ADR continuous notes
Advantages of ADR
1. Less time consuming,
2. less tedious
3. Less confrontational
4. More productive of goodwill and lasting
relationships
5. Parties are in control
a. Everything is in the hands of the
parties, including the proceedings
6. Privileged and confidential
a. No records (only with the arbitral
tribunal BUT it cannot be
published)
Party autonomy
 Freedom of parties to make arrangements
to resolve their own disputes.
 If there is no agreement, the tribunal will
have a hand in the arbitration and will
conduct it in a manner it deems
appropriate.
 Basis: Civil code, Art 1306
Case: DENR vs UCPB
Discussion
The case is unusual because it does not concern
about construction. The construction or the CIAC
supposedly only governs those construction disputes
submitted to them over which there is an arbitration
agreement.
That may be the case, but in this case, the parties
specifically picked out the CIAC rules of procedure to
govern their arbitration – even if the dispute is not a
construction dispute The parties actually did not
submit to the jurisdiction of CIAC but only borrowed
their rules.
SC said this is allowed. Since they submitted to the
rules of CIAC in the governance of their arbitration,
they are governed by such.
Special ADR rules
Special rules of court when part of arb proceedings
submitted to the court. There are certain arts that
can be submitted for resolution – the remedy is
similar to provisional remedies. (interim measures of
protection)
Applies during enforcement of arbitral award or
declaration of nullity of the arbitral award.
As to the arbitration proceedings, the procedure
chosen by the parties will govern the arbitration
proceeings.
Liability of ADR providers
Sec 5
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. – upon a clear showing
of :
1. bad faith
2. malice
3. gross negligence
(b) "ADR Provider" means institutions or persons
accredited as mediator, conciliator, arbitrator,
neutral evaluator, or any person exercising similar
functions in any Alternative Dispute Resolution
system. This is without prejudice to the rights of the
parties to choose nonaccredited individuals to act as
mediator, conciliator, arbitrator, or neutral evaluator
of their dispute.
Construction dispute
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.
If a case is filed in court and in is a construction
dispute – dismiss the case
XPT if parties submit a written agreement to have
the case resolved by court instead of CIAC.
Reason: in a construction dispute, the process is
almost complete- CIAC can enforce judgment.
In a commercial dispute – even if submitted to an
arbitral institution, such institution has no power to
execute its own arbitral award – it has to go to court
for enforcement.
If any dispute other than construction– the court
will not dismiss the case but suspend the
proceedings.
Case: LM Power vs CIAC
The dispute here is with respect to discrepancies as
to amount of advances and billable accomplishment
of the project – it is a construction dispute and it is
the CIAC which has jurisdiction over the case.
Case: Federal Builders vs Power
Here, they had an agreement to arbitrate but
unsigned and when the dispute arose, there was a
request for arbitration – even if unsigned, it’s a
source for an agreement to arbitrate.
The council submitted a letter that it agreed to
arbitrate and asked for extension to file.
Case: Philrock vs CIAC
It originally started with RTC but dismissed due to an
arbitration agreement and submitted to CIAC. To
parties went to CIAC but there were issues as to
ADR continuous notes
inclusion of other officers in the proceedings. When
they could not agree, they withdrew their consent to
arbitrate and went back to the court but the court
did not accept.
Should CIAC resume proceedings? YES
There was an arbitration agreement. Once parties
agree, that vests jurisdiction to the tribunal. The only
thing that will terminate the jurisdiction is UNTIL
AND WHEN IT RENDERS AN AWARD. Jurisdiction is
NOT lost by mere withdrawal of parties.
Commercial awards
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.
REMEDY:
Petition to vacate

Can CIAC award damages in this case? Chung Fu discussion:

YES. History of arbitration stated in this case.

Power of CIAC is clear-like an RTC has power to
resolve issues, so long as connected with
construction dispute.
It can also award damages based on evidence
presented by parties.
The question here: the nature of the arbitration
clause. Is it final and unappealable?
Art 2244 – if the parties agree to make the arbitral
award final and unappealable, then that stipulation is
valid.

