking evidence;
d. Enjoining or refusing to enjoin a person from divulging confidential information;
e. Confirming, vacating or correcting/modifying a domestic arbitral award;
f. Setting aside an international commercial arbitration award;
g. Dismissing the petition to set aside an international commercial arbitration
award even if the court does not decide to recognize or enforce such award;
h. Recognizing and/or enforcing an international commercial arbitration award;
i. Dismissing a petition to enforce an international commercial arbitration award;
j. Recognizing and/or enforcing a foreign arbitral award;
k. Refusing recognition and/or enforcement of a foreign arbitral award;
l. Granting or dismissing a petition to enforce a deposited mediated settlement
agreement; and
m. Reversing the ruling of the arbitral tribunal upholding its jurisdiction.
Rule 19.13. Where to appeal. - An appeal under this Rule shall be taken to the Court of
Appeals within the period and in the manner herein provided.
Rule 19.14. When to appeal. - The petition for review shall be filed within fifteen (15) days
from notice of the decision of the Regional Trial Court or the denial of the petitioner’s
motion for reconsideration.
Rule 19.15. How appeal taken. - Appeal shall be taken by filing a verified petition for
review in seven (7) legible copies with the Court of Appeals, with proof of service of a copy
thereof on the adverse party and on the Regional Trial Court. The original copy of the
petition intended for the Court of Appeals shall be marked original by the petitioner.
Upon the filing of the petition and unless otherwise prescribed by the Court of Appeals, the
petitioner shall pay to the clerk of court of the Court of Appeals docketing fees and other
lawful fees of P3,500.00 and deposit the sum of P500.00 for costs.
Exemption from payment of docket and other lawful fees and the deposit for costs may be
granted by the Court of Appeals upon a verified motion setting forth valid grounds therefor.
If the Court of Appeals denies the motion, the petitioner shall pay the docketing and other
lawful fees and deposit for costs within fifteen days from the notice of the denial.
Rule 19.16. Contents of the Petition. - The petition for review shall (a) state the full names
of the parties to the case, without impleading the court or agencies either as petitioners or
respondent, (b) contain a concise statement of the facts and issues involved and the
grounds relied upon for the review, (c) be accompanied by a clearly legible duplicate
original or a certified true copy of the decision or resolution of the Regional Trial Court
appealed from, together with certified true copies of such material portions of the record
referred to therein and other supporting papers, and (d) contain a sworn certification
against forum shopping as provided in the Rules of Court. The petition shall state the
specific material dates showing that it was filed within the period fixed herein.
Rule 19.17. Effect of failure to comply with requirements. - The court shall dismiss the
petition if it fails to comply with the foregoing requirements regarding the payment of the
docket and other lawful fees, the deposit for costs, proof of service of the petition, the
contents and the documents, which should accompany the petition.
Rule 19.18. Action on the petition. - The Court of Appeals may require the respondent to
file a comment on the petition, not a motion to dismiss, within ten (10) days from notice, or
dismiss the petition if it finds, upon consideration of the grounds alleged and the legal
briefs submitted by the parties, that the petition does not appear to be prima facie
meritorious.
Rule 19.19. Contents of Comment. - The comment shall be filed within ten (10) days from
notice in seven (7) legible copies and accompanied by clearly legible certified true copies
of such material portions of the record referred to therein together with other supporting
papers. The comment shall (a) point out insufficiencies or inaccuracies in petitioner’s
statement of facts and issues, and (b) state the reasons why the petition should be denied
or dismissed. A copy thereof shall be served on the petitioner, and proof of such service
shall be filed with the Court of Appeals.
Rule 19.20. Due course. - If upon the filing of a comment or such other pleading or
documents as may be required or allowed by the Court of Appeals or upon the expiration
of the period for the filing thereof, and on the basis of the petition or the records, the Court
of Appeals finds prima facie that the Regional Trial Court has committed an error that
would warrant reversal or modification of the judgment, final order, or resolution sought to
be reviewed, it may give due course to the petition; otherwise, it shall dismiss the same.
Rule 19.21. Transmittal of records. - Within fifteen (15) days from notice that the petition
has been given due course, the Court of Appeals may require the court or agency
concerned to transmit the original or a legible certified true copy of the entire record of the
proceeding under review. The record to be transmitted may be abridged by agreement of
all parties to the proceeding. The Court of Appeals may require or permit subsequent
correction of or addition to the record.
Rule 19.22. Effect of appeal. - The appeal shall not stay the award, judgment, final order or
resolution sought to be reviewed unless the Court of Appeals directs otherwise upon such
terms as it may deem just.
Rule 19.25. Party appealing decision of court confirming arbitral award required to post
bond. - The Court of Appeals shall within fifteen (15) days from receipt of the petition
require the party appealing from the decision or a final order of the Regional Trial Court,
either confirming or enforcing an arbitral award, or denying a petition to set aside or vacate
the arbitral award to post a bond executed in favor of the prevailing party equal to the
amount of the award.
Failure of the petitioner to post such bond shall be a ground for the Court of Appeals to
dismiss the petition.
D. SPECIAL CIVIL ACTION FOR CERTIORARI
Rule 19.26. Certiorari to the Court of Appeals. - When the Regional Trial Court, in making
a ruling under the Special ADR Rules, has acted without or in excess of its jurisdiction, or
with grave abuse of discretion amounting to lack or excess of jurisdiction, and there is no
appeal or any plain, speedy, and adequate remedy in the ordinary course of law, a party
may file a special civil action for certiorari to annul or set aside a ruling of the Regional Trial
Court.
A special civil action for certiorari may be filed against the following orders of the court.
a. Holding that the arbitration agreement is inexistent, invalid or unenforceable;
b. Reversing the arbitral tribunal’s preliminary determination upholding its
jurisdiction;
c. Denying the request to refer the dispute to arbitration;
d. Granting or refusing an interim relief;

Rule 19.23. Submission for decision. - If the petition is given due course, the Court of e. Denying a petition for the appointment of an arbitrator;
Appeals may set the case for oral argument or require the parties to submit memoranda
within a period of fifteen (15) days from notice. The case shall be deemed submitted for f. Confirming, vacating or correcting a domestic arbitral award;
decision upon the filing of the last pleading or memorandum required by the Court of
Appeals.
g. Suspending the proceedings to set aside an international commercial arbitral
award and referring the case back to the arbitral tribunal;
The Court of Appeals shall render judgment within sixty (60) days from the time the case is
submitted for decision.
h. Allowing a party to enforce an international commercial arbitral award pending
appeal;
Rule 19.24. Subject of appeal restricted in certain instance. - If the decision of the
Regional Trial Court refusing to recognize and/or enforce, vacating and/or setting aside an
arbitral award is premised on a finding of fact, the Court of Appeals may inquire only into i. Adjourning or deferring a ruling on whether to set aside, recognize and or
such fact to determine the existence or non-existence of the specific ground under the enforce an international commercial arbitral award;
arbitration laws of the Philippines relied upon by the Regional Trial Court to refuse to
recognize and/or enforce, vacate and/or set aside an award. Any such inquiry into a j. Allowing a party to enforce a foreign arbitral award pending appeal; and
question of fact shall not be resorted to for the purpose of substituting the court’s judgment
for that of the arbitral tribunal as regards the latter’s ruling on the merits of the controversy.
k. Denying a petition for assistance in taking evidence.
Rule 19.27. Form. - The petition shall be accompanied by a certified true copy of the
questioned judgment, order or resolution of the Regional Trial Court, copies of all
pleadings and documents relevant and pertinent thereto, and a sworn certification of non-
forum shopping as provided in the Rules of Court.
Upon the filing of the petition and unless otherwise prescribed by the Court of Appeals, the
petitioner shall pay to the clerk of court of the Court of Appeals docketing fees and other
lawful fees of P3,500.00 and deposit the sum of P500.00 for costs. Exemption from
payment of docket and other lawful fees and the deposit for costs may be granted by the
Court of Appeals upon a verified motion setting forth valid grounds therefor. If the Court of
Appeals denies the motion, the petitioner shall pay the docketing and other lawful fees and
deposit for costs within fifteen days from the notice of the denial.
Rule 19.28. When to file petition. - The petition must be filed with the Court of Appeals
within fifteen (15) days from notice of the judgment, order or resolution sought to be
annulled or set aside. No extension of time to file the petition shall be allowed.
Rule 19.29. Arbitral tribunal a nominal party in the petition. - The arbitral tribunal shall only
be a nominal party in the petition for certiorari. As nominal party, the arbitral tribunal shall
not be required to submit any pleadings or written submissions to the court. The arbitral
tribunal or an arbitrator may, however, submit such pleadings or written submissions if the
same serves the interest of justice.
In petitions relating to the recognition and enforcement of a foreign arbitral award, the
arbitral tribunal shall not be included even as a nominal party. However, the tribunal may
be notified of the proceedings and furnished with court processes.
Rule 19.30. Court to dismiss petition. - The court shall dismiss the petition if it fails to
comply with Rules 19.27 and 19.28 above, or upon consideration of the ground alleged
and the legal briefs submitted by the parties, the petition does not appear to be prima facie
meritorious.
Rule 19.31. Order to comment. - If the petition is sufficient in form and substance to justify
such process, the Court of Appeals shall immediately issue an order requiring the
respondent or respondents to comment on the petition within a non-extendible period of
fifteen (15) days from receipt of a copy thereof. Such order shall be served on the
respondents in such manner as the court may direct, together with a copy of the petition
and any annexes thereto.
Rule 19.32. Arbitration may continue despite petition for certiorari. - A petition for certiorari
to the court from the action of the appointing authority or the arbitral tribunal allowed under
this Rule shall not prevent the arbitral tribunal from continuing the proceedings and
rendering its award. Should the arbitral tribunal continue with the proceedings, the arbitral
proceedings and any award rendered therein will be subject to the final outcome of the
pending petition for certiorari.
Rule 19.33. Prohibition against injunctions. - The Court of Appeals shall not, during the
pendency of the proceedings before it, prohibit or enjoin the commencement of arbitration,
the constitution of the arbitral tribunal, or the continuation of arbitration.
Rule 19.34. Proceedings after comment is filed. - After the comment is filed, or the time for
the filing thereof has expired, the court shall render judgment granting the relief prayed for
or to which the petitioner is entitled, or denying the same, within a non-extendible period of
fifteen (15) days.
Rule 19.35. Service and enforcement of order or judgment. - A certified copy of the
judgment rendered in accordance with the last preceding section shall be served upon the
Regional Trial Court concerned in such manner as the Court of Appeals may direct, and
disobedience thereto shall be punished as contempt.
E. APPEAL BY CERTIORARI TO THE SUPREME COURT
Rule 19.36. Review discretionary. - A review by the Supreme Court is not a matter of right,
but of sound judicial discretion, which will be granted only for serious and compelling
reasons resulting in grave prejudice to the aggrieved party. The following, while neither
controlling nor fully measuring the court's discretion, indicate the serious and compelling,
and necessarily, restrictive nature of the grounds that will warrant the exercise of the
Supreme Court’s discretionary powers, when the Court of Appeals:
a. Failed to apply the applicable standard or test for judicial review prescribed in
these Special ADR Rules in arriving at its decision resulting in substantial
prejudice to the aggrieved party;
b. Erred in upholding a final order or decision despite the lack of jurisdiction of the
court that rendered such final order or decision;
c. Failed to apply any provision, principle, policy or rule contained in these
Special ADR Rules resulting in substantial prejudice to the aggrieved party; and
d. Committed an error so egregious and harmful to a party as to amount to an
undeniable excess of jurisdiction.
The mere fact that the petitioner disagrees with the Court of Appeals’ determination of
questions of fact, of law or both questions of fact and law, shall not warrant the exercise of
the Supreme Court’s discretionary power. The error imputed to the Court of Appeals must
be grounded upon any of the above prescribed grounds for review or be closely analogous
thereto.
A mere general allegation that the Court of Appeals has committed serious and substantial
error or that it has acted with grave abuse of discretion resulting in substantial prejudice to
the petitioner without indicating with specificity the nature of such error or abuse of
discretion and the serious prejudice suffered by the petitioner on account thereof, shall
constitute sufficient ground for the Supreme Court to dismiss outright the petition.
Rule 19.37. Filing of petition with Supreme Court. - A party desiring to appeal by certiorari
from a judgment or final order or resolution of the Court of Appeals issued pursuant to
these Special ADR Rules may file with the Supreme Court a verified petition for review on
certiorari. The petition shall raise only questions of law, which must be distinctly set forth.
Rule 19.38. Time for filing; extension. - The petition shall be filed within fifteen (15) days
from notice of the judgment or final order or resolution appealed from, or of the denial of
the petitioner's motion for new trial or reconsideration filed in due time after notice of the
judgment.
On motion duly filed and served, with full payment of the docket and other lawful fees and
the deposit for costs before the expiration of the reglementary period, the Supreme Court
may for justifiable reasons grant an extension of thirty (30) days only within which to file the
petition.
Rule 19.39. Docket and other lawful fees; proof of service of petition. - Unless he has
theretofore done so or unless the Supreme Court orders otherwise, the petitioner shall pay
docket and other lawful fees to the clerk of court of the Supreme Court of P3,500.00 and
deposit the amount of P500.00 for costs at the time of the filing of the petition. Proof of
service of a copy thereof on the lower court concerned and on the adverse party shall be
submitted together with the petition.
Rule 19.40. Contents of petition. - The petition shall be filed in eighteen (18) copies, with
the original copy intended for the court being indicated as such by the petitioner, and shall
(a) state the full name of the appealing party as the petitioner and the adverse party as
respondent, without impleading the lower courts or judges thereof either as petitioners or
respondents; (b) indicate the material dates showing when notice of the judgment or final
order or resolution subject thereof was received, when a motion for new trial or
reconsideration, if any, was filed and when notice of the denial thereof was received; (c)
set forth concisely a statement of the matters involved, and the reasons or arguments
relied on for the allowance of the petition; (d) be accompanied by a clearly legible duplicate
original, or a certified true copy of the judgment or final order or resolution certified by the
clerk of court of the court a quo and the requisite number of plain copies thereof, and such
material portions of the record as would support the petition; and (e) contain a sworn
certification against forum shopping.
Rule 19.41. Dismissal or denial of petition. - The failure of the petitioner to comply with any
of the foregoing requirements regarding the payment of the docket and other lawful fees,
deposit for costs, proof of service of the petition, and the contents of and the documents
which should accompany the petition shall be sufficient ground for the dismissal thereof.
The Supreme Court may on its own initiative deny the petition on the ground that the
appeal is without merit, or is prosecuted manifestly for delay, or that the questions raised
therein are too insubstantial to require consideration.
Rule 19.42. Due course; elevation of records. - If the petition is given due course, the
Supreme Court may require the elevation of the complete record of the case or specified
parts thereof within fifteen (15) days from notice.
PART VII
FINAL PROVISIONS
RULE 20: FILING AND DEPOSIT FEES
Rule 20.1. Filing fee in petitions or counter-petitions to confirm or enforce, vacate or set
aside arbitral award or for the enforcement of a mediated settlement agreement. - The
filing fee for filing a petition to confirm or enforce, vacate or set aside an arbitral award in a
domestic arbitration or in an international commercial arbitration, or enforce a mediated
settlement agreement shall be as follows:
PhP 10,000.00 - if the award does not exceed PhP 1,000,000.00
PhP 20,000.00 - if the award does not exceed PhP 20,000,000.00
PhP 30,000.00 - if the award does not exceed PhP 50,000,000.00
PhP 40,000.00 - if the award does not exceed PhP 100,000,000.00
PhP 50,000.00 - if the award exceeds PhP 100,000,000.00
The minimal filing fee payable in "all other actions not involving property" shall be
paid by the petitioner seeking to enforce foreign arbitral awards under the New York
Convention in the Philippines.
Rule 20.2. Filing fee for action to enforce as a counter-petition. - A petition to enforce an
arbitral award in a domestic arbitration or in an international commercial arbitration
submitted as a petition to enforce and/or recognize an award in opposition to a timely
petition to vacate or set aside the arbitral award shall require the payment of the filing fees
prescribed in Rule 20.1 above.
Rule 20.3. Deposit fee for mediated settlement agreements. - Any party to a mediated
settlement agreement who deposits it with the clerk of court shall pay a deposit fee of
P500.00.
Rule 20.4. Filing fee for other proceedings. - The filing fee for the filing of any other
proceedings, including applications for interim relief, as authorized under these Special
Rules not covered under any of the foregoing provisions, shall be P10,000.00.
RULE 21: COSTS
Rule 21.1. Costs. - The costs of the ADR proceedings shall be borne by the parties equally
unless otherwise agreed upon or directed by the arbitrator or arbitral tribunal.
Rule 21.2. On the dismissal of a petition against a ruling of the arbitral tribunal on a
preliminary question upholding its jurisdiction. - If the Regional Trial Court dismisses the
petition against the ruling of the arbitral tribunal on a preliminary question upholding its
jurisdiction, it shall also order the petitioner to pay the respondent all reasonable costs and
expenses incurred in opposing the petition. "Costs" shall include reasonable attorney’s
fees. The court shall award costs upon application of the respondent after the petition is
denied and the court finds, based on proof submitted by respondent, that the amount of
costs incurred is reasonable.
Rule 21.3. On recognition and enforcement of a foreign arbitral award. - At the time the
case is submitted to the court for decision, the party praying for recognition and
enforcement of a foreign arbitral award shall submit a statement under oath confirming the
costs he has incurred only in the proceedings in the Philippines for such recognition and
enforcement or setting-aside. The costs shall include attorney’s fees the party has paid or
is committed to pay to his counsel of record.
The prevailing party shall be entitled to an award of costs which shall include the
reasonable attorney’s fees of the prevailing party against the unsuccessful party. The court
shall determine the reasonableness of the claim for attorney’s fees.
Rule 21.4. Costs. - At the time the case is submitted to the court for decision, the party
praying for confirmation or vacation of an arbitral award shall submit a statement under
oath confirming the costs he has incurred only in the proceedings for confirmation or
vacation of an arbitral award. The costs shall include the attorney’s fees the party has paid
or is committed to pay to his counsel of record.
The prevailing party shall be entitled to an award of costs with respect to the proceedings
before the court, which shall include the reasonable attorney’s fees of the prevailing party
against the unsuccessful party. The court shall determine the reasonableness of the claim
for attorney’s fees.
Rule 21.5. Bill of Costs. - Unless otherwise agreed upon by the parties in writing, at the
time the case is submitted to the court for decision, the party praying for recognition and
enforcement or for setting aside an arbitral award shall submit a statement under oath
confirming the costs he has incurred only in the proceedings for such recognition and
enforcement or setting-aside. The costs shall include attorney’s fees the party has paid or
is committed to pay to his counsel of record.
The prevailing party shall be entitled to an award of costs, which shall include reasonable
attorney’s fees of the prevailing party against the unsuccessful party. The court shall
determine the reasonableness of the claim for attorney’s fees.
Rule 21.6. Government’s exemption from payment of fees. - The Republic of the
Philippines, its agencies and instrumentalities are exempt from paying legal fees provided
in these Special ADR Rules. Local governments and government controlled corporation
with or with or without independent charters are not exempt from paying such fees.
RULE 22: APPLICABILITY OF THE RULES OF COURT
Rule 22.1. Applicability of Rules of Court. - The provisions of the Rules of Court that are
applicable to the proceedings enumerated in Rule 1.1 of these Special ADR Rules have
either been included and incorporated in these Special ADR Rules or specifically referred
to herein.
In connection with the above proceedings, the Rules of Evidence shall be liberally
construed to achieve the objectives of the Special ADR Rules.
RULE 23: SEPARABILITY
Rule 23.1. Separability Clause. - If, for any reason, any part of the Special ADR Rules
shall be held unconstitutional or invalid, other Rules or provisions hereof which are not
affected thereby, shall continue to be in full force and effect.
RULE 24: TRANSITORY PROVISIONS
Rule 24.1. Transitory Provision. - Considering its procedural character, the Special ADR
Rules shall be applicable to all pending arbitration, mediation or other ADR forms covered
by the ADR Act, unless the parties agree otherwise. The Special ADR Rules, however,
may not prejudice or impair vested rights in accordance with law.
RULE 25: ONLINE DISPUTE RESOLUTION
Rule 25.1. Applicability of the Special ADR Rules to Online Dispute Resolution. -
Whenever applicable and appropriate, the Special ADR Rules shall govern the procedure
for matters brought before the court involving Online Dispute Resolution.
Rule 25.2. Scope of Online Dispute Resolution. - Online Dispute Resolution shall refer to
all electronic forms of ADR including the use of the internet and other web or computed
based technologies for facilitating ADR.
RULE 26: EFFECTIVITY
Rule 26.1. Effectivity. - The Special ADR Rules shall take effect fifteen (15) days after its
complete publication in two (2) newspapers of general circulation.
RULE A: GUIDELINES FOR THE RESOLUTION OF ISSUES RELATED TO
ARBITRATION OF LOANS SECURED BY COLLATERAL
Rule A.1. Applicability of an arbitration agreement in a contract of loan applies to the
accessory contract securing the loan. - An arbitration agreement in a contract of loan
extends to and covers the accessory contract securing the loan such as a pledge or a
mortgage executed by the borrower in favor of the lender under that contract of loan.
Rule A.2. Foreclosure of pledge or extra-judicial foreclosure of mortgage not precluded by
arbitration. - The commencement of the arbitral proceeding under the contract of loan
containing an arbitration agreement shall not preclude the lender from availing himself of
the right to obtain satisfaction of the loan under the accessory contract by foreclosure of
the thing pledged or by extra-judicial foreclosure of the collateral under the real estate
mortgage in accordance with Act No. 3135.
The lender may likewise institute foreclosure proceedings against the collateral securing
the loan prior to the commencement of the arbitral proceeding.
By agreeing to refer any dispute under the contract of loan to arbitration, the lender who is
secured by an accessory contract of real estate mortgage shall be deemed to have waived
his right to obtain satisfaction of the loan by judicial foreclosure.
Rule A.3. Remedy of the borrower against an action taken by the lender against the
collateral before the constitution of the arbitral tribunal. - The borrower providing security
for the payment of his loan who is aggrieved by the action taken by the lender against the
collateral securing the loan may, if such action against the collateral is taken before the
arbitral tribunal is constituted, apply with the appropriate court for interim relief against any
such action of the lender. Such interim relief may be obtained only in a special proceeding
for that purpose, against the action taken by the lender against the collateral, pending the
constitution of the arbitral tribunal. Any determination made by the court in that special
proceeding pertaining to the merits of the controversy, including the right of the lender to
proceed against the collateral, shall be only provisional in nature.
After the arbitral tribunal is constituted, the court shall stay its proceedings and defer to the
jurisdiction of the arbitral tribunal over the entire controversy including any question
regarding the right of the lender to proceed against the collateral.
Rule A.4. Remedy of borrower against action taken by the lender against the collateral
after the arbitral tribunal has been constituted. - After the arbitral tribunal is constituted, the
borrower providing security for the payment of his loan who is aggrieved by the action
taken by the lender against the collateral securing the loan may apply to the arbitral
tribunal for relief, including a claim for damages, against such action of the lender. An
application to the court may also be made by the borrower against any action taken by the
lender against the collateral securing the loan but only if the arbitral tribunal cannot act
effectively to prevent an irreparable injury to the rights of such borrower during the
pendency of the arbitral proceeding.
disputes arising from or in connection with the relationship between the lender and the
borrower as well as the relationship between the lender and such third-party including the
right of the lender to proceed against the collateral securing the loan, but shall exclude
disputes pertaining to the relationship exclusively between the borrower and the provider of
security such as that involving a claim by the provider of security for indemnification
against the borrower.
In this multi-party arbitration among the lender, the borrower and the third party securing
the loan, the parties may agree to submit to arbitration before a sole arbitrator or a panel of
three arbitrators to be appointed either by an Appointing Authority designated by the
parties in the arbitration agreement or by a default Appointing Authority under the law.
In default of an agreement on the manner of appointing arbitrators or of constituting the
arbitral tribunal in such multi-party arbitration, the dispute shall be resolved by a panel of
three arbitrators to be designated by the Appointing Authority under the law. But even in
default of an agreement on the manner of appointing an arbitrator or constituting an arbitral
tribunal in a multi-party arbitration, if the borrower and the third party securing the loan
agree to designate a common arbitrator, arbitration shall be decided by a panel of three
arbitrators: one to be designated by the lender; the other to be designated jointly by the
borrower and the provider of security who have agreed to designate the same arbitrator;
and a third arbitrator who shall serve as the chairperson of the arbitral panel to be
designated by the two party-designated arbitrators.

