Mark Jerome G.

Valdevieso JD-3A CEU-SLAJ

ADR – Assignment

Q: Is it possible for a certain arbitration to be classified as both

international and foreign? If yes, how? If no, why not?

A: Yes. To define Foreign Arbitration, the Rules provide that it is where the
agreed place of arbitration is outside the Philippines.

The model law states that an arbitration is international if at the time

of the conclusion of arbitration agreement, the parties have their place of
business in different States; or the parties have expressly agreed that the
subject matter of the arbitration agreement relates to more than one country;
or the place of arbitration if determined in, or pursuant to, the arbitration
agreement is situated outside the State in which the parties have their places
of business; or 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 is situated outside the
State in which the parties have their places of business.

Thus, it is necessary, to determine whether the arbitration is domestic,

international or foreign, to consider the place of arbitration, parties involved
and obligation involved.

To illustrate, if Rusi Motors, a Filipino company, and Honda Motors, a

Japanese company entered into a dealership agreement of motorcycles in
Malaysia, the former being the dealer and the former’s products are to be sold.
And they agreed that in case of dispute, the place of arbitration is in
Singapore. Now we have an instance where the arbitration can be classified
as both Foreign and International Arbitration following the definition set forth
in the Model Law and the Special ADR Rules.