A.
TYPES OF PROCESSES AND PROCEDURES IN ADR;
COMPARISON WITH COURT-ANNEXED MEDIATION
Alternative Dispute Resolution System
- Any process or procedure to resolve dispute or
controversy
- Other than adjudication of a judge of a court or an
officer of a government agency
- In which a neutral party participates to assist in the
resolution of issues
- Includes arbitration, mediation, conciliation, early
neutral evaluation, mini-trial, or any combination
Arbitration
- Voluntary dispute resolution process
- In which one or more arbitrators, appointed based
on agreement of parties for rules promulgated
- Resolve a dispute by rendering an award
Commercial arbitration
- Arbitration arising from all relationship of a
commercial nature whether contractual or not
Mediation
- Voluntary process in which a mediator selected by
disputing parties
- Facilitates communication and negotiation
- And assists the parties in reaching a voluntary
agreement regarding a dispute
Mediation – arbitration
- Involves both mediation and arbitration
Mini-trial
- 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 parties seek negotiated settled
Court – annexed mediation
- Mediation conducted under auspices of the court
which acquired jurisdiction to the dispute
B. DOMESTIC ARBITRATION
3. Parties have expressly agreed that the subject
matter of the arbitration agreement relates to more
than one country
Domestic arbitration
- Any arbitration that is not international

International arbitration
1. Parties to an arbitration agreement have their
places of business in different states at the time of
the conclusion of the agreement
2. One of the following places is situated outside the
state where the parties have their place of business
a. Place of arbitration pursuant to arbitration
agreement
b. Any place where a substantial part of the
obligation is to be performed or which the
subject matter of the dispute is most closely
connected
C. JUDICIAL REVIEW OF ARBITRAL AWARDS
Quasi judicial powers of arbitral tribunals
- None.
- An arbitral tribunal is a creature of contract
- Quasi judicial power is only exercised by admin
agencies are legal organs of the government and are
created by law.
Appeal mechanism
- None
- Errors of arbitral tribunal are not subject to
correction by the judiciary
- Arbitration is meant to be an end not the beginning
of litigation
- Any arbitral award is final and binding on the parties
Note: voluntary arbitrators are not arbitrators under ADR. It
is a quasi judicial body under the Labor code
Grounds that court may not use to set aside arbitral awards
- Errors of fact, law, or of fact and law
- In any case, court cannot substitute its judgment for
that of the arbitral tribunal
Assailing arbitral awards through special civil action for
certiorari
- Not allowed
- Certiorari is a prerogative writ designed to correct
errors of jurisdiction by a judicial or quasi judicial
body.
Intervention of the courts in cases involving arbitral awards
- Only in cases allowed by law, or by special ADR
rules.
- Parties may not invoke provisions from the Rules Of
Court unless they are incorporated in the Special
ADR Rules
Scope of judicial action on arbitral awards
- Only upon a clear showing that the award suffers
from any of the infirmities or grounds for vacating
 an arbitral award under Sec. 24 of RA 876 or Rule 34 Period to file petition to vacate domestic arbitral award
of the Model Law
When may court entertain petition to set aside arbitral
award other than those Special ADR Rules
- Only if it amounts to a violation of public policy
When is an arbitral award a violation of public policy?
- If it is against the state’s fundamental tenets of
justice and morality
- Blatantly injurious to the public, or the interests of
society
- Mere errors in interpretation of law or factual
findings would not suffice refusal of enforcement
Period to file petition to confirm arbitral award
- At any time after the lapse of 30 days from receipt
by petitioner of arbitral award
- May be filed in opposition to a petition to vacate
arbitral award
- Within 30 days from receipt of arbitral award
- A petition to confirm will not authorize the filing of a
petition to vacate belatedly
Grounds to vacate domestic arbitral awards
1. Procured through corruption, fraud, or any undue
means
2. Evident partiality or corruption in the arbitral
tribunal
3. Arbitral tribunal is guilty of misconduct or any form
of misbehavior that will materially prejudice the
rights of any party. Ex. Refusing to postpone hearing
when there is sufficient cause.
4. One or more of the arbitrators was disqualified but
refrained from disclosing such disqualification
5. Arbitral tribunal exceeded its powers
6. Arbitration agreement did not exist or was invalid
for any ground for the revocation of a contract or
unenforceable
7. Party to arbitration is minor or incompetent
Period to file petition to correct or modify domestic arbitral
award.
- Within 30 days from receipt of arbitral award