In the CIAC, (EO1008), arbitral awards shall be final

CIAC’s jurisdiction is complete and has power to
and unappealable except on questions of law
enforce its own award. No need to seek intervention
appealable to SC.
of court.

Bias- is for it to become final and unappealable – if it

Can also award interests, atty’s fees and expenses of
is appealable, there is no use anymore. Although
litigation, other than damages.
even Ra 9285 mentions about remedies available to
a party against whose favor the arbitral award is
Next time, proceed with mediation.
rendered BUT appeal is no longer a remedy.
Assignment: watch a movie – DISCLOSURE
Q: suppose parties agree that the decision is final
[Michael douglas and Demi moore]
and unappealable? Is it really out of the ambit of the
court? NO. There are still ways to assail the arbitral
award BUT appeal is NOT a remedy.
Important things in other form of dispute resolution.

Even arbitral awards are not subject of appeal,

Definition of other forms
aggrieved party may still question the award on
grounds provided by law. Term is: vacate, modify,
Early neutral evaluation –
rescind, correct.
Characterisctics of ADR:
Kinds of arbitration:
1. contractual
1. As to administration
2. case and party specific
a. Ad hoc
3. confidential
i. Administered by an
4. arbitral tribunal has no imperium
arbitrator and/or parties
5. award is final
themselves. If such
institution is NOT a
The arbitral tribunal has no imperium
permanent or regular
1. the arbitral tribunal shall decide ex aequo et
arbitration institution in
bono or as amiable compositeur
the PH
2. ex aequo et bono – principle based on
ii. All processes of arbitration
equitable grounds
is agreed upon by the
3. amiable compositeur means by reference to
parties – selection,
general notions of fairness and equity
qualification, modes of
presenting, place of
if agreement does not allow arbitrator to grant so
arbitration
and so – then arbitral tribunal does not have such
b. Institutional
power
i. Administered by an entity
engaged in, among
PARTY AUTONOMY – freedom of parties to agree.
others, arbitrational
disputes in ph on a regular
Rule 19.7 of special ADR rules
and permanent basis
ADR continuous notes
1. GE: PDRCI,
PICCR, CAV
ii. There are rules already
iii. They will collect docket
fees or filing fees for
secretarial expenses
2. As to bingidn effect:
a. Binding
i. Results in an award that
can be confirmed by the
court – note that arb is
case specific and party
specific
b. Nonbinding
i. By agreement of parties,
award is not subject to
confirmation of court –
only involves question of
valuation – only arising
out of valuation, appraisal,
other controversies
collateral, incidental,
precedent or subsequent
to any issue between the
parties.
3. As to gerverning law
a. Domestic
i. Arbitration not
international
1. RA 876
2. Art 3 of Model
law
Rules applicable to international commercial
arbitration are applicable to domestic
arbitration in a suppletory manner.
Construction dispute, even if commercial in
nature shall be governed by EO 1008. CIAC
has th OG and exclusive juris.
closely connected
or
3. Parties have
expressly agreed
that the subject
matter of the arb
agreement
relates to more
than 1 country.
Arbitration agreement agreement by 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.
Must be:
1. In writing, embodied in a
2. Contract
3. Separate agreement
4. Express reference in a contract to a
document containing an arbitration clause
Even prior to the dispute, they can already agree.
PEZA case:
Doctrine of separability – provisions boilerplates
Miscellanaeous provisions
Arbitration agreement can survive on its own. Even if
main contract is invalid.
Gonzales vs CA

b. Inetrnational
i. Place of business is in
different states (not in PH)
ii. One of the places stauted
outside of the state in
which parties have their
places of business
1. Place of arb if
determined in, or
pursuant to, the
arb agreement
2. Any place where
substantialpart of
the obligation of
the commercial
lrelationship is to
be performed or
place with which
the subject-
matter of the
dispute is most