An arbitration agreement in a contract of loan precludes the borrower therein providing

security for the loan from filing and/or proceeding with any action in court to prevent the
lender from foreclosing the pledge or extra-judicially foreclosing the mortgage. If any such
action is filed in court, the lender shall have the right provided in the Special ADR Rules to
have such action stayed on account of the arbitration agreement.

Rule A.5. Relief that may be granted by the arbitral tribunal. - The arbitral tribunal, in aid of
the arbitral proceeding before it, may upon submission of adequate security, suspend or
enjoin the lender from proceeding against the collateral securing the loan pending final
determination by the arbitral tribunal of the dispute brought to it for decision under such
contract of loan.

The arbitral tribunal shall have the authority to resolve the issue of the validity of the
foreclosure of the thing pledged or of the extrajudicial foreclosure of the collateral under
the real estate mortgage if the same has not yet been foreclosed or confirm the validity of
such foreclosure if made before the rendition of the arbitral award and had not been
enjoined.

Rule A.6. Arbitration involving a third-party provider of security. - An arbitration agreement

contained in a contract of loan between the lender and the borrower extends to and covers
an accessory contract securing the loan, such as a pledge, mortgage, guaranty or
suretyship, executed by a person other than the borrower only if such third-party securing
the loan has agreed in the accessory contract, either directly or by reference, to be bound
by such arbitration agreement.

Unless otherwise expressly agreed upon by the third-party securing the loan, his
agreement to be bound by the arbitration agreement in the contract of loan shall pertain to

