ARBITRATION
Sec. 3(d), RA 9825
“Arbitration” means a voluntary dispute resolution process in which one or
more arbitrators, appointed in accordance with the agreement of the parties,
or rules promulgated pursuant to this Act, resolve a dispute by rendering an
award.
Requisites of Arbitration
1. Consent (RA 876, Sec. 2)
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.
2. Subject
Exceptions:
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.
3. Consideration
4. Form (Sec. 4, RA 876)
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.
COMMERCIAL ARBITRATION (RA 9825)
Sec. 3(g). Commercial Arbitration - An arbitration is "commercial if it
covers matter arising from all relationships of a commercial nature, whether
contractual or not;
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.
CONSTRUCTION ARBITRATION (RA 9825)
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 Construction 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.
FOREIGN ARBITRATION vs. LOCAL 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".
UNCITRAL MODEL LAW Chapter 1, Art. 1, Par. 3
An arbitration is international if:
(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 State 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
which 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 the purposes of paragraph (3) of this article: (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 habitual residence.
This Law shall not affect any other law of this State 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 this Law.