Grounds for modifying or correcting domestic arbitral award

1. Evident miscalculation of figures or mistake in
description
2. Arbitrators awarded upon a matter not submitted to
them
3. Arbitrators omitted to resolve an issue
4. Award is imperfect in form
D. APPEAL FROM COURT DECISION ON ARBITRAL AWARDS
Orders of RTC appealable through a petition for review with
the CA
1. Granting or denying interim measure of protection
2. Denying a petition for appointment of arbitrator
3. Denying a petition for assistance to take evidence
4. Enjoining or refusing to enjoin person from
diverging confidential information
5. Confirming, vacating, or correcting a domestic
arbitral award
6. Setting aside international commercial arbitration
award
7. Dismissing petition to set aside international
commercial arbitration award
8. Dismissing a petition to enforce international
commercial arbitration award
9. Recognizing and/or enforcing international
arbitration award
10. Recognizing and/or enforcing foreign arbitral award
11. Refusing recognition or enforcement of foreign
arbitral award
12. Granting or dismissing a petition to enforce
deposited mediated settlement agreement
13. Reversing ruling of arbitral tribunal
How to appeal
- Petition for review within 15 days from notice of
decision of RTC
Requirement for posting bond to CA
- CA within 15 days from receipt of petition shall
require the appealing party to post a bond equal to
the amount of the award
- Failure to post a bond shall be a ground to dismissal
Staying the judgment of RTC
- Appeal shall not stay the award unless CA directs
Duty of the CA if RTC decision is premised on finding of fact
 - CA may inquire only into such fact to determine Extension in period to file petition in SC
existence of ground under arbitration law relied 1. For justifiable reasons
upon by the RTC in refusing to 2. For 30 days
recognize/enforcing/vacating an award 3. On motion filed and served
4. With full payment of docket and other lawful fees
Grounds to file an appeal by certiorari to SC 5. With deposit of costs before expiration
1. CA failed to apply applicable standard or test for reglementary period.
judicial review prescribed under special ADR rules to
the prejudice of a party
2. CA erred in upholding a final order or decision
despite lack of jurisdiction of the court that
rendered such decision
3. CA failed to apply provision in Special ADR Rules to
the prejudice of a party
4. CA committed error so egregious and harmful as to
amount to an undeniable excess of jurisdiction