A.M. No. 11-1-6-SC-PHILJA, 11 January 2011, Consolidated and Revised Guidelines on Court-
Annexed Mediation and Judicial Dispute Resolution
CONSOLIDATED AND REVISED GUIDELINES TO IMPLEMENT THE
EXPANDED COVERAGE OF COURT-ANNEXED MEDIATION (CAM) AND
JUDICIAL DISPUTE RESOLUTION (JDR)
A.M. No. 11-1-6-SC-PHILJA
PART ONE
General Provisions and Coverage
1. Concept of court diversion of pending cases
The diversion of pending court cases both to Court-Annexed Mediation (CAM) and to
Judicial Dispute Resolution (JDR) is plainly intended to put an end to pending litigation
through a compromise agreement of the parties and thereby help solve the ever-pressing
problem of court docket congestion. It is also intended to empower the parties to resolve
their own disputes and give practical effect to the State Policy expressly stated in the
ADR Act of 2004 (R.A. No. 9285), to wit:
"to actively promote party autonomy in the resolution of disputes or the freedom of the
parties to make their own arrangement to resolve disputes. Towards this end, the State
shall encourage and actively promote the use of Alternative Dispute Resolution (ADR)
as an important means to achieve speedy and impartial justice and de-clog court
dockets."
1.1 Indigenous ADR under CAM
Such State Policy promoting party autonomy, would necessarily include recognition of
indigenous modes of dispute resolution.
1.2 The Three Stages of Diversion
Simply stated, court diversion is a three-stage process. The first stage is the Court-
Annexed Mediation (CAM) where the judge refers the parties to the Philippine
Mediation Center (PMC) for the mediation of their dispute by trained and accredited
mediators.
Upon failing to secure a settlement of the dispute during the first stage, a second
attempt is made at the JDR stage. There, the JDR judge sequentially becomes a
mediator-conciliator-early neutral evaluator in a continuing effort to secure a
settlement. Still failing that second attempt, the mediator-judge must turn over the case
to another judge (a new one by raffle or nearest/pair judge) who will try the unsettled
case. The trial judge shall continue with the pre-trial proper and, thereafter, proceed to
try and decide the case.
The third stage is during the appeal where covered cases are referred to the PMC-
Appeals Court Mediation (ACM) unit for mediation.
The ultimate common end of both the Katarungang Pambarangay Law and Court-
Annexed Mediation is to restore the role of the judiciary as the forum of last recourse to
be resorted to only after all prior earnest efforts to arrive at private accommodation and
resolution of disputes have failed.
2. Rationale for expanded mediation jurisdiction over the civil liability for
more serious offenses
Deterrence, which is achieved from a consistent and swift imposition of the appropriate
penalty imposed for the crime committed, is the principle upon which societal security
rests. It is for this reason that Article 2034 of the Civil Code provides that:
"There may be a compromise upon the civil liability arising from the offense, but such
compromise shall not extinguish the public action for the imposition of the legal
penalty."
It is significantly important to note that the above-quoted statutory provision does not
restrict the crime mentioned to the gravity of the imposable penalty as a condition for
allowing a compromise agreement to be reached on the civil liability arising from the
crime. Presumably, therefore, the allowed compromise of civil liability applies to all
crimes, subject only to the policy considerations of deterrence variables arising from the
celerity, certainty and severity of punishment actually imposed. 2
Expansion of mediation jurisdiction over less grave felonies (punishable by correctional
penalties of not exceeding 6 years) 3 is justified since, presumably, the deterrent effect
upon which societal security rests is not the principal purpose of correctional penalties.
They are intended for the rehabilitation and correction of the offender. It is for this
reason that offenses punishable by correctional penalties are subject to probation. 4
The qualified offender granted probation is given conditional freedom and released to
society. It is further relevant and significant to note that the Department of Justice has
initiated and is running a program of training prosecutors to be mediators for criminal
cases where the imposable penalty does not exceed six (6) years. 5
In contrast, the penalties classified under the Revised Penal Code as afflictive and
capital 6 are explicit that their purpose is punishment. Probation is denied to convicts
who are imposed said afflictive penalties, thereby showing that isolation from society
through imprisonment is necessary for the protection of society. Thus, the imposition of
afflictive punishment for grave offenses is surely the underlying basis for achieving the
principle of deterrence, not only of the person punished but also of the general public,
through the principle of exemplarity.
Further, the expansion to less grave offense is needed if a greater impact of court
diversion of pending cases is to be achieved. This is so since civil cases constitute only a
small 16% of all cases filed in court, while special proceedings constitute even a smaller
7.6%. 7
Under the expanded jurisdiction of the first level courts, 8 all less grave felonies will fall
under their original and exclusive jurisdiction. 9
3. Mandatory Coverage for Court-Annexed Mediation (CAM) and Judicial
Dispute Resolution (JDR)
The following cases shall be 1) referred to Court-Annexed Mediation (CAM) and 2) be
the subject of Judicial Dispute Resolution (JDR) proceedings:
(1) All civil cases and the civil liability of criminal cases covered by the Rule on Summary
Procedure, including the civil liability for violation of B.P. 22, except those which by law
may not be compromised;
(2) Special proceedings for the settlement of estates;
(3) All civil and criminal cases filed with a certificate to file action issued by the Punong
Barangay or the Pangkat ng Tagapagkasundo under the Revised Katarungang
Pambarangay Law; 10
(4) The civil aspect of Quasi-Offenses under Title 14 of the Revised Penal Code;
(5) The civil aspect of less grave felonies punishable by correctional penalties not
exceeding 6 years imprisonment, where the offended party is a private person;
(6) The civil aspect of estafa, theft and libel;
(7) All civil cases and probate proceedings, testate and intestate, brought on appeal from
the exclusive and original jurisdiction granted to the first level courts under Section 33,
par. (1) of the Judiciary Reorganization Act of 1980; 11
(8) All cases of forcible entry and unlawful detainer brought on appeal from the exclusive
and original jurisdiction granted to the first level courts under Section 33, par. (2) of the
Judiciary Reorganization Act of 1980; 12
(9) All civil cases involving title to or possession of real property or an interest therein
brought on appeal from the exclusive and original jurisdiction granted to the first level
courts under Section 33, par. (3) of the Judiciary Reorganization Act of 1980; 13 and
(10) All habeas corpus cases decided by the first level courts in the absence of the
Regional Trial Court judge, that are brought up on appeal from the special jurisdiction
granted to the first level courts under Section 35 of the Judiciary Reorganization Act of
1980; 14
The following cases shall not be referred to CAM and JDR:
1. Civil cases which by law cannot be compromised (Article 2035, New Civil Code);
2. Other criminal cases not covered under paragraphs 3 to 6 above;
3. Habeas Corpus petitions;
4. All cases under Republic Act No. 9262 (Violence against Women and Children);
and
5. Cases with pending application for Restraining Orders/Preliminary Injunctions.
However, in cases covered under 1, 4 and 5 where the parties inform the court that they
have agreed to undergo mediation on some aspects thereof, e.g.,custody of minor
children, separation of property, or support pendente lite, the court shall refer them to
mediation.
PART TWO
Court-Annexed Mediation (CAM)
TO: All Judges of Courts Where Philippine Mediation Center (PMC) Units Have Been
Established.
Procedure
1. After the last pleading has been filed, the judge shall issue an order requiring the
parties to forthwith appear before the concerned Philippine Mediation Center (PMC)
Unit staff to start the process for the settlement of their dispute through mediation. On
the same date, the court shall give to the PMC a copy of the Order for mediation.
2. Individual parties are required to personally appear for mediation. In the event they
cannot do so, they can send their representatives who must be fully authorized to
appear, negotiate and enter into a compromise, through a Special Power of Attorney.
3. Corporations, partnerships, or other juridical entities shall be represented by a
ranking corporate officer fully authorized by a Board Resolution to offer, negotiate,
accept, decide and enter into a compromise agreement, without need of further approval
by or notification to the authorizing party.
4. The Order issued shall include a clear warning that sanctions may be imposed upon
a party for failure to comply therewith, in accordance with the Section below on
sanctions.
5. On the date set in the Order, the parties shall proceed to select a mutually acceptable
mediator from among the list of accredited mediators. If no agreement is reached, the
PMC Unit Staff shall, in the presence of the parties and the Mediators, choose by lot the
one who will mediate the dispute from among the Mediators inside the Unit, ensuring a
fair and equal distribution of cases: Provided, however, that in exceptional
circumstances where special qualifications are required of the mediator, the parties
shall be given an opportunity to select from the entire list of accredited mediators.
6. The Mediator shall be considered an officer of the court while performing his duties
as such or in connection therewith.
7. The concerned Mediator shall forthwith start the mediation process, unless the
parties and mediator agree to reset the initial mediation conference, which shall not be
later than five (5) days from the original date.
8. At the initial conference, the Mediator shall explain to both parties the mediation
process, stressing the benefits of an early settlement of their dispute based on serving
their mutual interests, rather than the legal positions taken by them.
9. With the consent of both parties, the Mediator may hold separate caucuses with each
party to determine their respective real interests in the dispute. Thereafter, another
joint conference may be held to consider various options that may resolve the dispute
through reciprocal concessions and on terms that are mutually beneficial to both the
parties.
10. The Mediator shall not record in any manner the proceedings of the joint conferences
or of the separate caucuses. No transcript or minutes of mediation proceedings shall be
taken. If personal notes are taken for guidance, the notes shall be shredded and
destroyed. Should such record exist, they shall not be admissible as evidence in any
other proceedings.
11. If no settlement has been reached at the end of the period given, the case must be
returned to the referring judge.
Sanctions
The court, upon recommendation of the Mediator, may impose sanctions upon a party
who fails to appear before the Philippine Mediation Center (PMC) Unit as directed by
the referring judge, or upon any person who engages in abusive conduct during
mediation proceedings, as provided for in the Rules of Court as part of the Pre-Trial and
other issuances of the Supreme Court, including, but not limited to censure, reprimand,
contempt, requiring the absent party to reimburse the appearing party his costs,
including attorney's fees for that day up to treble such costs, payable on or before the
date of the re-scheduled setting. Sanctions may also be imposed by the referring judge
upon his own initiative or upon motion of the interested party.
Upon justifiable cause duly proved in the hearing called on the motion to reconsider filed
by the absent party, concurred in by the concerned mediator, the sanctions imposed may
be lifted or set aside in the sound discretion of the referring judge.
Duration of Mediation in the PMC
The Mediator shall have a period of not exceeding thirty (30) days to complete the
mediation process. Such period shall be computed from the date when the parties first
appeared for the initial conference as stated in the Order to appear. An extended period
of another thirty (30) days may be granted by the court, upon motion filed by the
Mediator, with the conformity of the parties.
Suspension of periods
The period during which the case is undergoing mediation shall be excluded from the
regular and mandatory periods for trial and rendition of judgment in ordinary cases and
in cases under summary proceedings.
Settlement
If full settlement of the dispute is reached, the parties, assisted by their respective
counsels, shall draft the compromise agreement which shall be submitted to the court
for judgment upon compromise or other appropriate action. Where compliance is
forthwith made, the parties shall instead submit a satisfaction of claims or a mutual
withdrawal of the case and, thereafter, the court shall enter an order dismissing the
case.
If partial settlement is reached, the parties shall, with the assistance of counsel, submit
the terms thereof for the appropriate action of the court, without waiting for resolution
of the unsettled part.
In relation to the unsettled part of the dispute, the court shall proceed to conduct JDR
proceedings in accordance with PART THREE hereof where JDR is available.
PART THREE
Judicial Dispute Resolution
I. Mandate
Unless otherwise directed by the Supreme Court, all judges who have undergone
orientation in JDR procedures and completed their training in mediation, conciliation
and neutral evaluation, are authorized to conduct JDR proceedings in accordance with
these guidelines for the settlement of disputes pending in their courts, after the parties
failed to settle their disputes during Court-Annexed Mediation at the Philippine
Mediation Center Units (PMCU).
II. Procedure
Judicial proceedings shall be divided into two stages: (1) from the filing of a complaint
to the conduct of CAM and JDR during the pre-trial stage, and (2) pre-trial proper to
trial and judgment. The judge to whom the case has been originally raffled, who shall
be called the JDR Judge, shall preside over the first stage. The judge, who shall be called
the trial judge, shall preside over the second stage.
At the initial stage of the pre-trial conference, the JDR judge briefs the parties and
counsels of the CAM and JDR processes. Thereafter, he issues an Order of Referral of
the case to CAM and directs the parties and their counsels to proceed to the PMCU
bringing with them a copy of the Order of Referral. The JDR judge shall include in said
Order, or in another Order, the pre-setting of the case for JDR not earlier than forty-five
(45) days from the time the parties first personally appear at the PMCU so that JDR
will be conducted immediately if the parties do not settle at CAM.
All incidents or motions filed during the first stage shall be dealt with by the JDR judge.
If JDR is not conducted because of the failure of the parties to appear, the JDR judge
may impose the appropriate sanctions and shall continue with the proceedings of the
case.
If the parties do not settle their dispute at CAM, the parties and their counsels shall
appear at the preset date before the JDR judge, who will then conduct the JDR process
as mediator, neutral evaluator and/or conciliator in order to actively assist and facilitate
negotiations among the parties for them to settle their dispute. As mediator and
conciliator, the judge facilitates the settlement discussions between the parties and tries
to reconcile their differences. As a neutral evaluator, the judge assesses the relative
strengths and weaknesses of each party's case and makes a non-binding and impartial
evaluation of the chances of each party's success in the case. On the basis of such neutral
evaluation, the judge persuades the parties to a fair and mutually acceptable settlement
of their dispute.
The JDR judge shall not preside over the trial of the case 15 when the parties did not
settle their dispute at JDR.
III. Courts
1. Multiple Sala Court — If the case is not resolved during JDR, it shall be raffled to
another branch for the pre trial proper 16 up to judgment.
For cases with pending applications for restraining orders/preliminary injunctions, the
judge to whom the case was raffled shall rule on the said applications. During the pre-
trial stage, the judge refers the case to CAM, but if the parties do not settle at CAM, the
case will be raffled to another branch for JDR. If the parties do not settle at JDR, the
case will be returned to the branch that ruled on the applications for the pre-trial proper
and up to judgment. 17
2. Single Sala Court. — Unless otherwise agreed upon as provided below, the JDR
proceedings will be conducted by the judge of the pair court, if any, otherwise, by the
judge of the nearest court as determined by the concerned Executive Judge. The JDR
proceedings shall be conducted at the station where the case was originally filed. The
result of the JDR proceedings shall be referred to the court of origin for appropriate
action, e.g., approval of the compromise agreement, trial, etc.
Notwithstanding the foregoing, before the commencement of the JDR proceedings, the
parties may file a joint written motion requesting that the court of origin conduct the
JDR proceedings and trial.
3. Family Courts — Unless otherwise agreed upon as provided below, the JDR
proceedings in areas where only one court is designated as a family court, shall be
conducted by a judge of another branch through raffle. However, if there is another
family court in the same area, the family court to whom the case was originally raffled
shall conduct JDR proceedings and if no settlement is reached, the other family court
shall conduct the pre-trial proper and trial.
Notwithstanding the foregoing, before commencement of the JDR proceedings, the
parties may file a joint written motion requesting that the family court to which the case
was originally raffled shall conduct the JDR proceedings and trial.
Despite the non-mediatable nature of the principal case, like annulment of marriage,
other issues such as custody of children, support, visitation, property relations and
guardianship, may be referred to CAM and JDR to limit the issues for trial.
4. Commercial, Intellectual Property, and Environmental Courts — Unless otherwise
agreed upon as provided below, the JDR proceedings in areas where only one court is
designated as commercial/intellectual property/environmental court, hereafter referred
to as special court, shall be conducted by another judge through raffle and not by the
judge of the special court. Where settlement is not reached, the judge of the special court
shall be the trial judge. Any incident or motion filed before the pre-trial stage shall be
dealt with by the special court that shall refer the case to CAM.
Notwithstanding the foregoing, before commencement of the JDR proceedings, the
parties may file a joint written motion requesting that the special courts to which the
case was originally raffled shall conduct the JDR proceedings and trial.
IV. JDR During Trial
Cases may be referred to JDR even during the trial stage upon written motion of one or
both parties indicating willingness to discuss a possible compromise. If the motion is
granted, the trial shall be suspended 18 and the case referred to JDR, which shall be
conducted by another judge through raffle in multiple sala courts.
If settlement is reached during JDR, the JDR court shall take appropriate action
thereon, i.e., approval/disapproval of the compromise agreement. If settlement is not
reached at JDR, the case shall be returned to the referring court for continuation of trial.
In single sala courts, the JDR shall be conducted by the nearest court (or pair court, if
any) regardless of the level of the latter court. The result of the JDR proceedings shall
be referred to the court of origin for appropriate action, e.g., approval of the compromise
agreement, trial, etc.
The parties may, by joint written motion, despite confidential information that may be
divulged during JDR proceedings, file a request that their case be not transferred to
other courts for JDR and that they agree to have the trial judge continue the trial should
the case not be settled through JDR.
V. Settlement Period
Any Settlement Period declared by the Supreme Court is understood to include JDR
and, therefore, half of all cases referred to mediation shall be for JDR settlement. The
procedure shall be as stated in Roman Numeral IV above, except that no written motion
is required from the parties for their case to be referred to JDR. TEcCHD
VI. Party Participation
1. Individual Party Litigants
The party litigants shall personally attend all mediation conferences or through duly
authorized representatives. The authority of the representatives shall be in writing and
shall state that they are fully empowered to offer, negotiate, accept, decide, and enter
into a compromise agreement without need of further approval by or notification to the
authorizing parties.
2. Corporate Party Litigants
In case of corporations, the representatives must be senior management officials with
written authority from the Board of Directors to offer, negotiate, accept, decide, and
enter into compromise agreement without need of further approval by or notification to
the authorizing parties.
VII. Judgments/Decisions in JDR
Decisions/Judgments approving the compromise agreements of the parties, through the
efforts of the judge as a mediator, conciliator or neutral evaluator, shall contain a
statement to the effect that the Judgments/Decisions were achieved through JDR. This
is to distinguish Judgments/Decisions approving compromise agreements secured
through CAM. Copies of said Judgments/Decisions shall be submitted to the Philippine
Mediation Center Unit for documentation purposes.
VIII. Sanctions
A party who fails to appear on the date set for JDR conference, may forthwith be imposed
the appropriate sanction as provided in Rule 18 of the Revised Rules of Court and
relevant issuances of the Supreme Court including, but not limited to censure,
reprimand, contempt, and requiring the absent party to reimburse the appearing party
his costs, including attorney's fees for that day up to treble such costs, payable on or
before the date of the re-scheduled setting. Sanctions may be imposed by the JDR judge
upon motion of the appearing party or motu proprio.
Upon justifiable cause duly proved in the hearing of the motion to reconsider filed by
the absent party, the sanctions imposed may be lifted, set aside or modified in the sound
discretion of the JDR judge.
A representative who appears on behalf of an individual or corporate party without the
required authorization by special power of attorney or board resolution, respectively,
may similarly be imposed appropriate sanctions.
IX. Duration of JDR proceedings
To complete the JDR process, judges of the First Level Courts shall have a period of not
exceeding thirty (30) days, while judges of the Second Level Courts shall have a period
of not exceeding sixty (60) days. A longer period, however, may be granted upon the
discretion of the JDR judge if there is a high probability of settlement and upon joint
written motion of the parties. Both periods shall be computed from the date when the
parties first appeared for JDR proceedings as directed in the respective Orders issued
by the judge. As far as practicable, JDR conferences shall be set not more than two (2)
weeks apart so as to afford the parties ample time to negotiate meaningfully for
settlement.
In criminal cases covered by CAM and JDR, where settlement on the civil aspect has
been reached but the period of payment in accordance with the terms of settlement
exceeds one (1) year, the case may be archived upon motion of the prosecution, with
notice to the private complainant and approval by the judge.
X. Suspension of periods
The period during which the case undergoing JDR proceedings shall be excluded from
the regular and mandatory periods for trial and rendition of judgment in ordinary cases
and in cases under summary proceedings.
XI. Settlement
A. Civil Cases:
If full settlement of the dispute is reached, the parties, assisted by their respective
counsels, shall draft the compromise agreement which shall be submitted to the court
for a judgment upon compromise, enforceable by execution.
Where full compliance with the terms of the compromise is forthwith made, the parties,
instead of submitting a compromise agreement, shall submit a satisfaction of claims or
a mutual withdrawal of the parties' respective claims and counterclaims. Thereafter,
the court shall enter an order dismissing the case.
If partial settlement is reached, the parties shall, with the assistance of counsel, submit
the terms thereof for the court's approval and rendition of a judgment upon partial
compromise, which may be enforced by execution without waiting for resolution of the
unsettled part.
In relation to the unsettled part of the dispute, the court shall proceed to conduct trial
on the merits of the case should the parties file a joint motion for him to do so, despite
confidential information that may have been divulged during the conciliation/mediation
stage of the proceedings. Otherwise, the JDR Judge shall turn over the case to a new
judge by re-raffle in multiple sala courts or to the originating court in single sala courts,
for the conduct of pre-trial proper and trial.
B. Criminal Cases:
If settlement is reached on the civil aspect of the criminal case, the parties, assisted by
their respective counsels, shall draft the compromise agreement which shall be
submitted to the court for appropriate action.
Action on the criminal aspect of the case will be determined by the Public Prosecutor,
subject to the appropriate action of the court.
If settlement is not reached by the parties on the civil aspect of the criminal case, the
JDR judge shall proceed to conduct the trial on the merits of the case should the parties
file a joint written motion for him to do so, despite confidential information that may
have been divulged during the JDR proceedings. Otherwise, the JDR Judge shall turn
over the case to a new judge by re-raffle in multiple sala courts or to the originating
court in single sala courts, for the conduct of pre-trial proper and trial.
XII. Pre-trial Proper
Where no settlement or only a partial settlement was reached, and there being no joint
written motion submitted by the parties, as stated in the last preceding paragraphs, the
JDR judge shall turn over the case to the trial judge, determined by re-raffle in multiple
sala courts or to the originating court in single sala courts, as the case may be, to conduct
pre-trial proper, as mandated by Rules 18 and 118 of the Rules of Court.
XIII. Trial and Judgment
The trial judge to whom the case was turned over, shall expeditiously proceed to trial,
after the pre-trial and, thereafter, render judgment in accordance with the established
facts, evidence, and the applicable laws.
PART FOUR
Provisions Common to Both CAM and JDR
I. Confidentiality
Any and all matters discussed or communications made, including requests for
mediation, and documents presented during the mediation proceedings before the
Philippine Mediation Center or the JDR proceedings before the trial judge, shall be
privileged and confidential, and the same shall be inadmissible as evidence for any
purpose in any other proceedings. However, evidence or information that is otherwise
admissible does not become inadmissible solely by reason of its use in mediation or
conciliation.
Further, the JDR judge shall not pass any information obtained in the course of
conciliation and early neutral evaluation to the trial judge or to any other person. This
prohibition shall include all court personnel or any other person present during such
proceedings. All JDR conferences shall be conducted in private.
II. Role of Lawyers in mediation 19 and in JDR Proceedings
Lawyers may attend mediation proceedings in the role of adviser and consultant to their
clients, dropping their combative role in the adjudicative process, and giving up their
dominant role in judicial trials. They must accept a less directive role in order to allow
the parties more opportunities to craft their own agreement.
In particular, they shall perform the following functions:
1. Help their clients comprehend the mediation process and its benefits and allow them
to assume greater personal responsibility in making decisions for the success of
mediation in resolving the dispute.
2. Discuss with their clients the following:
* The substantive issues involved in the dispute.
* Prioritization of resolution in terms of importance to client.
* Understanding the position of the other side and the underlying fears, concerns, and
needs underneath that position.
* Need for more information or facts to be gathered or exchanged with the other side for
informed decision making.
* Possible bargaining options but stressing the need to be open-minded about other
possibilities.
* The best, worst, and most likely alternatives to a negotiated agreement.
3. Assist in preparing a compromise agreement that is not contrary to law, morals, good
customs, public order, or public policy so that the same may be approved by the court,
paying particular attention to issues of voluntary compliance of what have been agreed
upon, or otherwise to issues of enforcement in case of breach.
4. Assist, wherever applicable, in the preparation of a manifestation of satisfaction of
claims and mutual withdrawal of complaint and counterclaim as basis for the court to
issue an order of dismissal.
PART FIVE
SC-PHILJA-PMC Mediation Trust Fund
I. Creation of Trust Fund
The Mediation Fees collected and collectible, pursuant to Section 9, Rule 141, as
amended, of the Rules of Court, and all income therefrom shall constitute a special fund,
to be known as the SC-PHILJA-PMC Mediation Trust Fund, which shall be
administered and disbursed in accordance with guidelines set by court issuances, for
purposes enumerated in Section 9, Rule 141 of the Revised Rules of Court.
All revenues of the PMC Office from sources other than the mediation fees above shall
form part of its Special ADR Fund (SAF), which shall be administered and disbursed by
PHILJA in accordance with the existing guidelines approved by the Supreme Court.
II. Collection of Mediation Fees
(Sec. 9 of Rule 141, A.M. No. 04-2-04-SC)
A. Trial Courts
The Clerks of Court of the Regional Trial Courts and the First-Level Courts shall collect
the amount of FIVE HUNDRED PESOS (P500.00) upon the filing of the following:
(1) Complaint or an Answer with a mediatable permissive counterclaim or cross-claim,
complaint-in-intervention, third-party complaint, fourth-party complaint, etc., in civil
cases, a Petition, an Opposition, and a Creditors' Claim in Special Proceedings;
(2) Complaint/Information for offenses with maximum imposable penalty of prision
correccional in its maximum period or six years imprisonment, except where the civil
liability is reserved or is subject of a separate action;
(3) Complaint/Information for estafa, theft, and libel cases, except where the civil
liability is reserved or is subject of a separate action;
(4) Complaint/Information for Quasi-Offenses under Title 14 of the Revised Penal Code;
(5) Intellectual Property cases;
(6) Commercial or corporate cases; and
(7) Environmental cases
The Clerks of Court of the First Level Courts shall collect the amount of FIVE
HUNDRED PESOS (P500.00) upon the filing of a Notice of Appeal with the Regional
Trial Court.
The Clerks of Court of the Regional Trial Court shall collect the amount of ONE
THOUSAND PESOS (P1,000.00) upon the filing of a Notice of Appeal with the Court of
Appeals or the Sandiganbayan.
B. Court of Appeals and Court of Tax Appeals
The Clerks of Court of the Court of Appeals and Court of Tax Appeals shall collect the
amount of ONE THOUSAND PESOS (P1,000.00) upon the filing of a mediatable case,
petition, special civil action, a comment/answer to the petition or action, and the
appellee's brief. The Clerk of Court of the Court of Tax Appeals shall also collect the
amount of ONE THOUSAND PESOS (P1,000.00) for the appeal from the decision of a
CTA Division to the CTA En Banc.
Provided that, in all cases, a pauper litigant shall be exempt from contributing to the
Mediation Fund. Despite such exemption, the court shall provide that the unpaid
contribution to the Mediation Fund shall be considered a lien on any monetary award
in a judgment favorable to the pauper litigant.
And, provided further, that an accused-appellant shall also be exempt from contributing
to the Mediation Fund.
The amount collected shall be receipted and separated as part of a special fund, to be
known as the "Mediation Fund", and shall accrue to the SC-PHILJA-PMC Fund,
disbursements from which are and shall be pursuant to guidelines approved by the
Supreme Court.
The mediation fee is the amount collected from the parties. The amount is added to the
mediation fund from where disbursements are made for the authorized expenditures
stated above. The mediation fee is not collected for mediation services rendered or to be
rendered. It is intended as a contribution to promote mediation. The mediator's fee is
the authorized amount paid from the mediation fund for services rendered by a
mediator.
PART SIX
The Philippine Mediation Center Office (PMCO) and Mediation Center Units
(A.O. No. 33-2008, February 12, 2008)

The Fund shall be utilized for the promotion of court-annexed mediation and other I. Philippine Mediation Center Office and PMC Units
relevant modes of alternative dispute resolution (ADR), training of mediators, payment
of mediator's fees, and operating expenses for technical assistance and The Philippine Mediation Center Office shall primarily be responsible for the expansion,
organizations/individuals, transportation/communication expenses, photocopying, development, implementation, monitoring, and sustainability of SCADR mechanisms,
supplies and equipment, expense allowance, and miscellaneous expenses, whenever namely:
necessary, subject to auditing rules and regulations. In view thereof, the mediation fees
shall not form part of the Judicial Development Fund (JDF) under P.D. No. 1949 nor of a. Court-Annexed Mediation (CAM)
the special allowances granted to justices and judges under Republic Act No. 9227.
b. Appellate Court Mediation (ACM)
III. Utilization and Disbursement
(A.M. No. 05-3-25-SC-PHILJA dated 26 April 2005) c. Judicial Dispute Resolution (JDR)

A. Purpose and Utilization of the Mediation Fund d. Mobile Court-Annexed Mediation (MCAM)

The Fund shall be used for: e. Court-Annexed Arbitration (CAA) and other Alternative Dispute Resolution
mechanisms
a. Establishment of PMC Units;
The PMCO shall likewise be primarily tasked with the organization of PMC units, as it
b. Training, seminars/workshops/internship programs for Mediators; may deem necessary, throughout the country. It shall be under the operational control
of and supervision of PHILJA, in coordination with the Office of the Court
c. Payment of Mediators' Fees, including the PMC Unit Staff; Administrator, through the Executive Judges.

d. Payment of operating expenses; II. Organizational Structure

e. Advocacy and promotion of court-annexed mediation and other relevant modes of The Philippine Mediation Center Office shall be composed of:
ADR;
a) Executive Committee 21 — The powers and authority of the PMC Office shall be
f. Such other expenses as authorized by Section 9, Rule 141 of the Rules of Court. vested in and exercised by an Executive Committee composed of:

