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Can a foreign corporation not licensed to do business in the Philippines, but which

collects royalties from entities in the Philippines, sue here to enforce a foreign
arbitral award?

Yes. Special Rules of Court on Alternative Dispute Resolution provides that any party to a
foreign arbitration may petition the court to recognize and enforce a foreign arbitral award.

Do courts have the power to substitute their judgment for that of the arbitrators?
NO.
The award of an arbitrator cannot be set aside for mere errors of judgment either as to the law or
as to the facts. Courts are without power to amend or overrule merely because of disagreement
with matters of law or facts determined by the arbitrators. They will not review the findings of
law and fact contained in an award, and will not undertake to substitute their judgment for that
of the arbitrators, since any other rule would make an award the commencement, not the end, of
litigation. Errors of law and fact, or an erroneous decision of matters submitted to the judgment
of the arbitrators, are insufficient to invalidate an award fairly and honestly made. Judicial
review of an arbitration is, thus, more limited than judicial review of a trial.

WON an ordinary appeal is the correct remedy from an order confirming,


vacating, or correcting an arbitral award? NO.
Whether we apply, Section 29 of the Arbitration Law, Section 46 of the ADR Law, or Rule 19.12
of the Special ADR Rules, there is no legal basis that an ordinary appeal (via notice of appeal) is
the correct remedy from an order confirming, vacating, or correcting an arbitral award.

Whether or not private respondent which commenced an arbitration proceeding


under the auspices of the PCHC may subsequently file a separate case in court over
the same subject matter despite the pendency of that arbitration, simply to obtain
the provisional remedy of attachment against the adverse party in the arbitration
proceeding.
YES. Section 14 simply grants an arbitrator the power to issue subpoena and subpoena duces
tecum at any time before rendering the award. The exercise of such power is without prejudice
to the right of a party to file a petition in court to safeguard any matter which is the subject of
the dispute in arbitration.

The Court went further by declaring that in recognizing the right of the contracting
parties to arbitrate or to compel arbitration, the splitting of the proceedings to
arbitration as to some of the parties on one hand and trial for the others on the
other hand, or the suspension of trial pending arbitration between some of the
parties, should not be allowed as it would, in effect, result in multiplicity of suits,
duplicitous procedure and unnecessary delay. The object of arbitration is to allow
the expeditious determination of a dispute. 31 Clearly, the issue before us could
not be speedily and efficiently resolved in its entirety if we allow simultaneous
arbitration proceedings and trial, or suspension of trial pending arbitration.
Accordingly, the interest of justice would only be served if the trial court hears and
adjudicates the case in a single and complete proceeding.||| (Del Monte Corp.-USA
v. Court of Appeals, G.R. No. 136154, [February 7, 2001], 404 PHIL 192-203)

Are the arbitrators bound to abide to the rules of court pertaining to evidence
offered or produced.
No. 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.

Can the hearings be reopened after the award is rendered?


No. 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.

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