Period to file petition for review in SC

- Within 15 days from notice of judgment or denial of
MNT/MR
E. VENUE AND JURISDICTION
Court that has jurisdiction to enforce and vacate arbitration
agreement or domestic arbitral award.
- RTC with jurisdiction over the place:
1. In which one of the parties is doing business
2. Where one of the parties resides
3. Where arbitration proceedings were
conducted
Court that has jurisdiction to enforce and vacate arbitration
agreement or international arbitral award.
- RTC
1. Where arbitration proceedings were
conducted
2. Where asset to be attached or levied is
situated
3. Where act to be enjoined is being
performed
4. Where any of the parties resides or has
place of business
5. In national judicial capital region at the
option of the applicant
Jurisdiction for enforcement of foreign arbitral award
- RTC
1. Where asset to be attached or levied is
situated
2. Where act to be enjoined is being
performed
3. Where any of the parties resides, if party is
an individual
4. Where any of the parties has place of
business
5. In national judicial capital region at the
option of the applicant
F. SPECIAL RULES OF COURT IN ADR
Cases under Special ROC on ADR
1. Issue on existence, validity, enforceability of
arbitration agreement*
2. Referral to ADR*
3. Interim measures of protection*
4. Appointment of arbitrator*
5. Challenging appointment of arbitrator*
6. Termination of mandate of arbitrator*
7. Assistance in taking evidence*
8. Confirmation, correction, or vacation of award in
domestic arbitration
9. Recognition and enforcement or setting aside
international commercial arbitration award
10. Recognition and enforcement of foreign arbitral
award
11. Confidentiality or protection order*
12. Deposit and enforcement of mediated settlement
agreements*
*summary proceedings
Nature of proceeding under Special ROC under ADR
- Special proceedings
Notifying respondent of proceedings against him in
Summary Proceedings
- By personal service or courier
- Proof of service shall be attached to the petition
filed in court
Proof of service
- Affidavit of the person who effected service stating
the time, place and manner of service
- If by courier, signed courier proof of delivery
- If service is refused or has failed, affidavit or delivery
receipt must state circumstances of the attempted
service or the refusal or failure
Prohibited pleadings and motions
1. MTD
2. Motion for bill of particulars
3. MNT/Reopening of Trial
4. Petition from relief of judgment
5. Motion for extension except in cases where an ex
parte temporary order of protection has been issued
6. Rejoinder to reply
7. Motion to declare party in default
8. Any other pleading specifically disallowed
Effect of dilatory pleading or motion
- Court shall motu proprio order pleading or motion
expunged from the records
Arbitration agreement
- Independent contract whereby parties agree to
submit their dispute to an arbitrator and be bound
by the latter’s resolution
Remedy of judicial relief in issues involving arbitration
agreements
- Available only if the place of arbitration is in the
Philippines
Will arbitration agreement preclude parties from seeking
provisional relief from court
- No. any party to the arbitration may petition the
court to safeguard any matter which is the subject of
the dispute based on the Arbitration Law/RA876
Petition for judicial relief involving issues about arbitration
agreements
- May be filed at any time prior to the
commencement of arbitration
- May also be filed within 30 days after receiving
notice of the ruling of the arbitral tribunal upholding
or declining jurisdiction
 - Does not stay the arbitration proceedings hence, it
may continue rendering an award
- Court may not enjoin arbitration proceedings
Grounds to assail existence validity and enforceability of
arbitration agreements
- Invalid inexistent or unenforceable
Contents of petiotion for judicial relief
1. Legal capacity to sue or be sued of the petitioner
and respondent
2. Nature and substance of dispute
3. Grounds on circumstances relied upon to establish
possession
4. Reliefs sought
5. Authentic copy of arbitration agreement must be
attach to the petition
Dismissal of the petition
- Court finds that the petition does not comply with
the requirements above
- If upon consideration of the grounds, the petition
does not appear to be prima facie meritorious
Construing arbitration clauses in determining agreements
- courts should liberally construe
- consistent with the legal policy of encouraging
alternative dispute resolutions
Principle Of Separability
- clause should be treated as an agreement
independent of other terms of the contract in which
it forms part.
- A decision that the contract is null and void shall not
entail ipso jure the invalidity of the arbitration
clause
Effect to arbitration clause to nullity of the contract
- Shall not be regarded as invalid pursuant to the
principle of separability
- A party’s mere repudiation of the main contract
shall not avoid arbitration
Principle of Competence – Competence
- Arbitral tribunal may initially rule in its jurisdiction
including any objections with respect to the existence
and validity of the arbitration agreement or any
condition precedent
Court action in ruling jurisdiction of arbitral tribunal
- Pursuant to the principle of competence-competence,
court must exercise judicial restraint and defer to the
competence of the arbitral tribunal by allowing it the
first opportunity to rule upon its own jurisdiction
Court action in ruling nullity of arbitration agreement
- Pursuant to the principle of competence-competence,
court must make no more than a prima facie
determination of that issue
Courts’ prima facie finding of validity of the arbitration
agreement
- Court must suspend the action before it and refer the
parties to arbitration pursuant to the arbitration
agreement
- Otherwise the court shall continue with judicial proceedings
Prima facie determination upholding arbitration agreement
1. If determined before commencement of arbitration
– shall not be subject to an MR, appeal for certiorari
2. If after commencement of arbitration – court may
file MR but not subject to an appeal
Note: court’s decision is subject only to a petition of
certiorari if it finds that the arbitral tribunal has no
jurisdiction
Effect when arbitral award is rendered before court decides
- Petition shall become moot and academic and shall
be dismissed by the RTC