The Fund shall be managed by PHILJA subject to accounting and auditing rules and PHILJA Chancellor — Chairperson
regulations.
Four (4) regular members, namely:
B. Deposit of the Mediation Fund 1. Dean Eduardo D. de los Angeles
2. Dean Pacifico A. Agabin
The Philippine Judicial Academy (PHILJA) has already closed the SC PHILJA TRUST 3. Judge Divina Luz P. Aquino-Simbulan
FUND Peso Current Account No. 3472-1001-30 as of 30 March 2009. Hence, all 4. Atty. Linda L. Malenab-Hornilla
mediation fees collected are to be deposited solely under SC PHILJA PMC Rule 141 Peso
Current Account (CA) No. 3472-1000-08. 20 Four (4) Ex-officio members, namely:
Court Administrator
IV. Mediation Fee, Mediator's Fee and Mediation Fund, distinguished Executive Secretary, PHILJA 22
PHILJA Chief of Office for PMC
Chairperson, PHILJA ADR Department b. Implement, in coordination with the Office of the Court Administrator, rules and
policies of the Supreme Court on ADR mechanisms, namely, Court-Annexed Mediation
b) PHILJA Chief of Office for PMC — Chief of Office of the Philippine Mediation Center (CAM), Appellate Court Mediation (ACM), Judicial Dispute Resolution (JDR), Mobile
Office Court-Annexed Mediation (MCAM), and eventually Court-Annexed Arbitration (CAA)
and other Alternative Dispute Resolution mechanisms;
c) PHILJA Assistant Chief of Office for PMC
c. Establish such PMC Units as may be necessary;
d) CENTRAL OFFICE
d. Provide a system for the recruitment, screening, training, and accreditation of
a. Mediation Planning and Research Division Mediators;
b. Mediation Resource Management Division
c. Mediation Education, Training and Monitoring Division e. Monitor and evaluate the performance of Mediators, such as in settling disputes and
e) Mediation Center Units, composition in observing the Code of Ethical Standards for Mediators, upgrade their mediation
skills, and oversee their further development. Such evaluation shall be the basis for the
a. Court-Annexed Mediation (CAM) renewal of their accreditation as Mediators;
* Mediation Staff Officer V
* Mediation Staff Assistant II f. Provide a grievance mechanism and procedure for addressing complaints against
* Mediation Aide Mediators and PMC Unit Staff;
* Accredited Mediators
g. Promote and sustain the programs and activities of Court-annexed Mediation (CAM),
b. Appellate Court Mediation (ACM) Appellate Court Mediation (ACM), Judicial Dispute Resolution (JDR), Mobile Court-
* Mediation Staff Officer VI Annexed Mediation (MCAM), and eventually Court-Annexed Arbitration (CAA) and
* Mediation Staff Officer IV other Alternative Dispute Resolution mechanisms;
* Mediation Staff Assistant II
* Mediation Aide h. Call on any government agency, office, instrumentality, commission or council to
* Accredited Mediation render such assistance as may be necessary for the efficient performance of its functions;
and
c. Judicial Dispute Resolution (JDR)
a. Exercise such other functions necessary in furtherance of its mandate.
* Mediation Staff Officer V
* Mediation Staff Assistant II
* Mediation Aide

d. Mobile Court Annexed-Mediation (MCAM)

Every bus of the Justice on Wheels (JOW) deployed for mediation in selected areas is
considered as a PMC Unit, thus, it is entitled to the following:

* Mediation Staff Officer V

* Mediation Staff Assistant II
* Mediation Aide
* Accredited Mediators

III. Powers and Functions of the PMCO

The PMC Office shall exercise the following powers and functions in order to accomplish
its mandate under A.M. 01-10-5-SC-PHILJA:

a. Develop and promulgate rules and regulations that it may deem necessary, subject to
the approval of the Supreme Court, upon recommendation of the Executive Committee
and the PHILJA Board of Trustees;
 (s) R.A. No. 9003, Ecological Solid Waste Management Act;
(t) R.A. No. 9072, National Caves and Cave Resource Management Act;
A.M. No. 09-6-8-SC, 29 April 2010, Rules of Procedure for Environmental Cases (provisions on (u) R.A. No. 9147, Wildlife Conservation and Protection Act;
mediation) (v) R.A. No. 9175, Chainsaw Act;
(w) R.A. No. 9275, Clean Water Act;
RULES OF PROCEDURE FOR ENVIRONMENTAL CASES (x) R.A. No. 9483, Oil Spill Compensation Act of 2007; and
A.M. No. 09-6-8-SC April 13, 2010 (y) Provisions in C.A. No. 141, The Public Land Act; R.A. No. 6657, Comprehensive
Agrarian Reform Law of 1988; R.A. No. 7160, Local Government Code of 1991; R.A.
Acting on the recommendation of the Chairperson of the Sub-committee on the Rules of No. 7161, Tax Laws Incorporated in the Revised Forestry Code and Other
Procedure for Environmental Cases submitting for this Court’s consideration and Environmental Laws (Amending the NIRC); R.A. No. 7308, Seed Industry
approval the proposed Rules of Procedure for Environmental Cases, the Court Resolved Development Act of 1992; R.A. No. 7900, High-Value Crops Development
to APPROVE the same.
Rules of Procedure for Environmental Cases Act; R.A. No. 8048, Coconut Preservation
These Rules shall take effect within fifteen (15) days following its publication once in a Act; R.A. No. 8435, Agriculture and Fisheries Modernization Act of 1997; R.A. No. 9522,
newspaper of general circulation. The Philippine Archipelagic Baselines Law; R.A. No. 9593, Renewable Energy Act of
2008; R.A. No. 9637, Philippine Biofuels Act; and other existing laws that relate to the
PART I conservation, development, preservation, protection and utilization of the environment
and natural resources.
RULE 1
GENERAL PROVISIONS Section 3. Objectives. - The objectives of these Rules are:

Section 1. Title. — These Rules shall be known as "The Rules of Procedure for (a) To protect and advance the constitutional right of the people to a balanced and
Environmental Cases." healthful ecology;

Section 2. Scope. — These Rules shall govern the procedure in civil, criminal and special (b) To provide a simplified, speedy and inexpensive procedure for the enforcement of
civil actions before the Regional Trial Courts, Metropolitan Trial Courts, Municipal environmental rights and duties recognized under the Constitution, existing laws, rules
Trial Courts in Cities, Municipal Trial Courts and Municipal Circuit Trial Courts and regulations, and international agreements;
involving enforcement or violations of environmental and other related laws, rules and
regulations such as but not limited to the following: (c) To introduce and adopt innovations and best practices ensuring the effective
enforcement of remedies and redress for violation of environmental laws; and
(a) Act No. 3572, Prohibition Against Cutting of Tindalo, Akli, and Molave Trees;
(b) P.D. No. 705, Revised Forestry Code; (d) To enable the courts to monitor and exact compliance with orders and judgments in
(c) P.D. No. 856, Sanitation Code; environmental cases.
(d) P.D. No. 979, Marine Pollution Decree;
(e) P.D. No. 1067, Water Code; Section 4. Definition of Terms. -
(f) P.D. No. 1151, Philippine Environmental Policy of 1977;
(g) P.D. No. 1433, Plant Quarantine Law of 1978; (a) By-product or derivatives means any part taken or substance extracted from wildlife,
(h) P.D. No. 1586, Establishing an Environmental Impact Statement System Including in raw or in processed form including stuffed animals and herbarium specimens.
Other Environmental Management Related Measures and for Other Purposes; 1avvphi1
(i) R.A. No. 3571, Prohibition Against the Cutting, Destroying or Injuring of Planted or
Growing Trees, Flowering Plants and Shrubs or Plants of Scenic Value along Public (b) Consent decree refers to a judicially-approved settlement between concerned parties
Roads, in Plazas, Parks, School Premises or in any Other Public Ground; based on public interest and public policy to protect and preserve the environment.
(j) R.A. No. 4850, Laguna Lake Development Authority Act;
(k) R.A. No. 6969, Toxic Substances and Hazardous Waste Act; (c) Continuing mandamus is a writ issued by a court in an environmental case directing
(l) R.A. No. 7076, People’s Small-Scale Mining Act; any agency or instrumentality of the government or officer thereof to perform an act or
(m) R.A. No. 7586, National Integrated Protected Areas System Act including all laws, series of acts decreed by final judgment which shall remain effective until judgment is
decrees, orders, proclamations and issuances establishing protected areas; fully satisfied.
(n) R.A. No. 7611, Strategic Environmental Plan for Palawan Act;
(o) R.A. No. 7942, Philippine Mining Act; (d) Environmental protection order (EPO) refers to an order issued by the court directing
(p) R.A. No. 8371, Indigenous Peoples Rights Act; or enjoining any person or government agency to perform or desist from performing an
(q) R.A. No. 8550, Philippine Fisheries Code; act in order to protect, preserve or rehabilitate the environment.
(r) R.A. No. 8749, Clean Air Act;
(e) Mineral refers to all naturally occurring inorganic substance in solid, gas, liquid, or
any intermediate state excluding energy materials such as coal, petroleum, natural gas,
radioactive materials and geothermal energy.
(f) Precautionary principle states that when human activities may lead to threats of
serious and irreversible damage to the environment that is scientifically plausible but
uncertain, actions shall be taken to avoid or diminish that threat.
(g) Strategic lawsuit against public participation (SLAPP) refers to an action whether
civil, criminal or administrative, brought against any person, institution or any
government agency or local government unit or its officials and employees, with the
intent to harass, vex, exert undue pressure or stifle any legal recourse that such person,
institution or government agency has taken or may take in the enforcement of
environmental laws, protection of the environment or assertion of environmental rights.
(h) Wildlife means wild forms and varieties of flora and fauna, in all developmental
stages including those which are in captivity or are being bred or propagated.
PART II
CIVIL PROCEDURE
RULE 2
PLEADINGS AND PARTIES
Section 1. Pleadings and motions allowed. — The pleadings and motions that may be
filed are complaint, answer which may include compulsory counterclaim and cross-
claim, motion for intervention, motion for discovery and motion for reconsideration of
the judgment.
Motion for postponement, motion for new trial and petition for relief from judgment
shall be allowed in highly meritorious cases or to prevent a manifest miscarriage of
justice.
Section 2. Prohibited pleadings or motions. — The following pleadings or motions shall
not be allowed:
(z) Motion to dismiss the complaint;
(aa) Motion for a bill of particulars;
(bb) Motion for extension of time to file pleadings, except to file answer, the extension
not to exceed fifteen (15) days;
(cc) Motion to declare the defendant in default;
(dd) Reply and rejoinder; and
(ee) Third party complaint.
Section 3. Verified complaint. — The verified complaint shall contain the names of the
parties, their addresses, the cause of action and the reliefs prayed for.
The plaintiff shall attach to the verified complaint all evidence proving or supporting
the cause of action consisting of the affidavits of witnesses, documentary evidence and
if possible, object evidence. The affidavits shall be in question and answer form and shall
comply with the rules of admissibility of evidence.
The complaint shall state that it is an environmental case and the law involved. The
complaint shall also include a certification against forum shopping. If the complaint is
not an environmental complaint, the presiding judge shall refer it to the executive judge
for re-raffle.
Section 4. Who may file. — Any real party in interest, including the government and
juridical entities authorized by law, may file a civil action involving the enforcement or
violation of any environmental law.
Section 5. Citizen suit. — Any Filipino citizen in representation of others, including
minors or generations yet unborn, may file an action to enforce rights or obligations
under environmental laws. Upon the filing of a citizen suit, the court shall issue an order
which shall contain a brief description of the cause of action and the reliefs prayed for,
requiring all interested parties to manifest their interest to intervene in the case within
fifteen (15) days from notice thereof. The plaintiff may publish the order once in a
newspaper of a general circulation in the Philippines or furnish all affected barangays
copies of said order.
Citizen suits filed under R.A. No. 8749 and R.A. No. 9003 shall be governed by their
respective provisions.
Section 6. Service of the complaint on the government or its agencies. - Upon the filing
of the complaint, the plaintiff is required to furnish the government or the appropriate
agency, although not a party, a copy of the complaint. Proof of service upon the
government or the appropriate agency shall be attached to the complaint.
Section 7. Assignment by raffle. - If there is only one (1) designated branch in a multiple-
sala court, the executive judge shall immediately refer the case to said branch. If there
are two (2) or more designated branches, the executive judge shall conduct a special
raffle on the day the complaint is filed.
Section 8. Issuance of Temporary Environmental Protection Order (TEPO). - If it
appears from the verified complaint with a prayer for the issuance of an Environmental
Protection Order (EPO) that the matter is of extreme urgency and the applicant will
suffer grave injustice and irreparable injury, the executive judge of the multiple-sala
court before raffle or the presiding judge of a single-sala court as the case may be, may
issue ex parte a TEPO effective for only seventy-two (72) hours from date of the receipt
of the TEPO by the party or person enjoined. Within said period, the court where the
case is assigned, shall conduct a summary hearing to determine whether the TEPO may
be extended until the termination of the case.
The court where the case is assigned, shall periodically monitor the existence of acts
that are the subject matter of the TEPO even if issued by the executive judge, and may
lift the same at any time as circumstances may warrant.
The applicant shall be exempted from the posting of a bond for the issuance of a TEPO.
Section 9. Action on motion for dissolution of TEPO. - The grounds for motion to dissolve
a TEPO shall be supported by affidavits of the party or person enjoined which the
applicant may oppose, also by affidavits.
The TEPO may be dissolved if it appears after hearing that its issuance or continuance
would cause irreparable damage to the party or person enjoined while the applicant may
be fully compensated for such damages as he may suffer and subject to the posting of a
sufficient bond by the party or person enjoined.
Section 10. Prohibition against temporary restraining order (TRO) and preliminary
injunction. - Except the Supreme Court, no court can issue a TRO or writ of preliminary
injunction against lawful actions of government agencies that enforce environmental
laws or prevent violations thereof.
Section 11. Report on TEPO, EPO, TRO or preliminary injunction. - The judge shall
report any action taken on a TEPO, EPO, TRO or a preliminary injunction, including
its modification and dissolution, to the Supreme Court, through the Office of the Court
Administrator, within ten (10) days from the action taken.
Section 12. Payment of filing and other legal fees. - The payment of filing and other legal
fees by the plaintiff shall be deferred until after judgment unless the plaintiff is allowed
to litigate as an indigent. It shall constitute a first lien on the judgment award.
For a citizen suit, the court shall defer the payment of filing and other legal fees that
shall serve as first lien on the judgment award.
Section 13. Service of summons, orders and other court processes. - The summons, orders
and other court processes may be served by the sheriff, his deputy or other proper court
officer or for justifiable reasons, by the counsel or representative of the plaintiff or any
suitable person authorized or deputized by the court issuing the summons.
Any private person who is authorized or deputized by the court to serve summons, orders
and other court processes shall for that purpose be considered an officer of the court.
The summons shall be served on the defendant, together with a copy of an order
informing all parties that they have fifteen (15) days from the filing of an answer, within
which to avail of interrogatories to parties under Rule 25 of the Rules of Court and
request for admission by adverse party under Rule 26, or at their discretion, make use
of depositions under Rule 23 or other measures under Rules 27 and 28.
Should personal and substituted service fail, summons by publication shall be allowed.
In the case of juridical entities, summons by publication shall be done by indicating the
names of the officers or their duly authorized representatives.
Section 14. Verified answer. - Within fifteen (15) days from receipt of summons, the
defendant shall file a verified answer to the complaint and serve a copy thereof on the
plaintiff. The defendant shall attach affidavits of witnesses, reports, studies of experts
and all evidence in support of the defense.
Affirmative and special defenses not pleaded shall be deemed waived, except lack of
jurisdiction.
Cross-claims and compulsory counterclaims not asserted shall be considered barred. The
answer to counterclaims or cross-claims shall be filed and served within ten (10) days
from service of the answer in which they are pleaded.
Section 15. Effect of failure to answer. - Should the defendant fail to answer the
complaint within the period provided, the court shall declare defendant in default and
upon motion of the plaintiff, shall receive evidence ex parte and render judgment based
thereon and the reliefs prayed for.
RULE 3
PRE-TRIAL
Section 1. Notice of pre-trial. - Within two (2) days from the filing of the answer to the
counterclaim or cross-claim, if any, the branch clerk of court shall issue a notice of the
pre-trial to be held not later than one (1) month from the filing of the last pleading.
The court shall schedule the pre-trial and set as many pre-trial conferences as may be
necessary within a period of two (2) months counted from the date of the first pre-trial
conference.
Section 2. Pre-trial brief. - At least three (3) days before the pretrial, the parties shall
submit pre-trial briefs containing the following:
(a) A statement of their willingness to enter into an amicable settlement indicating the
desired terms thereof or to submit the case to any of the alternative modes of dispute
resolution;
(b) A summary of admitted facts and proposed stipulation of facts;
(c) The legal and factual issues to be tried or resolved. For each factual issue, the parties
shall state all evidence to support their positions thereon. For each legal issue, parties
shall state the applicable law and jurisprudence supporting their respective positions
thereon;
(d) The documents or exhibits to be presented, including depositions, answers to
interrogatories and answers to written request for admission by adverse party, stating
the purpose thereof;
(e) A manifestation of their having availed of discovery procedures or their intention to
avail themselves of referral to a commissioner or panel of experts;
(f) The number and names of the witnesses and the substance of their affidavits;
(g) Clarificatory questions from the parties; and
(h) List of cases arising out of the same facts pending before other courts or
administrative agencies. Failure to comply with the required contents of a pre-trial brief
may be a ground for contempt.
Failure to file the pre-trial brief shall have the same effect as failure to appear at the
pre-trial.
Section 3. Referral to mediation. - At the start of the pre-trial conference, the court shall
inquire from the parties if they have settled the dispute; otherwise, the court shall
immediately refer the parties or their counsel, if authorized by their clients, to the
Philippine Mediation Center (PMC) unit for purposes of mediation. If not available, the
court shall refer the case to the clerk of court or legal researcher for mediation.
Mediation must be conducted within a non-extendible period of thirty (30) days from
receipt of notice of referral to mediation.
The mediation report must be submitted within ten (10) days from the expiration of the
30-day period.
Section 4. Preliminary conference. - If mediation fails, the court will schedule the
continuance of the pre-trial. Before the scheduled date of continuance, the court may
refer the case to the branch clerk of court for a preliminary conference for the following
purposes:
(a) To assist the parties in reaching a settlement;
(b) To mark the documents or exhibits to be presented by the parties and copies thereof
to be attached to the records after comparison with the originals;
(c) To ascertain from the parties the undisputed facts and admissions on the
genuineness and due execution of the documents marked as exhibits;
(d) To require the parties to submit the depositions taken under Rule 23 of the Rules of
Court, the answers to written interrogatories under Rule 25, and the answers to request
for admissions by the adverse party under Rule 26;
(e) To require the production of documents or things requested by a party under Rule 27
and the results of the physical and mental examination of persons under Rule 28;
(f) To consider such other matters as may aid in its prompt disposition;
(g) To record the proceedings in the "Minutes of Preliminary Conference" to be signed
by both parties or their counsels;
(h) To mark the affidavits of witnesses which shall be in question and answer form and
shall constitute the direct examination of the witnesses; and
(i) To attach the minutes together with the marked exhibits before the pre-trial proper.
The parties or their counsel must submit to the branch clerk of court the names,
addresses and contact numbers of the affiants.
During the preliminary conference, the branch clerk of court shall also require the
parties to submit the depositions taken under Rule 23 of the Rules of Court, the answers
to written interrogatories under Rule 25 and the answers to request for admissions by
the adverse party under Rule 26. The branch clerk of court may also require the
production of documents or things requested by a party under Rule 27 and the results
of the physical and mental examination of persons under Rule 28.
Section 5. Pre-trial conference; consent decree. - The judge shall put the parties and
their counsels under oath, and they shall remain under oath in all pre-trial conferences.
The judge shall exert best efforts to persuade the parties to arrive at a settlement of the
dispute. The judge may issue a consent decree approving the agreement between the
parties in accordance with law, morals, public order and public policy to protect the right
of the people to a balanced and healthful ecology.
Evidence not presented during the pre-trial, except newly-discovered evidence, shall be
deemed waived.
Section 6. Failure to settle. - If there is no full settlement, the judge shall:
(a) Adopt the minutes of the preliminary conference as part of the pre-trial proceedings
and confirm the markings of exhibits or substituted photocopies and admissions on the
genuineness and due execution of documents;
(b) Determine if there are cases arising out of the same facts pending before other courts
and order its consolidation if warranted;
(c) Determine if the pleadings are in order and if not, order the amendments if necessary;
(d) Determine if interlocutory issues are involved and resolve the same;
(e) Consider the adding or dropping of parties;
(f) Scrutinize every single allegation of the complaint, answer and other pleadings and
attachments thereto, and the contents of documents and all other evidence identified
and pre-marked during pre-trial in determining further admissions;
(g) Obtain admissions based on the affidavits of witnesses and evidence attached to the
pleadings or submitted during pre-trial;
(h) Define and simplify the factual and legal issues arising from the pleadings and
evidence. Uncontroverted issues and frivolous claims or defenses should be eliminated;
(i) Discuss the propriety of rendering a summary judgment or a judgment based on the
pleadings, evidence and admissions made during pre-trial;
(j) Observe the Most Important Witness Rule in limiting the number of witnesses,
determining the facts to be proved by each witness and fixing the approximate number
of hours per witness;
(k) Encourage referral of the case to a trial by commissioner under Rule 32 of the Rules
of Court or to a mediator or arbitrator under any of the alternative modes of dispute
resolution governed by the Special Rules of Court on Alternative Dispute Resolution;
(l) Determine the necessity of engaging the services of a qualified expert as a friend of
the court (amicus curiae); and
(m) Ask parties to agree on the specific trial dates for continuous trial, comply with the
one-day examination of witness rule, adhere to the case flow chart determined by the
court which shall contain the different stages of the proceedings up to the promulgation
of the decision and use the time frame for each stage in setting the trial dates.
Section 7. Effect of failure to appear at pre-trial. - The court shall not dismiss the
complaint, except upon repeated and unjustified failure of the plaintiff to appear. The
dismissal shall be without prejudice, and the court may proceed with the counterclaim.
If the defendant fails to appear at the pre-trial, the court shall receive evidence ex parte.
Section 8. Minutes of pre-trial. - The minutes of each pre-trial conference shall contain
matters taken up therein, more particularly admissions of facts and exhibits, and shall
be signed by the parties and their counsel.
Section 9. Pre-trial order. - Within ten (10) days after the termination of the pre-trial,
the court shall issue a pre-trial order setting forth the actions taken during the pre-trial
conference, the facts stipulated, the admissions made, the evidence marked, the number
of witnesses to be presented and the schedule of trial. Said order shall bind the parties,
limit the trial to matters not disposed of and control the course of action during the trial.
Section 10. Efforts to settle. - The court shall endeavor to make the parties agree to
compromise or settle in accordance with law at any stage of the proceedings before
rendition of judgment.
RULE 4
TRIAL
Section 1. Continuous trial. - The judge shall conduct continuous trial which shall not
exceed two (2) months from the date of the issuance of the pre-trial order.
Before the expiration of the two-month period, the judge may ask the Supreme Court
for the extension of the trial period for justifiable cause.
Section 2. Affidavits in lieu of direct examination. - In lieu of direct examination,
affidavits marked during the pre-trial shall be presented as direct examination of
affiants subject to cross-
examination by the adverse party.
Section 3. One-day examination of witness rule. - The court shall strictly adhere to the
rule that a witness has to be fully examined in one (1) day, subject to the court’s
discretion of extending the examination for justifiable reason. After the presentation of
the last witness, only oral offer of evidence shall be allowed, and the opposing party shall
immediately interpose his objections. The judge shall forthwith rule on the offer of
evidence in open court.
Section 4. Submission of case for decision; filing of memoranda. - After the last party
has rested its case, the court shall issue an order submitting the case for decision.
The court may require the parties to submit their respective memoranda, if possible in
electronic form, within a non-extendible period of thirty (30) days from the date the case
is submitted for decision.
The court shall have a period of sixty (60) days to decide the case from the date the case
is submitted for decision.
Section 5. Period to try and decide. - The court shall have a period of one (1) year from
the filing of the complaint to try and decide the case. Before the expiration of the one-
year period, the court may petition the Supreme Court for the extension of the period
for justifiable cause.
The court shall prioritize the adjudication of environmental cases.
RULE 5
JUDGMENT AND EXECUTION
Section 1. Reliefs in a citizen suit. - If warranted, the court may grant to the plaintiff
proper reliefs which shall include the protection, preservation or rehabilitation of the
environment and the payment of attorney’s fees, costs of suit and other litigation
expenses. It may also require the violator to submit a program of rehabilitation or
restoration of the environment, the costs of which shall be borne by the violator, or to
contribute to a special trust fund for that purpose subject to the control of the court.
Section 2. Judgment not stayed by appeal. - Any judgment directing the performance of
acts for the protection, preservation or rehabilitation of the environment shall be
executory pending appeal unless restrained by the appellate court.
Section 3. Permanent EPO; writ of continuing mandamus. - In the judgment, the court
may convert the TEPO to a permanent EPO or issue a writ of continuing mandamus
directing the performance of acts which shall be effective until the judgment is fully
satisfied.
The court may, by itself or through the appropriate government agency, monitor the
execution of the judgment and require the party concerned to submit written reports on
a quarterly basis or sooner as may be necessary, detailing the progress of the execution
and satisfaction of the judgment. The other party may, at its option, submit its
comments or observations on the execution of the judgment.
Section 4. Monitoring of compliance with judgment and orders of the court by a
commissioner. - The court may motu proprio, or upon motion of the prevailing party,
order that the enforcement of the judgment or order be referred to a commissioner to be
appointed by the court. The commissioner shall file with the court written progress
reports on a quarterly basis or more frequently when necessary.
Section 5. Return of writ of execution. - The process of execution shall terminate upon a
sufficient showing that the decision or order has been implemented to the satisfaction
of the court in accordance with Section 14, Rule 39 of the Rules of Court.
RULE 6
STRATEGIC LAWSUIT AGAINST PUBLIC PARTICIPATION
Section 1. Strategic lawsuit against public participation (SLAPP). - A legal action filed
to harass, vex, exert undue pressure or stifle any legal recourse that any person,
institution or the government has taken or may take in the enforcement of
environmental laws, protection of the environment or assertion of environmental rights
shall be treated as a SLAPP and shall be governed by these Rules.
Section 2. SLAPP as a defense; how alleged. - In a SLAPP filed against a person involved
in the enforcement of environmental laws, protection of the environment, or assertion
of environmental rights, the defendant may file an answer interposing as a defense that
the case is a SLAPP and shall be supported by documents, affidavits, papers and other
evidence; and, by way of counterclaim, pray for damages, attorney’s fees and costs of
suit.
The court shall direct the plaintiff or adverse party to file an opposition showing the suit
is not a SLAPP, attaching evidence in support thereof, within a non-extendible period
of five (5) days from receipt of notice that an answer has been filed.
The defense of a SLAPP shall be set for hearing by the court after issuance of the order
to file an opposition within fifteen (15) days from filing of the comment or the lapse of
the period.
Section 3. Summary hearing. - The hearing on the defense of a SLAPP shall be summary
in nature. The parties must submit all available evidence in support of their respective
positions. The party seeking the dismissal of the case must prove by substantial evidence
that his act for the enforcement of environmental law is a legitimate action for the
protection, preservation and rehabilitation of the environment. The party filing the
action assailed as a SLAPP shall prove by preponderance of evidence that the action is
not a SLAPP and is a valid claim.
Section 4. Resolution of the defense of a SLAPP. - The affirmative defense of a SLAPP
shall be resolved within thirty (30) days after the summary hearing. If the court
dismisses the action, the court may award damages, attorney’s fees and costs of suit
under a counterclaim if such has been filed. The dismissal shall be with prejudice.
If the court rejects the defense of a SLAPP, the evidence adduced during the summary
hearing shall be treated as evidence of the parties on the merits of the case. The action
shall proceed in accordance with the Rules of Court.
PART III
SPECIAL CIVIL ACTIONS
RULE 7
WRIT OF KALIKASAN
Section 1. Nature of the writ. - The writ is a remedy available to a natural or juridical
person, entity authorized by law, people’s organization, non-governmental organization,
or any public interest group accredited by or registered with any government agency, on
behalf of persons whose constitutional right to a balanced and healthful ecology is
violated, or threatened with violation by an unlawful act or omission of a public official
or employee, or private individual or entity, involving environmental damage of such
magnitude as to prejudice the life, health or property of inhabitants in two or more cities
or provinces.
Section 2. Contents of the petition. - The verified petition shall contain the following:
(a) The personal circumstances of the petitioner;
(b) The name and personal circumstances of the respondent or if the name and personal
circumstances are unknown and uncertain, the respondent may be described by an
assumed appellation;
(c) The environmental law, rule or regulation violated or threatened to be violated, the
act or omission complained of, and the environmental damage of such magnitude as to
prejudice the life, health or property of inhabitants in two or more cities or provinces.
(d) All relevant and material evidence consisting of the affidavits of witnesses,
documentary evidence, scientific or other expert studies, and if possible, object evidence;
(e) The certification of petitioner under oath that: (1) petitioner has not commenced any
action or filed any claim involving the same issues in any court, tribunal or quasi-judicial
agency, and no such other action or claim is pending therein; (2) if there is such other
pending action or claim, a complete statement of its present status; (3) if petitioner
should learn that the same or similar action or claim has been filed or is pending,
petitioner shall report to the court that fact within five (5) days therefrom; and
(f) The reliefs prayed for which may include a prayer for the issuance of a TEPO.
Section 3. Where to file. - The petition shall be filed with the Supreme Court or with any
of the stations of the Court of Appeals.
Section 4. No docket fees. - The petitioner shall be exempt from the payment of docket
fees.
Section 5. Issuance of the writ. - Within three (3) days from the date of filing of the
petition, if the petition is sufficient in form and substance, the court shall give an order:
(a) issuing the writ; and (b) requiring the respondent to file a verified return as provided
in Section 8 of this Rule. The clerk of court shall forthwith issue the writ under the seal
of the court including the issuance of a cease and desist order and other temporary
reliefs effective until further order.
Section 6. How the writ is served. - The writ shall be served upon the respondent by a
court officer or any person deputized by the court, who shall retain a copy on which to
make a return of service. In case the writ cannot be served personally, the rule on
substituted service shall apply.
Section 7. Penalty for refusing to issue or serve the writ. - A clerk of court who unduly
delays or refuses to issue the writ after its allowance or a court officer or deputized
person who unduly delays or refuses to serve the same shall be punished by the court
for contempt without prejudice to other civil, criminal or administrative actions.
Section 8. Return of respondent; contents. - Within a non-extendible period of ten (10)
days after service of the writ, the respondent shall file a verified return which shall
contain all defenses to show that respondent did not violate or threaten to violate, or
allow the violation of any environmental law, rule or regulation or commit any act
resulting to environmental damage of such magnitude as to prejudice the life, health or
property of inhabitants in two or more cities or provinces.
All defenses not raised in the return shall be deemed waived.
The return shall include affidavits of witnesses, documentary evidence, scientific or
other expert studies, and if possible, object evidence, in support of the defense of the
respondent.
A general denial of allegations in the petition shall be considered as an admission
thereof.
Section 9. Prohibited pleadings and motions. - The following pleadings and motions are
prohibited:
(a) Motion to dismiss;
(b) Motion for extension of time to file return;
(c) Motion for postponement;
(d) Motion for a bill of particulars;
(e) Counterclaim or cross-claim;
(f) Third-party complaint;
(g) Reply; and
(h) Motion to declare respondent in default.
Section 10. Effect of failure to file return. - In case the respondent fails to file a return,
the court shall proceed to hear the petition ex parte.
Section 11. Hearing. - Upon receipt of the return of the respondent, the court may call a
preliminary conference to simplify the issues, determine the possibility of obtaining
stipulations or admissions from the parties, and set the petition for hearing.
The hearing including the preliminary conference shall not extend beyond sixty (60)
days and shall be given the same priority as petitions for the writs of habeas corpus,
amparo and habeas data.
Section 12. Discovery Measures. - A party may file a verified motion for the following
reliefs:
(a) Ocular Inspection; order — The motion must show that an ocular inspection order is
necessary to establish the magnitude of the violation or the threat as to prejudice the
life, health or property of inhabitants in two or more cities or provinces. It shall state in
detail the place or places to be inspected. It shall be supported by affidavits of witnesses
having personal knowledge of the violation or threatened violation of environmental
law.
After hearing, the court may order any person in possession or control of a designated
land or other property to permit entry for the purpose of inspecting or
photographing the property or any relevant object or operation thereon.
The order shall specify the person or persons authorized to make the inspection and the
date, time, place and manner of making the inspection and may prescribe other
conditions to protect the constitutional rights of all parties.
(b) Production or inspection of documents or things; order – The motion must show that
a production order is necessary to establish the magnitude of the violation or the threat
as to prejudice the life, health or property of inhabitants in two or more cities or
provinces.
After hearing, the court may order any person in possession, custody or control of any
designated documents, papers, books, accounts, letters, photographs, objects or tangible
things, or objects in digitized or electronic form, which constitute or contain evidence
relevant to the petition or the return, to produce and permit their inspection, copying or
photographing by or on behalf of the movant.
The production order shall specify the person or persons authorized to make the
production and the date, time, place and manner of making the inspection or production
and may prescribe other conditions to protect the constitutional rights of all parties.
Section 13. Contempt. - The court may after hearing punish the respondent who refuses
or unduly delays the filing of a return, or who makes a false return, or any person who
disobeys or resists a lawful process or order of the court for indirect contempt under Rule
71 of the Rules of Court.
Section 14. Submission of case for decision; filing of memoranda. - After hearing, the
court shall issue an order submitting the case for decision. The court may require the
filing of memoranda and if possible, in its electronic form, within a non-extendible period
of thirty (30) days from the date the petition is submitted for decision.
Section 15. Judgment. - Within sixty (60) days from the time the petition is submitted
for decision, the court shall render judgment granting or denying the privilege of the
writ of kalikasan.
The reliefs that may be granted under the writ are the following:
(a) Directing respondent to permanently cease and desist from committing acts or
neglecting the performance of a duty in violation of environmental laws resulting in
environmental destruction or damage;
(b) Directing the respondent public official, government agency, private person or entity
to protect, preserve, rehabilitate or restore the environment;
(c) Directing the respondent public official, government agency, private person or entity
to monitor strict compliance with the decision and orders of the court;
(d) Directing the respondent public official, government agency, or private person or
entity to make periodic reports on the execution of the final judgment; and
(e) Such other reliefs which relate to the right of the people to a balanced and healthful
ecology or to the protection, preservation, rehabilitation or restoration of the
environment, except the award of damages to individual petitioners.
Section 16. Appeal. - Within fifteen (15) days from the date of notice of the adverse
judgment or denial of motion for reconsideration, any party may appeal to the Supreme
Court under Rule 45 of the Rules of Court. The appeal may raise questions of fact.
Section 17. Institution of separate actions. - The filing of a petition for the issuance of
the writ of kalikasan shall not preclude the filing of separate civil, criminal or
administrative actions.
RULE 8
WRIT OF CONTINUING MANDAMUS
Section 1. Petition for continuing mandamus. - When any agency or instrumentality of
the government or officer thereof unlawfully neglects the performance of an act which
the law specifically enjoins as a duty resulting from an office, trust or station in
connection with the enforcement or violation of an environmental law rule or regulation
or a right therein, or unlawfully excludes another from the use or enjoyment of such
right and there is no other plain, speedy and adequate remedy in the ordinary course of
law, the person aggrieved thereby may file a verified petition in the proper court,
alleging the facts with certainty, attaching thereto supporting evidence, specifying that
the petition concerns an environmental law, rule or regulation, and praying that
judgment be rendered commanding the respondent to do an act or series of acts until
the judgment is fully satisfied, and to pay damages sustained by the petitioner by reason
of the malicious neglect to perform the duties of the respondent, under the law, rules or
regulations. The petition shall also contain a sworn certification of non-forum shopping.
Section 2. Where to file the petition. - The petition shall be filed with the Regional Trial
Court exercising jurisdiction over the territory where the actionable neglect or omission
occurred or with the Court of Appeals or the Supreme Court.
Section 3. No docket fees. - The petitioner shall be exempt from the payment of docket
fees.
Section 4. Order to comment. - If the petition is sufficient in form and substance, the
court shall issue the writ and require the respondent to comment on the petition within
ten (10) days from receipt of a copy thereof. Such order shall be served on the
respondents in such manner as the court may direct, together with a copy of the petition
and any annexes thereto.
Section 5. Expediting proceedings; TEPO. - The court in which the petition is filed may
issue such orders to expedite the proceedings, and it may also grant a TEPO for the
preservation of the rights of the parties pending such proceedings.
Section 6. Proceedings after comment is filed. - After the comment is filed or the time
for the filing thereof has expired, the court may hear the case which shall be summary
in nature or require the parties to submit memoranda. The petition shall be resolved
without delay within sixty (60) days from the date of the submission of the petition for
resolution.
Section 7. Judgment. - If warranted, the court shall grant the privilege of the writ of
continuing mandamus requiring respondent to perform an act or series of acts until the
judgment is fully satisfied and to grant such other reliefs as may be warranted resulting
from the wrongful or illegal acts of the respondent. The court shall require the
respondent to submit periodic reports detailing the progress and execution of the
judgment, and the court may, by itself or through a commissioner or the appropriate
government agency, evaluate and monitor compliance. The petitioner may submit its
comments or observations on the execution of the judgment.
Section 8. Return of the writ. - The periodic reports submitted by the respondent
detailing compliance with the judgment shall be contained in partial returns of the writ.
Upon full satisfaction of the judgment, a final return of the writ shall be made to the
court by the respondent. If the court finds that the judgment has been fully
implemented, the satisfaction of judgment shall be entered in the court docket.
PART IV
CRIMINAL PROCEDURE
RULE 9
PROSECUTION OF OFFENSES
Section 1. Who may file. - Any offended party, peace officer or any public officer charged
with the enforcement of an environmental law may file a complaint before the proper
officer in accordance with the Rules of Court.
Section 2. Filing of the information. - An information, charging a person with a violation
of an environmental law and subscribed by the prosecutor, shall be filed with the court.
Section 3. Special prosecutor. - In criminal cases, where there is no private offended
party, a counsel whose services are offered by any person or organization may be allowed
by the court as special prosecutor, with the consent of and subject to the control and
supervision of the public prosecutor.
RULE 10
PROSECUTION OF CIVIL ACTIONS
Section 1. Institution of criminal and civil actions. - When a criminal action is instituted,
the civil action for the recovery of civil liability arising from the offense charged, shall
be deemed instituted with the criminal action unless the complainant waives the civil
action, reserves the right to institute it separately or institutes the civil action prior to
the criminal action.
Unless the civil action has been instituted prior to the criminal action, the reservation
of the right to institute separately the civil action shall be made during arraignment.
In case civil liability is imposed or damages are awarded, the filing and other legal fees
shall be imposed on said award in accordance with Rule 141 of the Rules of Court, and
the fees shall constitute a first lien on the judgment award. The damages awarded in
cases where there is no private offended party, less the filing fees, shall accrue to the
funds of the agency charged with the implementation of the environmental law violated.
The award shall be used for the restoration and rehabilitation of the environment
adversely affected.
RULE 11
ARREST
Section 1. Arrest without warrant; when lawful. - A peace officer or an individual
deputized by the proper government agency may, without a warrant, arrest a person:
(a) When, in his presence, the person to be arrested has committed, is actually
committing or is attempting to commit an offense; or
(b) When an offense has just been committed, and he has probable cause to believe based
on personal knowledge of facts or circumstances that the person to be arrested has
committed it. Individuals deputized by the proper government agency who are enforcing
environmental laws shall enjoy the presumption of regularity under Section 3(m), Rule
131 of the Rules of Court when effecting arrests for violations of environmental laws.
Section 2. Warrant of arrest. - All warrants of arrest issued by the court shall be
accompanied by a certified true copy of the information filed with the issuing court.
RULE 12
CUSTODY AND DISPOSITION OF SEIZED ITEMS, EQUIPMENT,
PARAPHERNALIA, CONVEYANCES AND INSTRUMENTS
Section 1. Custody and disposition of seized items. - The custody and disposition of seized
items shall be in accordance with the applicable laws or rules promulgated by the
concerned government agency.
Section 2. Procedure. - In the absence of applicable laws or rules promulgated by the
concerned government agency, the following procedure shall be observed:
(a) The apprehending officer having initial custody and control of the seized items,
equipment, paraphernalia, conveyances and instruments shall physically inventory and
whenever practicable, photograph the same in the presence of the person from whom
such items were seized.
(b) Thereafter, the apprehending officer shall submit to the issuing court the return of
the search warrant within five (5) days from date of seizure or in case of warrantless
arrest, submit within five (5) days from date of seizure, the inventory report, compliance
report, photographs, representative samples and other pertinent documents to the
public prosecutor for appropriate action.
(c) Upon motion by any interested party, the court may direct the auction sale of seized
items, equipment, paraphernalia, tools or instruments of the crime. The court shall,
after hearing, fix the minimum bid price based on the recommendation of the concerned
government agency. The sheriff shall conduct the auction.
(d) The auction sale shall be with notice to the accused, the person from whom the items
were seized, or the owner thereof and the concerned government agency.
(e) The notice of auction shall be posted in three conspicuous places in the city or
municipality where the items, equipment, paraphernalia, tools or instruments of the
crime were seized.
(f) The proceeds shall be held in trust and deposited with the government depository
bank for disposition according to the judgment.
RULE 13
PROVISIONAL REMEDIES
Section 1. Attachment in environmental cases. - The provisional remedy of attachment
under Rule 127 of the Rules of Court may be availed of in environmental cases.
Section 2. Environmental Protection Order (EPO); Temporary Environmental
Protection Order (TEPO) in criminal cases. - The procedure for and issuance of EPO and
TEPO shall be governed by Rule 2 of these Rules.
RULE 14
BAIL
Section 1. Bail, where filed. - Bail in the amount fixed may be filed with the court where
the case is pending, or in the absence or unavailability of the judge thereof, with any
regional trial judge, metropolitan trial judge, municipal trial judge or municipal circuit
trial judge in the province, city or municipality. If the accused is arrested in a province,
city or municipality other than where the case is pending, bail may also be filed with
any Regional Trial Court of said place, or if no judge thereof is available, with any
metropolitan trial judge, municipal trial judge or municipal circuit trial judge therein.
If the court grants bail, the court may issue a hold-departure order in appropriate cases.
Section 2. Duties of the court. - Before granting the application for bail, the judge must
read the information in a language known to and understood by the accused and require
the accused to sign a written undertaking, as follows:
(a) To appear before the court that issued the warrant of arrest for arraignment purposes
on the date scheduled, and if the accused fails to appear without justification on the date
of arraignment, accused waives the reading of the information and authorizes the court
to enter a plea of not guilty on behalf of the accused and to set the case for trial;
(b) To appear whenever required by the court where the case is pending; and
(c) To waive the right of the accused to be present at the trial, and upon failure of the
accused to appear without justification and despite due notice, the trial may proceed in
absentia.
RULE 15
ARRAIGNMENT AND PLEA
Section 1. Arraignment. - The court shall set the arraignment of the accused within
fifteen (15) days from the time it acquires jurisdiction over the accused, with notice to
the public prosecutor and offended party or concerned government agency that it will
entertain plea-bargaining on the date of the arraignment.
Section 2. Plea-bargaining. - On the scheduled date of arraignment, the court shall
consider plea-bargaining arrangements. Where the prosecution and offended party or
concerned government agency agree to the plea offered by the accused, the court shall:
(a) Issue an order which contains the plea-bargaining arrived at;
(b) Proceed to receive evidence on the civil aspect of the case, if any; and
(c) Render and promulgate judgment of conviction, including the civil liability for
damages.