Remedy of a party if the other party directly files a case in
court
- A party may request the court to refer the parties to
arbitration in accordance with the agreement
Raising the issue of non compliance with an arbitration
agreement
- Formal request for arbitration
- May also be raised in an answer or through a motion
When should a party request for referral to arbitration
- Before pre-trial conference
- After pre-trial conference if with agreement of all
parties to the case
- At any time during the proceedings if there is no
arbitration agreement at the time the case is filed
but was only subsequently entered into by the
parties
Requesting referral to ADR
- Through a motion which shall state that dispute is
covered by arbitration agreement which shall be
attached to the motion
- Motion should also contain a notice of hearing
addressed to all parties served upon the respondent
to give him opportunity to respond
Court action when there is a request for referral to
arbitration
- Stay the action. And refer parties to arbitration upon
prima facie finding that there is indeed an
arbitration agreement or that the subject matter of
the dispute is capable of settlement through
arbitration
Matters that may not be the subject of arbitration
1. Labor disputes
2. Civil status of persons
3. Validity of marriage
4. Ground for legal separation
5. Jurisdiction of courts
 6. Future legitime
7. Criminal liability
8. Those that the law provides cannot be compromised
Rules on assailing order regarding request of referral to
arbitration
1. The order is immediately executory and shall not be
subject of an MR, appeal, petition for certiorari
2. Order denying the request shall not be subject to an
appeal but may be subject of MR, or petition for
certiorari
Invalid reasons to decline request for referral
1. That not all of the disputes may be referred to
arbitration
2. Not all of the parties are bound by arbitration –
court may issue an order directing inclusion of those Court action upon a petition for an interim measure of
parties who shall agree to the inclusion
3. Issues raised in the civil actions could be speedily
and efficiently resolved by the court rather than
arbitration
4. Referral to arbitration does not appear to be the
most prudent action stay of action would prejudice
the rights of the parties who are not bound by the
arbitration agreement
Note: this refers to arbitration for construction contracts
which shall be referred to the Construction Industry
Arbitration Commission (CIAC)
When can party file interim measure of protection
1. Before commencement of arbitration
2. After commencement of arbitration, but before
constitution of arbitral tribunal
3. After constitution of arbitral tribunal and any time
during proceedings but only to the extent that the
arbitral tribunal has no power to act.
protection
- Court shall defer action when informed that arbitral
tribunal has been constituted and act only when
 established that arbitral tribunal has no power to act
on any such interim measure
Types of measure of protection
1. Preliminary injunction
2. Preliminary attachment or garnishment of funds
3. Appointment of receiver
4. Detention, preservation, delivery or inspection of
property
5. Assistance in enforcement of interim measure of
protection
Grounds to consider in granting relief
1. Irreparable loss or injury
2. Security for the performance of any obligation
3. Need to preserve and produce evidence
4. Need to compel an act or omission
Resolving the petition on an interim measure of protection
- Court should resolve the matter within 30 days from
submission of opposition, lapse of the period to file
opposition which shall be 15 days from service of
petition or from termination of hearing set by the
court to clarify a matter
Issuing immediately executory temporary order of
protection
- When court finds that there is urgent need to
1. Preserve property
2. Prevent respondent from disposing or
concealing the property
3. Prevent relief paid for from becoming
illusory
Note: court shall require the posting of bond within 5 days
from receipt of the order
Granting petition for interim measure of protection
- May be conditioned upon provision of security