RULE 16
PRE-TRIAL
Section 1. Setting of pre-trial conference. - After the arraignment, the court shall set the
pre-trial conference within thirty (30) days. It may refer the case to the branch clerk of
court, if warranted, for a preliminary conference to be set at least three (3) days prior to
the pre-trial.
Section 2. Preliminary conference. - The preliminary conference shall be for the
following purposes:
(a) To assist the parties in reaching a settlement of the civil aspect of the case;
(b) To mark the documents to be presented as exhibits;
(c) To attach copies thereof to the records after comparison with the originals;
(d) To ascertain from the parties the undisputed facts and admissions on the
genuineness and due execution of documents marked as exhibits;
(e) To consider such other matters as may aid in the prompt disposition of the case;
(f) To record the proceedings during the preliminary conference in the Minutes of
Preliminary Conference to be signed by the parties and counsel;
(g) To mark the affidavits of witnesses which shall be in question and answer form and
shall constitute the direct examination of the witnesses; and
(h) To attach the Minutes and marked exhibits to the case record before the pre-trial
proper. The parties or their counsel must submit to the branch clerk of court the names,
addresses and contact numbers of the affiants.
Section 3. Pre-trial duty of the judge. - During the pre-trial, the court shall:
(a) Place the parties and their counsels under oath;
(b) Adopt the minutes of the preliminary conference as part of the pre-trial proceedings,
confirm markings of exhibits or substituted photocopies and admissions on the
genuineness and due execution of documents, and list object and testimonial evidence;
(c) Scrutinize the information and the statements in the affidavits and other documents
which form part of the record of the preliminary investigation together with other
documents identified and marked as exhibits to determine further admissions of facts
as to:
i. The court’s territorial jurisdiction relative to the offense(s) charged;
ii. Qualification of expert witnesses; and
iii. Amount of damages;
(d) Define factual and legal issues;
(e) Ask parties to agree on the specific trial dates and adhere to the flow chart
determined by the court which shall contain the time frames for the different stages of
the proceeding up to promulgation of decision;
(f) Require the parties to submit to the branch clerk of court the names, addresses and
contact numbers of witnesses that need to be summoned by subpoena; and
(g) Consider modification of order of trial if the accused admits the charge but interposes
a lawful defense.
Section 4. Manner of questioning. - All questions or statements must be directed to the
court.
Section 5. Agreements or admissions. - All agreements or admissions made or entered
during the pre-trial conference shall be reduced in writing and signed by the accused
and counsel; otherwise, they cannot be used against the accused. The agreements
covering the matters referred to in Section 1, Rule 118 of the Rules of Court shall be
approved by the court.
Section 6. Record of proceedings. - All proceedings during the pre-trial shall be recorded,
the transcripts prepared and the minutes signed by the parties or their counsels.
Section 7. Pre-trial order. - The court shall issue a pre-trial order within ten (10) days
after the termination of the pre-trial, setting forth the actions taken during the pre-trial
conference, the facts stipulated, the admissions made, evidence marked, the number of
witnesses to be presented and the schedule of trial. The order shall bind the parties and
control the course of action during the trial.
RULE 17
TRIAL
Section 1. Continuous trial. - The court shall endeavor to conduct continuous trial which
shall not exceed three (3) months from the date of the issuance of the pre-trial order.
Section 2. Affidavit in lieu of direct examination. - Affidavit in lieu of direct examination
shall be used, subject to cross-examination and the right to object to inadmissible
portions of the affidavit.
Section 3. Submission of memoranda. - The court may require the parties to submit their
respective memoranda and if possible, in electronic form, within a non-extendible period
of thirty (30) days from the date the case is submitted for decision.
With or without any memoranda filed, the court shall have a period of sixty (60) days to
decide the case counted from the last day of the 30-day period to file the memoranda.
Section 4. Disposition period. - The court shall dispose the case within a period of ten
(10) months from the date of arraignment.
Section 5. Pro bono lawyers. - If the accused cannot afford the services of counsel or there
is no available public attorney, the court shall require the Integrated Bar of the
Philippines to provide pro bono lawyers for the accused.

RULE 18
SUBSIDIARY LIABILITY

Section 1. Subsidiary liability. - In case of conviction of the accused and subsidiary

liability is allowed by law, the court may, by motion of the person entitled to recover
under judgment, enforce such subsidiary liability against a person or corporation
subsidiary liable under Article 102 and Article 103 of the Revised Penal Code.

RULE 19
STRATEGIC LAWSUIT AGAINST PUBLIC PARTICIPATION IN CRIMINAL
CASES

Section 1. Motion to dismiss. - Upon the filing of an information in court and before
arraignment, the accused may file a motion to dismiss on the ground that the criminal
action is a SLAPP.

Section 2. Summary hearing. - The hearing on the defense of a SLAPP shall be summary
in nature. The parties must submit all the available evidence in support of their
respective positions. The party seeking the dismissal of the case must prove by
substantial evidence that his acts for the enforcement of environmental law is a
legitimate action for the protection, preservation and rehabilitation of the environment.
The party filing the action assailed as a SLAPP shall prove by preponderance of evidence
that the action is not a SLAPP.

Section 3. Resolution. - The court shall grant the motion if the accused establishes in the
summary hearing that the criminal case has been filed with intent to harass, vex, exert
undue pressure or stifle any legal recourse that any person, institution or the
government has taken or may take in the enforcement of environmental laws, protection
of the environment or assertion of environmental rights.

If the court denies the motion, the court shall immediately proceed with the arraignment
of the accused.

PART V
EVIDENCE

RULE 20
PRECAUTIONARY PRINCIPLE

Section 1. Applicability. - When there is a lack of full scientific certainty in establishing

a causal link between human activity and environmental effect, the court shall apply
the precautionary principle in resolving the case before it.
A.M. No. 15-06-10-SC, 1 September 2017, Revised Guidelines for Continuous Trial of Criminal
Cases (provisions on mediation)
REVISED GUIDELINES FOR CONTINUOUS TRIAL OF CRIMINAL CASES
A.M. No. 15-06-10-SC April 25, 2017
RESOLUTION
WHEREAS, in the Resolution dated 21 February 2012 of the Court en banc in A.M. No.
11-6-10-SC (Re: Guidelines for Litigation in Quezon City Trial Courts), the Guidelines
for Litigation in Quezon City Trial Courts (Q.C. Practice Guidelines) was adopted to test
the practicability and feasibility of the proposed guidelines, and to enhance the rules of
procedures and expedite the litigation process;
WHEREAS, in the 30 June 2015 Resolution of the Court en banc in A.M. No. 15-06-10-
SC (Re: Adopting the Guidelines for Continuous Trial of Criminal Cases in Pilot Courts),
the Proposed Guidelines for Continuous Trial of Criminal Cases (Continuous Trial
Guidelines) was adopted in 52 pilot courts in both first and second-levels in Metro
Manila, effective 17 August 2015, clarifying the application of existing rules on speedy
trial to expedite trial and resolution of criminal cases;
WHEREAS, the Results Analysis of Practice Guidelines Implementation in Quezon
City, Philippines Hall of Justice (August 2015) conducted by the American Bar
Association Rule of Law Initiative show that specific procedural and case management
reforms have a notable effect on reducing case processing time;
WHEREAS, a Validation Workshop for the Guidelines on Continuous Trial of Criminal
Cases was held on 21 October 2016 where The Asia Foundation presented its report and
evaluation of the implementation of the said guidelines, showing clear and significant
improvement in reducing the duration of criminal proceedings and improving the trial
courts' compliance with the periods and timeframes for trial set in the Rules of Court
and Laws;
WHEREAS, pursuant to the Memorandum Order No. 14-2015, creating the Special
Committee on Speedy Trial (Special Committee), a Technical Working Group (TWG)
was created on 7 November 2016 to review the possible consolidation of A.M. No. 15-06-
10-SC or the Guidelines for Continuous Trial of Criminal Cases and A.M. No. 11-6-10-
SC or the Guidelines for Litigation in Quezon City Trial Courts;
WHEREAS, pursuant to Memorandum Order No. 09-2017, the amended composition of
the Special Committee is as follows: xxx
WHEREAS, the Chairperson, the Vice-Chairperson and the Members of the Special
Committee, as well as the TWG, conducted consultative meetings to consolidate, review
and revise the Q.C. Practice Guidelines and the Continuous Trial Guidelines;
WHEREAS, on 2 December 2016, the TWG, together with the representatives of the
Philippine Mediation Center (PMC) and our Developmental Partners (The Asia
Foundation and the American Bar Association-Rule of Law Initiative), held a meeting
to discuss the methodology of consolidation of the Q.C. Practice Guidelines and the
Continuous Trial Guidelines;
WHEREAS, on 19 January 2017, a meeting was held where the Special Committee
Chairperson presented the working draft of the Revised Guidelines for Continuous Trial
of Criminal Cases for discussion and revision with the TWG, as well as the PMC;
WHEREAS, on 2 February 2017, the Special Committee, together with the
representatives of the PMC and our Developmental Partners, reviewed and finalized
the proposed "Revised Guidelines for Continuous Trial of Criminal Cases," to protect
and advance the constitutional right of persons to a speedy disposition of their criminal
cases, to reinforce and give teeth to the existing rules on criminal procedure and other
special rules prescribing periods for court action and those which promote speedy
disposition of said cases, and to introduce innovations and best practices for the benefit
of the parties.
NOW, THEREFORE, acting on the recommendation of the Chairperson of the Special
Committee and the TWG, submitting for the consideration and approval of the Court
the proposed "Revised Guidelines for Continuous Trial of Criminal Cases," the Court
hereby resolves to APPROVE the same.
The Revised Guidelines shall take effect on 1 September 2017 following its publication
in two (2) newspapers of general circulation.
I. Applicability
The Revised Guidelines for Continuous Trial of Criminal Cases (Revised Guidelines)
shall apply to all newly-filed criminal cases, including those governed by Special Laws
and Rules, 1 in the First and Second Level Courts, the Sandiganbayan and the Court of
Tax Appeals as of effectivity date. The Revised Guidelines shall also apply to pending
criminal cases with respect to the remainder of the proceedings.
Unless otherwise specifically provided herein, the Revised Guidelines shall not apply to
criminal cases filed under the Rule on Summary Procedure.
II. Objectives
1. To protect and advance the constitutional right of persons to a speedy disposition of
their criminal cases;
2. To reinforce and give teeth to the existing rules on criminal procedure and other
special rules prescribing periods for court action and those which promote speedy
disposition of criminal cases; and
3. To introduce innovations and best practices for the benefit of the parties.
III. Procedure
1. Hearing Days and Calendar Call
Trial shall be held from Monday to Thursday, and courts shall call the cases at exactly
8:30 A.M. and 2:00 P.M., pursuant to Administrative Circular No. 3-99. Hearing on
motions, arraignment and pre-trial, and promulgation of decisions shall be held in the
morning of Fridays, pursuant to Sec. 7, Rule 15 of the Rules of Court.

All courts shall ensure the posting of their court calendars outside their courtrooms at
least one (1) day before the scheduled hearings, pursuant to OCA Circular No. 250-2015.
2. Motions
(a) Motion for Inhibition. — Motions for inhibition based on grounds provided for under
Rule 137 shall be resolved immediately or within two (2) calendar days from date of
their filing.
(b) Prohibited Motions. — Prohibited motions shall be denied outright before the
scheduled arraignment without need of comment and/or opposition.
The following motions are prohibited:
i. Motion for judicial determination of probable cause.
ii. Motion for preliminary investigation filed beyond the five (5)-day reglementary period
in inquest proceedings under Sec. 6, Rule 112, or when preliminary investigation is
required under Sec. 8, Rule 112, or allowed in inquest proceedings and the accused failed
to participate in the preliminary investigation despite due notice.
iii. Motion for reinvestigation of the prosecutor recommending the filing of information
once the information has been filed before the court (1) if the motion is filed without
prior leave of court; (2) when preliminary investigation is not required under Sec. 8,
Rule 112; and (3) when the regular preliminary investigation is required and has been
actually conducted, and the grounds relied upon in the motion are not meritorious, such
as issues of credibility, admissibility of evidence, innocence of the accused, or lack of due
process when the accused was actually notified, among others.
iv. Motion to quash information when the ground is not one of those stated in Sec. 3,
Rule 117.
v. Motion for bill of particulars that does not conform to Sec. 9, Rule 116.
vi. Motion to suspend the arraignment based on grounds not stated under Sec. 11, Rule
116.
vii. Petition to suspend the criminal action on the ground of prejudicial question, when
no civil case has been filed, pursuant to Sec. 7, Rule 111.
(c) Meritorious Motions. — Motions that allege plausible grounds supported by relevant
documents and/or competent evidence, except those that are already covered by the
Revised Guidelines, are meritorious motions, such as:
i. Motion to withdraw information, or to downgrade the charge in the original
information, or to exclude an accused originally charged therein, filed by the prosecution
as a result of a reinvestigation, reconsideration, and review;
ii. Motion to quash warrant of arrest;
iii. Motion to suspend arraignment on the ground of an unsound mental condition under
Sec. 11 (a), Rule 116;
iv. Motion to suspend proceedings on the ground of a prejudicial question where a civil
case was filed prior to the criminal case under Sec. 11 (b), Rule 116;
v. Motion to quash information on the grounds that the facts charged do not constitute
an offense, lack of jurisdiction, extinction of criminal action or liability, or double
jeopardy under Sec. 3, par. (a), (b), (g), and (i), Rule 117;
vi. Motion to discharge accused as a state witness under Sec. 17, Rule 119;
vii. Motion to quash search warrant under Sec. 14, Rule 126, or motion to suppress
evidence; and
viii. Motion to dismiss on the ground that the criminal case is a Strategic Law Suit
against Public Participation (SLAPP) under Rule 6 of the Rules of Procedure for
Environmental Cases.
The comment of the adverse party shall be filed within a non-extendible period of ten
(10) calendar days from notice/receipt of the order of the court to file the same, and the
court shall resolve the motion within a non-extendible period of ten (10) calendar days
from the expiration of the ten (10)-day period, with or without comment. The court, at
its discretion, may set the motion for hearing within a non-extendible period of ten (10)
calendar days from the expiration of the ten (10)-day period to file comment, in which
case the same shall be submitted for resolution after the termination of the hearing, and
shall be resolved within a non-extendible period of ten (10) calendar days thereafter.
Reply and memorandum need not be submitted.
In case of a motion to discharge accused as state witness under Sec. 17, Rule 119, where
the prosecution is required to present evidence in support thereof, such motion shall be
submitted for resolution from the termination of the hearing, and shall be resolved
within a non-extendible period of ten (10) calendar days thereafter.
The motion for reconsideration of the resolution of a meritorious motion shall be filed
within a non-extendible period of five (5) calendar days from receipt of such resolution,
and the adverse party shall be given an equal period of five (5) calendar days from
receipt of the motion for reconsideration within which to submit its comment.
Thereafter, the motion for reconsideration shall be resolved by the court within a non-
extendible period of five (5) calendar days from the expiration of the five (5)-day period
to submit the comment.
Motions that do not conform to the above requirements shall be considered
unmeritorious and shall be denied outright.
(d) Motion for postponement. — A motion for postponement is prohibited, except if it is
based on acts of God, force majeure or physical inability of the witness to appear and
testify. If the motion is granted based on such exceptions, the moving party shall be
warned that the presentation of its evidence must still be finished on the dates
previously agreed upon.
 A motion for postponement, whether written or oral, shall at all times be accompanied
by the original official receipt from the Office of the Clerk of Court evidencing payment
of the postponement fee under Sec. 21 (b), Rule 141, to be submitted either at the time
of the filing of said motion or not later than the next hearing date. The Clerk of Court
shall not accept the motion unless accompanied by the original receipt.
3. Free Legal Assistance
If a party fails to qualify for the availment of the services of the Public Attorney's Office,
the Integrated Bar of the Philippines Local Chapter shall provide free legal assistance
to said party. For this purpose, the IBP Local Chapter shall submit to the Executive
Judges a list of IBP-local lawyers who may be appointed by the courts to act as counsel
de officio in such cases. The lists shall be disseminated among all the trial courts in the
station.
4. Private Prosecutor
In cases where only the civil liability is being prosecuted by a private prosecutor, the
head of the prosecution office must issue in favor of the private prosecutor a written
authority to try the case even in the absence of the public prosecutor. The written
authority must be submitted to the court prior to the presentation of evidence by the
private prosecutor in accordance with Sec. 5, Rule 110.
With this authority on record, the court may set the trial in the case and in other cases
tried by private prosecutors with delegated authority on separate days when the
presence of the public prosecutor may be dispensed with.
5. Consolidations
(a) Newly-filed Cases. — When newly-filed criminal cases involving offenses based on
the same facts or forming part of a series of offenses of similar character, are
accompanied by a motion for consolidation filed by the Office of the Prosecutor, the
Executive Judge shall cause the raffle to only one court which shall then resolve said
motion for consolidation, preferably on the date of the arraignment and in the presence
of the accused and counsel.
(b) Pending Cases with Multiple Accused. — In cases involving multiple accused where
a subsequent information is filed involving an accused who has been subjected to further
investigation by the Office of the Prosecutor over an incident which has the same subject
matter as a prior information/s against different accused, said subsequent case when
filed accompanied by a motion for consolidation from the Office of the Prosecutor shall
no longer be raffled. The subsequent case shall be assigned directly by the Executive
Judge to the court where the earlier case is pending. If the earlier case is already at the
trial stage and witnesses have been presented, the parties may be allowed to adopt the
evidence so far presented, without prejudice to additional direct examination questions
and cross examination questions.
6. Archiving of Cases
The archiving of cases shall be done within the period prescribed under the Guidelines
in the Archiving of Cases under SC Administrative Circular No. 7-A-92, as restated in
OCA Circular No. 89-2004. A criminal case shall be archived only if, after the issuance
of the warrant of arrest, the accused remains at large for six (6) months from the delivery
of the warrant to the proper peace officer. Such case shall likewise be archived when
proceedings therein are ordered suspended for an indefinite period because:
(a) the accused appears to be suffering from an unsound mental condition which
effectively renders him unable to fully understand the charge against him and to plead
intelligently, or to undergo trial, and he has to be committed to a mental hospital;
(b) a valid prejudicial question in a civil action is invoked during the pendency of the
criminal case, unless the civil and criminal cases are consolidated;
(c) an interlocutory order or incident in the criminal case is elevated to, and is pending
resolution/decision for an indefinite period before a higher court which has issued a
temporary restraining order or writ of preliminary injunction; and
(d) when the accused has jumped bail before arraignment and cannot be arrested by the
bondsman.
7. Revival of Provisionally Dismissed Cases
Revival of provisionally dismissed cases shall conform to the requisites and the periods
provided for under Sec. 8, Rule 117. Provisional dismissal of offenses punishable by
imprisonment not exceeding six (6) years or a fine of any amount or both shall become
permanent one (1) year after issuance of the order without the case having been revived.
Provisional dismissal of offenses punishable by imprisonment of more than six (6) years,
shall become permanent two (2) years after the issuance of the order without the case
having been revived.
8. Arraignment and Pre-trial
(a) Schedule of Arraignment and Pre-trial. — Once the court has acquired jurisdiction
over the person of the accused, the arraignment of the accused and the pre-trial shall be
set within ten (10) calendar days from date of the court's receipt of the case for a detained
accused, and within thirty (30) calendar days from the date the court acquires
jurisdiction (either by arrest or voluntary surrender) over a non-detained accused,
unless a shorter period is provided by special law or Supreme Court circular.
The court must set the arraignment of the accused in the commitment order, in the case
of detained accused, or in the order of approval of bail, in any other case. For this
purpose, where the Executive Judge and Pairing Judges act on bail applications in cases
assigned to other courts, they shall coordinate with the courts to which the cases are
actually assigned for scheduling purposes.
(b) Notice of Arraignment and Pre-Trial. — Notice of arraignment and pre-trial shall be
sent to the accused, his/her counsel, private complainant or complaining law
enforcement agent, public prosecutor, and witnesses whose names appear in the
information for purposes of plea-bargaining, arraignment and pre-trial.
(c) Waiver of Reading of the Information. — In multiple cases, the court, upon personal
examination of the accused, may allow a waiver of the reading of the information upon
the full understanding and express consent of the accused and his/her counsel, which
consent shall be expressly stated in both the minutes/certificate of arraignment and the
order of arraignment. The court shall explain the waiver to the accused in the language
or dialect known to him/her, and ensure the accused's full understanding of the
consequences of the waiver before approving the same. (See Annex 1)
(d) Arraignment Proper
i. Plea Bargaining Except in Drug Cases. — If the accused desires to enter a plea of
guilty to a lesser offense, plea bargaining shall immediately proceed, provided the
private offended party in private crimes, or the arresting officer in victimless crimes, is
present to give his/her consent with the conformity of the public prosecutor to the plea
bargaining. Thereafter, judgment shall be immediately rendered in the same
proceedings. (See Annexes 2 and 3)
ii. Plea of Guilty to the Crime Charged in the Information. — If the accused pleads guilty
to the crime charged in the information, judgment shall be immediately rendered, except
in those cases involving capital punishment. (See Annex 4)
iii. Where No Plea Bargaining or Plea of Guilty Takes Place. — If the accused does not
enter a plea of guilty, whether to a lesser offense or to the offense charged in the
information, the court shall immediately proceed with the arraignment and the pre-
trial, in accordance with the succeeding provisions on pre-trial.
The schedule of the trial dates, for both the prosecution and the accused, shall be
continuous and within the periods provided in the Regular Rules/Special Rules. The trial
dates may be shortened depending on the number of witnesses to be presented. In this
regard, a flowchart shall be prepared by the court which shall serve as the final schedule
of hearings. (See Annexes 5 and 6)
Sample of flowcharts
A. Regular Rules
B. Special Laws/Rules
1. Drug Cases
2. Environmental Cases
3. Intellectual Property Rights Cases
4. Arraignment and Pre-Trial of Cases Referred to Mediation
(e) Arraignment and Preliminary Conference of Mediatable Cases subject to the Rule on
Summary Procedure
The arraignment and preliminary conference shall be simultaneously held, and the
court shall take up all the matters required under Sec. 14, Rule on Summary Procedure
during the preliminary conference.
i. If the accused pleads guilty to the crime charged in the information, subheading III,
item no. 8, subparagraph (d) ii (Plea of Guilty to the Crime Charged in the Information)
shall be followed.
ii. If the accused pleads guilty to a lesser offense, subheading III, item no. 8,
subparagraph (d) i (Plea Bargaining except in Drug Cases) shall be followed.
iii. If the accused does not enter a plea of guilty, whether to a lesser offense or to the
offense charged in the information, the court shall immediately proceed with the
arraignment and the preliminary conference, and thereafter refer the case to mediation.
(See Annex 7)
Sample flow chart
Rule on Summary Procedure of Criminal Cases referred to Mediation
(f) Conduct of Pre-trial
i. Absence of parties. — The court shall proceed with the pre-trial despite the absence of
the accused and/or private complainant, provided they were duly notified of the same,
and the counsel for the accused, as well as the public prosecutor, are present.
ii. Stipulations. — Proposals for stipulations shall be done with the active participation
of the court itself and shall not be left alone to the counsels.
iii. Marking of evidence. — The documentary evidence of the prosecution and the
accused shall be marked.
iv. Pre-trial Order. — The pre-trial Order shall immediately be served upon the parties
and counsel on the same day after the termination of the pre-trial.
v. Compliance with Rules. — Courts must strictly comply with the Guidelines to be
Observed in the Conduct of Pre-Trial under A.M. No. 03-1-09-SC.
9. Mediation
(a) The following cases shall be referred to mediation on the civil liability unless a
settlement is reached earlier in the pre-trial/preliminary conference:
i. Crimes where payment may prevent criminal prosecution or may extinguish criminal
liability, such as violations of:
a. B.P. Blg. 22;
b. SSS Law (R.A. No. 1161, as amended by R.A. No. 8282); and
c. PAG-IBIG Law (R.A. No. 9679).
ii. Crimes against property under Title 10 of the Revised Penal Code (RPC), where the
obligation may be civil in nature, such as:
a. Theft under Art. 308, RPC, cognizable by the first level courts;
b. Estafa under Art. 315 (1), RPC, except estafa under Art. 315 (2) and (3);
c. Other forms of swindling under Art. 316, RPC;
d. Swindling of a minor under Art. 317, RPC;
e. Other deceits under Art. 318, RPC; and
f. Malicious mischief under Art. 327, RPC.
iii. Crimes against honor under Title 13, RPC, where the liability may be civil in nature,
such as:
a. Libel by means of writings or similar means under Art. 355, RPC;
b. Threatening to publish and offer to present such publication for a compensation under
Art. 356, RPC;
c. Prohibited publication of acts referred to in the course of official proceedings under
Art. 357, RPC;
d. Grave Slander (Grave Oral Defamation) — of serious and insulting nature under Art.
358, par. 1, RPC;
e. Simple Slander (Oral Defamation) — not of a serious and insulting nature under Art.
358, par. 2, RPC;
f. Grave Slander by Deed — of a serious nature under Art. 359, par. 1, RPC;
g. Simple Slander by Deed — not of a serious nature under Art. 359, par. 2, RPC;
h. Incriminating innocent person under Art. 363, RPC;
i. Intriguing against honor under Art. 364, RPC;
iv. Libel under R.A. 10175 (Cybercrime Prevention Act of 2012) where the liability may
be civil in nature;
v. Criminal negligence under Title 14, RPC, where the liability may be civil in nature;
and
vi. Intellectual property rights cases where the liability may be civil in nature.
(b) The referral of the case for mediation to the Philippine Mediation Center (PMC) Unit
shall be made only after the conduct of the arraignment and the pre-trial/preliminary
conference. The court shall serve the Order of Referral to the PMC Unit immediately
after the arraignment and the pre-trial/preliminary conference.
The mediation shall be terminated within a non-extendible period of thirty (30) calendar
days from the date of referral by the court to the PMC Unit. After the lapse of the
mediation period or if mediation fails, trial shall proceed.
Except those cases mentioned above, criminal cases subject to the Rule on Summary
Procedure shall not be referred to mediation.
10. Bail
(a) Petition for bail
Petition for bail filed after the filing of the information shall be set for summary hearing
after arraignment and pre-trial. Testimony of a witness in petition for bail may be in
the form allowed by subheading III, item no. 11, par. b (Form of Testimony) of the
Revised Guidelines, provided that the demeanor of the witness is not essential in
determining his/her credibility.
Petition for bail shall be heard and resolved within a non-extendible period of thirty (30)
calendar days from date of the first hearing, except in drug cases which shall be heard
and resolved within twenty (20) calendar days, without need of oral argument and
submission of memoranda, consistent with the summary nature of the proceedings. (See
Annexes 8-A and 8-B)
Motion for reconsideration on the resolution of petition for bail shall be resolved within
a non-extendible period of ten (10) calendar days from date of submission of the motion.
Sample flowcharts with Petition for Bail
A. Regular Rules