Period of validity of ex parte temporary order of protection
- 20 days from service on the party who is required to
comply with the order
Extension of period of validity
- Upon request of the respondent, for no more than
20 days from expiration of the original period
Remedy of the opposing party to lift the temporary order of
protection
- By posting a counterbond
Effect if other parties failed to oppose
- Court shall render judgment motu proprio only on
the basis of the allegations in the petition
substantiated by supported documents and limited
only to the prayer
Assailing an order granting a petition for interim measure of
protection
- The order is immediately executory but may be
subject to an MR and/or appeal or petition for
certiorari
May the arbitral tribunal change the court issued interim
measure of protection
Yes
Conflict between previous court issued interim measure and
arbitral tribunal measure issued
- That of the arbitral tribunal shall prevail. The conflict
is automatically referred to the arbitral tribunal who
is given authority to decide such question
Petition to recognize and enforce an international
commercial arbitration award
- May be filed any time from receipt of award
- If however, a timely petition to set aside is filed, an
opposing party may file petition for recognition and
enforcement within the period for filing an
opposition
Petition to set aside international commercial arbitration
award.
- Within 3 months from receipt of copy
effect on enforcement of award if aggrieved party fails to file
petition to set aside on time
- It shall preclude a party from raising grounds to
resist enforcement of the award
Grounds to set aside enforcement of international
commercial arbitration award
1. party seeking the setting aside furnishes proof that
a) one of the parties to the arbitration is under some covered by the NY Convention
incapacity or agreement is not valid based on the
law of the parties
b) no proper notice of appointment of arbitrator or if
one of the parties was unable to present his case
c) the award deals with a dispute not falling within
the terms of the arbitration clause
d) composition of arbitral tribunal was not in
accordance with the agreement of the parties
2. court finds that
a) subject matter is not subject to arbitration
b) it is contrary to public policy
Recourse to a court against an international commercial
arbitral award
- made only through a petition to set aside arbitral
award based on the grounds prescribed by law
- any other recourse such as appeal or petition for
review shall be dismissed by the court
Law governing matters affecting foreign arbitral awards
- 1958 NY convention on the recognition and
enforcement of foreign arbitral awards
- Special ADR Rules
Enforcing remedies affecting foreign arbitral awards not
covered by the NY Convention
 - Court may enforce a foreign arbitral award based on
grounds of comity or reciprocity
Petition for recognition and enforcement of foreign arbitral
award
- Any time after receipt of foreign arbitral award
- Court shall cause notice and copy of the petition to
be delivered to the respondent to allow him to file
opposition thereto within 30 days from receipt of
notice and petition if the court finds that the
petition is sufficient in form and substance
Grounds for refusing enforcement of foreign arbitral award
- Same, as the grounds for refusing enforcement of
international commercial arbitral award
Court actions in resolving petition for recognition and
enforcement of foreign arbitral award
1. Recognize and/or enforce
2. Refuse
Requisites for filing a Special Civil Action for Certiorari
1. RTC acted without, in excess, of jurisdiction or with grave
abuse of discretion amounting to lack of jurisdiction
2. No PSAR in the ordinary course of law
Orders of the court against which a Special Civil Action for
Certiorari may be filed
1. Holding arbitration agreement inexistent, invalid, or
unenforceable
2. Reversing arbitral tribunals upholding of its own
jurisdiction
3. Denial of request to refer to arbitration
4. Granting or refusing interim relief
5. Denying appointment of arbitrator
6. Confirming, vacating, or correcting a domestic arbitral
award
7. Suspending the proceedings to set aside international
commercial arbitral award
8. Allowing a party to enforce international commercial
arbitral award pending appeal
9. Adjourning or deferring ruling on the petition to recognize
or set aside international commercial arbitral award
10. Allowing party to enforce foreign arbitral award pending
appeal
11. Denying petition for assistance in taking evidence

Period to file special civil action for certiorari

- Within 15 days of notice of judgment to be set aside
- No extension shall be allowed
Note: in contrast, a petition for certiorari under Rule 65 may be
filed within 60 days from notice of judgment

Effect of filing petition for certiorari in relation to arbitration

proceedings
- Shall not prevent arbitral tribunal from continuing the
proceedings and rendering the award.

Limitations of the CA during pendency of proceedings with

respect to injunctions
- CA shall not enjoin commencement of
arbitration or the constitution of the arbitral
tribunal or the continuation of arbitration.