B. Drug Cases
(b) Evidence in petition for bail
The resolution of petition for bail shall be based solely on the evidence presented during
the bail proceedings by the prosecution. The prosecution shall present only pieces of
evidence that are essential in establishing that the evidence of guilt is strong. The
accused need not present evidence to contradict or rebut the prosecution's evidence.
(c) Non-suspension of the presentation of evidence
The court shall not suspend the presentation of the evidence in chief while awaiting
resolution of the petition for bail or the motion for reconsideration.
11. Form of Testimony
(a) For First Level Courts
In all criminal cases, including those covered by the Rule on Summary Procedure, the
testimonies of witnesses shall consist of the duly subscribed written statements given
to law enforcement or peace officers or the affidavits or counter-affidavits submitted
before the investigating prosecutor, and if such are not available, testimonies shall be
in the form of judicial affidavits, subject to additional direct and cross-examination
questions.
The trial prosecutor may dispense with the sworn written statements submitted to the
law enforcement or peace officers and prepare the judicial affidavits of the affiants or
modify or revise the said sworn statements before presenting it as evidence.
(b) For Second Level Courts, Sandiganbayan and Court of Tax Appeals
In criminal cases where the demeanor of the witness is not essential in determining the
credibility of said witness, such as forensic chemists, medico-legal officers, investigators,
auditors, accountants, engineers, custodians, expert witnesses and other similar
witnesses, who will testify on the authenticity, due execution and the contents of public
documents and reports, and in criminal cases that are transactional in character, such
as falsification, malversation, estafa, or other crimes where the culpability or innocence
of the accused can be established through documents, the testimonies of the witnesses
shall be the duly subscribed written statements given to law enforcement or peace
officers or the affidavits or counter-affidavits submitted before the investigating
prosecutor, and if such are not available, testimonies shall be in the form of judicial
affidavits, subject to additional direct and cross-examination questions.
In all other cases where the culpability or the innocence of the accused is based on the
testimonies of the alleged eyewitnesses, the testimonies of these witnesses shall be in
oral form.
12. Stipulations
During pre-trial/preliminary conference, the court shall require the parties to enter into
stipulations on the subject of both direct and cross-examinations of witnesses who have
no personal knowledge of the material facts constituting the crimes, such as forensic
chemists, medico-legal officers, investigators, auditors, accountants, engineers,
custodians, expert witnesses and other similar witnesses, who will testify on the
authenticity, due execution and the contents of public documents and reports;
corroborative witnesses; and those who will testify on the civil liability.
This rule is without prejudice to allowing additional direct and cross-examination
questions.
If stipulations cannot be had in full, where the adverse party does not waive the right
to cross-examination, the subject of the direct testimony of these witnesses should be
stipulated upon, without prejudice to additional direct and cross-examination questions.
13. Trial
(a) The court shall encourage the accused and the prosecution to avail of:
i. For the accused — Secs. 12 and 13, Rule 119 on the application for examination of
witness for accused before trial and how it is made; and
ii. For the prosecution — Sec. 15, Rule 119 on the conditional examination of witness for
the prosecution.
(b) Absence of counsel de parte. — In the absence of counsel de parte, the hearing shall
proceed upon appointment by the court of a counsel de officio.
(c) Offer of evidence. — The offer of evidence, the comment/objection thereto, and the
court ruling shall be made orally. A party is required to make his/her oral offer of
evidence on the same day after the presentation of his/her last witness, and the opposing
party is required to immediately interpose his/her oral comment/objection thereto.
Thereafter, the court shall make a ruling on the offer of evidence in open court.
In making the offer, the counsel shall cite the specific page numbers of the court record
where the exhibits being offered are found, if attached thereto. The court shall ensure
that all exhibits offered are submitted to it on the same day of the offer.
If the exhibits are not attached to the record, the party making the offer must submit
the same during the offer of evidence in open court.
(d) Demurrer to Evidence. — After the prosecution has rested its case, the court shall
inquire from the accused if he/she desires to move for leave of court to file a demurrer to
evidence, or to proceed with the presentation of his/her evidence. (See Annex 9)
If the accused orally moves for leave of court to file a demurrer to evidence, the court
shall orally resolve the same. If the motion for leave is denied, the court shall issue an
order for the accused to present and terminate his/her evidence on the dates previously
scheduled and agreed upon, and to orally offer and rest his/her case on the day his/her
last witness is presented.
If despite the denial of the motion for leave, the accused insists on filing the demurrer
to evidence, the previously scheduled dates for the accused to present evidence shall be
cancelled.
The demurrer to evidence shall be filed within a non-extendible period of ten (10)
calendar days from the date leave of court is granted, and the corresponding comment
shall be filed within a non-extendible period of ten (10) calendar days counted from date
of receipt of the demurrer to evidence. The demurrer shall be resolved by the court
within a non-extendible period of thirty (30) calendar days from date of the filing of the
comment or lapse of the ten (10)-day period to file the same.
If the motion for leave of court to file demurrer to evidence is granted, and the
subsequent demurrer to evidence is denied, the accused shall likewise present and
terminate his/her evidence (one day apart, morning and afternoon) and shall orally offer
and rest his/her case on the day his/her last witness is presented. The court shall rule
on the oral offer of evidence of the accused and the comment or objection of the
prosecution on the same day of the offer. If the court denies the motion to present
rebuttal evidence because it is no longer necessary, it shall consider the case submitted
for decision. (See Annex 10)
(e) Presentation of Rebuttal and Sur-rebuttal Evidence. — If the court grants the motion
to present rebuttal evidence, the prosecution shall immediately proceed with its
presentation after the accused had rested his/her case, and orally rest its case in rebuttal
after the presentation of its last rebuttal witness. Thereafter, the accused shall
immediately present sur-rebuttal evidence, if there is any, and orally rest the case in
sur-rebuttal after the presentation of its last sur-rebuttal witness. Thereafter, the court
shall submit the case for decision. (See Annexes 11 to 13)
(f) One-day examination of witness rule. — The court shall strictly adhere to the rule
that a witness has to be fully examined in one (1) day.
14. Memoranda
The submission of memoranda is discretionary on the part of the court, which in no case
shall exceed twenty-five (25) pages in length, single-spaced, on legal size paper, using
size 14 font. The period to submit memoranda shall be non-extendible and shall not
suspend the running of the period of promulgation of the decision; thus, with or without
memoranda, the promulgation shall push through as scheduled.
15. Lack of Stenographic Notes
Judges who conducted the trial and heard the testimonies of some or all of the witnesses
shall not defer the submission of the case for decision on the ground of incomplete or
missing transcript of stenographic notes. If the case was heard completely by another
judge, not the judge tasked to write the decision, the latter shall direct the stenographers
concerned to submit the complete transcripts within a period of thirty (30) calendar days
from date of his/her assumption to office.
16. Promulgation
(a) Schedule of promulgation. — The court shall announce in open court and include in
the order submitting the case for decision, the date of the promulgation of its decision
which shall not be more than ninety (90) calendar days from the date the case is
submitted for decision, 2 except when the case is covered by Special Rules and other
laws which provide for a shorter period.
(b) Resolution of motion for reconsideration of judgment of conviction or motion for new
trial. — A motion for reconsideration of judgment of conviction or motion for new trial
under Rule 121 filed within the reglementary period of fifteen (15) days from
promulgation shall be resolved within a non-extendible period of ten (10) calendar days
from the submission of the comment of the prosecution. With or without comment, the
court shall resolve the motion within the ten (10)-day period.
17. Inventory of Criminal Cases
The one (1) week of each semester devoted for the conduct of annual and semi-annual
physical inventory of cases and preparation of the semestral docket inventory report
pursuant to Administrative Circular No. 76-2007 shall not suspend court hearings.
18. Posting
The Revised Guidelines shall be posted at all floors of the covered halls of justice, the
Sandiganbayan, the Court of Tax Appeals and the offices of their respective Clerks of
Court, including all offices of the Integrated Bar of the Philippines and other Bar
associations.
IV. Monitoring, Evaluation and Training
The application of and adherence to the Revised Guidelines shall be subject to periodic
monitoring by the Committee and its Technical staff by visitation and submission of
data.
For this purpose, all courts covered by the Revised Guidelines shall accomplish and
submit a periodic report of data in a form to be generated and distributed by the
Committee.
Training of judges and court personnel shall be undertaken by the PHILJA in
coordination with the Committee and its Technical staff.
V. Effect of Non-Compliance
Non-compliance with the Revised Guidelines, including failure to observe the timelines
and deadlines herein provided, is a ground for disciplinary action.
 VI. Repealing Clause
Existing rules and guidelines inconsistent with the Revised Guidelines are deemed
amended or repealed.
VII. Effectivity
The Revised Guidelines shall take effect on 1 September 2017, after publication for two
(2) consecutive weeks in two (2) newspapers of general circulation.
ANNEX 1
Template; Waiver of Reading of Informations:
"I hereby voluntarily waive the reading of the Informations with full comprehension of
the consequences thereof, and that I understand the nature of the charges against me
as alleged in the Informations, as the same were read and explained to me earlier by the
court and my counsel in a language or dialect known and understood by me.
Accused
Signed in the presence of:
Public Prosecutor Counsel de parte/de officio"
ANNEX 2
Template Judgement; Plea to a Lesser Offense; Non-Detention Prisoners:
"When the accused was arraigned for the lesser crime of ______________, by reading the
Information in a language or dialect known and understood by the accused, assisted by
his/her counsel de officio/de parte (name of counsel), accused, entered a plea of guilty.
The private complainant (name of complainant) consented to* and the public prosecutor
(name of prosecutor) conformed with the accused pleading guilty to a lesser offense.
WHEREFORE, judgment is hereby rendered finding the accused (name of the accused)
guilty beyond reasonable doubt of the crime of __________, defined and penalized under
___________, and is hereby sentenced to suffer the penalty** of ___________.
The accused is further ordered to pay (name of private complainant/s or heirs of private
complainant/s) the amount/s of ________________ (as civil indemnity, actual, moral,
and/or exemplary damages) with legal interest at the rate of six percent (6%) per annum
on all damages awarded from finality of this judgment until fully paid.***
SO ORDERED."
* If victimless crime, the consent should be given by the arresting officer.
** It may be a straight penalty if imposed by the First Level Court and the penalty is
one (1) year or less. But, if imposed by the Second Level Court, the penalty must provide
for a minimum period and a maximum period, unless the applicable penalty is one (1)
year or less.
*** Delete if civil liability is waived or when it is a victimless crime.
ANNEX 3
Template Judgment; Plea to a Lesser Offense; Detention Prisoner:
"When the accused was arraigned for the lesser crime of ____________, by reading the
Information in a language or dialect known and understood by the accused, assisted by
his/her counsel de officio/de parte (name of counsel), accused entered a plea of guilty.
The private complainant (name of complainant) consented* to and the public prosecutor
(name of prosecutor) conformed with the accused pleading guilty to a lesser offense.
WHEREFORE, judgment is hereby rendered finding the accused (name of the accused)
guilty beyond reasonable doubt of the crime of _________, defined and penalized under
________________, and is hereby sentenced to suffer the indeterminate penalty** of
_______________.
The accused is further ordered to pay (name of private complainant/s or heirs of private
complainant/s) the amount/s of _________________ (as civil indemnity, actual, moral,
and/or exemplary damages), with legal interest at the rate of six (6%) per annum on all
damages awarded from finality of this judgment until fully paid.***
The period within which the accused was detained shall be credited to him in full, as
long as he abides by and follows strictly the rules and regulations of the institution
where he is detained or confined.****
SO ORDERED."
* If victimless crime, the consent should be given by the arresting officer.
** It may be a straight penalty if imposed by the First Level Court and the penalty is
one (1) year or less. But, if imposed by the Second Level Court, the penalty must provide
for a minimum period and a maximum period, unless the applicable penalty is one (1)
year or less.
*** Delete if civil liability is waived or when it is a victimless crime.
**** Applicable to detention prisoner.
ANNEX 4
Template Judgment; Plea of Guilty to the Crime Charged; Detention
Prisoner:
"When the accused was arraigned by reading the Information in the language or dialect
known and understood by him/her, assisted by his/her counsel de officio/de parte (name
of counsel), the accused entered a plea of guilty. When queried, the accused and his/her
counsel informed the court that the accused fully understands the nature and
consequence of his entering a plea of guilty to the crime charged in the Information.
WHEREFORE, judgment is hereby rendered finding the accused (name of the accused)
guilty beyond reasonable doubt of the crime _____________, as defined and penalized
under ___________, and there being one (1) mitigating circumstance of plea of guilty as
provided for in Paragraph 7 of Article 13 of the Revised Penal Code,* is hereby sentenced
to suffer the indeterminate penalty** of _____________.
The accused is further ordered to pay (name of private complainant/s or heirs of private
complainant/s) the amount/s of ____________ (as civil indemnity, actual, moral, and/or
exemplary damages), with legal interest at the rate of six (6%) per annum on all
damages awarded from finality of this judgment until fully paid.***
The period within which the accused was detained shall be credited to him in full, as
long as he abided by and strictly followed the rules and regulations of the institution
where he was detained or confined.****
SO ORDERED."
* Only in those crimes where plea of guilty is allowed as a mitigating circumstance.
** It may be a straight penalty if imposed by the First Level Court and the penalty is
one (1) year or less. But, if imposed by the Second Level Court, the penalty must provide
for a minimum period and a maximum period.
*** Delete if civil liability is waived or when it is a victimless crime.
**** Delete if accused is not a detention prisoner.
ANNEX 5
Template Order When there is No Plea Bargaining or Plea of Guilty but the
case is referred for mediation:
"When the accused (name of accused), assisted by his/her counsel de parte/de officio
(name of counsel), was arraigned by reading to him/her the Information in a language
or dialect known and understood by him/her, said accused entered the plea of Not Guilty.
Thereafter, pre-trial proceeded and the parties took up the following matters:
(Indicate matters taken up in line with Rule 118 on Pre-Trial, including the form of
testimony as provided under subheading III, item no. 11, par. (b) of the Revised
Guidelines)
Trial shall proceed on _________, all at 8:30 in the morning and 2:00 in the afternoon,
for the prosecution to present and terminate its evidence; and on ________, all at 8:30 in
the morning and 2:00 in the afternoon, for the defense to present and terminate its
evidence.*
The trial dates are final and intransferrable, and no motions for postponement that are
dilatory in character shall be entertained by the court. If such motions are granted in
exceptional cases, the postponement/s by either party shall be deducted from such
party's allotted time to present evidence.
The parties are hereby ordered to immediately proceed and personally appear at the
Philippine Mediation Center located at ___________________ (PMC Unit) today, (date
today), with or without their counsel/s, for mediation proceedings. The assigned
Mediator is ordered to submit a report to this court on the results of the mediation based
on the factual and legal issues to be resolved within a non-extendible period of thirty
(30) calendar days from the date of the court's referral of this case to the PMC Unit.
Should mediation fail after the lapse of the said 30-day period, the parties are ordered
to appear before the court so that the trial shall proceed on the trial dates indicated
above.
Failure of the party or his/her counsel to comply with the aforementioned schedule of
hearings and deadlines shall be a ground for the imposition of fines and other sanctions
by the court.
The accused (name of accused), his counsel (name of counsel), public prosecutor (name
of prosecutor), and the witness (name of witness) are hereby notified of this Order in
open court. The court shall no longer issue a subpoena to the parties present today.
SO ORDERED."
* This will depend on the number of witnesses listed in the information. It is suggested
that for every witness, two (2) trial dates should be allotted. The trial dates should
likewise be one (1) day apart.
ANNEX 6
Template Order When there is No Plea Bargaining or Plea of Guilty and the
case is not referred for mediation:
"When the accused (name of accused), assisted by his/her counsel de parte/de officio
(name), was arraigned by reading to him/her the Information in a language or dialect
known and understood by him/her, said accused entered the plea of Not Guilty.
Thereafter, pre-trial proceeded and the parties took up the following matters:
(Indicate matters taken up in line with Rule 118 on Pre-trial, including the form of
testimony as provided under subheading III, Item No. 11, par. (b) of the Revised
Guidelines)
Trial shall proceed on ___________, all at 8:30 in the morning and 2:00 in the afternoon,
for the prosecution to present and terminate its evidence; and on __________, all at 8:30
in the morning and 2:00 in the afternoon, for the defense to present and terminate its
evidence.*
The trial dates are final and intransferrable, and no motions for postponement that are
dilatory in character shall be entertained by the court. If such motions are granted in
exceptional cases, the postponements/s by either party shall be deducted from such
party's allotted time to present evidence.
Failure of the party or his/her counsel to comply with the aforementioned schedule of
hearings and deadlines shall be a ground for the imposition of fines and other sanctions
by the court.
The accused (name of accused), his counsel (name of counsel), public prosecutor (name
of prosecutor), and the witness (name of witness) are hereby notified of this Order in
open court. The court shall no longer issue a subpoena to the parties present today.
SO ORDERED."
* This will depend on the number of witnesses listed in the information. It is suggested
that for every witness, two (2) trial dates should be allotted. The trial dates should
likewise be one (1) day apart, morning and afternoon.
ANNEX 7
Template Order; No Plea Bargaining or Plea of Guilty; Case Covered by the
Rule on Summary Procedure is referred for mediation:
"When the accused (name), assisted by his/her counsel de parte/de officio (name), was
arraigned by reading to him/her the Information in a language or dialect known and
understood by him/her, said accused entered the plea of Not Guilty.
Thereafter, preliminary conference proceeded and the parties took up the following
matters:
(Indicate matters taken up in line with Section 14 of the Rule on Summary Procedure)
Trial will proceed on __________, all at 8:30 in the morning and 2:00 in the afternoon,
for the prosecution of present and terminate its evidence; and on ________, all at 8:30 in
the morning and 2:00 in the afternoon, for the defense to present and terminate its
evidence.*
The trial dates are final and intransferable, and no motions for postponement that are
dilatory in character shall be entertained by the court. If such motions are granted in
exceptional cases, the postponement/s by either party shall be deducted from such
party's allotted time to present evidence.
The parties are hereby ordered to immediately proceed and personally appear at the
Philippine Mediation Center located at ___________ (PMC Unit) today, (date today), with
or without their counsel/s, for mediation proceedings. The assigned Mediator is ordered
to submit a report to this court on the results of the mediation based on the factual and
legal issues to be resolved within a non-extendible period of thirty (30) calendar days
from the date of the court's referral of this case to the PMC Unit.
Should mediation fail after the lapse of the said 30-day period, the parties are ordered
to appear before the court so that the trial shall proceed on the trial dates indicated
above.
Failure of the party or his/her counsel to comply with the aforementioned schedule of
hearings and deadlines shall be a ground for the imposition of fines and other sanctions
by the court.
The accused (name), his/her counsel (name), public prosecutor (name), and the witness
(name) are hereby notified of this Order in open court. The court shall no longer issue
subpoena to the parties present today.
SO ORDERED."
* This will depend on the number of witnesses listed in the information. It is suggested
that for every witness, two (2) trial dates should be allotted. The trial dates should
likewise be one (1) day apart.
ANNEX 8-A
Template Order; Petition for Bail: Ordinary Cases
"When the accused (name), assisted by his/her counsel de parte/de officio (name), was
arraigned by reading to him/her the Information in a language or dialect known and
understood by him/her, said accused entered the plea of Not Guilty.
Thereafter, pre-trial proceeded and the parties took up the following matters:
(Indicate matters taken up in line with Rule 118 on Pre-trial, including the form of
testimony as provided under subheading III, item no. 11 (b) of the Revised Guidelines)
The petition for bail shall be heard summarily on ____________. (Within 30 days from
conclusion of the arraignment and pre-trial, 1 day apart each, both at 8:30 in the
morning and 2:00 in the afternoon, and must be terminated within the 30 days from the
first hearing date.)
The trial for the presentation and reception of the Prosecution's evidence-in-chief shall
proceed on ___________. (The first trial date shall be immediately after the expiration of
the 30-day period to hear and resolve the petition for bail, and next trial dates shall be
1 day apart each, but shall in no case exceed 60 days.)
The accused shall present and terminate its evidence on ____________. (Trial dates shall
likewise be 1 day apart each, but not to exceed 90 days.)
The hearing and trial dates are final and intransferrable, and no motions for
postponement that are dilatory in character shall be entertained by the court. If such
motions are granted in exceptional cases, the postponement/s by either party shall be
deducted from such party's allotted time to present evidence.
Failure of the party or his/her counsel to comply with the aforementioned schedule of
hearings and deadlines shall be a ground for the imposition of fines and other sanctions
by the court.
The accused (name of accused), his counsel (name of counsel), public prosecutor (name
of prosecutor), and the witness (name of witness) are hereby notified of this Order in
open court. The court shall no longer issue a subpoena to the parties present today.
SO ORDERED."
ANNEX 8-B
Template Order; Petition for Bail: Drug Cases
"When the accused (name), assisted by his/her counsel de parte/de officio (name), was
arraigned by reading to him/her the Information in a language or dialect known and
understood by him/her, said accused entered the plea of Not Guilty.
Thereafter, pre-trial proceeded and the parties took up the following matters:
(Indicate matters taken up in line with Rule 118 on Pre-trial, including the form of
testimony as provided under subheading III, item no. 11 (b) of the Revised Guidelines)
The petition for bail shall be heard summarily on ____________. (The hearing and the
resolution of the petition shall be within 20 days from arraignment and pre-trial, and
the hearing dates shall be 1 day apart each, both at 8:30 in the morning and 2:00 in the
afternoon.)
The trial for the presentation and reception of the Prosecution's evidence-in-chief shall
proceed on __________. (The first trial date shall be immediately after the expiration of
the 20-day period to hear and resolve the petition for bail, and next trial dates shall be
1 day apart each, but shall in no case exceed 5 days.)
The accused shall present and terminate its evidence on _______________. (Trial dates
shall likewise be 1 day apart each, but not to exceed 25 days.)
The hearing and trial dates are final and intransferrable, and no motions for
postponement that are dilatory in character shall be entertained by the court. If such
motions are granted in exceptional cases, the postponement/s by either party shall be
deducted from such party's allotted time to present evidence.
Failure of the party or his/her counsel to comply with the aforementioned schedule of
hearings and deadlines shall be a ground for the imposition of fines and other sanctions
by the court.
The accused (name of accused), his counsel (name of counsel), public prosecutor (name
of prosecutor), and the witness (name of witness) are hereby notified of this Order in
open court. The court shall no longer issue a subpoena to the parties present today.
SO ORDERED."
ANNEX 9
Template Order on Resting the Case of the Prosecution:
"After the prosecution rested its case today, trial shall proceed on __________, as
previously scheduled for the accused to present and terminate his evidence, of which
dates and time, the accused, his/her counsel and the prosecutor are already notified in
open court.
SO ORDERED."
ANNEX 10
Template Order on Resting the Case of the Accused; Case is Submitted for
Decision:
"After the presentation of its last witness, the defense rested its case. There being no
rebuttal evidence to be presented by the prosecution, the court considers the case
submitted for decision. The promulgation of the decision of this case is hereby set on
________________, of which date and time,* the accused, his/her counsel, and the
prosecution are already notified of this order in open court this morning.
SO ORDERED."
* Should not be more than ninety (90) days from the submission of the case for decision
for regular cases; fifteen (15) days from the date of submission of the case for resolution
for drug cases; sixty (60) days counted from the last day of the 30-day period to file the
memoranda for environmental cases; 60 days from the time the case is submitted for
decision, with or without the memoranda for intellectual property cases; and others that
may be provided in new Rules and Laws.
ANNEX 11
Template Order on Resting the Case of the Accused when Motion to File
Memoranda is Granted; Case is Submitted for Decision:
"After the accused rested his/her case today and there being no rebuttal evidence to be
presented by the prosecution, the court considers the case submitted for decision.
As prayed for, the parties are hereby given thirty (30) days from today within which to
submit their respective memoranda.
With or without memoranda, the promulgation of the decision of this case is hereby set
on ____________, of which date and time,* the accused, his/her counsel and the public
prosecutor, are already notified of this order in open court.
SO ORDERED."
* Should not be more than ninety (90) days from the submission of the case for decision
for regular cases.
ANNEX 12
Template Order on Presentation and Offer of Rebuttal Evidence of
Prosecution:
"After the accused rested his/her case today, the presentation of rebuttal evidence of the
prosecution is hereby set on _________, and the presentation of surrebuttal evidence of
the accused is hereby set on __________, as previously scheduled.
SO ORDERED."
• After the presentation of the rebuttal witness, the prosecution should orally offer its
evidence in rebuttal and the counsel for the accused should immediately raise his
objections or comments, the court shall resolve the offer and respective objection or
comment, and thereafter, start with the presentation of the surrebuttal witness.
ANNEX 13
Template Order on Presentation and Offer of Surrebuttal Evidence of the
Accused:
"After the accused rested his/her evidence on surrebuttal, the court considers the case
submitted for decision. The promulgation is hereby set on _____________, * of which date
and time, accused and his/her counsel and the prosecution are already notified of this
order in open court this morning.
SO ORDERED."
* Should not be more than ninety (90) days from the submission of the case for decision
for regular cases
**Republic Act No. 7160, Local Government Code of 1991 (provisions on the Barangay Justice
System)

**UN Convention on the Recognition and Enforcement of Foreign Arbitral Awards, approved in
1985 and ratified by the Philippine Senate under Resolution No. 71 (New York Convention)

**Model Law on International Commercial Arbitration, adopted by the UN Commission on

International Trade Law, 21 June 1985